Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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Apr 19, 2021 |
signed chap.59 |
Apr 07, 2021 |
delivered to governor returned to senate passed assembly message of necessity - 3 day message ordered to third reading rules cal.59 substituted for a3009c |
Apr 06, 2021 |
referred to ways and means delivered to assembly passed senate message of necessity - 3 day message message of necessity - appropriation ordered to third reading cal.654 print number 2509c |
Apr 06, 2021 |
amend (t) and recommit to finance |
Mar 14, 2021 |
print number 2509b |
Mar 14, 2021 |
amend (t) and recommit to finance |
Feb 24, 2021 |
print number 2509a |
Feb 24, 2021 |
amend (t) and recommit to finance |
Jan 20, 2021 |
referred to finance |
Senate Bill S2509A
Signed By Governor2021-2022 Legislative Session
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2021-2022 state fiscal year
download bill text pdfSponsored By
There are no sponsors of this bill.
Archive: Last Bill Status - Signed by Governor
- Introduced
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- In Committee Assembly
- In Committee Senate
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- On Floor Calendar Assembly
- On Floor Calendar Senate
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- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Votes
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Floor Vote: Apr 6, 2021
aye (38)- Addabbo Jr.
- Bailey
- Benjamin
- Biaggi
- Breslin
- Brisport
- Brouk
- Comrie
- Cooney
- Gianaris
- Gounardes
- Harckham
- Hinchey
- Hoylman-Sigal
- Jackson
- Kaminsky
- Kaplan
- Kavanagh
- Kennedy
- Krueger
- Liu
- May
- Mayer
- Myrie
- Parker
- Persaud
- Ramos
- Reichlin-Melnick
- Rivera
- Ryan
- Salazar
- Sanders Jr.
- Savino
- Sepúlveda
- Serrano
- Skoufis
- Stavisky
- Stewart-Cousins
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Apr 6, 2021 - Finance Committee Vote
S2509A15Aye7Nay1Aye with Reservations0Absent0Excused0Abstained -
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Bill Amendments
2021-S2509 - Details
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2021-S2509 - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2021-2022 state fiscal year; extends the top rate of income tax (Part A); imposes a pass-through entity tax (Part C); relates to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D)
2021-S2509 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 2509 A. 3009 S E N A T E - A S S E M B L Y January 20, 2021 ___________ 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 the tax law, in relation to imposing a tax surcharge on wealthy taxpayers (Part A); to amend the tax law, in relation to delaying tax reductions (Part B); to amend the tax law and the state finance law, in relation to the imposition of a pass-through entity tax (Part C); to amend the economic development law and the tax law, in relation to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D); to amend the tax law, in relation to reforming and simplifying various business tax provisions thereof; and to repeal certain provisions of such law related thereto (Part E); to amend the tax law, in relation to the empire state film production credit and the empire state film post production credit (Part F); to amend the tax law, in relation to wage filer reporting and reconciliation (Part G); relating to consti- tuting 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 cannabis and to exempt certain persons from prosecution for the use, consumption, display, production or distrib- ution 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 alco- holic 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 chap-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12574-01-1 S. 2509 2 A. 3009 ter 90 of the laws of 2014 amending the public health law, the tax law, the state finance law, the general business law, the penal law and the criminal procedure law relating to medical use of marihuana, in relation to the effectiveness thereof; to repeal title 5-A of arti- cle 33 of the public health law relating to medical use of marihuana; to repeal article 33-B of the public health law relating to the regu- lation of cannabinoid hemp and hemp extract; to repeal subdivision 4 of section 220.06 and subdivision 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 marihuana; and to repeal paragraph (f) of subdivision 2 of section 850 of the general business law relating to drug related paraphernalia (Part H); to amend the tax law, in relation to requiring vacation rental marketplace providers collect sales tax (Part I); to amend the tax law, to impose sales tax on such admissions to race tracks and simulcast facilities; and to repeal section 227, section 306, section 406, subparagraph (ii) of paragraph b of subdivi- sion 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and breeding law, relating to certain taxes on admissions to race tracks and simulcast facilities (Part J); to amend the tax law, in relation to increasing the interest free period for certain sales tax refunds (Part K); to amend the tax law, in relation to the authority of counties to impose sales and compensating use taxes; and to repeal certain provisions of such law relating thereto (Part L); to amend the tax law, in relation to exempting from sales and use tax certain tangible personal property or services (Part M); to amend the tax law, in relation to increasing the total dollar amount for vendors' gross receipts necessary for regis- tration filing (Part N); to amend the tax law,in relation to imposing liability for real estate transfer taxes on responsible persons, prohibiting grantors from passing real estate transfer tax to gran- tees, and exempting certain organizations from the LLC disclosure requirement (Part O); to amend the tax law, in relation to restrictions on certain retail dealers whose registrations have been revoked or who have been forbidden from selling cigarettes or tobacco products (Part P); to amend the tax law, in relation to the timing and method for filing certain returns (Part Q); to amend the tax law, in relation to determining liability for the collection of taxes on medallion taxicab trips and congestion surcharges (Part R); to amend the tax law, in relation to increasing tax return preparer penalties for failure to register and requiring the display of certain documents by tax return preparers (Part S); to amend the tax law, in relation to permitting the commissioner of taxation and finance to seek judicial review of decisions of the tax appeals tribunal (Part T); to amend the real property law and the tax law, in relation to electronic submission of consolidated real property transfer forms; and to repeal certain provisions of the real property law relating thereto (Part U); to amend the real property tax law, in relation to providing that beginning with assessment rolls used to levy school district taxes for the 2021--2022 school year, no application for a new enhanced exemption under this section may be approved (Subpart A); to amend the real property tax law, in relation to extending the cutoff date for a STAR credit switch (Subpart B); to amend the tax law, in relation to tax returns of deceased individuals (Subpart C); to amend the real property tax law, in relation to the powers of the state board of real property tax services and the commissioner of taxation and finance; to S. 2509 3 A. 3009 amend the tax law, in relation to requiring the commissioner of taxa- tion and finance verify the income eligibility of recipients of the basic STAR exemption; and to repeal certain provisions of the real property tax law relating thereto (Subpart D); and to amend the real property law, in relation to exemptions for manufactured home park owners or operators and mobile home owners; and to repeal certain provisions of such law relating thereto (Subpart E)(Part V); to amend the real property tax law, in relation to facilitating the adminis- tration of the real property tax, and to repeal section 307 of such law relating thereto (Part W); to amend the real property tax law and the general municipal law, in relation to promoting the development of renewable energy projects (Part X); to amend the racing, pari-mutuel wagering and breeding law, in relation to authorizing mobile sports wagering; and providing for the repeal of certain provisions of such law relating thereto (Part Y); authorizing a request for information related to gaming facility licenses (Part Z); to amend the tax law, in relation to a keno style lottery game (Part AA); to amend the tax law, in relation to restrictions on certain lottery draw game offerings (Part BB); to amend the racing, pari-mutuel wagering and breeding law, in relation to the office of the gaming inspector general; and to repeal certain provisions of such law relating thereto (Part CC); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simul- cast, 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-mu- tuel wagering and breeding 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 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 DD); to amend chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions for five years (Part EE); to amend the tax law and chapter 60 of the laws of 2016 amending the tax law relating to creating a farm work- force retention credit, in relation to extending the provisions of such credit through tax year 2024 (Part FF); to amend the public hous- ing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part GG); to amend chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to the effec- tiveness thereof; and to amend the tax law in relation to increasing the aggregate cap on the amount of such credit (Part HH); to amend the tax law, in relation to extending hire a veteran credit for an addi- tional year (Part II); to amend chapter 61 of the laws of 2011 amend- ing the economic development law, the tax law and the real property tax law, relating to establishing the economic transformation and facility redevelopment program and providing tax benefits under that program and to amend the economic development law, in relation to extending the tax credits under the economic transformation and facil- ity redevelopment program (Part JJ); to amend the general business law, in relation to requiring the implementation of the secure choice S. 2509 4 A. 3009 program by a certain date (Part KK); and in relation to temporarily suspending certain racing support payments (Part LL) 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 2021-2022 state fiscal year. Each component is wholly contained within a Part identified as Parts A through LL. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, including the effective date of the Part, which makes 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. The tax law is amended by adding a new section 602 to read as follows: § 602. (A) SURCHARGE. IN ADDITION TO THE TAXES IMPOSED UNDER SECTION SIX HUNDRED ONE OF THIS PART, AN INCOME TAX SURCHARGE IS HEREBY IMPOSED ON INDIVIDUALS FOR THE TAXABLE YEARS TWO THOUSAND TWENTY-ONE THROUGH TWO THOUSAND TWENTY-THREE ON THE TAXPAYER'S NEW YORK TAXABLE INCOME, AT THE FOLLOWING RATES: IF THE TAXPAYER'S NEW YORK THE SURCHARGE RATE IS: TAXABLE INCOME IS: OVER $5,000,000 BUT NOT OVER $10,000,000 0.5 PERCENT OVER $10,000,000 BUT NOT OVER $25,000,000 1.0 PERCENT OVER $25,000,000 BUT NOT OVER $50,000,000 1.5 PERCENT OVER $50,000,000 BUT NOT OVER $100,000,000 1.75 PERCENT OVER $100,000,000 2.0 PERCENT (B) METHOD OF PAYMENT. A TAXPAYER SHALL PAY THE TAX SURCHARGE WHEN THE TAXPAYER FILES HIS OR HER PERSONAL INCOME TAX RETURN REQUIRED TO BE FILED PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE. A TAXPAYER MAY ALSO PRE-PAY IN TAXABLE YEAR TWO THOUSAND TWENTY-ONE ALL OR A PORTION OF THE TAX SURCHARGE FOR TAXABLE YEAR TWO THOUSAND TWENTY-TWO AND/OR TWO THOUSAND TWENTY-THREE THAT THE TAXPAYER ESTIMATES WILL BE OWED UNDER THIS SECTION IN THE MANNER THE COMMISSIONER OF TAXATION AND FINANCE SHALL PRESCRIBE. THE COMMISSIONER SHALL PRESCRIBE A METHOD OF RECORDING AND APPLYING THE PAYMENT OF PRE-PAID TAX SURCHARGE AMOUNTS MADE PURSUANT TO THIS TO THIS SUBSECTION, WITH THE PRE-PAYMENT REDUCING THE TAXPAYER'S SURCHARGE LIABILITY FIRST FOR TAXABLE YEAR TWO THOUSAND TWENTY-TWO, WITH THE REMAINDER APPLIED TO REDUCE THE TAXPAYER'S SURCHARGE LIABILITY IN TAXABLE YEAR TWO THOUSAND TWENTY-THREE AND ANY EXCESS IN TAXABLE YEAR TWO THOUSAND TWENTY-THREE TREATED AS A TAX OVER- PAYMENT TO BE REFUNDED OR CREDITED AGAINST TAX OTHERWISE OWED UNDER THIS ARTICLE; PROVIDED HOWEVER, THAT NO INTEREST WILL BE PAID THEREON. THE SURCHARGE IMPOSED BY THIS SECTION SHALL BE INCLUDED FOR PURPOSES OF COMPUTING AND REMITTING ESTIMATED TAX PURSUANT TO SECTION SIX HUNDRED S. 2509 5 A. 3009 EIGHTY-FIVE OF THIS ARTICLE. THE CREDITS ALLOWED UNDER THIS ARTICLE MAY NOT BE USED TO REDUCE THE SURCHARGE IMPOSED BY THIS SECTION. § 2. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 43 to read as follows: (43) TAXPAYERS WHO PRE-PAY THE TAX SURCHARGE IMPOSED UNDER SUBSECTION (A) OF SECTION SIX HUNDRED TWO OF THIS ARTICLE IN TAXABLE YEAR TWO THOU- SAND TWENTY-ONE SHALL BE ALLOWED A DEDUCTION AS COMPUTED IN THIS PARA- GRAPH BEGINNING IN TAXABLE YEAR TWO THOUSAND TWENTY-FOUR. IN TAXABLE YEAR TWO THOUSAND TWENTY-FOUR, THE DEDUCTION SHALL BE EQUAL TO THE LESS- ER OF (I) THE SUM OF THE TAXPAYER'S INTEREST, DIVIDENDS AND CAPITAL GAINS TAXABLE IN THIS STATE OR (II) THE PRODUCT OF FIFTY PERCENT AND THE PRE-PAYMENT INCOME EQUIVALENT. FOR PURPOSES OF THIS PARAGRAPH, THE PRE- PAYMENT INCOME EQUIVALENT IS THE QUOTIENT OF THE AMOUNT OF THE TAX SURCHARGE PRE-PAYMENT THE TAXPAYER MADE PURSUANT TO SUBSECTION (B) OF SECTION SIX HUNDRED TWO OF THIS ARTICLE AND EIGHT AND EIGHTY-TWO HUNDREDTHS PERCENT. THE DEDUCTION ALLOWED IN TAXABLE YEAR TWO THOUSAND TWENTY-FIVE AND THEREAFTER SHALL BE EQUAL TO THE LESSER OF (I) THE SUM OF THE TAXPAYER'S INTEREST, DIVIDENDS AND CAPITAL GAINS TAXABLE IN THIS STATE OR (II) THE REMAINING AMOUNT OF THE TAXPAYER'S PRE-PAYMENT INCOME EQUIVALENT. THE TAXPAYER SHALL CONTINUE TO BE ALLOWED THIS DEDUCTION UNTIL ALL OF THE TAXPAYER'S PRE-PAYMENT INCOME EQUIVALENT IS USED UP IN CALCULATING THIS DEDUCTION. § 3. Section 606 of the tax law is amended by adding a new subsection (www) to read as follows: (WWW) TAXPAYERS WHO PRE-PAY THE TAX SURCHARGE IMPOSED UNDER SECTION SIX HUNDRED TWO OF THIS ARTICLE BUT DIE BEFORE THE REMAINDER OF ITS PRE-PAYMENT INCOME EQUIVALENT IS USED UP AS PROVIDED IN PARAGRAPH FORTY-THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THIS ARTICLE, WILL BE ALLOWED A TAX CREDIT ON THE TAXPAYER'S FINAL RETURN EQUAL TO THE REMAINING AMOUNT OF TAX SURCHARGE PRE-PAYMENT THE TAXPAYER HAS AVAILABLE FOR USE THAT CORRESPONDS TO THE REMAINING PRE-PAYMENT INCOME EQUIVALENT REFERRED TO IN PARAGRAPH FORTY-THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THIS ARTICLE. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAY- MENT TO BE REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. § 4. Notwithstanding any provision of law to the contrary, the method of determining the amount to be deducted and withheld from wages on account of taxes imposed by or pursuant to the authority of article 22 of the tax law in connection with the implementation of the provisions of this act shall be prescribed by the commissioner of taxation and finance with due consideration to the effect such withholding tables and methods would have on the receipt and amount of revenue. The commission- er of taxation and finance shall adjust such withholding tables and methods in regard to taxable years beginning in 2021 and after in such manner as to result, so far as practicable, in withholding from an employee's wages an amount substantially equivalent to the tax reason- ably estimated to be due for such taxable years as a result of the provisions of this act. Any such changes in withholding tables and meth- ods for tax year 2021 shall be adopted and effective as soon as practi- cable. The commissioner of taxation and finance may make similar changes to withholding tables and methods. The withholding tables and methods for tax year 2021 shall not be prescribed by regulation, notwithstanding any provision of the state administrative procedure act to the contrary. S. 2509 6 A. 3009 § 5. The additions to tax imposed by subsection (c) of section 685 of the tax law shall not apply to any installments of estimated tax due on or before September fifteenth, two thousand twenty-one if the underpay- ment is the result of the enactment of the tax surcharge for the tax year two thousand twenty-one prescribed by this act. § 6. Severability. The powers granted and the duties imposed by this act and the applicability thereof to any taxpayers shall be construed to be independent and severable and if any one or more sections, subsections, clauses, sentences or parts of this act, or the applicabil- ity thereof to any taxpayers shall be adjudged unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions thereof or the applicability thereof to other taxpayers, but shall be confined in its operation to the specific provisions so held unconstitutional and invalid and to the taxpayers affected thereby. If any provisions under section two or three of this act shall be adjudged unconstitutional or invalid, then the entire affected section of this act shall be deemed void. § 7. This act shall take effect immediately. PART B Section 1. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law, clauses (iii), (iv), (v), (vi) and (vii) as amended by section 1 of part P of chapter 59 of the laws of 2019 and clause (viii) as added by section 1 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iii) For taxable years beginning in two thousand twenty AND TWO THOU- SAND TWENTY-ONE the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over $27,900 Over $43,000 but not over $161,550 $2,093 plus 6.09% of excess over $43,000 Over $161,550 but not over $323,200 $9,313 plus 6.41% of excess over $161,550 Over $323,200 but not over $19,674 plus 6.85% of excess $2,155,350 $323,200 over Over $2,155,350 $145,177 plus 8.82% of excess over $2,155,350 (iv) For taxable years beginning in two thousand [twenty-one] TWENTY- TWO the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over $27,900 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over S. 2509 7 A. 3009 $43,000 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over $161,550 Over $323,200 but not over $19,403 plus 6.85% of excess $2,155,350 over $323,200 Over $2,155,350 $144,905 plus 8.82% of excess over $2,155,350 (v) For taxable years beginning in two thousand [twenty-two] TWENTY- THREE the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over $27,900 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over $161,550 Over $323,200 but not over $2,155,350 $19,124 plus 6.85% of excess over $323,200 Over $2,155,350 $144,626 plus 8.82% of excess over $2,155,350 (vi) For taxable years beginning in two thousand [twenty-three] TWEN- TY-FOUR the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over $27,900 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over $161,550 Over $323,200 but not over $18,834 plus 6.85% of $2,155,350 excess over $323,200 Over $2,155,350 $144,336 plus 8.82% of excess over $2,155,350 (vii) For taxable years beginning in two thousand [twenty-four] TWEN- TY-FIVE the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over $27,900 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over $161,550 Over $323,200 but not over $18,544 plus 6.85% of $2,155,350 excess over $323,200 Over $2,155,350 $144,047 plus 8.82% of excess over $2,155,350 S. 2509 8 A. 3009 (viii) For taxable years beginning after two thousand [twenty-four] TWENTY-FIVE the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over $27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over $161,550 Over $323,200 $18,252 plus 6.85% of excess over $323,200 § 2. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (b) of section 601 of the tax law, clauses (iii), (iv), (v), (vi) and (vii) as amended by section 2 of part P of chapter 59 of the laws of 2019 and clause (viii) as added by section 2 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iii) For taxable years beginning in two thousand twenty AND TWO THOU- SAND TWENTY-ONE the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over $32,200 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over $107,650 Over $269,300 but not over $16,524 plus 6.85% of $1,616,450 excess over $269,300 Over $1,616,450 $108,804 plus 8.82% of excess over $1,616,450 (iv) For taxable years beginning in two thousand [twenty-one] TWENTY- TWO the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over $32,200 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over $107,650 Over $269,300 but not over $16,304 plus 6.85% of $1,616,450 excess over $269,300 Over $1,616,450 $108,584 plus 8.82% of excess over $1,616,450 (v) For taxable years beginning in two thousand [twenty-two] TWENTY- THREE the following rates shall apply: S. 2509 9 A. 3009 If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over $20,900 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over $107,650 Over $269,300 but not over $16,079 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 $108,359 plus 8.82% of excess over $1,616,450 (vi) For taxable years beginning in two thousand [twenty-three] TWEN- TY-FOUR the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over $20,900 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over $107,650 Over $269,300 but not over $15,845 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 $108,125 plus 8.82% of excess over $1,616,450 (vii) For taxable years beginning in two thousand [twenty-four] TWEN- TY-FIVE the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over $20,900 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over $107,650 Over $269,300 but not over $15,612 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 $107,892 plus 8.82% of excess over $1,616,450 (viii) For taxable years beginning after two thousand [twenty-four] TWENTY-FIVE the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over S. 2509 10 A. 3009 $20,900 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over $107,650 Over $269,300 $15,371 plus 6.85% of excess over $269,300 § 3. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (c) of section 601 of the tax law, clauses (iii), (iv), (v), (vi) and (vii) as amended by section 3 of part P of chapter 59 of the laws of 2019 and clause (viii) as added by section 3 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iii) For taxable years beginning in two thousand twenty AND TWO THOU- SAND TWENTY-ONE the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over $13,900 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over $21,400 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over $80,650 Over $215,400 but not over $13,288 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $72,345 plus 8.82% of excess over $1,077,550 (iv) For taxable years beginning in two thousand [twenty-one] TWENTY- TWO the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over $13,900 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over $21,400 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over $80,650 Over $215,400 but not over $13,109 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $72,166 plus 8.82% of excess over $1,077,550 (v) For taxable years beginning in two thousand [twenty-two] TWENTY- THREE the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over S. 2509 11 A. 3009 $13,900 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over $80,650 Over $215,400 but not over $12,926 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $71,984 plus 8.82% of excess over $1,077,550 (vi) For taxable years beginning in two thousand [twenty-three] TWEN- TY-FOUR the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over $13,900 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over $80,650 Over $215,400 but not over $12,738 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $71,796 plus 8.82% of excess over $1,077,550 (vii) For taxable years beginning in two thousand [twenty-four] TWEN- TY-FIVE the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over $13,900 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over $80,650 Over $215,400 but not over $12,550 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $71,608 plus 8.82% of excess over $1,077,550 (viii) For taxable years beginning after two thousand [twenty-four] TWENTY-FIVE the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over $13,900 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over $80,650 Over $215,400 $12,356 plus 6.85% of excess over $215,400 § 4. Subparagraph (D) of paragraph 1 of subsection (d-1) of section 601 of the tax law, as amended by section 4 of part P of chapter 59 of the laws of 2019, is amended to read as follows: S. 2509 12 A. 3009 (D) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (a) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (a) of this section less the sum of the tax table benefits in subparagraphs (A), (B) and (C) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over two million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after January first, two thousand twelve and before January first, two thou- sand [twenty-five] TWENTY-SIX. § 5. Subparagraph (C) of paragraph 2 of subsection (d-1) of section 601 of the tax law, as amended by section 5 of part P of chapter 59 of the laws of 2019, is amended to read as follows: (C) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (b) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (b) of this section less the sum of the tax table benefits in subparagraphs (A) and (B) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one million five hundred thousand dollars and the denominator is fifty thou- sand dollars. This subparagraph shall apply only to taxable years begin- ning on or after January first, two thousand twelve and before January first, two thousand [twenty-five] TWENTY-SIX. § 6. Subparagraph (C) of paragraph 3 of subsection (d-1) of section 601 of the tax law, as amended by section 6 of part P of chapter 59 of the laws of 2019, is amended to read as follows: (C) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (c) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (c) of this section less the sum of the tax table benefits in subparagraphs (A) and (B) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after January first, two thousand twelve and before January first, two thou- sand [twenty-five] TWENTY-SIX. § 7. Notwithstanding any provision of law to the contrary, the method of determining the amount to be deducted and withheld from wages on account of taxes imposed by or pursuant to the authority of article 22 of the tax law in connection with the implementation of the provisions of this act shall be prescribed by the commissioner of taxation and finance with due consideration to the effect such withholding tables and methods would have on the receipt and amount of revenue. The commission- er of taxation and finance shall adjust such withholding tables and S. 2509 13 A. 3009 methods in regard to taxable years beginning in 2021 and after in such manner as to result, so far as practicable, in withholding from an employee's wages an amount substantially equivalent to the tax reason- ably estimated to be due for such taxable years as a result of the provisions of this act. Any such changes in withholding tables and meth- ods for tax year 2021 shall be adopted and effective as soon as practi- cable. The commissioner of taxation and finance may make similar changes to withholding tables and methods. The withholding tables and methods for tax year 2021 shall not be prescribed by regulation, notwithstanding any provision of the state administrative procedure act to the contrary. § 8. The additions to tax imposed by subsection (c) of section 685 of the tax law shall not apply to any installments of estimated tax due on or before September fifteenth, two thousand twenty-one if the underpay- ment is the result of the enactment of the tax rates for the tax year two thousand twenty-one prescribed by this act. § 9. This act shall take effect immediately. PART C Section 1. The tax law is amended by adding a new article 24-A to read as follows: ARTICLE 24-A PASS-THROUGH ENTITY TAX SECTION 860. DEFINITIONS. 861. PASS-THROUGH ENTITY TAX ELECTION. 862. IMPOSITION AND RATE OF TAX. 863. PASS-THROUGH ENTITY TAX CREDIT. 864. PAYMENT OF ESTIMATED TAX. 865. FILING OF RETURN AND PAYMENT OF TAX. 866. ACCOUNTING PERIODS AND METHODS. 867. PROCEDURAL PROVISIONS. § 860. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE: (A) ELIGIBLE PARTNERSHIP. ELIGIBLE PARTNERSHIP MEANS ANY PARTNERSHIP AS PROVIDED FOR IN SECTION 7701(A)(2) OF THE INTERNAL REVENUE CODE THAT CONSISTS SOLELY OF PARTNERS WHO ARE INDIVIDUALS. AN ELIGIBLE PARTNER- SHIP INCLUDES ANY LIMITED LIABILITY COMPANY TREATED AS A PARTNERSHIP FOR FEDERAL INCOME TAX PURPOSES THAT OTHERWISE MEETS THE REQUIREMENTS OF THIS SUBDIVISION. (B) ELIGIBLE S CORPORATION. ELIGIBLE S CORPORATION MEANS ANY NEW YORK S CORPORATION AS DEFINED PURSUANT TO THIS CHAPTER THAT CONSISTS SOLELY OF SHAREHOLDERS WHO ARE INDIVIDUALS. AN ELIGIBLE S CORPORATION INCLUDES ANY LIMITED LIABILITY COMPANY TREATED AS AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES THAT OTHERWISE MEETS THE REQUIREMENTS OF THIS SUBDI- VISION. (C) ELECTING PARTNERSHIP. ELECTING PARTNERSHIP MEANS ANY ELIGIBLE PARTNERSHIP THAT MADE A VALID, TIMELY ELECTION PURSUANT TO SECTION EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE. (D) ELECTING S CORPORATION. ELECTING S CORPORATION MEANS ANY ELIGIBLE S CORPORATION THAT MADE A VALID, TIMELY ELECTION PURSUANT TO SECTION EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE. (E) TAXPAYER. TAXPAYER MEANS ANY ELECTING PARTNERSHIP OR ELECTING S CORPORATION. (F) PASS-THROUGH ENTITY TAX. PASS-THROUGH ENTITY TAX MEANS THE TOTAL TAX IMPOSED BY THIS ARTICLE ON ELECTING PARTNERSHIPS AND ELECTING S CORPORATIONS. S. 2509 14 A. 3009 (G) PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO). PASS- THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO) MEANS: (1) IN THE CASE OF AN ELECTING PARTNERSHIP, THE SUM OF (I) FEDERAL TAXABLE INCOME (NOT LESS THAN ZERO), AS DESCRIBED IN SECTION 702(A)(8) OF THE INTERNAL REVENUE CODE, TO THE EXTENT EARNED DIRECTLY BY SUCH PARTNERSHIP; (II) TAXES PAID OR INCURRED DURING THE TAXABLE YEAR PURSU- ANT TO THIS ARTICLE BY A PARTNERSHIP TO THE EXTENT DEDUCTED IN COMPUTING FEDERAL TAXABLE INCOME; (III) TAXES SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED PURSUANT TO THIS ARTICLE PAID OR INCURRED DURING THE TAXABLE YEAR TO ANOTHER STATE OF THE UNITED STATES, A POLITICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF COLUMBIA TO THE EXTENT DEDUCTED IN COMPUTING FEDERAL TAXABLE INCOME; AND (IV) GUARANTEED PAYMENTS PAID BY THE PARTNERSHIP TO ITS PARTNERS AS DESCRIBED IN SECTION 707(C) OF THE INTERNAL REVENUE CODE. (2) IN THE CASE OF AN ELECTING S CORPORATION, THE SUM OF (I) FEDERAL NONSEPARATELY COMPUTED INCOME (NOT LESS THAN ZERO), AS DESCRIBED IN SECTION 1366(A)(2) OF THE INTERNAL REVENUE CODE, WHETHER EARNED BY SUCH S CORPORATION OR BY A PARTNERSHIP OF WHICH THE S CORPORATION IS A PART- NER; (II) TAXES PAID OR INCURRED DURING THE TAXABLE YEAR PURSUANT TO THIS ARTICLE BY AN S CORPORATION TO THE EXTENT DEDUCTED IN COMPUTING FEDERAL ORDINARY INCOME; AND (III) TAXES SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED PURSUANT TO THIS ARTICLE PAID OR INCURRED DURING THE TAXABLE YEAR TO ANOTHER STATE OF THE UNITED STATES, A POLITICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF COLUMBIA TO THE EXTENT DEDUCTED IN COMPUTING FEDERAL TAXABLE INCOME. (H) PARTNERSHIP TAXABLE INCOME. PARTNERSHIP TAXABLE INCOME OF AN ELECTING PARTNERSHIP MEANS THE SUM OF (1) THE ELECTING PARTNERSHIP'S PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO), ALLOCATED TO NEW YORK STATE PURSUANT TO SUBDIVISION (B) OF SECTION EIGHT HUNDRED SIXTY- TWO OF THIS ARTICLE; AND (2) THE ELECTING PARTNERSHIP'S PROPORTIONATE SHARE OF ANY PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO) FROM A PARTNERSHIP OF WHICH IT IS A PARTNER TO THE EXTENT IT WAS SOURCED TO NEW YORK BY SUCH PARTNERSHIP PURSUANT TO THE PRINCIPLES OF ARTICLE TWEN- TY-TWO OF THIS CHAPTER. (I) S CORPORATION TAXABLE INCOME. S CORPORATION TAXABLE INCOME OF AN ELECTING S CORPORATION MEANS THE ELECTING S CORPORATION'S PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO) ALLOCATED TO NEW YORK STATE PURSUANT TO SUBDIVISION (C) OF SECTION EIGHT HUNDRED SIXTY-TWO OF THIS ARTICLE. § 861. PASS-THROUGH ENTITY TAX ELECTION. (A) ANY ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION DOING BUSINESS WITHIN THIS STATE SHALL BE ALLOWED TO MAKE AN ANNUAL ELECTION TO BE TAXED PURSUANT TO THIS ARTICLE. (B) IN ORDER TO BE EFFECTIVE, THE ANNUAL ELECTION MUST BE MADE (1) IF THE ENTITY IS AN S CORPORATION, BY ANY OFFICER, MANAGER OR SHAREHOLDER OF THE S CORPORATION WHO IS AUTHORIZED UNDER THE LAW OF THE STATE WHERE THE CORPORATION IS INCORPORATED OR UNDER THE S CORPORATION'S ORGANIZA- TIONAL DOCUMENTS TO MAKE THE ELECTION AND WHO REPRESENTS TO HAVING SUCH AUTHORIZATION UNDER PENALTY OF PERJURY; OR (2) IF THE ENTITY IS NOT AN S CORPORATION, BY ANY MEMBER, PARTNER, OWNER, OR OTHER INDIVIDUAL WITH AUTHORITY TO BIND THE ENTITY OR SIGN RETURNS PURSUANT TO SECTION SIX HUNDRED FIFTY-THREE OF THIS CHAPTER. (C) IF THE ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION REPORTS ON A CALENDAR YEAR BASIS, THE ANNUAL ELECTION MUST BE MADE BY DECEMBER FIRST OF EACH CALENDAR YEAR AND WILL TAKE EFFECT FOR THE IMMEDIATELY SUCCEED- ING CALENDAR YEAR. IF AN ELECTION IS MADE AFTER DECEMBER FIRST OF A S. 2509 15 A. 3009 CALENDAR YEAR, IT WILL FIRST TAKE EFFECT IN THE SECOND SUCCEEDING CALEN- DAR YEAR. (D) IF THE ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION REPORTS ON A FISCAL YEAR BASIS, THE ANNUAL ELECTION MUST BE MADE BY THE FIRST DAY OF THE LAST FULL MONTH PRIOR TO THE START OF THE FISCAL YEAR AND WILL TAKE EFFECT FOR THE IMMEDIATELY SUCCEEDING FISCAL YEAR. IF AN ELECTION IS MADE AFTER SUCH DATE, IT WILL FIRST TAKE EFFECT IN THE SECOND SUCCEEDING FISCAL YEAR. (E) (1) TERMINATION OF ELECTION. AN ELECTION PURSUANT TO SUBDIVISION (A) OF THIS SECTION SHALL BE TERMINATED WHENEVER, AT ANY TIME DURING THE TAXABLE YEAR, THE TAXPAYER CEASES TO BE AN ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION. (2) EFFECTIVE DATE OF TERMINATION. THE TERMINATION OF AN ELECTION IS EFFECTIVE IMMEDIATELY UPON THE TAXPAYER CEASING TO BE AN ELIGIBLE PART- NERSHIP OR ELIGIBLE S CORPORATION AND NO TAX WILL BE DUE PURSUANT TO THIS ARTICLE FOR THE TAXABLE YEAR. (3) ABATEMENT OF PENALTIES. IF A TERMINATION OCCURS PURSUANT TO THIS SUBDIVISION SOLELY BECAUSE A PARTNER, MEMBER OR SHAREHOLDER OF AN OTHER- WISE ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION DIED DURING THE TAXABLE YEAR AND THE SUCCESSOR TO THE DECEDENT'S INTEREST IN THE PART- NERSHIP OR S CORPORATION IS NOT AN INDIVIDUAL, NO ADDITION TO TAX WILL BE IMPOSED PURSUANT TO SUBSECTION (C) OF SECTION SIX HUNDRED EIGHTY-FIVE OF THIS CHAPTER ON THE PARTNERS, MEMBERS AND SHAREHOLDERS OF SUCH PART- NERSHIP OR S CORPORATION SOLELY FOR UNDERPAYMENT OF ESTIMATED PERSONAL INCOME TAX AS A RESULT OF THE TERMINATION OF THE ELECTION MADE PURSUANT TO THIS ARTICLE. § 862. IMPOSITION AND RATE OF TAX. (A) GENERAL. A TAX IS HEREBY IMPOSED FOR EACH TAXABLE YEAR ON THE PARTNERSHIP TAXABLE INCOME OF EVERY ELECTING PARTNERSHIP DOING BUSINESS WITHIN THIS STATE AND ON THE S CORPORATION TAXABLE INCOME OF EVERY ELECTING S CORPORATION DOING BUSI- NESS WITHIN THIS STATE. THIS TAX SHALL BE IN ADDITION TO ANY OTHER TAXES IMPOSED AND SHALL BE AT THE RATE OF SIX AND EIGHTY-FIVE HUNDREDTHS PERCENT FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-TWO. (B) ALLOCATION TO NEW YORK BY AN ELECTING PARTNERSHIP. IN DETERMINING THE AMOUNT OF PARTNERSHIP TAXABLE INCOME, THE ADJUSTED NET INCOME OF THE ELECTING PARTNERSHIP SHALL BE ALLOCATED TO THIS STATE PURSUANT TO THE PRINCIPLES OF ARTICLE TWENTY-TWO OF THIS CHAPTER. (C) ALLOCATION TO NEW YORK BY AN ELECTING S CORPORATION. IN DETERMIN- ING THE AMOUNT OF S CORPORATION TAXABLE INCOME, THE ADJUSTED NET INCOME OF THE ELECTING S CORPORATION SHALL BE ALLOCATED TO THIS STATE BY MULTI- PLYING THE ADJUSTED NET INCOME OF THE ELECTING S CORPORATION BY THE BUSINESS APPORTIONMENT FACTOR OF THE ELECTING S CORPORATION AS CALCU- LATED PURSUANT TO SECTION TWO HUNDRED TEN-A OF THIS CHAPTER. § 863. PASS-THROUGH ENTITY TAX CREDIT. AN INDIVIDUAL SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER THAT IS A PARTNER OR MEMBER IN AN ELECTING PARTNERSHIP OR A SHAREHOLDER OF AN ELECTING S CORPORATION SUBJECT TO TAX UNDER THIS ARTICLE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED PURSUANT TO ARTICLE TWENTY-TWO OF THIS CHAPTER, COMPUTED PURSUANT TO THE PROVISIONS OF SUBSECTION (KKK) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. § 864. PAYMENT OF ESTIMATED TAX. (A) DEFINITION OF ESTIMATED TAX. ESTIMATED TAX MEANS THE AMOUNT THAT AN ELECTING PARTNERSHIP OR ELECTING S CORPORATION ESTIMATES TO BE THE TAX IMPOSED BY SECTION EIGHT HUNDRED SIXTY-TWO OF THIS ARTICLE FOR THE CURRENT TAXABLE YEAR. S. 2509 16 A. 3009 (B) GENERAL. THE ESTIMATED TAX SHALL BE PAID AS FOLLOWS FOR AN ELECT- ING PARTNERSHIP AND AN ELECTING S CORPORATION THAT REPORTS ON A CALENDAR YEAR BASIS: (1) THE ESTIMATED TAX SHALL BE PAID IN FOUR EQUAL INSTALLMENTS ON MARCH FIFTEENTH, JUNE FIFTEENTH, SEPTEMBER FIFTEENTH AND DECEMBER FIFTEENTH. (2) THE AMOUNT OF ANY REQUIRED INSTALLMENT SHALL BE TWENTY-FIVE PERCENT OF THE REQUIRED ANNUAL PAYMENT. (3) THE REQUIRED ANNUAL PAYMENT IS THE LESSER OF: (A) NINETY PERCENT OF THE TAX SHOWN ON THE RETURN FOR THE TAXABLE YEAR; OR (B) ONE HUNDRED PERCENT OF THE TAX SHOWN ON THE RETURN OF THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION FOR THE PRECEDING TAXABLE YEAR. (C) APPLICATION TO SHORT TAXABLE YEAR. THIS SECTION SHALL APPLY TO A TAXABLE YEAR OF LESS THAN TWELVE MONTHS IN ACCORDANCE WITH PROCEDURES ESTABLISHED BY THE COMMISSIONER. (D) FISCAL YEAR. THIS SECTION SHALL APPLY TO A TAXABLE YEAR OTHER THAN A CALENDAR YEAR BY THE SUBSTITUTION OF THE MONTHS OF SUCH FISCAL YEAR FOR THE CORRESPONDING MONTHS SPECIFIED IN THIS SECTION. (E) INSTALLMENTS PAID IN ADVANCE. AN ELECTING PARTNERSHIP OR ELECTING S CORPORATION MAY ELECT TO PAY ANY INSTALLMENT OF ITS ESTIMATED TAX PRIOR TO THE DATE PRESCRIBED FOR THE PAYMENT THEREOF. § 865. FILING OF RETURN AND PAYMENT OF TAX. (A) GENERAL. ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR, EACH ELECTING PARTNERSHIP AND EACH ELECTING S CORPORATION MUST FILE A RETURN FOR THE TAXABLE YEAR REPORTING THE INFORMATION REQUIRED PURSUANT TO THIS ARTICLE. (B) CERTIFICATION OF ELIGIBILITY. EVERY RETURN FILED PURSUANT TO SUBDIVISION (A) OF THIS SECTION SHALL INCLUDE, IN A FORMAT AS PRESCRIBED BY THE COMMISSIONER, A CERTIFICATION BY AN INDIVIDUAL AUTHORIZED TO ACT ON BEHALF OF THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION THAT THE TAXPAYER: (1) MADE A TIMELY, VALID ELECTION TO BE SUBJECT TO TAX PURSUANT TO THIS ARTICLE; (2) WAS AT ALL TIMES DURING THE TAXABLE YEAR ELIGIBLE TO MAKE SUCH AN ELECTION, UNLESS SUCH RETURN INCLUDES A NOTIFICATION OF TERMINATION AS PROVIDED FOR IN SUBDIVISION (C) OF THIS SECTION; AND (3) THAT ALL STATEMENTS CONTAINED THEREIN ARE TRUE. (C) NOTIFICATION OF TERMINATION. IF AN ELECTION IS TERMINATED DURING THE TAXABLE YEAR PURSUANT TO SUBDIVISION (E) OF SECTION EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE, THE ELECTING PARTNERSHIP OR ELECTING S CORPO- RATION IS REQUIRED TO FILE A RETURN PURSUANT TO SUBDIVISION (A) OF THIS SECTION NOTIFYING THE COMMISSIONER OF SUCH TERMINATION. SUCH NOTIFICA- TION WILL BE CONSIDERED A CLAIM FOR A CREDIT OR REFUND OF AN OVERPAYMENT OF PASS-THROUGH ENTITY TAX OF ANY ESTIMATED PAYMENTS MADE PURSUANT TO THIS ARTICLE FOR THE TAXABLE YEAR CONTAINING THE DATE OF TERMINATION. (D) INFORMATION ON RETURN. EACH ELECTING PARTNERSHIP AND ELECTING S CORPORATION SHALL REPORT ON SUCH RETURN: (1) THE BALANCE OF ANY TAX SHOWN ON SUCH RETURN, NOT PREVIOUSLY PAID AS INSTALLMENTS OF ESTIMATED TAX, SHALL BE PAID WITH SUCH RETURN; (2) IDENTIFYING INFORMATION OF ALL PARTNERS, MEMBERS AND/OR SHAREHOLD- ERS ELIGIBLE TO RECEIVE A CREDIT PURSUANT TO SECTION EIGHT HUNDRED SIXTY THREE AND SUCH PARTNER'S, MEMBER'S AND/OR SHAREHOLDER'S DISTRIBUTIVE OR PRO RATA SHARE OF THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECTING PARTNERSHIP OR S CORPORATION; AND (3) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER. S. 2509 17 A. 3009 (E) INFORMATION PROVIDED TO PARTNERS. EACH ELECTING PARTNERSHIP SUBJECT TO TAX UNDER THIS ARTICLE SHALL REPORT TO EACH PARTNER OR MEMBER ITS DISTRIBUTIVE SHARE OF: (1) THE PARTNERSHIP TAXABLE INCOME OF THE ELECTING PARTNERSHIP; (2) THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECTING PARTNERSHIP; AND (3) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER. (F) INFORMATION PROVIDED TO SHAREHOLDERS. EACH ELECTING S CORPORATION SUBJECT TO TAX UNDER THIS ARTICLE SHALL REPORT TO EACH SHAREHOLDER ITS PRO RATA SHARE OF: (1) THE S CORPORATION TAXABLE INCOME OF THE ELECTING S CORPORATION; (2) THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECTING S CORPORATION; AND (3) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER. § 866. ACCOUNTING PERIODS AND METHODS. (A) ACCOUNTING PERIODS. AN ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S TAXABLE YEAR PURSUANT TO THIS ARTICLE SHALL BE THE SAME AS THE ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES. (B) ACCOUNTING METHODS. AN ELECTING PARTNERSHIP'S OR ELECTING S CORPO- RATION'S METHOD OF ACCOUNTING PURSUANT TO THIS ARTICLE SHALL BE THE SAME AS THE ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S METHOD OF ACCOUNTING FOR FEDERAL INCOME TAX PURPOSES. (C) CHANGE OF ACCOUNTING PERIOD OR METHOD. (1) IF AN ELECTING PARTNER- SHIP'S OR ELECTING S CORPORATION'S TAXABLE YEAR OR METHOD OF ACCOUNTING IS CHANGED FOR FEDERAL INCOME TAX PURPOSES, THE TAXABLE YEAR OR METHOD OF ACCOUNTING FOR PURPOSES OF THIS ARTICLE SHALL BE SIMILARLY CHANGED. (2) IF AN ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S METHOD OF ACCOUNTING IS CHANGED, ANY ADDITIONAL TAX THAT RESULTS FROM ADJUSTMENTS DETERMINED TO BE NECESSARY SOLELY BY REASON OF SUCH CHANGE SHALL NOT BE GREATER THAN IF SUCH ADJUSTMENTS WERE RATABLY ALLOCATED AND INCLUDED FOR THE TAXABLE YEAR OF THE CHANGE AND THE PRECEDING TAXABLE YEARS, NOT IN EXCESS OF TWO, DURING WHICH THE ENTITY USED THE METHOD OF ACCOUNTING FROM WHICH THE CHANGE IS MADE. § 867. PROCEDURAL PROVISIONS. (A) GENERAL. ALL PROVISIONS OF ARTICLE TWENTY-TWO OF THIS CHAPTER WILL APPLY TO THE PROVISIONS OF THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF ARTICLE TWENTY-TWO OF THIS CHAPTER HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND HAD BEEN SPECIFICALLY ADJUSTED FOR AND EXPRESSLY REFERRED TO THE TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. NOTWITHSTANDING THE PRECEDING SENTENCE, NO CREDIT AGAINST TAX IN ARTICLE TWENTY-TWO OF THIS CHAPTER CAN BE USED TO OFFSET THE TAX DUE PURSUANT TO THIS ARTICLE. (B) CROSS ARTICLE FILINGS. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS ARTICLE: (1) THE COMMISSIONER MAY REQUIRE THE FILING OF ONE RETURN WHICH, IN ADDITION TO THE RETURN PROVIDED FOR IN SECTION EIGHT HUNDRED SIXTY-FIVE OF THIS ARTICLE, MAY ALSO INCLUDE ANY OF THE RETURNS REQUIRED TO BE FILED BY A TAXPAYER PURSUANT TO THE PROVISIONS OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OR ARTICLE NINE-A OF THIS CHAPTER. (2) WHERE SUCH RETURN IS REQUIRED, THE COMMISSIONER MAY ALSO REQUIRE THE PAYMENT WITH IT OF A SINGLE AMOUNT WHICH SHALL EQUAL THE TOTAL OF THE AMOUNTS (TOTAL TAXES LESS ANY CREDITS OR REFUNDS) THAT WOULD HAVE BEEN REQUIRED TO BE PAID WITH THE RETURNS PURSUANT TO THE PROVISIONS OF THIS ARTICLE AND THE PROVISIONS OF ARTICLE TWENTY-TWO OF THIS CHAPTER OR S. 2509 18 A. 3009 THE PROVISIONS OF ARTICLE NINE-A OF THIS CHAPTER, WHICHEVER IS APPLICA- BLE. (3) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE COMMISSIONER MAY REQUIRE THAT ALL FORMS OR RETURNS PURSUANT TO THIS ARTICLE MUST BE FILED ELECTRONICALLY AND ALL PAYMENTS OF TAX MUST BE PAID ELECTRON- ICALLY. (C) LIABILITY FOR TAX. AN ELECTING PARTNERSHIP OR ELECTING S CORPO- RATION SHALL BE LIABLE FOR THE TAX DUE PURSUANT TO THIS ARTICLE. IN ADDITION, EVERY INDIVIDUAL ELIGIBLE TO CLAIM A CREDIT PURSUANT TO SUBSECTION (KKK) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER BECAUSE HE OR SHE IS A PARTNER OR MEMBER IN AN ELECTING PARTNERSHIP OR A SHAREHOLD- ER IN AN ELECTING S CORPORATION SHALL BE JOINTLY AND SEVERALLY LIABLE FOR THE TAX IMPOSED PURSUANT TO THIS ARTICLE ON SUCH ELECTING PARTNER- SHIP OR ELECTING S CORPORATION. (D) DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, INTEREST, PENAL- TIES, AND FEES COLLECTED OR RECEIVED BY THE COMMISSIONER PURSUANT TO THIS ARTICLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER. (E) SECRECY PROVISION. ALL THE PROVISIONS OF PARAGRAPHS ONE AND TWO OF SUBSECTION (E) OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS CHAPTER WILL APPLY TO THE PROVISIONS OF THIS ARTICLE. NOTWITHSTANDING ANY PROVISIONS OF THIS CHAPTER TO THE CONTRARY, THE COMMISSIONER MAY DISCLOSE INFORMA- TION AND RETURNS REGARDING THE CALCULATION AND PAYMENT OF THE TAX IMPOSED BY THIS ARTICLE AND ANY CREDIT CALCULATED ON TAXES PAID PURSUANT TO THIS ARTICLE BY AN ELECTING PARTNERSHIP OR ELECTING S CORPORATION TO A PARTNER, MEMBER OR SHAREHOLDER OF SUCH ENTITY. § 2. Section 606 of the tax law is amended by adding a new subsection (kkk) to read as follows: (KKK) CREDIT FOR PASS-THROUGH ENTITY TAX. (1) A TAXPAYER PARTNER OR MEMBER OF AN ELECTING PARTNERSHIP AND A TAXPAYER SHAREHOLDER OF AN ELECTING S CORPORATION SUBJECT TO TAX UNDER ARTICLE TWENTY-FOUR-A OF THIS CHAPTER SHALL BE ENTITLED TO A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AS PROVIDED IN THIS SUBSECTION. FOR PURPOSES OF THIS SUBSECTION, THE TERMS "ELECTING PARTNERSHIP," "ELECTING S CORPORATION," AND "PASS-THROUGH ENTITY TAX" SHALL HAVE THE SAME MEANINGS AS USED IN ARTICLE TWENTY-FOUR-A OF THIS CHAPTER. (2) THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF: (I) THE TAXPAYER'S PROFIT PERCENTAGE OF THE ELECTING PARTNERSHIP OR PRO RATA SHARE OF THE ELECTING S CORPORATION; (II) NINETY-TWO PERCENT; AND (III) THE PASS-THROUGH ENTITY TAX PAID BY THE ELECTING PARTNERSHIP OR S CORPORATION FOR THE TAXABLE YEAR. (3) IF A TAXPAYER IS A PARTNER, MEMBER OR SHAREHOLDER IN MULTIPLE ELECTING PARTNERSHIPS AND/OR ELECTING S CORPORATIONS SUBJECT TO TAX PURSUANT TO ARTICLE TWENTY-FOUR-A OF THIS CHAPTER, THE TAXPAYER'S CREDIT SHALL BE THE SUM OF SUCH CREDITS CALCULATED PURSUANT TO PARAGRAPH TWO OF THIS SUBSECTION WITH REGARD TO EACH ENTITY IN WHICH THE TAXPAYER HAS A DIRECT OWNERSHIP INTEREST. (4) IF THE AMOUNT OF THE CREDIT ALLOWABLE PURSUANT TO THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAX DUE FOR SUCH YEAR PURSUANT TO THIS ARTICLE, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT, TO BE CREDITED OR REFUNDED, WITHOUT INTEREST. § 3. Section 620 of the tax law, as amended by chapter 2 of the laws of 1962, subsection (a) as amended and paragraph 3 of subsection (b) as added by chapter 274 of the laws of 1987, and subsection (d) as added by chapter 166 of 1991, is amended to read as follows: S. 2509 19 A. 3009 § 620. Credit for income tax of another state. (a) General. A resident shall be allowed a credit against the tax otherwise due under this arti- cle for any income tax imposed ON SUCH INDIVIDUAL for the taxable year by another state of the United States, a political subdivision of such state, the District of Columbia or a province of Canada, upon income both derived therefrom and subject to tax under this article. The term "income tax imposed" in the previous sentence shall not include the portion of such tax (determined in the manner provided for in section six hundred twenty-A) which is imposed upon the ordinary income portion (or part thereof) of a lump sum distribution which is subject to the separate tax imposed by section [six hundred one-C] SIX HUNDRED THREE. (b) PASS-THROUGH ENTITY TAXES. (1) A RESIDENT SHALL BE ALLOWED A CRED- IT AGAINST THE TAX OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY PASS- THROUGH ENTITY TAX SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED PURSUANT TO ARTICLE TWENTY-FOUR-A OF THIS CHAPTER IMPOSED ON THE INCOME OF A PART- NERSHIP OR S CORPORATION OF WHICH THE RESIDENT IS A PARTNER, MEMBER OR SHAREHOLDER FOR THE TAXABLE YEAR BY ANOTHER STATE OF THE UNITED STATES, A POLITICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF COLUMBIA UPON INCOME BOTH DERIVED THEREFROM AND SUBJECT TO TAX UNDER THIS ARTICLE. (2) SUCH CREDIT SHALL BE EQUAL TO THE PRODUCT OF: (A) THE TAXPAYER'S PROFIT PERCENTAGE OF THE ELECTING PARTNERSHIP OR PRO RATA SHARE OF THE ELECTING S CORPORATION; (B) NINETY-TWO PERCENT; AND (C) THE PASS-THROUGH ENTITY TAX PAID BY THE ELECTING PARTNERSHIP OR S CORPORATION TO SUCH OTHER STATE, POLITICAL SUBDIVISION OF SUCH OTHER STATE OR THE DISTRICT OF COLUMBIA. (3) HOWEVER, SUCH CREDIT WILL BE ALLOWED ON TAX PAID ONLY IF: (A) THE STATE OF THE UNITED STATES, POLITICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF COLUMBIA IMPOSING SUCH TAX ALSO IMPOSES AN INCOME TAX SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED UNDER THIS ARTICLE; AND (B) IN THE CASE OF TAXES PAID BY AN S CORPORATION, SUCH S CORPORATION WAS TREATED AS A NEW YORK S CORPORATION. (C) Limitations. (1) The credit under this section shall not exceed the percentage of the tax otherwise due under this article determined by dividing the portion of the taxpayer's New York income subject to taxa- tion by such other jurisdiction by the total amount of the taxpayer's New York income. (2) The credit under this section shall not reduce the tax otherwise due under this article to an amount less than would have been due if the income subject to taxation by such other jurisdiction were excluded from the taxpayer's New York income. (3) In the case of a taxpayer who elects to claim the foreign tax credit for federal income tax purposes, the credit under this section for income tax imposed by a province of Canada shall be allowed for that portion of the provincial tax not claimed for federal purposes for the taxable year or a preceding taxable year, provided however, to the extent the provincial tax is claimed for federal purposes for a succeed- ing taxable year, the credit under this section must be added back in such succeeding taxable year. The provincial tax shall be deemed to be claimed last for federal income tax purposes and for purposes of this subsection. [(c)] (D) Definition. For purposes of this section New York income means: (1) the New York adjusted gross income of an individual, or S. 2509 20 A. 3009 (2) the amount of the income of an estate or trust, determined as if the estate or trust were an individual computing his New York adjusted gross income under section six hundred twelve. [(d) S corporation shareholders. In the case of a shareholder of an S corporation, the term "income tax" in subsection (a) of this section shall not include any such tax imposed upon or payable by the corpo- ration, but shall include any such tax with respect to the income of the corporation imposed upon or payable by the shareholder, without regard to whether an election independent of the federal S election was required to effect such imposition upon the shareholder.] § 4. 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-D, twenty-one, twenty-two, twenty-four, TWENTY- FOUR-A, 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 thir- ty-three-A of this chapter shall be deposited daily in one account with such responsible banks, banking houses or trust companies as may be designated by the comptroller, to the credit of the comptroller. Such an account may be established in one or more of such depositories. Such deposits shall be kept separate and apart from all other money in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the total revenue collected or received under such articles of this chapter, the comptroller shall retain in the comptroller's hands such amount as the commissioner may determine to be necessary for refunds or reimbursements under such arti- cles 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 S. 2509 21 A. 3009 amount which is certified to the comptroller by the commissioner as the amount to be credited against the amount of defaults in repayment of guaranteed student loans and state university loans or city university loans pursuant to subdivision five of section one hundred seventy-one-d and subdivision six of section one hundred seventy-one-e of this arti- cle, (iii) and except further that, notwithstanding any law, the comp- troller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpay- ment of tax imposed by article nine, nine-A, twenty-two, thirty, thir- ty-A, thirty-B or thirty-three of this chapter, and any interest there- on, which is certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall credit to the special offset fiduciary account, pursuant to section ninety-one-c of the state finance law, any such amount credita- ble as a liability as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty- two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commission- er as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by arti- cle twenty-two of this chapter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seventy-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corpo- ration, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy-one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 5. 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- S. 2509 22 A. 3009 of), twenty-D, twenty-one, twenty-two, twenty-four, TWENTY-FOUR-A, twen- ty-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 S. 2509 23 A. 3009 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. § 6. Subdivisions 2, 3 and paragraph (a) of subdivision 5 of section 92-z of the state finance law, as amended by section 5 of part MM of chapter 59 of the laws of 2018, are amended to read as follows: 2. Such fund shall consist of (a) fifty percent of receipts from the imposition of personal income taxes pursuant to article twenty-two of the tax law, less such amounts as the commissioner of taxation and finance may determine to be necessary for refunds, [and] (b) fifty percent of receipts from the imposition of employer compensation expense taxes pursuant to article twenty-four of the tax law, less such amounts as the commissioner of taxation and finance may determine to be neces- sary for refunds, AND (C) FIFTY PERCENT OF RECEIPTS FROM THE IMPOSITION OF THE PASS-THROUGH ENTITY TAXES PURSUANT TO ARTICLE TWENTY-FOUR-A OF THE TAX LAW, LESS SUCH AMOUNTS AS THE COMMISSION OF TAXATION AND FINANCE MAY DETERMINE TO BE NECESSARY FOR REFUNDS. 3. (a) Beginning on the first day of each month, the comptroller shall deposit all of the receipts collected pursuant to section six hundred seventy-one of the tax law in the revenue bond tax fund until the amount of monthly receipts anticipated to be deposited pursuant to the certif- icate required in paragraph (b) of subdivision five of this section are met. On or before the twelfth day of each month, the commissioner of taxation and finance shall certify to the state comptroller the amounts specified in paragraph (a) of subdivision two of this section relating to the preceding month and, in addition, no later than March thirty- first of each fiscal year the commissioner of taxation and finance shall certify such amounts relating to the last month of such fiscal year. The amounts so certified shall be deposited by the state comptroller in the revenue bond tax fund. (b) Beginning on the first day of each month, the comptroller shall deposit all of the receipts collected pursuant to section eight hundred fifty-four of the tax law in the revenue bond tax fund until the amount of monthly receipts anticipated to be deposited pursuant to the certif- icate required in paragraph (b) of subdivision five of this section are met. On or before the twelfth day of each month, the commissioner of S. 2509 24 A. 3009 taxation and finance shall certify to the state comptroller the amounts specified in paragraph (b) of subdivision two of this section relating to the preceding month and, in addition, no later than March thirty- first of each fiscal year the commissioner of taxation and finance shall certify such amounts relating to the last month of such fiscal year. The amounts so certified shall be deposited by the state comptroller in the revenue bond tax fund. (C) BEGINNING ON THE FIRST DAY OF EACH MONTH, THE COMPTROLLER SHALL DEPOSIT ALL OF THE RECEIPTS COLLECTED PURSUANT TO SECTIONS EIGHT HUNDRED SIXTY-FOUR AND EIGHT HUNDRED SIXTY-FIVE OF THE TAX LAW IN THE REVENUE BOND TAX FUND UNTIL THE AMOUNT OF MONTHLY RECEIPTS ANTICIPATED TO BE DEPOSITED PURSUANT TO THE CERTIFICATE REQUIRED IN PARAGRAPH (B) OF SUBDIVISION FIVE OF THIS SECTION ARE MET. ON OR BEFORE THE TWELFTH DAY OF EACH MONTH, THE COMMISSIONER OF TAXATION AND FINANCE SHALL CERTIFY TO THE STATE COMPTROLLER THE AMOUNTS SPECIFIED IN PARAGRAPH (C) OF SUBDIVI- SION TWO OF THIS SECTION RELATING TO THE PRECEDING MONTH AND, IN ADDI- TION, NO LATER THAN MARCH THIRTY-FIRST OF EACH FISCAL YEAR THE COMMIS- SIONER OF TAXATION AND FINANCE SHALL CERTIFY SUCH AMOUNTS RELATING TO THE LAST MONTH OF SUCH FISCAL YEAR. THE AMOUNTS SO CERTIFIED SHALL BE DEPOSITED BY THE STATE COMPTROLLER IN THE REVENUE BOND TAX FUND. (a) The state comptroller shall from time to time, but in no event later than the fifteenth day of each month (other than the last month of the fiscal year) and no later than the thirty-first day of the last month of each fiscal year, pay over and distribute to the credit of the general fund of the state treasury all moneys in the revenue bond tax fund, if any, in excess of the aggregate amount required to be set aside for the payment of cash requirements pursuant to paragraph (b) of this subdivision, provided that an appropriation has been made to pay all amounts specified in any certificate or certificates delivered by the director of the budget pursuant to paragraph (b) of this subdivision as being required by each authorized issuer as such term is defined in section sixty-eight-a of this chapter for the payment of cash require- ments of such issuers for such fiscal year. Subject to the rights of holders of debt of the state, in no event shall the state comptroller pay over and distribute any moneys on deposit in the revenue bond tax fund to any person other than an authorized issuer pursuant to such certificate or certificates (i) unless and until the aggregate of all cash requirements certified to the state comptroller as required by such authorized issuers to be set aside pursuant to paragraph (b) of this subdivision for such fiscal year shall have been appropriated to such authorized issuers in accordance with the schedule specified in the certificate or certificates filed by the director of the budget or (ii) if, after having been so certified and appropriated, any payment required to be made pursuant to paragraph (b) of this subdivision has not been made to the authorized issuers which was required to have been made pursuant to such certificate or certificates; provided, however, that no person, including such authorized issuers or the holders of revenue bonds, shall have any lien on moneys on deposit in the revenue bond tax fund. Any agreement entered into pursuant to section sixty- eight-c of this chapter related to any payment authorized by this section shall be executory only to the extent of such revenues available to the state in such fund. Notwithstanding subdivisions two and three of this section, in the event the aggregate of all cash requirements certi- fied to the state comptroller as required by such authorized issuers to be set aside pursuant to paragraph (b) of this subdivision for the fiscal year beginning on April first shall not have been appropriated to S. 2509 25 A. 3009 such authorized issuers in accordance with the schedule specified in the certificate or certificates filed by the director of the budget or, (ii) if, having been so certified and appropriated, any payment required to be made pursuant to paragraph (b) of this subdivision has not been made pursuant to such certificate or certificates, all receipts collected pursuant to section six hundred seventy-one of the tax law, [and] section eight hundred fifty-four of the tax law, SECTION EIGHT HUNDRED SIXTY-FOUR OF THE TAX LAW, AND SECTION EIGHT HUNDRED SIXTY-FIVE OF THE TAX LAW shall be deposited in the revenue bond tax fund until the great- er of forty percent of the aggregate of the receipts from the imposition of (A) the personal income tax imposed by article twenty-two of the tax law, [and] (B) the employer compensation expense tax imposed by article twenty-four of the tax law, AND (C) THE PASS-THROUGH ENTITY TAX IMPOSED BY ARTICLE TWENTY-FOUR-A OF THE TAX LAW for the fiscal year beginning on April first and as specified in the certificate or certificates filed by the director of the budget pursuant to this paragraph or a total of twelve billion dollars has been deposited in the revenue bond tax fund. Notwithstanding any other provision of law, if the state has appropri- ated and paid to the authorized issuers the amounts necessary for the authorized issuers to meet their requirements for the current fiscal year pursuant to the certificate or certificates submitted by the direc- tor of the budget pursuant to paragraph (b) of this section, the state comptroller shall, on the last day of each fiscal year, pay to the general fund of the state all sums remaining in the revenue bond tax fund on such date except such amounts as the director of the budget may certify are needed to meet the cash requirements of authorized issuers during the subsequent fiscal year. § 7. Subdivision 5 of section 68-c of the state finance law, as amended by section 6 of part MM of chapter 59 of the laws of 2018, is amended to read as follows: 5. Nothing contained in this article shall be deemed to restrict the right of the state to amend, repeal, modify or otherwise alter statutes imposing or relating to the taxes imposed pursuant to article twenty-two, [and] article twenty-four, AND ARTICLE TWENTY-FOUR-A of the tax law. The authorized issuers shall not include within any resolution, contract or agreement with holders of the revenue bonds issued under this article any provision which provides that a default occurs as a result of the state exercising its right to amend, repeal, modify or otherwise alter the taxes imposed pursuant to article twenty-two, [and] article twenty-four, AND ARTICLE TWENTY-FOUR-A of the tax law. § 8. This act shall take effect immediately and shall apply to all taxable years beginning on or after January 1, 2022; provided, however, that the amendments to subdivision 1 of section 171-a of the tax law made by section four of this act shall not affect the expiration of such subdivision and shall expire therewith, when upon such date the provisions of section five of this act shall take effect. PART D Section 1. Section 352 of the economic development law is amended by adding two new subdivisions 5-a and 13-a to read as follows: 5-A. "CHILD CARE SERVICES" MEANS THOSE SERVICES UNDERTAKEN OR SPON- SORED BY A PARTICIPANT IN THIS PROGRAM MEETING THE REQUIREMENTS OF "CHILD DAY CARE" AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION THREE HUNDRED NINETY OF THE SOCIAL SERVICES LAW OR ANY CHILD CARE SERVICES IN THE CITY OF NEW YORK WHEREBY A PERMIT TO OPERATE SUCH S. 2509 26 A. 3009 CHILD CARE SERVICES IS REQUIRED PURSUANT TO THE HEALTH CODE OF THE CITY OF NEW YORK. 13-A. "NET NEW CHILD CARE SERVICES EXPENDITURES" MEANS THE CALCULATION OF NEW, ANNUAL PARTICIPANT EXPENDITURES ON CHILD CARE SERVICES WHETHER INTERNAL OR PROVIDED BY A THIRD PARTY (INCLUDING COVERAGE FOR FULL OR PARTIAL DISCOUNT OF EMPLOYEE RATES), MINUS ANY REVENUES RECEIVED BY THE PARTICIPANT THROUGH A THIRD-PARTY OPERATOR (I.E. RENT PAID TO THE PARTICIPANT BY THE CHILD CARE PROVIDER) OR EMPLOYEES AND MAY BE FURTHER DEFINED BY THE COMMISSIONER IN REGULATIONS. FOR THE PURPOSES OF THIS DEFINITION, EXPENDITURES FOR CHILD CARE SERVICES THAT A PARTICIPANT HAS INCURRED PRIOR TO ADMISSION TO THIS PROGRAM SHALL NOT BE ELIGIBLE FOR THE CREDIT. § 2. Paragraphs (k) and (l) of subdivision 1 of section 353 of the economic development law, as amended by section 2 of part L of chapter 59 of the laws of 2020, are amended and a new paragraph (m) is added to read as follows: (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[.]; OR (M) AS A PARTICIPANT OPERATING IN ONE OF THE INDUSTRIES LISTED IN PARAGRAPHS (A) THROUGH (K) OF THIS SUBDIVISION AND OPERATING OR SPONSOR- ING CHILD CARE SERVICES TO ITS EMPLOYEES AS DEFINED IN SECTION THREE HUNDRED FIFTY-TWO OF THIS ARTICLE. § 3. Subdivisions 2 and 6 of section 355 of the economic development law, subdivision 2 as amended by section 4 of part L of chapter 59 of the laws of 2020 and subdivision 6 as amended by section 4 of part K of chapter 59 of the laws of 2015, are amended and a new subdivision 2-a is added to read as follows: 2. Excelsior investment tax credit component. A participant in the excelsior jobs program shall be eligible to claim a credit on qualified investments. 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. IN A PROJECT FOR CHILD CARE SERVICES, THE CREDIT SHALL BE EQUAL TO FIVE PERCENT OF THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED INVESTMENT IN CHILD CARE SERVICES. A participant may not claim both the excelsior investment tax credit component and the investment tax credit set forth in subdivision one of section two hundred ten-B, subsection (a) of section six hundred six, the former subsection (i) of section fourteen hundred fifty-six, or subdivision (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 property 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 enterprise has received a certificate of tax credit, provided that qualified investments made on or after the issuance of the certificate of eligibility but before the issuance of the certificate of S. 2509 27 A. 3009 tax credit to the business enterprise, may be claimed in the first taxa- ble year for which the business enterprise is allowed to claim the cred- it. Expenses incurred prior to the date the certificate of eligibility is issued are not eligible to be included in the calculation of the credit. 2-A. EXCELSIOR CHILD CARE SERVICES TAX CREDIT COMPONENT. A PARTICIPANT ENGAGING IN A NEW EXCELSIOR JOBS PROGRAM PROJECT SHALL BE ELIGIBLE TO CLAIM A CREDIT ON ITS NET NEW CHILD CARE SERVICES EXPENDITURES FOR ITS OPERATION, SPONSORSHIP OR DIRECT FINANCIAL SUPPORT OF A CHILD CARE SERVICES PROGRAM. THE CREDIT SHALL BE EQUAL TO SIX PERCENT OF THE NET NEW CHILD CARE SERVICES EXPENDITURES AS DEFINED IN THIS CHAPTER. 6. Claim of tax credit. The business enterprise shall be allowed to claim the credit as prescribed in section thirty-one of the tax law. No costs used by an entertainment company as the basis for the allowance of a tax credit described in this section shall be used by such enter- tainment company to claim any other credit allowed pursuant to the tax law. NO COSTS OR EXPENDITURES FOR CHILD CARE SERVICES USED BY A PARTIC- IPANT TO CLAIM THE CREDIT AS PRESCRIBED IN SECTION FORTY-FOUR OF THE TAX LAW SHALL BE USED FOR THE ALLOWANCE OF A TAX CREDIT DESCRIBED IN THIS SECTION. § 4. Subdivision (a) of section 31 of the tax law is amended by adding a new paragraph 2-a to read as follows: (2-A) THE EXCELSIOR CHILD CARE SERVICES TAX CREDIT COMPONENT; § 5. Subdivision (a) of section 44 of the tax law, as added by section 1 of part L of chapter 59 of the laws of 2019, is amended to read as follows: (a) General. A taxpayer subject to tax under article nine-A, twenty- two, or thirty-three of this chapter shall be allowed a credit against such tax in an amount equal to TWO HUNDRED PERCENT OF the portion of the credit that is allowed to the taxpayer under section 45F of the internal revenue code that is attributable to (i) qualified child care expendi- tures paid or incurred with respect to a qualified child care facility with a situs in the state, and to (ii) qualified child care resource and referral expenditures paid or incurred with respect to the taxpayer's employees working in the state. The credit allowable under this subdivi- sion for any taxable year shall not exceed [one hundred fifty] FIVE HUNDRED thousand dollars. If the entity operating the qualified child care facility is a partnership or a New York S corporation, then such cap shall be applied at the entity level, so the aggregate credit allowed to all the partners or shareholders of such entity in a taxable year does not exceed [one hundred fifty] FIVE HUNDRED thousand dollars. § 6. This act shall take effect immediately; provided, however, section five of this act shall apply to taxable years beginning on or after January 1, 2022. PART E Section 1. Paragraph (b) of subdivision 2 of section 184 of the tax law, as added by chapter 485 of the laws of 1988, is amended to read as follows: (b) (1) A corporation classed as a "taxicab" or "omnibus", (i) which is organized, incorporated or formed under the laws of any other state, country or sovereignty, and (ii) which neither owns nor leases property in this state in a corpo- rate or organized capacity, nor S. 2509 28 A. 3009 (iii) maintains an office in this state in a corporate or organized capacity, but (iv) which is doing business or employing capital in this state by conducting at least one but fewer than twelve trips into this state during the calendar year, shall [annually pay a tax equal to fifteen dollars for each trip conducted into this state] NOT BE TAXED UNDER THE PROVISIONS OF THIS ARTICLE. If the only property a corporation owns or leases in this state is a vehicle or vehicles used to conduct trips, it shall not be considered, for purposes of clause (ii) of this subpara- graph, to be owning or leasing property in this state. (2) [The commissioner of taxation and finance may prescribe such forms as he may deem necessary to report such tax in a simplified manner. (3)] For purposes of this subdivision, a corporation classed as a "taxicab" or "omnibus" shall be considered to be conducting a trip into New York state when one of its vehicles enters New York state and trans- ports passengers to, from, or to and from a location in New York state. A corporation shall not be considered to be conducting a trip into New York state if its vehicle only makes incidental stops at locations in the state while in transit from a location outside New York state to another location outside New York state. The number of trips a corpo- ration conducts into New York state shall be calculated by determining the number of trips each vehicle owned, leased or operated by the corpo- ration conducts into New York state and adding those numbers together. [(4) Provided, however, that the provisions of this paragraph shall not apply to any corporation which does not file its franchise tax report in a timely manner (determined with regard to any extension of time for filing).] § 2. Subdivision 1-A of section 208 of the tax law, as amended by section 4 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 1-A. The term "New York S corporation" means, with respect to any taxable year, a corporation subject to tax under this article [for which an election is in effect pursuant to] AND DESCRIBED IN PARAGRAPH (I) OR (II) OF subsection (a) of section six hundred sixty of this chapter [for such year], AND any such year shall be denominated a "New York S year"[, and such election shall be denominated a "New York S election"]. The term "New York C corporation" means, with respect to any taxable year, a corporation subject to tax under this article which is not a New York S corporation, and any such year shall be denominated a "New York C year". The term "termination year" means any taxable year of a corporation during which the CORPORATION'S STATUS AS A New York S [election] CORPO- RATION terminates on a day other than the first day of such year. The portion of the taxable year ending before the first day for which such termination is effective shall be denominated the "S short year", and the portion of such year beginning on such first day shall be denomi- nated the "C short year". The term "New York S termination year" means any termination year which is [not] also an S termination year for federal purposes. § 3. Subdivision 1-B and subparagraph (ii) of the opening paragraph and paragraph (k) of subdivision 9 of section 208 of the tax law are REPEALED. § 4. Subparagraph (A) and the opening paragraph of subparagraph (B) of paragraph 5 of subdivision (a) of section 292 of the tax law, as added by section 48 of part A of chapter 389 of the laws of 1997, are amended to read as follows: (A) In the case of a shareholder of an S corporation, S. 2509 29 A. 3009 (i) [where the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty of this chapter [is in effect with respect to such corporation], there shall be added to federal unrelated business taxable income an amount equal to the shareholder's pro rata share of the corporation's reductions for taxes described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code, and (ii) [where such election has not been made with respect to such corporation, there shall be subtracted from federal unrelated business taxable income any items of income of the corporation included therein, and there shall be added to federal unrelated business taxable income any items of loss or deduction included therein, and (iii)] in the case of a New York S termination year, the amount of any such items of S corporation income, loss, deduction and reductions for taxes shall be adjusted in the manner provided in paragraph two or three of subsection (s) of section six hundred twelve of this chapter. In the case of a shareholder of a corporation which was, for any of its taxable years beginning after nineteen hundred ninety-seven AND BEFORE TWO THOUSAND TWENTY-TWO, a federal S corporation but a New York C corporation: § 5. Paragraph 18 of subsection (b) of section 612 of the tax law, as amended by chapter 606 of the laws of 1984, subparagraph (A) as amended by chapter 28 of the laws of 1987 and subparagraph (B) as amended by chapter 190 of the laws of 1990, is amended to read as follows: (18) In the case of a shareholder of an S corporation AS DESCRIBED IN SUBSECTION (A) OF SECTION SIX HUNDRED SIXTY (A) [where the election provided for in subsection (a) of section six hundred sixty is in effect with respect to such corporation,] an amount equal to his OR HER pro rata share of the corporation's reductions for taxes described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code, and (B) in the case of a New York S termination year, subparagraph (A) of this paragraph shall apply to the amount of reductions for taxes deter- mined under subsection (s) of this section. § 6. Paragraph 19 of subsection (b) of section 612 of the tax law is REPEALED. § 7. Paragraphs 20 and 21 of subsection (b) of section 612 of the tax law, paragraph 20 as amended by chapter 606 of the laws of 1984 and paragraph 21 as amended by section 70 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (20) S corporation distributions to the extent not included in federal gross income for the taxable year because of the application of section thirteen hundred sixty-eight, subsection (e) of section thirteen hundred seventy-one or subsection (c) of section thirteen hundred seventy-nine of the internal revenue code which represent income not previously subject to tax under this article because the election provided for in subsection (a) of section six hundred sixty IN EFFECT FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-TWO had not been made. Any such distribution treated in the manner described in paragraph two of subsection (b) of section thirteen hundred sixty-eight of the internal revenue code for federal income tax purposes shall be treated as ordinary income for purposes of this article. (21) In relation to the disposition of stock or indebtedness of a corporation which elected under subchapter s of chapter one of the internal revenue code for any taxable year of such corporation begin- ning, in the case of a corporation taxable under article nine-A of this S. 2509 30 A. 3009 chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-TWO, the amount required to be added to federal adjusted gross income pursuant to subsection (n) of this section. § 8. Paragraph 21 of subsection (c) of section 612 of the tax law, as amended by section 70 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (21) In relation to the disposition of stock or indebtedness of a corporation which elected under subchapter s of chapter one of the internal revenue code for any taxable year of such corporation begin- ning, in the case of a corporation taxable under article nine-A of this chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-TWO, the amounts required to be subtracted from federal adjusted gross income pursuant to subsection (n) of this section. § 9. Paragraph 22 of subsection (c) of section 612 of the tax law is REPEALED. § 10. Subsection (e) of section 612 of the tax law, as amended by chapter 166 of the laws of 1991, paragraph 3 as added by chapter 760 of the laws of 1992, is amended to read as follows: (e) Modifications of partners and shareholders of S corporations. (1) Partners and shareholders of S corporations [which are not New York C corporations]. The amounts of modifications required to be made under this section by a partner or by a shareholder of an S corporation [(other than an S corporation which is a New York C corporation)], which relate to partnership or S corporation items of income, gain, loss or deduction shall be determined under section six hundred seventeen and, in the case of a partner of a partnership doing an insurance business as a member of the New York insurance exchange described in section six thousand two hundred one of the insurance law, under section six hundred seventeen-a of this article. (2) [Shareholders of S corporations which are New York C corporations. In the case of a shareholder of an S corporation which is a New York C corporation, the modifications under this section which relate to the corporation's items of income, loss and deduction shall not apply, except for the modifications provided under paragraph nineteen of subsection (b) and paragraph twenty-two of subsection (c) of this section. (3)] New York S termination year. In the case of a New York S termi- nation year, the amounts of the modifications required under this section which relate to the S corporation's items of income, loss, deduction and reductions for taxes (as described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code) shall be adjusted in the same manner that the S corporation's items are adjusted under subsection (s) of section six hundred twelve. § 11. Subsection (n) of section 612 of the tax law, as amended by section 61 of part A of chapter 389 of the laws of 1997, is amended to read as follows: (n) Where gain or loss is recognized for federal income tax purposes upon the disposition of stock or indebtedness of a corporation electing under subchapter s of chapter one of the internal revenue code (1) There shall be added to federal adjusted gross income the amount of increase in basis with respect to such stock or indebtedness pursuant to subsection (a) of section thirteen hundred seventy-six of the inter- nal revenue code as such section was in effect for taxable years begin- S. 2509 31 A. 3009 ning before January first, nineteen hundred eighty-three and subpara- graphs (A) and (B) of paragraph one of subsection (a) of section thirteen hundred sixty-seven of such code, for each taxable year of the corporation beginning, in the case of a corporation taxable under arti- cle nine-A of this chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-TWO, and in the case of a corporation taxable under FORMER article thirty-two of this chapter, after December thirty-first, nineteen hundred ninety-six AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, for which the election provided for in subsection (a) of section six hundred sixty of this article was not in effect, and (2) There shall be subtracted from federal adjusted gross income (A) the amount of reduction in basis with respect to such stock or indebtedness pursuant to subsection (b) of section thirteen hundred seventy-six of the internal revenue code as such section was in effect for taxable years beginning before January first, nineteen hundred eighty-three and subparagraphs (B) and (C) of paragraph two of subsection (a) of section thirteen hundred sixty-seven of such code, for each taxable year of the corporation beginning, in the case of a corpo- ration taxable under article nine-A of this chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-TWO, and in the case of a corporation taxable under FORMER article thirty-two of this chapter, after December thirty-first, nineteen hundred ninety-six AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, for which the election provided for in subsection (a) of section six hundred sixty of this article was not in effect and (B) the amount of any modifications to federal gross income with respect to such stock pursuant to paragraph twenty of subsection (b) of this section. § 12. Paragraph 6 of subsection (c) of section 615 of the tax law is REPEALED. § 13. Subsection (e) of section 615 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (e) Modifications of partners and shareholders of S corporations. (1) Partners and shareholders of S corporations [which are not New York C corporations]. The amounts of modifications under subsection (c) or under paragraph (2) or (3) of subsection (d) required to be made by a partner or by a shareholder of an S corporation [(other than an S corpo- ration which is a New York C corporation)], with respect to items of deduction of a partnership or S corporation shall be determined under section six hundred seventeen. (2) [Shareholders of S corporations which are New York C corporations. In the case of a shareholder of an S corporation which is a New York C corporation, the modifications under this section which relate to the corporation's items of deduction shall not apply, except for the modifi- cation provided under paragraph six of subsection (c). (3)] New York S termination year. In the case of a New York S termi- nation year, the amounts of the modifications required under this section which relate to the S corporation's items of deduction shall be adjusted in the same manner that the S corporation's items are adjusted under subsection (s) of section six hundred twelve. § 14. Subsection (a) of section 617 of the tax law, as amended by chapter 190 of the laws of 1990, is amended to read as follows: (a) Partner's and shareholder's modifications. In determining New York adjusted gross income and New York taxable income of a resident partner or a resident shareholder of an S corporation [(other than an S corpo- S. 2509 32 A. 3009 ration which is a New York C corporation)], any modification described in subsections (b), (c) or (d) of section six hundred twelve, subsection (c) of section six hundred fifteen or paragraphs (2) or (3) of subsection (d) of such section, which relates to an item of partnership or S corporation income, gain, loss or deduction shall be made in accordance with the partner's distributive share or the shareholder's pro rata share, for federal income tax purposes, of the item to which the modification relates. Where a partner's distributive share or a shareholder's pro rata share of any such item is not required to be taken into account separately for federal income tax purposes, the part- ner's or shareholder's share of such item shall be determined in accord- ance with his OR HER share, for federal income tax purposes, of partner- ship or S corporation taxable income or loss generally. In the case of a New York S termination year, his OR HER pro rata share of any such item shall be determined under subsection (s) of section six hundred twelve. § 15. Subparagraph (E-1) of paragraph 1 of subsection (b) of section 631 of the tax law, as added by section 3 of part C of chapter 57 of the laws of 2010, is amended to read as follows: (E-1) in the case of an S corporation [for which an election is in effect pursuant] SUBJECT to subsection (a) of section six hundred sixty of this article that terminates its taxable status in New York, any income or gain recognized on the receipt of payments from an installment sale contract entered into when the S corporation was subject to tax in New York, allocated in a manner consistent with the applicable methods and rules for allocation under article nine-A or FORMER ARTICLE thirty- two of this chapter, in the year that the S corporation sold its assets. § 16. The section heading and paragraph 2 of subsection (a) of section 632 of the tax law, the section heading as amended by chapter 606 of the laws of 1984, and paragraph 2 of subsection (a) as amended by section 71 of part A of chapter 59 of the laws of 2014, are amended to read as follows: Nonresident partners and [electing] shareholders of S corporations. (2) In determining New York source income of a nonresident shareholder of an S corporation [where the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty of this article [is in effect], there shall be included only the portion derived from or connected with New York sources of such shareholder's pro rata share of items of S corporation income, loss and deduction entering into his OR HER federal adjusted gross income, increased by reductions for taxes described in paragraphs two and three of subsection (f) of section thir- teen hundred sixty-six of the internal revenue code, as such portion shall be determined under regulations of the commissioner consistent with the applicable methods and rules for allocation under article nine-A of this chapter[, regardless of whether or not such item or reduction is included in entire net income under article nine-A for the tax year]. If a nonresident is a shareholder in an S corporation [where the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty of this article [is in effect], and the S corporation has distributed an installment obligation under section 453(h)(1)(A) of the Internal Revenue Code, then any gain recognized on the receipt of payments from the installment obligation for federal income tax purposes will be treated as New York source income allocated in a manner consist- ent with the applicable methods and rules for allocation under article nine-A of this chapter in the year that the assets were sold. In addi- tion, if the shareholders of the S corporation have made an election under section 338(h)(10) of the Internal Revenue Code, then any gain S. 2509 33 A. 3009 recognized on the deemed asset sale for federal income tax purposes will be treated as New York source income allocated in a manner consistent with the applicable methods and rules for allocation under article nine-A of this chapter in the year that the shareholder made the section 338(h)(10) election. For purposes of a section 338(h)(10) election, when a nonresident shareholder exchanges his or her S corporation stock as part of the deemed liquidation, any gain or loss recognized shall be treated as the disposition of an intangible asset and will not increase or offset any gain recognized on the deemed assets sale as a result of the section 338(h)(10) election. § 17. Subsection (a) of section 632-a of the tax law, as added by section 1 of part K of chapter 60 of the laws of 2007, is amended to read as follows: (a) General. If (1) substantially all of the services of a personal service corporation or S corporation are performed for or on behalf of another corporation, partnership, or other entity and (2) the effect of forming or availing of such personal service corporation or S corpo- ration is the avoidance or evasion of New York income tax by reducing the income of, or in the case of a nonresident, reducing the New York source income of, or securing the benefit of any expense, deduction, credit, exclusion, or other allowance for, any employee-owner which would not otherwise be available, then the commissioner may allocate all income, deductions, credits, exclusions, and other allowances between such personal service corporation or S corporation (even if such personal service corporation or S corporation [is taxed under article nine-A of this chapter or] is not subject to tax in this state) and its employee-owners, provided such allocation is necessary to prevent avoid- ance or evasion of New York state income tax or to clearly reflect the source and the amount of the income of the personal service corporation or S corporation or any of its employee-owners. § 18. Paragraph 2 and subparagraph (A) of paragraph 4 of subsection (c) of section 658 of the tax law, paragraph 2 as amended by chapter 190 of the laws of 1990, and subparagraph (A) of paragraph 4 as amended by section 72 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (2) S corporations. Every S corporation [for which the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty [is in effect] shall make a return for the taxable year setting forth all items of income, loss and deduction and such other pertinent infor- mation as the commissioner of taxation and finance may by regulations and instructions prescribe. Such return shall be filed on or before the fifteenth day of the third month following the close of each taxable year. (A) General. Every entity which is a partnership, other than a public- ly traded partnership as defined in section 7704 of the federal Internal Revenue Code, subchapter K limited liability company or an S corporation [for which the election provided for in subsection (a) of section six hundred sixty of this part is in effect], which has partners, members or shareholders who are nonresident individuals, as defined under subsection (b) of section six hundred five of this article, or C corpo- rations, and which has any income derived from New York sources, deter- mined in accordance with the applicable rules of section six hundred thirty-one of this article as in the case of a nonresident individual, shall pay estimated tax on such income on behalf of such partners, members or shareholders in the manner and at the times prescribed by subsection (c) of section six hundred eighty-five of this article. For S. 2509 34 A. 3009 purposes of this paragraph, the term "estimated tax" shall mean a part- ner's, member's or shareholder's distributive share or pro rata share of the entity income derived from New York sources, multiplied by the high- est rate of tax prescribed by section six hundred one of this article for the taxable year of any partner, member or shareholder who is an individual taxpayer, or paragraph (a) of subdivision one of section two hundred ten of this chapter for the taxable year of any partner, member or shareholder which is a C corporation, whether or not such C corpo- ration is subject to tax under article nine, nine-A or thirty-three of this chapter, and reduced by the distributive share or pro rata share of any credits determined under section one hundred eighty-seven, one hundred eighty-seven-a, six hundred six or fifteen hundred eleven of this chapter, whichever is applicable, derived from the entity. § 19. Section 660 of the tax law, as amended by chapter 606 of the laws of 1984, subsections (a) and (h) as amended by section 73 of part A of chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as amended by section 51, paragraphs 4 and 5 of subsection (b) as added and paragraph 6 of subsection (b) as renumbered by section 52 and subsections (e) and (f) as added and subsection (g) as relettered by section 53 of part A of chapter 389 of the laws of 1997, subsection (d) as added by chapter 760 of the laws of 1992, subsection (i) as added by section 1 of part L of chapter 60 of the laws of 2007 and paragraph 1 of subsection (i) as amended by section 39 of part T of chapter 59 of the laws of 2015, is amended to read as follows: § 660. [Election by shareholders of S corporations] TAX TREATMENT OF FEDERAL S CORPORATIONS. (a) [Election.] If a corporation is an eligible S corporation, the shareholders of the corporation [may elect in the manner set forth in subsection (b) of this section to] SHALL take into account, to the extent provided for in this article (or in article thir- teen of this chapter, in the case of a shareholder which is a taxpayer under such article), the S corporation items of income, loss, deduction and reductions for taxes described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code which are taken into account for federal income tax purposes for the taxable year. [No election under this subsection shall be effective unless all shareholders of the corporation have so elected.] An eligible S corporation is (i) [an S] A corporation THAT HAS ELECTED TO BE AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE INTERNAL REVENUE CODE which is subject to tax under article nine-A of this chapter, or (ii) [an S] A corporation THAT HAS ELECTED TO BE AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE INTERNAL REVENUE CODE which is the parent of a qualified subchapter S subsidiary AS DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE subject to tax under article nine-A[, where the sharehold- ers of such parent corporation are entitled to make the election under this subsection by reason of subparagraph three of paragraph (k) of subdivision nine of section two hundred eight] of this chapter. (b) [Requirements of election. An election under subsection (a) of this section shall be made on such form and in such manner as the tax commission may prescribe by regulation or instruction. (1) When made. An election under subsection (a) of this section may be made at any time during the preceding taxable year of the corporation or at any time during the taxable year of the corporation and on or before the fifteenth day of the third month of such taxable year. S. 2509 35 A. 3009 (2) Certain elections made during first two and one-half months. If an election made under subsection (a) of this section is made for any taxa- ble year of the corporation during such year and on or before the fifteenth day of the third month of such year, such election shall be treated as made for the following taxable year if (A) on one or more days in such taxable year before the day on which the election was made the corporation did not meet the requirements of subsection (b) of section thirteen hundred sixty-one of the internal revenue code or (B) one or more of the shareholders who held stock in the corporation during such taxable year and before the election was made did not consent to the election. (3) Elections made after first two and one-half months. If an election under subsection (a) of this section is made for any taxable year of the corporation and such election is made after the fifteenth day of the third month of such taxable year and on or before the fifteenth day of the third month of the following taxable year, such election shall be treated as made for the following taxable year. (4) Taxable years of two and one-half months or less. For purposes of this subsection, an election for a taxable year made not later than two months and fifteen days after the first day of the taxable year shall be treated as timely made during such year. (5) Authority to treat late elections, etc., as timely. If (A) an election under subsection (a) of this section is made for any taxable year (determined without regard to paragraph three of this subsection) after the date prescribed by this subsection for making such election for such taxable year, or if no such election is made for any taxable year, and (B) the commissioner determines that there was reasonable cause for failure to timely make such election, then (C) the commissioner may treat such an election as timely made for such taxable year (and paragraph three of this subsection shall not apply). (6) Years for which effective. An election under subsection (a) of this section shall be effective for the taxable year of the corporation for which it is made and for all succeeding taxable years of the corpo- ration until such election is terminated under subsection (c) of this section. (c)] Termination. An [election under] ELIGIBLE S CORPORATION SHALL CEASE TO BE SUBJECT TO subsection (a) of this section [shall cease to be effective (1)] on the day an election to be an S corporation ceases to be effec- tive for federal income tax purposes pursuant to subsection (d) of section thirteen hundred sixty-two of the internal revenue code[, or (2) if shareholders holding more than one-half of the shares of stock of the corporation on the day on which the revocation is made revoke such election in the manner the tax commission may prescribe by regu- lation, (A) on the first day of the taxable year of the corporation, if the revocation is made during such taxable year and on or before the fifteenth day of the third month thereof, or (B) on the first day of the following taxable year of the corporation, if the revocation is made during the taxable year but after the fifteenth day of the third month thereof, or S. 2509 36 A. 3009 (C) on and after the date so specified, if the revocation specifies a date for revocation which is on or after the day on which the revocation is made, or (3) if any person who was not a shareholder of the corporation on the day on which the election is made becomes a shareholder in the corpo- ration and affirmatively refuses to consent to such election in the manner the tax commission may prescribe by regulation, on the day such person becomes a shareholder]. [(d)] (C) New York S termination year. In the case of a New York S termination year, the amount of any item of S corporation income, loss and deduction and reductions for taxes (as described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code) required to be taken account of under this arti- cle shall be adjusted in the same manner that the S corporation's items which are included in the shareholder's federal adjusted gross income are adjusted under subsection (s) of section six hundred twelve. [(e) Inadvertent invalid elections. If (1) an election under subsection (a) of this section was not effective for the taxable year for which made (determined without regard to paragraph two of subsection (b) of this section) by reason of a failure to obtain shareholder consents, (2) the commissioner determines that the circumstances resulting in such ineffectiveness were inadvertent, (3) no later than a reasonable period of time after discovery of the circumstances resulting in such ineffectiveness, steps were taken to acquire the required shareholder consents, and (4) the corporation, and each person who was a shareholder in the corporation at any time during the period specified pursuant to this subsection, agrees to make such adjustments (consistent with the treat- ment of the corporation as a New York S corporation) as may be required by the commissioner with respect to such period, (5) then, notwithstanding the circumstances resulting in such ineffec- tiveness, such corporation shall be treated as a New York S corporation during the period specified by the commissioner. (f)] (D) QUALIFIED SUBCHAPTER S SUBSIDIARIES. IF AN S CORPORATION HAS ELECTED TO TREAT ITS WHOLLY OWNED SUBSIDIARY AS A QUALIFIED SUBCHAPTER S SUBSIDIARY FOR FEDERAL INCOME TAX PURPOSES UNDER PARAGRAPH THREE OF SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE, SUCH ELECTION SHALL BE APPLICABLE FOR NEW YORK STATE TAX PURPOSES AND (1) THE ASSETS, LIABILITIES, INCOME, DEDUCTIONS, PROPERTY, PAYROLL, RECEIPTS, CAPITAL, CREDITS, AND ALL OTHER TAX ATTRIBUTES AND ELEMENTS OF ECONOMIC ACTIVITY OF THE SUBSIDIARY SHALL BE DEEMED TO BE THOSE OF THE PARENT CORPORATION, (2) TRANSACTIONS BETWEEN THE PARENT CORPORATION AND THE SUBSIDIARY, INCLUDING THE PAYMENT OF INTEREST AND DIVIDENDS, SHALL NOT BE TAKEN INTO ACCOUNT, AND (3) GENERAL EXECUTIVE OFFICERS OF THE SUBSIDIARY SHALL BE DEEMED TO BE GENERAL EXECUTIVE OFFICERS OF THE PARENT CORPORATION. (E) Validated federal elections. If [(1) an election under subsection (a) of this section was made for a taxable year or years of a corpo- ration, which years occur with or within the period for which] the federal S election of [such] AN ELIGIBLE S corporation has been vali- dated pursuant to the provisions of subsection (f) of section thirteen hundred sixty-two of the internal revenue code, [and S. 2509 37 A. 3009 (2) the corporation, and each person who was a shareholder in the corporation at any time during such taxable year or years agrees to make such adjustments (consistent with the treatment of the corporation as a New York S corporation) as may be required by the commissioner with respect to such year or years, (3) then] such corporation shall be treated as [a New York] AN ELIGI- BLE S corporation SUBJECT TO SUBSECTION (A) OF THIS SECTION during [such] THE year or years FOR WHICH SUCH ELECTION HAS BEEN VALIDATED. [(g) Transitional rule. Any election made under this section (as in effect for taxable years beginning before January first, nineteen hundred eighty-three) shall be treated as an election made under subsection (a) of this section. (h) Cross reference. For definitions relating to S corporations, see subdivision one-A of section two hundred eight of this chapter. (i) Mandated New York S corporation election. (1) Notwithstanding the provisions in subsection (a) of this section, in the case of an eligible S corporation for which the election under subsection (a) of this section is not in effect for the current taxable year, the shareholders of an eligible S corporation are deemed to have made that election effective for the eligible S corporation's entire current taxable year, if the eligible S corporation's investment income for the current taxa- ble year is more than fifty percent of its federal gross income for such year. In determining whether an eligible S corporation is deemed to have made that election, the income of a qualified subchapter S subsidiary owned directly or indirectly by the eligible S corporation shall be included with the income of the eligible S corporation. (2) For the purposes of this subsection, the term "eligible S corpo- ration" has the same definition as in subsection (a) of this section. (3) For the purposes of this subsection, the term "investment income" means the sum of an eligible S corporation's gross income from interest, dividends, royalties, annuities, rents and gains derived from dealings in property, including the corporation's share of such items from a partnership, estate or trust, to the extent such items would be includa- ble in federal gross income for the taxable year. (4) Estimated tax payments. When making estimated tax payments required to be made under this chapter in the current tax year, the eligible S corporation and its shareholders may rely on the eligible S corporation's filing status for the prior year. If the eligible S corpo- ration's filing status changes from the prior tax year the corporation or the shareholders, as the case may be, which made the payments shall be entitled to a refund of such estimated tax payments. No additions to tax with respect to any required declarations or payments of estimated tax imposed under this chapter shall be imposed on the corporation or shareholders, whichever is the taxpayer for the current taxable year, if the corporation or the shareholders file such declarations and make such estimated tax payments by January fifteenth of the following calendar year, regardless of whether the taxpayer's tax year is a calendar or a fiscal year.] § 20. Transition rules. Any prior net operating loss conversion subtraction and net operating loss carryforward that otherwise would have been allowed under subparagraphs (viii) and (ix), respectively, of paragraph (a) of subdivision 1 of section 210 of the tax law for the taxable years beginning on or after January 1, 2022 to any taxpayer that was a New York C corporation for a taxable year beginning on or after January 1, 2021 and before January 1, 2022, and that becomes a New York S corporation for a taxable year beginning on or after January 1, 2022 S. 2509 38 A. 3009 as a result of the amendments made by this act, shall be held in abey- ance and be available to such taxpayer if its election to be a federal S corporation is terminated. Further, any credit carryforwards allowed to such a taxpayer under section 210-B of the tax law shall be held in abeyance and be available to such taxpayer if its election to be a federal S corporation is terminated. However, the taxpayer's years as a New York S corporation shall be counted for purposes of computing any time period applicable to the allowance of the prior net operating loss conversion subtraction or carryforward, the net operating loss deduction, or any credit carryforward. § 21. This act shall take effect immediately, provided, however, that section one shall apply to taxable years beginning on or after January 1, 2021 and sections two through twenty shall apply to taxable years beginning on or after January 1, 2022. PART F Section 1. Paragraph 5 of subdivision (a) of section 24 of the tax law, as amended by section 5-a of part M of chapter 59 of the laws of 2020, is amended to read as follows: (5) For the period two thousand fifteen through two thousand [twenty- five] TWENTY-SIX, in addition to the amount of credit established in paragraph two of this subdivision, a taxpayer shall be allowed a credit equal to the product (or pro rata share of the product, in the case of a member of a partnership) of ten percent and the amount of wages or sala- ries paid to individuals directly employed (excluding those employed as writers, directors, music directors, producers and performers, including background actors with no scripted lines) by a qualified film production company or a qualified independent film production company for services performed by those individuals in one of the counties specified in this paragraph in connection with a qualified film with a minimum budget of five hundred thousand dollars. For purposes of this additional credit, the services must be performed in one or more of the following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this paragraph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty- five] TWENTY-SIX 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 S. 2509 39 A. 3009 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- five] TWENTY-SIX. § 2. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 5-b of part M of chapter 59 of the laws of 2020, 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-five] TWENTY-SIX 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-five] TWENTY-SIX 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-five] TWENTY-SIX. This amount shall be allocated by the governor's office for motion picture and television development among taxpayers in accordance with subdivision (a) of this section. If the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allocation in the empire state film tax credit pursuant to this section, subdivision twenty of section two hundred ten-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previ- ously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unal- located film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be made available for allocation for the empire state film post production credit pursuant to this section, subdivision thirty-two of section two hundred ten-B and subsection (qq) of section six hundred six of this 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 S. 2509 40 A. 3009 the taxable year the production of the qualified film is complete, or the taxable year immediately following the allocation year for which the film has been allocated credit by the governor's office for motion picture and television development. § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 2 of part SSS of chapter 59 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-SIX provided however, seven million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in two thousand thirteen and two thousand fourteen and twenty-five million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in each year starting in two thousand fifteen through two thousand [twenty-four] TWENTY-SIX. This amount shall be allocated by the governor's office for motion picture and television development among taxpayers in accordance with subdivision (a) of this section. If the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allocation in the empire state film tax credit pursuant to this section, subdivision twenty of section two hundred ten-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previ- ously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unal- located film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be made available for allocation for the empire state film post production credit pursuant to this section, subdivision thirty-two of section two hundred ten-B and subsection (qq) of section six hundred six of this 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. S. 2509 41 A. 3009 § 4. Paragraph 6 of subdivision (a) of section 31 of the tax law, as amended by section 5-c of part M of chapter 59 of the laws of 2020, is amended to read as follows: (6) For the period two thousand fifteen through two thousand [twenty- five] TWENTY-SIX, 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, COLUMBIA, Cort- land, 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, SULLIVAN, Tioga, Tompkins, ULSTER, WARREN, WASHINGTON, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this para- graph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty-five] TWENTY-SIX of the annual allocation made available to the empire state film post production credit pursuant to paragraph four of subdivision (e) of section twenty-four of this article. Such aggregate amount of credits shall be allocated by the governor's office for motion picture and tele- vision 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 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 para- graph 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 period two thousand fifteen through two thousand [twenty-five] TWENTY-SIX. § 5. Paragraph 3 of subdivision (b) of section 24 of the tax law, as separately amended by sections 3 and 4 of part M of chapter 59 of the laws of 2020, is amended to read as follow: (3) "Qualified film" means a feature-length film, television film, relocated television production, television pilot or television series, regardless of the medium by means of which the film, pilot or 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 S. 2509 42 A. 3009 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 prima- rily 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; (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 (mono- logues, 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 commissioner 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 applica- tion for each season of such series is continually submitted for such series after April first, two thousand twenty. § 6. This act shall take effect immediately; provided, however, that the amendments made by section five of this act shall apply to applica- tions that are filed with the governor's office for motion picture and television development on or after April 1, 2021; provided, further, however that the amendments to paragraph 4 of subdivision (e) of section 24 of the tax law made by section two of this act shall take effect on the same date and in the same manner as section 5 of chapter 683 of the laws of 2019, as amended, takes effect. PART G Section 1. Paragraph 3 of subsection (v) of section 685 of the tax law, as amended by section 3 of part I of chapter 59 of the laws of 2018, is amended to read as follows: (3) Failure to provide complete and correct employee withholding reconciliation information. In the case of a failure by an employer to provide complete and correct quarterly withholding information relating to individual employees on a quarterly combined withholding, wage reporting and unemployment insurance return covering each calendar quar- ter of a year, such employer shall, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, pay a penalty equal to the product of [fifty] ONE HUNDRED dollars multiplied by the number of employees for whom such information is incomplete or incor- rect; provided, however, that if the number of such employees cannot be S. 2509 43 A. 3009 determined from the quarterly combined withholding, wage reporting and unemployment insurance return, the commissioner may utilize any informa- tion in the commissioner's possession in making such determination. The total amount of the penalty imposed pursuant to this paragraph on an employer for any such failure for each calendar quarter of a year shall not exceed [ten] FIFTY thousand dollars. § 2. This act shall take effect immediately and apply to returns filed on or after June 1, 2021. PART H 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 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 S. 2509 44 A. 3009 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 board 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 board 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 or processors, 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 or processors, in accordance with regulations determined by the board. 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. 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, through a retail outlet, as 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 S. 2509 45 A. 3009 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. 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 or additional designated caregivers as may be approved by the office. 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; that registers with the office of cannabis management to assist one or more certified patients with the acquisi- tion, 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 product" means any hemp and any product proc- essed or derived from hemp, that is used for human consumption provided S. 2509 46 A. 3009 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 total THC per quantity of cannabinoid hemp product as determined by the board 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, a measure of total THC, 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- mum, a two-hour course as determined by the board in regulation; provided however, the executive director may revoke a practitioner'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 cannabinoid hemp, or such other related processes as determined by the executive director. 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. S. 2509 47 A. 3009 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. "THC" means Delta-9-tetrahydrocannabinol; Delta-8-tetrahydrocanna- binol and the optical isomers of such substances. 47. "Total THC" means the sum of the percentage by weight of tetrahy- drocannabinolic acid multiplied by 0.877 plus the percentage by weight of THC. 48. "Wholesale sale" or "sale at wholesale" means a sale to any person for purposes of resale. 49. "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. 50. "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. S. 2509 48 A. 3009 17. Ethics, transparency and accountability. 18. Public health and education 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 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. The chairperson shall also be designated as the exec- utive director of the office of cannabis management. 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 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. A statement of the cause for their removal shall be filed by the governor in the office of the secretary of state. 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 S. 2509 49 A. 3009 the governor may appoint a member of the board to serve as chairperson for the remainder of their term without consultation with the Senate and the Assembly. 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 its executive director. The executive director shall receive an annual salary within the amounts appropriated therefor. § 11. Functions, powers and duties of the office and executive direc- tor. The office of cannabis management, by and through its executive director, shall have the following powers and duties: 1. To issue or refuse to issue any registration, license or permit provided for in this chapter. 2. To limit the number, scope, and/or availability of registrations, licenses and permits of each class to be issued within any political or geographic subdivision of the state, and in connection therewith to prohibit the acceptance of applications for such classes which have been so limited, as set out in regulation and approved by the board. 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 regulation the standards and requirements for the culti- vation, 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 S. 2509 50 A. 3009 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, as set out in regulation and approved by the board. 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. To delegate the powers provided in this section to such other offi- cers or employees or other state agencies as may be deemed appropriate by the executive director, provided however, that any duty delegated to the executive director by the board shall not be further delegated with- out approval by the board. 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. 16. To coordinate across state agencies and departments in order to research and study any changes in cannabis use and the impact that S. 2509 51 A. 3009 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) 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, and cannabinoid hemp; conditions of sanitation, standards of ingredients, quality, and identity of adult-use cannabis and medical cannabis products cultivated, processed, 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 office; 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 and inversion of adult-use cannabis and medical cannabis from this state to other states and from other states into this state insofar as cannabis remains federally prohibited; (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; S. 2509 52 A. 3009 (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 insofar as cannabis remains federally prohibited; (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 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 (m) 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. 5. The board shall have the authority to promulgate regulations governing the appropriate use and licensure of the manufacturing of cannabinoids, or other compounds contained within the cannabis plant, through any method other than planting, growing, cloning, harvesting, or other traditional means of plant agriculture. § 13. Deputies; employees. 1. The executive director shall appoint a deputy director for health and safety who shall be a licensed health care practitioner within the state and who shall oversee all clinical aspects of the office. The executive director shall also appoint a depu- ty director for social and economic equity who shall oversee the social and economic equity plan. The executive director 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 S. 2509 53 A. 3009 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 scale 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-ii 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, or by both. 2. Any person who violates, disobeys or disregards any term or provision of this chapter or of any lawful notice, order or regulation pursuant thereto for which a civil penalty is not otherwise expressly prescribed by law, shall be liable to the people of the state for a civil penalty of not to exceed five thousand dollars 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 be requested by the attorney general for the prosecution of such an action. S. 2509 54 A. 3009 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. Except as authorized by the board no member of the office or any officer, deputy, assistant, inspector or employee thereof shall have any interest, direct or indi- rect, either proprietary or by means of any loan, mortgage or lien, or in any other manner, in or on any premises registered, licensed or permitted under this chapter; nor shall they have any interest, direct or indirect, in any business wholly or substantially devoted to the cultivation, processing, distribution, sale, transportation, marketing, testing, or storage of adult-use cannabis, medical cannabis or cannabi- noid hemp, or own any stock in any corporation which has any interest, proprietary or otherwise, direct or indirect, in any premises where adult-use cannabis, 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, transporta- tion or storage of adult-use cannabis, medical cannabis or cannabinoid S. 2509 55 A. 3009 hemp, or receive any commission or profit whatsoever, direct or indi- rect, 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 and education campaign. The office, in consulta- tion with the commissioners of the department of health, office of addiction services and supports, and office of mental health, shall develop and implement a comprehensive public health monitoring, surveil- lance and education campaign regarding the legalization of adult-use cannabis and the impact of cannabis use on public health and safety. The public health and education campaign shall also include general education to the public about the cannabis law. § 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. The office shall engage in activities with other states, territories, or jurisdictions in order to coordinate and establish, uniform policies and best practices in cannabis regulation. These activities shall prioritize coordination with neighboring and regional states, and may include, but not be limit- ed to establish working groups related to laboratory testing, products safety, taxation, road safety, compliance and adherence with federal policies which promote or facilitate cannabis research, commerce and/or regulation, and any other issues identified by the executive director. The executive director may enter into any contracts, or memoranda 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. Intentionally omitted. 42. Relation to other laws. 43. Protections for the medical use of cannabis. 44. Regulations. 45. Suspend; terminate. 46. Pricing. S. 2509 56 A. 3009 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. 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 S. 2509 57 A. 3009 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 board shall make regulations to implement this subdivision. 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 board in regulation; (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 board under para- graph (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 or limitation issued by the executive director or regulation issued by the board; and (e) the medical cannabis shall be kept in the original package in which it was dispensed under this article, except for the portion removed for immediate consumption for certified medical use by the certified patient. § 32. Registry identification cards. 1. Upon approval of the certif- ication, the office shall issue registry identification cards for certi- fied patients and designated caregivers. A registry identification card shall expire as provided in this article or as otherwise provided in this section. The office shall begin issuing registry identification cards as soon as practicable after the certifications required by this chapter are granted. The office may specify a form for a registry appli- cation, in which case the office shall provide the form on request, reproductions of the form may be used, and the form shall be available for downloading from the office's website. S. 2509 58 A. 3009 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. 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 additional designating patients are immediate family members, in the S. 2509 59 A. 3009 immediate and continuous care of the caregiver, or satisfy other eligi- bility requirements determined by the board 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; provided, however, that if the office requires certified patients to submit photographs for this purpose, there shall be a reasonable accommodation 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 identification number, to the certified patient or designated caregiver, as the case may be. S. 2509 60 A. 3009 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 and any other information necessary to protect patients' rights to medical cannabis by confirming compliance with this article. 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 board in regulation. 2. The acquiring, possession, manufacture, testing, sale, delivery, transporting, distributing, or dispensing of medical cannabis by a registered organization under this article in accordance with its regis- tration 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 S. 2509 61 A. 3009 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 only sell, deliver, distribute, or dispense medical cannabis to a certified patient or designated care- giver upon presentation to the registered organization of valid iden- tification for that certified patient or designated caregiver. When presented with the registry identification card, the registered organ- ization shall provide to the certified patient or designated caregiver a receipt, which shall state: the name, address, and registry identifica- tion number of the registered organization; the name and registry iden- tification number of the certified patient and the designated caregiver, if any; the date the cannabis was sold; any recommendation 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 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 board. (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 board in regulation; and (ii) shall verify the information in subparagraph (i) of this para- graph by consulting the prescription monitoring program registry under this article. (c) Medical cannabis dispensed to a certified patient or designated caregiver by a registered organization shall conform to any recommenda- tion or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient, and any medical cannabis product or form limitations or restrictions determined by the executive director. 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 that this subdivision only applies to (a) managers or employees who come into contact with or handle medical cannabis, and (b) a conviction less S. 2509 62 A. 3009 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 a secure facility located in New York state, which may include a greenhouse. The board shall promulgate regulations estab- lishing requirements for such facilities. 9. Dispensing of medical cannabis by a registered organization shall only be done in an indoor, enclosed, secure facility located in New York state. The board 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 title 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- 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; S. 2509 63 A. 3009 (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 is applying to engage in 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 obtain 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 executive director may grant a registration, approve one or more activities permitted under a registration, or grant a requested amendment to a registration under this section if they are 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: S. 2509 64 A. 3009 (A) whether the number of registered organizations in an area will be adequate or excessive to reasonably serve the state or 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/or 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 board 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: S. 2509 65 A. 3009 (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 the cultivation, manufacture, distribution or sale of adult-use cannabis or medical cannabis. (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 obtain 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 renew a registration unless he or she determines and finds that: (i) the applicant is unlikely to maintain or be able to maintain effective control against diversion; (ii) the applicant is unlikely to comply with all state laws 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 state or 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 obtain 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 S. 2509 66 A. 3009 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 board. § 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 article. 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 article. 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 article 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/or 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 S. 2509 67 A. 3009 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 subdivision 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, or concentrated cannabis a licensee may have on its premises; (f) licensee reporting requirements; (g) conditions under which cannabis grown by licensed or registered cannabis producers 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 unless otherwise permitted under federal law, and the holder thereof may not allow any other person to use the license. 7. The application and license fees for a cannabis research license shall be determined by the executive director on an annual basis and may be based on the size, scope and duration of the research proposed. 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 board shall have the authority to hold a competitive bidding process, includ- ing, in its discretion the ability to set price by an auction, to deter- mine the registered organization(s) authorized to be licensed to culti- vate, process, distribute and/or sell adult-use cannabis and to collect the fees generated from such auction to administer the office's social and economic equity plan and other duties prescribed by this chapter, and notwithstanding the prohibitions in article four of this chapter the board may permit such bidders to continue to participate in adult-use cannabis as a vertically integrated entity if such competitive process permits. S. 2509 68 A. 3009 2. 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. 3. 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 board. § 41. Intentionally omitted. § 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 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 S. 2509 69 A. 3009 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. The executive director may require the sale of medical cannabis to be at or below an approved price established by the executive director. Every charge made or demanded for medical cannabis not in accordance with an approved price, is prohibited. 2. 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. Awarding of licenses. 62. Information to be requested in response to the request for proposals. 63. Fees. 64. Approval and selection criteria. 65. Limitations of licensure; duration. 66. License renewal. 67. Amendments; changes in ownership and organizational struc- ture. 68. Adult-use cultivator license. 69. Adult-use processor license. 70. Adult-use cooperative license. 71. Adult-use distributor license. 72. Adult-use retail dispensary license. 73. Intentionally omitted. 74. Intentionally omitted. 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. S. 2509 70 A. 3009 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; and 6. Any other type of license as prescribed by the executive director in regulation. § 61. Awarding of licenses. 1. The board shall issue a request for proposals for licenses authorized pursuant to this section, and may award as many licenses in such classes as the board sets out in such request. 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 award shall not be denied for 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 response to the request for proposals. 1. The office shall have the authority to prescribe the manner and form in which a response must be submitted to the office. Such information may include, but is not limited to: information about the applicant's identity, including racial and ethnic diversity; owner- ship and investment information, including the corporate structure; evidence of good moral character, including the submission of finger- prints by the applicant to the division of criminal justice services; information about the premises to be licensed; financial statements; and any other information prescribed in regulation. 2. All responses shall be signed by the applicant (if an individual), by a managing partner (if a limited liability corporation), by an offi- cer (if a corporation), or by all partners (if a partnership). Each person signing such response shall verify it or affirm it as true under the penalties of perjury. 3. All responses 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 response or the award 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 veri- fied, shall be submitted to the office at least thirty days 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 response and in any supple- mental statement or request connected therewith, and such information S. 2509 71 A. 3009 may be presumed to be correct, and shall be binding upon a registered organization, licensee or licensed premises as if correct. All informa- tion required to be furnished in such response, 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 proposer or proposers. 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 proposers under this article a non-refundable application fee and/or to auction licenses to bidders determined by the office to be qualified for such licensure based on the selection criteria in section sixty-four of this article. Such fee may be based on the type of licensure sought, culti- vation 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. 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 a propo- ser shall be awarded a license 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 proposer will be able to maintain effective control against the illegal diversion or inversion of cannabis; (b) the proposer will be able to comply with all applicable state laws and regulations; (c) the proposer 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 proposer 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; S. 2509 72 A. 3009 (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 proposer and its managing officers are of good moral character and do not have an ownership or controlling interest in more licenses, registrations, permits, or the scope of activity allowed by this chap- ter, or any regulations promulgated hereunder; (g) the proposer has entered into a labor peace agreement with a bona- fide labor organization that is actively engaged in representing or attempting to represent the proposer's employees, and the maintenance of such a labor peace agreement shall be an ongoing material condition of licensure. (h) the proposer 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 response is for an adult-use cultivator license, the envi- ronmental impact of the facility to be licensed; and (j) the proposer satisfies any other conditions as determined by the executive director. 2. If the executive director is not satisfied that the proposer is eligible to be approved, or subsequently should be issued a license, the executive director shall notify the proposer in writing of the specific reason or reasons for denial. § 65. Limitations of licensure; duration. 1. No license of any kind may be issued to a person under the age of twenty-one years, nor shall any licensee employ anyone under the age of eighteen years. 2. No person shall sell, or give away or cause or permit or procure to be sold, or given away any cannabis to any person, actually or apparent- ly, under the age of twenty-one years, or any visibly intoxicated person. 3. No licensee, registrant or permittee shall knowingly sell, or give away or cause or permit or procure to be sold, or given away to a lawful cannabis consumer any amount of cannabis which would cause the lawful cannabis consumer to be in violation of the possession limits estab- lished by this chapter, or their equivalent as determined by the execu- tive director. 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 S. 2509 73 A. 3009 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 (e) such other information as the executive director shall deem neces- sary to assure compliance with this chapter. 2. Upon application to the office, a response to a request for proposals 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 applicant or licensee, upon approval by the executive director. The fee for such amendment shall be determined by the execu- tive director. 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 specify the process for amendment requests and allowing for certain types of changes in ownership without the need for prior written approval. 4. For purposes of this section, "substantial corporate change" shall mean: (a) for a corporation, a change of 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. S. 2509 74 A. 3009 § 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, not more than 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. 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 pursuant to criteria established by the board in regulation. 6. The executive director shall have the authority to issue microbusi- ness licenses, allowing microbusiness licensees to cultivate, process, distribute and retail adult-use cannabis direct to licensed cannabis retailers and consumers, under a single license. The board may estab- lish through regulation microbusiness license eligibility criteria and production limits of total cannabis cultivated, processed and/or distributed annually for microbusiness 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 or 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 a person issued an adult-use cannabis culti- vator, processor, and/or distributor license may hold and operate all issued licenses on the same premises. 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. S. 2509 75 A. 3009 § 70. Adult-use cooperative license. 1. A cooperative license shall authorize the acquisition, possession, cultivation, processing or 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 board; (b) subordinate capital, both as regards control over the cooperative undertaking, and as regards the ownership of the pecuniary benefits arising therefrom; (c) be democratically controlled by the members themselves on the basis of one vote per member; (d) vest in and allocate with priority to and among the members of all increases arising from their cooperative endeavor in proportion to the members' active participation in the cooperative endeavor; and (e) operate according to the seven cooperative principles published by the International Cooperative Alliance in nineteen 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. § 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, or any other person licensed, registered or permitted by the office to sell or transfer cannabis to or within the state, to duly licensed retail dispensaries. 2. No distributor shall have a direct or indirect economic interest in any microbusiness or 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 cultivated 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 the board in regulation. S. 2509 76 A. 3009 § 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, 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 licensee shall locate a storefront within five hundred feet of a building occupied exclusively as a school. § 73. Intentionally omitted. § 74. Intentionally omitted. § 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 but not limited to financial statements and corporate documents, shall be subject to inspection by the office, by the duly authorized represen- tatives 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 accommodations so that ordinary business is not interrupted and safety and security procedures are not compromised by the inspection. A person who holds a license or permit must make himself or herself, or an agent thereof, available and present for any inspection required by the office. Such inspection may include, but is not limited to, ensuring compliance by the licensee or permittee with all of the requirements of this article, the regulations promulgated pursuant ther- eto, and other applicable building codes, fire, health, safety, and governmental regulations, 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, microbusiness, 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. S. 2509 77 A. 3009 (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 or promote 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. 2. The provisions of this section shall not prohibit a microbusiness, or 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 microbusiness or registered organization, subject to any condi- tions, 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 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 products, active cannabis concentration per serving size, and number of servings per container. Such regulations may also require a nutri- tional fact panel that incorporates data regarding serving 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 administration associated with specific product types, and any other criteria identified by the office for consideration to protect public health and safety. 6. Such regulations shall also require product labels to accurately display the total THC of each product. 7. The packaging, sale, labeling, marketing, branding, advertising or possession by any licensee of any cannabis product not labeled or S. 2509 78 A. 3009 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 executive director may assign an approved testing laborato- ry, which the processor of adult-use cannabis must use, and may estab- lish 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 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, or a cannabinoid hemp processor license pursuant to article five 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 regulations 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. S. 2509 79 A. 3009 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, may offer any incen- tive, payment or other benefit to a licensed cannabis retail dispensary in return for carrying the cultivator, processor, cooperative or micro- business's products, or preferential shelf placement. 7. All cannabis products shall be processed in accordance with good manufacturing practices 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 permitted by 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 and the total THC content of purchased cannabis products as reflected on the product labels, 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 and the total THC content of cannabis products sold as reflected on the final product labels, with the names, addresses, and license numbers of such purchasers and any other informa- tion required in regulation. Each sale shall be recorded separately on a numbered invoice, which shall have printed thereon the number, the name of the licensee, the address of the licensed premises, and the current license number and any other information required in regulation. Such distributor shall deliver to the purchaser a true duplicate invoice S. 2509 80 A. 3009 stating the name and address of the purchaser, the quantity of cannabis products, the total THC content of purchased cannabis products as reflected on the product labels, 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, customer loyalty program or other consideration 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 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 or given away any cannabis to any person, actually or apparently, under the age of twenty-one years or any visibly intoxi- cated 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. 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 S. 2509 81 A. 3009 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. All adult-use dispensing facilities shall make educational materi- als and resources available to cannabis consumers at the point of sale, as prescribed by the office, encouraging such cannabis consumers to seek the help of a state licensed facility or program for the treatment of cannabis use disorder. 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. § 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 regulations 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 S. 2509 82 A. 3009 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 regulations 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 regulations requiring that: (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 in submission and review for adult-use cannabis licenses; (ii) priority in specific classes or categories of adult-use cannabis licenses and licensed activities, geographic areas or license location; (iii) reduced or deferred fees for adult-use cannabis applications and/or licenses; S. 2509 83 A. 3009 (iv) access to low or zero interest small business loans for entry into the adult-use cannabis market; (v) access to incubator programs pairing qualified and eligible social and economic equity applicants with support in the form of counseling services, education, small business development, and compliance assist- ance; (vi) access to cannabis workforce development and hiring initiatives which incentivize hiring of qualified social and economic equity staff members; and (vii) 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 board through regu- lations, provided sufficient funds are available. 4. For the purposes of this section, the following definitions shall apply: (a) A minority-owned business, minority group member, and women-owned business shall have the same meaning as defined in section three hundred ten of the executive law. (b) 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. (c) "Disadvantaged farmer" shall mean a New York state resident or business enterprise, including a sole proprietorship, partnership, limited liability company or corporation, that has reported at least two-thirds of its federal gross income as income from farming, in at least one of the 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 board. (d) "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 board 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 S. 2509 84 A. 3009 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. § 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 product" 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 total THC concentration which exceeds an amount determined by the board in regulation. 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. S. 2509 85 A. 3009 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 total THC concentration of not more than an amount determined by the board in regulation. For the purpose of this article, hemp extract excludes (a) any food, food ingredient or food additive that is general- ly 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 regu- lations. 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: 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 S. 2509 86 A. 3009 intermediate or final form, shall be required to obtain a cannabinoid hemp processor license from the office. 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. The board shall make rules and regulations 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. § 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. The board shall 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 S. 2509 87 A. 3009 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. 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: S. 2509 88 A. 3009 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- 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 board may adopt. 2. The board may, by rules and regulations, require processors to establish a code, including, but not limited to QR code, for labels and S. 2509 89 A. 3009 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. 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- S. 2509 90 A. 3009 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 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 and to establish the periods during which such permits are valid. The board shall 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. S. 2509 91 A. 3009 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 manufacturing, 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 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. S. 2509 92 A. 3009 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 or board. 8. The proper conduct of registered, licensed, or permitted premises is essential to the public interest. Failure of a registered organiza- tion, licensee, or permittee to exercise adequate supervision over the registered, licensed, or permitted location poses a substantial risk not only to the objectives of this chapter but imperils the health, safety, and welfare of the people of this state. It shall be the obligation of each person registered, licensed, or permitted under this chapter to ensure that a high degree of supervision is exercised over any and all conduct at any registered, licensed, or permitted location at any and all times in order to safeguard against abuses of the privilege of being registered, licensed, or permitted, as well as other violations of law, statute, rule, or regulation. Persons registered, licensed, or permitted shall be held strictly accountable for any and all violations that occur upon any registered, licensed, or permitted premises, and for any and all violations committed by or permitted by any manager, agent or employee of such registered, licensed, or permitted person. 9. It shall be unlawful for any person, partnership or corporation operating a place for profit or pecuniary gain, with a capacity for the assemblage of twenty or more persons to permit a person or persons to come to the place of assembly for the purpose of cultivating, process- ing, distributing, or retail distribution or sale of cannabis on said premises. This includes, but is not limited, to, cannabis that is either provided by the operator of the place of assembly, his agents, servants or employees, or cannabis that is brought onto said premises by the person or persons assembling at such place, unless an appropriate regis- tration, license, or permit has first been obtained from the office of cannabis management by the operator of said place of assembly. 10. As it is a privilege under the law to be registered, licensed, or permitted to cultivate, process, distribute, traffic, or sell cannabis, the office may impose any such further restrictions upon any registrant, licensee, or permittee in particular instances as it deems necessary to further state policy and best serve the public interest. A violation or failure of any person registered, licensed, or permitted to comply with any condition, stipulation, or agreement, upon which any registration, license, or permit was issued or renewed by the office shall subject the registrant, licensee, or permittee to suspension, cancellation, revoca- tion, and/or civil penalties as determined by the office. 11. No adult-use cannabis or medical cannabis may be imported to, or exported out of, New York state by a registered organization, licensee or person holding a license and/or permit pursuant to this chapter, until such time as it may become legal to do so under federal law and the board has promulgated regulations for the minimum requirements of such activities. Should it become legal to do so under federal law, the board shall have the authority to promulgate rules and regulations 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. The office may establish regulations to enforce this subdivision. This subdivision shall not prohibit the delivery by a registered organization to certi- S. 2509 93 A. 3009 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 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 S. 2509 94 A. 3009 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 registered, licensed or permitted pursuant to this chapter and 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 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. S. 2509 95 A. 3009 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 recognizance, non-monetary conditions, or bail prior to being convicted, shall not be punished or otherwise penalized for conduct allowed under this chapter unless the terms and conditions of said parole, probation, or state supervision explicitly prohibit a person's cannabis use or any other conduct otherwise allowed under this chapter. A person's use of cannabis or conduct under this chapter shall not be prohibited unless it has been shown by clear and convincing evidence that the prohibition is reasonably related to the underlying crime. Nothing in this provision shall restrict the rights of a certi- fied medical patient. § 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, license or permit shall be pledged or deposited as collateral security for any loan or upon any other condition; and any such pledge or deposit, and any contract providing therefor, shall be void. S. 2509 96 A. 3009 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, which may include a permit fee and must demonstrate the follow- ing 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 as authorized in regulation; 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. 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 establishing minimum operating and testing requirements, and 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. S. 2509 97 A. 3009 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. 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 cannabinoid hemp 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. Temporary retail cannabis permit - to authorize the retail sale of adult-use cannabis to cannabis consumers, for a limited purpose or dura- tion. 8. 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. 9. 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. 10. 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 on or before December thirty-first, two thousand twenty-one, adopts a local law, ordinance or resolution by a majority vote of its governing body, to completely prohibit the estab- lishment of one or more types of licenses contained in article four of this chapter, within the jurisdiction of such county or city. Any coun- ty law, ordinance or resolution passed by a county pursuant to this S. 2509 98 A. 3009 subdivision shall not apply to a city that has a population of one hundred thousand or more residents and that is geographically located within the county unless such a prohibition is also adopted by a majori- ty vote of the city's governing body. No law, ordinance or resolution may be adopted after January first, two thousand twenty-two, completely prohibiting the establishment of one or more types of licenses contained in article four of this chapter. 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, licensee or permittee to enter into a community host agree- ment 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 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. S. 2509 99 A. 3009 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 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. S. 2509 100 A. 3009 (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 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 board. 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 (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 S. 2509 101 A. 3009 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 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. S. 2509 102 A. 3009 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 board 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 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- S. 2509 103 A. 3009 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 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 S. 2509 104 A. 3009 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 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 S. 2509 105 A. 3009 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- 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, 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 21 as S. 2509 106 A. 3009 amended by chapter 1 of the laws of 2020, subdivision 31 as amended by section 4 of part A of chapter 58 of the laws of 2004, subdivision 41 as added by section 6 of part A of chapter 447 of the laws of 2012, and subdivisions 42 and 43 as added by section 13 of part D of chapter 60 of the laws of 2014, is amended to read as follows: § 3302. Definitions of terms of general use in this article. Except where different meanings are expressly specified in subsequent provisions of this article, the following terms have the following mean- ings: 1. "Addict" means a person who habitually uses a controlled substance for a non-legitimate or unlawful use, and who by reason of such use is dependent thereon. 2. "Administer" means the direct application of a controlled substance, whether by injection, inhalation, ingestion, or any other means, to the body of a patient or research subject. 3. "Agent" means an authorized person who acts on behalf of or at the direction of a manufacturer, distributor, or dispenser. No person may be authorized to so act if under title VIII of the education law such person would not be permitted to engage in such conduct. It does not include a common or contract carrier, public warehouseman, or employee of the carrier or warehouseman when acting in the usual and lawful course of the carrier's or warehouseman's business. 4. ["Concentrated Cannabis" means (a) the separated resin, whether crude or purified, obtained from a plant of the genus Cannabis; or (b) a material, preparation, mixture, compound or other substance which contains more than two and one-half percent by weight of delta-9 tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran numbering system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono- terpene numbering system. 5.] "Controlled substance" means a substance or substances listed in section thirty-three hundred six of this [chapter] TITLE. [6.] 5. "Commissioner" means commissioner of health of the state of New York. [7.] 6. "Deliver" or "delivery" means the actual, constructive or attempted transfer from one person to another of a controlled substance, whether or not there is an agency relationship. [8.] 7. "Department" means the department of health of the state of New York. [9.] 8. "Dispense" means to deliver a controlled substance to an ulti- mate user or research subject by lawful means, including by means of the internet, and includes the packaging, labeling, or compounding necessary to prepare the substance for such delivery. [10.] 9. "Distribute" means to deliver a controlled substance, includ- ing by means of the internet, other than by administering or dispensing. [11.] 10. "Distributor" means a person who distributes a controlled substance. [12.] 11. "Diversion" means manufacture, possession, delivery or use of a controlled substance by a person or in a manner not specifically authorized by law. [13.] 12. "Drug" means (a) substances recognized as drugs in the official United States Phar- macopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, or any supplement to any of them; (b) substances intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or animals; and S. 2509 107 A. 3009 (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, mixture, or preparation of the plant, its seeds or resin. The term "marihuana" shall not include: (a) 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; (b) hemp, as defined in subdivision one of section five hundred five of the agriculture and markets law; (c) cannabinoid hemp as defined in subdivision two of section thirty- three hundred ninety-eight of this chapter; or S. 2509 108 A. 3009 (d) hemp extract as defined in subdivision five of section thirty- three hundred ninety-eight of this chapter. 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 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. S. 2509 109 A. 3009 [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. 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. S. 2509 110 A. 3009 § 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). [(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. S. 2509 111 A. 3009 [(28)] (27) 1-{1- (2-thienyl) cyclohexyl} pyrrolidine. Some other names: TCPY. [(29)] (28) Alpha-ethyltryptamine. Some trade or other names: etryp- tamine; Monase; Alpha-ethyl-1H-indole-3-ethanamine; 3- (2-aminobutyl) indole; Alpha-ET or AET. [(30)] (29) 2,5-dimethoxy-4-ethylamphetamine. Some trade or other names: DOET. [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade or other names: 2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane; alpha-desmethyl DOB; 2C-B, Nexus. [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its optical isomers, salts and salts of isomers. § 6. Title 5-A of article 33 of the public health law is REPEALED. § 6-a. Article 33-B of the public health law is REPEALED. § 7. Section 3382 of the public health law, as added by chapter 878 of the laws of 1972, is amended to read as follows: § 3382. Growing of the plant known as Cannabis by unlicensed persons. A person who, without being licensed so to do under this article OR ARTICLES THREE, FOUR OR FIVE OF THE CANNABIS LAW, grows the plant of the genus Cannabis or knowingly allows it to grow on his land without destroying the same, shall be guilty of a class A misdemeanor. § 8. Subdivision 1 of section 3397-b of the public health law, as added by chapter 810 of the laws of 1980, is amended to read as follows: 1. ["Marijuana"] "CANNABIS" means [marijuana] CANNABIS as defined in [section thirty-three hundred two of this chapter] SUBDIVISION THREE OF SECTION THREE OF THE CANNABIS LAW and shall also include tetrahydrocan- nabinols or a chemical derivative of tetrahydrocannabinol. § 9. Subdivisions 5, 6 and 9 of section 220.00 of the penal law, subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision 6 as amended by chapter 1051 of the laws of 1973 and subdivision 9 as amended by chapter 664 of the laws of 1985, are amended and a new subdi- vision 21 is added to read as follows: 5. "Controlled substance" means any substance listed in schedule I, II, III, IV or V of section thirty-three hundred six of the public health law other than [marihuana] CANNABIS AS DEFINED IN SUBDIVISION SIX OF THIS SECTION, but including concentrated cannabis as defined in [paragraph (a) of subdivision four of section thirty-three hundred two of such law] SUBDIVISION TWENTY-ONE OF THIS SECTION. 6. ["Marihuana"] "CANNABIS" means ["marihuana" or "concentrated canna- bis" as those terms are defined in section thirty-three hundred two of the public health law] ALL PARTS OF THE PLANT OF THE GENUS CANNABIS, WHETHER GROWING OR NOT; THE SEEDS THEREOF; AND EVERY COMPOUND, MANUFAC- TURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE PLANT, OR ITS SEEDS. IT DOES NOT INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS, OIL OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARA- TION OF THE MATURE STALKS, FIBER, OIL, OR CAKE, OR THE STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES NOT INCLUDE ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNABINOL (THC). CANNABIS DOES NOT INCLUDE ANY DRUG PRODUCT FOR WHICH AN APPLICATION HAS BEEN APPROVED BY THE FEDERAL FOOD AND DRUG ADMINISTRATION. 9. "Hallucinogen" means any controlled substance listed in schedule I(d) (5), [(18), (19), (20), (21) and (22)] (17), (18), (19), (20) AND (21). S. 2509 112 A. 3009 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. Subdivision 4 of section 15.20 of the penal law, as added by chapter 75 of the laws of 1995, is amended to read as follows: 4. Notwithstanding the use of the term "knowingly" in any provision of this chapter defining an offense in which the aggregate weight of a controlled substance or [marihuana] CANNABIS is an element, knowledge by the defendant of the aggregate weight of such controlled substance or [marihuana] CANNABIS is not an element of any such offense and it is not, unless expressly so provided, a defense to a prosecution therefor that the defendant did not know the aggregate weight of the controlled substance or [marihuana] CANNABIS. § 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 S. 2509 113 A. 3009 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 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 S. 2509 114 A. 3009 OFFENSES COMMITTED DURING SUCH PERIOD. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO CERTIFIED PATIENTS OR DESIGNATED CAREGIVERS AS LAWFULLY REGISTERED UNDER ARTICLE THREE OF THE CANNABIS LAW. § 19. Section 221.25 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.25 Criminal possession of [marihuana] CANNABIS in the [second] FIRST degree. A person is guilty of criminal possession of [marihuana] CANNABIS in the [second] FIRST degree when he OR SHE knowingly and unlawfully possesses [one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of] an aggregate weight of more than [sixteen] SIXTY-FOUR ounces OF CANNABIS OR MORE THAN EIGHTY GRAMS OF CONCENTRATED CANNABIS. Criminal possession of [marihuana] CANNABIS in the [second] FIRST degree is a class [D] E felony. § 20. Sections 221.10 and 221.30 of the penal law are REPEALED. § 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 S. 2509 115 A. 3009 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 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 (c) 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. S. 2509 116 A. 3009 § 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 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. § 20-f. Subparagraph (iii) of paragraph (k) of subdivision 3 of section 160.50 of the criminal procedure law, as amended by chapter 132 of the laws of 2019, is amended to read as follows: (iii) the conviction is for an offense defined in section 221.05 [or], 221.10 OR 221.15 of the penal law. § 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] S. 2509 117 A. 3009 FOR consideration[, one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are] CANNABIS OR CANNABIS CONCENTRATE of [an aggregate weight of two grams or less; or one cigarette containing mari- huana] ANY WEIGHT. Criminal sale of [marihuana] CANNABIS in the fifth degree is a [class B misdemeanor] VIOLATION PUNISHABLE BY A FINE NOT MORE THAN THE GREATER OF TWO-HUNDRED AND FIFTY DOLLARS OR TWO TIMES THE VALUE OF THE SALE. § 22. Section 221.40 of the penal law, as added by chapter 360 of the laws of 1977, is amended to read as follows: § 221.40 Criminal sale of [marihuana] CANNABIS in the fourth degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the fourth degree when he OR SHE knowingly and unlawfully sells [marihuana except as provided in section 221.35 of this article] CANNABIS OF AN 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 S. 2509 118 A. 3009 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 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- S. 2509 119 A. 3009 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 is amended by adding a new subparagraph (i-a) to read as follows: (I-A) A VIOLATION OF SUBDIVISION FOUR-A OF SECTION ELEVEN HUNDRED NINETY-TWO OF THIS ARTICLE SHALL BE A CLASS E FELONY, AND SHALL BE PUNISHABLE BY A FINE OF NOT LESS THAN ONE THOUSAND DOLLARS NOR MORE THAN FIVE THOUSAND DOLLARS OR BY A PERIOD OF IMPRISONMENT AS PROVIDED IN THE PENAL LAW, OR BY BOTH SUCH FINE AND IMPRISONMENT. § 33-a. 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 TEST to be admin- istered by the police officer. If such test indicates that such opera- tor has consumed alcohol OR DRUG OR DRUGS, the police officer may request such operator to submit to a chemical test AND/OR AN EVALUATION CONDUCTED BY A DRUG RECOGNITION EXPERT in the manner set forth in subdi- vision two of this section. 2. Chemical tests AND DRUG RECOGNITION EVALUATIONS. (a) When author- ized. Any person who operates a motor vehicle in this state shall be deemed to have given consent to AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT AND/OR a chemical test of one or more of the following: breath, blood, urine, or saliva, for the purpose of determin- ing 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 officer: (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, S. 2509 120 A. 3009 (2) within two hours after a breath test, as provided in paragraph (b) of subdivision one of this section, indicates that alcohol has been consumed by such person and in accordance 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 of this article shall be determined by viewing the totality of circum- stances 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 alco- hol consumption by the operator, the existence of an open container containing or having contained an alcoholic beverage in or around the vehicle driven by the operator, 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 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 AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT is authorized pursuant to this paragraph may be temporarily detained by the police solely for the purpose of requesting or administering such chemi- cal test AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT whenever arrest without a warrant for a petty offense would be authorized 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, BLOOD, URINE, AND/OR ORAL/BODILY FLUID test indicates the presence of alcohol AND/OR DRUG OR DRUGS in the person's system; or (C) with regard to a person under the age of twen- ty-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 AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT and having been informed that the person's license or permit to drive and any non-resident operating privilege shall be imme- diately 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, AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT OR ANY PORTION THEREOF, 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 there- of, AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT 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 imme- diately made by the police officer before whom such refusal was made. Such report may be verified by having the report sworn to, or by affix- ing to such report a form notice that false statements made therein are S. 2509 121 A. 3009 punishable 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 OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT OR ANY PORTION THEREOF, and that no chemical test OR EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT was administered pursuant to the requirements 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 subdi- vision, 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 subse- quent proceedings with regard to refusal to submit to such chemical test AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT 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) did the police officer make a lawful arrest of such person; (3) was such S. 2509 122 A. 3009 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 AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT, would result in the immediate suspension and subsequent revocation of such person's license or operat- ing 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 chemical test or any portion thereof AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT. If, after such hearing, the hearing officer, acting on behalf of the commis- sioner, 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 hearing, 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 operating 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 consti- tute 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 AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT, 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 find- ing 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 has a prior finding, conviction or youthful offender adjudication resulting from a violation of section eleven hundred ninety-two or S. 2509 123 A. 3009 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 AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT, 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 oper- ating a commercial motor vehicle transporting hazardous materials at the time of such refusal. However, such person shall be permanently disqual- ified from operating a commercial motor vehicle in any case where the holder has a prior finding of refusal to submit to a chemical test AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT 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 commissioner 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 OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT 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 OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT pursuant to this section; any violation of subdivision one or two of section six hundred of this chapter; or has a prior conviction of any felony involv- ing 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. (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 S. 2509 124 A. 3009 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 AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT OR ANY PORTION THEREOF pursuant to this section while operating a commer- cial 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 paragraph (a) of subdivision one of section five hundred ten-a of this chapter, 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 pursu- ant 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 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] ORAL/BODILY FLUIDS, for the purpose of determining the alco- holic and/or drug content of the blood OR ORAL/BODILY FLUIDS 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 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 AND/or drug content of the person's blood OR ORAL/BODILY FLUIDS upon a finding of reasonable cause to believe that: S. 2509 125 A. 3009 (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 TEST 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 AND/OR DRUG OR DRUGS 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 AND/or AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT, 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 accord- ance with the 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 S. 2509 126 A. 3009 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/OR ORAL/BODILY FLUIDS ordering the withdrawal of a blood AND/OR ORAL/BODILY FLUID sample in accordance with the provisions of paragraph (a) of subdivision four of this section. When a judge or justice determines 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 appli- cant, 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 AND/OR ORAL/BODILY FLUID must be administered. The provisions of paragraphs (a), (b) and (c) of subdivision four of this section shall be applicable to any chemical 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 BY MEANS OTHER THAN BURNING, or the possession of an open container containing an alcoholic beverage OR CANNABIS by passengers in passenger vehicles oper- S. 2509 127 A. 3009 ated 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 is certified to the comptroller by the commissioner as the amount to be S. 2509 128 A. 3009 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. § 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] S. 2509 129 A. 3009 CANNABIS provided by a registered organization to a certified patient or designated caregiver. Gross receipt is expressed in money, whether paid in cash, credit or property of any kind or nature, and shall be deter- mined without any deduction therefrom on account of the cost of the service sold or the cost of materials, labor or services used or other costs, interest or discount paid, or any other expenses whatsoever. "Amount received" for the purpose of the definition of gross receipt, as the term gross receipt is used throughout this article, means the amount charged for the provision of medical [marihuana] CANNABIS. 2. There is hereby imposed an excise tax on the gross receipts from the sale of medical [marihuana] CANNABIS by a registered organization to a certified patient or designated caregiver, to be paid by the regis- tered organization, at the rate of seven percent. The tax imposed by this article shall be charged against and be paid by the registered organization and shall not be added as a separate charge or line item on any sales slip, invoice, receipt or other statement or memorandum of the price given to the retail customer. 3. The commissioner may make, adopt and amend rules, regulations, procedures and forms necessary for the proper administration of this article. 4. Every registered organization that makes sales of medical [marihua- na] CANNABIS subject to the tax imposed by this article shall, on or before the twentieth date of each month, file with the commissioner a return on forms to be prescribed by the commissioner, showing its receipts from the retail sale of medical [marihuana] CANNABIS during the preceding calendar month and the amount of tax due thereon. Such returns shall contain such further information as the commissioner may require. Every registered organization required to file a return under this section shall, at the time of filing such return, pay to the commission- er the total amount of tax due on its retail sales of medical [marihua- na] CANNABIS for the period covered by such return. If a return is not 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 S. 2509 130 A. 3009 article is either inconsistent with a provision of this article or is not relevant to this article. 7. All taxes, interest and penalties collected or received by the commissioner under this article shall be deposited and disposed of pursuant to the provisions of section one hundred seventy-one-a of this chapter, provided that an amount equal to one hundred percent collected under this article less any amount determined by the commissioner to be reserved by the comptroller for refunds or reimbursements shall be paid by the comptroller to the credit of the medical [marihuana] CANNABIS trust fund established by section eighty-nine-h of the state finance law. 8. A registered organization that dispenses medical [marihuana] CANNA- BIS shall provide to the department information on where the medical [marihuana] CANNABIS was dispensed and where the medical [marihuana] CANNABIS was manufactured. A registered organization that obtains [mari- huana] CANNABIS from another registered organization shall obtain from such registered organization information on where the medical [marihua- na] CANNABIS was manufactured. § 36. Section 491 of the tax law, as added by chapter 90 of the laws of 2014, subdivision 1 as amended by section 1 of part II of chapter 60 of the laws of 2016, is amended to read as follows: § 491. Returns to be secret. 1. Except in accordance with proper judi- cial order or as in this section or otherwise provided by law, it shall be unlawful for the commissioner, any officer or employee of the depart- ment, or any officer or person who, pursuant to this section, is permit- ted to inspect any return or report or to whom a copy, an abstract or a portion of any return or report is furnished, or to whom any information contained in any return or report is furnished, or any person engaged or retained by such department on an independent contract basis or any person who in any manner may acquire knowledge of the contents of a return or report filed pursuant to this article to divulge or make known 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 S. 2509 131 A. 3009 MANAGEMENT; or by or to the attorney general or other legal represen- tatives of the state when an action shall have been recommended or commenced pursuant to this chapter in which such returns or reports or the facts shown thereby are directly involved; or the inspection of the returns or reports required under this article by the comptroller or duly designated officer or employee of the state department of audit and control, for purposes of the audit of a refund of any tax paid by a registered organization or other person under this article; nor to prohibit the delivery to a registered organization, or a duly authorized representative of such registered organization, a certified copy of any return or report filed by such registered organization pursuant to this article, nor to prohibit the publication of statistics so classified as to prevent the identification of particular returns or reports and the items thereof. This section shall also not be construed to prohibit the disclosure, for tax administration purposes, to the division of the budget and the office of the state comptroller, of information aggre- gated from the returns filed by all the registered organizations making sales of, or manufacturing, medical [marihuana] CANNABIS in a specified county, whether the number of such registered organizations is one or more. Provided further that, notwithstanding the provisions of this subdivision, the commissioner may, in his or her discretion, permit the proper officer of any county entitled to receive an allocation, follow- ing appropriation by the legislature, pursuant to this article and section eighty-nine-h of the state finance law, or the authorized repre- sentative of such officer, to inspect any return filed under this arti- cle, or may furnish to such officer or the officer's authorized repre- sentative an abstract of any such return or supply such officer or such representative with information concerning an item contained in any such return, or disclosed by any investigation of tax liability under this article. 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 S. 2509 132 A. 3009 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. 496-C. ILLICIT CANNABIS PENALTY. § 492. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING DEFI- NITIONS SHALL APPLY: (A) "ADULT-USE CANNABIS PRODUCT" OR "ADULT-USE CANNABIS" HAS THE SAME MEANING AS THE TERM IS DEFINED IN SECTION THREE OF THE CANNABIS LAW. FOR PURPOSES OF THIS ARTICLE, UNDER NO CIRCUMSTANCES SHALL ADULT-USE CANNA- BIS PRODUCT INCLUDE MEDICAL CANNABIS OR CANNABINOID HEMP PRODUCT AS DEFINED IN SECTION THREE OF THE CANNABIS LAW. (B) "CANNABIS" MEANS ALL PARTS OF THE 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 CANNABI- NOID HEMP PRODUCT AS DEFINED IN SECTION THREE OF THE CANNABIS LAW. (C) "CANNABIS EDIBLE PRODUCT" MEANS A PRODUCT, CONTAINING EITHER CANNABIS OR CONCENTRATED CANNABIS AND OTHER INGREDIENTS, INTENDED FOR USE OR CONSUMPTION THROUGH INGESTION, INCLUDING SUBLINGUAL OR ORAL ABSORPTION. (D) "CANNABIS FLOWER" MEANS THE FLOWER OF A PLANT OF THE GENUS CANNA- BIS THAT HAS BEEN HARVESTED, DRIED AND CURED BUT HAS NOT UNDERGONE ANY PROCESSING WHEREBY THE PLANT MATERIAL IS TRANSFORMED INTO A CONCENTRATE, INCLUDING, BUT NOT LIMITED TO, CONCENTRATED CANNABIS, OR INTO AN EDIBLE OR TOPICAL PRODUCT CONTAINING CANNABIS OR CONCENTRATED CANNABIS AND OTHER INGREDIENTS. CANNABIS FLOWER EXCLUDES LEAVES AND STEM. (E) "CONCENTRATED CANNABIS" HAS THE SAME MEANING AS THE TERM IS DEFINED IN SECTION THREE OF THE CANNABIS LAW. (F) "DISTRIBUTOR" HAS THE SAME MEANING AS THE TERM IS DEFINED IN SECTION THREE OF THE CANNABIS LAW. (G) "ILLICIT CANNABIS" MEANS AND INCLUDES CANNABIS FLOWER, CONCEN- TRATED CANNABIS, CANNABIS EDIBLE PRODUCT AND CANNABIS PLANT ON WHICH ANY TAX REQUIRED TO HAVE BEEN PAID UNDER THIS CHAPTER HAS NOT BEEN PAID, OR THE FORM, PACKAGING, OR CONTENT OF WHICH IS NOT PERMITTED BY THE OFFICE OF CANNABIS MANAGEMENT, AS APPLICABLE. (H) "CANNABIS PLANT" MEANS CANNABIS THAT HAS NOT BEEN HARVESTED, OR UNDERGONE PROCESSING, DRYING OR CURING. (I) "PERSON" MEANS EVERY INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE, S. 2509 133 A. 3009 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. (J) "SALE" MEANS ANY TRANSFER OF TITLE, POSSESSION OR BOTH, EXCHANGE OR BARTER, RENTAL, LEASE OR LICENSE TO USE OR CONSUME, CONDITIONAL, OR OTHERWISE, IN ANY MANNER OR BY ANY MEANS WHATSOEVER FOR A CONSIDERATION OR ANY AGREEMENT THEREFOR. (K) "TOTAL THC" HAS THE SAME MEANING AS THE TERM DEFINED IN SECTION THREE OF THE CANNABIS LAW. § 493. IMPOSITION OF TAX. (A) THERE IS HEREBY IMPOSED A TAX ON ADULT-USE CANNABIS PRODUCTS SOLD BY A DISTRIBUTOR TO A PERSON WHO SELLS ADULT-USE CANNABIS PRODUCTS AT RETAIL AT THE FOLLOWING RATES: (1) CANNABIS FLOWER AT THE RATE OF SEVEN TENTHS OF ONE CENT PER MILLI- GRAM OF THE AMOUNT OF TOTAL THC, AS REFLECTED ON THE PRODUCT LABEL; (2) CONCENTRATED CANNABIS AT THE RATE OF ONE CENT PER MILLIGRAM OF THE AMOUNT OF TOTAL THC, AS REFLECTED ON THE PRODUCT LABEL; AND (3) CANNABIS EDIBLE PRODUCT AT THE RATE OF FOUR CENTS PER MILLIGRAM OF THE AMOUNT OF TOTAL THC, AS REFLECTED ON THE PRODUCT LABEL. THIS TAX SHALL ACCRUE AT THE TIME OF SUCH SALE OR TRANSFER. WHERE A PERSON WHO DISTRIBUTES ADULT-USE CANNABIS IS LICENSED UNDER THE CANNABIS LAW AS A MICROBUSINESS, COOPERATIVE OR REGISTERED ORGANIZATION, SUCH PERSON SHALL BE LIABLE FOR THE TAX, AND SUCH TAX SHALL ACCRUE AT THE TIME OF THE RETAIL SALE. (B) IN ADDITION TO ANY OTHER TAX IMPOSED BY THIS CHAPTER OR OTHER LAW, THERE IS HEREBY IMPOSED A TAX OF TEN AND ONE-QUARTER PERCENT ON RECEIPTS FROM THE RETAIL SALE OF ADULT-USE CANNABIS PRODUCTS SOLD IN THIS STATE. THE TAX IS IMPOSED ON THE RETAIL CUSTOMER AND SHALL BE COLLECTED AT THE TIME OF THE RETAIL SALE BY THE PERSON WHO SELLS ADULT-USE CANNABIS PRODUCTS AT RETAIL, IN TRUST FOR AND ON ACCOUNT OF THE STATE. § 494. REGISTRATION AND RENEWAL. (A) (I) EVERY DISTRIBUTOR ON WHOM TAX IS IMPOSED UNDER THIS ARTICLE AND EVERY PERSON WHO SELLS ADULT-USE CANNABIS PRODUCTS AT RETAIL MUST FILE WITH THE COMMISSIONER A PROPERLY COMPLETED APPLICATION FOR A CERTIFICATE OF REGISTRATION BEFORE ENGAGING IN BUSINESS. AN APPLICATION FOR A CERTIFICATE OF REGISTRATION MUST BE SUBMITTED ELECTRONICALLY, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND MUST BE ACCOMPANIED BY A NON-REFUNDABLE APPLICATION FEE OF SIX HUNDRED DOLLARS. A CERTIFICATE OF REGISTRATION SHALL NOT BE ASSIGNABLE OR TRANS- FERABLE 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. (II) PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL REFUND OR CREDIT AN APPLICATION FEE PAID WITH RESPECT TO THE REGISTRATION OF AN ADULT-USE CANNABIS BUSINESS IN THIS STATE IF, PRIOR TO THE BEGINNING OF THE PERIOD WITH RESPECT TO WHICH SUCH REGISTRATION RELATES, THE CERTIFICATE OF REGISTRATION DESCRIBED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH IS RETURNED TO THE DEPARTMENT OR, IF SUCH CERTIFICATE HAS BEEN DESTROYED, THE OPERA- TOR OF SUCH BUSINESS SATISFACTORILY ACCOUNTS TO THE COMMISSIONER FOR THE MISSING CERTIFICATE, BUT SUCH BUSINESS MAY NOT SELL ADULT-USE CANNABIS PRODUCTS IN THIS STATE DURING SUCH PERIOD, UNLESS IT IS RE-REGISTERED. 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. (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 OR A VALID CERTIFICATE OF AUTHORITY ISSUED PURSU- S. 2509 134 A. 3009 ANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER. THE COMMIS- SIONER MAY REFUSE TO ISSUE A CERTIFICATE OF REGISTRATION TO ANY APPLI- CANT WHERE SUCH APPLICANT: (I) HAS A PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER; (II) HAS HAD A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE, A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT, OR ANY LICENSE OR REGIS- TRATION PROVIDED FOR IN THIS CHAPTER REVOKED OR SUSPENDED WHERE SUCH REVOCATION OR SUSPENSION WAS IN EFFECT ON THE DATE THE APPLICATION WAS FILED OR ENDED WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (III) HAS BEEN CONVICTED OF A CRIME PROVIDED FOR IN THIS CHAPTER WITH- IN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED OR THE CERTIFICATE WAS ISSUED, AS APPLICABLE; (IV) WILLFULLY FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS ARTI- CLE; (V) 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 (VI) 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. (A)(I) EVERY DISTRIBUTOR ON WHOM TAX IS IMPOSED UNDER 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 THE TOTAL THC CONTENT OF ADULT- USE CANNABIS PRODUCTS 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, ALONG WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE. (II) EVERY PERSON WHO SELLS ADULT-USE CANNABIS PRODUCTS TO RETAIL CUSTOMERS SHALL FILE WITH THE COMMISSIONER A QUARTERLY RETURN ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER, SHOWING THE TOTAL AMOUNT OF TAX DUE UNDER SUBDIVISION (B) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS S. 2509 135 A. 3009 ARTICLE IN THE PRECEDING QUARTER, ALONG WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE. (B) 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 DISTRIBUTOR ON WHOM TAX IS IMPOSED UNDER THIS ARTICLE AND EVERY PERSON WHO SELLS ADULT-USE CANNABIS PRODUCTS AT RETAIL SHALL MAINTAIN COMPLETE AND ACCURATE RECORDS IN SUCH FORM AS THE COMMISSIONER MAY REQUIRE INCLUDING, BUT NOT LIMITED TO, SUCH ITEMS AS THE TOTAL THC CONTENT OF THE ADULT-USE CANNABIS PRODUCTS SOLD TO OR PRODUCED BY SUCH PERSON; COMPLETE RECORDS OF EVERY RETAIL SALE OF ADULT-USE CANNABIS, AND ANY OTHER RECORD OR INFORMATION REQUIRED BY THE COMMISSIONER. 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 COMMIS- SIONER UPON REQUEST. (B) PENALTIES. IN ADDITION TO ANY OTHER PENALTY PROVIDED IN THIS ARTI- CLE OR OTHERWISE IMPOSED BY LAW, EVERY DISTRIBUTOR ON WHOM TAX IS IMPOSED UNDER THIS ARTICLE AND EVERY PERSON WHO SELLS ADULT-USE CANNABIS PRODUCTS AT RETAIL 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 EACH MONTH OR PART THEREOF 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 PRECED- 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 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 COURT 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 S. 2509 136 A. 3009 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 ANY PERSON UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO SUCH PERSON OR A DULY AUTHORIZED REPRESENTATIVE OF SUCH PERSON, A CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH PERSON PURSUANT TO THIS ARTICLE, NOR TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS AND THE ITEMS THERE- OF. THIS SECTION SHALL ALSO NOT BE CONSTRUED TO PROHIBIT THE DISCLOSURE, FOR TAX ADMINISTRATION PURPOSES, TO THE DIVISION OF THE BUDGET AND THE OFFICE OF THE STATE COMPTROLLER, OF INFORMATION AGGREGATED FROM THE RETURNS FILED BY ALL PERSONS SUBJECT TO THE TAXES IMPOSED BY THE ARTI- CLE, WHETHER THE NUMBER OF SUCH PERSONS IS ONE OR MORE. (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 THEIR DULY AUTHORIZED REPRE- SENTATIVES OF ANY SUCH OFFICERS, UNLESS SUCH OFFICER OR OTHER REPRESEN- 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 OFFICER OR OTHER REPRESENTATIVES. (C)(1) 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. (2) FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER. § 496-B. ADMINISTRATIVE PROVISIONS. (A)(1) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE TAX IMPOSED BY SUBDIVI- SION (A) OF SECTION FOUR HUNDRED NINETY-THREE OF 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. (2) THE TAX IMPOSED BY SUBDIVISION (B) OF SECTION FOUR HUNDRED NINE- TY-THREE OF THIS ARTICLE SHALL BE ADMINISTERED AND COLLECTED IN A LIKE S. 2509 137 A. 3009 MANNER AS AND JOINTLY WITH THE TAXES IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS CHAPTER. IN ADDITION, EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE, ALL OF THE PROVISIONS OF ARTICLE TWENTY-EIGHT OF THIS CHAPTER (EXCEPT SECTIONS ELEVEN HUNDRED SEVEN, ELEVEN HUNDRED EIGHT, ELEVEN HUNDRED NINE, AND ELEVEN HUNDRED FORTY- EIGHT) RELATING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION AND REVIEW OF THE TAXES IMPOSED BY SUCH SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN, INCLUDING, BUT NOT LIMITED TO, THE PROVISIONS RELAT- ING TO DEFINITIONS, RETURNS, EXEMPTIONS, PENALTIES, PERSONAL LIABILITY FOR THE TAX, AND COLLECTION OF TAX FROM THE CUSTOMER, SHALL APPLY TO THE TAXES IMPOSED BY THIS ARTICLE SO FAR AS SUCH PROVISIONS CAN BE MADE APPLICABLE TO THE TAXES IMPOSED BY THIS ARTICLE WITH SUCH LIMITATIONS AS SET FORTH IN FULL IN THIS ARTICLE AND SUCH MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT SUCH LANGUAGE TO THE TAXES SO IMPOSED. SUCH PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THE TAXES IMPOSED BY THIS ARTICLE. (B)(1) ALL TAXES, INTEREST, AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTICLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER, PROVIDED THAT AN AMOUNT EQUAL TO ONE HUNDRED PERCENT COLLECTED UNDER THIS ARTICLE LESS ANY AMOUNT DETERMINED BY THE COMMISSIONER TO BE RESERVED BY THE COMPTROLLER FOR REFUNDS OR REIMBURSEMENTS SHALL BE PAID BY THE COMPTROLLER TO THE CREDIT OF THE CANNABIS REVENUE FUND ESTAB- LISHED BY SECTION NINETY-NINE-II 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. § 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 FLOWER, TEN DOLLARS PER MILLIGRAM OF THE TOTAL WEIGHT OF ANY ILLICIT CANNABIS EDIBLE PRODUCT, ONE HUNDRED DOLLARS PER GRAM OF THE TOTAL WEIGHT OF ANY PRODUCT CONTAINING ILLICIT CANNABIS CONCENTRATE, AND ONE THOUSAND DOLLARS PER ILLICIT CANNABIS PLANT, BUT NOT TO EXCEED EIGHT HUNDRED DOLLARS PER OUNCE OF ILLICIT CANNABIS FLOWER, TWENTY DOLLARS PER MILLIGRAM OF THE TOTAL WEIGHT OF ANY ILLICIT CANNABIS EDIBLE PRODUCT, TWO HUNDRED DOLLARS PER GRAM OF THE TOTAL WEIGHT OF ANY PRODUCT CONTAINING ILLICIT CANNABIS CONCENTRATE, AND TWO THOUSAND DOLLARS PER ILLICIT CANNABIS PLANT FOR A FIRST VIOLATION, AND FOR A SECOND AND 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 FLOWER, TWENTY DOLLARS PER MILLIGRAM OF THE TOTAL WEIGHT OF ANY ILLICIT CANNABIS EDIBLE PRODUCT, TWO HUNDRED DOLLARS PER GRAM OF THE TOTAL WEIGHT OF ANY PRODUCT CONTAINING ILLICIT CANNABIS CONCENTRATE, AND TWO THOUSAND DOLLARS PER ILLICIT CANNABIS PLANT, BUT NOT TO EXCEED ONE THOUSAND DOLLARS PER OUNCE S. 2509 138 A. 3009 OF ILLICIT CANNABIS FLOWER, FORTY DOLLARS PER MILLIGRAM OF THE TOTAL WEIGHT OF ANY ILLICIT CANNABIS EDIBLE PRODUCT, FOUR HUNDRED DOLLARS PER GRAM OF THE TOTAL WEIGHT OF ANY PRODUCT CONTAINING ILLICIT CANNABIS CONCENTRATE, AND FOUR THOUSAND DOLLARS PER ILLICIT 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. (C) THE PENALTY IMPOSED BY THIS SECTION SHALL NOT APPLY TO PERSONS IN POSSESSION OF LESS THAN TWO OUNCES OF ADULT-USE CANNABIS OR TEN GRAMS OF CONCENTRATED CANNABIS. § 38. Subparagraph (A) of paragraph 1 of subdivision (a) of section 1115 of the tax law, as amended by section 1 of part CCC of chapter 59 of the laws of 2019, is amended to read as follows: (A) Food, food products, beverages, dietary foods and health supple- ments, sold for human consumption but not including (i) candy and confectionery, (ii) fruit drinks which contain less than seventy percent of natural fruit juice, (iii) soft drinks, sodas and beverages such as are ordinarily dispensed at soda fountains or in connection therewith (other than coffee, tea and cocoa) [and], (iv) beer, wine or other alco- holic beverages, AND (V) ADULT-USE CANNABIS PRODUCTS AS DEFINED IN ARTI- CLE TWENTY-C OF THIS CHAPTER, all of which shall be subject to the retail sales and compensating use taxes, whether or not the item is sold in liquid form. Nothing in this subparagraph shall be construed as exempting food or drink from the tax imposed under subdivision (d) of section eleven hundred five of this article. § 39. Intentionally omitted. § 39-a. Paragraph 3 of subdivision (a) of section 1115 of the tax law, as amended by chapter 201 of the laws of 1976, is amended to read as follows: (3) Drugs and medicines intended for use, internally or externally, in the cure, mitigation, treatment or prevention of illnesses or diseases in human beings, medical equipment (including component parts thereof) and supplies required for such use or to correct or alleviate physical incapacity, and products consumed by humans for the preservation of health but not including: (I) cosmetics or toilet articles notwithstand- ing the presence of medicinal ingredients therein [or]; (II) medical equipment (including component parts thereof) and supplies, other than such drugs and medicines, purchased at retail for use in performing medical and similar services for compensation; AND (III) ADULT-USE CANNABIS PRODUCTS, AS DEFINED BY ARTICLE TWENTY-C OF THIS CHAPTER. § 39-b. Section 471 of the tax law is amended by adding a new subdivi- sion 7 to read as follows: 7. THE TAXES IMPOSED UNDER THIS SECTION SHALL NOT APPLY TO ADULT-USE CANNABIS PRODUCTS SUBJECT TO TAX UNDER ARTICLE TWENTY-C OF THIS CHAPTER. § 39-c. Section 1181 of the tax law, as added by section 1 of part UU of chapter 59 of the laws of 2019, is amended to read as follows: § 1181. Imposition of tax. In addition to any other tax imposed by this chapter or other law, there is hereby imposed a tax of twenty percent on receipts from the retail sale of vapor products sold in this state. The tax is imposed on the purchaser and collected by the vapor products dealer as defined in subdivision (b) of section eleven hundred eighty of this article, in trust for and on account of the state. THE TAXES IMPOSED UNDER THIS SECTION SHALL NOT APPLY TO ADULT-USE CANNABIS PRODUCTS SUBJECT TO TAX UNDER ARTICLE TWENTY-C OF THIS CHAPTER. § 39-d. Subdivision (b) of section 1116 of the tax law is amended by adding a new paragraph 8 to read as follows: S. 2509 139 A. 3009 8. NOTHING IN THIS SECTION SHALL EXEMPT PURCHASES OR SALES OF ADULT- USE CANNABIS PRODUCTS, AS DEFINED BY ARTICLE TWENTY-C OF THIS CHAPTER, BY AN ORGANIZATION DESCRIBED IN PARAGRAPHS FOUR, FIVE, SEVEN, EIGHT, AND NINE OF SUBDIVISION (A) OF THIS SECTION. § 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] FOURTEEN years after such date; provided that SECTIONS 490 AND 491 OF THE TAX LAW SHALL EXPIRE AND BE DEEMED REPEALED FOURTEEN YEARS AFTER SUCH DATE AND 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 ther- ewith. § 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 president of the senate and the speaker of the assembly, no later than October 1, 2024. § 42. Section 102 of the alcoholic beverage control law is amended by adding a new subdivision 8 to read as follows: 8. NO ALCOHOLIC BEVERAGE RETAIL LICENSEE SHALL SELL CANNABIS, NOR HAVE OR POSSESS A LICENSE OR PERMIT TO SELL CANNABIS, ON THE SAME PREMISES WHERE ALCOHOLIC BEVERAGES ARE SOLD. § 43. Subdivisions 1, 4, 5, 6, 7 and 13 of section 12-102 of the general obligations law, as added by chapter 406 of the laws of 2000, are amended to read as follows: 1. "Illegal drug" means any controlled substance [or marijuana] the possession of which is an offense under the public health law or the penal law. 4. "Grade one violation" means possession of one-quarter ounce or more, but less than four ounces, or distribution of less than one ounce of an illegal drug [other than marijuana, or possession of one pound or twenty-five plants or more, but less than four pounds or fifty plants, or distribution of less than one pound of marijuana]. 5. "Grade two violation" means possession of four ounces or more, but less than eight ounces, or distribution of one ounce or more, but less than two ounces, of an illegal drug [other than marijuana, or possession S. 2509 140 A. 3009 of four pounds or more or fifty plants or distribution of more than one pound but less than ten pounds of marijuana]. 6. "Grade three violation" means possession of eight ounces or more, but less than sixteen ounces, or distribution of two ounces or more, but less than four ounces, of a specified illegal drug [or possession of eight pounds or more or seventy-five plants or more, but less than sixteen pounds or one hundred plants, or distribution of more than five pounds but less than ten pounds of marijuana]. 7. "Grade four violation" means possession of sixteen ounces or more or distribution of four ounces or more of a specified illegal drug [or possession of sixteen pounds or more or one hundred plants or more or distribution of ten pounds or more of marijuana]. 13. "Drug trafficker" means a person convicted of a class A or class B felony controlled substance [or marijuana offense] who, in connection with the criminal conduct for which he or she stands convicted, possessed, distributed, sold or conspired to sell a controlled substance [or marijuana] which, by virtue of its quantity, the person's prominent role in the enterprise responsible for the sale or distribution of such controlled substance and other circumstances related to such criminal conduct indicate that such person's criminal possession, sale or conspiracy to sell such substance was not an isolated occurrence and was part of an ongoing pattern of criminal activity from which such person derived substantial income or resources and in which such person played a leadership role. § 44. Paragraph (g) of subdivision 1 of section 488 of the social services law, as added by section 1 of part B of chapter 501 of the laws of 2012, is amended to read as follows: (g) "Unlawful use or administration of a controlled substance," which shall mean any administration by a custodian to a service recipient of: a controlled substance as defined by article thirty-three of the public health law, without a prescription; or other medication not approved for any use by the federal food and drug administration, EXCEPT FOR THE ADMINISTRATION OF MEDICAL CANNABIS WHEN SUCH ADMINISTRATION IS IN ACCORDANCE WITH ARTICLE THREE OF THE CANNABIS LAW AND ANY REGULATIONS PROMULGATED THEREUNDER AS WELL AS THE RULES, REGULATIONS, POLICIES, OR PROCEDURES OF THE STATE OVERSIGHT AGENCY OR AGENCIES GOVERNING SUCH CUSTODIANS. It also shall include a custodian unlawfully using or distributing a controlled substance as defined by article thirty-three of the public health law, at the workplace or while on duty. § 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 S. 2509 141 A. 3009 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 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. S. 2509 142 A. 3009 2. "Certification" means a certification, made under section [thirty- three hundred sixty-one of the public health law] THIRTY OF THE CANNABIS LAW. § 179.05 Criminal diversion of medical [marihuana] CANNABIS; limita- tions. The provisions of this article shall not apply to: 1. a practitioner authorized to issue a certification who acted in good faith in the lawful course of his or her profession; or 2. a registered organization as that term is defined in [subdivision nine of section thirty-three hundred sixty of the public health law] SECTION THIRTY-FOUR OF THE CANNABIS LAW who acted in good faith in the lawful course of the practice of pharmacy; or 3. a person who acted in good faith seeking treatment for A medical condition or assisting another person to obtain treatment for a medical condition. § 179.10 Criminal diversion of medical [marihuana] CANNABIS in the first degree. A person is guilty of criminal diversion of medical [marihuana] CANNA- BIS in the first degree when he or she is a practitioner, as that term is defined in [subdivision twelve of section thirty-three hundred sixty of the public health law] SECTION THREE OF THE CANNABIS LAW, who issues a certification with knowledge of reasonable grounds to know that (i) the recipient has no medical need for it, or (ii) it is for a purpose other than to treat a serious condition as defined in [subdivision seven of section thirty-three hundred sixty of the public health law] SECTION THREE OF THE CANNABIS LAW. Criminal diversion of medical [marihuana] CANNABIS in the first degree is a class E felony. § 179.11 Criminal diversion of medical [marihuana] CANNABIS in the second degree. A person is guilty of criminal diversion of medical [marihuana] CANNA- BIS in the second degree when he or she sells, trades, delivers, or otherwise provides medical [marihuana] CANNABIS to another with know- ledge or reasonable grounds to know that the recipient is not registered under [title five-A of article thirty-three of the public health law] ARTICLE THREE OF THE CANNABIS LAW. Criminal diversion of medical [marihuana] CANNABIS in the second degree is a class B misdemeanor. § 179.15 Criminal retention of medical [marihuana] CANNABIS. 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 S. 2509 143 A. 3009 substance offense under article two hundred twenty or a [marihuana] CANNABIS offense under article two hundred twenty-one of this title, other than an offense involving sale for consideration or other benefit or gain, or charged or prosecuted for possession of alcohol by a person under age twenty-one years under section sixty-five-c of the alcoholic beverage control law, or for possession of drug paraphernalia under article thirty-nine of the general business law, with respect to any controlled substance, [marihuana] CANNABIS, alcohol or paraphernalia that was obtained as a result of such seeking or receiving of health care. 2. A person who is experiencing a drug or alcohol overdose or other life threatening medical emergency and, in good faith, seeks health care for himself or herself or is the subject of such a good faith request for health care, shall not be charged or prosecuted for a controlled substance offense under this article or a [marihuana] CANNABIS offense under article two hundred twenty-one of this title, other than an offense involving sale for consideration or other benefit or gain, or charged or prosecuted for possession of alcohol by a person under age twenty-one years under section sixty-five-c of the alcoholic beverage control law, or for possession of drug paraphernalia under article thir- ty-nine of the general business law, with respect to any substance, [marihuana] CANNABIS, alcohol or paraphernalia that was obtained as a result of such seeking or receiving of health care. 3. Definitions. As used in this section the following terms shall have the following meanings: (a) "Drug or alcohol overdose" or "overdose" means an acute condition including, but not limited to, physical illness, coma, mania, hysteria or death, which is the result of consumption or use of a controlled substance or alcohol and relates to an adverse reaction to or the quan- tity of the controlled substance or alcohol or a substance with which the controlled substance or alcohol was combined; provided that a patient's condition shall be deemed to be a drug or alcohol overdose if a prudent layperson, possessing an average knowledge of medicine and health, could reasonably believe that the condition is in fact a drug or alcohol overdose and (except as to death) requires health care. (b) "Health care" means the professional services provided to a person experiencing a drug or alcohol overdose by a health care professional licensed, registered or certified under title eight of the education law or article thirty of the public health law who, acting within his or her 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 S. 2509 144 A. 3009 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. 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 S. 2509 145 A. 3009 for personnel costs of state and local law enforcement agencies[.]; AND (E) FORTY-FIVE PERCENT OF THE MONIES SHALL BE TRANSFERRED TO THE NEW YORK STATE CANNABIS REVENUE FUND. 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-ii to read as follows: § 99-II. 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. SUCH MONIES SHALL FIRST BE ALLOCATED TO THE "CANNABIS SOCIAL EQUITY FUND" ESTABLISHED PURSUANT TO A CHAPTER OF THE LAWS OF TWO THOU- SAND TWENTY-ONE THAT ESTABLISHED SUCH FUND, ACCORDING TO THE FOLLOWING SCHEDULE: TEN MILLION DOLLARS IN FISCAL YEAR TWO THOUSAND TWENTY-TWO-- TWO THOUSAND TWENTY-THREE; TWENTY MILLION DOLLARS IN FISCAL YEAR TWO THOUSAND TWENTY-THREE--TWO THOUSAND TWENTY-FOUR; THIRTY MILLION DOLLARS IN FISCAL YEAR TWO THOUSAND TWENTY-FOUR--TWO THOUSAND TWENTY-FIVE; FORTY MILLION DOLLARS IN FISCAL YEAR TWO THOUSAND TWENTY-FIVE--TWO THOUSAND TWENTY-SIX; AND FIFTY MILLION DOLLARS IN EACH FISCAL YEAR THEREAFTER. ALL REMAINING MONIES SHALL BE EXPENDED FOR THE FOLLOWING PURPOSES: ADMINISTRATION OF THE REGULATED CANNABIS PROGRAM, DATA GATHERING, MONI- TORING AND REPORTING, THE GOVERNOR'S TRAFFIC SAFETY COMMITTEE, IMPLEMEN- TATION 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 CANNABIS USES AND APPLI- CATIONS, 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 BUDGET. § 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 S. 2509 146 A. 3009 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: 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 S. 2509 147 A. 3009 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. 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 S. 2509 148 A. 3009 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 PERSON 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 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 "RECLASSI- FIED") 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- 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. S. 2509 149 A. 3009 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- 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 S. 2509 150 A. 3009 pertaining to medical marijuana and cannabinoid hemp, 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, determi- nations 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) the taxes imposed by section thirty-seven of this act shall apply on and after March 1, 2022 to: (1) the sale of adult-use cannabis products from a distributor to the person who sells adult-use cannabis at retail; and (2) the sale of adult-use cannabis products by a person who sells such products at retail; (ii) 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; (iii) 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; (iv) 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; (v) 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; (vi) 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 S. 2509 151 A. 3009 (vii) the amendments to subdivision 5 of section 410.91 of the crimi- nal 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. PART I Section 1. Subdivision (c) of section 1101 of the tax law, as added by chapter 93 of the laws of 1965, paragraphs 2, 3, 4 and 6 as amended by section 2 and paragraph 8 as added by section 3 of part AA of chapter 57 of the laws of 2010, and paragraph 5 as amended by chapter 575 of the laws of 1965, is amended to read as follows: (c) When used in this article for the purposes of the tax imposed under subdivision (e) of section eleven hundred five OF THIS ARTICLE, the following terms shall mean: (1) Hotel. A building or portion of it which is regularly used and kept open as such for the lodging of guests. The term "hotel" includes an apartment hotel, a motel, boarding house or club, whether or not meals are served. (2) Occupancy. The use or possession, or the right to the use or possession, of any room in a hotel OR VACATION RENTAL. "Right to the use or possession" includes the rights of a room remarketer as described in paragraph eight of this subdivision. (3) Occupant. A person who, for a consideration, uses, possesses, or has the right to use or possess, any room in a hotel OR VACATION RENTAL under any lease, concession, permit, right of access, license to use or other agreement, or otherwise. "Right to use or possess" includes the rights of a room remarketer as described in paragraph eight of this subdivision. (4) Operator. Any person operating a hotel OR VACATION RENTAL. Such term shall include a room remarketer and such room remarketer shall be deemed to operate a hotel, or portion thereof, with respect to which such person has the rights of a room remarketer. (5) Permanent resident. Any occupant of any room or rooms in a hotel OR VACATION RENTAL for at least ninety consecutive days shall be consid- ered a permanent resident with regard to the period of such occupancy. (6) Rent. The consideration received for occupancy, including any service or other charge or amount required to be paid as a condition for occupancy, valued in money, whether received in money or otherwise and whether received by the operator or a room remarketer or another person on behalf of either of them. (7) Room. Any room or rooms of any kind in any part or portion of a hotel OR VACATION RENTAL, which is available for or let out for any purpose other than a place of assembly. (8) Room remarketer. A person who reserves, arranges for, conveys, or furnishes occupancy, whether directly or indirectly, to an occupant for rent in A HOTEL FOR an amount determined by the room remarketer, direct- ly or indirectly, whether pursuant to a written or other agreement. Such person's ability or authority to reserve, arrange for, convey, or furnish occupancy, directly or indirectly, and to determine rent there- for, shall be the "rights of a room remarketer". A room remarketer is not a permanent resident with respect to a room for which such person has the rights of a room remarketer. (9) VACATION RENTAL. A BUILDING OR PORTION OF IT THAT IS USED FOR THE LODGING OF GUESTS. THE TERM "VACATION RENTAL" INCLUDES A HOUSE, AN S. 2509 152 A. 3009 APARTMENT, A CONDOMINIUM, A COOPERATIVE UNIT, A CABIN, A COTTAGE, OR A BUNGALOW, OR ONE OR MORE ROOMS THEREIN, WHERE SLEEPING ACCOMMODATIONS ARE PROVIDED FOR THE LODGING OF PAYING OCCUPANTS, THE TYPICAL OCCUPANTS ARE TRANSIENTS OR TRAVELERS, AND THE RELATIONSHIP BETWEEN THE OPERATOR AND OCCUPANT IS NOT THAT OF A LANDLORD AND TENANT. IT IS NOT NECESSARY THAT MEALS ARE SERVED. A BUILDING OR PORTION OF A BUILDING MAY QUALIFY AS A VACATION RENTAL WHETHER OR NOT AMENITIES, INCLUDING BUT NOT LIMITED TO DAILY HOUSEKEEPING SERVICES, CONCIERGE SERVICES, OR LINEN SERVICES, ARE PROVIDED. (10) (I) VACATION RENTAL MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH AN OPERATOR, FACILITATES THE OCCUPANCY OF A VACA- TION RENTAL BY SUCH OPERATOR OR OPERATORS. A PERSON "FACILITATES THE OCCUPANCY OF A VACATION RENTAL" FOR PURPOSES OF THIS PARAGRAPH WHEN THE PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (A) SUCH PERSON PROVIDES THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE OF THE OCCUPANCY TAKES PLACE OR THE OFFER OF SUCH SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN INTERNET WEBSITE, CATALOG, OR SIMILAR FORUM; AND (B) SUCH PERSON OR AN AFFILIATE OF SUCH PERSON COLLECTS THE RENT PAID BY A CUSTOMER TO AN OPERATOR FOR THE OCCUPANCY OF A VACATION RENTAL, OR CONTRACTS WITH A THIRD PARTY TO COLLECT SUCH RENT. (II) FOR THE PURPOSES OF THIS ARTICLE, THE TERM "VACATION RENTAL MARKETPLACE PROVIDER" SHALL NOT INCLUDE A "ROOM REMARKETER" AS DEFINED IN PARAGRAPH EIGHT OF THIS SUBDIVISION. FOR PURPOSES OF THIS PARAGRAPH, PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN ANOTHER, OR WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDI- RECT, 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. THE TERM "VACATION RENTAL MARKETPLACE PROVIDER" SHALL NOT INCLUDE A "REAL ESTATE BROKER" AS LICENSED UNDER ARTICLE TWELVE-A OF THE REAL PROPERTY LAW. § 2. Subdivision (a) of section 1104 of the tax law, as added by chap- ter 3 of the laws of 2004, is amended to read as follows: (a) Imposition. In addition to any other fee or tax imposed by this article or any other law, on and after April first, two thousand five, there is hereby imposed within the territorial limits of a city with a population of a million or more and there shall be paid a unit fee on every occupancy of a unit in a hotel OR VACATION RENTAL in such city at the rate of one dollar and fifty cents per unit per day, except that such unit fee shall not be imposed upon (1) occupancy by a permanent resident or (2) where the rent per unit is not more than at the rate of two dollars per day. § 3. Paragraph 1 of subdivision (e) of section 1105 of the tax law, as amended by section 1 of part Q of chapter 59 of the laws of 2012, is amended to read as follows: (1) The rent for every occupancy of a room or rooms in a hotel AND VACATION RENTAL in this state, except that the tax shall not be imposed upon (i) a permanent resident, or (ii) where the rent is not more than at the rate of two dollars per day. § 4. Subdivision 1 of section 1131 of the tax law, as amended by section 2 of part G of chapter 59 of the laws of 2019, is amended to read as follows: (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; every operator of a hotel OR VACATION RENTAL; EVERY VACATION RENTAL S. 2509 153 A. 3009 MARKETPLACE PROVIDER WITH RESPECT TO THE RENT FOR EVERY OCCUPANCY OF A VACATION RENTAL IT FACILITATES AS DESCRIBED IN PARAGRAPH TEN OF SUBDIVI- SION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE; and every marketplace provider with respect to sales of tangible personal property it facilitates as described in paragraph one of subdivision (e) of section eleven hundred one of this article. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any employee of a partnership, any employee or manager of a limited liability company, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corporation, partnership, limited liability company or individual proprietorship in complying with any requirement of this article, or has so acted; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph [(8)] EIGHT of subdivision (b) of section eleven hundred one of this article shall not be a "person required to collect any tax imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four of this part. § 5. Section 1132 of the tax law is amended by adding a new subdivi- sion (m) to read as follows: (M)(L) A VACATION RENTAL MARKETPLACE PROVIDER WITH RESPECT TO A SALE FOR EVERY OCCUPANCY OF A VACATION RENTAL IT FACILITATES: (A) SHALL HAVE ALL THE OBLIGATIONS AND RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTI- CLE TWENTY-NINE OF THIS CHAPTER AND UNDER ANY REGULATIONS ADOPTED PURSU- ANT THERETO, INCLUDING, BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIF- ICATE OF AUTHORITY, TO COLLECT TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIFICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE THE REFUND AUTHORIZED BY SUBDIVISION (E) OF THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION (F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT TO THE PROVISIONS OF SUCH SUBDIVISIONS; AND (B) SHALL KEEP SUCH RECORDS AND INFORMATION AND COOPERATE WITH THE COMMISSIONER TO ENSURE THE PROPER COLLECTION AND REMITTANCE OF TAX IMPOSED, COLLECTED OR REQUIRED TO BE COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER. (2) AN OPERATOR IS RELIEVED FROM THE DUTY TO COLLECT TAX IN REGARD TO A PARTICULAR RENT FOR THE OCCUPANCY OF A VACATION RENTAL SUBJECT TO TAX UNDER SUBDIVISION (E) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND SHALL NOT INCLUDE THE RENT FROM SUCH OCCUPANCY IN ITS TAXABLE SALES FOR PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS PART IF, IN REGARD TO SUCH OCCUPANCY: (A) THE OPERATOR OF THE VACATION RENTAL CAN SHOW THAT SUCH OCCUPANCY WAS FACILITATED BY A VACATION RENTAL MARKETPLACE PROVIDER FROM WHOM SUCH OPERATOR HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT THE VACATION RENTAL MARKETPLACE PROVIDER IS REGISTERED TO COLLECT SALES TAX AND WILL COLLECT SALES TAX ON ALL TAXABLE SALES OF OCCUPANCY OF A VACATION RENTAL BY THE OPERATOR FACILITATED BY THE VACA- TION RENTAL MARKETPLACE PROVIDER, AND WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (B) ANY FAILURE OF THE VACATION RENTAL MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF TAX IN REGARD TO SUCH SALE WAS NOT THE RESULT OF SUCH OPERATOR PROVIDING THE VACATION RENTAL MARKETPLACE PROVIDER WITH INCORRECT INFORMATION. THIS PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A CERTIFICATE OF S. 2509 154 A. 3009 COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES OF SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH CERTIF- ICATE OF COLLECTION AND THE TIMING OF ITS ACCEPTANCE BY THE OPERATOR. PROVIDED THAT, WITH REGARD TO ANY SALES OF OCCUPANCY OF A VACATION RENTAL BY AN OPERATOR THAT ARE FACILITATED BY A VACATION RENTAL MARKET- PLACE PROVIDER WHO IS AFFILIATED WITH SUCH OPERATOR WITHIN THE MEANING OF PARAGRAPH TEN OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, THE OPERATOR SHALL BE DEEMED LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH VACATION RENTAL MARKETPLACE PROVIDER FOR PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS PART. (3) THE COMMISSIONER MAY, AT HIS OR HER DISCRETION: (A) DEVELOP A STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED BY A VACATION RENTAL MARKETPLACE PROVIDER, IN WHICH THE VACATION RENTAL MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT THE TAX ON BEHALF OF ALL OPERATORS FOR WHOM THE VACATION RENTAL MARKETPLACE PROVIDER FACILITATES SALES OF OCCUPANCY OF A VACATION RENTAL, WITH RESPECT TO ALL SALES THAT IT FACIL- ITATES FOR SUCH OPERATORS WHERE THE RENTAL OCCURS IN THE STATE; AND (B) PROVIDE BY REGULATION OR OTHERWISE THAT THE INCLUSION OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE VACATION RENTAL MARKET- PLACE PROVIDER AND OPERATOR WILL HAVE THE SAME EFFECT AS AN OPERATOR'S ACCEPTANCE OF A CERTIFICATE OF COLLECTION FROM SUCH VACATION RENTAL MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS SUBDIVISION. § 6. Section 1133 of the tax law is amended by adding a new subdivi- sion (g) to read as follows: (G) A VACATION RENTAL MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT THE VACATION RENTAL MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT OR INSUFFICIENT INFORMATION GIVEN TO THE VACATION RENTAL MARKETPLACE PROVIDER BY THE OPERATOR. PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF THE OPERATOR AND VACATION RENTAL MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF PARAGRAPH TEN OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. § 7. Subdivision (a) of section 1134 of the tax law is amended by adding a new paragraph 6 to read as follows: (6) AN OPERATOR OF A VACATION RENTAL, AS DEFINED IN PARAGRAPH NINE OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, IS RELIEVED OF THE REQUIREMENT TO REGISTER IN PARAGRAPH ONE OF THIS SUBDI- VISION IF ITS SALES OF OCCUPANCY ARE WHOLLY FACILITATED BY ONE OR MORE VACATION RENTAL MARKETPLACE PROVIDERS FROM WHOM THE OPERATOR HAS RECEIVED IN GOOD FAITH A CERTIFICATE OF COLLECTION THAT MEETS THE REQUIREMENTS SET FORTH IN PARAGRAPH TWO OF SUBDIVISION (M) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART. § 8. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as amended by section 5 of part G of chapter 59 of the laws of 2019, is amended to read as follows: (4) The return of a vendor of tangible personal property or services shall show such vendor's receipts from sales and the number of gallons of any motor fuel or diesel motor fuel sold and also the aggregate value of tangible personal property and services and number of gallons of such fuels sold by the vendor, the use of which is subject to tax under this article, and the amount of tax payable thereon pursuant to the provisions of section eleven hundred thirty-seven of this part. The return of a recipient of amusement charges shall show all such charges and the amount of tax thereon, and the return of an operator required to collect tax on rents shall show all rents received or charged and the amount of tax thereon. The return of a marketplace seller shall exclude S. 2509 155 A. 3009 the receipts from a sale of tangible personal property facilitated by a marketplace provider if, in regard to such sale: (A) the marketplace seller has timely received in good faith a properly completed certif- icate of collection from the marketplace provider or the marketplace provider has included a provision approved by the commissioner in the publicly-available agreement between the marketplace provider and the marketplace seller as described in subdivision one of section eleven hundred thirty-two of this part, and (B) the information provided by the marketplace seller to the marketplace provider about such tangible personal property is accurate. THE RETURN OF AN OPERATOR SHALL EXCLUDE THE RENT FROM OCCUPANCY OF A VACATION RENTAL FACILITATED BY A VACATION RENTAL MARKETPLACE PROVIDER IF, IN REGARD TO SUCH SALE: (A) THE VACATION RENTAL OPERATOR HAS TIMELY RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION FROM THE VACATION RENTAL MARKETPLACE PROVIDER OR THE VACATION RENTAL MARKETPLACE PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE COMMISSIONER IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE VACATION RENTAL MARKETPLACE PROVIDER AND THE OPERATOR AS DESCRIBED IN SUBDIVISION (M) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE OPERATOR TO THE VACATION RENTAL MARKETPLACE PROVIDER ABOUT SUCH RENT AND SUCH OCCUPANCY IS ACCURATE. § 9. Section 1142 of the tax law is amended by adding a new subdivi- sion 16 to read as follows: 16. TO PUBLISH A LIST ON THE DEPARTMENT'S WEBSITE OF VACATION RENTAL MARKETPLACE PROVIDERS WHOSE CERTIFICATES OF AUTHORITY HAVE BEEN REVOKED AND, IF NECESSARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHERWISE THAT A VACATION RENTAL OPERATOR WILL BE RELIEVED OF THE REQUIREMENT TO REGISTER AND THE DUTY TO COLLECT TAX ON THE RENT FOR OCCUPANCY OF A VACATION RENTAL FACILITATED BY A VACATION RENTAL MARKET- PLACE PROVIDER ONLY IF, IN ADDITION TO THE CONDITIONS PRESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (M) OF SECTION ELEVEN HUNDRED THIRTY-TWO AND PARAGRAPH SIX OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED THIRTY- FOUR OF THIS PART BEING MET, SUCH VACATION RENTAL MARKETPLACE PROVIDER IS NOT ON SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY. § 10. This act shall take effect immediately and shall apply to collections of rent by the operator or vacation rental marketplace provider on or after September 1, 2021. PART J Section 1. Sections 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and breeding law are REPEALED. § 2. Paragraph 1 of subdivision (f) of section 1105 of the tax law, as amended by chapter 32 of the laws of 2016, is amended to read as follows: (1) Any admission charge where such admission charge is in excess of ten cents to or for the use of any place of amusement in the state, except charges for admission to [race tracks or] combative sports which charges are taxed under any other law of this state, or dramatic or musical arts performances, or live circus performances, or motion picture theaters, and except charges to a patron for admission to, or use of, facilities for sporting activities in which such patron is to be a participant, such as bowling alleys and swimming pools. For any person having the permanent use or possession of a box or seat or a lease or a S. 2509 156 A. 3009 license, other than a season ticket, for the use of a box or seat at a place of amusement, the tax shall be upon the amount for which a similar box or seat is sold for each performance or exhibition at which the box or seat is used or reserved by the holder, licensee or lessee, and shall be paid by the holder, licensee or lessee. § 3. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by section 2 of part WW, subparagraph (i) as separately amended by section 5 of part Z of chapter 60 of the laws of 2016, is amended to read as follows: (1) Either, all of the taxes described in article twenty-eight of this chapter, at the same uniform rate, as to which taxes all provisions of the local laws, ordinances or resolutions imposing such taxes shall be identical, except as to rate and except as otherwise provided, with the corresponding provisions in such article twenty-eight, including the definition and exemption provisions of such article, so far as the provisions of such article twenty-eight can be made applicable to the taxes imposed by such city or county and with such limitations and special provisions as are set forth in this article. The taxes author- ized under this subdivision may not be imposed by a city or county unless the local law, ordinance or resolution imposes such taxes so as to include all portions and all types of receipts, charges or rents, subject to state tax under sections eleven hundred five and eleven hundred ten of this chapter, except as otherwise provided. NOTWITH- STANDING THE FOREGOING, A TAX IMPOSED BY A CITY OR COUNTY AUTHORIZED UNDER THIS SUBDIVISION SHALL NOT INCLUDE THE TAX IMPOSED ON CHARGES FOR ADMISSION TO RACE TRACKS AND SIMULCAST FACILITIES UNDER SUBDIVISION (F) OF SECTION ELEVEN HUNDRED FIVE OF THIS CHAPTER. (i) Any local law, ordi- nance or resolution enacted by any city of less than one million or by any county or school district, imposing the taxes authorized by this subdivision, shall, notwithstanding any provision of law to the contra- ry, exclude from the operation of such local taxes all sales of tangible personal property for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrig- eration or steam, for sale, by manufacturing, processing, generating, assembly, refining, mining or extracting; and all sales of tangible personal property for use or consumption predominantly either in the production of tangible personal property, for sale, by farming or in a commercial horse boarding operation, or in both; and all sales of fuel sold for use in commercial aircraft and general aviation aircraft; and, unless such city, county or school district elects otherwise, shall omit the provision for credit or refund contained in clause six of subdivi- sion (a) or subdivision (d) of section eleven hundred nineteen of this chapter. (ii) Any local law, ordinance or resolution enacted by any city, county or school district, imposing the taxes authorized by this subdivision, shall omit the residential solar energy systems equipment and electricity exemption provided for in subdivision (ee), the commer- cial solar energy systems equipment and electricity exemption provided for in subdivision (ii), the commercial fuel cell electricity generating systems equipment and electricity generated by such equipment exemption provided for in subdivision (kk) and the clothing and footwear exemption provided for in paragraph thirty of subdivision (a) of section eleven hundred fifteen of this chapter, unless such city, county or school district elects otherwise as to such residential solar energy systems equipment and electricity exemption, such commercial solar energy systems equipment and electricity exemption, commercial fuel cell elec- S. 2509 157 A. 3009 tricity generating systems equipment and electricity generated by such equipment exemption or such clothing and footwear exemption. § 4. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as amended by section 3 of part WW of chapter 60 of the laws of 2016, is amended to read as follows: (1) Or, one or more of the taxes described in subdivisions (b), (d), (e) and (f) of section eleven hundred five of this chapter, at the same uniform rate, including the transitional provisions in section eleven hundred six of this chapter covering such taxes, but not the taxes described in subdivisions (a) and (c) of section eleven hundred five of this chapter. Provided, further, that where the tax described in subdi- vision (b) of section eleven hundred five of this chapter is imposed, the compensating use taxes described in clauses (E), (G) and (H) of subdivision (a) of section eleven hundred ten of this chapter shall also be imposed. Provided, further, that where the taxes described in subdi- vision (b) of section eleven hundred five OF THIS CHAPTER are imposed, such taxes shall omit: (A) the provision for refund or credit contained in subdivision (d) of section eleven hundred nineteen of this chapter with respect to such taxes described in such subdivision (b) of section eleven hundred five unless such city or county elects to provide such provision or, if so elected, to repeal such provision; (B) the exemption provided in paragraph two of subdivision (ee) of section eleven hundred fifteen of this chapter unless such county or city elects otherwise; (C) the exemption provided in paragraph two of subdivision (ii) of section eleven hundred fifteen of this chapter, unless such county or city elects otherwise; and (D) the exemption provided in paragraph two of subdivision (kk) of section eleven hundred fifteen of this chapter, unless such county or city elects otherwise; AND PROVIDED FURTHER THAT WHERE THE TAX DESCRIBED IN SUBDIVISION (F) OF SUCH SECTION ELEVEN HUNDRED FIVE IS IMPOSED, SUCH TAX SHALL NOT APPLY TO CHARGES FOR ADMIS- SION TO RACE TRACKS AND SIMULCAST FACILITIES. § 5. Notwithstanding any provisions of law to the contrary and notwithstanding the repeal of sections 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and breeding law by section one of this act, all provisions of such sections 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009, in respect to the imposition, exemption, assessment, payment, payment over, determination, collection, and credit or refund of tax, interest and penalty imposed thereunder, the filing of forms and returns, the preser- vation of records for the purposes of such tax, the disposition of revenues, and any civil and criminal penalties applicable to the violation of the provisions of such sections 227, 306 and 406, subpara- graph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009, shall continue in full force and effect with respect to all such tax accrued for periods prior to the effective date of this act in the same manner as they might if such provisions were not repealed. § 6. This act shall take effect September 1, 2021 and shall apply to charges for admissions to race tracks and simulcast facilities on and after such date. PART K S. 2509 158 A. 3009 Section 1. Subdivision (d) of section 1139 of the tax law, as amended by section 10 of subpart D of part VI of chapter 57 of the laws of 2009, is amended to read as follows: (d) (1) Except in respect to an overpayment made on a return described in paragraph two of subdivision (a) of section eleven hundred thirty-six of this part [or on a return described in subdivision (c) of section eleven hundred thirty-seven-A of this part], interest shall be allowed and paid upon any refund made or credit allowed pursuant to this section except as otherwise provided in paragraph two OR THREE of this subdivi- sion or subdivision (e) of this section and 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 section eleven hundred forty-two of this part, or if no rate is set, at the rate of six percent per annum from the date when the tax, penalty or interest refunded or credited 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. In the case of a refund or credit claimed on a return of tax which is filed after the last date prescribed for filing such return (determined with regard to extensions), or claimed on an application for refund or credit, no interest shall be allowed or paid for any day before the date on which the return or application is filed. For purposes of this subdivision, a return or application for refund or credit shall not be treated as filed until it is filed in processible form. A return or application is in a processi- ble form if it is filed on a permitted form, and contains the taxpayer's name, address and identifying number and the required signatures, and sufficient required information (whether on the return or application or on required attachments) to permit the mathematical verification of tax liability shown on the return or refund or credit claimed on the appli- cation. (2) If a refund is made or a credit is allowed IN AN AMOUNT LESS THAN ONE HUNDRED THOUSAND DOLLARS (I) within three months after the last date prescribed or permitted by extension of time for filing a return on which the refund or credit was claimed or within three months after the return was filed, whichever is later, or (II) within three months after an application for refund or credit is filed on which that refund or credit was claimed, OR (III) WITHIN THREE MONTHS AFTER THE LAST DATE PRESCRIBED OR PERMITTED BY EXTENSION OF TIME FOR FILING AN APPLICATION FOR A REFUND OR CREDIT ON WHICH THAT REFUND OR CREDIT WAS CLAIMED, no interest will be allowed or paid on that refund or credit. (3) IF A REFUND IS MADE OR A CREDIT IS ALLOWED IN AN AMOUNT OF ONE HUNDRED THOUSAND DOLLARS OR MORE (I) WITHIN SIX MONTHS AFTER THE LAST DATE PRESCRIBED OR PERMITTED BY EXTENSION OF TIME FOR FILING A RETURN ON WHICH THE REFUND OR CREDIT WAS CLAIMED OR WITHIN SIX MONTHS AFTER THE RETURN WAS FILED, WHICHEVER IS LATER, OR (II) WITHIN SIX MONTHS AFTER AN APPLICATION FOR REFUND OR CREDIT IS FILED ON WHICH THAT REFUND OR CREDIT WAS CLAIMED, OR (III) WITHIN SIX MONTHS AFTER THE LAST DATE PRESCRIBED OR PERMITTED BY EXTENSION OF TIME FOR FILING AN APPLICATION FOR REFUND OR CREDIT ON WHICH THAT REFUND OR CREDIT WAS CLAIMED, NO INTEREST WILL BE ALLOWED OR PAID ON THAT REFUND OR CREDIT. § 2. This act shall take effect immediately and shall apply to refund or credit claims submitted on or after March 1, 2022. PART L S. 2509 159 A. 3009 Section 1. Subparagraph (i) of the opening paragraph of section 1210 of the tax law is REPEALED and a new subparagraph (i) is added to read as follows: (I) WITH RESPECT TO A CITY OF ONE MILLION OR MORE AND THE FOLLOWING COUNTIES: (1) ANY SUCH CITY HAVING A POPULATION OF ONE MILLION OR MORE IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDI- NANCES OR RESOLUTIONS IMPOSING SUCH TAXES IN ANY SUCH CITY, AT THE RATE OF FOUR AND ONE-HALF PERCENT; (2) THE FOLLOWING COUNTIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION (A) OF THIS SECTION AT THE RATE OF THREE PERCENT AS AUTHORIZED ABOVE IN THIS PARAGRAPH ARE HEREBY FURTHER AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES, OR RESOLUTIONS IMPOSING SUCH TAXES AT ADDITIONAL RATES, IN QUARTER PERCENT INCREMENTS, NOT TO EXCEED THE FOLLOWING RATES, WHICH RATES ARE ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED ABOVE IN THIS PARAGRAPH: (A) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CAYUGA, CHAUTAUQUA, CHEMUNG, CHENANGO, CLINTON, COLUMBIA, CORTLAND, DELAWARE, DUTCHESS, ESSEX, FRANKLIN, FULTON, GENESEE, GREENE, HAMILTON, JEFFERSON, LEWIS, LIVINGSTON, MADISON, MONROE, MONTGOMERY, NIAGARA, ONONDAGA, ONTARIO, ORANGE, ORLEANS, OSWEGO, OTSEGO, PUTNAM, RENSSELAER, ROCKLAND, ST. LAWRENCE, SARATOGA, SCHENECTADY, SCHOHARIE, SCHUYLER, SENECA, STEUBEN, SUFFOLK, SULLIVAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON, WAYNE, WESTCHESTER, WYOMING, YATES; (B) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU; (C) ONE AND ONE-HALF PERCENT - ALLEGANY; (D) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA. PROVIDED, HOWEVER, THAT (I) THE COUNTY OF ROCKLAND MAY IMPOSE ADDI- TIONAL RATES OF FIVE-EIGHTHS PERCENT AND THREE-EIGHTHS PERCENT, IN LIEU OF IMPOSING SUCH ADDITIONAL RATE IN QUARTER PERCENT INCREMENTS; (II) THE COUNTY OF ONTARIO MAY IMPOSE ADDITIONAL RATES OF ONE-EIGHTH PERCENT AND THREE-EIGHTHS PERCENT, IN LIEU OF IMPOSING SUCH ADDITIONAL RATE IN QUAR- TER PERCENT INCREMENTS; (III) THREE-QUARTERS PERCENT OF THE ADDITIONAL RATE AUTHORIZED TO BE IMPOSED BY THE COUNTY OF NASSAU SHALL BE SUBJECT TO THE LIMITATION SET FORTH IN SECTION TWELVE HUNDRED SIXTY-TWO-E OF THIS ARTICLE. § 2. Subparagraph (ii) of the opening paragraph of section 1210 of the tax law is REPEALED and a new subparagraph (ii) is added to read as follows: (II) THE FOLLOWING CITIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION (A) OF THIS SECTION AT THE RATE OF ONE AND ONE-HALF PERCENT OR HIGHER AS AUTHORIZED ABOVE IN THIS PARAGRAPH FOR SUCH CITIES ARE HEREBY FURTHER AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES, OR RESOLUTIONS IMPOSING SUCH TAXES AT ADDITIONAL RATES, IN QUARTER PERCENT INCREMENTS, NOT TO EXCEED THE FOLLOWING RATES, WHICH RATES ARE ADDI- TIONAL TO THE ONE AND ONE-HALF PERCENT OR HIGHER RATES AUTHORIZED ABOVE IN THIS PARAGRAPH: (1) ONE PERCENT - MOUNT VERNON; NEW ROCHELLE; OSWEGO; WHITE PLAINS; (2) ONE AND ONE QUARTER PERCENT - NONE; (3) ONE AND ONE-HALF PERCENT - YONKERS. § 3. Subparagraphs (iii) and (iv) of the opening paragraph of section 1210 of the tax law are REPEALED and a new subparagraph (iii) is added to read as follows: (III) THE MAXIMUM RATE REFERRED TO IN SECTION TWELVE HUNDRED TWENTY- FOUR OF THIS ARTICLE SHALL BE CALCULATED WITHOUT REFERENCE TO THE ADDI- TIONAL RATES AUTHORIZED FOR COUNTIES, OTHER THAN THE COUNTIES OF CAYUGA, S. 2509 160 A. 3009 CORTLAND, FULTON, MADISON, AND OTSEGO, IN CLAUSE TWO OF SUBPARAGRAPH (I) AND THE CITIES IN SUBPARAGRAPH (II) OF THIS PARAGRAPH. § 4. Section 1210 of the tax law is amended by adding a new subdivi- sion (p) to read as follows: (P) NOTWITHSTANDING ANY PROVISION OF THIS SECTION OR OTHER LAW TO THE CONTRARY, A COUNTY AUTHORIZED TO IMPOSE AN ADDITIONAL RATE OR RATES OF SALES AND COMPENSATING USE TAXES BY CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF THIS SECTION, OR A CITY, OTHER THAN THE CITY OF MOUNT VERNON, AUTHORIZED TO IMPOSE AN ADDITIONAL RATE OF SUCH TAXES BY SUBPARAGRAPH (II) OF SUCH OPENING PARAGRAPH, MAY ADOPT A LOCAL LAW, ORDINANCE OR RESOLUTION BY A MAJORITY VOTE OF ITS GOVERNING BODY IMPOS- ING SUCH RATE OR RATES FOR A PERIOD NOT TO EXCEED TWO YEARS, AND ANY SUCH PERIOD MUST END ON NOVEMBER THIRTIETH OF AN ODD-NUMBERED YEAR. NOTWITHSTANDING THE PRECEDING SENTENCE, THE CITY OF WHITE PLAINS IS AUTHORIZED TO EXCEED SUCH TWO-YEAR LIMITATION TO IMPOSE THE TAX AUTHOR- IZED BY SUBPARAGRAPH (II) OF SUCH OPENING PARAGRAPH FOR THE PERIOD COMMENCING ON SEPTEMBER FIRST, TWO THOUSAND TWENTY-ONE AND ENDING ON NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-THREE. ANY SUCH LOCAL LAW, ORDI- NANCE, OR RESOLUTION SHALL ALSO BE SUBJECT TO THE PROVISIONS OF SUBDIVI- SIONS (D) AND (E) OF THIS SECTION. § 5. Section 1210-E of the tax law is REPEALED. § 6. Subdivisions (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (z-1), (aa), (bb), (cc), (dd), (ee), (ff), (gg), (hh), (ii) and (jj) of section 1224 of the tax law are REPEALED. § 7. Section 1224 of the tax law is amended by adding three new subdi- visions (d), (e), and (f) to read as follows: (D) FOR PURPOSES OF THIS SECTION, THE TERM "PRIOR RIGHT" SHALL MEAN THE PREFERENTIAL RIGHT TO IMPOSE ANY TAX DESCRIBED IN SECTIONS TWELVE HUNDRED TWO AND TWELVE HUNDRED THREE, OR TWELVE HUNDRED TEN AND TWELVE HUNDRED ELEVEN, OF THIS ARTICLE AND THEREBY TO PREEMPT SUCH TAX AND TO PRECLUDE ANOTHER MUNICIPAL CORPORATION FROM IMPOSING OR CONTINUING THE IMPOSITION OF SUCH TAX TO THE EXTENT THAT SUCH RIGHT IS EXERCISED. HOWEVER, THE RIGHT OF PREEMPTION SHALL ONLY APPLY WITHIN THE TERRITORIAL LIMITS OF THE TAXING JURISDICTION HAVING THE RIGHT OF PREEMPTION. (E) EACH OF THE FOLLOWING COUNTIES AND CITIES SHALL HAVE THE SOLE RIGHT TO IMPOSE THE FOLLOWING ADDITIONAL RATE OF SALES AND COMPENSATING USE TAXES IN EXCESS OF THREE PERCENT THAT SUCH COUNTY OR CITY IS AUTHOR- IZED TO IMPOSE PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OR SUBPARA- GRAPH (II) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE. SUCH ADDITIONAL RATES OF TAX SHALL NOT BE SUBJECT TO PREEMPTION. (1) COUNTIES: (A) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CHAUTAUQUA, CHEMUNG, CHENANGO, CLINTON, COLUMBIA, DELAWARE, DUTCHESS, ESSEX, FRANKLIN, GENE- SEE, GREENE, HAMILTON, JEFFERSON, LEWIS, LIVINGSTON, MONROE, MONTGOMERY, NIAGARA, ONONDAGA, ONTARIO, ORANGE, ORLEANS, OSWEGO, PUTNAM, RENSSELAER, ROCKLAND, ST. LAWRENCE, SARATOGA, SCHENECTADY, SCHOHARIE, SCHUYLER, SENECA, STEUBEN, SUFFOLK, SULLIVAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON, WAYNE, WESTCHESTER, WYOMING, YATES; (B) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU; (C) ONE AND ONE-HALF PERCENT - ALLEGANY; (D) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA; PROVIDED, HOWEVER THAT THE COUNTY OF WESTCHESTER SHALL HAVE THE SOLE RIGHT TO IMPOSE THE ADDITIONAL ONE PERCENT RATE OF TAX AUTHORIZED BY CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION S. 2509 161 A. 3009 TWELVE HUNDRED TEN OF THIS ARTICLE IN THE AREA OF SUCH COUNTY OUTSIDE THE CITIES OF MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS AND YONKERS. (2) CITIES: (A) ONE-QUARTER OF ONE PERCENT - ROME; (B) ONE-HALF OF ONE PERCENT - NONE; (C) THREE-QUARTERS OF ONE PERCENT - NONE; (D) ONE PERCENT - MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS; (E) ONE AND ONE QUARTER PERCENT - NONE; (F) ONE AND ONE-HALF PERCENT - YONKERS. (F) EACH OF THE FOLLOWING CITIES IS AUTHORIZED TO PREEMPT THE TAXES IMPOSED BY THE COUNTY IN WHICH IT IS LOCATED PURSUANT TO THE AUTHORITY OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, TO THE EXTENT OF ONE-HALF THE MAXIMUM AGGREGATE RATE AUTHORIZED UNDER SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, INCLUDING THE ADDITIONAL RATE THAT THE COUNTY IN WHICH SUCH CITY IS LOCATED IS AUTHORIZED TO IMPOSE: AUBURN, IN CAYUGA COUNTY; CORTLAND, IN CORTLAND COUNTY; GLOVERSVILLE AND JOHNSTOWN, IN FULTON COUNTY; ONEIDA, IN MADISON COUNTY; ONEONTA, IN OTSEGO COUNTY. AS OF THE DATE THIS SUBDIVISION TAKES EFFECT, ANY SUCH PREEMPTION BY SUCH A CITY IN EFFECT ON SUCH DATE SHALL CONTINUE IN FULL FORCE AND EFFECT UNTIL THE EFFECTIVE DATE OF A LOCAL LAW, ORDINANCE, OR RESOLUTION ADOPTED OR AMENDED BY THE CITY TO CHANGE SUCH PREEMPTION. ANY PREEMPTION BY SUCH A CITY PURSUANT TO THIS SUBDIVISION THAT TAKES EFFECT AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION SHALL BE SUBJECT TO THE NOTICE REQUIREMENTS IN SECTION TWELVE HUNDRED TWENTY-THREE OF THIS SUBPART AND TO THE OTHER REQUIREMENTS OF THIS ARTICLE. § 8. Section 1262-g of the tax law, as amended by section 2 of item DD of subpart C of part XXX of chapter 58 of the laws of 2020, is amended to read as follows: § 1262-g. Oneida county allocation and distribution of net collections from the additional [one percent rate] RATES of sales and compensating use taxes. Notwithstanding any contrary provision of law, (A) if the county of Oneida imposes sales and compensating use taxes at a rate which is one percent additional to the three percent rate authorized by section twelve hundred ten of this article, as authorized by such section, [(a)] (I) where a city in such county imposes tax pursuant to the authority of subdivision (a) of such section twelve hundred ten, such county shall allocate, distribute and pay in cash quarterly to such city one-half of the net collections attributable to such additional one percent rate of the county's taxes collected in such city's boundaries; [(b)] (II) where a city in such county does not impose tax pursuant to the authority of such subdivision (a) of such section twelve hundred ten, such county shall allocate, distribute and pay in cash quarterly to such city not so imposing tax a portion of the net collections attribut- able to one-half of the county's additional one percent rate of tax calculated on the basis of the ratio which such city's population bears to the county's total population, such populations as determined in accordance with the latest decennial federal census or special popu- lation census taken pursuant to section twenty of the general municipal law completed and published prior to the end of the quarter for which the allocation is made, which special census must include the entire area of the county; [and (c)] provided, however, that such county shall dedicate the first one million five hundred thousand dollars of net collections attributable to such additional one percent rate of tax received by such county after the county receives in the aggregate eigh- teen million five hundred thousand dollars of net collections from such additional one percent rate of tax [imposed for any of the periods: S. 2509 162 A. 3009 September first, two thousand twelve through August thirty-first, two thousand thirteen; September first, two thousand thirteen through August thirty-first, two thousand fourteen; and September first, two thousand fourteen through August thirty-first, two thousand fifteen; September first, two thousand fifteen through August thirty-first, two thousand sixteen; and September first, two thousand sixteen through August thir- ty-first, two thousand seventeen; September first, two thousand seven- teen through August thirty-first, two thousand eighteen; September first, two thousand eighteen through August thirty-first, two thousand twenty; and September first, two thousand twenty through August thirty- first, two thousand twenty-three,] to an allocation on a per capita basis, utilizing figures from the latest decennial federal census or special population census taken pursuant to section twenty of the gener- al municipal law, completed and published prior to the end of the year for which such allocation is made, which special census must include the entire area of such county, to be allocated and distributed among the towns of Oneida county by appropriation of its board of legislators; provided, further, that nothing herein shall require such board of legislators to make any such appropriation until it has been notified by any town by appropriate resolution and, in any case where there is a village wholly or partly located within a town, a resolution of every such village, embodying the agreement of such town and village or villages upon the amount of such appropriation to be distributed to such village or villages out of the allocation to the town or towns in which it is located. (B) IF THE COUNTY OF ONEIDA IMPOSES SALES AND COMPENSATING USE TAXES AT A RATE WHICH IS ONE AND THREE-QUARTERS PERCENT ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED BY SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, AS AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS ATTRIBUTABLE TO THE ADDITIONAL THREE-QUARTERS PERCENT OF SUCH ADDITIONAL RATE SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION AGREEMENT ENTERED INTO BY THE COUNTY AND THE CITIES IN THE COUNTY PURSU- ANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART. § 9. The opening paragraph of section 1262-r of the tax law, as added by chapter 37 of the laws of 2006, is amended to read as follows: (1) NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IF THE COUNTY OF ONTARIO IMPOSES THE ADDITIONAL ONE-EIGHTH OF ONE PERCENT AND THE ADDI- TIONAL THREE-EIGHTHS OF ONE PERCENT RATES OF TAX AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS FROM THE SUCH ADDI- TIONAL THREE-EIGHTHS OF ONE PERCENT RATE OF SUCH TAXES SHALL BE SET ASIDE FOR COUNTY PURPOSES AND SHALL NOT BE SUBJECT TO ANY AGREEMENT ENTERED INTO BY THE COUNTY AND THE CITIES IN THE COUNTY PURSUANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART OR THIS SECTION. (2) Notwithstanding the provisions of subdivision (c) of section twelve hundred sixty-two of this part to the contrary, if the cities of Canandaigua and Geneva in the county of Ontario do not impose sales and compensating use taxes pursuant to the authority of section twelve hundred ten of this article and such cities and county enter into an agreement pursuant to the authority of subdivision (c) of section twelve hundred sixty-two of this part to be effective March first, two thousand six, such agreement may provide that: S. 2509 163 A. 3009 § 10. The tax law is amended by adding a new section 1262-v to read as follows: § 1262-V. DISPOSITION OF NET COLLECTIONS FROM THE ADDITIONAL RATE OF SALES AND COMPENSATING USE TAX IN CLINTON COUNTY. NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IF THE COUNTY OF CLINTON IMPOSES THE ADDI- TIONAL ONE PERCENT RATE OF SALES AND COMPENSATING USE TAXES AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS FROM SUCH ADDITIONAL RATE SHALL BE PAID TO THE COUNTY AND THE COUNTY SHALL SET ASIDE SUCH NET COLLECTIONS AND USE THEM SOLELY FOR COUNTY PURPOSES. SUCH NET COLLECTIONS SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION AGREE- MENT ENTERED INTO BY THE COUNTY AND THE CITY IN THE COUNTY PURSUANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART. § 11. Section 1262-s of the tax law, as amended by section 3 of item U of subpart C of part XXX of chapter 58 of the laws of 2020, is amended to read as follows: § 1262-s. Disposition of net collections from the additional one-quar- ter of one percent rate of sales and compensating use taxes in the coun- ty of Herkimer. Notwithstanding any contrary provision of law, if the county of Herkimer imposes [the additional] SALES AND COMPENSATING USE TAX AT A RATE THAT IS ONE AND one-quarter [of one] percent [rate of sales and compensating use taxes] ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED BY SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, AS authorized by [section twelve hundred ten-E] CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN of this article [for all or any portion of the period beginning December first, two thousand seven and ending November thirtieth, two thousand twenty-three], the county shall use all net collections [from such] ATTRIBUTABLE TO THE additional one-quarter [of one] percent OF SUCH ADDITIONAL rate to pay the county's expenses for the construction of additional correctional facilities. The net collections from [the] SUCH ADDITIONAL ONE-QUARTER PERCENT OF SUCH additional rate [imposed pursuant to section twelve hundred ten-E of this article] shall be deposited in a special fund to be created by such county separate and apart from any other funds and accounts of the county. Any and all remaining net collections from such additional tax, after the expenses of such construction are paid, shall be deposited by the county of Herkimer in the general fund of such coun- ty for any county purpose. § 12. The tax law is amended by adding a new section 1265 to read as follows: § 1265. REFERENCES TO CERTAIN PROVISIONS AUTHORIZING ADDITIONAL RATES OR TO EXPIRATIONS OF A PERIOD. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY: (A) ANY REFERENCE IN ANY SECTION OF THIS CHAPTER OR OTHER LAW, OR IN ANY LOCAL LAW, ORDINANCE, OR RESOLUTION ADOPTED PURSUANT TO THE AUTHORITY OF THIS ARTICLE, TO NET COLLECTIONS OR REVENUES FROM A TAX IMPOSED BY A COUNTY OR CITY PURSUANT TO THE AUTHORITY OF A CLAUSE, OR TO A SUBCLAUSE OF A CLAUSE, OF SUBPARAGRAPH (I) OR (II) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE REPEALED BY SECTION ONE OR TWO OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-ONE THAT ADDED THIS SECTION OR PURSUANT TO SECTION TWELVE HUNDRED TEN-E OF THIS ARTICLE REPEALED BY SECTION FIVE OF SUCH CHAPTER SHALL BE DEEMED TO BE A REFERENCE TO NET COLLECTIONS OR REVENUES FROM A TAX IMPOSED BY THAT COUNTY OR CITY PURSUANT TO THE AUTHORITY OF THE EQUIVALENT PROVISION OF CLAUSE TWO OF SUBPARAGRAPH (I) OR TO SUBPARAGRAPH (II) OF THE OPENING PARAGRAPH OF SUCH SECTION TWELVE HUNDRED TEN AS ADDED BY SUCH SECTION S. 2509 164 A. 3009 ONE OR TWO OF SUCH CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-ONE; (B) ANY REFERENCE IN THIS CHAPTER OR IN ANY OTHER LAW RELATING TO THE EXPI- RATION OF A PROVISION CONCERNING THE DISTRIBUTION OF REVENUE FROM THE TAXES AUTHORIZED TO BE IMPOSED BY THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE SHALL BE DISREGARDED, AND SUCH PROVISION SHALL CONTINUE IN EFFECT UNLESS LATER AMENDED OR REPEALED. § 13. This act shall take effect immediately. PART M Section 1. Subdivision (jj) of section 1115 of the tax law, as amended by section 1 of part V of chapter 59 of the laws of 2019, is amended to read as follows: (jj) Tangible personal property or services otherwise taxable under this article sold to a related person shall not be subject to the taxes imposed by section eleven hundred five of this article or the compensat- ing use tax imposed under section eleven hundred ten of this article where the purchaser can show that the following conditions have been met to the extent they are applicable: (1)(i) the vendor and the purchaser are referenced as either a "covered company" as described in section 243.2(f) or a "material entity" as described in section 243.2(l) of the Code of Federal Regulations in a resolution plan that has been submitted to an agency of the United States for the purpose of satisfying subpara- graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- Frank Wall Street Reform and Consumer Protection Act (the "Act") or any successor law, or (ii) the vendor and the purchaser are separate legal entities pursuant to a divestiture directed pursuant to subparagraph 5 of paragraph (d) of section one hundred sixty-five of such act or any successor law; (2) the sale would not have occurred between such related entities were it not for such resolution plan or divestiture; and (3) in acquiring such property or services, the vendor did not claim an exemption from the tax imposed by this state or another state based on the vendor's intent to resell such services or property. A person is related to another person for purposes of this subdivision if the person bears a relationship to such person described in section two hundred sixty-seven of the internal revenue code. The exemption provided by this subdivision shall not apply to sales made, services rendered, or uses occurring after June thirtieth, two thousand [twenty-one] TWENTY-FOUR, except with respect to sales made, services rendered, or uses occurring pursuant to binding contracts entered into on or before such date; but in no case shall such exemption apply after June thirtieth, two thousand [twenty-four] TWENTY-SEVEN. § 2. This act shall take effect immediately. PART N Section 1. Subparagraph (vi) of paragraph 1 of subdivision (a) of section 1134 of the tax law, as amended by section 160 of part A of chapter 389 of the laws of 1997, is amended to read as follows: (vi) every person described in subparagraph (i), (ii), (iii), (iv) or (v) of this paragraph or every person who is a vendor solely by reason of clause (D), (E) or (F) of subparagraph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article who or which has had its certificate of authority revoked under paragraph four of this subdivision, shall file with the commissioner a certificate of registration, in a form prescribed by the commissioner, at least twenty S. 2509 165 A. 3009 days prior to commencing business or opening a new place of business or such purchasing, selling or taking of possession or payment, whichever comes first. Every person who is a vendor solely by reason of clause (D) of subparagraph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article shall file with the commissioner a certificate of registration, in a form prescribed by such commissioner, within thirty days after the day on which the cumulative total number of occasions that such person came into the state to deliver property or services, for the immediately preceding four quarterly periods ending on the last day of February, May, August and November, exceeds twelve. Every person who is a vendor solely by reason of clause (E) of subpara- graph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article shall file with the commissioner a certif- icate of registration, in a form prescribed by such commissioner, within thirty days after the day on which the cumulative total, for the imme- diately preceding four quarterly periods ending on the last day of February, May, August and November, of such person's gross receipts from sales of property delivered in this state exceeds [three] FIVE hundred thousand dollars and number of such sales exceeds one hundred. Every person who is a vendor solely by reason of clause (F) of subparagraph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article shall file with the commissioner a certificate of regis- tration, in a form prescribed by such commissioner, within thirty days after the day on which tangible personal property in which such person retains an ownership interest is brought into this state by the person to whom such property is sold, where the person to whom such property is sold becomes or is a resident or uses such property in any manner in carrying on in this state any employment, trade, business or profession. Information with respect to the notice requirements of a purchaser, transferee or assignee and such person's liability pursuant to the provisions of subdivision (c) of section eleven hundred forty-one of this chapter shall be included in or accompany the certificate of regis- tration form furnished the applicant. The commissioner shall also include with such information furnished to each applicant general infor- mation about the tax imposed under this article including information on records to be kept, returns and payments, notification requirements and forms. Such certificate of registration may be amended in accordance with rules promulgated by the commissioner. § 2. This act shall take effect immediately. PART O Section 1. Subdivision (a) of section 1401 of the tax law, as amended by chapter 576 of the laws of 1994, is amended to read as follows: (a) (1) "Person" means an individual, partnership, limited liability company, society, association, joint stock company, corporation, estate, receiver, trustee, assignee, referee or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, any combination of individuals, and any other form of unin- corporated enterprise owned or conducted by two or more persons. (2) "PERSON" SHALL INCLUDE ANY INDIVIDUAL, CORPORATION, PARTNERSHIP OR LIMITED LIABILITY COMPANY OR AN OFFICER OR EMPLOYEE OF ANY CORPORATION (INCLUDING A DISSOLVED CORPORATION), OR A MEMBER OR EMPLOYEE OF ANY PARTNERSHIP, OR A MEMBER, MANAGER OR EMPLOYEE OF A LIMITED LIABILITY COMPANY, WHO AS SUCH OFFICER, EMPLOYEE, MANAGER OR MEMBER IS UNDER A DUTY TO ACT FOR SUCH CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY S. 2509 166 A. 3009 OR INDIVIDUAL PROPRIETORSHIP IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE, OR HAS SO ACTED. § 2. Subdivision (a) of section 1404 of the tax law, as amended by chapter 61 of the laws of 1989, is amended to read as follows: (a) The real estate transfer tax IMPOSED PURSUANT TO SECTION FOURTEEN HUNDRED TWO OF THIS ARTICLE shall be paid by the grantor AND SUCH TAX SHALL NOT BE PAYABLE, DIRECTLY OR INDIRECTLY, BY THE GRANTEE EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION. If the grantor has failed to pay the tax imposed by this article at the time required by section fourteen hundred ten of this article or if the grantor is exempt from such tax, the grantee shall have the duty to pay the tax. Where the grantee has the duty to pay the tax because the grantor has failed to pay, such tax shall be the joint and several liability of the grantor and the grantee; PROVIDED THAT IN THE EVENT OF SUCH FAILURE, THE GRANTEE SHALL HAVE A CAUSE OF ACTION AGAINST THE GRANTOR FOR RECOVERY OF PAYMENT OF SUCH TAX BY THE GRANTEE. § 3. Subdivision (a) of section 1409 of the tax law, as amended by chapter 297 of the laws of 2019, is amended to read as follows: (a) (1) A joint return shall be filed by both the grantor and the grantee for each conveyance whether or not a tax is due thereon other than a conveyance of an easement or license to a public utility as defined in subdivision two of section one hundred eighty-six-a of this chapter or to a public utility which is a provider of telecommunication services as defined in subdivision one of section one hundred eighty- six-e of this chapter, where the consideration is two dollars or less and is clearly stated as actual consideration in the instrument of conveyance. (2) When the grantor or grantee of a deed for A BUILDING USED AS resi- dential real property containing [one- to four-] UP TO FOUR family dwelling units is a limited liability company, the joint return shall not be accepted for filing unless it is accompanied by a document which identifies the names and business addresses of all members, managers, and any other authorized persons, if any, of such limited liability company and the names and business addresses or, if none, the business addresses of all shareholders, directors, officers, members, managers and partners of any limited liability company or other business entity that are to be the members, managers or authorized persons, if any, of such limited liability company. The identification of such names and addresses shall not be deemed an unwarranted invasion of personal priva- cy pursuant to article six of the public officers law. If any such member, manager or authorized person of the limited liability company is itself a limited liability company or other business entity OTHER THAN A PUBLICLY TRADED ENTITY, A REIT, A UPREIT, OR A MUTUAL FUND, the names and addresses of the shareholders, directors, officers, members, manag- ers and partners of the limited liability company or other business entity shall also be disclosed until full disclosure of ultimate owner- ship by natural persons is achieved. For purposes of this subdivision, the terms "members", "managers", "authorized person", "limited liability company" and "other business entity" shall have the same meaning as those terms are defined in section one hundred two of the limited liability company law. (3) The return shall be filed with the recording officer before the instrument effecting the conveyance may be recorded. However, if the tax is paid to the commissioner pursuant to section fourteen hundred ten of this article, the return shall be filed with such commissioner at the time the tax is paid. In that instance, a receipt evidencing the filing S. 2509 167 A. 3009 of the return and the payment of tax shall be filed with the recording officer before the instrument effecting the conveyance may be recorded. The recording officer shall handle such receipt in the same manner as a return filed with the recording officer. § 4. Subdivision (h) of section 1418 of the tax law, as added by section 7 of part X of chapter 56 of the laws of 2010 and as further amended by subdivision (c) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (h) Notwithstanding the provisions of subdivision (a) of this section, the commissioner may furnish information relating to real property transfers obtained or derived from returns filed pursuant to this arti- cle in relation to the real estate transfer tax, to the extent that such information is also required to be reported to the commissioner by section three hundred thirty-three of the real property law and section five hundred seventy-four of the real property tax law and the rules adopted thereunder, provided such information was collected through a combined process established pursuant to an agreement entered into with the commissioner pursuant to paragraph viii of subdivision one-e of section three hundred thirty-three of the real property law. The commis- sioner may redisclose such information to the extent authorized by section five hundred seventy-four of the real property tax law. THE COMMISSIONER MAY ALSO DISCLOSE ANY INFORMATION REPORTED PURSUANT TO PARAGRAPH TWO OF SUBDIVISION (A) OF SECTION FOURTEEN HUNDRED NINE OF THIS ARTICLE. § 5. This act shall take effect immediately; provided however that sections one and two of this act shall take effect July 1, 2021, and shall apply to conveyances occurring on or after such date other than conveyances that are made pursuant to binding written contracts entered into on or before April 1, 2021, provided that the date of execution of such contract is confirmed by independent evidence, such as the record- ing of the contract, payment of a deposit or other facts and circum- stances as determined by the commissioner of taxation and finance. PART P Section 1. Section 480-a of the tax law is amended by adding a new subdivision 6 to read as follows: 6. (A) NO RETAIL DEALER WHO HAS ITS RETAIL DEALER REGISTRATION CANCELLED, SUSPENDED OR REVOKED PURSUANT TO THIS SECTION OR HAS BEEN FORBIDDEN FROM SELLING CIGARETTES OR TOBACCO PRODUCTS PURSUANT TO PARA- GRAPH (J) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY OF THIS ARTICLE SHALL POSSESS CIGARETTES OR TOBACCO PRODUCTS IN ANY PLACE OF BUSINESS, CART, STAND, TRUCK OR OTHER MERCHANDISING DEVICE IN THIS STATE BEGINNING ON THE TENTH DAY AFTER SUCH CANCELLATION, SUSPENSION, REVOCA- TION, OR FORBIDDANCE AND CONTINUING FOR THE DURATION OF THE SAME; PROVIDED HOWEVER, SUCH RETAIL DEALER SHALL NOT BE PROHIBITED BEFORE THE TENTH DAY AFTER SUCH CANCELLATION, SUSPENSION, REVOCATION, OR FORBID- DANCE FROM SELLING OR TRANSFERRING ITS INVENTORY OF LAWFULLY STAMPED CIGARETTES OR TOBACCO PRODUCTS ON WHICH THE TAXES IMPOSED BY THIS ARTI- CLE HAVE BEEN ASSUMED OR PAID TO A PROPERLY REGISTERED RETAIL DEALER WHOSE REGISTRATION IS NOT CANCELLED, SUSPENDED, OR REVOKED OR WHO HAS NOT BEEN FORBIDDEN FROM SELLING CIGARETTES OR TOBACCO PRODUCTS. (B) NO RETAIL DEALER SHALL POSSESS CIGARETTES OR TOBACCO PRODUCTS IN ANY PLACE OF BUSINESS, CART, STAND, TRUCK OR OTHER MERCHANDISING DEVICE IN THIS STATE UNLESS IT HAS OBTAINED A VALID RETAIL DEALER REGISTRATION FROM THE COMMISSIONER. S. 2509 168 A. 3009 (C) THE POSSESSION OF CIGARETTES OR TOBACCO PRODUCTS IN VIOLATION OF PARAGRAPH (A) OR (B) OF THIS SUBDIVISION SHALL BE PRESUMPTIVE EVIDENCE THAT SUCH CIGARETTES OR TOBACCO PRODUCTS ARE BEING SOLD IN VIOLATION OF THIS SECTION AND SECTION FOUR HUNDRED EIGHTY OF THIS ARTICLE AND, IN ADDITION TO ANY OTHER APPLICABLE PENALTIES, SHALL BE SUBJECT TO THE PENALTIES AUTHORIZED BY SUBDIVISION THREE OF THIS SECTION. § 2. Any retail dealer who, prior to the effective date of this act, had its retail dealer registration cancelled, suspended, or revoked pursuant to section four hundred eighty-a of the tax law or was forbid- den from selling cigarettes or tobacco products pursuant to paragraph (j) of subdivision one of section four hundred eighty of the tax law and such cancellation, suspension, revocation, or forbiddance remains in effect as of the effective date of this act, shall be prohibited from possessing cigarettes and tobacco products beginning on the tenth day after the effective date of this act and continuing for as long as such cancellation, suspension, revocation, or forbiddance shall remain in effect; provided however, such retail dealer shall not be prohibited before the tenth day after the effective date of this act from selling or transferring its inventory of lawfully stamped cigarettes or tobacco products on which the taxes imposed by this article have been assumed or paid to a properly registered retail dealer whose registration is not cancelled, suspended, or revoked or who has not been forbidden from selling cigarettes or tobacco products. § 3. This act shall take effect immediately. PART Q Section 1. Subdivision 1 of section 429 of the tax law, as amended by chapter 433 of the laws of 1978, is amended to read as follows: 1. Every distributor, noncommercial importer or other person shall, on or before the twentieth day of each month, file with the department of taxation and finance a return, on forms to be prescribed by the [tax commission] COMMISSIONER and furnished by such department, stating sepa- rately the number of gallons, or lesser quantity, of beers, and the number of liters, or lesser quantity, of wines and liquors sold or used by such distributor, noncommercial importer or other person in this state during the preceding calendar month, except that the [tax commis- sion] COMMISSIONER may, if [it] HE OR SHE deems it necessary [in order] to [insure] FACILITATE the EFFICIENT REPORTING AND payment of the tax imposed by this article, require returns to be made at such times and covering such periods as [it] HE OR SHE may deem necessary. Such return shall contain such further information as the [tax commission] COMMIS- SIONER shall require. The fact that the name of the distributor, noncom- mercial importer or other person is signed to a filed return shall be prima facie evidence for all purposes that the return was actually signed by such distributor, noncommercial importer or other person. § 2. Section 505 of the tax law, as amended by section 2 of part E of chapter 60 of the laws of 2007, is amended to read as follows: § 505. Returns. Every carrier subject to this article and every carri- er to whom a certificate of registration was issued shall file on or before the last day of each month a return for the preceding calendar month where a carrier's total tax liability under this article for the preceding calendar year exceeded [four] TWELVE thousand dollars. Where a carrier's total tax liability under this article for the preceding calendar year did not exceed [four] TWELVE thousand dollars or where a carrier was not subject to such tax in the preceding calendar year, S. 2509 169 A. 3009 returns shall be filed quarterly, on or before the last day of the calendar month following each of the calendar quarters: January through March, April through June, July through September and October through December. Provided, however, if the commissioner consents thereto in writing, any carrier may file a return on or before the thirtieth day after the close of any different period, if the carrier's books are regularly kept on a periodic basis other than a calendar month or quar- ter. The commissioner may permit the filing of returns on an annual basis, provided the carrier was subject to the tax under this article during the entire preceding calendar year and the carrier's total tax liability under this article for such year did not exceed [two hundred fifty] TWELVE HUNDRED dollars. Such annual returns shall be filed on or before January thirty-first of the succeeding calendar year. Returns shall be filed with the commissioner on forms to be furnished by such commissioner for such purpose and shall contain such data, information or matter as the commissioner may require to be included therein. The fact that a carrier's name is signed to a filed return shall be prima facie evidence for all purposes that the return was actually signed by such carrier. The commissioner may grant a reasonable extension of time for filing returns whenever good cause exists and may waive the filing of returns if a carrier is not subject to the tax imposed by this arti- cle for the period covered by the return. Every return shall have annexed thereto a certification to the effect that the statements contained therein are true. § 3. This act shall take effect immediately; provided, however, that section two of this act shall apply to tax returns required to be filed on or after January 1, 2022. PART R Section 1. Section 1280 of the tax law is amended by adding a new subdivision (v) to read as follows: (V) "TECHNOLOGY SERVICE PROVIDER" OR "TSP" MEANS A PERSON THAT ACTS BY EMPLOYMENT, CONTRACT OR OTHERWISE ON BEHALF OF ONE OR MORE TAXICAB OWNERS OR HAIL VEHICLE OWNERS TO COLLECT THE TRIP RECORD FOR A TAXICAB TRIP OR HAIL VEHICLE TRIP. § 2. Subdivision (b) of section 1283 of the tax law, as amended by chapter 9 of the laws of 2012, is amended to read as follows: (b) (1) If the taxicab owner has designated an agent, then the agent shall be jointly liable with the taxicab owner for the tax on trips occurring during the period that such designation is in effect. Even if the TLC has specified that the taxicab owner's agent cannot operate as an agent, that agent shall be jointly liable with the taxicab owner if the agent has acted for the taxicab owner. During the period that a taxicab owner's designation of an agent is in effect, the agent shall file the returns required by this article and pay any tax due with such return, but the taxicab owner shall not be relieved of liability for tax, penalty or interest due under this article, or for the filing of returns required to be filed, unless the agent has timely filed accurate returns and timely paid the tax required to be paid under this article. If a taxicab owner has designated an agent, then the agent must perform any act this article requires the taxicab owner to perform, but the failure of such agent to perform any such act shall not relieve the taxicab owner from the obligation to perform such act or from any liability that may arise from failure to perform the act. S. 2509 170 A. 3009 (2) (A) NOTWITHSTANDING THE FOREGOING, A TSP THAT COLLECTS THE TRIP RECORD AND THE TRIP FARE ON BEHALF OF A TAXICAB OWNER OR A HAIL VEHICLE OWNER SHALL BE JOINTLY LIABLE WITH THE TAXICAB OWNER OR HAIL VEHICLE OWNER FOR THE TAX DUE ON SUCH TRIPS. FOR ANY PERIOD THAT THE TSP COLLECTS TRIP RECORDS ON BEHALF OF A TAXICAB OWNER OR HAIL VEHICLE OWNER, THE TSP SHALL FILE RETURNS REPORTING ALL TRIP RECORDS AND, AFTER RETAINING ANY FEES TO WHICH IT IS ENTITLED PURSUANT TO A CONTRACT WITH SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, SHALL REMIT THE TAXES DUE ON ALL FARES COLLECTED BY THE TSP. (B) THE TSP, AFTER RETAINING THE FEES DESCRIBED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, SHALL ALSO REMIT THE TAXES DUE ON ANY TAXICAB TRIP OR HAIL VEHICLE TRIP FOR WHICH IT MAINTAINED THE TRIP RECORD BUT DID NOT COLLECT THE FARE, FROM ANY FARES IT COLLECTED ON BEHALF OF ANY SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, BEFORE IT RELEASES ANY PROCEEDS TO THE TAXICAB OWNER OR HAIL VEHICLE OWNER. IF THE TSP FAILS TO COMPLY WITH THE REQUIREMENTS OF THIS SUBPARAGRAPH, SUCH TSP SHALL BE LIABLE FOR THE TAXES DUE ON SUCH TRIPS UP TO THE AMOUNT IT RELEASED TO THE TAXICAB OWNER OR HAIL VEHICLE OWNER, OR ANY PERSON ON BEHALF OF SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER. HOWEVER, THE TAXICAB OWNER, HAIL VEHICLE OWNER OR THEIR AGENTS SHALL NOT BE RELIEVED OF ANY LIABILITY FOR THE TAX, PENALTY OR INTEREST DUE UNDER THIS ARTICLE, OR FOR FILING OF RETURNS REQUIRED TO BE FILED, UNLESS THE TSP HAS TIMELY FILED ACCURATE RETURNS AND TIMELY PAID THE TAX REQUIRED TO BE PAID UNDER THIS ARTICLE. § 3. Subdivision (a) of section 1299-B of the tax law, as added by section 2 of part NNN of chapter 59 of the laws of 2018, is amended to read as follows: (a) Notwithstanding any provision of law to the contrary, any person that dispatches a motor vehicle by any means that provides transporta- tion that is subject to a surcharge imposed by this article, including transportation network companies as defined in article forty-four-B of the vehicle and traffic law, shall be liable for the surcharge imposed by this article, except that in the case of taxicab trips and HAIL vehi- cle trips that are also subject to tax pursuant to article twenty-nine-A of this chapter[, only the taxicab owner or HAIL base liable for that tax shall be the person liable for the surcharge imposed by this arti- cle]: (1) THE TSP SHALL BE LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE FOR ALL TRIPS FOR WHICH THE TSP COLLECTED THE TRIP RECORD AND THE SURCHARGE, AND SHALL BE RESPONSIBLE FOR FILING RETURNS; AND, AFTER RETAINING ANY FEES TO WHICH IT IS ENTITLED PURSUANT TO A CONTRACT WITH SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, SHALL REMIT THE SURCHARGES ON SUCH TRIPS TO THE DEPARTMENT. (2) THE TSP, AFTER RETAINING THE FEES DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION, SHALL ALSO REMIT THE SURCHARGES DUE ON ANY TAXICAB TRIP OR HAIL VEHICLE TRIP FOR WHICH IT MAINTAINED THE TRIP RECORD BUT DID NOT COLLECT THE FARE, FROM ANY FARES IT COLLECTED ON BEHALF OF ANY SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, BEFORE IT RELEASES ANY PROCEEDS TO THE TAXICAB OWNER OR HAIL VEHICLE OWNER. WHENEVER THE TSP FAILS TO COMPLY WITH THE REQUIREMENTS OF THE PRECEDING SENTENCE, THE TSP SHALL BE LIABLE FOR THE SURCHARGES DUE ON SUCH TRIPS UP TO THE AMOUNT IT RELEASED TO THE TAXICAB OWNER OR HAIL VEHICLE OWNER, OR ANY PERSON ON BEHALF OF SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER. HOWEVER, THE TAXI- CAB OWNER OR HAIL BASE SHALL BE JOINTLY AND SEVERALLY LIABLE WITH THE TSP FOR SUCH SURCHARGES. For purposes of this section, the terms "taxi- cab trips," "HAIL vehicle trips," "taxicab owner," [and] "HAIL base", AND "TSP" shall have the same meaning as they do in section twelve hundred eighty of this chapter. S. 2509 171 A. 3009 § 4. Section 1299-F of the tax law is amended by adding a new subdivi- sion (e) to read as follows: (E) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, PERMIT THE PROPER OFFI- CER OF THE TAXI AND LIMOUSINE COMMISSION OF THE CITY OF NEW YORK (TLC) OR THE DULY AUTHORIZED REPRESENTATIVE OF SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR SUCH OFFICER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH PERSON WITH INFORMATION CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF TAX LIABILITY UNDER THIS ARTICLE; BUT SUCH PERMISSION SHALL BE GRANTED OR SUCH INFORMATION FURNISHED ONLY IF THE TLC SHALL HAVE FURNISHED THE COMMISSIONER WITH ALL INFORMATION REQUESTED BY THE COMMISSIONER PURSUANT TO THIS ARTICLE AND SHALL HAVE PERMITTED THE COMMISSIONER OR THE COMMISSIONER'S AUTHORIZED REPRESENTATIVE TO MAKE ANY INSPECTION OF ANY RECORDS OR REPORTS CONCERN- ING FOR-HIRE TRANSPORTATION TRIPS SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, AND ANY PERSONS REQUIRED TO COLLECT SUCH SURCHARGE, FILED WITH OR POSSESSED BY THE TLC THAT THE COMMISSIONER MAY HAVE REQUESTED FROM THE TLC. PROVIDED, FURTHER, THAT THE COMMISSIONER MAY DISCLOSE TO THE TLC WHETHER OR NOT A PERSON LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE HAS PAID ALL OF THE SURCHARGES DUE UNDER THIS ARTICLE AS OF ANY GIVEN DATE. § 5. This act shall take effect immediately and shall apply to trips occurring on or after July 1, 2021. PART S Section 1. Paragraph 1 of subdivision (g) of section 32 of the tax law, as added by section 2 of part VV of chapter 59 of the laws of 2009, is amended to read as follows: (1) If a tax return preparer or facilitator is required to register or re-register with the department pursuant to paragraph one or three of subdivision (b) of this section, as applicable, and fails to do so in accordance with the terms of this section, then the tax return preparer [of] OR facilitator must pay a penalty of [two] FIVE hundred [fifty] dollars FOR THE FIRST DAY OF NON-COMPLIANCE AND TWO HUNDRED DOLLARS FOR EACH SUBSEQUENT DAY OF NON-COMPLIANCE THEREAFTER. THE MAXIMUM PENALTY THAT MAY BE IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER OR FACILITATOR DURING ANY CALENDAR YEAR MUST NOT EXCEED TEN THOUSAND DOLLARS. [Provided, however, that if the tax return preparer or facili- tator complies with the registration requirements of this section within ninety calendar days after notification of assessment of this penalty is sent by the department, then this penalty must be abated. If the tax return preparer or facilitator continues to fail to register or re-re- gister after the ninety calendar day period, the tax return preparer or facilitator must pay an additional penalty of five hundred dollars if the failure is for not more than one month, with an additional five hundred dollars for each additional month or fraction thereof during which the failure continues. Once the ninety calendar days specified in this paragraph have expired, the] THE penalty can be waived only for good cause shown by the tax return preparer or facilitator. § 2. Paragraph 2 of subdivision (g) of section 32 of the tax law, as added by section 2 of part VV of chapter 59 of the laws of 2009, is amended to read as follows: (2) If a commercial tax return preparer fails to pay the fee as required in paragraph one of subdivision (c) of this section, for a S. 2509 172 A. 3009 calendar year, then the commercial tax return preparer must pay a penal- ty of fifty dollars for each return the commercial tax return preparer has filed with the department in that calendar year. [Provided however, that if the commercial tax return preparer complies with the payment requirements of paragraph one of subdivision (c) of this section, within ninety calendar days after notification of the assessment of this penal- ty is sent by the department, then this penalty must be abated.] The maximum penalty that may be imposed under this paragraph on any commer- cial tax return preparer during any calendar year must not exceed [five] TEN thousand dollars. [Once the ninety calendar days specified in this paragraph have expired, the] THE penalty can be waived only for good cause shown by the commercial tax return preparer. § 3. Section 32 of the tax law is amended by adding a new subdivision (h) to read as follows: (H) (1) TAX RETURN PREPARERS AND FACILITATORS MUST PROMINENTLY AND CONSPICUOUSLY DISPLAY A COPY OF THEIR REGISTRATION CERTIFICATE ISSUED PURSUANT TO THIS SECTION, FOR THE CURRENT REGISTRATION PERIOD, AT THEIR PLACE OF BUSINESS AND AT ANY OTHER LOCATION WHERE THEY PROVIDE TAX RETURN PREPARATION AND/OR FACILITATION SERVICES, IN AN AREA WHERE TAXPAYERS USING THEIR SERVICES ARE ABLE TO SEE AND REVIEW SUCH REGISTRA- TION CERTIFICATE. (2) TAX RETURN PREPARERS AND FACILITATORS MUST PROMINENTLY AND CONSPICUOUSLY DISPLAY AT THEIR PLACE OF BUSINESS AND AT ANY OTHER LOCATION WHERE THEY PROVIDE TAX RETURN PREPARATION AND/OR FACILITATION SERVICES THE FOLLOWING DOCUMENTS: (A) A CURRENT PRICE LIST, IN AT LEAST FOURTEEN-POINT TYPE, THAT INCLUDES, BUT IS NOT LIMITED TO, A LIST OF ALL SERVICES OFFERED BY THE TAX RETURN PREPARER AND/OR FACILITATOR; THE MINIMUM FEE CHARGED FOR EACH SERVICE, INCLUDING THE FEE CHARGED FOR EACH TYPE OF FEDERAL OR NEW YORK STATE TAX RETURN TO BE PREPARED AND FACILITATION SERVICE TO BE PROVIDED; AND A LIST OF EACH FACTOR THAT MAY INCREASE A STATED FEE AND THE SPECIF- IC ADDITIONAL FEES OR RANGE OF POSSIBLE ADDITIONAL FEES WHEN EACH FACTOR APPLIES; AND (B) A COPY OF THE MOST RECENT CONSUMER BILL OF RIGHTS REGARDING TAX PREPARERS PUBLISHED BY THE DEPARTMENT PURSUANT TO SECTION THREE HUNDRED SEVENTY-TWO OF THE GENERAL BUSINESS LAW. (3) A TAX RETURN PREPARER OR FACILITATOR WHO FAILS TO COMPLY WITH ANY OF THE REQUIREMENTS OF THIS SUBDIVISION MUST PAY A PENALTY OF FIVE HUNDRED DOLLARS FOR THE FIRST DAY OF NON-COMPLIANCE AND TWO HUNDRED DOLLARS FOR EACH SUBSEQUENT DAY OF NON-COMPLIANCE THEREAFTER. THE MAXI- MUM PENALTY THAT MAY BE IMPOSED UNDER THIS SUBDIVISION ON ANY TAX RETURN PREPARER OR FACILITATOR DURING ANY CALENDAR YEAR MUST NOT EXCEED TEN THOUSAND DOLLARS. THE PENALTY CAN BE WAIVED ONLY FOR GOOD CAUSE SHOWN BY THE TAX RETURN PREPARER OR FACILITATOR. § 4. Subdivision (g) of section 32 of the tax law, as added by section 2 of part VV of chapter 59 of the laws of 2009, is relettered subdivi- sion (i). § 5. This act shall take effect immediately; provided, however, that paragraph (3) of subdivision (h) of section 32 of the tax law, as added by section three of this act, shall take effect January 1, 2022. PART T Section 1. Section 2016 of the tax law, as amended by chapter 401 of the laws of 1987, is amended to read as follows: S. 2509 173 A. 3009 § 2016. Judicial review. A decision of the tax appeals tribunal, which is not subject to any further administrative review, shall finally and irrevocably decide all the issues which were raised in proceedings before the division of tax appeals upon which such decision is based unless, within four months after notice of such decision is served by the tax appeals tribunal upon every party to the proceeding before such tribunal by certified mail or personal service, the petitioner who commenced the proceeding [petitions] OR THE COMMISSIONER, OR BOTH, PETI- TION for judicial review in the manner provided by article seventy-eight of the civil practice law and rules, except as otherwise provided in this [section] CHAPTER. Such service by certified mail shall be complete upon deposit of such notice, enclosed in a post-paid properly addressed wrapper, in a post office or official depository under the exclusive care and custody of the United States postal service. [The] WHERE THE petitioner WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION shall designate the tax appeals tribunal and the commissioner [of taxation and finance] as respondents in the proceeding for judicial review. WHERE THE COMMISSIONER FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION SHALL DESIGNATE THE TAX APPEALS TRIBUNAL AND THE PETITIONER WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS AS RESPOND- ENTS IN THE PROCEEDING FOR JUDICIAL REVIEW. The tax appeals tribunal shall not participate in proceedings for judicial review of its deci- sions and such proceedings for judicial review shall be commenced in the appellate division of the supreme court, third department. In all other respects the provisions and standards of article seventy-eight of the civil practice law and rules shall apply. The record to be reviewed in such proceedings for judicial review shall include the determination of the administrative law judge, the decision of the tax appeals tribunal, the stenographic transcript of the hearing before the administrative law judge, the transcript of any oral proceedings before the tax appeals tribunal and any exhibit or document submitted into evidence at any proceeding in the division of tax appeals upon which such decision is based. § 2. This act shall take effect immediately and shall apply to deci- sions and orders issued by the tax appeals tribunal on or after such date. PART U Section 1. Paragraphs i and v 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, are amended to read as follows: i. A recording officer shall not record or accept for [record] RECORD- ING any conveyance of real property affecting land in New York state unless accompanied by ONE OF THE FOLLOWING: (1) A RECEIPT ISSUED BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW; OR (2) 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. S. 2509 174 A. 3009 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 provision of law to the contrary, affirmants may be allowed, but shall not be required, to sign such affirmations electronically. § 2. Paragraphs vii and viii of subdivision 1-e of section 333 of the real property law are REPEALED. § 3. 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 subdivision (d) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 3. [The] (I) WHEN A recording officer [of every county and the city of New York] IS PRESENTED WITH A CONVEYANCE FOR RECORDING THAT IS ACCOMPA- NIED BY A RECEIPT ISSUED BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW, SUCH RECORDING OFFICER SHALL BE RELIEVED OF THE RESPONSI- BILITY TO COLLECT THE FEE DESCRIBED BY THIS SUBDIVISION. HE OR SHE SHALL NONETHELESS BE ENTITLED TO THE PORTION OF SUCH FEE THAT HE OR SHE WOULD OTHERWISE HAVE DEDUCTED PURSUANT TO THIS SUBDIVISION, AS PROVIDED BY SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW. (II) WHEN A RECORDING OFFICER IS PRESENTED WITH A CONVEYANCE FOR RECORDING THAT IS NOT ACCOMPANIED BY SUCH A RECEIPT, HE OR SHE 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 para- graph 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 SUBPARAGRAPH TWO OF PARAGRAPH I OF 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 twen- ty-one of title eleven of the administrative code of the city of New York, except where a real property transfer reporting form is also submitted for recording for the transfer as required under SUBPARAGRAPH TWO OF PARAGRAPH I OF 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. S. 2509 175 A. 3009 § 4. Subsection (d) of section 663 of the tax law, as amended by section 1 of part P of chapter 686 of the laws of 2003, is amended to read as follows: (d) A recording officer shall not record or accept for [record] RECORDING any deed unless ONE OF THE FOLLOWING CONDITIONS IS SATISFIED: (1) IT IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMISSIONER INDICAT- ING THAT THE ESTIMATED TAX REQUIRED BY THIS SECTION HAS BEEN PAID TO THE COMMISSIONER EITHER ELECTRONICALLY OR AS OTHERWISE PRESCRIBED BY HIM OR HER; (2) IT IS accompanied by a form prescribed by the commissioner pursu- ant to subsection (b) of this section and the payment of any estimated tax shown as payable on such form[,]; or [unless] (3) such RECEIPT OR form includes a certification by the transferor that this section is inapplicable to the sale or transfer. § 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] 1. WHEN A recording officer designated to act as such agent IS PRESENTED WITH A CONVEYANCE FOR RECORDING THAT IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMISSIONER PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THIS ARTICLE, SUCH RECORDING OFFICER SHALL BE RELIEVED OF THE RESPONSIBILITY TO COLLECT THE REAL ESTATE TRANSFER TAX THEREON. HE OR SHE SHALL NONETHELESS BE ENTITLED TO THE PORTION OF SUCH TAX THAT HE OR SHE WOULD OTHERWISE HAVE RETAINED PURSUANT TO THIS SUBDIVISION, AS PROVIDED BY SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW. 2. WHEN A RECORDING OFFICER IS PRESENTED WITH A CONVEYANCE FOR RECORD- ING THAT IS NOT ACCOMPANIED BY A RECEIPT DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION, HE OR SHE SHALL COLLECT THE APPLICABLE REAL ESTATE TRANSFER TAX AND 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 effecting 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 taxation 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 regu- S. 2509 176 A. 3009 lations of the commissioner 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. § 6. Subdivision (b) of 1409 of the tax law, as added by chapter 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 THIS 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 ONE OF THE FOLLOWING CONDITIONS IS SATISFIED: (1) THE INSTRUMENT IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMIS- SIONER PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY- THREE OF THIS ARTICLE; OR (2) the return required by section fourteen hundred nine of this arti- cle has been filed and the real estate transfer tax due, if any, shall have been paid as provided in this section. § 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 ONE OF THIS SUBDIVISION INTO A CONSOLIDATED REAL PROPERTY TRANSFER FORM TO BE FILED WITH HIM OR HER ELECTRONICALLY; PROVIDED: (1) 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 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. (2) 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. S. 2509 177 A. 3009 (3) WHEN A CONSOLIDATED REAL PROPERTY TRANSFER FORM IS ELECTRONICALLY SUBMITTED TO THE DEPARTMENT BY EITHER THE GRANTOR OR GRANTEE OR A DULY AUTHORIZED AGENT THEREOF, 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 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 S. 2509 178 A. 3009 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 SHALL NOTIFY THE COMMISSIONER THAT SUCH JURISDICTION WILL FOLLOW THE SYSTEM AUTHORIZED PURSUANT TO THIS SECTION TO BE USED THEREIN, IN WRITING. § 9. This act shall take effect immediately. PART V Section 1. This Part enacts into law components of legislation relat- ing to the administration of the STAR program authorized by section 425 of the real property tax law and subsection (eee) of section 606 of the tax law. Each component is wholly contained within a Subpart identified as Subparts A through E. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes refer- ence to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corre- sponding section of the Subpart in which it is found. Section three of this Part sets forth the general effective date of this Part. SUBPART A Section 1. Paragraphs (a) and (b) of subdivision 16 of section 425 of the real property tax law, as amended by section 5 of part A of chapter 73 of the laws of 2016, are amended to read as follows: (a) Beginning with assessment rolls used to levy school district taxes for the two thousand sixteen--two thousand seventeen school year, no application for an exemption under this section may be approved unless at least one of the applicants held title to the property on the taxable status date of the assessment roll that was used to levy school district taxes for the two thousand fifteen--two thousand sixteen school year and the property was granted an exemption pursuant to this section on that assessment roll. IN ADDITION, BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR, NO APPLICATION FOR A NEW ENHANCED EXEMPTION UNDER SUBDIVISION FOUR OF THIS SECTION MAY BE APPROVED. In the event that an application is submitted to the assessor that cannot be approved due to this restriction, the assessor shall notify the applicant that he or she is required by law to deny the application, but that, in lieu of a STAR exemption, the applicant may claim the personal income tax credit authorized by subsection (eee) of section six hundred six of the tax law if eligible, and that the applicant may contact the department of taxa- tion and finance for further information. The commissioner shall provide a form for assessors to use, at their option, when making this notification. No STAR exemption may be granted on the basis of an appli- cation that is not approvable due to this restriction. (b) Where property received an exemption pursuant to this section on an assessment roll used to levy school district taxes for the two thou- sand fifteen--two thousand sixteen school year, and at least one of its S. 2509 179 A. 3009 owners held title to the property on the taxable status date of such assessment roll, the exemption shall continue to be granted on subse- quent assessment rolls without regard to the provisions of this subdivi- sion as long as all applicable requirements of this section are satis- fied. In addition, such exemption shall be subject to modification as follows: (i) A basic STAR exemption shall be changed to an enhanced STAR exemption ON AN ASSESSMENT ROLL USED TO LEVY SCHOOL DISTRICT TAXES FOR A SCHOOL YEAR PRIOR TO THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY- TWO SCHOOL YEAR if the owners and spouses primarily residing on the property file a timely application showing that their ages and incomes meet the requirements of subdivision four of this section. BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR, NO APPLICATION FOR A NEW ENHANCED EXEMPTION UNDER THIS SECTION MAY APPROVED. IN THE EVENT THAT AN APPLICATION IS SUBMITTED TO THE ASSESSOR THAT CANNOT BE APPROVED DUE TO THIS RESTRICTION, THE ASSESSOR SHALL NOTIFY THE APPLI- CANT THAT HE OR SHE IS REQUIRED BY LAW TO DENY THE APPLICATION, BUT THAT THE APPLICANT MAY APPLY FOR AN ENHANCED STAR CREDIT PURSUANT TO PARA- GRAPH FOUR OF SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW IF ELIGIBLE, AND THAT THE APPLICANT MAY CONTACT THE DEPARTMENT OF TAXA- TION AND FINANCE FOR INFORMATION ON HOW TO APPLY FOR THE CREDIT. THE ASSESSOR SHALL FURTHER NOTIFY THE APPLICANT THAT IF HE OR SHE DOES NOT WISH TO SWITCH TO THE CREDIT, HE OR SHE MAY CONTINUE RECEIVING THE BASIC STAR EXEMPTION AS LONG AS THE ELIGIBILITY REQUIREMENTS FOR THAT EXEMPTION CONTINUE TO BE SATISFIED. THE COMMISSIONER SHALL PROVIDE A FORM FOR ASSESSORS TO USE, AT THEIR OPTION, WHEN MAKING THIS NOTIFICA- TION. NO ENHANCED STAR EXEMPTION MAY BE GRANTED ON THE BASIS OF AN APPLICATION THAT IS NOT APPROVABLE DUE TO THIS RESTRICTION. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO PRECLUDE THE RESTORATION OF A PREVIOUSLY-GRANTED ENHANCED STAR EXEMPTION PURSUANT TO SUBPARAGRAPHS (II) OR (III) OF THIS PARAGRAPH. (ii) An enhanced STAR exemption shall be changed to a basic STAR exemption if the combined income of the owners and spouses primarily residing on the property increases above the limit set by subdivision four of this section, subject to the provisions of subparagraph (iii) of this paragraph, provided that if their combined income falls below the limit set by subdivision four of this section in the future, AND THEY HAVE NOT SWITCHED TO THE STAR CREDIT, their enhanced STAR exemption may be resumed upon timely application. (iii) A STAR exemption shall be discontinued if the combined income of the owners and spouses primarily residing on the property increases above the limit set by subdivision three of this section, provided that if their income falls below such limit in the future, AND THEY HAVE NOT SWITCHED TO THE STAR CREDIT, their STAR exemption may be resumed upon timely application. (iv) A STAR exemption shall be permanently discontinued if the owners fail to satisfy the applicable residency or ownership requirement, or both. § 2. This act shall take effect immediately. SUBPART B Section 1. Subparagraph (i) of paragraph (c) of subdivision 17 of section 425 of the real property tax law, as added by section 2 of part G of chapter 39 of the laws of 2019, is amended to read as follows: S. 2509 180 A. 3009 (i) A STAR credit switch may be deferred if the application for the credit is submitted after a cutoff date set by the commissioner. When setting a cutoff date, the commissioner shall take into account the time required to ensure that the STAR exemptions of all STAR credit appli- cants in the assessing unit will be removed before school tax bills are prepared. The commissioner shall specify the applicable cutoff dates after taking into account local assessment calendars, provided that different cutoff dates may be set for municipalities with different assessment calendars, and provided further that any such cutoff date may be no earlier than the [fifteenth] SIXTY-FIRST day prior to the date on which the applicable final assessment roll is required by law to be completed and filed. § 2. This act shall take effect immediately. SUBPART C Section 1. Subsection (c) of section 651 of the tax law, as amended by section 3 of part QQ of chapter 59 of the laws of 2019, is amended to read as follows: (c) Decedents. The return for any deceased individual shall be made and filed by his OR HER executor, administrator, or other person charged with his OR HER property. If a final return of a decedent is for a frac- tional part of a year, the due date of such return shall be the fifteenth day of the fourth month following the close of the twelve- month period which began with the first day of such fractional part of the year. Notwithstanding any provision of law to the contrary, when a return has been filed for a decedent, the commissioner may disclose the decedent's name, address, and the date of death to the director of real property tax services of the county AND TO THE ASSESSOR OF THE ASSESSING UNIT in which the address reported on such return is located. § 2. This act shall take effect immediately. SUBPART D Section 1. Paragraphs (b) and (c) of subdivision 2 of section 200-a of the real property tax law, as amended by section 2 of part J of chapter 57 of the laws of 2013, are amended to read as follows: (b) The power to hear and determine reviews relating to determinations made by county equalization agencies, as provided by sections eight hundred sixteen and eight hundred eighteen of this chapter[; and (c) The power to hear and determine reviews relating to determinations of STAR eligibility made by the department of taxation and finance as provided by section four hundred twenty five of this chapter]. § 2. Subdivision 3 of section 200-a of the real property tax law, as added by section 7 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 3. The provisions of section five hundred twenty-five of this chapter shall apply so far as practicable to a hearing conducted by the board of real property tax services pursuant to SECTIONS EIGHT HUNDRED SIXTEEN AND EIGHT HUNDRED EIGHTEEN OF this chapter. § 3. Paragraph (a-2) of subdivision 6 of section 425 of the real prop- erty tax law, as amended by section 1 of part TT of chapter 59 of the laws of 2019, is amended to read as follows: (a-2) Notwithstanding any provision of law to the contrary, where an application for the "enhanced" STAR exemption authorized by subdivision four of this section has not been filed on or before the taxable status S. 2509 181 A. 3009 date, and the owner believes that good cause existed for the failure to file the application by that date, the owner may, no later than the last day for paying school taxes without incurring interest or penalty, submit a written request to the commissioner asking him or her to extend the filing deadline and grant the exemption. Such request shall contain an explanation of why the deadline was missed, and shall be accompanied by an application, reflecting the facts and circumstances as they existed on the taxable status date. After consulting with the assessor, the commissioner may extend the filing deadline and grant the exemption if the commissioner is satisfied that (i) good cause existed for the failure to file the application by the taxable status date, and that (ii) the applicant is otherwise entitled to the exemption. The commis- sioner shall mail notice of his or her determination to such owner and the assessor. If the determination states that the commissioner has granted the exemption, the [assessor shall thereupon be authorized and directed to correct the assessment roll accordingly, or, if another person has custody or control of the assessment roll, to direct that person to make the appropriate corrections. If the correction is not made before school taxes are levied, the school district authorities shall be authorized and directed to take account of the fact that the commissioner has granted the exemption by correcting the applicant's tax bill and/or issuing a refund accordingly] DETERMINATION SHALL BE IMPLE- MENTED IN THE MANNER PROVIDED BY SUBDIVISION FIFTEEN OF THIS SECTION. § 4. Clauses (C) and (D) of subparagraph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law are REPEALED and a new clause (C) is added to read as follows: (C) IF THE COMMISSIONER DETERMINES THAT THE ENHANCED EXEMPTION SHOULD BE REPLACED WITH A BASIC EXEMPTION BECAUSE THE PROPERTY IS ONLY ELIGIBLE FOR A BASIC EXEMPTION, OR DETERMINES THAT THE ENHANCED EXEMPTION SHOULD BE REMOVED OR DENIED WITHOUT BEING REPLACED WITH A BASIC EXEMPTION BECAUSE THE PROPERTY IS NOT ELIGIBLE FOR EITHER EXEMPTION, HIS OR HER DETERMINATION SHALL BE IMPLEMENTED IN THE MANNER PROVIDED BY SUBDIVISION FIFTEEN OF THIS SECTION. § 5. Paragraphs (c) and (d) of subdivision 14 of section 425 of the real property tax law are REPEALED and a new paragraph (c) is added to read as follows: (C) IF THE COMMISSIONER DETERMINES THAT A STAR EXEMPTION SHOULD BE REMOVED OR DENIED FOR ONE OR MORE OF THE REASONS SPECIFIED IN PARAGRAPH (B) OF THIS SUBDIVISION, HIS OR HER DETERMINATION SHALL BE IMPLEMENTED IN THE MANNER PROVIDED BY SUBDIVISION FIFTEEN OF THIS SECTION. § 6. Subdivisions 14-a, 15 and 15-a of section 425 of the real proper- ty tax law are REPEALED and a new subdivision 15 is added to read as follows: 15. REVIEW BY COMMISSIONER. (A) WHEN THE COMMISSIONER DETERMINES PURSUANT TO THIS SECTION THAT A STAR EXEMPTION SHOULD BE GRANTED, DENIED OR MODIFIED, THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL SHALL BE AUTHORIZED AND DIRECTED UPON RECEIPT OF THE COMMISSIONER'S DETERMINATION TO CORRECT SUCH ROLL ACCORD- INGLY. SUCH CORRECTION SHALL BE MADE WITHOUT REGARD TO THE PROVISIONS OF TITLE THREE OF ARTICLE FIVE OF THIS CHAPTER OR ANY COMPARABLE LAWS GOVERNING THE CORRECTION OF ERRORS ON ASSESSMENT ROLLS AND TAX ROLLS, AND SHALL BE MADE WITHOUT REQUESTING ADDITIONAL DOCUMENTATION OR THE APPROVAL OF ANY OTHER PARTY. IN ADDITION: (B) IF THE COMMISSIONER'S DETERMINATION DIRECTS THE GRANTING OF A STAR EXEMPTION TO A PROPERTY OWNER, OR IS OTHERWISE FAVORABLE TO THE PROPERTY OWNER: S. 2509 182 A. 3009 (I) THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL SHALL ATTEMPT TO IMPLEMENT THE COMMISSION- ER'S DETERMINATION PRIOR TO THE LEVY OF SCHOOL TAXES IF POSSIBLE. IF THE CORRECTION IS NOT MADE BEFORE SCHOOL TAXES ARE LEVIED, THE SCHOOL DISTRICT AUTHORITIES SHALL BE AUTHORIZED AND DIRECTED TO IMPLEMENT THE COMMISSIONER'S DETERMINATION BY CORRECTING THE PROPERTY OWNER'S SCHOOL TAX BILL OR BY PROVIDING THE PROPERTY OWNER WITH A CREDIT FOR THE AMOUNT AT ISSUE; PROVIDED THAT IF THE SCHOOL TAX BILL HAS ALREADY BEEN PAID, THE SCHOOL DISTRICT AUTHORITIES SHALL IMPLEMENT THE COMMISSIONER'S DETERMINATION BY ISSUING A REFUND OF THE AMOUNT AT ISSUE. FOR PURPOSES OF THIS SUBDIVISION, THE "AMOUNT AT ISSUE" MEANS THE ADDITIONAL TAX SAVINGS THAT WOULD HAVE APPEARED ON THE PROPERTY OWNER'S SCHOOL TAX BILL IF THE COMMISSIONER'S DETERMINATION HAD BEEN IMPLEMENTED PRIOR TO THE SCHOOL TAX LEVY. (II) ALTERNATIVELY, THE COMMISSIONER IS AUTHORIZED IN HIS OR HER DISCRETION TO REMIT DIRECTLY TO THE PROPERTY OWNER OR OWNERS THE AMOUNT AT ISSUE. WHEN THE COMMISSIONER DOES SO, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES. IN SUCH CASES, NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO CREDIT OR REFUND SHALL BE PROVIDED BY THE SCHOOL AUTHORITIES TO THE PROPERTY OWNER OR HIS OR HER AGENT FOR THE EXCESSIVE AMOUNT OF SCHOOL TAXES PAID FOR THAT SCHOOL YEAR. (C) IF THE COMMISSIONER'S DETERMINATION DIRECTS THE DENIAL OF A STAR EXEMPTION TO A PROPERTY OWNER, OR IS OTHERWISE UNFAVORABLE TO THE PROP- ERTY OWNER: (I) THE COMMISSIONER SHALL MAIL THE PROPERTY OWNER NOTICE OF HIS OR HER DETERMINATION AND AN OPPORTUNITY TO BE HEARD THEREON. IF THE OWNER FAILS TO RESPOND TO SUCH NOTICE WITHIN FORTY-FIVE DAYS FROM THE MAILING THEREOF, THE COMMISSIONER'S DETERMINATION SHALL STAND AND NO FURTHER REVIEW SHALL BE AVAILABLE. IF THE OWNER RESPONDS TO SUCH NOTICE WITHIN THE FORTY-FIVE DAY PERIOD, THE COMMISSIONER SHALL REVIEW THE RESPONSE AND ANY DOCUMENTATION PROVIDED IN SUPPORT THEREOF AND SHALL NOTIFY THE OWNER OF HIS OR HER FINAL DETERMINATION. IF DISSATISFIED WITH THE COMMISSIONER'S FINAL DETERMINATION, THE OWNER MAY SEEK JUDICIAL REVIEW THEREOF PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. THE PROPERTY OWNER 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 DEPART- MENT, THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL REGARDING SUCH ACTION. (II) 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 DENIAL OR REDUCTION 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 DEPART- MENT IN THE MANNER DESCRIBED IN THIS PARAGRAPH. (III) IF A STAR EXEMPTION SHOULD APPEAR ON A PROPERTY OWNER'S SCHOOL TAX BILL DESPITE THE FACT THAT THE COMMISSIONER HAD DETERMINED THE PROP- ERTY OWNER TO BE INELIGIBLE FOR THAT EXEMPTION, THE COMMISSIONER IS AUTHORIZED TO RECOVER THE AMOUNT AT ISSUE DIRECTLY FROM THE OWNERS OF THE PROPERTY BY UTILIZING ANY OF THE PROCEDURES FOR COLLECTION, LEVY, AND LIEN OF PERSONAL INCOME TAX SET FORTH IN ARTICLE TWENTY-TWO OF THE TAX LAW, AND ANY OTHER RELEVANT PROCEDURES REFERENCED WITHIN THE PROVISIONS OF SUCH ARTICLE. WHEN THE COMMISSIONER IMPLEMENTS THE DETER- MINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND S. 2509 183 A. 3009 COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO CORRECTED SCHOOL TAX BILL SHALL BE SENT TO THE TAXPAYER FOR THAT SCHOOL YEAR. § 7. Section 171-u of the tax law, as added by section 2 of part FF of chapter 57 of the laws of 2010, and subdivision 5 as added by section 7 of part N of chapter 58 of the laws of 2011, is amended to read as follows: § 171-u. Verification of income eligibility for basic STAR exemption. (1) [On or after August fifteenth of each year, beginning in two thou- sand ten, the commissioner shall procure a report or reports identifying all parcels receiving the basic STAR exemption authorized by section four hundred twenty-five of the real property tax law. The commissioner is authorized to develop procedures necessary to ascertain to the best of his or her ability whether the parcels satisfy the income eligibility requirements for such exemption. Such determination shall be based upon the affiliated income of the parcel for the applicable income tax year, as defined by paragraph (b-1) of subdivision three of section four hundred twenty-five of the real property tax law. (2) The commissioner shall further develop procedures by which each assessor shall be notified of his or her findings, stating in each case either that the parcel does or does not meet the income eligibility standard prescribed by law, or that the income-eligibility of such parcel cannot be ascertained, whichever is appropriate. The commissioner shall provide no other information about the income of any person to an assessor. Such reports shall be furnished to assessors prior to the applicable taxable status date or as soon thereafter as is possible. (3) Upon receiving such a report, the assessor shall grant the exemption to those parcels which the commissioner determined to be income-eligible (assuming the assessor finds that the remaining eligi- bility requirements continue to be satisfied), shall deny the exemption to those which the commissioner determined not to be income-eligible, and shall solicit income documentation from the owners of those parcels as to which the commissioner was unable to make a determination. Where the assessor denies the exemption based upon the commissioner's report, a notice of denial shall be mailed as provided by paragraph (b) of subdivision six of section four hundred twenty-five of the real property tax law, giving the findings of such department as a reason for such denial. (4) Where a STAR exemption has been improperly granted on a final assessment roll to a property where the affiliated income exceeds the limitations established by paragraph (b-1) of subdivision three of section four hundred twenty-five of the real property tax law, the improperly granted exemption shall be corrected in the manner provided by subdivision twelve of section four hundred twenty-five of the real property tax law. (5)] THE COMMISSIONER SHALL VERIFY THE INCOME ELIGIBILITY OF RECIPI- ENTS OF THE BASIC STAR EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW IN THE MANNER PROVIDED THEREIN. (2)(a) Notwithstanding any provision of law to the contrary, the commissioner may adopt rules prescribing a uniform statewide system of parcel identification numbers applicable to all "assessing units", as that term is defined by section one hundred two of the real property tax law, provided that no such rule shall apply to an assessment roll with a taxable status date occurring prior to January first, two thousand thir- teen. S. 2509 184 A. 3009 (b) Notwithstanding the foregoing provisions of this subdivision, the commissioner may, at his or her discretion, adopt rules that are appli- cable only to "special assessing units," as that term is defined by section eighteen hundred one of the real property tax law, which prescribe an alternative system of parcel identification numbers solely for such special assessing units. § 8. This act shall take effect immediately. SUBPART E Section 1. Paragraph 2 of subdivision w of section 233 of the real property law is REPEALED. § 2. Paragraph 3 of subdivision w of section 233 of the real property law, as amended by section 18 of part B of chapter 389 of the laws of 1997, is amended to read as follows: 3. A manufactured home park owner or operator providing a reduction in rent as required by paragraph one [or two] of this subdivision may retain, in consideration for record keeping expenses, two percent of the amount of such reduction. § 3. The opening paragraph of paragraph 3-a of subdivision w of section 233 of the real property law, as added by chapter 405 of the laws of 2001, is amended to read as follows: Any reduction required to be provided pursuant to paragraph one [or two] of this subdivision shall be provided as follows: § 4. Paragraph (l) of subdivision 2 of section 425 of the real proper- ty tax law is amended by adding a new subparagraph (iv) to read as follows: (IV) BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND TWENTY-TWO--TWO THOUSAND TWENTY-THREE SCHOOL YEAR, NO EXEMPTION SHALL BE GRANTED PURSUANT TO THIS SECTION TO A MOBILE HOME THAT IS DESCRIBED IN THIS PARAGRAPH. OWNERS OF SUCH PROPERTY MAY CLAIM THE CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW IN THE MANNER PRESCRIBED THEREIN. § 5. Subparagraph (B) of paragraph 6 of subsection (eee) of section 606 of the tax law is amended by adding a new clause (iii) to read as follows: (III) BEGINNING WITH THE TWO THOUSAND TWENTY-TWO TAXABLE YEAR, TO RECEIVE THE CREDIT AUTHORIZED BY THIS SUBSECTION, AN OWNER OF A MOBILE HOME DESCRIBED BY CLAUSE (I) OF THIS SUBPARAGRAPH SHALL REGISTER FOR SUCH CREDIT IN THE MANNER PRESCRIBED BY THE COMMISSIONER AND CLAIM THE CREDIT UPON HIS OR HER PERSONAL INCOME TAX RETURN FOR THE TAXABLE YEAR IN QUESTION. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH TEN OF THIS SUBSECTION, THE COMMISSIONER SHALL NOT MAKE ADVANCE PAYMENTS OF THE CREDIT TO SUCH OWNERS. § 6. This act shall take effect immediately; provided, however, that the amendments to subdivision w of section 233 of the real property law made by sections one, two and three of this act shall be applicable beginning with assessment rolls used to levy school district taxes for the 2022--2023 school year. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section, item, subpart 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, subdivi- sion, section, item, subpart or part thereof directly involved in the controversy in which such judgment shall have been rendered. It is here- S. 2509 185 A. 3009 by declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included here- in. § 3. This act shall take effect immediately, provided, however, that the applicable effective date of Subparts A through E of this act shall be as specifically set forth in the last section of such Subparts. PART W Section 1. Section 200 of the real property tax law, as amended by section 4-a of part W of chapter 56 of the laws of 2010, is amended to read as follows: § 200. State board. There is hereby created in the department of taxa- tion and finance a separate and independent state board of real property tax services, to consist of five members to be appointed by the gover- nor, by and with the advice and consent of the senate. Of those five members appointed by the governor, one such person shall be an individ- ual actively engaged in the commercial production for sale of agricul- tural crops, livestock and livestock products of an average gross sales value of ten thousand dollars or more. Said individual shall be appointed in the first instance to a term of eight years upon expiration of an existing term. Said initial term shall commence on the first day of January next succeeding the year in which the existing term shall expire. The governor shall designate one of the members as the chairman of the board, who shall serve as chairman at the pleasure of the gover- nor. A MAJORITY OF THE DULY APPOINTED MEMBERS SHALL CONSTITUTE A QUORUM AND NOT LESS THAN A MAJORITY OF SUCH MEMBERS CONCURRING MAY TRANSACT ANY BUSINESS, PERFORM ANY DUTY OR EXERCISE ANY POWER OF THE BOARD. The members of the board shall be appointed for terms of eight years, commencing on the first day of January next following the year in which the term of his predecessor expired, except that the terms of the members first appointed shall expire as follows: one on December thir- ty-first, nineteen hundred sixty-one, one on December thirty-first, nineteen hundred sixty-three, one on December thirty-first, nineteen hundred sixty-five, one on December thirty-first, nineteen hundred sixty-seven, and one on December thirty-first, nineteen hundred eighty- two. Vacancies occurring otherwise than by expiration of term shall be filled for the unexpired term. All members shall receive necessary expenses incurred in the performance of their duties. § 2. Section 307 of the real property tax law is REPEALED. § 3. Subdivision 4 of section 483 of the real property tax law, as amended by chapter 72 of the laws of 1979 and as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, and as renumbered by chapter 797 of the laws of 1992, is amended to read as follows: 4. Such exemption from taxation shall be granted only upon an applica- tion by the owner of the building or structure on a form prescribed by the commissioner. The applicant shall furnish such information as [such board] THE COMMISSIONER shall require. Such application shall be filed with the assessor of the city, town, village or county having the power to assess property for taxation on or before the appropriate taxable status date of such city, town, village or county and within one year from the date of completion of such construction or reconstruction. § 4. Subdivision 3 of section 489-n of the real property tax law, as added by chapter 86 of the laws of 1963 and as further amended by subdi- S. 2509 186 A. 3009 vision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 3. The commissioner shall meet at the time and place specified in such notice to hear complaints in relation to the tentative determination of the railroad ceiling. The provisions of section five hundred twelve of this chapter shall apply so far as may be practicable to a hearing under this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 5. Subdivision 3 of section 489-kk of the real property tax law, as added by chapter 920 of the laws of 1977 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: 3. The commissioner shall meet at the time and place specified in such notice to hear complaints in relation to the tentative determination of the railroad ceiling. The provisions of section five hundred twelve of this chapter shall apply so far as may be practicable to a hearing under this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 6. The real property tax law is amended by adding a new section 497 to read as follows: § 497. CONSTRUCTION OF CERTAIN LOCAL OPTION PROVISIONS IN EXEMPTION STATUTES. 1. POPULATION RESTRICTIONS. WHEN AN EXEMPTION STATUTE MAKES ONE OR MORE OPTIONS AVAILABLE TO MUNICIPAL CORPORATIONS HAVING A POPU- LATION WITHIN A SPECIFIED RANGE, AND THE GOVERNING BODY OF A MUNICIPAL CORPORATION ADOPTS A LOCAL LAW OR RESOLUTION EXERCISING SUCH AN OPTION WHILE ITS POPULATION IS WITHIN THE SPECIFIED RANGE, A SUBSEQUENT CHANGE IN THE POPULATION OF THE MUNICIPAL CORPORATION THAT PLACES IT OUTSIDE THE SPECIFIED RANGE SHALL NOT RENDER SUCH LOCAL LAW OR RESOLUTION INEF- FECTIVE OR INVALID, NOR SHALL IT IMPAIR THE ABILITY OF THE GOVERNING BODY TO AMEND OR REPEAL SUCH LOCAL LAW OR RESOLUTION TO THE SAME EXTENT AS IF ITS POPULATION WERE STILL WITHIN THE SPECIFIED RANGE. PROVIDED, HOWEVER, THAT THIS SUBDIVISION SHALL NOT APPLY TO ANY EXEMPTION STATUTE THAT EXPRESSLY PROVIDES THAT A LOCAL LAW OR RESOLUTION ADOPTED THERE- UNDER SHALL BECOME INEFFECTIVE OR INVALID IF THE POPULATION OF THE MUNICIPAL CORPORATION SUBSEQUENTLY EXPERIENCES A CHANGE THAT PLACES IT OUTSIDE THE SPECIFIED RANGE. 2. FILING PROVISIONS. WHEN AN EXEMPTION STATUTE MAKES ONE OR MORE OPTIONS AVAILABLE TO SOME OR ALL MUNICIPAL CORPORATIONS, AND FURTHER PROVIDES THAT A MUNICIPAL CORPORATION ADOPTING A LOCAL LAW OR RESOLUTION EXERCISING SUCH AN OPTION SHALL FILE A COPY THEREOF WITH ONE OR MORE STATE AGENCIES OTHER THAN THE DEPARTMENT OF STATE, BUT IF SUCH STATUTE DOES NOT EXPRESSLY PROVIDE THAT A LOCAL LAW OR RESOLUTION EXERCISING SUCH AN OPTION SHALL NOT TAKE EFFECT UNTIL A COPY THEREOF IS FILED WITH THE SPECIFIED STATE AGENCY OR AGENCIES, THEN A FAILURE TO COMPLY WITH SUCH FILING PROVISION SHALL NOT RENDER SUCH LOCAL LAW OR RESOLUTION INEFFECTIVE OR INVALID. § 7. Subdivision 3 of section 499-oooo of the real property tax law, as added by chapter 475 of the laws of 2013, is amended to read as follows: 3. The commissioner or his or her designee shall meet at the time and place specified in such notice set forth in subdivision one of this section to hear complaints in relation to the tentative determination of the assessment ceiling. The provisions of section five hundred twelve of this chapter shall apply so far as may be practicable to a hearing under this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. S. 2509 187 A. 3009 § 8. Section 612 of the real property tax law, 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: § 612. Hearing of complaints. The commissioner or a duly authorized representative thereof shall meet at the time and place specified in the notice required by section six hundred eight of this chapter to hear complaints in relation to assessments of special franchises. The provisions of section five hundred twelve of this chapter shall apply so far as practicable to the hearing of complaints pursuant to this section. NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 9. Section 1208 of the real property tax law, as amended by chapter 385 of the laws of 1990 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: § 1208. Hearing of complaints. The commissioner or a duly authorized representative thereof shall meet at the time and place specified in the notice required by section twelve hundred four of this chapter to hear complaints in relation to equalization rates, class ratios or class equalization rates. The provisions of section five hundred twenty-five of this chapter shall apply so far as practicable to a hearing under this section. NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 10. This act shall take effect immediately; provided, however, that notwithstanding the provisions of subdivision 2 of section 497 of the real property tax law as added by section six of this act, the decision issued by the Appellate Division, Third Department on April 16, 2020, in the Matter of Laertes Solar, LLC v Assessor of the Town of Harford, cited as 182 A.D.3d 826, 122 N.Y.S.3d 427, and 2020 NY Slip Op 02302, motion for leave to appeal dismissed in part and otherwise denied by the Court of Appeals on November 19, 2020, shall remain binding upon the parties thereto; and provided further that the amendments made to section 489-oooo of the real property tax law made by section seven of this act shall not affect the repeal of such section and shall be deemed to be repealed therewith. PART X Section 1. Subdivisions 5, 7 and 9 of section 487 of the real property tax law, subdivision 5 as amended by chapter 325 of the laws of 2018, subdivision 7 as amended by chapter 515 and subdivision 9 as added by chapter 608 of the laws of 2002, and paragraph (a) of subdivision 9 as amended by chapter 344 of the laws of 2014, are amended to read as follows: 5. The exemption granted pursuant to this section shall only be appli- cable to (a) solar or wind energy systems or farm waste energy systems which are (i) existing or constructed prior to July first, nineteen hundred eighty-eight or (ii) constructed subsequent to January first, nineteen hundred ninety-one and prior to January first, two thousand [twenty-five] THIRTY, and (b) micro-hydroelectric energy systems, fuel cell electric generating systems, micro-combined heat and power generat- ing equipment systems, electric energy storage equipment or electric energy storage system, or fuel-flexible linear generator electric gener- ating system which are constructed subsequent to January first, two thousand eighteen and prior to January first, two thousand [twenty-five] THIRTY. S. 2509 188 A. 3009 7. If the assessor is satisfied that the applicant is entitled to an exemption pursuant to this section, he or she shall approve the applica- tion and enter the taxable assessed value of the parcel for which an exemption has been granted pursuant to this section on the assessment roll with the taxable property, with the amount of the exemption SET FORTH IN A SEPARATE COLUMN as computed pursuant to subdivision two of this section in a separate column. In the event that real property granted an exemption pursuant to this section ceases to be used primari- ly for eligible purposes, the exemption granted pursuant to this section shall cease. 9. (a) A county, city, town, village or school district, except a school district under article fifty-two of the education law, that has not acted to remove the exemption under this section may require the owner of a property which includes a solar or wind energy system which meets the requirements of subdivision four of this section, to enter into a contract for payments in lieu of taxes. Such contract may require annual payments in an amount not to exceed the amounts which would otherwise be payable but for the exemption under this section. If the owner or developer of such a system provides written notification to a taxing jurisdiction of its intent to construct such a system, then in order to require the owner or developer of such system to enter into a contract for payments in lieu of taxes, such taxing jurisdiction must notify such owner or developer IN WRITING of its intent to require a contract for payments in lieu of taxes within sixty days of receiving the written notification. WRITTEN NOTIFICATION TO A TAXING JURISDICTION FOR THIS PURPOSE SHALL INCLUDE A HARD COPY LETTER SENT TO THE HIGHEST- RANKING OFFICIAL OF THE TAXING JURISDICTION. SUCH LETTER SHALL EXPLICIT- LY REFERENCE SUBDIVISION NINE OF SECTION FOUR HUNDRED EIGHTY-SEVEN OF THE REAL PROPERTY TAX LAW, AND CLEARLY STATE THAT, UNLESS THE TAXING JURISDICTION RESPONDS WITHIN SIXTY DAYS IN WRITING WITH ITS INTENT TO REQUIRE A CONTRACT FOR PAYMENTS IN LIEU OF TAXES, AND SUCH PROJECT SHALL NOT BE OBLIGATED TO MAKE SUCH PAYMENTS. (b) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, SHOULD A TAXING JURISDICTION ADOPT A LAW OR RESOLUTION AT ANY TIME WITHIN OR PRIOR TO THE SIXTY DAY WINDOW, INDICATING THE TAXING JURISDICTION'S ONGOING INTENT TO REQUIRE A CONTRACT FOR PAYMENTS IN LIEU OF TAXES FOR SUCH SYSTEMS, SUCH LAW OR RESOLUTION SHALL BE CONSIDERED NOTIFICATION TO OWNERS OR DEVELOPERS AND NO FURTHER ACTION IS REQUIRED ON THE PART OF THE TAXING JURISDICTION, PROVIDED THAT SUCH LAW OR RESOLUTION REMAINS IN EFFECT THROUGH THE END OF THE SIXTY DAY NOTIFICATION PERIOD. [The] (C) ANY payment in lieu of a tax agreement shall not operate for a period of more than fifteen years, commencing in each instance from the date on which the benefits of such exemption first become available and effective. § 2. Subdivision 1 of section 575-a of the real property tax law, as added by section 1 of subpart F of part J of chapter 59 of the laws of 2019, is amended to read as follows: 1. Every corporation, company, association, joint stock association, partnership and person, their lessees, trustees or receivers appointed by any court whatsoever, owning, operating or managing any electric generating facility in the state shall annually file with the commis- sioner, by April thirtieth, a report showing the inventory, revenue, and expenses associated therewith for the most recent fiscal year, AND SUCH OTHER INFORMATION AS THE COMMISSIONER MAY REASONABLY REQUIRE. Such report shall be in the form and manner prescribed by the commissioner. S. 2509 189 A. 3009 § 3. The real property tax law is amended by adding a new section 575-b to read as follows: § 575-B. SOLAR OR WIND ENERGY SYSTEMS. 1. THE ASSESSED VALUE FOR SOLAR OR WIND ENERGY SYSTEM, AS DEFINED IN SECTION FOUR HUNDRED EIGHTY-SEVEN OF THIS CHAPTER, SHALL BE DETERMINED BY AN INCOME CAPITALIZATION OR DISCOUNTED CASH FLOW APPROACH THAT: (A) CONSIDERS AN APPRAISAL MODEL IDENTIFIED AND PUBLISHED BY THE NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE, IN CONSULTATION WITH THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, AND PERIOD- ICALLY THEREAFTER AS APPROPRIATE; AND (B) INCLUDES A SOLAR OR WIND ENERGY SYSTEM DISCOUNT RATE PUBLISHED ANNUALLY BY THE NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE. 2. IN ADDITION TO THE REPORTS REQUIRED BY SECTION FIVE HUNDRED SEVEN- TY-FIVE-A OF THIS TITLE, AND NOTWITHSTANDING ANY PROVISION TO THE CONTRARY CONTAINED IN SUCH SECTION, THE COMMISSIONER MAY REQUIRE THE OWNER OR OPERATOR OF A SOLAR OR WIND ENERGY SYSTEM, AS DEFINED IN SECTION FOUR HUNDRED EIGHTY-SEVEN OF THIS CHAPTER, TO ANNUALLY FILE WITH THE COMMISSIONER, BY APRIL THIRTIETH, A REPORT SHOWING SUCH INFORMATION AS THE COMMISSIONER MAY REASONABLY REQUIRE FOR THE DEVELOPMENT AND MAIN- TENANCE OF AN APPRAISAL MODEL AND DISCOUNT RATE. 3. THE PROVISIONS OF THIS SECTION SHALL ONLY APPLY TO SOLAR OR WIND ENERGY SYSTEMS WITH A NAMEPLATE CAPACITY EQUAL TO OR GREATER THAN ONE MEGAWATT. § 4. The third undesignated paragraph of section 852 of the general municipal law, as amended by chapter 630 of the laws of 1977, is amended to read as follows: It is hereby further declared to be the policy of this state to protect and promote the health of the inhabitants of this state and to increase trade through promoting the development of facilities to provide recreation for the citizens of the state and to attract tourists from other states AND TO PROMOTE THE DEVELOPMENT OF RENEWABLE ENERGY PROJECTS TO SUPPORT THE STATE'S RENEWABLE ENERGY GOALS AS MAY BE ESTAB- LISHED OR AMENDED FROM TIME TO TIME. § 5. Subdivision 4 of section 854 of the general municipal law, as amended by section 6 of part J of chapter 59 of the laws of 2013, is amended and a new subdivision 21 is added to read as follows: (4) "Project" - shall mean any land, any building or other improve- ment, and all real and personal properties located within the state of New York and within or outside or partially within and partially outside the municipality for whose benefit the agency was created, including, but not limited to, machinery, equipment and other facilities deemed necessary or desirable in connection therewith, or incidental thereto, whether or not now in existence or under construction, which shall be suitable for manufacturing, warehousing, research, commercial, RENEWABLE ENERGY or industrial purposes or other economically sound purposes iden- tified and called for to implement a state designated urban cultural park management plan as provided in title G of the parks, recreation and historic preservation law and which may include or mean an industrial pollution control facility, a recreation facility, educational or cultural facility, a horse racing facility, a railroad facility, A RENEWABLE ENERGY PROJECT or an automobile racing facility, provided, however, no agency shall use its funds or provide financial assistance in respect of any project wholly or partially outside the municipality for whose benefit the agency was created without the prior consent ther- eto by the governing body or bodies of all the other municipalities in S. 2509 190 A. 3009 which a part or parts of the project is, or is to be, located, and such portion of the project located outside such municipality for whose bene- fit the agency was created shall be contiguous with the portion of the project inside such municipality. (21) "RENEWABLE ENERGY PROJECT" SHALL MEAN ANY PROJECT AND ASSOCIATED REAL PROPERTY ON WHICH THE PROJECT IS SITUATED, THAT UTILIZES ANY SYSTEM OR EQUIPMENT AS SET FORTH IN SECTION FOUR HUNDRED EIGHTY-SEVEN OF THE REAL PROPERTY TAX LAW OR AS DEFINED PURSUANT TO PARAGRAPH B OF SUBDIVI- SION ONE OF SECTION SIXTY-SIX-P OF THE PUBLIC SERVICE LAW AS ADDED BY CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO THOUSAND NINETEEN. § 6. The opening paragraph of section 858 of the general municipal law, as amended by chapter 478 of the laws of 2011, is amended to read as follows: The purposes of the agency shall be to promote, develop, encourage and assist in the acquiring, constructing, reconstructing, improving, main- taining, equipping and furnishing industrial, manufacturing, warehous- ing, commercial, research, RENEWABLE ENERGY and recreation facilities including industrial pollution control facilities, educational or cultural facilities, railroad facilities, horse racing facilities, auto- mobile racing facilities, RENEWABLE ENERGY PROJECTS and continuing care retirement communities, provided, however, that, of agencies governed by this article, only agencies created for the benefit of a county and the agency created for the benefit of the city of New York shall be author- ized to provide financial assistance in any respect to a continuing care retirement community, and thereby advance the job opportunities, health, general prosperity and economic welfare of the people of the state of New York and to improve their recreation opportunities, prosperity and standard of living; and to carry out the aforesaid purposes, each agency shall have the following powers: § 7. Paragraph (b) of subdivision 5 of section 859-a of the general municipal law, as added by chapter 563 of the laws of 2015, is amended to read as follows: (b) a written cost-benefit analysis by the agency that identifies the extent to which a project will create or retain permanent, private sector jobs; the estimated value of any tax exemptions to be provided; the amount of private sector investment generated or likely to be gener- ated by the proposed project; THE CONTRIBUTION OF THE PROJECT TO THE STATE'S RENEWABLE ENERGY GOALS AND EMISSION REDUCTION TARGETS AS SET FORTH IN THE STATE ENERGY PLAN ADOPTED PURSUANT TO SECTION 6-104 OF THE ENERGY LAW; the likelihood of accomplishing the proposed project in a timely fashion; and the extent to which the proposed project will provide additional sources of revenue for municipalities and school districts; and any other public benefits that might occur as a result of the project; § 8. This act shall take effect immediately. PART Y Section 1. Legislative intent. Article 1 Section 9 of the New York State Constitution was recently amended and provides "casino gambling at no more than seven facilities as authorized and prescribed by the legis- lature shall hereafter be authorized or allowed within this state." It is the sense of the legislature that this provision is not contravened by a statute which authorizes the acceptance of a wager by an individual who is betting by virtual or electronic means; provided that it meets other safeguards ensuring that the plain text of this provision is S. 2509 191 A. 3009 honored in such structure. Sports wagering is now legal online in 14 states, including the bordering states of New Jersey and Pennsylvania, while it is only permitted in person in New York at four upstate commer- cial gaming facilities and Native American Class III gaming facilities. An industry study found that nearly 20 percent of New Jersey's online sports wagering revenue comes from New York residents, costing the state millions of dollars in lost tax revenue. § 2. Section 1367 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 7 to read as follows: 7. (A) A LICENSED GAMING FACILITY OPERATING A SPORTS POOL PURSUANT TO SUBDIVISION THREE OF THIS SECTION MAY OFFER MOBILE SPORTS WAGERING WHEN CONDUCTED IN CONFORMANCE WITH SECTION ONE THOUSAND THREE HUNDRED SIXTY- SEVEN-A OF THIS TITLE. (B) NOTWITHSTANDING SECTION ONE THOUSAND THREE HUNDRED FIFTY-ONE OF THIS ARTICLE, MOBILE SPORTS WAGERING REVENUE SHALL BE EXCLUDED FROM GROSS GAMING REVENUE AND SHALL BE SEPARATELY MAINTAINED AND RETURNED TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID, ON A SCHEDULE DETERMINED BY THE COMMISSION. § 3. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 1367-a to read as follows: § 1367-A. MOBILE SPORTS WAGERING. MOBILE SPORTS WAGERING SHALL BE PERMITTED BY THE COMMISSION THROUGH A PLATFORM PROVIDER OR PROVIDERS SELECTED PURSUANT TO A COMPETITIVE BIDDING PROCESS CONDUCTED BY THE COMMISSION. THE WINNING PLATFORM PROVIDER OR PROVIDERS SHALL USE THE TECHNOLOGY NECESSARY TO ENSURE ALL BETTORS ARE PHYSICALLY WITHIN APPROVED LOCATIONS WITHIN THE STATE AND ENSURE THE NECESSARY SAFEGUARDS AGAINST ABUSES AND ADDICTIONS ARE IN PLACE. ANY SUCH CONTRACTS ENTERED BY THE COMMISSION ARE SUBJECT TO APPLICABLE STATE LAWS, REGULATIONS AND PRACTICES. § 4. Subdivision 1 of section 1351 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: 1. (A) For a gaming facility in zone two, there is hereby imposed a tax on gross gaming revenues. The amount of such tax imposed shall be as follows[; provided, however, should a licensee have agreed within its application to supplement the tax with a binding supplemental fee payment exceeding the aforementioned tax rate, such tax and supplemental fee shall apply for a gaming facility]: [(a)] (1) in region two, forty-five percent of gross gaming revenue from slot machines and ten percent of gross gaming revenue from all other sources. [(b)] (2) in region one, thirty-nine percent of gross gaming revenue from slot machines and ten percent of gross gaming revenue from all other sources. [(c)] (3) in region five, thirty-seven percent of gross gaming revenue from slot machines and ten percent of gross gaming revenue from all other sources. (B) (1) NOTWITHSTANDING THE RATES IN PARAGRAPH (A) OF THIS SUBDIVI- SION, A GAMING FACILITY MAY PETITION THE COMMISSION TO LOWER THEIR SLOT TAX RATE TO NO LOWER THAN TWENTY-FIVE PERCENT. THE COMMISSION SHALL EVALUATE THE PETITION USING THE FOLLOWING CRITERIA: (I) THE ABILITY OF THE LICENSEE TO SATISFY THE LICENSE CRITERION OF FINANCIAL STABILITY ABSENT THE TAX RATE REDUCTION; (II) A COMPLETE EXAMINATION OF ALL FINANCIAL PROJECTIONS, AS WELL AS GAMING REVENUES GENERATED FOR THE PRIOR ANNUAL PERIOD; S. 2509 192 A. 3009 (III) THE LICENSEE'S INTENDED USE OF THE FUNDS RESULTING FROM A TAX ADJUSTMENT; (IV) THE INABILITY OF THE OPERATOR TO REMAIN COMPETITIVE UNDER THE CURRENT TAX STRUCTURE; (V) POSITIONS ADVANCED BY OTHER GAMING OPERATORS IN THE STATE IN RESPONSE TO THE PETITION; (VI) THE IMPACT ON THE COMPETITIVE LANDSCAPE; (VII) OTHER ECONOMIC FACTORS SUCH AS EMPLOYMENT AND THE POTENTIAL IMPACT UPON OTHER BUSINESSES IN THE REGION; AND (VIII) THE PUBLIC INTEREST TO BE SERVED BY A TAX ADJUSTMENT, INCLUDING THE IMPACT UPON THE STATE IN THE EVENT THE OPERATOR IS UNABLE TO REMAIN FINANCIALLY VIABLE. (2) THE COMMISSION SHALL REPORT THEIR RECOMMENDATION TO THE DIRECTOR OF THE DIVISION OF BUDGET WHO WILL MAKE A FINAL DETERMINATION. § 5. This act shall take effect immediately; provided, however, that section four of this act shall take effect sixty days after mobile sports wagering commences and shall expire and be deemed repealed one year after such date. PART Z Section 1. The gaming commission shall issue a request for information for the purpose of soliciting interest regarding the three unawarded gaming facility licenses authorized by the state constitution. Such request shall seek information from parties interested in developing and/or operating such gaming facilities which shall inform the commis- sion for the purposes of determining: the appropriate size and scope of development, the value of the gaming facility license, and the process that should be used in award consideration. § 2. This act shall take effect immediately. PART AA 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 S. 2509 193 A. 3009 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] COMMIS- SION; or § 2. This act shall take effect immediately. PART BB Section 1. Paragraphs 4 and 5 of subdivision a of section 1612 of the tax law, as amended by chapter 174 of the laws of 2013, are amended to read as follows: (4) fifty percent of the total amount for which tickets have been sold for games known as: (A) the "Daily Numbers Game" or "Win 4", discrete games in which the participants select no more than three or four of their own numbers to match with three or four numbers drawn by the [division] COMMISSION for purposes of determining winners of such games, (B) "Pick 10", [offered no more than once daily,] in which participants select from a specified field of numbers a subset of ten numbers to match against a subset of numbers to be drawn by the [division] COMMIS- SION from such field of numbers for the purpose of determining winners of such game, (C) "Take 5", [offered no more than once daily,] in which participants select from a specified field of numbers a subset of five numbers to match against a subset of five numbers to be drawn by the [division] COMMISSION from such field of numbers for purposes of deter- mining winners of such game; or (5) forty percent of the total amount for which tickets have been sold for: (A) "Lotto", [offered no more than once daily,] a discrete game in which all participants select a specific subset of numbers to match a specific subset of numbers, as prescribed by rules and regulations promulgated and adopted by the [division] COMMISSION, from a larger specific field of numbers, as also prescribed by such rules and regu- lations and (B) with the exception of the game described in paragraph one of this subdivision, such other state-operated lottery games [which] THAT the [division] COMMISSION may introduce, [offered no more than once daily,] commencing on or after forty-five days following the official publication of the rules and regulations for such game. § 2. This act shall take effect immediately. PART CC Section 1. Sections 1368, 1369, 1370 and 1371 of the racing, pari-mu- tuel wagering and breeding law are renumbered sections 130, 131, 132 and 133. § 2. Title 9 of article 13 of the racing, pari-mutuel wagering and breeding law is REPEALED. § 3. Section 130 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 130. [Establishment of the] THE office of gaming inspector general. [There is hereby created within the commission the office of gaming inspector general. The head of the office shall be the gaming inspector general who shall be appointed by the governor by and with the advice and consent of the senate. The inspector general shall serve at the pleasure of the governor. The inspector general shall report directly to S. 2509 194 A. 3009 the governor. The person appointed as inspector general shall, upon his or her appointment, have not less than ten years professional experience in law, investigation, or auditing. The inspector general shall be compensated within the limits of funds available therefor, provided, however, such salary shall be no less than the salaries of certain state officers holding the positions indicated in paragraph (a) of subdivision one of section one hundred sixty-nine of the executive law.] THE DUTIES AND RESPONSIBILITIES OF THE FORMER OFFICE OF THE GAMING INSPECTOR GENER- AL ARE TRANSFERRED TO AND ENCOMPASSED BY THE OFFICE OF THE STATE INSPEC- TOR GENERAL AS EXPRESSLY REFERENCED IN ARTICLE FOUR-A OF THE EXECUTIVE LAW. § 4. Section 131 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 131. [State gaming] GAMING inspector general; functions and duties. The [state] gaming inspector general shall have the following duties and responsibilities: 1. receive and investigate complaints from any source, or upon his or her own initiative, concerning allegations of corruption, fraud, crimi- nal activity, conflicts of interest or abuse in the commission; 2. [inform the commission members of such allegations and the progress of investigations related thereto, unless special circumstances require confidentiality; 3.] determine with respect to such allegations whether disciplinary action, civil or criminal prosecution, or further investigation by an appropriate federal, state or local agency is warranted, and to assist in such investigations; [4.] 3. prepare and release to the public written reports of such investigations, as appropriate and to the extent permitted by law, subject to redaction to protect the confidentiality of witnesses. The release of all or portions of such reports may be deferred to protect the confidentiality of ongoing investigations; [5.] 4. review and examine periodically the policies and procedures of the commission with regard to the prevention and detection of corruption, fraud, criminal activity, conflicts of interest or abuse; [6.] 5. recommend remedial action to prevent or eliminate corruption, fraud, criminal activity, conflicts of interest or abuse in the commis- sion; and [7.] 6. establish programs for training commission officers and employees [regarding] IN REGARD TO the prevention and elimination of corruption, fraud, criminal activity, conflicts of interest or abuse in the commission. § 5. Section 132 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 132. Powers. The [state] gaming inspector general shall have the power to: 1. subpoena and enforce the attendance of witnesses; 2. administer oaths or affirmations and examine witnesses under oath; 3. require the production of any books and papers deemed relevant or material to any investigation, examination or review; 4. notwithstanding any law to the contrary, examine and copy or remove documents or records of any kind prepared, maintained or held by the commission; 5. require any commission officer or employee to answer questions concerning any matter related to the performance of his or her official S. 2509 195 A. 3009 duties. NO STATEMENT OR OTHER EVIDENCE DERIVED THEREFROM MAY BE USED AGAINST SUCH OFFICER OR EMPLOYEE IN ANY SUBSEQUENT CRIMINAL PROSECUTION OTHER THAN FOR PERJURY OR CONTEMPT ARISING FROM SUCH TESTIMONY. The refusal of any officer or employee to answer questions shall be cause for removal from office or employment or other appropriate penalty; 6. monitor the implementation by the commission of any recommendations made by the state inspector general; and 7. perform any other functions that are necessary or appropriate to fulfill the duties and responsibilities of the office. § 6. Section 133 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 133. Responsibilities of the commission and its officers and employ- ees. 1. Every commission officer or employee shall report promptly to the [state] gaming inspector general any information concerning corruption, fraud, criminal activity, conflicts of interest or abuse by another state officer or employee relating to his or her office or employment, or by a person having business dealings with the commission relating to those dealings. The knowing failure of any officer or employee to so report shall be cause for removal from office or employ- ment or other appropriate penalty under this article. Any officer or employee who acts pursuant to this subdivision by reporting to the [state] gaming inspector general or other appropriate law enforcement official improper governmental action as defined in section seventy- five-b of the civil service law shall not be subject to dismissal, discipline or other adverse personnel action. 2. The commission chair shall advise the governor within ninety days of the issuance of a report by the [state] gaming inspector general as to the remedial action that the commission has taken in response to any recommendation for such action contained in such report. § 7. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 134 to read as follows: § 134. TRANSFER OF EMPLOYEES. UPON THE TRANSFER OF FUNCTIONS, POWERS, DUTIES AND OBLIGATIONS TO THE OFFICE OF THE STATE INSPECTOR GENERAL PURSUANT TO THIS ARTICLE, PROVISION SHALL BE MADE FOR THE TRANSFER OF ALL GAMING INSPECTOR GENERAL EMPLOYEES FROM WITHIN THE GAMING COMMISSION INTO THE OFFICE OF THE STATE INSPECTOR GENERAL. EMPLOYEES SO TRANSFERRED SHALL BE TRANSFERRED WITHOUT FURTHER EXAM- INATION OR QUALIFICATION TO THE SAME OR SIMILAR TITLES, SHALL REMAIN IN THE SAME COLLECTIVE BARGAINING UNITS AND SHALL RETAIN THEIR RESPECTIVE CIVIL SERVICE CLASSIFICATIONS, STATUS AND RIGHTS PURSUANT TO THEIR COLLECTIVE BARGAINING UNITS AND COLLECTIVE BARGAINING AGREE- MENTS. § 8. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 135 to read as follows: § 135. TRANSFER OF RECORDS. ALL BOOKS, PAPERS, RECORDS AND PROPERTY OF THE GAMING INSPECTOR GENERAL WITHIN THE GAMING COMMISSION WITH RESPECT TO THE FUNCTIONS, POWERS, DUTIES AND OBLIGATIONS TRANSFERRED BY SECTION ONE HUNDRED THIRTY OF THIS ARTICLE, ARE TO BE DELIVERED TO THE APPROPRIATE SUCCESSOR OFFICES WITHIN THE OFFICE OF THE STATE INSPECTOR GENERAL, AT SUCH PLACE AND TIME, AND IN SUCH MANNER AS THE OFFICE OF THE STATE INSPECTOR GENERAL MAY REQUIRE. § 9. This act shall take effect on the sixtieth day after it shall have become a law. PART DD S. 2509 196 A. 3009 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 Z of chapter 59 of the laws of 2020, is amended to read as follows: (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as may be prescribed by the commission and shall contain such information or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand sixteen and one thousand seventeen of this article; provided further that the contract provisions or other simulcast arrangements for such simulcast facility shall be no less favorable than those in effect on January first, two thousand five; (ii) that each off-track betting corporation having within its geographic boundaries such residences, homes or other areas technically capable of receiving the simulcast signal shall be a contracting party; (iii) the distribution of revenues shall be subject to contractual agreement of the parties except that statutory payments to non-contracting parties, if any, may not be reduced; provided, however, that nothing herein to the contrary shall prevent a track from televising its races on an irregular basis primari- ly for promotional or marketing purposes as found by the commission. For purposes of this paragraph, the provisions of section one thousand thir- teen of this article shall not apply. Any agreement authorizing an in-home simulcasting experiment commencing prior to May fifteenth, nine- teen hundred ninety-five, may, and all its terms, be extended until June thirtieth, two thousand [twenty-one] TWENTY-TWO; 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-one] TWENTY-TWO; and (iv) no in-home S. 2509 197 A. 3009 simulcasting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as separately amended by chapter 243 and section 2 of part Z of chapter 59 of the laws of 2020, 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-one] TWENTY-TWO, the amount used exclu- sively for purses to be awarded at races conducted by such receiving track shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twenty-first, nineteen hundred ninety-five to the total commissions that would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. § 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as separately amended by section 3 of part Z of chapter 59 and chapter 243 of the laws of 2020, 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-one] TWENTY-TWO and on any day regard- less 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-one] TWENTY-TWO. 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, each off-track betting corporation branch office and each simul- casting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's repre- sentative horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state or foreign country subject to the following provisions: § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part Z of chapter 59 of the laws of 2020, 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-one] TWENTY-TWO. This section shall supersede all inconsistent provisions of this chapter. § 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 of part Z of chapter 59 of the laws of 2020, 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 S. 2509 198 A. 3009 thirtieth, two thousand [twenty-one] TWENTY-TWO. 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 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 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 Z of chapter 59 of the laws of 2020, 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 [twenty] TWENTY-ONE, 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 Z of chapter 59 of the laws of 2020, 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, [2021] 2022; 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 Z of chapter 59 of the laws of 2020, 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, [2021] 2022; and section eighteen of this S. 2509 199 A. 3009 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 separately amended by section 9 of part Z of chapter 59 and chapter 243 of the laws of 2020, 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 are presented for payment before April first of the year following the year of their purchase, less an amount that shall be established and retained by such franchised corporation of between twelve to seventeen percent of the total deposits in pools resulting from on-track regular bets, and fourteen to twenty- one percent of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five percent of the total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six percent 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 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 percent of regular bets and four percent of multiple bets plus twenty percent of the breaks; for exotic wagers seven and one-half percent plus twenty percent of the breaks, and for super exotic bets seven and one-half percent plus fifty percent of the breaks. For the period April first, two thousand one through December thirty- first, two thousand [twenty-one] TWENTY-TWO, such tax on all wagers shall be one and six-tenths percent, plus, in each such period, twenty percent of the breaks. Payment to the New York state thoroughbred breed- ing and development fund by such franchised corporation shall be one- half of one percent of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three percent of super exotic bets and for the period April first, two thousand one through December thirty-first, two thousand [twenty-one] TWENTY-TWO, such payment shall be seven-tenths of one percent of regular, multiple and exotic pools. § 10. This act shall take effect immediately. PART EE S. 2509 200 A. 3009 Section 1. Section 19 of part W-1 of chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, as amended by section 1 of part U of chapter 60 of the laws of 2016, is amended to read as follows: § 19. This act shall take effect immediately; provided, however, that sections one through thirteen of this act shall take effect September 1, 2006 and shall be deemed repealed on September 1, [2021] 2026 and such repeal shall apply in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law, and shall apply to sales made, fuel compounded or manufactured, and uses occurring on or after such date, and with respect to sections seven through eleven of this act, in accordance with applicable transitional provisions of sections 1106 and 1217 of the tax law; provided, however, that the commissioner of taxation and finance shall be authorized on and after the date this act shall have become a law to adopt and amend any rules or regulations and to take any steps necessary to implement the provisions of this act; provided further that sections fourteen through sixteen of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2006. § 2. This act shall take effect immediately. PART FF Section 1. Subsection (e) of section 42 of the tax law, as added by section 1 of part RR of chapter 60 of the laws of 2016, is amended to read as follows: (e) For taxable years beginning on or after January first, two thou- sand seventeen and before January first, two thousand eighteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and two hundred fifty dollars. For taxable years beginning on or after January first, two thousand eighteen and before January first, two thousand nineteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and three hundred dollars. For taxable years beginning on or after January first, two thousand nineteen and before January first, two thousand twenty, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and five hundred dollars. For taxable years beginning on or after January first, two thousand twenty and before January first, two thousand twenty-one, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and four hundred dollars. For taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand [twenty-two] TWENTY-FIVE, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and six hundred dollars. § 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit is amended to read as follows: § 5. This act shall take effect immediately and shall apply only to taxable years beginning on or after January 1, 2017 and before January 1, [2022] 2025. § 3. This act shall take effect immediately. S. 2509 201 A. 3009 PART GG Section 1. Subdivision 4 of section 22 of the public housing law, as amended by section 5 of part H of chapter 60 of the laws of 2016, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [four] TWELVE million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. § 2. Subdivision 4 of section 22 of the public housing law, as amended by section one of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twelve] TWENTY million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. § 3. Subdivision 4 of section 22 of the public housing law, as amended by section two of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twenty] TWENTY-EIGHT million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 4. Subdivision 4 of section 22 of the public housing law, as amended by section three of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twenty-eight] THIRTY-SIX million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 5. Subdivision 4 of section 22 of the public housing law, as amended by section four of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [thirty-six] FORTY-FOUR million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 6. This act shall take effect immediately; provided, however, section two of this act shall take effect April 1, 2022; section three of this act shall take effect April 1, 2023; section four of this act shall take effect April 1, 2024; and section five of this act shall take effect April 1, 2025. PART HH S. 2509 202 A. 3009 Section 1. Section 5 of part HH of chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, as amended by section 1 of part III of chapter 59 of the laws of 2018, is amended to read as follows: § 5. This act shall take effect immediately, provided that section two of this act shall take effect on January 1, 2015, and shall apply to taxable years beginning on or after January 1, 2015, with respect to "qualified production expenditures" and "transportation expenditures" paid or incurred on or after such effective date, regardless of whether the production of the qualified musical or theatrical production commenced before such date, provided further that this act shall expire and be deemed repealed [8 years after such date] JANUARY 1, 2026. § 2. Paragraph 1 of subdivision (e) of section 24-a of the tax law, as added by section 1 of part HH of chapter 59 of the laws of 2014, is amended to read as follows: (1) The aggregate amount of tax credits allowed under this section, subdivision forty-seven of section two hundred ten-B and subsection (u) of section six hundred six of this chapter in any calendar year shall be [four] EIGHT million dollars. Such aggregate amount of credits shall be allocated by the department of economic development among taxpayers in order of priority based upon the date of filing an application for allo- cation of musical and theatrical production credit with such department. If the total amount of allocated credits applied for in any particular year exceeds the aggregate amount of tax credits allowed for such year under this section, such excess shall be treated as having been applied for on the first day of the subsequent year. § 3. This act shall take effect immediately, provided, however, that the amendments to section 24-a of the tax law made by section two of this act shall not affect the expiration and repeal of such section and shall be deemed to expire and repeal therewith. PART II 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 B of chapter 59 of the laws of 2020, 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-two] TWENTY-FOUR, 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-one] TWENTY-THREE; 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 B of chapter 59 of the laws of 2020, are amended to read as follows: S. 2509 203 A. 3009 (1) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [twenty-two] TWENTY-FOUR, 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-one] TWENTY-THREE; 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 B of chapter 59 of the laws of 2020, 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-two] TWENTY-FOUR, 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-one] TWENTY-THREE; and § 4. This act shall take effect immediately. PART JJ Section 1. Section 12 of part V of chapter 61 of the laws of 2011, amending the economic development law, the tax law and the real property tax law, relating to establishing the economic transformation and facil- ity redevelopment program and providing tax benefits under that program, is amended to read as follows: § 12. This act shall take effect immediately and shall expire and be deemed repealed December 31, [2021] 2026. § 2. Paragraph (a) of subdivision 11 of section 400 of the economic development law, as amended by section 1 of part GG of chapter 58 of the laws of 2020, is amended to read as follows: (a) a correctional facility, as defined in paragraph (a) of subdivi- sion four of section two of the correction law, that has been selected by the governor of the state of New York for closure after April first, two thousand eleven but no later than March thirty-first, two thousand [twenty-one] TWENTY-SIX; or § 3. This act shall take effect immediately; provided, however, that the amendments to section 400 of the economic development law made by section two of this act shall not affect the repeal of such section and shall be deemed repealed therewith. S. 2509 204 A. 3009 PART KK Section 1. The opening paragraph of section 1310 of the general busi- ness law, as added by section 2 of part X of chapter 55 of the laws of 2018, is amended to read as follows: Except as otherwise provided in this article, the program shall be implemented, and enrollment of employees shall begin[, within twenty- four months after the effective date of this article] NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE. The provisions of this section shall be in force after the board opens the program for enroll- ment. § 2. Section 1315 of the general business law, as added by section 2 of part X of chapter 55 of the laws of 2018, is amended to read as follows: § 1315. Delayed implementation. The board may delay the implementation of the program an additional twelve months beyond the [twenty-four months] DATE established in section thirteen hundred ten of this article if the board determines that further delay is necessary to address legal, financial or other programmatic concerns impacting the viability of the program. The board shall provide reasonable notice of such delay to the governor, the commissioner, the speaker of the assembly, the temporary president of the senate, the chair of the assembly ways and means committee, the chair of the senate finance committee, the chair of the assembly labor committee, and the chair of the senate labor commit- tee. § 3. This act shall take effect immediately. PART LL Section 1. For the period from and after March 1, 2020 until such time as the licensee and the video lottery gaming facility that are each subject to subdivision 2 of section 1355 of the racing, pari-mutuel wagering and breeding law, as added by the Upstate New York Gaming Economic Development Act of 2013, as amended, have each been continuous- ly operating without any restrictions related to Covid-19 for at least six full and consecutive calendar months, the payments to the relevant horsemen and breeders required by subdivision 2 of section 1355 of the racing, pari-mutuel wagering and breeding law, as added by the Upstate New York Gaming Economic Development Act of 2013, as amended, shall not accrue and shall be permanently waived and forgiven. The accrual and obligation to make payments under such subdivision 2 of such section 1355 shall recommence at such time as the licensee and the video lottery gaming facility that are each subject to such subdivision 2 of such section 1355 have each been continuously operating without any restrictions related to Covid-19 for at least six full and consecutive calendar months. Payments to the relevant horsemen and breeders for the period beginning January 1, 2020 through February 28, 2020 shall be payable in six equal monthly installments of $106,407 per month over a six-month period beginning with the first month after the licensee has been continuously operating without any restrictions related to Covid-19 for at least six full and consecutive calendar months. § 2. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in S. 2509 205 A. 3009 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 LL of this act shall be as specifically set forth in the last section of such Parts.
2021-S2509A - Details
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2021-S2509A - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2021-2022 state fiscal year; extends the top rate of income tax (Part A); imposes a pass-through entity tax (Part C); relates to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D)
2021-S2509A - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 2509--A A. 3009--A S E N A T E - A S S E M B L Y January 20, 2021 ___________ 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 the tax law, in relation to imposing a tax surcharge on wealthy taxpayers (Part A); to amend the tax law, in relation to delaying tax reductions (Part B); to amend the tax law and the state finance law, in relation to the imposition of a pass-through entity tax (Part C); to amend the economic development law and the tax law, in relation to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D); to amend the tax law, in relation to reforming and simplifying various business tax provisions thereof; and to repeal certain provisions of such law related thereto (Part E); to amend the tax law, in relation to the empire state film production credit and the empire state film post production credit (Part F); to amend the tax law, in relation to wage filer reporting and reconciliation (Part G); relating to consti- tuting 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 cannabis and to exempt certain persons from prosecution for the use, consumption, display, production or distrib- ution 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 alco-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12574-02-1 S. 2509--A 2 A. 3009--A holic 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 chap- ter 90 of the laws of 2014 amending the public health law, the tax law, the state finance law, the general business law, the penal law and the criminal procedure law relating to medical use of marihuana, in relation to the effectiveness thereof; to repeal title 5-A of arti- cle 33 of the public health law relating to medical use of marihuana; to repeal article 33-B of the public health law relating to the regu- lation of cannabinoid hemp and hemp extract; to repeal subdivision 4 of section 220.06 and subdivision 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 marihuana; and to repeal paragraph (f) of subdivision 2 of section 850 of the general business law relating to drug related paraphernalia (Part H); to amend the tax law, in relation to requiring vacation rental marketplace providers collect sales tax (Part I); to amend the tax law, to impose sales tax on such admissions to race tracks and simulcast facilities; and to repeal section 227, section 306, section 406, subparagraph (ii) of paragraph b of subdivi- sion 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and breeding law, relating to certain taxes on admissions to race tracks and simulcast facilities (Part J); to amend the tax law, in relation to increasing the interest free period for certain sales tax refunds (Part K); to amend the tax law, in relation to the authority of counties to impose sales and compensating use taxes; and to repeal certain provisions of such law relating thereto (Part L); to amend the tax law, in relation to exempting from sales and use tax certain tangible personal property or services (Part M); to amend the tax law, in relation to increasing the total dollar amount for vendors' gross receipts necessary for regis- tration filing (Part N); to amend the tax law,in relation to imposing liability for real estate transfer taxes on responsible persons, prohibiting grantors from passing real estate transfer tax to gran- tees, and exempting certain organizations from the LLC disclosure requirement (Part O); to amend the tax law, in relation to restrictions on certain retail dealers whose registrations have been revoked or who have been forbidden from selling cigarettes or tobacco products (Part P); to amend the tax law, in relation to the timing and method for filing certain returns (Part Q); to amend the tax law, in relation to determining liability for the collection of taxes on medallion taxicab trips and congestion surcharges (Part R); to amend the tax law, in relation to increasing tax return preparer penalties for failure to register and requiring the display of certain documents by tax return preparers (Part S); to amend the tax law, in relation to permitting the commissioner of taxation and finance to seek judicial review of decisions of the tax appeals tribunal (Part T); to amend the real property law and the tax law, in relation to electronic submission of consolidated real property transfer forms; and to repeal certain provisions of the real property law relating thereto (Part U); to amend the real property tax law, in relation to providing that beginning with assessment rolls used to levy school district taxes for the 2021--2022 school year, no application for a new enhanced exemption under this section may be approved (Subpart A); to amend the real property tax law, in relation to extending the cutoff date for a STAR credit switch (Subpart B); to amend the tax law, in relation to S. 2509--A 3 A. 3009--A tax returns of deceased individuals (Subpart C); to amend the real property tax law, in relation to the powers of the state board of real property tax services and the commissioner of taxation and finance; to amend the tax law, in relation to requiring the commissioner of taxa- tion and finance verify the income eligibility of recipients of the basic STAR exemption; and to repeal certain provisions of the real property tax law relating thereto (Subpart D); and to amend the real property law, in relation to exemptions for manufactured home park owners or operators and mobile home owners; and to repeal certain provisions of such law relating thereto (Subpart E)(Part V); to amend the real property tax law, in relation to facilitating the adminis- tration of the real property tax, and to repeal section 307 of such law relating thereto (Part W); to amend the real property tax law and the general municipal law, in relation to promoting the development of renewable energy projects (Part X); to amend the racing, pari-mutuel wagering and breeding law, in relation to authorizing mobile sports wagering; and providing for the repeal of certain provisions of such law relating thereto (Part Y); authorizing a request for information related to gaming facility licenses (Part Z); to amend the tax law, in relation to a keno style lottery game (Part AA); to amend the tax law, in relation to restrictions on certain lottery draw game offerings (Part BB); to amend the racing, pari-mutuel wagering and breeding law, in relation to the office of the gaming inspector general; and to repeal certain provisions of such law relating thereto (Part CC); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simul- cast, 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-mu- tuel wagering and breeding 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 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 DD); to amend chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions for five years (Part EE); to amend the tax law and chapter 60 of the laws of 2016 amending the tax law relating to creating a farm work- force retention credit, in relation to extending the provisions of such credit through tax year 2024 (Part FF); to amend the public hous- ing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part GG); to amend chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to the effec- tiveness thereof; and to amend the tax law in relation to increasing the aggregate cap on the amount of such credit (Part HH); to amend the tax law, in relation to extending hire a veteran credit for an addi- tional year (Part II); to amend chapter 61 of the laws of 2011 amend- ing the economic development law, the tax law and the real property tax law, relating to establishing the economic transformation and facility redevelopment program and providing tax benefits under that program and to amend the economic development law, in relation to extending the tax credits under the economic transformation and facil- S. 2509--A 4 A. 3009--A ity redevelopment program (Part JJ); to amend the general business law, in relation to requiring the implementation of the secure choice program by a certain date (Part KK); and in relation to temporarily suspending certain racing support payments (Part LL) 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 2021-2022 state fiscal year. Each component is wholly contained within a Part identified as Parts A through LL. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, including the effective date of the Part, which makes 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. The tax law is amended by adding a new section 602 to read as follows: § 602. (A) SURCHARGE. IN ADDITION TO THE TAXES IMPOSED UNDER SECTION SIX HUNDRED ONE OF THIS PART, AN INCOME TAX SURCHARGE IS HEREBY IMPOSED ON INDIVIDUALS FOR THE TAXABLE YEARS TWO THOUSAND TWENTY-ONE THROUGH TWO THOUSAND TWENTY-THREE ON THE TAXPAYER'S NEW YORK TAXABLE INCOME, AT THE FOLLOWING RATES: IF THE TAXPAYER'S NEW YORK THE SURCHARGE RATE IS: TAXABLE INCOME IS: OVER $5,000,000 BUT NOT OVER $10,000,000 0.5 PERCENT OVER $10,000,000 BUT NOT OVER $25,000,000 1.0 PERCENT OVER $25,000,000 BUT NOT OVER $50,000,000 1.5 PERCENT OVER $50,000,000 BUT NOT OVER $100,000,000 1.75 PERCENT OVER $100,000,000 2.0 PERCENT (B) METHOD OF PAYMENT. A TAXPAYER SHALL PAY THE TAX SURCHARGE WHEN THE TAXPAYER FILES HIS OR HER PERSONAL INCOME TAX RETURN REQUIRED TO BE FILED PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE. A TAXPAYER MAY ALSO PRE-PAY IN TAXABLE YEAR TWO THOUSAND TWENTY-ONE ALL OR A PORTION OF THE TAX SURCHARGE FOR TAXABLE YEAR TWO THOUSAND TWENTY-TWO AND/OR TWO THOUSAND TWENTY-THREE THAT THE TAXPAYER ESTIMATES WILL BE OWED UNDER THIS SECTION IN THE MANNER THE COMMISSIONER OF TAXATION AND FINANCE SHALL PRESCRIBE. THE COMMISSIONER SHALL PRESCRIBE A METHOD OF RECORDING AND APPLYING THE PAYMENT OF PRE-PAID TAX SURCHARGE AMOUNTS MADE PURSUANT TO THIS TO THIS SUBSECTION, WITH THE PRE-PAYMENT REDUCING THE TAXPAYER'S SURCHARGE LIABILITY FIRST FOR TAXABLE YEAR TWO THOUSAND TWENTY-TWO, WITH THE REMAINDER APPLIED TO REDUCE THE TAXPAYER'S SURCHARGE LIABILITY IN TAXABLE YEAR TWO THOUSAND TWENTY-THREE AND ANY EXCESS IN TAXABLE YEAR TWO THOUSAND TWENTY-THREE TREATED AS A TAX OVER- PAYMENT TO BE REFUNDED OR CREDITED AGAINST TAX OTHERWISE OWED UNDER THIS ARTICLE; PROVIDED HOWEVER, THAT NO INTEREST WILL BE PAID THEREON. THE SURCHARGE IMPOSED BY THIS SECTION SHALL BE INCLUDED FOR PURPOSES OF S. 2509--A 5 A. 3009--A COMPUTING AND REMITTING ESTIMATED TAX PURSUANT TO SECTION SIX HUNDRED EIGHTY-FIVE OF THIS ARTICLE. THE CREDITS ALLOWED UNDER THIS ARTICLE MAY NOT BE USED TO REDUCE THE SURCHARGE IMPOSED BY THIS SECTION. § 2. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 43 to read as follows: (43) TAXPAYERS WHO PRE-PAY THE TAX SURCHARGE IMPOSED UNDER SUBSECTION (A) OF SECTION SIX HUNDRED TWO OF THIS ARTICLE IN TAXABLE YEAR TWO THOU- SAND TWENTY-ONE SHALL BE ALLOWED A DEDUCTION AS COMPUTED IN THIS PARA- GRAPH BEGINNING IN TAXABLE YEAR TWO THOUSAND TWENTY-FOUR. IN TAXABLE YEAR TWO THOUSAND TWENTY-FOUR, THE DEDUCTION SHALL BE EQUAL TO THE LESS- ER OF (I) THE SUM OF THE TAXPAYER'S INTEREST, DIVIDENDS AND CAPITAL GAINS TAXABLE IN THIS STATE OR (II) THE PRODUCT OF FIFTY PERCENT AND THE PRE-PAYMENT INCOME EQUIVALENT. FOR PURPOSES OF THIS PARAGRAPH, THE PRE- PAYMENT INCOME EQUIVALENT IS THE QUOTIENT OF THE AMOUNT OF THE TAX SURCHARGE PRE-PAYMENT THE TAXPAYER MADE PURSUANT TO SUBSECTION (B) OF SECTION SIX HUNDRED TWO OF THIS ARTICLE AND EIGHT AND EIGHTY-TWO HUNDREDTHS PERCENT. THE DEDUCTION ALLOWED IN TAXABLE YEAR TWO THOUSAND TWENTY-FIVE AND THEREAFTER SHALL BE EQUAL TO THE LESSER OF (I) THE SUM OF THE TAXPAYER'S INTEREST, DIVIDENDS AND CAPITAL GAINS TAXABLE IN THIS STATE OR (II) THE REMAINING AMOUNT OF THE TAXPAYER'S PRE-PAYMENT INCOME EQUIVALENT. THE TAXPAYER SHALL CONTINUE TO BE ALLOWED THIS DEDUCTION UNTIL ALL OF THE TAXPAYER'S PRE-PAYMENT INCOME EQUIVALENT IS USED UP IN CALCULATING THIS DEDUCTION. § 3. Section 606 of the tax law is amended by adding a new subsection (www) to read as follows: (WWW) TAXPAYERS WHO PRE-PAY THE TAX SURCHARGE IMPOSED UNDER SECTION SIX HUNDRED TWO OF THIS ARTICLE BUT DIE BEFORE THE REMAINDER OF ITS PRE-PAYMENT INCOME EQUIVALENT IS USED UP AS PROVIDED IN PARAGRAPH FORTY-THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THIS ARTICLE, WILL BE ALLOWED A TAX CREDIT ON THE TAXPAYER'S FINAL RETURN EQUAL TO THE REMAINING AMOUNT OF TAX SURCHARGE PRE-PAYMENT THE TAXPAYER HAS AVAILABLE FOR USE THAT CORRESPONDS TO THE REMAINING PRE-PAYMENT INCOME EQUIVALENT REFERRED TO IN PARAGRAPH FORTY-THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THIS ARTICLE. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAY- MENT TO BE REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. § 4. Notwithstanding any provision of law to the contrary, the method of determining the amount to be deducted and withheld from wages on account of taxes imposed by or pursuant to the authority of article 22 of the tax law in connection with the implementation of the provisions of this act shall be prescribed by the commissioner of taxation and finance with due consideration to the effect such withholding tables and methods would have on the receipt and amount of revenue. The commission- er of taxation and finance shall adjust such withholding tables and methods in regard to taxable years beginning in 2021 and after in such manner as to result, so far as practicable, in withholding from an employee's wages an amount substantially equivalent to the tax reason- ably estimated to be due for such taxable years as a result of the provisions of this act. Any such changes in withholding tables and meth- ods for tax year 2021 shall be adopted and effective as soon as practi- cable. The commissioner of taxation and finance may make similar changes to withholding tables and methods. The withholding tables and methods S. 2509--A 6 A. 3009--A for tax year 2021 shall not be prescribed by regulation, notwithstanding any provision of the state administrative procedure act to the contrary. § 5. The additions to tax imposed by subsection (c) of section 685 of the tax law shall not apply to any installments of estimated tax due on or before September fifteenth, two thousand twenty-one if the underpay- ment is the result of the enactment of the tax surcharge for the tax year two thousand twenty-one prescribed by this act. § 6. Severability. The powers granted and the duties imposed by this act and the applicability thereof to any taxpayers shall be construed to be independent and severable and if any one or more sections, subsections, clauses, sentences or parts of this act, or the applicabil- ity thereof to any taxpayers shall be adjudged unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions thereof or the applicability thereof to other taxpayers, but shall be confined in its operation to the specific provisions so held unconstitutional and invalid and to the taxpayers affected thereby. If any provisions under section two or three of this act shall be adjudged unconstitutional or invalid, then the entire affected section of this act shall be deemed void. § 7. This act shall take effect immediately. PART B Section 1. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law, clauses (iii), (iv), (v), (vi) and (vii) as amended by section 1 of part P of chapter 59 of the laws of 2019 and clause (viii) as added by section 1 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iii) For taxable years beginning in two thousand twenty AND TWO THOU- SAND TWENTY-ONE the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over $27,900 Over $43,000 but not over $161,550 $2,093 plus 6.09% of excess over $43,000 Over $161,550 but not over $323,200 $9,313 plus 6.41% of excess over $161,550 Over $323,200 but not over $19,674 plus 6.85% of excess $2,155,350 $323,200 over Over $2,155,350 $145,177 plus 8.82% of excess over $2,155,350 (iv) For taxable years beginning in two thousand [twenty-one] TWENTY- TWO the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over S. 2509--A 7 A. 3009--A $27,900 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over $43,000 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over $161,550 Over $323,200 but not over $19,403 plus 6.85% of excess $2,155,350 over $323,200 Over $2,155,350 $144,905 plus 8.82% of excess over $2,155,350 (v) For taxable years beginning in two thousand [twenty-two] TWENTY- THREE the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over $27,900 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over $161,550 Over $323,200 but not over $2,155,350 $19,124 plus 6.85% of excess over $323,200 Over $2,155,350 $144,626 plus 8.82% of excess over $2,155,350 (vi) For taxable years beginning in two thousand [twenty-three] TWEN- TY-FOUR the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over $27,900 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over $161,550 Over $323,200 but not over $18,834 plus 6.85% of $2,155,350 excess over $323,200 Over $2,155,350 $144,336 plus 8.82% of excess over $2,155,350 (vii) For taxable years beginning in two thousand [twenty-four] TWEN- TY-FIVE the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over $27,900 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over $161,550 Over $323,200 [but not over] $18,544 plus 6.85% of [$2,155,350] excess over $323,200 [Over $2,155,350 $144,047 plus 8.82% of excess over S. 2509--A 8 A. 3009--A $2,155,350] (viii) For taxable years beginning after two thousand [twenty-four] TWENTY-FIVE the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over $27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over $161,550 Over $323,200 $18,252 plus 6.85% of excess over $323,200 § 2. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (b) of section 601 of the tax law, clauses (iii), (iv), (v), (vi) and (vii) as amended by section 2 of part P of chapter 59 of the laws of 2019 and clause (viii) as added by section 2 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iii) For taxable years beginning in two thousand twenty AND TWO THOU- SAND TWENTY-ONE the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over $32,200 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over $107,650 Over $269,300 but not over $16,524 plus 6.85% of $1,616,450 excess over $269,300 Over $1,616,450 $108,804 plus 8.82% of excess over $1,616,450 (iv) For taxable years beginning in two thousand [twenty-one] TWENTY- TWO the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over $32,200 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over $107,650 Over $269,300 but not over $16,304 plus 6.85% of $1,616,450 excess over $269,300 Over $1,616,450 $108,584 plus 8.82% of excess over $1,616,450 S. 2509--A 9 A. 3009--A (v) For taxable years beginning in two thousand [twenty-two] TWENTY- THREE the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over $20,900 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over $107,650 Over $269,300 but not over $16,079 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 $108,359 plus 8.82% of excess over $1,616,450 (vi) For taxable years beginning in two thousand [twenty-three] TWEN- TY-FOUR the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over $20,900 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over $107,650 Over $269,300 but not over $15,845 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 $108,125 plus 8.82% of excess over $1,616,450 (vii) For taxable years beginning in two thousand [twenty-four] TWEN- TY-FIVE the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over $20,900 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over $107,650 Over $269,300 [but not over] $15,612 plus 6.85% of excess [$1,616,450] over $269,300 [Over $1,616,450 $107,892 plus 8.82% of excess over $1,616,450] (viii) For taxable years beginning after two thousand [twenty-four] TWENTY-FIVE the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over S. 2509--A 10 A. 3009--A $17,650 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over $20,900 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over $107,650 Over $269,300 $15,371 plus 6.85% of excess over $269,300 § 3. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (c) of section 601 of the tax law, clauses (iii), (iv), (v), (vi) and (vii) as amended by section 3 of part P of chapter 59 of the laws of 2019 and clause (viii) as added by section 3 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iii) For taxable years beginning in two thousand twenty AND TWO THOU- SAND TWENTY-ONE the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over $13,900 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over $21,400 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over $80,650 Over $215,400 but not over $13,288 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $72,345 plus 8.82% of excess over $1,077,550 (iv) For taxable years beginning in two thousand [twenty-one] TWENTY- TWO the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over $13,900 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over $21,400 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over $80,650 Over $215,400 but not over $13,109 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $72,166 plus 8.82% of excess over $1,077,550 (v) For taxable years beginning in two thousand [twenty-two] TWENTY- THREE the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over S. 2509--A 11 A. 3009--A $11,700 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over $13,900 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over $80,650 Over $215,400 but not over $12,926 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $71,984 plus 8.82% of excess over $1,077,550 (vi) For taxable years beginning in two thousand [twenty-three] TWEN- TY-FOUR the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over $13,900 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over $80,650 Over $215,400 but not over $12,738 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $71,796 plus 8.82% of excess over $1,077,550 (vii) For taxable years beginning in two thousand [twenty-four] TWEN- TY-FIVE the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over $13,900 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over $80,650 Over $215,400 [but not over] $12,550 plus 6.85% of excess [$1,077,550] over $215,400 [Over $1,077,550 $71,608 plus 8.82% of excess over $1,077,550] (viii) For taxable years beginning after two thousand [twenty-four] TWENTY-FIVE the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over $13,900 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over $80,650 Over $215,400 $12,356 plus 6.85% of excess over $215,400 S. 2509--A 12 A. 3009--A § 4. Subparagraph (D) of paragraph 1 of subsection (d-1) of section 601 of the tax law, as amended by section 4 of part P of chapter 59 of the laws of 2019, is amended to read as follows: (D) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (a) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (a) of this section less the sum of the tax table benefits in subparagraphs (A), (B) and (C) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over two million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after January first, two thousand twelve and before January first, two thou- sand twenty-five. § 5. Subparagraph (C) of paragraph 2 of subsection (d-1) of section 601 of the tax law, as amended by section 5 of part P of chapter 59 of the laws of 2019, is amended to read as follows: (C) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (b) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (b) of this section less the sum of the tax table benefits in subparagraphs (A) and (B) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one million five hundred thousand dollars and the denominator is fifty thou- sand dollars. This subparagraph shall apply only to taxable years begin- ning on or after January first, two thousand twelve and before January first, two thousand twenty-five. § 6. Subparagraph (C) of paragraph 3 of subsection (d-1) of section 601 of the tax law, as amended by section 6 of part P of chapter 59 of the laws of 2019, is amended to read as follows: (C) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (c) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (c) of this section less the sum of the tax table benefits in subparagraphs (A) and (B) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after January first, two thousand twelve and before January first, two thou- sand twenty-five. § 7. Notwithstanding any provision of law to the contrary, the method of determining the amount to be deducted and withheld from wages on account of taxes imposed by or pursuant to the authority of article 22 of the tax law in connection with the implementation of the provisions of this act shall be prescribed by the commissioner of taxation and S. 2509--A 13 A. 3009--A finance with due consideration to the effect such withholding tables and methods would have on the receipt and amount of revenue. The commission- er of taxation and finance shall adjust such withholding tables and methods in regard to taxable years beginning in 2021 and after in such manner as to result, so far as practicable, in withholding from an employee's wages an amount substantially equivalent to the tax reason- ably estimated to be due for such taxable years as a result of the provisions of this act. Any such changes in withholding tables and meth- ods for tax year 2021 shall be adopted and effective as soon as practi- cable. The commissioner of taxation and finance may make similar changes to withholding tables and methods. The withholding tables and methods for tax year 2021 shall not be prescribed by regulation, notwithstanding any provision of the state administrative procedure act to the contrary. § 8. The additions to tax imposed by subsection (c) of section 685 of the tax law shall not apply to any installments of estimated tax due on or before September fifteenth, two thousand twenty-one if the underpay- ment is the result of the enactment of the tax rates for the tax year two thousand twenty-one prescribed by this act. § 9. This act shall take effect immediately. PART C Section 1. The tax law is amended by adding a new article 24-A to read as follows: ARTICLE 24-A PASS-THROUGH ENTITY TAX SECTION 860. DEFINITIONS. 861. PASS-THROUGH ENTITY TAX ELECTION. 862. IMPOSITION AND RATE OF TAX. 863. PASS-THROUGH ENTITY TAX CREDIT. 864. PAYMENT OF ESTIMATED TAX. 865. FILING OF RETURN AND PAYMENT OF TAX. 866. ACCOUNTING PERIODS AND METHODS. 867. PROCEDURAL PROVISIONS. § 860. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE: (A) ELIGIBLE PARTNERSHIP. ELIGIBLE PARTNERSHIP MEANS ANY PARTNERSHIP AS PROVIDED FOR IN SECTION 7701(A)(2) OF THE INTERNAL REVENUE CODE THAT CONSISTS SOLELY OF PARTNERS WHO ARE INDIVIDUALS. AN ELIGIBLE PARTNER- SHIP INCLUDES ANY LIMITED LIABILITY COMPANY TREATED AS A PARTNERSHIP FOR FEDERAL INCOME TAX PURPOSES THAT OTHERWISE MEETS THE REQUIREMENTS OF THIS SUBDIVISION. (B) ELIGIBLE S CORPORATION. ELIGIBLE S CORPORATION MEANS ANY NEW YORK S CORPORATION AS DEFINED PURSUANT TO THIS CHAPTER THAT CONSISTS SOLELY OF SHAREHOLDERS WHO ARE INDIVIDUALS. AN ELIGIBLE S CORPORATION INCLUDES ANY LIMITED LIABILITY COMPANY TREATED AS AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES THAT OTHERWISE MEETS THE REQUIREMENTS OF THIS SUBDI- VISION. (C) ELECTING PARTNERSHIP. ELECTING PARTNERSHIP MEANS ANY ELIGIBLE PARTNERSHIP THAT MADE A VALID, TIMELY ELECTION PURSUANT TO SECTION EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE. (D) ELECTING S CORPORATION. ELECTING S CORPORATION MEANS ANY ELIGIBLE S CORPORATION THAT MADE A VALID, TIMELY ELECTION PURSUANT TO SECTION EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE. (E) TAXPAYER. TAXPAYER MEANS ANY ELECTING PARTNERSHIP OR ELECTING S CORPORATION. S. 2509--A 14 A. 3009--A (F) PASS-THROUGH ENTITY TAX. PASS-THROUGH ENTITY TAX MEANS THE TOTAL TAX IMPOSED BY THIS ARTICLE ON ELECTING PARTNERSHIPS AND ELECTING S CORPORATIONS. (G) PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO). PASS- THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO) MEANS: (1) IN THE CASE OF AN ELECTING PARTNERSHIP, THE SUM OF (I) FEDERAL TAXABLE INCOME (NOT LESS THAN ZERO), AS DESCRIBED IN SECTION 702(A)(8) OF THE INTERNAL REVENUE CODE, TO THE EXTENT EARNED DIRECTLY BY SUCH PARTNERSHIP; (II) TAXES PAID OR INCURRED DURING THE TAXABLE YEAR PURSU- ANT TO THIS ARTICLE BY A PARTNERSHIP TO THE EXTENT DEDUCTED IN COMPUTING FEDERAL TAXABLE INCOME; (III) TAXES SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED PURSUANT TO THIS ARTICLE PAID OR INCURRED DURING THE TAXABLE YEAR TO ANOTHER STATE OF THE UNITED STATES, A POLITICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF COLUMBIA TO THE EXTENT DEDUCTED IN COMPUTING FEDERAL TAXABLE INCOME; AND (IV) GUARANTEED PAYMENTS PAID BY THE PARTNERSHIP TO ITS PARTNERS AS DESCRIBED IN SECTION 707(C) OF THE INTERNAL REVENUE CODE. (2) IN THE CASE OF AN ELECTING S CORPORATION, THE SUM OF (I) FEDERAL NONSEPARATELY COMPUTED INCOME (NOT LESS THAN ZERO), AS DESCRIBED IN SECTION 1366(A)(2) OF THE INTERNAL REVENUE CODE, WHETHER EARNED BY SUCH S CORPORATION OR BY A PARTNERSHIP OF WHICH THE S CORPORATION IS A PART- NER; (II) TAXES PAID OR INCURRED DURING THE TAXABLE YEAR PURSUANT TO THIS ARTICLE BY AN S CORPORATION TO THE EXTENT DEDUCTED IN COMPUTING FEDERAL ORDINARY INCOME; AND (III) TAXES SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED PURSUANT TO THIS ARTICLE PAID OR INCURRED DURING THE TAXABLE YEAR TO ANOTHER STATE OF THE UNITED STATES, A POLITICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF COLUMBIA TO THE EXTENT DEDUCTED IN COMPUTING FEDERAL TAXABLE INCOME. (H) PARTNERSHIP TAXABLE INCOME. PARTNERSHIP TAXABLE INCOME OF AN ELECTING PARTNERSHIP MEANS THE SUM OF (1) THE ELECTING PARTNERSHIP'S PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO), ALLOCATED TO NEW YORK STATE PURSUANT TO SUBDIVISION (B) OF SECTION EIGHT HUNDRED SIXTY- TWO OF THIS ARTICLE; AND (2) THE ELECTING PARTNERSHIP'S PROPORTIONATE SHARE OF ANY PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO) FROM A PARTNERSHIP OF WHICH IT IS A PARTNER TO THE EXTENT IT WAS SOURCED TO NEW YORK BY SUCH PARTNERSHIP PURSUANT TO THE PRINCIPLES OF ARTICLE TWEN- TY-TWO OF THIS CHAPTER. (I) S CORPORATION TAXABLE INCOME. S CORPORATION TAXABLE INCOME OF AN ELECTING S CORPORATION MEANS THE ELECTING S CORPORATION'S PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO) ALLOCATED TO NEW YORK STATE PURSUANT TO SUBDIVISION (C) OF SECTION EIGHT HUNDRED SIXTY-TWO OF THIS ARTICLE. § 861. PASS-THROUGH ENTITY TAX ELECTION. (A) ANY ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION DOING BUSINESS WITHIN THIS STATE SHALL BE ALLOWED TO MAKE AN ANNUAL ELECTION TO BE TAXED PURSUANT TO THIS ARTICLE. (B) IN ORDER TO BE EFFECTIVE, THE ANNUAL ELECTION MUST BE MADE (1) IF THE ENTITY IS AN S CORPORATION, BY ANY OFFICER, MANAGER OR SHAREHOLDER OF THE S CORPORATION WHO IS AUTHORIZED UNDER THE LAW OF THE STATE WHERE THE CORPORATION IS INCORPORATED OR UNDER THE S CORPORATION'S ORGANIZA- TIONAL DOCUMENTS TO MAKE THE ELECTION AND WHO REPRESENTS TO HAVING SUCH AUTHORIZATION UNDER PENALTY OF PERJURY; OR (2) IF THE ENTITY IS NOT AN S CORPORATION, BY ANY MEMBER, PARTNER, OWNER, OR OTHER INDIVIDUAL WITH AUTHORITY TO BIND THE ENTITY OR SIGN RETURNS PURSUANT TO SECTION SIX HUNDRED FIFTY-THREE OF THIS CHAPTER. (C) IF THE ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION REPORTS ON A CALENDAR YEAR BASIS, THE ANNUAL ELECTION MUST BE MADE BY DECEMBER FIRST S. 2509--A 15 A. 3009--A OF EACH CALENDAR YEAR AND WILL TAKE EFFECT FOR THE IMMEDIATELY SUCCEED- ING CALENDAR YEAR. IF AN ELECTION IS MADE AFTER DECEMBER FIRST OF A CALENDAR YEAR, IT WILL FIRST TAKE EFFECT IN THE SECOND SUCCEEDING CALEN- DAR YEAR. (D) IF THE ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION REPORTS ON A FISCAL YEAR BASIS, THE ANNUAL ELECTION MUST BE MADE BY THE FIRST DAY OF THE LAST FULL MONTH PRIOR TO THE START OF THE FISCAL YEAR AND WILL TAKE EFFECT FOR THE IMMEDIATELY SUCCEEDING FISCAL YEAR. IF AN ELECTION IS MADE AFTER SUCH DATE, IT WILL FIRST TAKE EFFECT IN THE SECOND SUCCEEDING FISCAL YEAR. (E) (1) TERMINATION OF ELECTION. AN ELECTION PURSUANT TO SUBDIVISION (A) OF THIS SECTION SHALL BE TERMINATED WHENEVER, AT ANY TIME DURING THE TAXABLE YEAR, THE TAXPAYER CEASES TO BE AN ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION. (2) EFFECTIVE DATE OF TERMINATION. THE TERMINATION OF AN ELECTION IS EFFECTIVE IMMEDIATELY UPON THE TAXPAYER CEASING TO BE AN ELIGIBLE PART- NERSHIP OR ELIGIBLE S CORPORATION AND NO TAX WILL BE DUE PURSUANT TO THIS ARTICLE FOR THE TAXABLE YEAR. (3) ABATEMENT OF PENALTIES. IF A TERMINATION OCCURS PURSUANT TO THIS SUBDIVISION SOLELY BECAUSE A PARTNER, MEMBER OR SHAREHOLDER OF AN OTHER- WISE ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION DIED DURING THE TAXABLE YEAR AND THE SUCCESSOR TO THE DECEDENT'S INTEREST IN THE PART- NERSHIP OR S CORPORATION IS NOT AN INDIVIDUAL, NO ADDITION TO TAX WILL BE IMPOSED PURSUANT TO SUBSECTION (C) OF SECTION SIX HUNDRED EIGHTY-FIVE OF THIS CHAPTER ON THE PARTNERS, MEMBERS AND SHAREHOLDERS OF SUCH PART- NERSHIP OR S CORPORATION SOLELY FOR UNDERPAYMENT OF ESTIMATED PERSONAL INCOME TAX AS A RESULT OF THE TERMINATION OF THE ELECTION MADE PURSUANT TO THIS ARTICLE. § 862. IMPOSITION AND RATE OF TAX. (A) GENERAL. A TAX IS HEREBY IMPOSED FOR EACH TAXABLE YEAR ON THE PARTNERSHIP TAXABLE INCOME OF EVERY ELECTING PARTNERSHIP DOING BUSINESS WITHIN THIS STATE AND ON THE S CORPORATION TAXABLE INCOME OF EVERY ELECTING S CORPORATION DOING BUSI- NESS WITHIN THIS STATE. THIS TAX SHALL BE IN ADDITION TO ANY OTHER TAXES IMPOSED AND SHALL BE AT THE RATE OF SIX AND EIGHTY-FIVE HUNDREDTHS PERCENT FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-TWO. (B) ALLOCATION TO NEW YORK BY AN ELECTING PARTNERSHIP. IN DETERMINING THE AMOUNT OF PARTNERSHIP TAXABLE INCOME, THE ADJUSTED NET INCOME OF THE ELECTING PARTNERSHIP SHALL BE ALLOCATED TO THIS STATE PURSUANT TO THE PRINCIPLES OF ARTICLE TWENTY-TWO OF THIS CHAPTER. (C) ALLOCATION TO NEW YORK BY AN ELECTING S CORPORATION. IN DETERMIN- ING THE AMOUNT OF S CORPORATION TAXABLE INCOME, THE ADJUSTED NET INCOME OF THE ELECTING S CORPORATION SHALL BE ALLOCATED TO THIS STATE BY MULTI- PLYING THE ADJUSTED NET INCOME OF THE ELECTING S CORPORATION BY THE BUSINESS APPORTIONMENT FACTOR OF THE ELECTING S CORPORATION AS CALCU- LATED PURSUANT TO SECTION TWO HUNDRED TEN-A OF THIS CHAPTER. § 863. PASS-THROUGH ENTITY TAX CREDIT. AN INDIVIDUAL SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER THAT IS A PARTNER OR MEMBER IN AN ELECTING PARTNERSHIP OR A SHAREHOLDER OF AN ELECTING S CORPORATION SUBJECT TO TAX UNDER THIS ARTICLE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED PURSUANT TO ARTICLE TWENTY-TWO OF THIS CHAPTER, COMPUTED PURSUANT TO THE PROVISIONS OF SUBSECTION (KKK) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER. § 864. PAYMENT OF ESTIMATED TAX. (A) DEFINITION OF ESTIMATED TAX. ESTIMATED TAX MEANS THE AMOUNT THAT AN ELECTING PARTNERSHIP OR ELECTING S. 2509--A 16 A. 3009--A S CORPORATION ESTIMATES TO BE THE TAX IMPOSED BY SECTION EIGHT HUNDRED SIXTY-TWO OF THIS ARTICLE FOR THE CURRENT TAXABLE YEAR. (B) GENERAL. THE ESTIMATED TAX SHALL BE PAID AS FOLLOWS FOR AN ELECT- ING PARTNERSHIP AND AN ELECTING S CORPORATION THAT REPORTS ON A CALENDAR YEAR BASIS: (1) THE ESTIMATED TAX SHALL BE PAID IN FOUR EQUAL INSTALLMENTS ON MARCH FIFTEENTH, JUNE FIFTEENTH, SEPTEMBER FIFTEENTH AND DECEMBER FIFTEENTH. (2) THE AMOUNT OF ANY REQUIRED INSTALLMENT SHALL BE TWENTY-FIVE PERCENT OF THE REQUIRED ANNUAL PAYMENT. (3) THE REQUIRED ANNUAL PAYMENT IS THE LESSER OF: (A) NINETY PERCENT OF THE TAX SHOWN ON THE RETURN FOR THE TAXABLE YEAR; OR (B) ONE HUNDRED PERCENT OF THE TAX SHOWN ON THE RETURN OF THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION FOR THE PRECEDING TAXABLE YEAR. (C) APPLICATION TO SHORT TAXABLE YEAR. THIS SECTION SHALL APPLY TO A TAXABLE YEAR OF LESS THAN TWELVE MONTHS IN ACCORDANCE WITH PROCEDURES ESTABLISHED BY THE COMMISSIONER. (D) FISCAL YEAR. THIS SECTION SHALL APPLY TO A TAXABLE YEAR OTHER THAN A CALENDAR YEAR BY THE SUBSTITUTION OF THE MONTHS OF SUCH FISCAL YEAR FOR THE CORRESPONDING MONTHS SPECIFIED IN THIS SECTION. (E) INSTALLMENTS PAID IN ADVANCE. AN ELECTING PARTNERSHIP OR ELECTING S CORPORATION MAY ELECT TO PAY ANY INSTALLMENT OF ITS ESTIMATED TAX PRIOR TO THE DATE PRESCRIBED FOR THE PAYMENT THEREOF. § 865. FILING OF RETURN AND PAYMENT OF TAX. (A) GENERAL. ON OR BEFORE THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR, EACH ELECTING PARTNERSHIP AND EACH ELECTING S CORPORATION MUST FILE A RETURN FOR THE TAXABLE YEAR REPORTING THE INFORMATION REQUIRED PURSUANT TO THIS ARTICLE. (B) CERTIFICATION OF ELIGIBILITY. EVERY RETURN FILED PURSUANT TO SUBDIVISION (A) OF THIS SECTION SHALL INCLUDE, IN A FORMAT AS PRESCRIBED BY THE COMMISSIONER, A CERTIFICATION BY AN INDIVIDUAL AUTHORIZED TO ACT ON BEHALF OF THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION THAT THE TAXPAYER: (1) MADE A TIMELY, VALID ELECTION TO BE SUBJECT TO TAX PURSUANT TO THIS ARTICLE; (2) WAS AT ALL TIMES DURING THE TAXABLE YEAR ELIGIBLE TO MAKE SUCH AN ELECTION, UNLESS SUCH RETURN INCLUDES A NOTIFICATION OF TERMINATION AS PROVIDED FOR IN SUBDIVISION (C) OF THIS SECTION; AND (3) THAT ALL STATEMENTS CONTAINED THEREIN ARE TRUE. (C) NOTIFICATION OF TERMINATION. IF AN ELECTION IS TERMINATED DURING THE TAXABLE YEAR PURSUANT TO SUBDIVISION (E) OF SECTION EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE, THE ELECTING PARTNERSHIP OR ELECTING S CORPO- RATION IS REQUIRED TO FILE A RETURN PURSUANT TO SUBDIVISION (A) OF THIS SECTION NOTIFYING THE COMMISSIONER OF SUCH TERMINATION. SUCH NOTIFICA- TION WILL BE CONSIDERED A CLAIM FOR A CREDIT OR REFUND OF AN OVERPAYMENT OF PASS-THROUGH ENTITY TAX OF ANY ESTIMATED PAYMENTS MADE PURSUANT TO THIS ARTICLE FOR THE TAXABLE YEAR CONTAINING THE DATE OF TERMINATION. (D) INFORMATION ON RETURN. EACH ELECTING PARTNERSHIP AND ELECTING S CORPORATION SHALL REPORT ON SUCH RETURN: (1) THE BALANCE OF ANY TAX SHOWN ON SUCH RETURN, NOT PREVIOUSLY PAID AS INSTALLMENTS OF ESTIMATED TAX, SHALL BE PAID WITH SUCH RETURN; (2) IDENTIFYING INFORMATION OF ALL PARTNERS, MEMBERS AND/OR SHAREHOLD- ERS ELIGIBLE TO RECEIVE A CREDIT PURSUANT TO SECTION EIGHT HUNDRED SIXTY THREE AND SUCH PARTNER'S, MEMBER'S AND/OR SHAREHOLDER'S DISTRIBUTIVE OR PRO RATA SHARE OF THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECTING PARTNERSHIP OR S CORPORATION; AND S. 2509--A 17 A. 3009--A (3) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER. (E) INFORMATION PROVIDED TO PARTNERS. EACH ELECTING PARTNERSHIP SUBJECT TO TAX UNDER THIS ARTICLE SHALL REPORT TO EACH PARTNER OR MEMBER ITS DISTRIBUTIVE SHARE OF: (1) THE PARTNERSHIP TAXABLE INCOME OF THE ELECTING PARTNERSHIP; (2) THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECTING PARTNERSHIP; AND (3) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER. (F) INFORMATION PROVIDED TO SHAREHOLDERS. EACH ELECTING S CORPORATION SUBJECT TO TAX UNDER THIS ARTICLE SHALL REPORT TO EACH SHAREHOLDER ITS PRO RATA SHARE OF: (1) THE S CORPORATION TAXABLE INCOME OF THE ELECTING S CORPORATION; (2) THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECTING S CORPORATION; AND (3) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER. § 866. ACCOUNTING PERIODS AND METHODS. (A) ACCOUNTING PERIODS. AN ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S TAXABLE YEAR PURSUANT TO THIS ARTICLE SHALL BE THE SAME AS THE ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES. (B) ACCOUNTING METHODS. AN ELECTING PARTNERSHIP'S OR ELECTING S CORPO- RATION'S METHOD OF ACCOUNTING PURSUANT TO THIS ARTICLE SHALL BE THE SAME AS THE ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S METHOD OF ACCOUNTING FOR FEDERAL INCOME TAX PURPOSES. (C) CHANGE OF ACCOUNTING PERIOD OR METHOD. (1) IF AN ELECTING PARTNER- SHIP'S OR ELECTING S CORPORATION'S TAXABLE YEAR OR METHOD OF ACCOUNTING IS CHANGED FOR FEDERAL INCOME TAX PURPOSES, THE TAXABLE YEAR OR METHOD OF ACCOUNTING FOR PURPOSES OF THIS ARTICLE SHALL BE SIMILARLY CHANGED. (2) IF AN ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S METHOD OF ACCOUNTING IS CHANGED, ANY ADDITIONAL TAX THAT RESULTS FROM ADJUSTMENTS DETERMINED TO BE NECESSARY SOLELY BY REASON OF SUCH CHANGE SHALL NOT BE GREATER THAN IF SUCH ADJUSTMENTS WERE RATABLY ALLOCATED AND INCLUDED FOR THE TAXABLE YEAR OF THE CHANGE AND THE PRECEDING TAXABLE YEARS, NOT IN EXCESS OF TWO, DURING WHICH THE ENTITY USED THE METHOD OF ACCOUNTING FROM WHICH THE CHANGE IS MADE. § 867. PROCEDURAL PROVISIONS. (A) GENERAL. ALL PROVISIONS OF ARTICLE TWENTY-TWO OF THIS CHAPTER WILL APPLY TO THE PROVISIONS OF THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF ARTICLE TWENTY-TWO OF THIS CHAPTER HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND HAD BEEN SPECIFICALLY ADJUSTED FOR AND EXPRESSLY REFERRED TO THE TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. NOTWITHSTANDING THE PRECEDING SENTENCE, NO CREDIT AGAINST TAX IN ARTICLE TWENTY-TWO OF THIS CHAPTER CAN BE USED TO OFFSET THE TAX DUE PURSUANT TO THIS ARTICLE. (B) CROSS ARTICLE FILINGS. NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS ARTICLE: (1) THE COMMISSIONER MAY REQUIRE THE FILING OF ONE RETURN WHICH, IN ADDITION TO THE RETURN PROVIDED FOR IN SECTION EIGHT HUNDRED SIXTY-FIVE OF THIS ARTICLE, MAY ALSO INCLUDE ANY OF THE RETURNS REQUIRED TO BE FILED BY A TAXPAYER PURSUANT TO THE PROVISIONS OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OR ARTICLE NINE-A OF THIS CHAPTER. (2) WHERE SUCH RETURN IS REQUIRED, THE COMMISSIONER MAY ALSO REQUIRE THE PAYMENT WITH IT OF A SINGLE AMOUNT WHICH SHALL EQUAL THE TOTAL OF THE AMOUNTS (TOTAL TAXES LESS ANY CREDITS OR REFUNDS) THAT WOULD HAVE BEEN REQUIRED TO BE PAID WITH THE RETURNS PURSUANT TO THE PROVISIONS OF THIS ARTICLE AND THE PROVISIONS OF ARTICLE TWENTY-TWO OF THIS CHAPTER OR S. 2509--A 18 A. 3009--A THE PROVISIONS OF ARTICLE NINE-A OF THIS CHAPTER, WHICHEVER IS APPLICA- BLE. (3) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE COMMISSIONER MAY REQUIRE THAT ALL FORMS OR RETURNS PURSUANT TO THIS ARTICLE MUST BE FILED ELECTRONICALLY AND ALL PAYMENTS OF TAX MUST BE PAID ELECTRON- ICALLY. (C) LIABILITY FOR TAX. AN ELECTING PARTNERSHIP OR ELECTING S CORPO- RATION SHALL BE LIABLE FOR THE TAX DUE PURSUANT TO THIS ARTICLE. IN ADDITION, EVERY INDIVIDUAL ELIGIBLE TO CLAIM A CREDIT PURSUANT TO SUBSECTION (KKK) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER BECAUSE HE OR SHE IS A PARTNER OR MEMBER IN AN ELECTING PARTNERSHIP OR A SHAREHOLD- ER IN AN ELECTING S CORPORATION SHALL BE JOINTLY AND SEVERALLY LIABLE FOR THE TAX IMPOSED PURSUANT TO THIS ARTICLE ON SUCH ELECTING PARTNER- SHIP OR ELECTING S CORPORATION. (D) DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, INTEREST, PENAL- TIES, AND FEES COLLECTED OR RECEIVED BY THE COMMISSIONER PURSUANT TO THIS ARTICLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER. (E) SECRECY PROVISION. ALL THE PROVISIONS OF PARAGRAPHS ONE AND TWO OF SUBSECTION (E) OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS CHAPTER WILL APPLY TO THE PROVISIONS OF THIS ARTICLE. NOTWITHSTANDING ANY PROVISIONS OF THIS CHAPTER TO THE CONTRARY, THE COMMISSIONER MAY DISCLOSE INFORMA- TION AND RETURNS REGARDING THE CALCULATION AND PAYMENT OF THE TAX IMPOSED BY THIS ARTICLE AND ANY CREDIT CALCULATED ON TAXES PAID PURSUANT TO THIS ARTICLE BY AN ELECTING PARTNERSHIP OR ELECTING S CORPORATION TO A PARTNER, MEMBER OR SHAREHOLDER OF SUCH ENTITY. § 2. Section 606 of the tax law is amended by adding a new subsection (kkk) to read as follows: (KKK) CREDIT FOR PASS-THROUGH ENTITY TAX. (1) A TAXPAYER PARTNER OR MEMBER OF AN ELECTING PARTNERSHIP AND A TAXPAYER SHAREHOLDER OF AN ELECTING S CORPORATION SUBJECT TO TAX UNDER ARTICLE TWENTY-FOUR-A OF THIS CHAPTER SHALL BE ENTITLED TO A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AS PROVIDED IN THIS SUBSECTION. FOR PURPOSES OF THIS SUBSECTION, THE TERMS "ELECTING PARTNERSHIP," "ELECTING S CORPORATION," AND "PASS-THROUGH ENTITY TAX" SHALL HAVE THE SAME MEANINGS AS USED IN ARTICLE TWENTY-FOUR-A OF THIS CHAPTER. (2) THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF: (I) THE TAXPAYER'S PROFIT PERCENTAGE OF THE ELECTING PARTNERSHIP OR PRO RATA SHARE OF THE ELECTING S CORPORATION; (II) NINETY-TWO PERCENT; AND (III) THE PASS-THROUGH ENTITY TAX PAID BY THE ELECTING PARTNERSHIP OR S CORPORATION FOR THE TAXABLE YEAR. (3) IF A TAXPAYER IS A PARTNER, MEMBER OR SHAREHOLDER IN MULTIPLE ELECTING PARTNERSHIPS AND/OR ELECTING S CORPORATIONS SUBJECT TO TAX PURSUANT TO ARTICLE TWENTY-FOUR-A OF THIS CHAPTER, THE TAXPAYER'S CREDIT SHALL BE THE SUM OF SUCH CREDITS CALCULATED PURSUANT TO PARAGRAPH TWO OF THIS SUBSECTION WITH REGARD TO EACH ENTITY IN WHICH THE TAXPAYER HAS A DIRECT OWNERSHIP INTEREST. (4) IF THE AMOUNT OF THE CREDIT ALLOWABLE PURSUANT TO THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAX DUE FOR SUCH YEAR PURSUANT TO THIS ARTICLE, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT, TO BE CREDITED OR REFUNDED, WITHOUT INTEREST. § 3. Section 620 of the tax law, as amended by chapter 2 of the laws of 1962, subsection (a) as amended and paragraph 3 of subsection (b) as added by chapter 274 of the laws of 1987, and subsection (d) as added by chapter 166 of 1991, is amended to read as follows: S. 2509--A 19 A. 3009--A § 620. Credit for income tax of another state. (a) General. A resident shall be allowed a credit against the tax otherwise due under this arti- cle for any income tax imposed ON SUCH INDIVIDUAL for the taxable year by another state of the United States, a political subdivision of such state, the District of Columbia or a province of Canada, upon income both derived therefrom and subject to tax under this article. The term "income tax imposed" in the previous sentence shall not include the portion of such tax (determined in the manner provided for in section six hundred twenty-A) which is imposed upon the ordinary income portion (or part thereof) of a lump sum distribution which is subject to the separate tax imposed by section [six hundred one-C] SIX HUNDRED THREE. (b) PASS-THROUGH ENTITY TAXES. (1) A RESIDENT SHALL BE ALLOWED A CRED- IT AGAINST THE TAX OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY PASS- THROUGH ENTITY TAX SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED PURSUANT TO ARTICLE TWENTY-FOUR-A OF THIS CHAPTER IMPOSED ON THE INCOME OF A PART- NERSHIP OR S CORPORATION OF WHICH THE RESIDENT IS A PARTNER, MEMBER OR SHAREHOLDER FOR THE TAXABLE YEAR BY ANOTHER STATE OF THE UNITED STATES, A POLITICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF COLUMBIA UPON INCOME BOTH DERIVED THEREFROM AND SUBJECT TO TAX UNDER THIS ARTICLE. (2) SUCH CREDIT SHALL BE EQUAL TO THE PRODUCT OF: (A) THE TAXPAYER'S PROFIT PERCENTAGE OF THE ELECTING PARTNERSHIP OR PRO RATA SHARE OF THE ELECTING S CORPORATION; (B) NINETY-TWO PERCENT; AND (C) THE PASS-THROUGH ENTITY TAX PAID BY THE ELECTING PARTNERSHIP OR S CORPORATION TO SUCH OTHER STATE, POLITICAL SUBDIVISION OF SUCH OTHER STATE OR THE DISTRICT OF COLUMBIA. (3) HOWEVER, SUCH CREDIT WILL BE ALLOWED ON TAX PAID ONLY IF: (A) THE STATE OF THE UNITED STATES, POLITICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF COLUMBIA IMPOSING SUCH TAX ALSO IMPOSES AN INCOME TAX SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED UNDER THIS ARTICLE; AND (B) IN THE CASE OF TAXES PAID BY AN S CORPORATION, SUCH S CORPORATION WAS TREATED AS A NEW YORK S CORPORATION. (C) Limitations. (1) The credit under this section shall not exceed the percentage of the tax otherwise due under this article determined by dividing the portion of the taxpayer's New York income subject to taxa- tion by such other jurisdiction by the total amount of the taxpayer's New York income. (2) The credit under this section shall not reduce the tax otherwise due under this article to an amount less than would have been due if the income subject to taxation by such other jurisdiction were excluded from the taxpayer's New York income. (3) In the case of a taxpayer who elects to claim the foreign tax credit for federal income tax purposes, the credit under this section for income tax imposed by a province of Canada shall be allowed for that portion of the provincial tax not claimed for federal purposes for the taxable year or a preceding taxable year, provided however, to the extent the provincial tax is claimed for federal purposes for a succeed- ing taxable year, the credit under this section must be added back in such succeeding taxable year. The provincial tax shall be deemed to be claimed last for federal income tax purposes and for purposes of this subsection. [(c)] (D) Definition. For purposes of this section New York income means: (1) the New York adjusted gross income of an individual, or S. 2509--A 20 A. 3009--A (2) the amount of the income of an estate or trust, determined as if the estate or trust were an individual computing his New York adjusted gross income under section six hundred twelve. [(d) S corporation shareholders. In the case of a shareholder of an S corporation, the term "income tax" in subsection (a) of this section shall not include any such tax imposed upon or payable by the corpo- ration, but shall include any such tax with respect to the income of the corporation imposed upon or payable by the shareholder, without regard to whether an election independent of the federal S election was required to effect such imposition upon the shareholder.] § 4. 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-D, twenty-one, twenty-two, twenty-four, TWENTY- FOUR-A, 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 thir- ty-three-A of this chapter shall be deposited daily in one account with such responsible banks, banking houses or trust companies as may be designated by the comptroller, to the credit of the comptroller. Such an account may be established in one or more of such depositories. Such deposits shall be kept separate and apart from all other money in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the total revenue collected or received under such articles of this chapter, the comptroller shall retain in the comptroller's hands such amount as the commissioner may determine to be necessary for refunds or reimbursements under such arti- cles 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 S. 2509--A 21 A. 3009--A amount which is certified to the comptroller by the commissioner as the amount to be credited against the amount of defaults in repayment of guaranteed student loans and state university loans or city university loans pursuant to subdivision five of section one hundred seventy-one-d and subdivision six of section one hundred seventy-one-e of this arti- cle, (iii) and except further that, notwithstanding any law, the comp- troller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpay- ment of tax imposed by article nine, nine-A, twenty-two, thirty, thir- ty-A, thirty-B or thirty-three of this chapter, and any interest there- on, which is certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall credit to the special offset fiduciary account, pursuant to section ninety-one-c of the state finance law, any such amount credita- ble as a liability as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty- two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commission- er as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by arti- cle twenty-two of this chapter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seventy-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corpo- ration, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy-one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 5. 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- S. 2509--A 22 A. 3009--A of), twenty-D, twenty-one, twenty-two, twenty-four, TWENTY-FOUR-A, twen- ty-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 S. 2509--A 23 A. 3009--A 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. § 6. Subdivisions 2, 3 and paragraph (a) of subdivision 5 of section 92-z of the state finance law, as amended by section 5 of part MM of chapter 59 of the laws of 2018, are amended to read as follows: 2. Such fund shall consist of (a) fifty percent of receipts from the imposition of personal income taxes pursuant to article twenty-two of the tax law, less such amounts as the commissioner of taxation and finance may determine to be necessary for refunds, [and] (b) fifty percent of receipts from the imposition of employer compensation expense taxes pursuant to article twenty-four of the tax law, less such amounts as the commissioner of taxation and finance may determine to be neces- sary for refunds, AND (C) FIFTY PERCENT OF RECEIPTS FROM THE IMPOSITION OF THE PASS-THROUGH ENTITY TAXES PURSUANT TO ARTICLE TWENTY-FOUR-A OF THE TAX LAW, LESS SUCH AMOUNTS AS THE COMMISSION OF TAXATION AND FINANCE MAY DETERMINE TO BE NECESSARY FOR REFUNDS. 3. (a) Beginning on the first day of each month, the comptroller shall deposit all of the receipts collected pursuant to section six hundred seventy-one of the tax law in the revenue bond tax fund until the amount of monthly receipts anticipated to be deposited pursuant to the certif- icate required in paragraph (b) of subdivision five of this section are met. On or before the twelfth day of each month, the commissioner of taxation and finance shall certify to the state comptroller the amounts specified in paragraph (a) of subdivision two of this section relating to the preceding month and, in addition, no later than March thirty- first of each fiscal year the commissioner of taxation and finance shall certify such amounts relating to the last month of such fiscal year. The amounts so certified shall be deposited by the state comptroller in the revenue bond tax fund. (b) Beginning on the first day of each month, the comptroller shall deposit all of the receipts collected pursuant to section eight hundred fifty-four of the tax law in the revenue bond tax fund until the amount of monthly receipts anticipated to be deposited pursuant to the certif- icate required in paragraph (b) of subdivision five of this section are met. On or before the twelfth day of each month, the commissioner of S. 2509--A 24 A. 3009--A taxation and finance shall certify to the state comptroller the amounts specified in paragraph (b) of subdivision two of this section relating to the preceding month and, in addition, no later than March thirty- first of each fiscal year the commissioner of taxation and finance shall certify such amounts relating to the last month of such fiscal year. The amounts so certified shall be deposited by the state comptroller in the revenue bond tax fund. (C) BEGINNING ON THE FIRST DAY OF EACH MONTH, THE COMPTROLLER SHALL DEPOSIT ALL OF THE RECEIPTS COLLECTED PURSUANT TO SECTIONS EIGHT HUNDRED SIXTY-FOUR AND EIGHT HUNDRED SIXTY-FIVE OF THE TAX LAW IN THE REVENUE BOND TAX FUND UNTIL THE AMOUNT OF MONTHLY RECEIPTS ANTICIPATED TO BE DEPOSITED PURSUANT TO THE CERTIFICATE REQUIRED IN PARAGRAPH (B) OF SUBDIVISION FIVE OF THIS SECTION ARE MET. ON OR BEFORE THE TWELFTH DAY OF EACH MONTH, THE COMMISSIONER OF TAXATION AND FINANCE SHALL CERTIFY TO THE STATE COMPTROLLER THE AMOUNTS SPECIFIED IN PARAGRAPH (C) OF SUBDIVI- SION TWO OF THIS SECTION RELATING TO THE PRECEDING MONTH AND, IN ADDI- TION, NO LATER THAN MARCH THIRTY-FIRST OF EACH FISCAL YEAR THE COMMIS- SIONER OF TAXATION AND FINANCE SHALL CERTIFY SUCH AMOUNTS RELATING TO THE LAST MONTH OF SUCH FISCAL YEAR. THE AMOUNTS SO CERTIFIED SHALL BE DEPOSITED BY THE STATE COMPTROLLER IN THE REVENUE BOND TAX FUND. (a) The state comptroller shall from time to time, but in no event later than the fifteenth day of each month (other than the last month of the fiscal year) and no later than the thirty-first day of the last month of each fiscal year, pay over and distribute to the credit of the general fund of the state treasury all moneys in the revenue bond tax fund, if any, in excess of the aggregate amount required to be set aside for the payment of cash requirements pursuant to paragraph (b) of this subdivision, provided that an appropriation has been made to pay all amounts specified in any certificate or certificates delivered by the director of the budget pursuant to paragraph (b) of this subdivision as being required by each authorized issuer as such term is defined in section sixty-eight-a of this chapter for the payment of cash require- ments of such issuers for such fiscal year. Subject to the rights of holders of debt of the state, in no event shall the state comptroller pay over and distribute any moneys on deposit in the revenue bond tax fund to any person other than an authorized issuer pursuant to such certificate or certificates (i) unless and until the aggregate of all cash requirements certified to the state comptroller as required by such authorized issuers to be set aside pursuant to paragraph (b) of this subdivision for such fiscal year shall have been appropriated to such authorized issuers in accordance with the schedule specified in the certificate or certificates filed by the director of the budget or (ii) if, after having been so certified and appropriated, any payment required to be made pursuant to paragraph (b) of this subdivision has not been made to the authorized issuers which was required to have been made pursuant to such certificate or certificates; provided, however, that no person, including such authorized issuers or the holders of revenue bonds, shall have any lien on moneys on deposit in the revenue bond tax fund. Any agreement entered into pursuant to section sixty- eight-c of this chapter related to any payment authorized by this section shall be executory only to the extent of such revenues available to the state in such fund. Notwithstanding subdivisions two and three of this section, in the event the aggregate of all cash requirements certi- fied to the state comptroller as required by such authorized issuers to be set aside pursuant to paragraph (b) of this subdivision for the fiscal year beginning on April first shall not have been appropriated to S. 2509--A 25 A. 3009--A such authorized issuers in accordance with the schedule specified in the certificate or certificates filed by the director of the budget or, (ii) if, having been so certified and appropriated, any payment required to be made pursuant to paragraph (b) of this subdivision has not been made pursuant to such certificate or certificates, all receipts collected pursuant to section six hundred seventy-one of the tax law, [and] section eight hundred fifty-four of the tax law, SECTION EIGHT HUNDRED SIXTY-FOUR OF THE TAX LAW, AND SECTION EIGHT HUNDRED SIXTY-FIVE OF THE TAX LAW shall be deposited in the revenue bond tax fund until the great- er of forty percent of the aggregate of the receipts from the imposition of (A) the personal income tax imposed by article twenty-two of the tax law, [and] (B) the employer compensation expense tax imposed by article twenty-four of the tax law, AND (C) THE PASS-THROUGH ENTITY TAX IMPOSED BY ARTICLE TWENTY-FOUR-A OF THE TAX LAW for the fiscal year beginning on April first and as specified in the certificate or certificates filed by the director of the budget pursuant to this paragraph or a total of twelve billion dollars has been deposited in the revenue bond tax fund. Notwithstanding any other provision of law, if the state has appropri- ated and paid to the authorized issuers the amounts necessary for the authorized issuers to meet their requirements for the current fiscal year pursuant to the certificate or certificates submitted by the direc- tor of the budget pursuant to paragraph (b) of this section, the state comptroller shall, on the last day of each fiscal year, pay to the general fund of the state all sums remaining in the revenue bond tax fund on such date except such amounts as the director of the budget may certify are needed to meet the cash requirements of authorized issuers during the subsequent fiscal year. § 7. Subdivision 5 of section 68-c of the state finance law, as amended by section 6 of part MM of chapter 59 of the laws of 2018, is amended to read as follows: 5. Nothing contained in this article shall be deemed to restrict the right of the state to amend, repeal, modify or otherwise alter statutes imposing or relating to the taxes imposed pursuant to article twenty-two, [and] article twenty-four, AND ARTICLE TWENTY-FOUR-A of the tax law. The authorized issuers shall not include within any resolution, contract or agreement with holders of the revenue bonds issued under this article any provision which provides that a default occurs as a result of the state exercising its right to amend, repeal, modify or otherwise alter the taxes imposed pursuant to article twenty-two, [and] article twenty-four, AND ARTICLE TWENTY-FOUR-A of the tax law. § 8. This act shall take effect immediately and shall apply to all taxable years beginning on or after January 1, 2022; provided, however, that the amendments to subdivision 1 of section 171-a of the tax law made by section four of this act shall not affect the expiration of such subdivision and shall expire therewith, when upon such date the provisions of section five of this act shall take effect. PART D Section 1. Section 352 of the economic development law is amended by adding two new subdivisions 5-a and 13-a to read as follows: 5-A. "CHILD CARE SERVICES" MEANS THOSE SERVICES UNDERTAKEN OR SPON- SORED BY A PARTICIPANT IN THIS PROGRAM MEETING THE REQUIREMENTS OF "CHILD DAY CARE" AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION THREE HUNDRED NINETY OF THE SOCIAL SERVICES LAW OR ANY CHILD CARE SERVICES IN THE CITY OF NEW YORK WHEREBY A PERMIT TO OPERATE SUCH S. 2509--A 26 A. 3009--A CHILD CARE SERVICES IS REQUIRED PURSUANT TO THE HEALTH CODE OF THE CITY OF NEW YORK. 13-A. "NET NEW CHILD CARE SERVICES EXPENDITURES" MEANS THE CALCULATION OF NEW, ANNUAL PARTICIPANT EXPENDITURES ON CHILD CARE SERVICES WHETHER INTERNAL OR PROVIDED BY A THIRD PARTY (INCLUDING COVERAGE FOR FULL OR PARTIAL DISCOUNT OF EMPLOYEE RATES), MINUS ANY REVENUES RECEIVED BY THE PARTICIPANT THROUGH A THIRD-PARTY OPERATOR (I.E. RENT PAID TO THE PARTICIPANT BY THE CHILD CARE PROVIDER) OR EMPLOYEES AND MAY BE FURTHER DEFINED BY THE COMMISSIONER IN REGULATIONS. FOR THE PURPOSES OF THIS DEFINITION, EXPENDITURES FOR CHILD CARE SERVICES THAT A PARTICIPANT HAS INCURRED PRIOR TO ADMISSION TO THIS PROGRAM SHALL NOT BE ELIGIBLE FOR THE CREDIT. § 2. Paragraphs (k) and (l) of subdivision 1 of section 353 of the economic development law, as amended by section 2 of part L of chapter 59 of the laws of 2020, are amended and a new paragraph (m) is added to read as follows: (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[.]; OR (M) AS A PARTICIPANT OPERATING IN ONE OF THE INDUSTRIES LISTED IN PARAGRAPHS (A) THROUGH (K) OF THIS SUBDIVISION AND OPERATING OR SPONSOR- ING CHILD CARE SERVICES TO ITS EMPLOYEES AS DEFINED IN SECTION THREE HUNDRED FIFTY-TWO OF THIS ARTICLE. § 3. Subdivisions 2 and 6 of section 355 of the economic development law, subdivision 2 as amended by section 4 of part L of chapter 59 of the laws of 2020 and subdivision 6 as amended by section 4 of part K of chapter 59 of the laws of 2015, are amended and a new subdivision 2-a is added to read as follows: 2. Excelsior investment tax credit component. A participant in the excelsior jobs program shall be eligible to claim a credit on qualified investments. 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. IN A PROJECT FOR CHILD CARE SERVICES, THE CREDIT SHALL BE EQUAL TO FIVE PERCENT OF THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED INVESTMENT IN CHILD CARE SERVICES. A participant may not claim both the excelsior investment tax credit component and the investment tax credit set forth in subdivision one of section two hundred ten-B, subsection (a) of section six hundred six, the former subsection (i) of section fourteen hundred fifty-six, or subdivision (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 property 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 enterprise has received a certificate of tax credit, provided that qualified investments made on or after the issuance of the certificate of eligibility but before the issuance of the certificate of S. 2509--A 27 A. 3009--A tax credit to the business enterprise, may be claimed in the first taxa- ble year for which the business enterprise is allowed to claim the cred- it. Expenses incurred prior to the date the certificate of eligibility is issued are not eligible to be included in the calculation of the credit. 2-A. EXCELSIOR CHILD CARE SERVICES TAX CREDIT COMPONENT. A PARTICIPANT ENGAGING IN A NEW EXCELSIOR JOBS PROGRAM PROJECT SHALL BE ELIGIBLE TO CLAIM A CREDIT ON ITS NET NEW CHILD CARE SERVICES EXPENDITURES FOR ITS OPERATION, SPONSORSHIP OR DIRECT FINANCIAL SUPPORT OF A CHILD CARE SERVICES PROGRAM. THE CREDIT SHALL BE EQUAL TO SIX PERCENT OF THE NET NEW CHILD CARE SERVICES EXPENDITURES AS DEFINED IN THIS CHAPTER. 6. Claim of tax credit. The business enterprise shall be allowed to claim the credit as prescribed in section thirty-one of the tax law. No costs used by an entertainment company as the basis for the allowance of a tax credit described in this section shall be used by such enter- tainment company to claim any other credit allowed pursuant to the tax law. NO COSTS OR EXPENDITURES FOR CHILD CARE SERVICES USED BY A PARTIC- IPANT TO CLAIM THE CREDIT AS PRESCRIBED IN SECTION FORTY-FOUR OF THE TAX LAW SHALL BE USED FOR THE ALLOWANCE OF A TAX CREDIT DESCRIBED IN THIS SECTION. § 4. Subdivision (a) of section 31 of the tax law is amended by adding a new paragraph 2-a to read as follows: (2-A) THE EXCELSIOR CHILD CARE SERVICES TAX CREDIT COMPONENT; § 5. Subdivision (a) of section 44 of the tax law, as added by section 1 of part L of chapter 59 of the laws of 2019, is amended to read as follows: (a) General. A taxpayer subject to tax under article nine-A, twenty- two, or thirty-three of this chapter shall be allowed a credit against such tax in an amount equal to TWO HUNDRED PERCENT OF the portion of the credit that is allowed to the taxpayer under section 45F of the internal revenue code that is attributable to (i) qualified child care expendi- tures paid or incurred with respect to a qualified child care facility with a situs in the state, and to (ii) qualified child care resource and referral expenditures paid or incurred with respect to the taxpayer's employees working in the state. The credit allowable under this subdivi- sion for any taxable year shall not exceed [one hundred fifty] FIVE HUNDRED thousand dollars. If the entity operating the qualified child care facility is a partnership or a New York S corporation, then such cap shall be applied at the entity level, so the aggregate credit allowed to all the partners or shareholders of such entity in a taxable year does not exceed [one hundred fifty] FIVE HUNDRED thousand dollars. § 6. This act shall take effect immediately; provided, however, section five of this act shall apply to taxable years beginning on or after January 1, 2022. PART E Section 1. Paragraph (b) of subdivision 2 of section 184 of the tax law, as added by chapter 485 of the laws of 1988, is amended to read as follows: (b) (1) A corporation classed as a "taxicab" or "omnibus", (i) which is organized, incorporated or formed under the laws of any other state, country or sovereignty, and (ii) which neither owns nor leases property in this state in a corpo- rate or organized capacity, nor S. 2509--A 28 A. 3009--A (iii) maintains an office in this state in a corporate or organized capacity, but (iv) which is doing business or employing capital in this state by conducting at least one but fewer than twelve trips into this state during the calendar year, shall [annually pay a tax equal to fifteen dollars for each trip conducted into this state] NOT BE TAXED UNDER THE PROVISIONS OF THIS ARTICLE. If the only property a corporation owns or leases in this state is a vehicle or vehicles used to conduct trips, it shall not be considered, for purposes of clause (ii) of this subpara- graph, to be owning or leasing property in this state. (2) [The commissioner of taxation and finance may prescribe such forms as he may deem necessary to report such tax in a simplified manner. (3)] For purposes of this subdivision, a corporation classed as a "taxicab" or "omnibus" shall be considered to be conducting a trip into New York state when one of its vehicles enters New York state and trans- ports passengers to, from, or to and from a location in New York state. A corporation shall not be considered to be conducting a trip into New York state if its vehicle only makes incidental stops at locations in the state while in transit from a location outside New York state to another location outside New York state. The number of trips a corpo- ration conducts into New York state shall be calculated by determining the number of trips each vehicle owned, leased or operated by the corpo- ration conducts into New York state and adding those numbers together. [(4) Provided, however, that the provisions of this paragraph shall not apply to any corporation which does not file its franchise tax report in a timely manner (determined with regard to any extension of time for filing).] § 2. Subdivision 1-A of section 208 of the tax law, as amended by section 4 of part A of chapter 59 of the laws of 2014, is amended to read as follows: 1-A. The term "New York S corporation" means, with respect to any taxable year, a corporation subject to tax under this article [for which an election is in effect pursuant to] AND DESCRIBED IN PARAGRAPH (I) OR (II) OF subsection (a) of section six hundred sixty of this chapter [for such year], AND any such year shall be denominated a "New York S year"[, and such election shall be denominated a "New York S election"]. The term "New York C corporation" means, with respect to any taxable year, a corporation subject to tax under this article which is not a New York S corporation, and any such year shall be denominated a "New York C year". The term "termination year" means any taxable year of a corporation during which the CORPORATION'S STATUS AS A New York S [election] CORPO- RATION terminates on a day other than the first day of such year. The portion of the taxable year ending before the first day for which such termination is effective shall be denominated the "S short year", and the portion of such year beginning on such first day shall be denomi- nated the "C short year". The term "New York S termination year" means any termination year which is [not] also an S termination year for federal purposes. § 3. Subdivision 1-B and subparagraph (ii) of the opening paragraph and paragraph (k) of subdivision 9 of section 208 of the tax law are REPEALED. § 4. Subparagraph (A) and the opening paragraph of subparagraph (B) of paragraph 5 of subdivision (a) of section 292 of the tax law, as added by section 48 of part A of chapter 389 of the laws of 1997, are amended to read as follows: (A) In the case of a shareholder of an S corporation, S. 2509--A 29 A. 3009--A (i) [where the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty of this chapter [is in effect with respect to such corporation], there shall be added to federal unrelated business taxable income an amount equal to the shareholder's pro rata share of the corporation's reductions for taxes described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code, and (ii) [where such election has not been made with respect to such corporation, there shall be subtracted from federal unrelated business taxable income any items of income of the corporation included therein, and there shall be added to federal unrelated business taxable income any items of loss or deduction included therein, and (iii)] in the case of a New York S termination year, the amount of any such items of S corporation income, loss, deduction and reductions for taxes shall be adjusted in the manner provided in paragraph two or three of subsection (s) of section six hundred twelve of this chapter. In the case of a shareholder of a corporation which was, for any of its taxable years beginning after nineteen hundred ninety-seven AND BEFORE TWO THOUSAND TWENTY-TWO, a federal S corporation but a New York C corporation: § 5. Paragraph 18 of subsection (b) of section 612 of the tax law, as amended by chapter 606 of the laws of 1984, subparagraph (A) as amended by chapter 28 of the laws of 1987 and subparagraph (B) as amended by chapter 190 of the laws of 1990, is amended to read as follows: (18) In the case of a shareholder of an S corporation AS DESCRIBED IN SUBSECTION (A) OF SECTION SIX HUNDRED SIXTY (A) [where the election provided for in subsection (a) of section six hundred sixty is in effect with respect to such corporation,] an amount equal to his OR HER pro rata share of the corporation's reductions for taxes described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code, and (B) in the case of a New York S termination year, subparagraph (A) of this paragraph shall apply to the amount of reductions for taxes deter- mined under subsection (s) of this section. § 6. Paragraph 19 of subsection (b) of section 612 of the tax law is REPEALED. § 7. Paragraphs 20 and 21 of subsection (b) of section 612 of the tax law, paragraph 20 as amended by chapter 606 of the laws of 1984 and paragraph 21 as amended by section 70 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (20) S corporation distributions to the extent not included in federal gross income for the taxable year because of the application of section thirteen hundred sixty-eight, subsection (e) of section thirteen hundred seventy-one or subsection (c) of section thirteen hundred seventy-nine of the internal revenue code which represent income not previously subject to tax under this article because the election provided for in subsection (a) of section six hundred sixty IN EFFECT FOR TAXABLE YEARS BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-TWO had not been made. Any such distribution treated in the manner described in paragraph two of subsection (b) of section thirteen hundred sixty-eight of the internal revenue code for federal income tax purposes shall be treated as ordinary income for purposes of this article. (21) In relation to the disposition of stock or indebtedness of a corporation which elected under subchapter s of chapter one of the internal revenue code for any taxable year of such corporation begin- ning, in the case of a corporation taxable under article nine-A of this S. 2509--A 30 A. 3009--A chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-TWO, the amount required to be added to federal adjusted gross income pursuant to subsection (n) of this section. § 8. Paragraph 21 of subsection (c) of section 612 of the tax law, as amended by section 70 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (21) In relation to the disposition of stock or indebtedness of a corporation which elected under subchapter s of chapter one of the internal revenue code for any taxable year of such corporation begin- ning, in the case of a corporation taxable under article nine-A of this chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-TWO, the amounts required to be subtracted from federal adjusted gross income pursuant to subsection (n) of this section. § 9. Paragraph 22 of subsection (c) of section 612 of the tax law is REPEALED. § 10. Subsection (e) of section 612 of the tax law, as amended by chapter 166 of the laws of 1991, paragraph 3 as added by chapter 760 of the laws of 1992, is amended to read as follows: (e) Modifications of partners and shareholders of S corporations. (1) Partners and shareholders of S corporations [which are not New York C corporations]. The amounts of modifications required to be made under this section by a partner or by a shareholder of an S corporation [(other than an S corporation which is a New York C corporation)], which relate to partnership or S corporation items of income, gain, loss or deduction shall be determined under section six hundred seventeen and, in the case of a partner of a partnership doing an insurance business as a member of the New York insurance exchange described in section six thousand two hundred one of the insurance law, under section six hundred seventeen-a of this article. (2) [Shareholders of S corporations which are New York C corporations. In the case of a shareholder of an S corporation which is a New York C corporation, the modifications under this section which relate to the corporation's items of income, loss and deduction shall not apply, except for the modifications provided under paragraph nineteen of subsection (b) and paragraph twenty-two of subsection (c) of this section. (3)] New York S termination year. In the case of a New York S termi- nation year, the amounts of the modifications required under this section which relate to the S corporation's items of income, loss, deduction and reductions for taxes (as described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code) shall be adjusted in the same manner that the S corporation's items are adjusted under subsection (s) of section six hundred twelve. § 11. Subsection (n) of section 612 of the tax law, as amended by section 61 of part A of chapter 389 of the laws of 1997, is amended to read as follows: (n) Where gain or loss is recognized for federal income tax purposes upon the disposition of stock or indebtedness of a corporation electing under subchapter s of chapter one of the internal revenue code (1) There shall be added to federal adjusted gross income the amount of increase in basis with respect to such stock or indebtedness pursuant to subsection (a) of section thirteen hundred seventy-six of the inter- nal revenue code as such section was in effect for taxable years begin- S. 2509--A 31 A. 3009--A ning before January first, nineteen hundred eighty-three and subpara- graphs (A) and (B) of paragraph one of subsection (a) of section thirteen hundred sixty-seven of such code, for each taxable year of the corporation beginning, in the case of a corporation taxable under arti- cle nine-A of this chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-TWO, and in the case of a corporation taxable under FORMER article thirty-two of this chapter, after December thirty-first, nineteen hundred ninety-six AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, for which the election provided for in subsection (a) of section six hundred sixty of this article was not in effect, and (2) There shall be subtracted from federal adjusted gross income (A) the amount of reduction in basis with respect to such stock or indebtedness pursuant to subsection (b) of section thirteen hundred seventy-six of the internal revenue code as such section was in effect for taxable years beginning before January first, nineteen hundred eighty-three and subparagraphs (B) and (C) of paragraph two of subsection (a) of section thirteen hundred sixty-seven of such code, for each taxable year of the corporation beginning, in the case of a corpo- ration taxable under article nine-A of this chapter, after December thirty-first, nineteen hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-TWO, and in the case of a corporation taxable under FORMER article thirty-two of this chapter, after December thirty-first, nineteen hundred ninety-six AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, for which the election provided for in subsection (a) of section six hundred sixty of this article was not in effect and (B) the amount of any modifications to federal gross income with respect to such stock pursuant to paragraph twenty of subsection (b) of this section. § 12. Paragraph 6 of subsection (c) of section 615 of the tax law is REPEALED. § 13. Subsection (e) of section 615 of the tax law, as amended by chapter 760 of the laws of 1992, is amended to read as follows: (e) Modifications of partners and shareholders of S corporations. (1) Partners and shareholders of S corporations [which are not New York C corporations]. The amounts of modifications under subsection (c) or under paragraph (2) or (3) of subsection (d) required to be made by a partner or by a shareholder of an S corporation [(other than an S corpo- ration which is a New York C corporation)], with respect to items of deduction of a partnership or S corporation shall be determined under section six hundred seventeen. (2) [Shareholders of S corporations which are New York C corporations. In the case of a shareholder of an S corporation which is a New York C corporation, the modifications under this section which relate to the corporation's items of deduction shall not apply, except for the modifi- cation provided under paragraph six of subsection (c). (3)] New York S termination year. In the case of a New York S termi- nation year, the amounts of the modifications required under this section which relate to the S corporation's items of deduction shall be adjusted in the same manner that the S corporation's items are adjusted under subsection (s) of section six hundred twelve. § 14. Subsection (a) of section 617 of the tax law, as amended by chapter 190 of the laws of 1990, is amended to read as follows: (a) Partner's and shareholder's modifications. In determining New York adjusted gross income and New York taxable income of a resident partner or a resident shareholder of an S corporation [(other than an S corpo- S. 2509--A 32 A. 3009--A ration which is a New York C corporation)], any modification described in subsections (b), (c) or (d) of section six hundred twelve, subsection (c) of section six hundred fifteen or paragraphs (2) or (3) of subsection (d) of such section, which relates to an item of partnership or S corporation income, gain, loss or deduction shall be made in accordance with the partner's distributive share or the shareholder's pro rata share, for federal income tax purposes, of the item to which the modification relates. Where a partner's distributive share or a shareholder's pro rata share of any such item is not required to be taken into account separately for federal income tax purposes, the part- ner's or shareholder's share of such item shall be determined in accord- ance with his OR HER share, for federal income tax purposes, of partner- ship or S corporation taxable income or loss generally. In the case of a New York S termination year, his OR HER pro rata share of any such item shall be determined under subsection (s) of section six hundred twelve. § 15. Subparagraph (E-1) of paragraph 1 of subsection (b) of section 631 of the tax law, as added by section 3 of part C of chapter 57 of the laws of 2010, is amended to read as follows: (E-1) in the case of an S corporation [for which an election is in effect pursuant] SUBJECT to subsection (a) of section six hundred sixty of this article that terminates its taxable status in New York, any income or gain recognized on the receipt of payments from an installment sale contract entered into when the S corporation was subject to tax in New York, allocated in a manner consistent with the applicable methods and rules for allocation under article nine-A or FORMER ARTICLE thirty- two of this chapter, in the year that the S corporation sold its assets. § 16. The section heading and paragraph 2 of subsection (a) of section 632 of the tax law, the section heading as amended by chapter 606 of the laws of 1984, and paragraph 2 of subsection (a) as amended by section 71 of part A of chapter 59 of the laws of 2014, are amended to read as follows: Nonresident partners and [electing] shareholders of S corporations. (2) In determining New York source income of a nonresident shareholder of an S corporation [where the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty of this article [is in effect], there shall be included only the portion derived from or connected with New York sources of such shareholder's pro rata share of items of S corporation income, loss and deduction entering into his OR HER federal adjusted gross income, increased by reductions for taxes described in paragraphs two and three of subsection (f) of section thir- teen hundred sixty-six of the internal revenue code, as such portion shall be determined under regulations of the commissioner consistent with the applicable methods and rules for allocation under article nine-A of this chapter[, regardless of whether or not such item or reduction is included in entire net income under article nine-A for the tax year]. If a nonresident is a shareholder in an S corporation [where the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty of this article [is in effect], and the S corporation has distributed an installment obligation under section 453(h)(1)(A) of the Internal Revenue Code, then any gain recognized on the receipt of payments from the installment obligation for federal income tax purposes will be treated as New York source income allocated in a manner consist- ent with the applicable methods and rules for allocation under article nine-A of this chapter in the year that the assets were sold. In addi- tion, if the shareholders of the S corporation have made an election under section 338(h)(10) of the Internal Revenue Code, then any gain S. 2509--A 33 A. 3009--A recognized on the deemed asset sale for federal income tax purposes will be treated as New York source income allocated in a manner consistent with the applicable methods and rules for allocation under article nine-A of this chapter in the year that the shareholder made the section 338(h)(10) election. For purposes of a section 338(h)(10) election, when a nonresident shareholder exchanges his or her S corporation stock as part of the deemed liquidation, any gain or loss recognized shall be treated as the disposition of an intangible asset and will not increase or offset any gain recognized on the deemed assets sale as a result of the section 338(h)(10) election. § 17. Subsection (a) of section 632-a of the tax law, as added by section 1 of part K of chapter 60 of the laws of 2007, is amended to read as follows: (a) General. If (1) substantially all of the services of a personal service corporation or S corporation are performed for or on behalf of another corporation, partnership, or other entity and (2) the effect of forming or availing of such personal service corporation or S corpo- ration is the avoidance or evasion of New York income tax by reducing the income of, or in the case of a nonresident, reducing the New York source income of, or securing the benefit of any expense, deduction, credit, exclusion, or other allowance for, any employee-owner which would not otherwise be available, then the commissioner may allocate all income, deductions, credits, exclusions, and other allowances between such personal service corporation or S corporation (even if such personal service corporation or S corporation [is taxed under article nine-A of this chapter or] is not subject to tax in this state) and its employee-owners, provided such allocation is necessary to prevent avoid- ance or evasion of New York state income tax or to clearly reflect the source and the amount of the income of the personal service corporation or S corporation or any of its employee-owners. § 18. Paragraph 2 and subparagraph (A) of paragraph 4 of subsection (c) of section 658 of the tax law, paragraph 2 as amended by chapter 190 of the laws of 1990, and subparagraph (A) of paragraph 4 as amended by section 72 of part A of chapter 59 of the laws of 2014, are amended to read as follows: (2) S corporations. Every S corporation [for which the election provided for in] SUBJECT TO subsection (a) of section six hundred sixty [is in effect] shall make a return for the taxable year setting forth all items of income, loss and deduction and such other pertinent infor- mation as the commissioner of taxation and finance may by regulations and instructions prescribe. Such return shall be filed on or before the fifteenth day of the third month following the close of each taxable year. (A) General. Every entity which is a partnership, other than a public- ly traded partnership as defined in section 7704 of the federal Internal Revenue Code, subchapter K limited liability company or an S corporation [for which the election provided for in subsection (a) of section six hundred sixty of this part is in effect], which has partners, members or shareholders who are nonresident individuals, as defined under subsection (b) of section six hundred five of this article, or C corpo- rations, and which has any income derived from New York sources, deter- mined in accordance with the applicable rules of section six hundred thirty-one of this article as in the case of a nonresident individual, shall pay estimated tax on such income on behalf of such partners, members or shareholders in the manner and at the times prescribed by subsection (c) of section six hundred eighty-five of this article. For S. 2509--A 34 A. 3009--A purposes of this paragraph, the term "estimated tax" shall mean a part- ner's, member's or shareholder's distributive share or pro rata share of the entity income derived from New York sources, multiplied by the high- est rate of tax prescribed by section six hundred one of this article for the taxable year of any partner, member or shareholder who is an individual taxpayer, or paragraph (a) of subdivision one of section two hundred ten of this chapter for the taxable year of any partner, member or shareholder which is a C corporation, whether or not such C corpo- ration is subject to tax under article nine, nine-A or thirty-three of this chapter, and reduced by the distributive share or pro rata share of any credits determined under section one hundred eighty-seven, one hundred eighty-seven-a, six hundred six or fifteen hundred eleven of this chapter, whichever is applicable, derived from the entity. § 19. Section 660 of the tax law, as amended by chapter 606 of the laws of 1984, subsections (a) and (h) as amended by section 73 of part A of chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as amended by section 51, paragraphs 4 and 5 of subsection (b) as added and paragraph 6 of subsection (b) as renumbered by section 52 and subsections (e) and (f) as added and subsection (g) as relettered by section 53 of part A of chapter 389 of the laws of 1997, subsection (d) as added by chapter 760 of the laws of 1992, subsection (i) as added by section 1 of part L of chapter 60 of the laws of 2007 and paragraph 1 of subsection (i) as amended by section 39 of part T of chapter 59 of the laws of 2015, is amended to read as follows: § 660. [Election by shareholders of S corporations] TAX TREATMENT OF FEDERAL S CORPORATIONS. (a) [Election.] If a corporation is an eligible S corporation, the shareholders of the corporation [may elect in the manner set forth in subsection (b) of this section to] SHALL take into account, to the extent provided for in this article (or in article thir- teen of this chapter, in the case of a shareholder which is a taxpayer under such article), the S corporation items of income, loss, deduction and reductions for taxes described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code which are taken into account for federal income tax purposes for the taxable year. [No election under this subsection shall be effective unless all shareholders of the corporation have so elected.] An eligible S corporation is (i) [an S] A corporation THAT HAS ELECTED TO BE AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE INTERNAL REVENUE CODE which is subject to tax under article nine-A of this chapter, or (ii) [an S] A corporation THAT HAS ELECTED TO BE AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE INTERNAL REVENUE CODE which is the parent of a qualified subchapter S subsidiary AS DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE subject to tax under article nine-A[, where the sharehold- ers of such parent corporation are entitled to make the election under this subsection by reason of subparagraph three of paragraph (k) of subdivision nine of section two hundred eight] of this chapter. (b) [Requirements of election. An election under subsection (a) of this section shall be made on such form and in such manner as the tax commission may prescribe by regulation or instruction. (1) When made. An election under subsection (a) of this section may be made at any time during the preceding taxable year of the corporation or at any time during the taxable year of the corporation and on or before the fifteenth day of the third month of such taxable year. S. 2509--A 35 A. 3009--A (2) Certain elections made during first two and one-half months. If an election made under subsection (a) of this section is made for any taxa- ble year of the corporation during such year and on or before the fifteenth day of the third month of such year, such election shall be treated as made for the following taxable year if (A) on one or more days in such taxable year before the day on which the election was made the corporation did not meet the requirements of subsection (b) of section thirteen hundred sixty-one of the internal revenue code or (B) one or more of the shareholders who held stock in the corporation during such taxable year and before the election was made did not consent to the election. (3) Elections made after first two and one-half months. If an election under subsection (a) of this section is made for any taxable year of the corporation and such election is made after the fifteenth day of the third month of such taxable year and on or before the fifteenth day of the third month of the following taxable year, such election shall be treated as made for the following taxable year. (4) Taxable years of two and one-half months or less. For purposes of this subsection, an election for a taxable year made not later than two months and fifteen days after the first day of the taxable year shall be treated as timely made during such year. (5) Authority to treat late elections, etc., as timely. If (A) an election under subsection (a) of this section is made for any taxable year (determined without regard to paragraph three of this subsection) after the date prescribed by this subsection for making such election for such taxable year, or if no such election is made for any taxable year, and (B) the commissioner determines that there was reasonable cause for failure to timely make such election, then (C) the commissioner may treat such an election as timely made for such taxable year (and paragraph three of this subsection shall not apply). (6) Years for which effective. An election under subsection (a) of this section shall be effective for the taxable year of the corporation for which it is made and for all succeeding taxable years of the corpo- ration until such election is terminated under subsection (c) of this section. (c)] Termination. An [election under] ELIGIBLE S CORPORATION SHALL CEASE TO BE SUBJECT TO subsection (a) of this section [shall cease to be effective (1)] on the day an election to be an S corporation ceases to be effec- tive for federal income tax purposes pursuant to subsection (d) of section thirteen hundred sixty-two of the internal revenue code[, or (2) if shareholders holding more than one-half of the shares of stock of the corporation on the day on which the revocation is made revoke such election in the manner the tax commission may prescribe by regu- lation, (A) on the first day of the taxable year of the corporation, if the revocation is made during such taxable year and on or before the fifteenth day of the third month thereof, or (B) on the first day of the following taxable year of the corporation, if the revocation is made during the taxable year but after the fifteenth day of the third month thereof, or S. 2509--A 36 A. 3009--A (C) on and after the date so specified, if the revocation specifies a date for revocation which is on or after the day on which the revocation is made, or (3) if any person who was not a shareholder of the corporation on the day on which the election is made becomes a shareholder in the corpo- ration and affirmatively refuses to consent to such election in the manner the tax commission may prescribe by regulation, on the day such person becomes a shareholder]. [(d)] (C) New York S termination year. In the case of a New York S termination year, the amount of any item of S corporation income, loss and deduction and reductions for taxes (as described in paragraphs two and three of subsection (f) of section thirteen hundred sixty-six of the internal revenue code) required to be taken account of under this arti- cle shall be adjusted in the same manner that the S corporation's items which are included in the shareholder's federal adjusted gross income are adjusted under subsection (s) of section six hundred twelve. [(e) Inadvertent invalid elections. If (1) an election under subsection (a) of this section was not effective for the taxable year for which made (determined without regard to paragraph two of subsection (b) of this section) by reason of a failure to obtain shareholder consents, (2) the commissioner determines that the circumstances resulting in such ineffectiveness were inadvertent, (3) no later than a reasonable period of time after discovery of the circumstances resulting in such ineffectiveness, steps were taken to acquire the required shareholder consents, and (4) the corporation, and each person who was a shareholder in the corporation at any time during the period specified pursuant to this subsection, agrees to make such adjustments (consistent with the treat- ment of the corporation as a New York S corporation) as may be required by the commissioner with respect to such period, (5) then, notwithstanding the circumstances resulting in such ineffec- tiveness, such corporation shall be treated as a New York S corporation during the period specified by the commissioner. (f)] (D) QUALIFIED SUBCHAPTER S SUBSIDIARIES. IF AN S CORPORATION HAS ELECTED TO TREAT ITS WHOLLY OWNED SUBSIDIARY AS A QUALIFIED SUBCHAPTER S SUBSIDIARY FOR FEDERAL INCOME TAX PURPOSES UNDER PARAGRAPH THREE OF SUBSECTION (B) OF SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE, SUCH ELECTION SHALL BE APPLICABLE FOR NEW YORK STATE TAX PURPOSES AND (1) THE ASSETS, LIABILITIES, INCOME, DEDUCTIONS, PROPERTY, PAYROLL, RECEIPTS, CAPITAL, CREDITS, AND ALL OTHER TAX ATTRIBUTES AND ELEMENTS OF ECONOMIC ACTIVITY OF THE SUBSIDIARY SHALL BE DEEMED TO BE THOSE OF THE PARENT CORPORATION, (2) TRANSACTIONS BETWEEN THE PARENT CORPORATION AND THE SUBSIDIARY, INCLUDING THE PAYMENT OF INTEREST AND DIVIDENDS, SHALL NOT BE TAKEN INTO ACCOUNT, AND (3) GENERAL EXECUTIVE OFFICERS OF THE SUBSIDIARY SHALL BE DEEMED TO BE GENERAL EXECUTIVE OFFICERS OF THE PARENT CORPORATION. (E) Validated federal elections. If [(1) an election under subsection (a) of this section was made for a taxable year or years of a corpo- ration, which years occur with or within the period for which] the federal S election of [such] AN ELIGIBLE S corporation has been vali- dated pursuant to the provisions of subsection (f) of section thirteen hundred sixty-two of the internal revenue code, [and S. 2509--A 37 A. 3009--A (2) the corporation, and each person who was a shareholder in the corporation at any time during such taxable year or years agrees to make such adjustments (consistent with the treatment of the corporation as a New York S corporation) as may be required by the commissioner with respect to such year or years, (3) then] such corporation shall be treated as [a New York] AN ELIGI- BLE S corporation SUBJECT TO SUBSECTION (A) OF THIS SECTION during [such] THE year or years FOR WHICH SUCH ELECTION HAS BEEN VALIDATED. [(g) Transitional rule. Any election made under this section (as in effect for taxable years beginning before January first, nineteen hundred eighty-three) shall be treated as an election made under subsection (a) of this section. (h) Cross reference. For definitions relating to S corporations, see subdivision one-A of section two hundred eight of this chapter. (i) Mandated New York S corporation election. (1) Notwithstanding the provisions in subsection (a) of this section, in the case of an eligible S corporation for which the election under subsection (a) of this section is not in effect for the current taxable year, the shareholders of an eligible S corporation are deemed to have made that election effective for the eligible S corporation's entire current taxable year, if the eligible S corporation's investment income for the current taxa- ble year is more than fifty percent of its federal gross income for such year. In determining whether an eligible S corporation is deemed to have made that election, the income of a qualified subchapter S subsidiary owned directly or indirectly by the eligible S corporation shall be included with the income of the eligible S corporation. (2) For the purposes of this subsection, the term "eligible S corpo- ration" has the same definition as in subsection (a) of this section. (3) For the purposes of this subsection, the term "investment income" means the sum of an eligible S corporation's gross income from interest, dividends, royalties, annuities, rents and gains derived from dealings in property, including the corporation's share of such items from a partnership, estate or trust, to the extent such items would be includa- ble in federal gross income for the taxable year. (4) Estimated tax payments. When making estimated tax payments required to be made under this chapter in the current tax year, the eligible S corporation and its shareholders may rely on the eligible S corporation's filing status for the prior year. If the eligible S corpo- ration's filing status changes from the prior tax year the corporation or the shareholders, as the case may be, which made the payments shall be entitled to a refund of such estimated tax payments. No additions to tax with respect to any required declarations or payments of estimated tax imposed under this chapter shall be imposed on the corporation or shareholders, whichever is the taxpayer for the current taxable year, if the corporation or the shareholders file such declarations and make such estimated tax payments by January fifteenth of the following calendar year, regardless of whether the taxpayer's tax year is a calendar or a fiscal year.] § 20. Transition rules. Any prior net operating loss conversion subtraction and net operating loss carryforward that otherwise would have been allowed under subparagraphs (viii) and (ix), respectively, of paragraph (a) of subdivision 1 of section 210 of the tax law for the taxable years beginning on or after January 1, 2022 to any taxpayer that was a New York C corporation for a taxable year beginning on or after January 1, 2021 and before January 1, 2022, and that becomes a New York S corporation for a taxable year beginning on or after January 1, 2022 S. 2509--A 38 A. 3009--A as a result of the amendments made by this act, shall be held in abey- ance and be available to such taxpayer if its election to be a federal S corporation is terminated. Further, any credit carryforwards allowed to such a taxpayer under section 210-B of the tax law shall be held in abeyance and be available to such taxpayer if its election to be a federal S corporation is terminated. However, the taxpayer's years as a New York S corporation shall be counted for purposes of computing any time period applicable to the allowance of the prior net operating loss conversion subtraction or carryforward, the net operating loss deduction, or any credit carryforward. § 21. This act shall take effect immediately, provided, however, that section one shall apply to taxable years beginning on or after January 1, 2021 and sections two through twenty shall apply to taxable years beginning on or after January 1, 2022. PART F Section 1. Paragraph 5 of subdivision (a) of section 24 of the tax law, as amended by section 5-a of part M of chapter 59 of the laws of 2020, is amended to read as follows: (5) For the period two thousand fifteen through two thousand [twenty- five] TWENTY-SIX, in addition to the amount of credit established in paragraph two of this subdivision, a taxpayer shall be allowed a credit equal to the product (or pro rata share of the product, in the case of a member of a partnership) of ten percent and the amount of wages or sala- ries paid to individuals directly employed (excluding those employed as writers, directors, music directors, producers and performers, including background actors with no scripted lines) by a qualified film production company or a qualified independent film production company for services performed by those individuals in one of the counties specified in this paragraph in connection with a qualified film with a minimum budget of five hundred thousand dollars. For purposes of this additional credit, the services must be performed in one or more of the following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this paragraph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty- five] TWENTY-SIX 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 S. 2509--A 39 A. 3009--A 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- five] TWENTY-SIX. § 2. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 5-b of part M of chapter 59 of the laws of 2020, 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-five] TWENTY-SIX 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-five] TWENTY-SIX 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-five] TWENTY-SIX. This amount shall be allocated by the governor's office for motion picture and television development among taxpayers in accordance with subdivision (a) of this section. If the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allocation in the empire state film tax credit pursuant to this section, subdivision twenty of section two hundred ten-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previ- ously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unal- located film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be made available for allocation for the empire state film post production credit pursuant to this section, subdivision thirty-two of section two hundred ten-B and subsection (qq) of section six hundred six of this 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 S. 2509--A 40 A. 3009--A the taxable year the production of the qualified film is complete, or the taxable year immediately following the allocation year for which the film has been allocated credit by the governor's office for motion picture and television development. § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 2 of part SSS of chapter 59 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-SIX provided however, seven million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in two thousand thirteen and two thousand fourteen and twenty-five million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in each year starting in two thousand fifteen through two thousand [twenty-four] TWENTY-SIX. This amount shall be allocated by the governor's office for motion picture and television development among taxpayers in accordance with subdivision (a) of this section. If the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allocation in the empire state film tax credit pursuant to this section, subdivision twenty of section two hundred ten-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previ- ously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unal- located film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be made available for allocation for the empire state film post production credit pursuant to this section, subdivision thirty-two of section two hundred ten-B and subsection (qq) of section six hundred six of this 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. S. 2509--A 41 A. 3009--A § 4. Paragraph 6 of subdivision (a) of section 31 of the tax law, as amended by section 5-c of part M of chapter 59 of the laws of 2020, is amended to read as follows: (6) For the period two thousand fifteen through two thousand [twenty- five] TWENTY-SIX, 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, COLUMBIA, Cort- land, 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, SULLIVAN, Tioga, Tompkins, ULSTER, WARREN, WASHINGTON, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this para- graph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty-five] TWENTY-SIX of the annual allocation made available to the empire state film post production credit pursuant to paragraph four of subdivision (e) of section twenty-four of this article. Such aggregate amount of credits shall be allocated by the governor's office for motion picture and tele- vision 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 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 para- graph 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 period two thousand fifteen through two thousand [twenty-five] TWENTY-SIX. § 5. Paragraph 3 of subdivision (b) of section 24 of the tax law, as separately amended by sections 3 and 4 of part M of chapter 59 of the laws of 2020, is amended to read as follow: (3) "Qualified film" means a feature-length film, television film, relocated television production, television pilot or television series, regardless of the medium by means of which the film, pilot or 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 S. 2509--A 42 A. 3009--A 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 prima- rily 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; (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 (mono- logues, 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 commissioner 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 applica- tion for each season of such series is continually submitted for such series after April first, two thousand twenty. § 6. This act shall take effect immediately; provided, however, that the amendments made by section five of this act shall apply to applica- tions that are filed with the governor's office for motion picture and television development on or after April 1, 2021; provided, further, however that the amendments to paragraph 4 of subdivision (e) of section 24 of the tax law made by section two of this act shall take effect on the same date and in the same manner as section 5 of chapter 683 of the laws of 2019, as amended, takes effect. PART G Section 1. Paragraph 3 of subsection (v) of section 685 of the tax law, as amended by section 3 of part I of chapter 59 of the laws of 2018, is amended to read as follows: (3) Failure to provide complete and correct employee withholding reconciliation information. In the case of a failure by an employer to provide complete and correct quarterly withholding information relating to individual employees on a quarterly combined withholding, wage reporting and unemployment insurance return covering each calendar quar- ter of a year, such employer shall, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, pay a penalty equal to the product of [fifty] ONE HUNDRED dollars multiplied by the number of employees for whom such information is incomplete or incor- rect; provided, however, that if the number of such employees cannot be S. 2509--A 43 A. 3009--A determined from the quarterly combined withholding, wage reporting and unemployment insurance return, the commissioner may utilize any informa- tion in the commissioner's possession in making such determination. The total amount of the penalty imposed pursuant to this paragraph on an employer for any such failure for each calendar quarter of a year shall not exceed [ten] FIFTY thousand dollars. § 2. This act shall take effect immediately and apply to returns filed on or after June 1, 2021. PART H 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 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 S. 2509--A 44 A. 3009--A 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 board 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 board 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 or processors, 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 or processors, in accordance with regulations determined by the board. 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. 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 distributors, microbusinesses, cooper- atives or eligible registered organizations and who may sell approved adult-use cannabis products, through a retail outlet, as 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. S. 2509--A 45 A. 3009--A 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. 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 or additional designated caregivers as may be approved by the office. 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; that registers with the office of cannabis management to assist one or more certified patients with the acquisi- tion, 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. S. 2509--A 46 A. 3009--A 22. "Cannabinoid hemp product" means any hemp and any product proc- essed 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 total THC per quantity of cannabinoid hemp product as determined by the board 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, a measure of total THC, 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- mum, a two-hour course as determined by the board in regulation; provided however, the executive director may revoke a practitioner'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 cannabinoid hemp, or such other related processes as determined by the executive director. 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. S. 2509--A 47 A. 3009--A 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. "THC" means Delta-9-tetrahydrocannabinol; Delta-8-tetrahydrocanna- binol and the optical isomers of such substances. 47. "Total THC" means the sum of the percentage by weight of tetrahy- drocannabinolic acid multiplied by 0.877 plus the percentage by weight of THC. 48. "Wholesale sale" or "sale at wholesale" means a sale to any person for purposes of resale. 49. "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. 50. "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. S. 2509--A 48 A. 3009--A 15. Violations of cannabis laws or regulations; penalties and injunctions. 16. Formal hearings; notice and procedure. 17. Ethics, transparency and accountability. 18. Public health and education 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 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. The chairperson shall also be designated as the exec- utive director of the office of cannabis management. 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 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. A statement of the cause for their removal shall be filed by the governor in the office of the secretary of state. S. 2509--A 49 A. 3009--A 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 without consultation with the Senate and the Assembly. 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 its executive director. The executive director shall receive an annual salary within the amounts appropriated therefor. § 11. Functions, powers and duties of the office and executive direc- tor. The office of cannabis management, by and through its executive director, shall have the following powers and duties: 1. To issue or refuse to issue any registration, license or permit provided for in this chapter. 2. To limit the number, scope, and/or availability of registrations, licenses and permits of each class to be issued within any political or geographic subdivision of the state, and in connection therewith to prohibit the acceptance of applications for such classes which have been so limited, as set out in regulation and approved by the board. 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 regulation the standards and requirements for the culti- vation, processing, packaging, marketing, and sale of medical cannabis, S. 2509--A 50 A. 3009--A 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, as set out in regulation and approved by the board. 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. To delegate the powers provided in this section to such other offi- cers or employees or other state agencies as may be deemed appropriate by the executive director, provided however, that any duty delegated to the executive director by the board shall not be further delegated with- out approval by the board. 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, S. 2509--A 51 A. 3009--A 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) 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, and cannabinoid hemp; conditions of sanitation, standards of ingredients, quality, and identity of adult-use cannabis and medical cannabis products cultivated, processed, 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 office; 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 and inversion of adult-use cannabis and medical cannabis from this state to other states and from other states into this state insofar as cannabis remains federally prohibited; S. 2509--A 52 A. 3009--A (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 insofar as cannabis remains federally prohibited; (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 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 (m) 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. 5. The board shall have the authority to promulgate regulations governing the appropriate use and licensure of the manufacturing of cannabinoids, or other compounds contained within the cannabis plant, through any method other than planting, growing, cloning, harvesting, or other traditional means of plant agriculture. § 13. Deputies; employees. 1. The executive director shall appoint a deputy director for health and safety who shall be a licensed health care practitioner within the state and who shall oversee all clinical aspects of the office. The executive director shall also appoint a depu- ty director for social and economic equity who shall oversee the social and economic equity plan. The executive director may appoint such other deputies as he or she deems necessary to fulfill the responsibilities of the office. S. 2509--A 53 A. 3009--A 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 scale 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-ii 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, or by both. 2. Any person who violates, disobeys or disregards any term or provision of this chapter or of any lawful notice, order or regulation pursuant thereto for which a civil penalty is not otherwise expressly prescribed by law, shall be liable to the people of the state for a civil penalty of not to exceed five thousand dollars 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- S. 2509--A 54 A. 3009--A 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. Except as authorized by the board no member of the office or any officer, deputy, assistant, inspector or employee thereof shall have any interest, direct or indi- rect, either proprietary or by means of any loan, mortgage or lien, or in any other manner, in or on any premises registered, licensed or permitted under this chapter; nor shall they have any interest, direct or indirect, in any business wholly or substantially devoted to the cultivation, processing, distribution, sale, transportation, marketing, testing, or storage of adult-use cannabis, medical cannabis or cannabi- noid hemp, or own any stock in any corporation which has any interest, proprietary or otherwise, direct or indirect, in any premises where S. 2509--A 55 A. 3009--A adult-use cannabis, 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, transporta- tion or storage of adult-use cannabis, medical cannabis or cannabinoid hemp, or receive any commission or profit whatsoever, direct or indi- rect, 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 and education campaign. The office, in consulta- tion with the commissioners of the department of health, office of addiction services and supports, and office of mental health, shall develop and implement a comprehensive public health monitoring, surveil- lance and education campaign regarding the legalization of adult-use cannabis and the impact of cannabis use on public health and safety. The public health and education campaign shall also include general education to the public about the cannabis law. § 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. The office shall engage in activities with other states, territories, or jurisdictions in order to coordinate and establish, uniform policies and best practices in cannabis regulation. These activities shall prioritize coordination with neighboring and regional states, and may include, but not be limit- ed to establish working groups related to laboratory testing, products safety, taxation, road safety, compliance and adherence with federal policies which promote or facilitate cannabis research, commerce and/or regulation, and any other issues identified by the executive director. The executive director may enter into any contracts, or memoranda 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. Intentionally omitted. 42. Relation to other laws. S. 2509--A 56 A. 3009--A 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. 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 S. 2509--A 57 A. 3009--A 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 board shall make regulations to implement this subdivision. 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 board in regulation; (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 board under para- graph (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 or limitation issued by the executive director or regulation issued by the board; 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 S. 2509--A 58 A. 3009--A 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. 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. S. 2509--A 59 A. 3009--A 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 board 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; provided, however, that if the office requires certified patients to submit photographs for this purpose, there shall be a reasonable accommodation 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 S. 2509--A 60 A. 3009--A 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 and any other information necessary to protect patients' rights to medical cannabis by confirming compliance with this article. 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 board in regulation. 2. The acquiring, possession, manufacture, testing, sale, delivery, transporting, distributing, or dispensing of medical cannabis by a registered organization under this article in accordance with its regis- tration under this article or a renewal thereof shall be lawful under this chapter. S. 2509--A 61 A. 3009--A 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 only sell, deliver, distribute, or dispense medical cannabis to a certified patient or designated care- giver upon presentation to the registered organization of valid iden- tification for that certified patient or designated caregiver. When presented with the registry identification card, the registered organ- ization shall provide to the certified patient or designated caregiver a receipt, which shall state: the name, address, and registry identifica- tion number of the registered organization; the name and registry iden- tification number of the certified patient and the designated caregiver, if any; the date the cannabis was sold; any recommendation 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 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 board. (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 board in regulation; and (ii) shall verify the information in subparagraph (i) of this para- graph by consulting the prescription monitoring program registry under this article. (c) Medical cannabis dispensed to a certified patient or designated caregiver by a registered organization shall conform to any recommenda- tion or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient, and any medical cannabis product or form limitations or restrictions determined by the executive director. 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. S. 2509--A 62 A. 3009--A 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 a secure facility located in New York state, which may include a greenhouse. The board shall promulgate regulations estab- lishing requirements for such facilities. 9. Dispensing of medical cannabis by a registered organization shall only be done in an indoor, enclosed, secure facility located in New York state. The board 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 title 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; S. 2509--A 63 A. 3009--A (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 is applying to engage in 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 obtain 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 executive director may grant a registration, approve one or more activities permitted under a registration, or grant a requested amendment to a registration under this section if they are 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; S. 2509--A 64 A. 3009--A (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 state or 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/or 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 board 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 S. 2509--A 65 A. 3009--A 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 the cultivation, manufacture, distribution or sale of adult-use cannabis or medical cannabis. (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 obtain 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 renew a registration unless he or she determines and finds that: (i) the applicant is unlikely to maintain or be able to maintain effective control against diversion; (ii) the applicant is unlikely to comply with all state laws 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 state or 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 obtain prior approval for S. 2509--A 66 A. 3009--A 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 board. § 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 article. 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 article. 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 article 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/or 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. S. 2509--A 67 A. 3009--A 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 subdivision 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, or concentrated cannabis a licensee may have on its premises; (f) licensee reporting requirements; (g) conditions under which cannabis grown by licensed or registered cannabis producers 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 unless otherwise permitted under federal law, and the holder thereof may not allow any other person to use the license. 7. The application and license fees for a cannabis research license shall be determined by the executive director on an annual basis and may be based on the size, scope and duration of the research proposed. 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 board shall have the authority to hold a competitive bidding process, includ- ing, in its discretion the ability to set price by an auction, to deter- mine the registered organization(s) authorized to be licensed to culti- vate, process, distribute and/or sell adult-use cannabis and to collect the fees generated from such auction to administer the office's social S. 2509--A 68 A. 3009--A and economic equity plan and other duties prescribed by this chapter, and notwithstanding the prohibitions in article four of this chapter the board may permit such bidders to continue to participate in adult-use cannabis as a vertically integrated entity if such competitive process permits. 2. 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. 3. 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 board. § 41. Intentionally omitted. § 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 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 S. 2509--A 69 A. 3009--A 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. The executive director may require the sale of medical cannabis to be at or below an approved price established by the executive director. Every charge made or demanded for medical cannabis not in accordance with an approved price, is prohibited. 2. 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. Awarding of licenses. 62. Information to be requested in response to the request for proposals. 63. Fees. 64. Approval and selection criteria. 65. Limitations of licensure; duration. 66. License renewal. 67. Amendments; changes in ownership and organizational struc- ture. 68. Adult-use cultivator license. 69. Adult-use processor license. 70. Adult-use cooperative license. 71. Adult-use distributor license. 72. Adult-use retail dispensary license. 73. Intentionally omitted. 74. Intentionally omitted. 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. S. 2509--A 70 A. 3009--A 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; and 6. Any other type of license as prescribed by the executive director in regulation. § 61. Awarding of licenses. 1. The board shall issue a request for proposals for licenses authorized pursuant to this section, and may award as many licenses in such classes as the board sets out in such request. 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 award shall not be denied for 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 response to the request for proposals. 1. The office shall have the authority to prescribe the manner and form in which a response must be submitted to the office. Such information may include, but is not limited to: information about the applicant's identity, including racial and ethnic diversity; owner- ship and investment information, including the corporate structure; evidence of good moral character, including the submission of finger- prints by the applicant to the division of criminal justice services; information about the premises to be licensed; financial statements; and any other information prescribed in regulation. 2. All responses shall be signed by the applicant (if an individual), by a managing partner (if a limited liability corporation), by an offi- cer (if a corporation), or by all partners (if a partnership). Each person signing such response shall verify it or affirm it as true under the penalties of perjury. 3. All responses 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 response or the award 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 veri- fied, shall be submitted to the office at least thirty days prior to such proposed change. Failure to do so shall, if willful and deliberate, be cause for revocation of the license. S. 2509--A 71 A. 3009--A 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 response and in any supple- mental statement or request connected therewith, and such information may be presumed to be correct, and shall be binding upon a registered organization, licensee or licensed premises as if correct. All informa- tion required to be furnished in such response, 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 proposer or proposers. 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 proposers under this article a non-refundable application fee and/or to auction licenses to bidders determined by the office to be qualified for such licensure based on the selection criteria in section sixty-four of this article. Such fee may be based on the type of licensure sought, culti- vation 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. 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 a propo- ser shall be awarded a license 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 proposer will be able to maintain effective control against the illegal diversion or inversion of cannabis; (b) the proposer will be able to comply with all applicable state laws and regulations; (c) the proposer 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 proposer 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; S. 2509--A 72 A. 3009--A (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 proposer and its managing officers are of good moral character and do not have an ownership or controlling interest in more licenses, registrations, permits, or the scope of activity allowed by this chap- ter, or any regulations promulgated hereunder; (g) the proposer has entered into a labor peace agreement with a bona- fide labor organization that is actively engaged in representing or attempting to represent the proposer's employees, and the maintenance of such a labor peace agreement shall be an ongoing material condition of licensure. (h) the proposer 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 response is for an adult-use cultivator license, the envi- ronmental impact of the facility to be licensed; and (j) the proposer satisfies any other conditions as determined by the executive director. 2. If the executive director is not satisfied that the proposer is eligible to be approved, or subsequently should be issued a license, the executive director shall notify the proposer in writing of the specific reason or reasons for denial. § 65. Limitations of licensure; duration. 1. No license of any kind may be issued to a person under the age of twenty-one years, nor shall any licensee employ anyone under the age of 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 licensee, registrant or permittee shall knowingly sell, deliver or give away or cause or permit or procure to be sold, delivered or given away to a lawful cannabis consumer any amount of cannabis which would cause the lawful cannabis consumer to be in violation of the possession limits established by this chapter, or their equivalent as determined by the executive director. 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 S. 2509--A 73 A. 3009--A 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 (e) such other information as the executive director shall deem neces- sary to assure compliance with this chapter. 2. Upon application to the office, a response to a request for proposals 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 applicant or licensee, upon approval by the executive director. The fee for such amendment shall be determined by the execu- tive director. 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 specify the process for amendment requests and allowing for certain types of changes in ownership without the need for prior written approval. 4. For purposes of this section, "substantial corporate change" shall mean: (a) for a corporation, a change of 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 S. 2509--A 74 A. 3009--A 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, not more than 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. 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 pursuant to criteria established by the board in regulation. 6. The executive director shall have the authority to issue microbusi- ness licenses, allowing microbusiness licensees to cultivate, process, distribute and retail adult-use cannabis direct to licensed cannabis retailers and consumers, under a single license. The board may estab- lish through regulation microbusiness license eligibility criteria and production limits of total cannabis cultivated, processed and/or distributed annually for microbusiness 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 or 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 a person issued an adult-use cannabis culti- vator, processor, and/or distributor license may hold and operate all issued licenses on the same premises. 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 S. 2509--A 75 A. 3009--A 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 or 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 board; (b) subordinate capital, both as regards control over the cooperative undertaking, and as regards the ownership of the pecuniary benefits arising therefrom; (c) be democratically controlled by the members themselves on the basis of one vote per member; (d) vest in and allocate with priority to and among the members of all increases arising from their cooperative endeavor in proportion to the members' active participation in the cooperative endeavor; and (e) operate according to the seven cooperative principles published by the International Cooperative Alliance in nineteen 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. § 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, or any other person licensed, registered or permitted by the office to sell or transfer cannabis to or within the state, to duly licensed retail dispensaries. 2. No distributor shall have a direct or indirect economic interest in any microbusiness or 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 cultivated 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. S. 2509--A 76 A. 3009--A 4. Adult-use distributor licensees are subject to minimum operating requirements as determined by the board in 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, 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 licensee shall locate a storefront within five hundred feet of a building occupied exclusively as a school. § 73. Intentionally omitted. § 74. Intentionally omitted. § 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 but not limited to financial statements and corporate documents, shall be subject to inspection by the office, by the duly authorized represen- tatives 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 accommodations so that ordinary business is not interrupted and safety and security procedures are not compromised by the inspection. A person who holds a license or permit must make himself or herself, or an agent thereof, available and present for any inspection required by the office. Such inspection may include, but is not limited to, ensuring compliance by the licensee or permittee with all of the requirements of this article, the regulations promulgated pursuant ther- eto, and other applicable building codes, fire, health, safety, and governmental regulations, 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, microbusiness, cooperative or distributor licensed under this article to: (a) be interested directly or indirectly in any premises where any cannabis product is sold at retail; or in any business devoted wholly or partially to the sale of any cannabis product at retail by stock owner- ship, interlocking directors, mortgage or lien or any personal or real property, or by any other means. S. 2509--A 77 A. 3009--A (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 or promote 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. 2. The provisions of this section shall not prohibit a microbusiness, or 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 microbusiness or registered organization, subject to any condi- tions, 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 products, active cannabis concentration per serving size, and number of servings per container. Such regulations may also require a nutri- tional fact panel that incorporates data regarding serving 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 administration associated with specific product types, and any other criteria identified by the office for consideration to protect public health and safety. 6. Such regulations shall also require product labels to accurately display the total THC of each product. S. 2509--A 78 A. 3009--A 7. 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 executive director may assign an approved testing laborato- ry, which the processor of adult-use cannabis must use, and may estab- lish 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 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, or a cannabinoid hemp processor license pursuant to article five 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 regulations 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 S. 2509--A 79 A. 3009--A 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, may offer any incen- tive, payment or other benefit to a licensed cannabis retail dispensary in return for carrying the cultivator, processor, cooperative or micro- business's products, or preferential shelf placement. 7. All cannabis products shall be processed in accordance with good manufacturing practices 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 permitted by 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 and the total THC content of purchased cannabis products as reflected on the product labels, 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 and the total THC content of cannabis products sold as reflected on the final product labels, with the names, addresses, and license numbers of such purchasers and any other informa- tion required in regulation. Each sale shall be recorded separately on a numbered invoice, which shall have printed thereon the number, the name of the licensee, the address of the licensed premises, and the current S. 2509--A 80 A. 3009--A 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, the total THC content of purchased cannabis products as reflected on the product labels, 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, customer loyalty program or other consideration 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 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. 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. S. 2509--A 81 A. 3009--A 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. All adult-use dispensing facilities shall make educational materi- als and resources available to cannabis consumers at the point of sale, as prescribed by the office, encouraging such cannabis consumers to seek the help of a state licensed facility or program for the treatment of cannabis use disorder. 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 board in regulation. The board may approve adult-use retail dispensaries which engage solely in the retail delivery of adult-use cannabis products without an approved storefront location. § 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 regulations 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; S. 2509--A 82 A. 3009--A (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 regulations 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 regulations requiring that: (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 S. 2509--A 83 A. 3009--A 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 in submission and review for adult-use cannabis licenses; (ii) priority in specific classes or categories of adult-use cannabis licenses and licensed activities, geographic areas or license location; (iii) reduced or deferred fees for adult-use cannabis applications and/or licenses; (iv) access to low or zero interest small business loans for entry into the adult-use cannabis market; (v) access to incubator programs pairing qualified and eligible social and economic equity applicants with support in the form of counseling services, education, small business development, and compliance assist- ance; (vi) access to cannabis workforce development and hiring initiatives which incentivize hiring of qualified social and economic equity staff members; and (vii) 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 board through regu- lations, provided sufficient funds are available. 4. For the purposes of this section, the following definitions shall apply: (a) A minority-owned business, minority group member, and women-owned business shall have the same meaning as defined in section three hundred ten of the executive law. (b) 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. (c) "Disadvantaged farmer" shall mean a New York state resident or business enterprise, including a sole proprietorship, partnership, limited liability company or corporation, that has reported at least two-thirds of its federal gross income as income from farming, in at least one of the 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 board. (d) "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 board in regulation; S. 2509--A 84 A. 3009--A (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. § 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 product" 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 total THC concentration which exceeds an amount determined by the board in regulation. 3. "Used for human consumption" means intended by the manufacturer or distributor to be: (a) used for human consumption for its cannabinoid S. 2509--A 85 A. 3009--A 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 total THC concentration of not more than an amount determined by the board in regulation. For the purpose of this article, hemp extract excludes (a) any food, food ingredient or food additive that is general- ly 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 regu- lations. 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: 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 S. 2509--A 86 A. 3009--A 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 office. 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. The board shall make rules and regulations 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. § 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. The board shall 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. S. 2509--A 87 A. 3009--A § 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. 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. S. 2509--A 88 A. 3009--A 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- 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. S. 2509--A 89 A. 3009--A § 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 board may adopt. 2. The board 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. 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 S. 2509--A 90 A. 3009--A 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 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 and to establish the periods during which such permits are valid. The board shall 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. S. 2509--A 91 A. 3009--A 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 manufacturing, 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 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. S. 2509--A 92 A. 3009--A 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 or board. 8. The proper conduct of registered, licensed, or permitted premises is essential to the public interest. Failure of a registered organiza- tion, licensee, or permittee to exercise adequate supervision over the registered, licensed, or permitted location poses a substantial risk not only to the objectives of this chapter but imperils the health, safety, and welfare of the people of this state. It shall be the obligation of each person registered, licensed, or permitted under this chapter to ensure that a high degree of supervision is exercised over any and all conduct at any registered, licensed, or permitted location at any and all times in order to safeguard against abuses of the privilege of being registered, licensed, or permitted, as well as other violations of law, statute, rule, or regulation. Persons registered, licensed, or permitted shall be held strictly accountable for any and all violations that occur upon any registered, licensed, or permitted premises, and for any and all violations committed by or permitted by any manager, agent or employee of such registered, licensed, or permitted person. 9. It shall be unlawful for any person, partnership or corporation operating a place for profit or pecuniary gain, with a capacity for the assemblage of twenty or more persons to permit a person or persons to come to the place of assembly for the purpose of cultivating, process- ing, distributing, or retail distribution or sale of cannabis on said premises. This includes, but is not limited, to, cannabis that is either provided by the operator of the place of assembly, his agents, servants or employees, or cannabis that is brought onto said premises by the person or persons assembling at such place, unless an appropriate regis- tration, license, or permit has first been obtained from the office of cannabis management by the operator of said place of assembly. 10. As it is a privilege under the law to be registered, licensed, or permitted to cultivate, process, distribute, traffic, or sell cannabis, the office may impose any such further restrictions upon any registrant, licensee, or permittee in particular instances as it deems necessary to further state policy and best serve the public interest. A violation or failure of any person registered, licensed, or permitted to comply with any condition, stipulation, or agreement, upon which any registration, license, or permit was issued or renewed by the office shall subject the registrant, licensee, or permittee to suspension, cancellation, revoca- tion, and/or civil penalties as determined by the office. 11. No adult-use cannabis or medical cannabis may be imported to, or exported out of, New York state by a registered organization, licensee or person holding a license and/or permit pursuant to this chapter, until such time as it may become legal to do so under federal law and the board has promulgated regulations for the minimum requirements of such activities. Should it become legal to do so under federal law, the S. 2509--A 93 A. 3009--A board shall have the authority to promulgate rules and regulations 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. The office may establish regulations to enforce this subdivision. 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 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 S. 2509--A 94 A. 3009--A 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 registered, licensed or permitted pursuant to this chapter and 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 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. S. 2509--A 95 A. 3009--A 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 recognizance, non-monetary conditions, or bail prior to being convicted, shall not be punished or otherwise penalized for conduct allowed under this chapter unless the terms and conditions of said parole, probation, or state supervision explicitly prohibit a person's cannabis use or any other conduct otherwise allowed under this chapter. A person's use of cannabis or conduct under this chapter shall not be prohibited unless it has been shown by clear and convincing evidence that the prohibition is reasonably related to the underlying crime. Nothing in this provision shall restrict the rights of a certi- fied medical patient. § 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 S. 2509--A 96 A. 3009--A 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, license or permit shall be pledged or deposited as collateral 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, which may include a permit fee and must demonstrate the follow- ing 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 as authorized in regulation; 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. 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 establishing minimum operating and testing requirements, and requiring permitted laboratories to perform certain tests and services. S. 2509--A 97 A. 3009--A 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. 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 and registered organizations. 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 cannabinoid hemp 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. Temporary retail cannabis permit - to authorize the retail sale of adult-use cannabis to cannabis consumers, for a limited purpose or dura- tion. 8. 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. 9. 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. 10. 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. 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 S. 2509--A 98 A. 3009--A 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 on or before December thirty-first, two thousand twenty-one, adopts a local law, ordinance or resolution by a majority vote of its governing body, to completely prohibit the estab- lishment of one or more types of licenses contained in article four of this chapter, within the jurisdiction of such county or city. Any coun- ty law, ordinance or resolution passed by a county pursuant to this subdivision shall not apply to a city that has a population of one hundred thousand or more residents and that is geographically located within the county unless such a prohibition is also adopted by a majori- ty vote of the city's governing body. No law, ordinance or resolution may be adopted after January first, two thousand twenty-two, completely prohibiting the establishment of one or more types of licenses contained in article four of this chapter. 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, licensee or permittee to enter into a community host agree- ment 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 S. 2509--A 99 A. 3009--A not more than ten thousand dollars per violation, per day, or a sentence of imprisonment not to exceed thirty days and upon all subsequent 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, S. 2509--A 100 A. 3009--A welfare, safety, or repose of the inhabitants of the area in which the registered or licensed premises is located, or results in the licensed premises becoming a focal point for police attention, or is offensive to public decency. (b) (i) As used in this section, the term "for cause" shall also include deliberately misleading the authority: (A) as to the nature and character of the business to be operated by the registered organization, licensee or permittee; or (B) by substantially altering the nature or character of such business during the registration or licensing period without seeking appropriate approvals from the office. (ii) As used in this subdivision, the term "substantially altering the nature or character" of such business shall mean any significant alter- ation in the scope of business activities conducted by a registered organization, licensee or permittee that would require obtaining an alternate form of registration, license or permit. 4. As used in this chapter, the existence of a sustained and continu- ing pattern of misconduct, failure to adequately prevent diversion or disorder on or about the premises may be presumed upon the 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 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 board. 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. 2509--A 101 A. 3009--A (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. 2509--A 102 A. 3009--A 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 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. 3. 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 board in regulation, of illicit cannabis. This presumption may be rebutted. 4. 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 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 S. 2509--A 103 A. 3009--A 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 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- S. 2509--A 104 A. 3009--A 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 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 S. 2509--A 105 A. 3009--A 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- inal history record check. If additional copies of fingerprints are required, the applicant shall furnish them upon request. § 3. Intentionally omitted. S. 2509--A 106 A. 3009--A § 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, 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 21 as amended by chapter 1 of the laws of 2020, subdivision 31 as amended by section 4 of part A of chapter 58 of the laws of 2004, subdivision 41 as added by section 6 of part A of chapter 447 of the laws of 2012, and subdivisions 42 and 43 as added by section 13 of part D of chapter 60 of the laws of 2014, is amended to read as follows: § 3302. Definitions of terms of general use in this article. Except where different meanings are expressly specified in subsequent provisions of this article, the following terms have the following mean- ings: 1. "Addict" means a person who habitually uses a controlled substance for a non-legitimate or unlawful use, and who by reason of such use is dependent thereon. 2. "Administer" means the direct application of a controlled substance, whether by injection, inhalation, ingestion, or any other means, to the body of a patient or research subject. 3. "Agent" means an authorized person who acts on behalf of or at the direction of a manufacturer, distributor, or dispenser. No person may be authorized to so act if under title VIII of the education law such person would not be permitted to engage in such conduct. It does not include a common or contract carrier, public warehouseman, or employee of the carrier or warehouseman when acting in the usual and lawful course of the carrier's or warehouseman's business. 4. ["Concentrated Cannabis" means (a) the separated resin, whether crude or purified, obtained from a plant of the genus Cannabis; or (b) a material, preparation, mixture, compound or other substance which contains more than two and one-half percent by weight of delta-9 tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran numbering system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono- terpene numbering system. 5.] "Controlled substance" means a substance or substances listed in section thirty-three hundred six of this [chapter] TITLE. [6.] 5. "Commissioner" means commissioner of health of the state of New York. [7.] 6. "Deliver" or "delivery" means the actual, constructive or attempted transfer from one person to another of a controlled substance, whether or not there is an agency relationship. [8.] 7. "Department" means the department of health of the state of New York. [9.] 8. "Dispense" means to deliver a controlled substance to an ulti- mate user or research subject by lawful means, including by means of the internet, and includes the packaging, labeling, or compounding necessary to prepare the substance for such delivery. [10.] 9. "Distribute" means to deliver a controlled substance, includ- ing by means of the internet, other than by administering or dispensing. [11.] 10. "Distributor" means a person who distributes a controlled substance. S. 2509--A 107 A. 3009--A [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, mixture, or preparation of the plant, its seeds or resin. The term "marihuana" shall not include: S. 2509--A 108 A. 3009--A (a) 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; (b) hemp, as defined in subdivision one of section five hundred five of the agriculture and markets law; (c) cannabinoid hemp as defined in subdivision two of section thirty- three hundred ninety-eight of this chapter; or (d) hemp extract as defined in subdivision five of section thirty- three hundred ninety-eight of this chapter. 22.] 20. "Narcotic drug" means any of the following, whether produced directly or indirectly by extraction from substances of vegetable origin, or independently by means of chemical synthesis, or by a combi- nation of extraction and chemical synthesis: (a) opium and opiate, and any salt, compound, derivative, or prepara- tion of opium or opiate; (b) any salt, compound, isomer, derivative, or preparation thereof which is chemically equivalent or identical with any of the substances referred to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but not including the isoquinoline alkaloids of opium; (c) opium poppy and poppy straw. [23.] 21. "Opiate" means any substance having an addiction-forming or addiction-sustaining liability similar to morphine or being capable of conversion into a drug having addiction-forming or addiction-sustaining liability. It does not include, unless specifically designated as controlled under section [3306] THIRTY-THREE HUNDRED SIX of this [arti- cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and its salts (dextromethorphan). It does include its racemic and levorota- tory forms. [24.] 22. "Opium poppy" means the plant of the species Papaver somniferum L., except its seeds. [25.] 23. "Person" means individual, institution, corporation, govern- ment or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. [26.] 24. "Pharmacist" means any person licensed by the state depart- ment of education to practice pharmacy. [27.] 25. "Pharmacy" means any place registered as such by the New York state board of pharmacy and registered with the Federal agency pursuant to the federal controlled substances act. [28.] 26. "Poppy straw" means all parts, except the seeds, of the opium poppy, after mowing. [29.] 27. "Practitioner" means: A physician, dentist, podiatrist, veterinarian, scientific investi- gator, or other person licensed, or otherwise permitted to dispense, administer or conduct research with respect to a controlled substance in the course of a licensed professional practice or research licensed pursuant to this article. Such person shall be deemed a "practitioner" only as to such substances, or conduct relating to such substances, as is permitted by his license, permit or otherwise permitted by law. [30.] 28. "Prescribe" means a direction or authorization, by prescription, permitting an ultimate user lawfully to obtain controlled substances from any person authorized by law to dispense such substances. S. 2509--A 109 A. 3009--A [31.] 29. "Prescription" shall mean an official New York state prescription, an electronic prescription, an oral prescription[,] OR an out-of-state prescription[, or any one]. [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth- er, or offer or agree to do the same. [33.] 31. "Ultimate user" means a person who lawfully obtains and possesses a controlled substance for his own use or the use by a member of his household or for an animal owned by him or in his custody. It shall also mean and include a person designated, by a practitioner on a prescription, to obtain such substance on behalf of the patient for whom such substance is intended. [34.] 32. "Internet" means collectively computer and telecommuni- cations facilities which comprise the worldwide network of networks that employ a set of industry standards and protocols, or any predecessor or successor protocol to such protocol, to exchange information of all kinds. "Internet," as used in this article, also includes other networks, whether private or public, used to transmit information by electronic means. [35.] 33. "By means of the internet" means any sale, delivery, distribution, or dispensing of a controlled substance that uses the internet, is initiated by use of the internet or causes the internet to be used. [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person in the United States that sells, delivers or dispenses, or offers to sell, deliver, or dispense, a controlled substance by means of the internet. [37.] 35. "Electronic prescription" means a prescription issued with an electronic signature and transmitted by electronic means in accord- ance with regulations of the commissioner and the commissioner of educa- tion and consistent with federal requirements. A prescription generated on an electronic system that is printed out or transmitted via facsimile is not considered an electronic prescription and must be manually signed. [38.] 36. "Electronic" means of or relating to technology having elec- trical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities. "Electronic" shall not include facsimile. [39.] 37. "Electronic record" means a paperless record that is created, generated, transmitted, communicated, received or stored by means of electronic equipment and includes the preservation, retrieval, use and disposition in accordance with regulations of the commissioner and the commissioner of education and in compliance with federal law and regulations. [40.] 38. "Electronic signature" means an electronic sound, symbol, or process, attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the record, in accordance with regulations of the commissioner and the commissioner of education. [41.] 39. "Registry" or "prescription monitoring program registry" means the prescription monitoring program registry established pursuant to section thirty-three hundred forty-three-a of this article. [42.] 40. "Compounding" means the combining, admixing, mixing, dilut- ing, pooling, reconstituting, or otherwise altering of a drug or bulk drug substance to create a drug with respect to an outsourcing facility under section 503B of the federal Food, Drug and Cosmetic Act and further defined in this section. [43.] 41. "Outsourcing facility" means a facility that: S. 2509--A 110 A. 3009--A (a) is engaged in the compounding of sterile drugs as defined in section sixty-eight hundred two of the education law; (b) is currently registered as an outsourcing facility pursuant to article one hundred thirty-seven of the education law; and (c) complies with all applicable requirements of federal and state law, including the Federal Food, Drug and Cosmetic Act. Notwithstanding any other provision of law to the contrary, when an outsourcing facility distributes or dispenses any drug to any person pursuant to a prescription, such outsourcing facility shall be deemed to be providing pharmacy services and shall be subject to all laws, rules and regulations governing pharmacies and pharmacy services. § 5. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31 and 32 of subdivision (d) of schedule I of section 3306 of the public health law, paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23 and 24 as added by chapter 664 of the laws of 1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by chapter 589 of the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the laws of 2006, are amended to read as follows: (13) [Marihuana. (14)] Mescaline. [(15)] (14) Parahexyl. Some trade or other names: 3-Hexyl-1-hydroxy- 7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran. [(16)] (15) Peyote. Meaning all parts of the plant presently classi- fied botanically as Lophophora williamsii Lemaire, whether growing or not, the seeds thereof, any extract from any part of such plant, and every compound, manufacture, salts, derivative, mixture, or preparation of such plant, its seeds or extracts. [(17)] (16) N-ethyl-3-piperidyl benzilate. [(18)] (17) N-methyl-3-piperidyl benzilate. [(19)] (18) Psilocybin. [(20)] (19) Psilocyn. [(21)] (20) 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. S. 2509--A 111 A. 3009--A [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade or other names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP. [(24)] (23) Thiophene analog of phencyclidine. Some trade or other names: 1-{1-(2-thienyl)-cyclohexyl}-piperidine, 2-thienylanalog of phencyclidine, TPCP, TCP. [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA). [(26)] (25) 3,4-methylendioxy-N-ethylamphetamine (also known as N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine, N-ethyl MDA, MDE, MDEA. [(27)] (26) N-hydroxy-3,4-methylenedioxyamphetamine (also known as N-hydroxy-alpha-methyl-3,4 (methylenedioxy) phenethylamine, and N-hydroxy MDA. [(28)] (27) 1-{1- (2-thienyl) cyclohexyl} pyrrolidine. Some other names: TCPY. [(29)] (28) Alpha-ethyltryptamine. Some trade or other names: etryptamine; Monase; Alpha-ethyl-1H-indole-3-ethanamine; 3- (2-aminobutyl) indole; Alpha-ET or AET. [(30)] (29) 2,5-dimethoxy-4-ethylamphetamine. Some trade or other names: DOET. [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade or other names: 2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane; alpha-desmethyl DOB; 2C-B, Nexus. [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its optical isomers, salts and salts of isomers. § 6. Title 5-A of article 33 of the public health law is REPEALED. § 6-a. Article 33-B of the public health law is REPEALED. § 7. Section 3382 of the public health law, as added by chapter 878 of the laws of 1972, is amended to read as follows: § 3382. Growing of the plant known as Cannabis by unlicensed persons. A person who, without being licensed so to do under this article OR ARTICLES THREE, FOUR OR FIVE OF THE CANNABIS LAW, grows the plant of the genus Cannabis or knowingly allows it to grow on his land without destroying the same, shall be guilty of a class A misdemeanor. § 8. Subdivision 1 of section 3397-b of the public health law, as added by chapter 810 of the laws of 1980, is amended to read as follows: 1. ["Marijuana"] "CANNABIS" means [marijuana] CANNABIS as defined in [section thirty-three hundred two of this chapter] SUBDIVISION THREE OF SECTION THREE OF THE CANNABIS LAW and shall also include 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 S. 2509--A 112 A. 3009--A 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, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNABINOL (THC). CANNABIS DOES NOT INCLUDE ANY DRUG PRODUCT FOR WHICH AN APPLICA- TION HAS BEEN APPROVED BY THE FEDERAL FOOD AND DRUG ADMINISTRATION. 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. Subdivision 4 of section 15.20 of the penal law, as added by chapter 75 of the laws of 1995, is amended to read as follows: 4. Notwithstanding the use of the term "knowingly" in any provision of this chapter defining an offense in which the aggregate weight of a controlled substance or [marihuana] CANNABIS is an element, knowledge by the defendant of the aggregate weight of such controlled substance or [marihuana] CANNABIS is not an element of any such offense and it is not, unless expressly so provided, a defense to a prosecution therefor that the defendant did not know the aggregate weight of the controlled substance or [marihuana] CANNABIS. § 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. S. 2509--A 113 A. 3009--A 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 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. S. 2509--A 114 A. 3009--A 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. § 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- S. 2509--A 115 A. 3009--A 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 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 (c) 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 S. 2509--A 116 A. 3009--A 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 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. S. 2509--A 117 A. 3009--A § 20-f. Subparagraph (iii) of paragraph (k) of subdivision 3 of section 160.50 of the criminal procedure law, as amended by chapter 132 of the laws of 2019, is amended to read as follows: (iii) the conviction is for an offense defined in section 221.05 [or], 221.10 OR 221.15 of the penal law. § 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] SIXTH degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the [fifth] SIXTH 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 contain- ing marihuana] ANY WEIGHT. Criminal sale of [marihuana] CANNABIS in the [fifth] SIXTH degree is a [class B misdemeanor] VIOLATION PUNISHABLE BY A FINE NOT MORE THAN THE GREATER OF TWO-HUNDRED AND FIFTY DOLLARS OR TWO TIMES THE VALUE OF THE SALE. § 22. Section 221.40 of the penal law, as added by chapter 360 of the laws of 1977, is amended to read as follows: § 221.40 Criminal sale of [marihuana] CANNABIS in the [fourth] FIFTH degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the [fourth] fifth degree when he OR SHE knowingly and unlawfully sells [marihuana except as provided in section 221.35 of this article] CANNA- BIS 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] FIFTH degree is a [class A] misdemeanor PUNISHABLE BY A FINE OF NOT MORE THAN THE GREAT- ER OF FIVE HUNDRED DOLLARS OR TWO TIMES THE VALUE OF THE SALE OR A MAXI- MUM 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] FOURTH degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the [third] FOURTH degree when he OR SHE knowingly and unlawfully sells [one or more preparations, compounds, mixtures or substances containing mari- huana 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] FOURTH 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. A NEW SECTION 221.46 IS ADDED TO THE PENAL LAW AS FOLLOWS: § 221.46 CRIMINAL SALE OF CANNABIS IN THE THIRD DEGREE. A PERSON IS GUILTY OF CRIMINAL SALE OF CANNABIS IN THE THIRD DEGREE WHEN HE KNOWING- LY AND UNLAWFULLY SELLS 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 S. 2509--A 118 A. 3009--A 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 CANNABIS IN THE THIRD DEGREE IS A CLASS A MISDE- MEANOR. § 24-A. 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.. Criminal sale of [marihuana] CANNABIS in the second degree is a class E felony. § 25. Section 221.55 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.55 Criminal sale of [marihuana] CANNABIS in the first degree. A person is guilty of criminal sale of [marihuana] CANNABIS in the first degree when he knowingly and unlawfully sells [one or more prepa- rations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of an aggregate weight of] more than [sixteen] SIXTY-FOUR ounces OF CANNABIS OR THREE HUNDRED AND TWENTY GRAMS OF CANNABIS CONCENTRATE. Criminal sale of [marihuana] CANNABIS in the first degree is a class D 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: S. 2509--A 119 A. 3009--A § 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 is amended by adding a new subparagraph (i-a) to read as follows: (I-A) A VIOLATION OF SUBDIVISION FOUR-A OF SECTION ELEVEN HUNDRED NINETY-TWO OF THIS ARTICLE SHALL BE A CLASS E FELONY, AND SHALL BE PUNISHABLE BY A FINE OF NOT LESS THAN ONE THOUSAND DOLLARS NOR MORE THAN FIVE THOUSAND DOLLARS OR BY A PERIOD OF IMPRISONMENT AS PROVIDED IN THE PENAL LAW, OR BY BOTH SUCH FINE AND IMPRISONMENT. § 33-a. 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 TEST to be admin- istered by the police officer. If such test indicates that such opera- S. 2509--A 120 A. 3009--A tor has consumed alcohol OR DRUG OR DRUGS, the police officer may request such operator to submit to a chemical test AND/OR AN EVALUATION CONDUCTED BY A DRUG RECOGNITION EXPERT in the manner set forth in subdi- vision two of this section. 2. Chemical tests AND DRUG RECOGNITION EVALUATIONS. (a) When author- ized. Any person who operates a motor vehicle in this state shall be deemed to have given consent to AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT AND/OR a chemical test of one or more of the following: breath, blood, urine, or saliva, for the purpose of determin- ing 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 officer: (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, as provided in paragraph (b) of subdivision one of this section, indicates that alcohol has been consumed by such person and in accordance 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 of this article shall be determined by viewing the totality of circum- stances 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 alco- hol consumption by the operator, the existence of an open container containing or having contained an alcoholic beverage in or around the vehicle driven by the operator, 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 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 AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT is authorized pursuant to this paragraph may be temporarily detained by the police solely for the purpose of requesting or administering such chemi- cal test AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT whenever arrest without a warrant for a petty offense would be authorized 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, BLOOD, URINE, AND/OR ORAL/BODILY FLUID test indicates the presence of alcohol AND/OR DRUG OR DRUGS in the person's system; or (C) with regard to a person under the age of twen- ty-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 S. 2509--A 121 A. 3009--A having thereafter been requested to submit to such chemical test AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT and having been informed that the person's license or permit to drive and any non-resident operating privilege shall be imme- diately 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, AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT OR ANY PORTION THEREOF, 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 there- of, AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT 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 imme- diately made by the police officer before whom such refusal was made. Such report may be verified by having the report sworn to, or by affix- ing to such report a form notice that false statements made therein are punishable 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 OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT OR ANY PORTION THEREOF, and that no chemical test OR EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT was administered pursuant to the requirements 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 subdi- vision, 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 subse- quent proceedings with regard to refusal to submit to such chemical test AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT 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, S. 2509--A 122 A. 3009--A 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) 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 AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT, would result in the immediate suspension and subsequent revocation of such person's license or operat- ing 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 chemical test or any portion thereof AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT. If, after such hearing, the hearing officer, acting on behalf of the commis- sioner, 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 hearing, 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 operating 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 consti- tute 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 AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT, 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 S. 2509--A 123 A. 3009--A arising out of the same incident, within the five years immediately preceding the date of such revocation; provided, however, a prior find- ing 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 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 AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT, 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 oper- ating a commercial motor vehicle transporting hazardous materials at the time of such refusal. However, such person shall be permanently disqual- ified from operating a commercial motor vehicle in any case where the holder has a prior finding of refusal to submit to a chemical test AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT 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 commissioner 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 OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT 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 OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT pursuant to this section; any violation of subdivision one or two of section six S. 2509--A 124 A. 3009--A hundred of this chapter; or has a prior conviction of any felony involv- ing 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. (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 AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT OR ANY PORTION THEREOF pursuant to this section while operating a commer- cial 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 paragraph (a) of subdivision one of section five hundred ten-a of this chapter, 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 pursu- ant 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 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- S. 2509--A 125 A. 3009--A 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] ORAL/BODILY FLUIDS, for the purpose of determining the alco- holic and/or drug content of the blood OR ORAL/BODILY FLUIDS 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 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 AND/or drug content of the person's blood OR ORAL/BODILY FLUIDS 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 TEST 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 AND/OR DRUG OR DRUGS 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 AND/or AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT, 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 S. 2509--A 126 A. 3009--A 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 accord- ance with the 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/OR ORAL/BODILY FLUIDS ordering the withdrawal of a blood AND/OR ORAL/BODILY FLUID sample in accordance with the provisions of paragraph (a) of subdivision four of this section. When a judge or justice determines 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 appli- cant, 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- S. 2509--A 127 A. 3009--A 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 AND/OR ORAL/BODILY FLUID must be administered. The provisions of paragraphs (a), (b) and (c) of subdivision four of this section shall be applicable to any chemical 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 BY MEANS OTHER THAN BURNING, or the possession of an open container containing an alcoholic beverage OR CANNABIS by passengers in passenger vehicles oper- ated 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 S. 2509--A 128 A. 3009--A reimbursements to which taxpayers shall be entitled under the provisions of such articles of this chapter. The commissioner and the comptroller shall maintain a system of accounts showing the amount of revenue collected or received from each of the taxes imposed by such articles. The comptroller, after reserving the amount to pay such refunds or reimbursements, shall, on or before the tenth day of each month, pay into the state treasury to the credit of the general fund all revenue deposited under this section during the preceding calendar month and remaining to the comptroller's credit on the last day of such preceding month, (i) except that the comptroller shall pay to the state department of social services that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against past-due support pursuant to subdivision six of section one hundred seventy-one-c of this article, (ii) and except that the comptroller shall pay to the New York state higher education services corporation and the state university of New York or the city university of New York respectively that amount of overpayments of tax imposed by article twenty-two of this chapter and the interest on such amount which is certified to the comptroller by the commissioner as the amount to be credited against the amount of defaults in repayment of guaranteed student loans and state university loans or city university loans pursu- ant to subdivision five of section one hundred seventy-one-d and subdi- vision six of section one hundred seventy-one-e of this article, (iii) and except further that, notwithstanding any law, the comptroller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B or thirty-three of this chapter, and any interest thereon, which is certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall cred- it to the special offset fiduciary account, pursuant to section ninety- one-c of the state finance law, any such amount creditable as a liabil- ity as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commissioner as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by article twenty-two of this chap- ter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- ty-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this 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 S. 2509--A 129 A. 3009--A arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy- one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 35. Section 490 of the tax law, as added by chapter 90 of the laws of 2014, is amended to read as follows: § 490. [Definitions] EXCISE TAX ON MEDICAL CANNABIS. 1. (a) [All definitions of terms applicable to title five-A of article thirty-three of the public health law shall apply to this article.] FOR PURPOSES OF THIS ARTICLE, THE TERMS "MEDICAL CANNABIS," "REGISTERED ORGANIZATION," "CERTIFIED PATIENT," AND "DESIGNATED CAREGIVER" SHALL HAVE THE SAME DEFINITIONS AS IN SECTION THREE OF THE CANNABIS LAW. (b) As used in this section, where not otherwise specifically defined and unless a different meaning is clearly required "gross receipt" means the amount received in or by reason of any sale, conditional or other- wise, of medical [marihuana] CANNABIS or in or by reason of the furnish- ing of medical [marihuana] CANNABIS from the sale of medical [marihuana] CANNABIS provided by a registered organization to a certified patient or designated caregiver. Gross receipt is expressed in money, whether paid in cash, credit or property of any kind or nature, and shall be deter- mined without any deduction therefrom on account of the cost of the service sold or the cost of materials, labor or services used or other costs, interest or discount paid, or any other expenses whatsoever. "Amount received" for the purpose of the definition of gross receipt, as the term gross receipt is used throughout this article, means the amount charged for the provision of medical [marihuana] CANNABIS. 2. There is hereby imposed an excise tax on the gross receipts from the sale of medical [marihuana] CANNABIS by a registered organization to a certified patient or designated caregiver, to be paid by the regis- tered organization, at the rate of seven percent. The tax imposed by this article shall be charged against and be paid by the registered organization and shall not be added as a separate charge or line item on any sales slip, invoice, receipt or other statement or memorandum of the price given to the retail customer. 3. The commissioner may make, adopt and amend rules, regulations, procedures and forms necessary for the proper administration of this article. 4. Every registered organization that makes sales of medical [marihua- na] CANNABIS subject to the tax imposed by this article shall, on or before the twentieth date of each month, file with the commissioner a return on forms to be prescribed by the commissioner, showing its receipts from the retail sale of medical [marihuana] CANNABIS during the preceding calendar month and the amount of tax due thereon. Such returns shall contain such further information as the commissioner may require. Every registered organization required to file a return under this section shall, at the time of filing such return, pay to the commission- er the total amount of tax due on its retail sales of medical [marihua- na] CANNABIS for the period covered by such return. If a return is not 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 S. 2509--A 130 A. 3009--A and regulations as he may prescribe, except that no interest shall be allowed or paid if the amount thereof would be less than one dollar. Such interest shall be at the overpayment rate set by the commissioner pursuant to subdivision twenty-sixth of section one hundred seventy-one of this chapter, or if no rate is set, at the rate of six percent per annum, from the date when the tax, penalty or interest to be refunded was paid to a date preceding the date of the refund check by not more than thirty days. Provided, however, that for the purposes of this subdivision, any tax paid before the last day prescribed for its payment shall be deemed to have been paid on such last day. Such moneys received under the provisions of this article which the commissioner shall deter- mine were paid in error, may be refunded out of funds in the custody of the comptroller to the credit of such taxes provided an application therefor is filed with the commissioner within two years from the time the erroneous payment was made. 6. The provisions of article twenty-seven of this chapter shall apply to the tax imposed by this article in the same manner and with the same force and effect as if the language of such article had been incorpo- rated in full into this section and had expressly referred to the tax imposed by this article, except to the extent that any provision of such article is either inconsistent with a provision of this article or is not relevant to this article. 7. All taxes, interest and penalties collected or received by the commissioner under this article shall be deposited and disposed of pursuant to the provisions of section one hundred seventy-one-a of this chapter, provided that an amount equal to one hundred percent collected under this article less any amount determined by the commissioner to be reserved by the comptroller for refunds or reimbursements shall be paid by the comptroller to the credit of the medical [marihuana] CANNABIS trust fund established by section eighty-nine-h of the state finance law. 8. A registered organization that dispenses medical [marihuana] CANNA- BIS shall provide to the department information on where the medical [marihuana] CANNABIS was dispensed and where the medical [marihuana] CANNABIS was manufactured. A registered organization that obtains [mari- huana] CANNABIS from another registered organization shall obtain from such registered organization information on where the medical [marihua- na] CANNABIS was manufactured. § 36. Section 491 of the tax law, as added by chapter 90 of the laws of 2014, subdivision 1 as amended by section 1 of part II of chapter 60 of the laws of 2016, is amended to read as follows: § 491. Returns to be secret. 1. Except in accordance with proper judi- cial order or as in this section or otherwise provided by law, it shall be unlawful for the commissioner, any officer or employee of the depart- ment, or any officer or person who, pursuant to this section, is permit- ted to inspect any return or report or to whom a copy, an abstract or a portion of any return or report is furnished, or to whom any information contained in any return or report is furnished, or any person engaged or retained by such department on an independent contract basis or any person who in any manner may acquire knowledge of the contents of a return or report filed pursuant to this article to divulge or make known 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 S. 2509--A 131 A. 3009--A proceeding in any court, except on behalf of the state, [the state department of health] OFFICE OF CANNABIS MANAGEMENT, or the commissioner in an action or proceeding under the provisions of this chapter or on behalf of the state or the commissioner in any other action or proceed- ing involving the collection of a tax due under this chapter to which the state or the commissioner is a party or a claimant or on behalf of any party to any action or proceeding under the provisions of this arti- cle, when the returns or the reports or the facts shown thereby are directly involved in such action or proceeding, or in an action or proceeding relating to the regulation or taxation of medical [marihuana] CANNABIS on behalf of officers to whom information shall have been supplied as provided in subdivision two of this section, in any of which events the court may require the production of, and may admit in evidence so much of said returns or reports or of the facts shown there- by as are pertinent to the action or proceeding and no more. Nothing herein shall be construed to prohibit the commissioner, in his or her discretion, from allowing the inspection or delivery of a certified copy of any return or report filed under this article or of any information contained in any such return or report by or to a duly authorized offi- cer or employee of the [state department of health] OFFICE OF CANNABIS MANAGEMENT; or by or to the attorney general or other legal represen- tatives of the state when an action shall have been recommended or commenced pursuant to this chapter in which such returns or reports or the facts shown thereby are directly involved; or the inspection of the returns or reports required under this article by the comptroller or duly designated officer or employee of the state department of audit and control, for purposes of the audit of a refund of any tax paid by a registered organization or other person under this article; nor to prohibit the delivery to a registered organization, or a duly authorized representative of such registered organization, a certified copy of any return or report filed by such registered organization pursuant to this article, nor to prohibit the publication of statistics so classified as to prevent the identification of particular returns or reports and the items thereof. This section shall also not be construed to prohibit the disclosure, for tax administration purposes, to the division of the budget and the office of the state comptroller, of information aggre- gated from the returns filed by all the registered organizations making sales of, or manufacturing, medical [marihuana] CANNABIS in a specified county, whether the number of such registered organizations is one or more. Provided further that, notwithstanding the provisions of this subdivision, the commissioner may, in his or her discretion, permit the proper officer of any county entitled to receive an allocation, follow- ing appropriation by the legislature, pursuant to this article and section eighty-nine-h of the state finance law, or the authorized repre- sentative of such officer, to inspect any return filed under this arti- cle, or may furnish to such officer or the officer's authorized repre- sentative an abstract of any such return or supply such officer or such representative with information concerning an item contained in any such return, or disclosed by any investigation of tax liability under this article. 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 S. 2509--A 132 A. 3009--A 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. 496-C. ILLICIT CANNABIS PENALTY. § 492. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING DEFI- NITIONS SHALL APPLY: (A) "ADULT-USE CANNABIS PRODUCT" OR "ADULT-USE CANNABIS" HAS THE SAME MEANING AS THE TERM IS DEFINED IN SECTION THREE OF THE CANNABIS LAW. FOR PURPOSES OF THIS ARTICLE, UNDER NO CIRCUMSTANCES SHALL ADULT-USE CANNA- BIS PRODUCT INCLUDE MEDICAL CANNABIS OR CANNABINOID HEMP PRODUCT AS DEFINED IN SECTION THREE OF THE CANNABIS LAW. (B) "CANNABIS" MEANS ALL PARTS OF THE 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 CANNABI- NOID HEMP PRODUCT AS DEFINED IN SECTION THREE OF THE CANNABIS LAW. (C) "CANNABIS EDIBLE PRODUCT" MEANS A PRODUCT, CONTAINING EITHER CANNABIS OR CONCENTRATED CANNABIS AND OTHER INGREDIENTS, INTENDED FOR USE OR CONSUMPTION THROUGH INGESTION, INCLUDING SUBLINGUAL OR ORAL ABSORPTION. S. 2509--A 133 A. 3009--A (D) "CANNABIS FLOWER" MEANS THE FLOWER OF A PLANT OF THE GENUS CANNA- BIS THAT HAS BEEN HARVESTED, DRIED AND CURED BUT HAS NOT UNDERGONE ANY PROCESSING WHEREBY THE PLANT MATERIAL IS TRANSFORMED INTO A CONCENTRATE, INCLUDING, BUT NOT LIMITED TO, CONCENTRATED CANNABIS, OR INTO AN EDIBLE OR TOPICAL PRODUCT CONTAINING CANNABIS OR CONCENTRATED CANNABIS AND OTHER INGREDIENTS. CANNABIS FLOWER EXCLUDES LEAVES AND STEM. (E) "CONCENTRATED CANNABIS" HAS THE SAME MEANING AS THE TERM IS DEFINED IN SECTION THREE OF THE CANNABIS LAW. (F) "DISTRIBUTOR" HAS THE SAME MEANING AS THE TERM IS DEFINED IN SECTION THREE OF THE CANNABIS LAW. (G) "ILLICIT CANNABIS" MEANS AND INCLUDES CANNABIS FLOWER, CONCEN- TRATED CANNABIS, CANNABIS EDIBLE PRODUCT AND CANNABIS PLANT ON WHICH ANY TAX REQUIRED TO HAVE BEEN PAID UNDER THIS CHAPTER HAS NOT BEEN PAID, OR THE FORM, PACKAGING, OR CONTENT OF WHICH IS NOT PERMITTED BY THE OFFICE OF CANNABIS MANAGEMENT, AS APPLICABLE. (H) "CANNABIS PLANT" MEANS CANNABIS THAT HAS NOT BEEN HARVESTED, OR UNDERGONE PROCESSING, DRYING OR CURING. (I) "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. (J) "SALE" MEANS ANY TRANSFER OF TITLE, POSSESSION OR BOTH, EXCHANGE OR BARTER, RENTAL, LEASE OR LICENSE TO USE OR CONSUME, CONDITIONAL, OR OTHERWISE, IN ANY MANNER OR BY ANY MEANS WHATSOEVER FOR A CONSIDERATION OR ANY AGREEMENT THEREFOR. (K) "TOTAL THC" HAS THE SAME MEANING AS THE TERM DEFINED IN SECTION THREE OF THE CANNABIS LAW. § 493. IMPOSITION OF TAX. (A) THERE IS HEREBY IMPOSED A TAX ON ADULT-USE CANNABIS PRODUCTS SOLD BY A DISTRIBUTOR TO A PERSON WHO SELLS ADULT-USE CANNABIS PRODUCTS AT RETAIL AT THE FOLLOWING RATES: (1) CANNABIS FLOWER AT THE RATE OF SEVEN TENTHS OF ONE CENT PER MILLI- GRAM OF THE AMOUNT OF TOTAL THC, AS REFLECTED ON THE PRODUCT LABEL; (2) CONCENTRATED CANNABIS AT THE RATE OF ONE CENT PER MILLIGRAM OF THE AMOUNT OF TOTAL THC, AS REFLECTED ON THE PRODUCT LABEL; AND (3) CANNABIS EDIBLE PRODUCT AT THE RATE OF FOUR CENTS PER MILLIGRAM OF THE AMOUNT OF TOTAL THC, AS REFLECTED ON THE PRODUCT LABEL. THIS TAX SHALL ACCRUE AT THE TIME OF SUCH SALE OR TRANSFER. WHERE A PERSON WHO DISTRIBUTES ADULT-USE CANNABIS IS LICENSED UNDER THE CANNABIS LAW AS A MICROBUSINESS, COOPERATIVE OR REGISTERED ORGANIZATION, SUCH PERSON SHALL BE LIABLE FOR THE TAX, AND SUCH TAX SHALL ACCRUE AT THE TIME OF THE RETAIL SALE. (B) IN ADDITION TO ANY OTHER TAX IMPOSED BY THIS CHAPTER OR OTHER LAW, THERE IS HEREBY IMPOSED A TAX OF TEN AND ONE-QUARTER PERCENT ON RECEIPTS FROM THE RETAIL SALE OF ADULT-USE CANNABIS PRODUCTS SOLD IN THIS STATE. THE TAX IS IMPOSED ON THE RETAIL CUSTOMER AND SHALL BE COLLECTED AT THE TIME OF THE RETAIL SALE BY THE PERSON WHO SELLS ADULT-USE CANNABIS PRODUCTS AT RETAIL, IN TRUST FOR AND ON ACCOUNT OF THE STATE. (C) THE TAXES IMPOSED IN SUBDIVISIONS (A) AND (B) OF THIS SECTION SHALL NOT APPLY TO SALES OF ADULT-USE CANNABIS TO A PERSON HOLDING A CANNABIS RESEARCH LICENSE UNDER SECTION THIRTY-NINE OF THE CANNABIS LAW. § 494. REGISTRATION AND RENEWAL. (A) (I) EVERY DISTRIBUTOR ON WHOM TAX IS IMPOSED UNDER THIS ARTICLE AND EVERY PERSON WHO SELLS ADULT-USE CANNABIS PRODUCTS AT RETAIL MUST FILE WITH THE COMMISSIONER A PROPERLY COMPLETED APPLICATION FOR A CERTIFICATE OF REGISTRATION BEFORE ENGAGING IN BUSINESS. AN APPLICATION FOR A CERTIFICATE OF REGISTRATION MUST BE S. 2509--A 134 A. 3009--A SUBMITTED ELECTRONICALLY, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND MUST BE ACCOMPANIED BY A NON-REFUNDABLE APPLICATION FEE OF SIX HUNDRED DOLLARS. A CERTIFICATE OF REGISTRATION SHALL NOT BE ASSIGNABLE OR TRANS- FERABLE 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. (II) PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL REFUND OR CREDIT AN APPLICATION FEE PAID WITH RESPECT TO THE REGISTRATION OF AN ADULT-USE CANNABIS BUSINESS IN THIS STATE IF, PRIOR TO THE BEGINNING OF THE PERIOD WITH RESPECT TO WHICH SUCH REGISTRATION RELATES, THE CERTIFICATE OF REGISTRATION DESCRIBED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH IS RETURNED TO THE DEPARTMENT OR, IF SUCH CERTIFICATE HAS BEEN DESTROYED, THE OPERA- TOR OF SUCH BUSINESS SATISFACTORILY ACCOUNTS TO THE COMMISSIONER FOR THE MISSING CERTIFICATE, BUT SUCH BUSINESS MAY NOT SELL ADULT-USE CANNABIS PRODUCTS IN THIS STATE DURING SUCH PERIOD, UNLESS IT IS RE-REGISTERED. 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. (B) (1) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGIS- TRATION TO ANY APPLICANT AND SHALL REVOKE THE CERTIFICATE OF REGISTRA- TION OF ANY SUCH PERSON WHO DOES NOT POSSESS A VALID LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT OR A VALID CERTIFICATE OF AUTHORITY ISSUED PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER. THE COMMISSIONER MAY REFUSE TO ISSUE A CERTIFICATE OF REGISTRATION TO ANY APPLICANT WHERE SUCH APPLICANT: (I) HAS A PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V OF THIS CHAPTER; (II) HAS HAD A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE, A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT, OR ANY LICENSE OR REGIS- TRATION PROVIDED FOR IN THIS CHAPTER REVOKED OR SUSPENDED WHERE SUCH REVOCATION OR SUSPENSION WAS IN EFFECT ON THE DATE THE APPLICATION WAS FILED OR ENDED WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (III) HAS BEEN CONVICTED OF A CRIME PROVIDED FOR IN THIS CHAPTER WITH- IN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED OR THE CERTIFICATE WAS ISSUED, AS APPLICABLE; (IV) WILLFULLY FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS ARTI- CLE; (V) 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 (VI) WILLFULLY FAILS TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS ARTICLE. (2) IN ADDITION TO THE GROUNDS FOR REVOCATION IN PARAGRAPH (1) OF THIS SUBDIVISION, WHERE A PERSON WHO HOLDS A CERTIFICATE OF REGISTRATION IS A PERSON WHO HAS POSSESSED OR SOLD ILLICIT CANNABIS: (1) SUCH REGISTRATION SHALL BE REVOKED FOR A PERIOD OF ONE YEAR FOR THE FIRST SUCH POSSESSION OR SALE; (2) FOR A SECOND SUCH POSSESSION OR SALE WITHIN A PERIOD OF FIVE YEARS BY SUCH PERSON, THE REGISTRATION OF SUCH PERSON SHALL BE REVOKED FOR A PERIOD OF THREE YEARS; (3) FOR A THIRD SUCH POSSESSION OR SALE WITHIN A PERIOD OF FIVE YEARS BY SUCH PERSON, THE REGISTRATION OF SUCH PERSON SHALL BE REVOKED FOR A PERIOD OF FIVE YEARS. A CERTIFICATE OF REGISTRATION SHALL BE REVOKED PURSUANT TO THIS PARAGRAPH IMMEDIATELY UPON SUCH PERSON'S RECEIPT OF WRITTEN NOTICE OF REVOCATION FROM THE COMMISSIONER. S. 2509--A 135 A. 3009--A (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. (A)(I) EVERY DISTRIBUTOR ON WHOM TAX IS IMPOSED UNDER THIS ARTICLE SHALL, ON OR BEFORE THE TWENTIETH DATE OF EACH MONTH, FILE ELECTRONICALLY WITH THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER, SHOWING THE TOTAL THC CONTENT OF ADULT-USE CANNABIS PRODUCTS SUBJECT TO TAX PURSUANT TO SUBDI- VISION (A) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE AND THE TOTAL AMOUNT OF TAX DUE THEREON IN THE PRECEDING CALENDAR MONTH, ALONG WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE. (II) EVERY PERSON WHO SELLS ADULT-USE CANNABIS PRODUCTS TO RETAIL CUSTOMERS SHALL FILE ELECTRONICALLY WITH THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER, SHOWING THE TOTAL AMOUNT OF TAX DUE UNDER SUBDIVISION (B) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE, ALONG WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE. (B) EVERY PERSON REQUIRED TO FILE A RETURN UNDER THIS SECTION SHALL, AT THE TIME OF FILING SUCH RETURN, PAY ELECTRONICALLY TO THE COMMISSION- ER 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 DISTRIBUTOR ON WHOM TAX IS IMPOSED UNDER THIS ARTICLE AND EVERY PERSON WHO SELLS ADULT-USE CANNABIS PRODUCTS AT RETAIL SHALL MAINTAIN COMPLETE AND ACCURATE RECORDS IN SUCH FORM AS THE COMMISSIONER MAY REQUIRE INCLUDING, BUT NOT LIMITED TO, SUCH ITEMS AS THE TOTAL THC CONTENT OF THE ADULT-USE CANNABIS PRODUCTS SOLD TO OR PRODUCED BY SUCH PERSON; COMPLETE RECORDS OF EVERY RETAIL SALE OF ADULT-USE CANNABIS, AND ANY OTHER RECORD OR INFORMATION REQUIRED BY THE COMMISSIONER. 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 COMMIS- SIONER UPON REQUEST. (B) PENALTIES. IN ADDITION TO ANY OTHER PENALTY PROVIDED IN THIS ARTI- CLE OR OTHERWISE IMPOSED BY LAW, EVERY DISTRIBUTOR ON WHOM TAX IS IMPOSED UNDER THIS ARTICLE AND EVERY PERSON WHO SELLS ADULT-USE CANNABIS S. 2509--A 136 A. 3009--A PRODUCTS AT RETAIL 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 EACH MONTH OR PART THEREOF 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 PRECED- 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 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 COURT 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 ANY PERSON UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO SUCH PERSON OR A DULY AUTHORIZED REPRESENTATIVE OF SUCH PERSON, A CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH PERSON PURSUANT TO THIS ARTICLE, NOR TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS AND THE ITEMS THERE- OF. THIS SECTION SHALL ALSO NOT BE CONSTRUED TO PROHIBIT THE DISCLOSURE, FOR TAX ADMINISTRATION PURPOSES, TO THE DIVISION OF THE BUDGET AND THE OFFICE OF THE STATE COMPTROLLER, OF INFORMATION AGGREGATED FROM THE RETURNS FILED BY ALL PERSONS SUBJECT TO THE TAXES IMPOSED BY THE ARTI- CLE, WHETHER THE NUMBER OF SUCH PERSONS IS ONE OR MORE. S. 2509--A 137 A. 3009--A (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 THEIR DULY AUTHORIZED REPRE- SENTATIVES OF ANY SUCH OFFICERS, UNLESS SUCH OFFICER OR OTHER REPRESEN- 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 OFFICER OR OTHER REPRESENTATIVES. (C)(1) 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. (2) FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER. § 496-B. ADMINISTRATIVE PROVISIONS. (A)(1) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE TAX IMPOSED BY SUBDIVI- SION (A) OF SECTION FOUR HUNDRED NINETY-THREE OF 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. (2) THE TAX IMPOSED BY SUBDIVISION (B) OF SECTION FOUR HUNDRED NINE- TY-THREE OF THIS ARTICLE SHALL BE ADMINISTERED AND COLLECTED IN A LIKE MANNER AS AND JOINTLY WITH THE TAXES IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS CHAPTER. IN ADDITION, EXCEPT AS OTHERWISE PROVIDED IN THIS ARTICLE, ALL OF THE PROVISIONS OF ARTICLE TWENTY-EIGHT OF THIS CHAPTER (EXCEPT SECTIONS ELEVEN HUNDRED SEVEN, ELEVEN HUNDRED EIGHT, ELEVEN HUNDRED NINE, AND ELEVEN HUNDRED FORTY- EIGHT) RELATING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION AND REVIEW OF THE TAXES IMPOSED BY SUCH SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN, INCLUDING, BUT NOT LIMITED TO, THE PROVISIONS RELAT- ING TO DEFINITIONS, RETURNS, EXEMPTIONS, PENALTIES, PERSONAL LIABILITY FOR THE TAX, AND COLLECTION OF TAX FROM THE CUSTOMER, SHALL APPLY TO THE TAXES IMPOSED BY THIS ARTICLE SO FAR AS SUCH PROVISIONS CAN BE MADE APPLICABLE TO THE TAXES IMPOSED BY THIS ARTICLE WITH SUCH LIMITATIONS AS SET FORTH IN FULL IN THIS ARTICLE AND SUCH MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT SUCH LANGUAGE TO THE TAXES SO IMPOSED. SUCH PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THE TAXES IMPOSED BY THIS ARTICLE. (B)(1) ALL TAXES, INTEREST, AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTICLE SHALL BE DEPOSITED AND DISPOSED OF S. 2509--A 138 A. 3009--A 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-II 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. § 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 FLOWER, TEN DOLLARS PER MILLIGRAM OF THE TOTAL WEIGHT OF ANY ILLICIT CANNABIS EDIBLE PRODUCT, ONE HUNDRED DOLLARS PER GRAM OF THE TOTAL WEIGHT OF ANY PRODUCT CONTAINING ILLICIT CANNABIS CONCENTRATE, AND ONE THOUSAND DOLLARS PER ILLICIT CANNABIS PLANT, BUT NOT TO EXCEED EIGHT HUNDRED DOLLARS PER OUNCE OF ILLICIT CANNABIS FLOWER, TWENTY DOLLARS PER MILLIGRAM OF THE TOTAL WEIGHT OF ANY ILLICIT CANNABIS EDIBLE PRODUCT, TWO HUNDRED DOLLARS PER GRAM OF THE TOTAL WEIGHT OF ANY PRODUCT CONTAINING ILLICIT CANNABIS CONCENTRATE, AND TWO THOUSAND DOLLARS PER ILLICIT CANNABIS PLANT FOR A FIRST VIOLATION, AND FOR A SECOND AND 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 FLOWER, TWENTY DOLLARS PER MILLIGRAM OF THE TOTAL WEIGHT OF ANY ILLICIT CANNABIS EDIBLE PRODUCT, TWO HUNDRED DOLLARS PER GRAM OF THE TOTAL WEIGHT OF ANY PRODUCT CONTAINING ILLICIT CANNABIS CONCENTRATE, AND TWO THOUSAND DOLLARS PER ILLICIT CANNABIS PLANT, BUT NOT TO EXCEED ONE THOUSAND DOLLARS PER OUNCE OF ILLICIT CANNABIS FLOWER, FORTY DOLLARS PER MILLIGRAM OF THE TOTAL WEIGHT OF ANY ILLICIT CANNABIS EDIBLE PRODUCT, FOUR HUNDRED DOLLARS PER GRAM OF THE TOTAL WEIGHT OF ANY PRODUCT CONTAINING ILLICIT CANNABIS CONCENTRATE, AND FOUR THOUSAND DOLLARS PER ILLICIT 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. (C) THE PENALTY IMPOSED BY THIS SECTION SHALL NOT APPLY TO PERSONS IN POSSESSION OF LESS THAN TWO OUNCES OF ADULT-USE CANNABIS OR TEN GRAMS OF CONCENTRATED CANNABIS. § 38. Subparagraph (A) of paragraph 1 of subdivision (a) of section 1115 of the tax law, as amended by section 1 of part CCC of chapter 59 of the laws of 2019, is amended to read as follows: (A) Food, food products, beverages, dietary foods and health supple- ments, sold for human consumption but not including (i) candy and confectionery, (ii) fruit drinks which contain less than seventy percent of natural fruit juice, (iii) soft drinks, sodas and beverages such as are ordinarily dispensed at soda fountains or in connection therewith (other than coffee, tea and cocoa) [and], (iv) beer, wine or other alco- holic beverages, AND (V) ADULT-USE CANNABIS PRODUCTS AS DEFINED IN ARTI- S. 2509--A 139 A. 3009--A CLE TWENTY-C OF THIS CHAPTER, all of which shall be subject to the retail sales and compensating use taxes, whether or not the item is sold in liquid form. Nothing in this subparagraph shall be construed as exempting food or drink from the tax imposed under subdivision (d) of section eleven hundred five of this article. § 39. Intentionally omitted. § 39-a. Paragraph 3 of subdivision (a) of section 1115 of the tax law, as amended by chapter 201 of the laws of 1976, is amended to read as follows: (3) Drugs and medicines intended for use, internally or externally, in the cure, mitigation, treatment or prevention of illnesses or diseases in human beings, medical equipment (including component parts thereof) and supplies required for such use or to correct or alleviate physical incapacity, and products consumed by humans for the preservation of health but not including: (I) cosmetics or toilet articles notwithstand- ing the presence of medicinal ingredients therein [or]; (II) medical equipment (including component parts thereof) and supplies, other than such drugs and medicines, purchased at retail for use in performing medical and similar services for compensation; AND (III) ADULT-USE CANNABIS PRODUCTS, AS DEFINED BY ARTICLE TWENTY-C OF THIS CHAPTER. § 39-b. Section 471 of the tax law is amended by adding a new subdivi- sion 7 to read as follows: 7. THE TAXES IMPOSED UNDER THIS SECTION SHALL NOT APPLY TO ADULT-USE CANNABIS PRODUCTS SUBJECT TO TAX UNDER ARTICLE TWENTY-C OF THIS CHAPTER. § 39-c. Section 1181 of the tax law, as added by section 1 of part UU of chapter 59 of the laws of 2019, is amended to read as follows: § 1181. Imposition of tax. In addition to any other tax imposed by this chapter or other law, there is hereby imposed a tax of twenty percent on receipts from the retail sale of vapor products sold in this state. The tax is imposed on the purchaser and collected by the vapor products dealer as defined in subdivision (b) of section eleven hundred eighty of this article, in trust for and on account of the state. THE TAXES IMPOSED UNDER THIS SECTION SHALL NOT APPLY TO ADULT-USE CANNABIS PRODUCTS SUBJECT TO TAX UNDER ARTICLE TWENTY-C OF THIS CHAPTER. § 39-d. Subdivision (b) of section 1116 of the tax law is amended by adding a new paragraph 8 to read as follows: 8. NOTHING IN THIS SECTION SHALL EXEMPT PURCHASES OR SALES OF ADULT- USE CANNABIS PRODUCTS, AS DEFINED BY ARTICLE TWENTY-C OF THIS CHAPTER, BY AN ORGANIZATION DESCRIBED IN PARAGRAPHS FOUR, FIVE, SEVEN, EIGHT, AND NINE OF SUBDIVISION (A) OF THIS SECTION. § 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] FOURTEEN years after such date; provided that SECTIONS 490 AND 491 OF THE TAX LAW SHALL EXPIRE AND BE DEEMED REPEALED FOURTEEN YEARS AFTER SUCH DATE AND 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 S. 2509--A 140 A. 3009--A and repeal of such section and shall expire and be deemed repealed ther- ewith. § 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 president of the senate and the speaker of the assembly, no later than October 1, 2024. § 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 S. 2509--A 141 A. 3009--A conduct indicate that such person's criminal possession, sale or conspiracy to sell such substance was not an isolated occurrence and was part of an ongoing pattern of criminal activity from which such person derived substantial income or resources and in which such person played a leadership role. § 44. Paragraph (g) of subdivision 1 of section 488 of the social services law, as added by section 1 of part B of chapter 501 of the laws of 2012, is amended to read as follows: (g) "Unlawful use or administration of a controlled substance," which shall mean any administration by a custodian to a service recipient of: a controlled substance as defined by article thirty-three of the public health law, without a prescription; or other medication not approved for any use by the federal food and drug administration, EXCEPT FOR THE ADMINISTRATION OF MEDICAL CANNABIS WHEN SUCH ADMINISTRATION IS IN ACCORDANCE WITH ARTICLE THREE OF THE CANNABIS LAW AND ANY REGULATIONS PROMULGATED THEREUNDER AS WELL AS THE RULES, REGULATIONS, POLICIES, OR PROCEDURES OF THE STATE OVERSIGHT AGENCY OR AGENCIES GOVERNING SUCH CUSTODIANS. It also shall include a custodian unlawfully using or distributing a controlled substance as defined by article thirty-three of the public health law, at the workplace or while on duty. § 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: S. 2509--A 142 A. 3009--A (e) information regarding individual reportable incidents, incident patterns and trends, and patterns and trends in the reporting and response to reportable incidents is shared, consistent with applicable law, with the justice center, in the form and manner required by the justice center and, for facilities or provider agencies that are not state operated, with the applicable state oversight agency which shall provide such information to the justice center; [and] (f) incident review committees are established; provided, however, that the regulations may authorize an exemption from this requirement, when appropriate, based on the size of the facility or provider agency or other relevant factors. Such committees shall be composed of members of the governing body of the facility or provider agency and other persons identified by the director of the facility or provider agency, including some members of the following: direct support staff, licensed health care practitioners, service recipients and representatives of family, consumer and other advocacy organizations, but not the director of the facility or provider agency. Such committee shall meet regularly to: (i) review the timeliness, thoroughness and appropriateness of the facility or provider agency's responses to reportable incidents; (ii) recommend additional opportunities for improvement to the director of the facility or provider agency, if appropriate; (iii) review incident trends and patterns concerning reportable incidents; and (iv) make recommendations to the director of the facility or provider agency to assist in reducing reportable incidents. Members of the committee shall be trained in confidentiality laws and regulations, and shall comply with section seventy-four of the public officers law[.]; AND (G) SAFE STORAGE, ADMINISTRATION, AND DIVERSION PREVENTION POLICIES REGARDING CONTROLLED SUBSTANCES AND MEDICAL 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 S. 2509--A 143 A. 3009--A is defined in [subdivision twelve of section thirty-three hundred sixty of the public health law] SECTION THREE OF THE CANNABIS LAW, who issues a certification with knowledge of reasonable grounds to know that (i) the recipient has no medical need for it, or (ii) it is for a purpose other than to treat a serious condition as defined in [subdivision seven of section thirty-three hundred sixty of the public health law] SECTION THREE OF THE CANNABIS LAW. Criminal diversion of medical [marihuana] CANNABIS in the first degree is a class E felony. § 179.11 Criminal diversion of medical [marihuana] CANNABIS in the second degree. A person is guilty of criminal diversion of medical [marihuana] CANNA- BIS in the second degree when he or she sells, trades, delivers, or otherwise provides medical [marihuana] CANNABIS to another with know- ledge or reasonable grounds to know that the recipient is not registered under [title five-A of article thirty-three of the public health law] ARTICLE THREE OF THE CANNABIS LAW. Criminal diversion of medical [marihuana] CANNABIS in the second degree is a class B misdemeanor. § 179.15 Criminal retention of medical [marihuana] CANNABIS. A person is guilty of criminal retention of medical [marihuana] CANNA- BIS when, being a certified patient or designated caregiver, as those terms are defined in [subdivisions three and five of section thirty- three hundred sixty of the public health law, respectively] SECTION THREE OF THE CANNABIS LAW, he or she knowingly obtains, possesses, stores or maintains an amount of [marihuana] CANNABIS in excess of the amount he or she is authorized to possess under the provisions of [title five-A of article thirty-three of the public health law] ARTICLE THREE OF THE CANNABIS LAW. Criminal retention of medical [marihuana] CANNABIS is a class A misde- meanor. § 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 S. 2509--A 144 A. 3009--A control law, or for possession of drug paraphernalia under article thir- ty-nine of the general business law, with respect to any substance, [marihuana] CANNABIS, alcohol or paraphernalia that was obtained as a result of such seeking or receiving of health care. 3. Definitions. As used in this section the following terms shall have the following meanings: (a) "Drug or alcohol overdose" or "overdose" means an acute condition including, but not limited to, physical illness, coma, mania, hysteria or death, which is the result of consumption or use of a controlled substance or alcohol and relates to an adverse reaction to or the quan- tity of the controlled substance or alcohol or a substance with which the controlled substance or alcohol was combined; provided that a patient's condition shall be deemed to be a drug or alcohol overdose if a prudent layperson, possessing an average knowledge of medicine and health, could reasonably believe that the condition is in fact a drug or alcohol overdose and (except as to death) requires health care. (b) "Health care" means the professional services provided to a person experiencing a drug or alcohol overdose by a health care professional licensed, registered or certified under title eight of the education law or article thirty of the public health law who, acting within his or her lawful scope of practice, may provide diagnosis, treatment or emergency services for a person experiencing a drug or alcohol overdose. 4. It shall be an affirmative defense to a criminal sale controlled substance offense under this article or a criminal sale of [marihuana] CANNABIS offense under article two hundred twenty-one of this title, not covered by subdivision one or two of this section, with respect to any controlled substance or [marihuana] CANNABIS which was obtained as a result of such seeking or receiving of health care, that: (a) the defendant, in good faith, seeks health care for someone or for him or herself who is experiencing a drug or alcohol overdose or other life threatening medical emergency; and (b) the defendant has no prior conviction for the commission or attempted commission of a class A-I, A-II or B felony under this arti- cle. 5. Nothing in this section shall be construed to bar the admissibility of any evidence in connection with the investigation and prosecution of a crime with regard to another defendant who does not independently qualify for the bar to prosecution or for the affirmative defense; nor with regard to other crimes committed by a person who otherwise quali- fies under this section; nor shall anything in this section be construed to bar any seizure pursuant to law, including but not limited to pursu- ant to section thirty-three hundred eighty-seven of the public health law. 6. The bar to prosecution described in subdivisions one and two of this section shall not apply to the prosecution of a class A-I felony under this article, and the affirmative defense described in subdivision four of this section shall not apply to the prosecution of a class A-I or A-II felony under this article. § 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- S. 2509--A 145 A. 3009--A ty-one of this chapter] PART is maintained or conducted, and he knows or has reason to know that such activity is being maintained or conducted; or § 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. 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[.]; AND (E) FORTY-FIVE PERCENT OF THE MONIES SHALL BE TRANSFERRED TO THE NEW YORK STATE CANNABIS REVENUE FUND. 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-ii to read as follows: § 99-II. 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. S. 2509--A 146 A. 3009--A 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. SUCH MONIES SHALL FIRST BE ALLOCATED TO THE "CANNABIS SOCIAL EQUITY FUND" ESTABLISHED PURSUANT TO A CHAPTER OF THE LAWS OF TWO THOU- SAND TWENTY-ONE THAT ESTABLISHED SUCH FUND, ACCORDING TO THE FOLLOWING SCHEDULE: TEN MILLION DOLLARS IN FISCAL YEAR TWO THOUSAND TWENTY-TWO-- TWO THOUSAND TWENTY-THREE; TWENTY MILLION DOLLARS IN FISCAL YEAR TWO THOUSAND TWENTY-THREE--TWO THOUSAND TWENTY-FOUR; THIRTY MILLION DOLLARS IN FISCAL YEAR TWO THOUSAND TWENTY-FOUR--TWO THOUSAND TWENTY-FIVE; FORTY MILLION DOLLARS IN FISCAL YEAR TWO THOUSAND TWENTY-FIVE--TWO THOUSAND TWENTY-SIX; AND FIFTY MILLION DOLLARS IN EACH FISCAL YEAR THEREAFTER. ALL REMAINING MONIES SHALL BE EXPENDED FOR THE FOLLOWING PURPOSES: ADMINISTRATION OF THE REGULATED CANNABIS PROGRAM, DATA GATHERING, MONI- TORING AND REPORTING, THE GOVERNOR'S TRAFFIC SAFETY COMMITTEE, IMPLEMEN- TATION 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 CANNABIS USES AND APPLI- CATIONS, 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 BUDGET. 5.THE MONEYS IN THE "CANNABIS SOCIAL EQUITY FUND" SHALL BE ADMINIS- TERED BY THE URBAN DEVELOPMENT CORPORATION AND ALLOCATED BY THE DEPART- MENT OF STATE IN COLLABORATION WITH THE OFFICE OF CHILDREN AND FAMILY SERVICES, THE DEPARTMENT OF LABOR, THE DEPARTMENT OF HEALTH, THE DIVI- SION OF HOUSING AND COMMUNITY RENEWAL, AND THE OFFICE OF ADDICTION SERVICES, AND APPROVED BY THE DIRECTOR OF THE DIVISION OF THE BUDGET, TO PROVIDE GRANTS FOR QUALIFIED COMMUNITY-BASED NONPROFIT ORGANIZATIONS AND APPROVED LOCAL GOVERNMENT ENTITIES FOR THE PURPOSE OF REINVESTING IN COMMUNITIES DISPROPORTIONATELY AFFECTED BY PAST FEDERAL AND STATE DRUG POLICIES. SUCH GRANTS SHALL BE USED, INCLUDING BUT NOT LIMITED TO, TO SUPPORT JOB PLACEMENT, JOB SKILLS SERVICES, ADULT EDUCATION, MENTAL HEALTH TREATMENT, SUBSTANCE USE DISORDER TREATMENT, HOUSING, FINANCIAL LITERACY, COMMUNITY BANKING, NUTRITION SERVICES, SERVICES TO ADDRESS ADVERSE CHILDHOOD EXPERIENCES, AFTERSCHOOL AND CHILD CARE SERVICES, SYSTEM NAVIGATION SERVICES, LEGAL SERVICES TO ADDRESS BARRIERS TO REENTRY, INCLUDING, BUT NOT LIMITED TO, PROVIDING REPRESENTATION AND RELATED ASSISTANCE WITH EXPUNGEMENT, VACATUR, SUBSTITUTION AND RESEN- TENCING OF MARIHUANA-RELATED CONVICTIONS, AND LINKAGES TO MEDICAL CARE, WOMEN'S HEALTH SERVICES AND OTHER COMMUNITY-BASED SUPPORTIVE SERVICES. THE GRANTS FROM THIS PROGRAM MAY ALSO BE USED TO FURTHER SUPPORT THE SOCIAL AND ECONOMIC EQUITY PROGRAM CREATED BY ARTICLE FOUR OF THE CANNA- BIS LAW AND AS ESTABLISHED BY THE CANNABIS CONTROL BOARD. § 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: S. 2509--A 147 A. 3009--A (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: 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- S. 2509--A 148 A. 3009--A 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. 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 S. 2509--A 149 A. 3009--A 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 PERSON 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 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 "RECLASSI- FIED") 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- 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 S. 2509--A 150 A. 3009--A 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- 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 S. 2509--A 151 A. 3009--A 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 and cannabinoid hemp, 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, determi- nations 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) the taxes imposed by section thirty-seven of this act shall apply on and after March 1, 2022 to: (1) the sale of adult-use cannabis products from a distributor to the person who sells adult-use cannabis at retail; and (2) the sale of adult-use cannabis products by a person who sells such products at retail; (ii) 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; (iii) 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; (iv) 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; S. 2509--A 152 A. 3009--A (v) 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; (vi) 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 (vii) the amendments to subdivision 5 of section 410.91 of the crimi- nal 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. ! PART I Section 1. Subdivision (c) of section 1101 of the tax law, as added by chapter 93 of the laws of 1965, paragraphs 2, 3, 4 and 6 as amended by section 2 and paragraph 8 as added by section 3 of part AA of chapter 57 of the laws of 2010, and paragraph 5 as amended by chapter 575 of the laws of 1965, is amended to read as follows: (c) When used in this article for the purposes of the tax imposed under subdivision (e) of section eleven hundred five OF THIS ARTICLE, the following terms shall mean: (1) Hotel. A building or portion of it which is regularly used and kept open as such for the lodging of guests. The term "hotel" includes an apartment hotel, a motel, boarding house or club, whether or not meals are served. (2) Occupancy. The use or possession, or the right to the use or possession, of any room in a hotel OR VACATION RENTAL. "Right to the use or possession" includes the rights of a room remarketer as described in paragraph eight of this subdivision. (3) Occupant. A person who, for a consideration, uses, possesses, or has the right to use or possess, any room in a hotel OR VACATION RENTAL under any lease, concession, permit, right of access, license to use or other agreement, or otherwise. "Right to use or possess" includes the rights of a room remarketer as described in paragraph eight of this subdivision. (4) Operator. Any person operating a hotel OR VACATION RENTAL. Such term shall include a room remarketer and such room remarketer shall be deemed to operate a hotel, or portion thereof, with respect to which such person has the rights of a room remarketer. (5) Permanent resident. Any occupant of any room or rooms in a hotel OR VACATION RENTAL for at least ninety consecutive days shall be consid- ered a permanent resident with regard to the period of such occupancy. (6) Rent. The consideration received for occupancy, including any service or other charge or amount required to be paid as a condition for occupancy, valued in money, whether received in money or otherwise and whether received by the operator or a room remarketer or another person on behalf of either of them. (7) Room. Any room or rooms of any kind in any part or portion of a hotel OR VACATION RENTAL, which is available for or let out for any purpose other than a place of assembly. (8) Room remarketer. A person who reserves, arranges for, conveys, or furnishes occupancy, whether directly or indirectly, to an occupant for rent in A HOTEL FOR an amount determined by the room remarketer, direct- ly or indirectly, whether pursuant to a written or other agreement. Such S. 2509--A 153 A. 3009--A person's ability or authority to reserve, arrange for, convey, or furnish occupancy, directly or indirectly, and to determine rent there- for, shall be the "rights of a room remarketer". A room remarketer is not a permanent resident with respect to a room for which such person has the rights of a room remarketer. (9) VACATION RENTAL. A BUILDING OR PORTION OF IT THAT IS USED FOR THE LODGING OF GUESTS. THE TERM "VACATION RENTAL" INCLUDES A HOUSE, AN APARTMENT, A CONDOMINIUM, A COOPERATIVE UNIT, A CABIN, A COTTAGE, OR A BUNGALOW, OR ONE OR MORE ROOMS THEREIN, WHERE SLEEPING ACCOMMODATIONS ARE PROVIDED FOR THE LODGING OF PAYING OCCUPANTS, THE TYPICAL OCCUPANTS ARE TRANSIENTS OR TRAVELERS, AND THE RELATIONSHIP BETWEEN THE OPERATOR AND OCCUPANT IS NOT THAT OF A LANDLORD AND TENANT. IT IS NOT NECESSARY THAT MEALS ARE SERVED. A BUILDING OR PORTION OF A BUILDING MAY QUALIFY AS A VACATION RENTAL WHETHER OR NOT AMENITIES, INCLUDING BUT NOT LIMITED TO DAILY HOUSEKEEPING SERVICES, CONCIERGE SERVICES, OR LINEN SERVICES, ARE PROVIDED. (10) (I) VACATION RENTAL MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH AN OPERATOR, FACILITATES THE OCCUPANCY OF A VACA- TION RENTAL BY SUCH OPERATOR OR OPERATORS. A PERSON "FACILITATES THE OCCUPANCY OF A VACATION RENTAL" FOR PURPOSES OF THIS PARAGRAPH WHEN THE PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (A) SUCH PERSON PROVIDES THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE OF THE OCCUPANCY TAKES PLACE OR THE OFFER OF SUCH SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN INTERNET WEBSITE, CATALOG, OR SIMILAR FORUM; AND (B) SUCH PERSON OR AN AFFILIATE OF SUCH PERSON COLLECTS THE RENT PAID BY A CUSTOMER TO AN OPERATOR FOR THE OCCUPANCY OF A VACATION RENTAL, OR CONTRACTS WITH A THIRD PARTY TO COLLECT SUCH RENT. (II) FOR THE PURPOSES OF THIS ARTICLE, THE TERM "VACATION RENTAL MARKETPLACE PROVIDER" SHALL NOT INCLUDE A "ROOM REMARKETER" AS DEFINED IN PARAGRAPH EIGHT OF THIS SUBDIVISION. FOR PURPOSES OF THIS PARAGRAPH, PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN ANOTHER, OR WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDI- RECT, 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. THE TERM "VACATION RENTAL MARKETPLACE PROVIDER" SHALL NOT INCLUDE A "REAL ESTATE BROKER" AS LICENSED UNDER ARTICLE TWELVE-A OF THE REAL PROPERTY LAW. § 2. Subdivision (a) of section 1104 of the tax law, as added by chap- ter 3 of the laws of 2004, is amended to read as follows: (a) Imposition. In addition to any other fee or tax imposed by this article or any other law, on and after April first, two thousand five, there is hereby imposed within the territorial limits of a city with a population of a million or more and there shall be paid a unit fee on every occupancy of a unit in a hotel OR VACATION RENTAL in such city at the rate of one dollar and fifty cents per unit per day, except that such unit fee shall not be imposed upon (1) occupancy by a permanent resident or (2) where the rent per unit is not more than at the rate of two dollars per day. § 3. Paragraph 1 of subdivision (e) of section 1105 of the tax law, as amended by section 1 of part Q of chapter 59 of the laws of 2012, is amended to read as follows: (1) The rent for every occupancy of a room or rooms in a hotel AND VACATION RENTAL in this state, except that the tax shall not be imposed upon (i) a permanent resident, or (ii) where the rent is not more than at the rate of two dollars per day. S. 2509--A 154 A. 3009--A § 4. Subdivision 1 of section 1131 of the tax law, as amended by section 2 of part G of chapter 59 of the laws of 2019, is amended to read as follows: (1) "Persons required to collect tax" or "person required to collect any tax imposed by this article" shall include: every vendor of tangible personal property or services; every recipient of amusement charges; every operator of a hotel OR VACATION RENTAL; EVERY VACATION RENTAL MARKETPLACE PROVIDER WITH RESPECT TO THE RENT FOR EVERY OCCUPANCY OF A VACATION RENTAL IT FACILITATES AS DESCRIBED IN PARAGRAPH TEN OF SUBDIVI- SION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE; and every marketplace provider with respect to sales of tangible personal property it facilitates as described in paragraph one of subdivision (e) of section eleven hundred one of this article. Said terms shall also include any officer, director or employee of a corporation or of a dissolved corporation, any employee of a partnership, any employee or manager of a limited liability company, or any employee of an individual proprietorship who as such officer, director, employee or manager is under a duty to act for such corporation, partnership, limited liability company or individual proprietorship in complying with any requirement of this article, or has so acted; and any member of a partnership or limited liability company. Provided, however, that any person who is a vendor solely by reason of clause (D) or (E) of subparagraph (i) of paragraph [(8)] EIGHT of subdivision (b) of section eleven hundred one of this article shall not be a "person required to collect any tax imposed by this article" until twenty days after the date by which such person is required to file a certificate of registration pursuant to section eleven hundred thirty-four of this part. § 5. Section 1132 of the tax law is amended by adding a new subdivi- sion (m) to read as follows: (M)(L) A VACATION RENTAL MARKETPLACE PROVIDER WITH RESPECT TO A SALE FOR EVERY OCCUPANCY OF A VACATION RENTAL IT FACILITATES: (A) SHALL HAVE ALL THE OBLIGATIONS AND RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTI- CLE TWENTY-NINE OF THIS CHAPTER AND UNDER ANY REGULATIONS ADOPTED PURSU- ANT THERETO, INCLUDING, BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIF- ICATE OF AUTHORITY, TO COLLECT TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIFICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE THE REFUND AUTHORIZED BY SUBDIVISION (E) OF THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION (F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT TO THE PROVISIONS OF SUCH SUBDIVISIONS; AND (B) SHALL KEEP SUCH RECORDS AND INFORMATION AND COOPERATE WITH THE COMMISSIONER TO ENSURE THE PROPER COLLECTION AND REMITTANCE OF TAX IMPOSED, COLLECTED OR REQUIRED TO BE COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER. (2) AN OPERATOR IS RELIEVED FROM THE DUTY TO COLLECT TAX IN REGARD TO A PARTICULAR RENT FOR THE OCCUPANCY OF A VACATION RENTAL SUBJECT TO TAX UNDER SUBDIVISION (E) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND SHALL NOT INCLUDE THE RENT FROM SUCH OCCUPANCY IN ITS TAXABLE SALES FOR PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS PART IF, IN REGARD TO SUCH OCCUPANCY: (A) THE OPERATOR OF THE VACATION RENTAL CAN SHOW THAT SUCH OCCUPANCY WAS FACILITATED BY A VACATION RENTAL MARKETPLACE PROVIDER FROM WHOM SUCH OPERATOR HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT THE VACATION RENTAL MARKETPLACE PROVIDER IS REGISTERED TO COLLECT SALES TAX AND WILL COLLECT SALES TAX ON ALL TAXABLE SALES OF OCCUPANCY OF A VACATION RENTAL BY THE OPERATOR FACILITATED BY THE VACA- S. 2509--A 155 A. 3009--A TION RENTAL MARKETPLACE PROVIDER, AND WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (B) ANY FAILURE OF THE VACATION RENTAL MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF TAX IN REGARD TO SUCH SALE WAS NOT THE RESULT OF SUCH OPERATOR PROVIDING THE VACATION RENTAL MARKETPLACE PROVIDER WITH INCORRECT INFORMATION. THIS PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A CERTIFICATE OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES OF SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH CERTIF- ICATE OF COLLECTION AND THE TIMING OF ITS ACCEPTANCE BY THE OPERATOR. PROVIDED THAT, WITH REGARD TO ANY SALES OF OCCUPANCY OF A VACATION RENTAL BY AN OPERATOR THAT ARE FACILITATED BY A VACATION RENTAL MARKET- PLACE PROVIDER WHO IS AFFILIATED WITH SUCH OPERATOR WITHIN THE MEANING OF PARAGRAPH TEN OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, THE OPERATOR SHALL BE DEEMED LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH VACATION RENTAL MARKETPLACE PROVIDER FOR PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS PART. (3) THE COMMISSIONER MAY, AT HIS OR HER DISCRETION: (A) DEVELOP A STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED BY A VACATION RENTAL MARKETPLACE PROVIDER, IN WHICH THE VACATION RENTAL MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT THE TAX ON BEHALF OF ALL OPERATORS FOR WHOM THE VACATION RENTAL MARKETPLACE PROVIDER FACILITATES SALES OF OCCUPANCY OF A VACATION RENTAL, WITH RESPECT TO ALL SALES THAT IT FACIL- ITATES FOR SUCH OPERATORS WHERE THE RENTAL OCCURS IN THE STATE; AND (B) PROVIDE BY REGULATION OR OTHERWISE THAT THE INCLUSION OF SUCH PROVISION IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE VACATION RENTAL MARKET- PLACE PROVIDER AND OPERATOR WILL HAVE THE SAME EFFECT AS AN OPERATOR'S ACCEPTANCE OF A CERTIFICATE OF COLLECTION FROM SUCH VACATION RENTAL MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS SUBDIVISION. § 6. Section 1133 of the tax law is amended by adding a new subdivi- sion (g) to read as follows: (G) A VACATION RENTAL MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT THE VACATION RENTAL MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT OR INSUFFICIENT INFORMATION GIVEN TO THE VACATION RENTAL MARKETPLACE PROVIDER BY THE OPERATOR. PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF THE OPERATOR AND VACATION RENTAL MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF PARAGRAPH TEN OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE. § 7. Subdivision (a) of section 1134 of the tax law is amended by adding a new paragraph 6 to read as follows: (6) AN OPERATOR OF A VACATION RENTAL, AS DEFINED IN PARAGRAPH NINE OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, IS RELIEVED OF THE REQUIREMENT TO REGISTER IN PARAGRAPH ONE OF THIS SUBDI- VISION IF ITS SALES OF OCCUPANCY ARE WHOLLY FACILITATED BY ONE OR MORE VACATION RENTAL MARKETPLACE PROVIDERS FROM WHOM THE OPERATOR HAS RECEIVED IN GOOD FAITH A CERTIFICATE OF COLLECTION THAT MEETS THE REQUIREMENTS SET FORTH IN PARAGRAPH TWO OF SUBDIVISION (M) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART. § 8. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as amended by section 5 of part G of chapter 59 of the laws of 2019, is amended to read as follows: (4) The return of a vendor of tangible personal property or services shall show such vendor's receipts from sales and the number of gallons of any motor fuel or diesel motor fuel sold and also the aggregate value of tangible personal property and services and number of gallons of such S. 2509--A 156 A. 3009--A fuels sold by the vendor, the use of which is subject to tax under this article, and the amount of tax payable thereon pursuant to the provisions of section eleven hundred thirty-seven of this part. The return of a recipient of amusement charges shall show all such charges and the amount of tax thereon, and the return of an operator required to collect tax on rents shall show all rents received or charged and the amount of tax thereon. The return of a marketplace seller shall exclude the receipts from a sale of tangible personal property facilitated by a marketplace provider if, in regard to such sale: (A) the marketplace seller has timely received in good faith a properly completed certif- icate of collection from the marketplace provider or the marketplace provider has included a provision approved by the commissioner in the publicly-available agreement between the marketplace provider and the marketplace seller as described in subdivision one of section eleven hundred thirty-two of this part, and (B) the information provided by the marketplace seller to the marketplace provider about such tangible personal property is accurate. THE RETURN OF AN OPERATOR SHALL EXCLUDE THE RENT FROM OCCUPANCY OF A VACATION RENTAL FACILITATED BY A VACATION RENTAL MARKETPLACE PROVIDER IF, IN REGARD TO SUCH SALE: (A) THE VACATION RENTAL OPERATOR HAS TIMELY RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION FROM THE VACATION RENTAL MARKETPLACE PROVIDER OR THE VACATION RENTAL MARKETPLACE PROVIDER HAS INCLUDED A PROVISION APPROVED BY THE COMMISSIONER IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE VACATION RENTAL MARKETPLACE PROVIDER AND THE OPERATOR AS DESCRIBED IN SUBDIVISION (M) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE OPERATOR TO THE VACATION RENTAL MARKETPLACE PROVIDER ABOUT SUCH RENT AND SUCH OCCUPANCY IS ACCURATE. § 9. Section 1142 of the tax law is amended by adding a new subdivi- sion 16 to read as follows: 16. TO PUBLISH A LIST ON THE DEPARTMENT'S WEBSITE OF VACATION RENTAL MARKETPLACE PROVIDERS WHOSE CERTIFICATES OF AUTHORITY HAVE BEEN REVOKED AND, IF NECESSARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHERWISE THAT A VACATION RENTAL OPERATOR WILL BE RELIEVED OF THE REQUIREMENT TO REGISTER AND THE DUTY TO COLLECT TAX ON THE RENT FOR OCCUPANCY OF A VACATION RENTAL FACILITATED BY A VACATION RENTAL MARKET- PLACE PROVIDER ONLY IF, IN ADDITION TO THE CONDITIONS PRESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (M) OF SECTION ELEVEN HUNDRED THIRTY-TWO AND PARAGRAPH SIX OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED THIRTY- FOUR OF THIS PART BEING MET, SUCH VACATION RENTAL MARKETPLACE PROVIDER IS NOT ON SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY. § 10. This act shall take effect immediately and shall apply to collections of rent by the operator or vacation rental marketplace provider on or after September 1, 2021. PART J Section 1. Sections 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and breeding law are REPEALED. § 2. Paragraph 1 of subdivision (f) of section 1105 of the tax law, as amended by chapter 32 of the laws of 2016, is amended to read as follows: (1) Any admission charge where such admission charge is in excess of ten cents to or for the use of any place of amusement in the state, S. 2509--A 157 A. 3009--A except charges for admission to [race tracks or] combative sports which charges are taxed under any other law of this state, or dramatic or musical arts performances, or live circus performances, or motion picture theaters, and except charges to a patron for admission to, or use of, facilities for sporting activities in which such patron is to be a participant, such as bowling alleys and swimming pools. For any person having the permanent use or possession of a box or seat or a lease or a license, other than a season ticket, for the use of a box or seat at a place of amusement, the tax shall be upon the amount for which a similar box or seat is sold for each performance or exhibition at which the box or seat is used or reserved by the holder, licensee or lessee, and shall be paid by the holder, licensee or lessee. § 3. Subdivision (a) of section 1109 of the tax law, as amended by section 1 of part BB of chapter 61 of the laws of 2005, is amended to read as follows: (a) General. In addition to the taxes imposed by sections eleven hundred five and eleven hundred ten of this article, there is hereby imposed within the territorial limits of the metropolitan commuter transportation district created and established pursuant to section twelve hundred sixty-two of the public authorities law, and there shall be paid, additional taxes, at the rate of three-eighths of one percent, which shall be identical to the taxes imposed by sections eleven hundred five and eleven hundred ten of this article. Such sections and the other sections of this article, including the definition and exemption provisions, shall apply for purposes of the taxes imposed by this section in the same manner and with the same force and effect as if the language of those sections had been incorporated in full into this section and had expressly referred to the taxes imposed by this section. NOTWITHSTANDING THE FOREGOING, THE TAX IMPOSED BY THIS SECTION SHALL NOT APPLY TO ADMISSIONS TO RACE TRACKS OR SIMULCAST FACILITIES. § 4. Subdivision (a) of section 1146 of the tax law, as amended by chapter 65 of the laws of 1985, is amended to read as follows: (a) Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for the [tax commission, any tax] COMMISSIONER, any officer or employee of the department of taxation and finance, any person engaged or retained by such department on an inde- pendent contract basis, or any person who in any manner may acquire knowledge of the contents of a return or report filed with the [tax commission] COMMISSIONER pursuant to this article, to divulge or make known in any manner any particulars set forth or disclosed in any such return or report. The officers charged with the custody of such returns and 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 [tax commission] COMMISSIONER in an action or proceeding under the provisions of the tax law or in any other action or proceeding involving the collection of a tax due under this chapter to which the state or the [tax commission] COMMISSIONER is a party or a claimant, or on behalf of any party to any action, proceeding or hearing under the provisions of this article when the returns, reports or facts shown thereby are directly involved in such action, proceeding or hear- ing, in any of which events the court, or in the case of a hearing, the [tax commission] COMMISSIONER may require the production of, and may admit into evidence, so much of said returns, reports or of the facts shown thereby, as are pertinent to the action, proceeding or hearing and no more. The [tax commission] COMMISSIONER may, nevertheless, publish a copy or a summary of any decision rendered after a hearing required by S. 2509--A 158 A. 3009--A this article. Nothing herein shall be construed to prohibit the delivery to a person who has filed a return or report or his duly authorized representative of a certified copy of any return or report filed in connection with his tax. Nor shall anything herein be construed to prohibit the delivery to a person required to collect the tax under this article or a purchaser, transferee or assignee personally liable under the provisions of subdivision (c) of section eleven hundred forty-one of this chapter for the tax due from the seller, transferor or assignor, of any return or report filed under this article in connection with such tax provided, however, that there may be delivered only so much of said return, report or of the facts shown thereby as are pertinent to a determination of the taxes due or liability owed by such person or purchaser, transferee or assignee and no more or to prohibit the publi- cation of statistics so classified as to prevent the identification of particular returns or reports and the items thereof, or the inspection by the attorney general or other legal representatives of the state of the return or report of any person required to collect or pay the tax who shall bring action to review the tax based thereon, or against whom an action or proceeding under this chapter has been recommended by the commissioner of taxation and finance or the attorney general or has been instituted, or the inspection of the 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 person required to collect or pay the tax under this article. Provided, further, nothing herein shall be construed to prohibit the disclosure, in such manner as the [tax commis- sion] COMMISSIONER deems appropriate, of the names and other appropriate identifying information of those persons holding certificates of author- ity pursuant to section eleven hundred thirty-four of this article, those persons whose certificates of authority have been suspended or revoked, those persons whose certificates of authority have expired, those persons who have filed a certificate of registration for a certif- icate of authority where the [tax commission] COMMISSIONER has refused to issue a certificate of authority, those persons holding direct payment permits pursuant to section eleven hundred thirty-two or those persons whose direct payment permits have been suspended or revoked by the [tax commission] COMMISSIONER; AND PROVIDED FURTHER THAT NOTHING HEREIN SHALL BE CONSTRUED TO PROHIBIT THE DISCLOSURE, IN SUCH MANNER AS THE COMMISSIONER DEEMS APPROPRIATE, OF INFORMATION RELATED TO THE TAX ON ADMISSIONS TO RACE TRACKS AND SIMULCAST FACILITIES TO THE GAMING COMMIS- SION OR THE DIVISION OF THE BUDGET. § 5. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by section 2 of part WW, subparagraph (i) as separately amended by section 5 of part Z of chapter 60 of the laws of 2016, is amended to read as follows: (1) Either, all of the taxes described in article twenty-eight of this chapter, at the same uniform rate, as to which taxes all provisions of the local laws, ordinances or resolutions imposing such taxes shall be identical, except as to rate and except as otherwise provided, with the corresponding provisions in such article twenty-eight, including the definition and exemption provisions of such article, so far as the provisions of such article twenty-eight can be made applicable to the taxes imposed by such city or county and with such limitations and special provisions as are set forth in this article. The taxes author- ized under this subdivision may not be imposed by a city or county unless the local law, ordinance or resolution imposes such taxes so as S. 2509--A 159 A. 3009--A to include all portions and all types of receipts, charges or rents, subject to state tax under sections eleven hundred five and eleven hundred ten of this chapter, except as otherwise provided. NOTWITH- STANDING THE FOREGOING, A TAX IMPOSED BY A CITY OR COUNTY AUTHORIZED UNDER THIS SUBDIVISION SHALL NOT INCLUDE THE TAX IMPOSED ON CHARGES FOR ADMISSION TO RACE TRACKS AND SIMULCAST FACILITIES UNDER SUBDIVISION (F) OF SECTION ELEVEN HUNDRED FIVE OF THIS CHAPTER. (i) Any local law, ordi- nance or resolution enacted by any city of less than one million or by any county or school district, imposing the taxes authorized by this subdivision, shall, notwithstanding any provision of law to the contra- ry, exclude from the operation of such local taxes all sales of tangible personal property for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrig- eration or steam, for sale, by manufacturing, processing, generating, assembly, refining, mining or extracting; and all sales of tangible personal property for use or consumption predominantly either in the production of tangible personal property, for sale, by farming or in a commercial horse boarding operation, or in both; and all sales of fuel sold for use in commercial aircraft and general aviation aircraft; and, unless such city, county or school district elects otherwise, shall omit the provision for credit or refund contained in clause six of subdivi- sion (a) or subdivision (d) of section eleven hundred nineteen of this chapter. (ii) Any local law, ordinance or resolution enacted by any city, county or school district, imposing the taxes authorized by this subdivision, shall omit the residential solar energy systems equipment and electricity exemption provided for in subdivision (ee), the commer- cial solar energy systems equipment and electricity exemption provided for in subdivision (ii), the commercial fuel cell electricity generating systems equipment and electricity generated by such equipment exemption provided for in subdivision (kk) and the clothing and footwear exemption provided for in paragraph thirty of subdivision (a) of section eleven hundred fifteen of this chapter, unless such city, county or school district elects otherwise as to such residential solar energy systems equipment and electricity exemption, such commercial solar energy systems equipment and electricity exemption, commercial fuel cell elec- tricity generating systems equipment and electricity generated by such equipment exemption or such clothing and footwear exemption. § 6. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as amended by section 3 of part WW of chapter 60 of the laws of 2016, is amended to read as follows: (1) Or, one or more of the taxes described in subdivisions (b), (d), (e) and (f) of section eleven hundred five of this chapter, at the same uniform rate, including the transitional provisions in section eleven hundred six of this chapter covering such taxes, but not the taxes described in subdivisions (a) and (c) of section eleven hundred five of this chapter. Provided, further, that where the tax described in subdi- vision (b) of section eleven hundred five of this chapter is imposed, the compensating use taxes described in clauses (E), (G) and (H) of subdivision (a) of section eleven hundred ten of this chapter shall also be imposed. Provided, further, that where the taxes described in subdi- vision (b) of section eleven hundred five OF THIS CHAPTER are imposed, such taxes shall omit: (A) the provision for refund or credit contained in subdivision (d) of section eleven hundred nineteen of this chapter with respect to such taxes described in such subdivision (b) of section eleven hundred five unless such city or county elects to provide such provision or, if so elected, to repeal such provision; (B) the exemption S. 2509--A 160 A. 3009--A provided in paragraph two of subdivision (ee) of section eleven hundred fifteen of this chapter unless such county or city elects otherwise; (C) the exemption provided in paragraph two of subdivision (ii) of section eleven hundred fifteen of this chapter, unless such county or city elects otherwise; and (D) the exemption provided in paragraph two of subdivision (kk) of section eleven hundred fifteen of this chapter, unless such county or city elects otherwise; AND PROVIDED FURTHER THAT WHERE THE TAX DESCRIBED IN SUBDIVISION (F) OF SUCH SECTION ELEVEN HUNDRED FIVE IS IMPOSED, SUCH TAX SHALL NOT APPLY TO CHARGES FOR ADMIS- SION TO RACE TRACKS AND SIMULCAST FACILITIES. § 7. Notwithstanding any provisions of law to the contrary and notwithstanding the repeal of sections 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and breeding law by section one of this act, all provisions of such sections 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009, in respect to the imposition, exemption, assessment, payment, payment over, determination, collection, and credit or refund of tax, interest and penalty imposed thereunder, the filing of forms and returns, the preser- vation of records for the purposes of such tax, the disposition of revenues, and any civil and criminal penalties applicable to the violation of the provisions of such sections 227, 306 and 406, subpara- graph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009, shall continue in full force and effect with respect to all such tax accrued for periods prior to the effective date of this act in the same manner as they might if such provisions were not repealed. § 8. This act shall take effect November 1, 2021 and shall apply to charges for admissions to race tracks and simulcast facilities on and after such date. PART K Section 1. Subdivision (d) of section 1139 of the tax law, as amended by section 10 of subpart D of part VI of chapter 57 of the laws of 2009, is amended to read as follows: (d) (1) Except in respect to an overpayment made on a return described in paragraph two of subdivision (a) of section eleven hundred thirty-six of this part [or on a return described in subdivision (c) of section eleven hundred thirty-seven-A of this part], interest shall be allowed and paid upon any refund made or credit allowed pursuant to this section except as otherwise provided in paragraph two OR THREE of this subdivi- sion or subdivision (e) of this section and 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 section eleven hundred forty-two of this part, or if no rate is set, at the rate of six percent per annum from the date when the tax, penalty or interest refunded or credited 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. In the case of a refund or credit claimed on a return of tax which is filed after the last date prescribed for filing such return (determined with regard to extensions), or claimed on an application for refund or credit, no interest shall be S. 2509--A 161 A. 3009--A allowed or paid for any day before the date on which the return or application is filed. For purposes of this subdivision, a return or application for refund or credit shall not be treated as filed until it is filed in processible form. A return or application is in a processi- ble form if it is filed on a permitted form, and contains the taxpayer's name, address and identifying number and the required signatures, and sufficient required information (whether on the return or application or on required attachments) to permit the mathematical verification of tax liability shown on the return or refund or credit claimed on the appli- cation. (2) If a refund is made or a credit is allowed IN AN AMOUNT LESS THAN ONE HUNDRED THOUSAND DOLLARS (I) within three months after the last date prescribed or permitted by extension of time for filing a return on which the refund or credit was claimed or within three months after the return was filed, whichever is later, or (II) within three months after an application for refund or credit is filed on which that refund or credit was claimed, OR (III) WITHIN THREE MONTHS AFTER THE LAST DATE PRESCRIBED OR PERMITTED BY EXTENSION OF TIME FOR FILING AN APPLICATION FOR A REFUND OR CREDIT ON WHICH THAT REFUND OR CREDIT WAS CLAIMED, no interest will be allowed or paid on that refund or credit. (3) IF A REFUND IS MADE OR A CREDIT IS ALLOWED IN AN AMOUNT OF ONE HUNDRED THOUSAND DOLLARS OR MORE (I) WITHIN SIX MONTHS AFTER THE LAST DATE PRESCRIBED OR PERMITTED BY EXTENSION OF TIME FOR FILING A RETURN ON WHICH THE REFUND OR CREDIT WAS CLAIMED OR WITHIN SIX MONTHS AFTER THE RETURN WAS FILED, WHICHEVER IS LATER, OR (II) WITHIN SIX MONTHS AFTER AN APPLICATION FOR REFUND OR CREDIT IS FILED ON WHICH THAT REFUND OR CREDIT WAS CLAIMED, OR (III) WITHIN SIX MONTHS AFTER THE LAST DATE PRESCRIBED OR PERMITTED BY EXTENSION OF TIME FOR FILING AN APPLICATION FOR REFUND OR CREDIT ON WHICH THAT REFUND OR CREDIT WAS CLAIMED, NO INTEREST WILL BE ALLOWED OR PAID ON THAT REFUND OR CREDIT. § 2. This act shall take effect immediately and shall apply to refund or credit claims submitted on or after March 1, 2022. PART L Section 1. Subparagraph (i) of the opening paragraph of section 1210 of the tax law is REPEALED and a new subparagraph (i) is added to read as follows: (I) WITH RESPECT TO A CITY OF ONE MILLION OR MORE AND THE FOLLOWING COUNTIES: (1) ANY SUCH CITY HAVING A POPULATION OF ONE MILLION OR MORE IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDI- NANCES OR RESOLUTIONS IMPOSING SUCH TAXES IN ANY SUCH CITY, AT THE RATE OF FOUR AND ONE-HALF PERCENT; (2) THE FOLLOWING COUNTIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION (A) OF THIS SECTION AT THE RATE OF THREE PERCENT AS AUTHORIZED ABOVE IN THIS PARAGRAPH ARE HEREBY FURTHER AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES, OR RESOLUTIONS IMPOSING SUCH TAXES AT ADDITIONAL RATES, IN QUARTER PERCENT INCREMENTS, NOT TO EXCEED THE FOLLOWING RATES, WHICH RATES ARE ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED ABOVE IN THIS PARAGRAPH: (A) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CAYUGA, CHAUTAUQUA, CHEMUNG, CHENANGO, CLINTON, COLUMBIA, CORTLAND, DELAWARE, DUTCHESS, ESSEX, FRANKLIN, FULTON, GENESEE, GREENE, HAMILTON, JEFFERSON, LEWIS, LIVINGSTON, MADISON, MONROE, MONTGOMERY, NIAGARA, ONONDAGA, ONTARIO, ORANGE, ORLEANS, OSWEGO, OTSEGO, PUTNAM, RENSSELAER, ROCKLAND, ST. LAWRENCE, SARATOGA, SCHENECTADY, SCHOHARIE, SCHUYLER, SENECA, STEUBEN, S. 2509--A 162 A. 3009--A SULLIVAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON, WAYNE, WESTCHES- TER, WYOMING, YATES; (B) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU, SUFFOLK; (C) ONE AND ONE-HALF PERCENT - ALLEGANY; (D) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA. PROVIDED, HOWEVER, THAT (I) THE COUNTY OF ROCKLAND MAY IMPOSE ADDI- TIONAL RATES OF FIVE-EIGHTHS PERCENT AND THREE-EIGHTHS PERCENT, IN LIEU OF IMPOSING SUCH ADDITIONAL RATE IN QUARTER PERCENT INCREMENTS; (II) THE COUNTY OF ONTARIO MAY IMPOSE ADDITIONAL RATES OF ONE-EIGHTH PERCENT AND THREE-EIGHTHS PERCENT, IN LIEU OF IMPOSING SUCH ADDITIONAL RATE IN QUAR- TER PERCENT INCREMENTS; (III) THREE-QUARTERS PERCENT OF THE ADDITIONAL RATE AUTHORIZED TO BE IMPOSED BY THE COUNTY OF NASSAU SHALL BE SUBJECT TO THE LIMITATION SET FORTH IN SECTION TWELVE HUNDRED SIXTY-TWO-E OF THIS ARTICLE. § 2. Subparagraph (ii) of the opening paragraph of section 1210 of the tax law is REPEALED and a new subparagraph (ii) is added to read as follows: (II) THE FOLLOWING CITIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION (A) OF THIS SECTION AT THE RATE OF ONE AND ONE-HALF PERCENT OR HIGHER AS AUTHORIZED ABOVE IN THIS PARAGRAPH FOR SUCH CITIES ARE HEREBY FURTHER AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES, OR RESOLUTIONS IMPOSING SUCH TAXES AT ADDITIONAL RATES, IN QUARTER PERCENT INCREMENTS, NOT TO EXCEED THE FOLLOWING RATES, WHICH RATES ARE ADDI- TIONAL TO THE ONE AND ONE-HALF PERCENT OR HIGHER RATES AUTHORIZED ABOVE IN THIS PARAGRAPH: (1) ONE PERCENT - MOUNT VERNON; NEW ROCHELLE; OSWEGO; WHITE PLAINS; (2) ONE AND ONE QUARTER PERCENT - NONE; (3) ONE AND ONE-HALF PERCENT - YONKERS. § 3. Subparagraphs (iii) and (iv) of the opening paragraph of section 1210 of the tax law are REPEALED and a new subparagraph (iii) is added to read as follows: (III) THE MAXIMUM RATE REFERRED TO IN SECTION TWELVE HUNDRED TWENTY- FOUR OF THIS ARTICLE SHALL BE CALCULATED WITHOUT REFERENCE TO THE ADDI- TIONAL RATES AUTHORIZED FOR COUNTIES, OTHER THAN THE COUNTIES OF CAYUGA, CORTLAND, FULTON, MADISON, AND OTSEGO, IN CLAUSE TWO OF SUBPARAGRAPH (I) AND THE CITIES IN SUBPARAGRAPH (II) OF THIS PARAGRAPH. § 4. Section 1210 of the tax law is amended by adding a new subdivi- sion (p) to read as follows: (P) NOTWITHSTANDING ANY PROVISION OF THIS SECTION OR OTHER LAW TO THE CONTRARY, A COUNTY AUTHORIZED TO IMPOSE AN ADDITIONAL RATE OR RATES OF SALES AND COMPENSATING USE TAXES BY CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF THIS SECTION, OR A CITY, OTHER THAN THE CITY OF MOUNT VERNON, AUTHORIZED TO IMPOSE AN ADDITIONAL RATE OF SUCH TAXES BY SUBPARAGRAPH (II) OF SUCH OPENING PARAGRAPH, MAY ADOPT A LOCAL LAW, ORDINANCE OR RESOLUTION BY A MAJORITY VOTE OF ITS GOVERNING BODY IMPOS- ING SUCH RATE OR RATES FOR A PERIOD NOT TO EXCEED TWO YEARS, AND ANY SUCH PERIOD MUST END ON NOVEMBER THIRTIETH OF AN ODD-NUMBERED YEAR. NOTWITHSTANDING THE PRECEDING SENTENCE, THE CITY OF WHITE PLAINS IS AUTHORIZED TO EXCEED SUCH TWO-YEAR LIMITATION TO IMPOSE THE TAX AUTHOR- IZED BY SUBPARAGRAPH (II) OF SUCH OPENING PARAGRAPH FOR THE PERIOD COMMENCING ON SEPTEMBER FIRST, TWO THOUSAND TWENTY-ONE AND ENDING ON NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-THREE. ANY SUCH LOCAL LAW, ORDI- NANCE, OR RESOLUTION SHALL ALSO BE SUBJECT TO THE PROVISIONS OF SUBDIVI- SIONS (D) AND (E) OF THIS SECTION. § 5. Section 1210-E of the tax law is REPEALED. S. 2509--A 163 A. 3009--A § 6. Subdivisions (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (z-1), (aa), (bb), (cc), (dd), (ee), (ff), (gg), (hh), (ii) and (jj) of section 1224 of the tax law are REPEALED. § 7. Section 1224 of the tax law is amended by adding three new subdi- visions (d), (e), and (f) to read as follows: (D) FOR PURPOSES OF THIS SECTION, THE TERM "PRIOR RIGHT" SHALL MEAN THE PREFERENTIAL RIGHT TO IMPOSE ANY TAX DESCRIBED IN SECTIONS TWELVE HUNDRED TWO AND TWELVE HUNDRED THREE, OR TWELVE HUNDRED TEN AND TWELVE HUNDRED ELEVEN, OF THIS ARTICLE AND THEREBY TO PREEMPT SUCH TAX AND TO PRECLUDE ANOTHER MUNICIPAL CORPORATION FROM IMPOSING OR CONTINUING THE IMPOSITION OF SUCH TAX TO THE EXTENT THAT SUCH RIGHT IS EXERCISED. HOWEVER, THE RIGHT OF PREEMPTION SHALL ONLY APPLY WITHIN THE TERRITORIAL LIMITS OF THE TAXING JURISDICTION HAVING THE RIGHT OF PREEMPTION. (E) EACH OF THE FOLLOWING COUNTIES AND CITIES SHALL HAVE THE SOLE RIGHT TO IMPOSE THE FOLLOWING ADDITIONAL RATE OF SALES AND COMPENSATING USE TAXES IN EXCESS OF THREE PERCENT THAT SUCH COUNTY OR CITY IS AUTHOR- IZED TO IMPOSE PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OR SUBPARA- GRAPH (II) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE. SUCH ADDITIONAL RATES OF TAX SHALL NOT BE SUBJECT TO PREEMPTION. (1) COUNTIES: (A) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CHAUTAUQUA, CHEMUNG, CHENANGO, CLINTON, COLUMBIA, DELAWARE, DUTCHESS, ESSEX, FRANKLIN, GENE- SEE, GREENE, HAMILTON, JEFFERSON, LEWIS, LIVINGSTON, MONROE, MONTGOMERY, NIAGARA, ONONDAGA, ONTARIO, ORANGE, ORLEANS, OSWEGO, PUTNAM, RENSSELAER, ROCKLAND, ST. LAWRENCE, SARATOGA, SCHENECTADY, SCHOHARIE, SCHUYLER, SENECA, STEUBEN, SULLIVAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON, WAYNE, WESTCHESTER, WYOMING, YATES; (B) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU, SUFFOLK; (C) ONE AND ONE-HALF PERCENT - ALLEGANY; (D) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA; PROVIDED, HOWEVER THAT THE COUNTY OF WESTCHESTER SHALL HAVE THE SOLE RIGHT TO IMPOSE THE ADDITIONAL ONE PERCENT RATE OF TAX AUTHORIZED BY CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE IN THE AREA OF SUCH COUNTY OUTSIDE THE CITIES OF MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS AND YONKERS. (2) CITIES: (A) ONE-QUARTER OF ONE PERCENT - ROME; (B) ONE-HALF OF ONE PERCENT - NONE; (C) THREE-QUARTERS OF ONE PERCENT - NONE; (D) ONE PERCENT - MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS; (E) ONE AND ONE QUARTER PERCENT - NONE; (F) ONE AND ONE-HALF PERCENT - YONKERS. (F) EACH OF THE FOLLOWING CITIES IS AUTHORIZED TO PREEMPT THE TAXES IMPOSED BY THE COUNTY IN WHICH IT IS LOCATED PURSUANT TO THE AUTHORITY OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, TO THE EXTENT OF ONE-HALF THE MAXIMUM AGGREGATE RATE AUTHORIZED UNDER SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, INCLUDING THE ADDITIONAL RATE THAT THE COUNTY IN WHICH SUCH CITY IS LOCATED IS AUTHORIZED TO IMPOSE: AUBURN, IN CAYUGA COUNTY; CORTLAND, IN CORTLAND COUNTY; GLOVERSVILLE AND JOHNSTOWN, IN FULTON COUNTY; ONEIDA, IN MADISON COUNTY; ONEONTA, IN OTSEGO COUNTY. AS OF THE DATE THIS SUBDIVISION TAKES EFFECT, ANY SUCH PREEMPTION BY SUCH A CITY IN EFFECT ON SUCH DATE SHALL CONTINUE IN FULL FORCE AND EFFECT UNTIL THE EFFECTIVE DATE OF A LOCAL LAW, ORDINANCE, OR RESOLUTION ADOPTED OR AMENDED BY THE CITY TO CHANGE SUCH PREEMPTION. ANY PREEMPTION BY SUCH A S. 2509--A 164 A. 3009--A CITY PURSUANT TO THIS SUBDIVISION THAT TAKES EFFECT AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION SHALL BE SUBJECT TO THE NOTICE REQUIREMENTS IN SECTION TWELVE HUNDRED TWENTY-THREE OF THIS SUBPART AND TO THE OTHER REQUIREMENTS OF THIS ARTICLE. § 8. Section 1262-g of the tax law, as amended by section 2 of item DD of subpart C of part XXX of chapter 58 of the laws of 2020, is amended to read as follows: § 1262-g. Oneida county allocation and distribution of net collections from the additional [one percent rate] RATES of sales and compensating use taxes. Notwithstanding any contrary provision of law, (A) if the county of Oneida imposes sales and compensating use taxes at a rate which is one percent additional to the three percent rate authorized by section twelve hundred ten of this article, as authorized by such section, [(a)] (I) where a city in such county imposes tax pursuant to the authority of subdivision (a) of such section twelve hundred ten, such county shall allocate, distribute and pay in cash quarterly to such city one-half of the net collections attributable to such additional one percent rate of the county's taxes collected in such city's boundaries; [(b)] (II) where a city in such county does not impose tax pursuant to the authority of such subdivision (a) of such section twelve hundred ten, such county shall allocate, distribute and pay in cash quarterly to such city not so imposing tax a portion of the net collections attribut- able to one-half of the county's additional one percent rate of tax calculated on the basis of the ratio which such city's population bears to the county's total population, such populations as determined in accordance with the latest decennial federal census or special popu- lation census taken pursuant to section twenty of the general municipal law completed and published prior to the end of the quarter for which the allocation is made, which special census must include the entire area of the county; [and (c)] provided, however, that such county shall dedicate the first one million five hundred thousand dollars of net collections attributable to such additional one percent rate of tax received by such county after the county receives in the aggregate eigh- teen million five hundred thousand dollars of net collections from such additional one percent rate of tax [imposed for any of the periods: September first, two thousand twelve through August thirty-first, two thousand thirteen; September first, two thousand thirteen through August thirty-first, two thousand fourteen; and September first, two thousand fourteen through August thirty-first, two thousand fifteen; September first, two thousand fifteen through August thirty-first, two thousand sixteen; and September first, two thousand sixteen through August thir- ty-first, two thousand seventeen; September first, two thousand seven- teen through August thirty-first, two thousand eighteen; September first, two thousand eighteen through August thirty-first, two thousand twenty; and September first, two thousand twenty through August thirty- first, two thousand twenty-three,] to an allocation on a per capita basis, utilizing figures from the latest decennial federal census or special population census taken pursuant to section twenty of the gener- al municipal law, completed and published prior to the end of the year for which such allocation is made, which special census must include the entire area of such county, to be allocated and distributed among the towns of Oneida county by appropriation of its board of legislators; provided, further, that nothing herein shall require such board of legislators to make any such appropriation until it has been notified by any town by appropriate resolution and, in any case where there is a village wholly or partly located within a town, a resolution of every S. 2509--A 165 A. 3009--A such village, embodying the agreement of such town and village or villages upon the amount of such appropriation to be distributed to such village or villages out of the allocation to the town or towns in which it is located. (B) IF THE COUNTY OF ONEIDA IMPOSES SALES AND COMPENSATING USE TAXES AT A RATE WHICH IS ONE AND THREE-QUARTERS PERCENT ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED BY SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, AS AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS ATTRIBUTABLE TO THE ADDITIONAL THREE-QUARTERS PERCENT OF SUCH ADDITIONAL RATE SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION AGREEMENT ENTERED INTO BY THE COUNTY AND THE CITIES IN THE COUNTY PURSU- ANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART. § 9. The opening paragraph of section 1262-r of the tax law, as added by chapter 37 of the laws of 2006, is amended to read as follows: (1) NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IF THE COUNTY OF ONTARIO IMPOSES THE ADDITIONAL ONE-EIGHTH OF ONE PERCENT AND THE ADDI- TIONAL THREE-EIGHTHS OF ONE PERCENT RATES OF TAX AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS FROM THE SUCH ADDI- TIONAL THREE-EIGHTHS OF ONE PERCENT RATE OF SUCH TAXES SHALL BE SET ASIDE FOR COUNTY PURPOSES AND SHALL NOT BE SUBJECT TO ANY AGREEMENT ENTERED INTO BY THE COUNTY AND THE CITIES IN THE COUNTY PURSUANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART OR THIS SECTION. (2) Notwithstanding the provisions of subdivision (c) of section twelve hundred sixty-two of this part to the contrary, if the cities of Canandaigua and Geneva in the county of Ontario do not impose sales and compensating use taxes pursuant to the authority of section twelve hundred ten of this article and such cities and county enter into an agreement pursuant to the authority of subdivision (c) of section twelve hundred sixty-two of this part to be effective March first, two thousand six, such agreement may provide that: § 10. The tax law is amended by adding a new section 1262-v to read as follows: § 1262-V. DISPOSITION OF NET COLLECTIONS FROM THE ADDITIONAL RATE OF SALES AND COMPENSATING USE TAX IN CLINTON COUNTY. NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IF THE COUNTY OF CLINTON IMPOSES THE ADDI- TIONAL ONE PERCENT RATE OF SALES AND COMPENSATING USE TAXES AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS FROM SUCH ADDITIONAL RATE SHALL BE PAID TO THE COUNTY AND THE COUNTY SHALL SET ASIDE SUCH NET COLLECTIONS AND USE THEM SOLELY FOR COUNTY PURPOSES. SUCH NET COLLECTIONS SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION AGREE- MENT ENTERED INTO BY THE COUNTY AND THE CITY IN THE COUNTY PURSUANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART. § 11. Section 1262-s of the tax law, as amended by section 3 of item U of subpart C of part XXX of chapter 58 of the laws of 2020, is amended to read as follows: § 1262-s. Disposition of net collections from the additional one-quar- ter of one percent rate of sales and compensating use taxes in the coun- ty of Herkimer. Notwithstanding any contrary provision of law, if the county of Herkimer imposes [the additional] SALES AND COMPENSATING USE TAX AT A RATE THAT IS ONE AND one-quarter [of one] percent [rate of S. 2509--A 166 A. 3009--A sales and compensating use taxes] ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED BY SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, AS authorized by [section twelve hundred ten-E] CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN of this article [for all or any portion of the period beginning December first, two thousand seven and ending November thirtieth, two thousand twenty-three], the county shall use all net collections [from such] ATTRIBUTABLE TO THE additional one-quarter [of one] percent OF SUCH ADDITIONAL rate to pay the county's expenses for the construction of additional correctional facilities. The net collections from [the] SUCH ADDITIONAL ONE-QUARTER PERCENT OF SUCH additional rate [imposed pursuant to section twelve hundred ten-E of this article] shall be deposited in a special fund to be created by such county separate and apart from any other funds and accounts of the county. Any and all remaining net collections from such additional tax, after the expenses of such construction are paid, shall be deposited by the county of Herkimer in the general fund of such coun- ty for any county purpose. § 12. The tax law is amended by adding a new section 1265 to read as follows: § 1265. REFERENCES TO CERTAIN PROVISIONS AUTHORIZING ADDITIONAL RATES OR TO EXPIRATIONS OF A PERIOD. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY: (A) ANY REFERENCE IN ANY SECTION OF THIS CHAPTER OR OTHER LAW, OR IN ANY LOCAL LAW, ORDINANCE, OR RESOLUTION ADOPTED PURSUANT TO THE AUTHORITY OF THIS ARTICLE, TO NET COLLECTIONS OR REVENUES FROM A TAX IMPOSED BY A COUNTY OR CITY PURSUANT TO THE AUTHORITY OF A CLAUSE, OR TO A SUBCLAUSE OF A CLAUSE, OF SUBPARAGRAPH (I) OR (II) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE REPEALED BY SECTION ONE OR TWO OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-ONE THAT ADDED THIS SECTION OR PURSUANT TO SECTION TWELVE HUNDRED TEN-E OF THIS ARTICLE REPEALED BY SECTION FIVE OF SUCH CHAPTER SHALL BE DEEMED TO BE A REFERENCE TO NET COLLECTIONS OR REVENUES FROM A TAX IMPOSED BY THAT COUNTY OR CITY PURSUANT TO THE AUTHORITY OF THE EQUIVALENT PROVISION OF CLAUSE TWO OF SUBPARAGRAPH (I) OR TO SUBPARAGRAPH (II) OF THE OPENING PARAGRAPH OF SUCH SECTION TWELVE HUNDRED TEN AS ADDED BY SUCH SECTION ONE OR TWO OF SUCH CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-ONE; (B) ANY REFERENCE IN THIS CHAPTER OR IN ANY OTHER LAW RELATING TO THE EXPI- RATION OF A PROVISION CONCERNING THE DISTRIBUTION OF REVENUE FROM THE TAXES AUTHORIZED TO BE IMPOSED BY THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE SHALL BE DISREGARDED, AND SUCH PROVISION SHALL CONTINUE IN EFFECT UNLESS LATER AMENDED OR REPEALED. § 13. This act shall take effect immediately. PART M Section 1. Subdivision (jj) of section 1115 of the tax law, as amended by section 1 of part V of chapter 59 of the laws of 2019, is amended to read as follows: (jj) Tangible personal property or services otherwise taxable under this article sold to a related person shall not be subject to the taxes imposed by section eleven hundred five of this article or the compensat- ing use tax imposed under section eleven hundred ten of this article where the purchaser can show that the following conditions have been met to the extent they are applicable: (1)(i) the vendor and the purchaser are referenced as either a "covered company" as described in section 243.2(f) or a "material entity" as described in section 243.2(l) of the Code of Federal Regulations in a resolution plan that has been submitted S. 2509--A 167 A. 3009--A to an agency of the United States for the purpose of satisfying subpara- graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- Frank Wall Street Reform and Consumer Protection Act (the "Act") or any successor law, or (ii) the vendor and the purchaser are separate legal entities pursuant to a divestiture directed pursuant to subparagraph 5 of paragraph (d) of section one hundred sixty-five of such act or any successor law; (2) the sale would not have occurred between such related entities were it not for such resolution plan or divestiture; and (3) in acquiring such property or services, the vendor did not claim an exemption from the tax imposed by this state or another state based on the vendor's intent to resell such services or property. A person is related to another person for purposes of this subdivision if the person bears a relationship to such person described in section two hundred sixty-seven of the internal revenue code. The exemption provided by this subdivision shall not apply to sales made, services rendered, or uses occurring after June thirtieth, two thousand [twenty-one] TWENTY-FOUR, except with respect to sales made, services rendered, or uses occurring pursuant to binding contracts entered into on or before such date; but in no case shall such exemption apply after June thirtieth, two thousand [twenty-four] TWENTY-SEVEN. § 2. This act shall take effect immediately. PART N Section 1. Subparagraph (vi) of paragraph 1 of subdivision (a) of section 1134 of the tax law, as amended by section 160 of part A of chapter 389 of the laws of 1997, is amended to read as follows: (vi) every person described in subparagraph (i), (ii), (iii), (iv) or (v) of this paragraph or every person who is a vendor solely by reason of clause (D), (E) or (F) of subparagraph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article who or which has had its certificate of authority revoked under paragraph four of this subdivision, shall file with the commissioner a certificate of registration, in a form prescribed by the commissioner, at least twenty days prior to commencing business or opening a new place of business or such purchasing, selling or taking of possession or payment, whichever comes first. Every person who is a vendor solely by reason of clause (D) of subparagraph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article shall file with the commissioner a certificate of registration, in a form prescribed by such commissioner, within thirty days after the day on which the cumulative total number of occasions that such person came into the state to deliver property or services, for the immediately preceding four quarterly periods ending on the last day of February, May, August and November, exceeds twelve. Every person who is a vendor solely by reason of clause (E) of subpara- graph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article shall file with the commissioner a certif- icate of registration, in a form prescribed by such commissioner, within thirty days after the day on which the cumulative total, for the imme- diately preceding four quarterly periods ending on the last day of February, May, August and November, of such person's gross receipts from sales of property delivered in this state exceeds [three] FIVE hundred thousand dollars and number of such sales exceeds one hundred. Every person who is a vendor solely by reason of clause (F) of subparagraph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article shall file with the commissioner a certificate of regis- S. 2509--A 168 A. 3009--A tration, in a form prescribed by such commissioner, within thirty days after the day on which tangible personal property in which such person retains an ownership interest is brought into this state by the person to whom such property is sold, where the person to whom such property is sold becomes or is a resident or uses such property in any manner in carrying on in this state any employment, trade, business or profession. Information with respect to the notice requirements of a purchaser, transferee or assignee and such person's liability pursuant to the provisions of subdivision (c) of section eleven hundred forty-one of this chapter shall be included in or accompany the certificate of regis- tration form furnished the applicant. The commissioner shall also include with such information furnished to each applicant general infor- mation about the tax imposed under this article including information on records to be kept, returns and payments, notification requirements and forms. Such certificate of registration may be amended in accordance with rules promulgated by the commissioner. § 2. This act shall take effect immediately. PART O Section 1. Subdivision (a) of section 1401 of the tax law, as amended by chapter 576 of the laws of 1994, is amended to read as follows: (a) (1) "Person" means an individual, partnership, limited liability company, society, association, joint stock company, corporation, estate, receiver, trustee, assignee, referee or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, any combination of individuals, and any other form of unin- corporated enterprise owned or conducted by two or more persons. (2) "PERSON" SHALL INCLUDE ANY INDIVIDUAL, CORPORATION, PARTNERSHIP OR LIMITED LIABILITY COMPANY OR AN OFFICER OR EMPLOYEE OF ANY CORPORATION (INCLUDING A DISSOLVED CORPORATION), OR A MEMBER OR EMPLOYEE OF ANY PARTNERSHIP, OR A MEMBER, MANAGER OR EMPLOYEE OF A LIMITED LIABILITY COMPANY, WHO AS SUCH OFFICER, EMPLOYEE, MANAGER OR MEMBER IS UNDER A DUTY TO ACT FOR SUCH CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY OR INDIVIDUAL PROPRIETORSHIP IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE, OR HAS SO ACTED. § 2. Subdivision (a) of section 1404 of the tax law, as amended by chapter 61 of the laws of 1989, is amended to read as follows: (a) The real estate transfer tax IMPOSED PURSUANT TO SECTION FOURTEEN HUNDRED TWO OF THIS ARTICLE shall be paid by the grantor AND SUCH TAX SHALL NOT BE PAYABLE, DIRECTLY OR INDIRECTLY, BY THE GRANTEE EXCEPT AS PROVIDED IN A CONTRACT BETWEEN GRANTOR AND GRANTEE OR AS OTHERWISE PROVIDED IN THIS SECTION. If the grantor has failed to pay the tax imposed by this article at the time required by section fourteen hundred ten of this article or if the grantor is exempt from such tax, the gran- tee shall have the duty to pay the tax. Where the grantee has the duty to pay the tax because the grantor has failed to pay, such tax shall be the joint and several liability of the grantor and the grantee; PROVIDED THAT IN THE EVENT OF SUCH FAILURE, THE GRANTEE SHALL HAVE A CAUSE OF ACTION AGAINST THE GRANTOR FOR RECOVERY OF PAYMENT OF SUCH TAX, INTEREST AND PENALTIES BY THE GRANTEE. IN THE CASE OF A CONVEYANCE OF RESIDEN- TIAL REAL PROPERTY AS DEFINED IN SUBDIVISION (A) OF SECTION FOURTEEN HUNDRED TWO-A OF THIS ARTICLE, IF THE TAX IMPOSED BY THIS ARTICLE IS PAID BY THE GRANTEE PURSUANT TO A CONTRACT BETWEEN THE GRANTOR AND THE GRANTEE, THE AMOUNT OF SUCH TAX SHALL BE EXCLUDED FROM THE CALCULATION OF CONSIDERATION SUBJECT TO TAX UNDER THIS ARTICLE. S. 2509--A 169 A. 3009--A § 3. Subdivision (a) of section 1409 of the tax law, as amended § 3. Subdivision (a) of section 1409 of the tax law, as amended by chapter 297 of the laws of 2019, is amended to read as follows: (a) (1) A joint return shall be filed by both the grantor and the grantee for each conveyance whether or not a tax is due thereon other than a conveyance of an easement or license to a public utility as defined in subdivision two of section one hundred eighty-six-a of this chapter or to a public utility which is a provider of telecommunication services as defined in subdivision one of section one hundred eighty- six-e of this chapter, where the consideration is two dollars or less and is clearly stated as actual consideration in the instrument of conveyance. (2) When the grantor or grantee of a deed for A BUILDING USED AS resi- dential real property containing [one- to four-] UP TO FOUR family dwelling units is a limited liability company, the joint return shall not be accepted for filing unless it is accompanied by a document which identifies the names and business addresses of all members, managers, and any other authorized persons, if any, of such limited liability company and the names and business addresses or, if none, the business addresses of all shareholders, directors, officers, members, managers and partners of any limited liability company or other business entity that are to be the members, managers or authorized persons, if any, of such limited liability company. The identification of such names and addresses shall not be deemed an unwarranted invasion of personal priva- cy pursuant to article six of the public officers law. If any such member, manager or authorized person of the limited liability company is itself a limited liability company or other business entity OTHER THAN A PUBLICLY TRADED ENTITY, A REIT, A UPREIT, OR A MUTUAL FUND, the names and addresses of the shareholders, directors, officers, members, manag- ers and partners of the limited liability company or other business entity shall also be disclosed until full disclosure of ultimate owner- ship by natural persons is achieved. For purposes of this subdivision, the terms "members", "managers", "authorized person", "limited liability company" and "other business entity" shall have the same meaning as those terms are defined in section one hundred two of the limited liability company law. (3) The return shall be filed with the recording officer before the instrument effecting the conveyance may be recorded. However, if the tax is paid to the commissioner pursuant to section fourteen hundred ten of this article, the return shall be filed with such commissioner at the time the tax is paid. In that instance, a receipt evidencing the filing of the return and the payment of tax shall be filed with the recording officer before the instrument effecting the conveyance may be recorded. The recording officer shall handle such receipt in the same manner as a return filed with the recording officer. § 4. Subdivision (h) of section 1418 of the tax law, as added by section 7 of part X of chapter 56 of the laws of 2010 and as further amended by subdivision (c) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (h) Notwithstanding the provisions of subdivision (a) of this section, the commissioner may furnish information relating to real property transfers obtained or derived from returns filed pursuant to this arti- cle in relation to the real estate transfer tax, to the extent that such information is also required to be reported to the commissioner by section three hundred thirty-three of the real property law and section five hundred seventy-four of the real property tax law and the rules S. 2509--A 170 A. 3009--A adopted thereunder, provided such information was collected through a combined process established pursuant to an agreement entered into with the commissioner pursuant to paragraph viii of subdivision one-e of section three hundred thirty-three of the real property law. The commis- sioner may redisclose such information to the extent authorized by section five hundred seventy-four of the real property tax law. THE COMMISSIONER MAY ALSO DISCLOSE ANY INFORMATION REPORTED PURSUANT TO PARAGRAPH TWO OF SUBDIVISION (A) OF SECTION FOURTEEN HUNDRED NINE OF THIS ARTICLE. § 5. This act shall take effect immediately; provided however that sections one and two of this act shall take effect July 1, 2021, and shall apply to conveyances occurring on or after such date other than conveyances that are made pursuant to binding written contracts entered into on or before April 1, 2021, provided that the date of execution of such contract is confirmed by independent evidence, such as the record- ing of the contract, payment of a deposit or other facts and circum- stances as determined by the commissioner of taxation and finance. PART P Section 1. Section 480-a of the tax law is amended by adding a new subdivision 6 to read as follows: 6. (A) NO RETAIL DEALER WHO HAS ITS RETAIL DEALER REGISTRATION CANCELLED, SUSPENDED OR REVOKED PURSUANT TO THIS SECTION OR HAS BEEN FORBIDDEN FROM SELLING CIGARETTES OR TOBACCO PRODUCTS PURSUANT TO PARA- GRAPH (J) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY OF THIS ARTICLE SHALL POSSESS CIGARETTES OR TOBACCO PRODUCTS IN ANY PLACE OF BUSINESS, CART, STAND, TRUCK OR OTHER MERCHANDISING DEVICE IN THIS STATE BEGINNING ON THE TENTH DAY AFTER SUCH CANCELLATION, SUSPENSION, REVOCA- TION, OR FORBIDDANCE AND CONTINUING FOR THE DURATION OF THE SAME; PROVIDED HOWEVER, SUCH RETAIL DEALER SHALL NOT BE PROHIBITED BEFORE THE TENTH DAY AFTER SUCH CANCELLATION, SUSPENSION, REVOCATION, OR FORBID- DANCE FROM SELLING OR TRANSFERRING ITS INVENTORY OF LAWFULLY STAMPED CIGARETTES OR TOBACCO PRODUCTS ON WHICH THE TAXES IMPOSED BY THIS ARTI- CLE HAVE BEEN ASSUMED OR PAID TO A PROPERLY REGISTERED RETAIL DEALER WHOSE REGISTRATION IS NOT CANCELLED, SUSPENDED, OR REVOKED OR WHO HAS NOT BEEN FORBIDDEN FROM SELLING CIGARETTES OR TOBACCO PRODUCTS. (B) NO RETAIL DEALER SHALL POSSESS CIGARETTES OR TOBACCO PRODUCTS IN ANY PLACE OF BUSINESS, CART, STAND, TRUCK OR OTHER MERCHANDISING DEVICE IN THIS STATE UNLESS IT HAS OBTAINED A VALID RETAIL DEALER REGISTRATION FROM THE COMMISSIONER. (C) THE POSSESSION OF CIGARETTES OR TOBACCO PRODUCTS IN VIOLATION OF PARAGRAPH (A) OR (B) OF THIS SUBDIVISION SHALL BE PRESUMPTIVE EVIDENCE THAT SUCH CIGARETTES OR TOBACCO PRODUCTS ARE BEING SOLD IN VIOLATION OF THIS SECTION AND SECTION FOUR HUNDRED EIGHTY OF THIS ARTICLE AND, IN ADDITION TO ANY OTHER APPLICABLE PENALTIES, SHALL BE SUBJECT TO THE PENALTIES AUTHORIZED BY SUBDIVISION THREE OF THIS SECTION. § 2. Subparagraph (A) of paragraph (4) of subdivision (a) of section eleven hundred thirty-four of the tax law, as amended by chapter 59 of the laws of 2020, 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) willfully 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 subdi- vision (e) of section eleven hundred thirty-seven of this article, (iv) S. 2509--A 171 A. 3009--A willfully fails to prepay, collect, truthfully account for or pay over any tax imposed under this article or pursuant to the authority of arti- cle 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 commission- er pursuant to paragraph three of such subdivision, (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 registration issued pursuant to section four hundred eighty-a of this chapter revoked pursuant to subparagraph (iii) of paragraph (a) of subdivision four of such section four hundred eighty-a, OR (VIII) HAS NOT OBTAINED A VALID RETAIL DEALER REGISTRATION UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER AND SUCH PERSON POSSESSES OR SELLS UNSTAMPED OR UNLAWFULLY STAMPED PACKAGES OF CIGARETTES THREE OR MORE TIMES WITHIN A PERIOD OF FIVE YEARS, 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 (A) 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 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, OR (B) THE GROUNDS SET FORTH IN CLAUSE (VIII) OF THIS SUBPARA- GRAPH, SUCH SUSPENSION OR REVOCATION SHALL BE FOR A PERIOD OF FIVE YEARS. § 3. Subparagraph (B) of paragraph (4) of subdivision (a) of section eleven hundred thirty-four of the tax law, as amended by chapter 59 of the laws of 2020, 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 S. 2509--A 172 A. 3009--A 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, (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 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 subparagraph (iii) of paragraph (a) of subdivi- sion four of such section four hundred eighty-a, where such revocation remains in effect, OR (VIII) SUCH PERSON HAS NOT OBTAINED A VALID RETAIL DEALER REGISTRATION UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER AND HAS POSSESSED OR SOLD UNSTAMPED OR UNLAWFULLY STAMPED PACKAGES OF CIGARETTES THREE OR MORE TIMES WITHIN A PERIOD OF FIVE YEARS, the commissioner may refuse to issue a certificate of authority; PROVIDED HOWEVER THAT UNDER THE CIRCUMSTANCES DESCRIBED IN CLAUSE (VIII) OF THIS SUBPARAGRAPH, SUCH PERSON SHALL NOT BE ELIGIBLE TO SUBMIT A CERTIFICATE OF REGISTRATION FOR A CERTIFICATE OF AUTHORITY UNTIL FIVE YEARS AFTER ITS LAST POSSESSION OR SALE OF UNSTAMPED OR UNLAWFULLY STAMPED PACKAGES OF CIGARETTES WITHIN SUCH FIVE YEAR PERIOD. § 4. Any retail dealer who, prior to the effective date of this act, had its retail dealer registration cancelled, suspended, or revoked pursuant to section four hundred eighty-a of the tax law or was forbid- den from selling cigarettes or tobacco products pursuant to paragraph (j) of subdivision one of section four hundred eighty of the tax law and such cancellation, suspension, revocation, or forbiddance remains in effect as of the effective date of this act, shall be prohibited from possessing cigarettes and tobacco products beginning on the tenth day after the effective date of this act and continuing for as long as such cancellation, suspension, revocation, or forbiddance shall remain in effect; provided however, such retail dealer shall not be prohibited before the tenth day after the effective date of this act from selling or transferring its inventory of lawfully stamped cigarettes or tobacco products on which the taxes imposed by this article have been assumed or paid to a properly registered retail dealer whose registration is not cancelled, suspended, or revoked or who has not been forbidden from selling cigarettes or tobacco products. § 5. This act shall take effect immediately. PART Q Section 1. Subdivision 1 of section 429 of the tax law, as amended by chapter 433 of the laws of 1978, is amended to read as follows: 1. Every distributor, noncommercial importer or other person shall, on or before the twentieth day of each month, file with the department of taxation and finance a return, on forms to be prescribed by the [tax commission] COMMISSIONER and furnished by such department, stating sepa- S. 2509--A 173 A. 3009--A rately the number of gallons, or lesser quantity, of beers, and the number of liters, or lesser quantity, of wines and liquors sold or used by such distributor, noncommercial importer or other person in this state during the preceding calendar month, except that the [tax commis- sion] COMMISSIONER may, if [it] HE OR SHE deems it necessary [in order] to [insure] FACILITATE the EFFICIENT REPORTING AND payment of the tax imposed by this article, require returns to be made at such times and covering such periods as [it] HE OR SHE may deem necessary. Such return shall contain such further information as the [tax commission] COMMIS- SIONER shall require. The fact that the name of the distributor, noncom- mercial importer or other person is signed to a filed return shall be prima facie evidence for all purposes that the return was actually signed by such distributor, noncommercial importer or other person. § 2. Section 505 of the tax law, as amended by section 2 of part E of chapter 60 of the laws of 2007, is amended to read as follows: § 505. Returns. Every carrier subject to this article and every carri- er to whom a certificate of registration was issued shall file on or before the last day of each month a return for the preceding calendar month where a carrier's total tax liability under this article for the preceding calendar year exceeded [four] TWELVE thousand dollars. Where a carrier's total tax liability under this article for the preceding calendar year did not exceed [four] TWELVE thousand dollars or where a carrier was not subject to such tax in the preceding calendar year, returns shall be filed quarterly, on or before the last day of the calendar month following each of the calendar quarters: January through March, April through June, July through September and October through December. Provided, however, if the commissioner consents thereto in writing, any carrier may file a return on or before the thirtieth day after the close of any different period, if the carrier's books are regularly kept on a periodic basis other than a calendar month or quar- ter. The commissioner may permit the filing of returns on an annual basis, provided the carrier was subject to the tax under this article during the entire preceding calendar year and the carrier's total tax liability under this article for such year did not exceed [two hundred fifty] TWELVE HUNDRED dollars. Such annual returns shall be filed on or before January thirty-first of the succeeding calendar year. Returns shall be filed with the commissioner on forms to be furnished by such commissioner for such purpose and shall contain such data, information or matter as the commissioner may require to be included therein. The fact that a carrier's name is signed to a filed return shall be prima facie evidence for all purposes that the return was actually signed by such carrier. The commissioner may grant a reasonable extension of time for filing returns whenever good cause exists and may waive the filing of returns if a carrier is not subject to the tax imposed by this arti- cle for the period covered by the return. Every return shall have annexed thereto a certification to the effect that the statements contained therein are true. § 3. This act shall take effect immediately; provided, however, that section two of this act shall apply to tax returns for taxable periods beginning on or after January 1, 2022. PART R Section 1. Section 1280 of the tax law is amended by adding a new subdivision (v) to read as follows: S. 2509--A 174 A. 3009--A (V) "TECHNOLOGY SERVICE PROVIDER" OR "TSP" MEANS A PERSON THAT ACTS BY EMPLOYMENT, CONTRACT OR OTHERWISE ON BEHALF OF ONE OR MORE TAXICAB OWNERS OR HAIL VEHICLE OWNERS TO COLLECT THE TRIP RECORD FOR A TAXICAB TRIP OR HAIL VEHICLE TRIP. § 2. Subdivision (b) of section 1283 of the tax law, as amended by chapter 9 of the laws of 2012, is amended to read as follows: (b) (1) If the taxicab owner has designated an agent, then the agent shall be jointly liable with the taxicab owner for the tax on trips occurring during the period that such designation is in effect. Even if the TLC has specified that the taxicab owner's agent cannot operate as an agent, that agent shall be jointly liable with the taxicab owner if the agent has acted for the taxicab owner. During the period that a taxicab owner's designation of an agent is in effect, the agent shall file the returns required by this article and pay any tax due with such return, but the taxicab owner shall not be relieved of liability for tax, penalty or interest due under this article, or for the filing of returns required to be filed, unless the agent has timely filed accurate returns and timely paid the tax required to be paid under this article. If a taxicab owner has designated an agent, then the agent must perform any act this article requires the taxicab owner to perform, but the failure of such agent to perform any such act shall not relieve the taxicab owner from the obligation to perform such act or from any liability that may arise from failure to perform the act. (2) (A) NOTWITHSTANDING THE FOREGOING, A TSP THAT COLLECTS THE TRIP RECORD AND THE TRIP FARE ON BEHALF OF A TAXICAB OWNER OR A HAIL VEHICLE OWNER SHALL BE JOINTLY LIABLE WITH THE TAXICAB OWNER OR HAIL VEHICLE OWNER FOR THE TAX DUE ON SUCH TRIPS. FOR ANY PERIOD THAT THE TSP COLLECTS TRIP RECORDS ON BEHALF OF A TAXICAB OWNER OR HAIL VEHICLE OWNER, THE TSP SHALL FILE RETURNS REPORTING ALL TRIP RECORDS AND, AFTER RETAINING ANY FEES TO WHICH IT IS ENTITLED PURSUANT TO A CONTRACT WITH SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, SHALL REMIT THE TAXES DUE ON ALL FARES COLLECTED BY THE TSP. (B) THE TSP, AFTER RETAINING THE FEES DESCRIBED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, SHALL ALSO REMIT THE TAXES DUE ON ANY TAXICAB TRIP OR HAIL VEHICLE TRIP FOR WHICH IT MAINTAINED THE TRIP RECORD BUT DID NOT COLLECT THE FARE, FROM ANY FARES IT COLLECTED ON BEHALF OF ANY SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, BEFORE IT RELEASES ANY PROCEEDS TO THE TAXICAB OWNER OR HAIL VEHICLE OWNER. IF THE TSP FAILS TO COMPLY WITH THE REQUIREMENTS OF THIS SUBPARAGRAPH, SUCH TSP SHALL BE LIABLE FOR THE TAXES DUE ON SUCH TRIPS UP TO THE AMOUNT IT RELEASED TO THE TAXICAB OWNER OR HAIL VEHICLE OWNER, OR ANY PERSON ON BEHALF OF SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER. HOWEVER, THE TAXICAB OWNER, HAIL VEHICLE OWNER OR THEIR AGENTS SHALL NOT BE RELIEVED OF ANY LIABILITY FOR THE TAX, PENALTY OR INTEREST DUE UNDER THIS ARTICLE, OR FOR FILING OF RETURNS REQUIRED TO BE FILED, UNLESS THE TSP HAS TIMELY FILED ACCURATE RETURNS AND TIMELY PAID THE TAX REQUIRED TO BE PAID UNDER THIS ARTICLE. § 3. Subdivision (a) of section 1299-B of the tax law, as added by section 2 of part NNN of chapter 59 of the laws of 2018, is amended to read as follows: (a) Notwithstanding any provision of law to the contrary, any person that dispatches a motor vehicle by any means that provides transporta- tion that is subject to a surcharge imposed by this article, including transportation network companies as defined in article forty-four-B of the vehicle and traffic law, shall be liable for the surcharge imposed by this article, except that in the case of taxicab trips and HAIL vehi- cle trips that are also subject to tax pursuant to article twenty-nine-A S. 2509--A 175 A. 3009--A of this chapter[, only the taxicab owner or HAIL base liable for that tax shall be the person liable for the surcharge imposed by this arti- cle]: (1) THE TSP SHALL BE LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE FOR ALL TRIPS FOR WHICH THE TSP COLLECTED THE TRIP RECORD AND THE SURCHARGE, AND SHALL BE RESPONSIBLE FOR FILING RETURNS; AND, AFTER RETAINING ANY FEES TO WHICH IT IS ENTITLED PURSUANT TO A CONTRACT WITH SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, SHALL REMIT THE SURCHARGES ON SUCH TRIPS TO THE DEPARTMENT. (2) THE TSP, AFTER RETAINING THE FEES DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION, SHALL ALSO REMIT THE SURCHARGES DUE ON ANY TAXICAB TRIP OR HAIL VEHICLE TRIP FOR WHICH IT MAINTAINED THE TRIP RECORD BUT DID NOT COLLECT THE FARE, FROM ANY FARES IT COLLECTED ON BEHALF OF ANY SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, BEFORE IT RELEASES ANY PROCEEDS TO THE TAXICAB OWNER OR HAIL VEHICLE OWNER. WHENEVER THE TSP FAILS TO COMPLY WITH THE REQUIREMENTS OF THE PRECEDING SENTENCE, THE TSP SHALL BE LIABLE FOR THE SURCHARGES DUE ON SUCH TRIPS UP TO THE AMOUNT IT RELEASED TO THE TAXICAB OWNER OR HAIL VEHICLE OWNER, OR ANY PERSON ON BEHALF OF SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER. HOWEVER, THE TAXI- CAB OWNER OR HAIL BASE SHALL BE JOINTLY AND SEVERALLY LIABLE WITH THE TSP FOR SUCH SURCHARGES. For purposes of this section, the terms "taxi- cab trips," "HAIL vehicle trips," "taxicab owner," [and] "HAIL base", AND "TSP" shall have the same meaning as they do in section twelve hundred eighty of this chapter. § 4. Section 1299-F of the tax law is amended by adding a new subdivi- sion (e) to read as follows: (E) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, PERMIT THE PROPER OFFI- CER OF THE TAXI AND LIMOUSINE COMMISSION OF THE CITY OF NEW YORK (TLC) OR THE DULY AUTHORIZED REPRESENTATIVE OF SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR SUCH OFFICER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH PERSON WITH INFORMATION CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF TAX LIABILITY UNDER THIS ARTICLE; BUT SUCH PERMISSION SHALL BE GRANTED OR SUCH INFORMATION FURNISHED ONLY IF THE TLC SHALL HAVE FURNISHED THE COMMISSIONER WITH ALL INFORMATION REQUESTED BY THE COMMISSIONER PURSUANT TO THIS ARTICLE AND SHALL HAVE PERMITTED THE COMMISSIONER OR THE COMMISSIONER'S AUTHORIZED REPRESENTATIVE TO MAKE ANY INSPECTION OF ANY RECORDS OR REPORTS CONCERN- ING FOR-HIRE TRANSPORTATION TRIPS SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, AND ANY PERSONS REQUIRED TO COLLECT SUCH SURCHARGE, FILED WITH OR POSSESSED BY THE TLC THAT THE COMMISSIONER MAY HAVE REQUESTED FROM THE TLC. PROVIDED, FURTHER, THAT THE COMMISSIONER MAY DISCLOSE TO THE TLC WHETHER OR NOT A PERSON LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE HAS PAID ALL OF THE SURCHARGES DUE UNDER THIS ARTICLE AS OF ANY GIVEN DATE. § 5. This act shall take effect immediately and shall apply to trips occurring on or after July 1, 2021. PART S Section 1. Paragraph 1 of subdivision (g) of section 32 of the tax law, as added by section 2 of part VV of chapter 59 of the laws of 2009, is amended to read as follows: (1) If a tax return preparer or facilitator is required to register or re-register with the department pursuant to paragraph one or three of subdivision (b) of this section, as applicable, and fails to do so in S. 2509--A 176 A. 3009--A accordance with the terms of this section, then the tax return preparer [of] OR facilitator must pay a penalty of [two] FIVE hundred [fifty] dollars FOR THE FIRST DAY OF NON-COMPLIANCE AND TWO HUNDRED DOLLARS FOR EACH SUBSEQUENT DAY OF NON-COMPLIANCE THEREAFTER. THE MAXIMUM PENALTY THAT MAY BE IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER OR FACILITATOR DURING ANY CALENDAR YEAR MUST NOT EXCEED TEN THOUSAND DOLLARS. [Provided, however, that if the tax return preparer or facili- tator complies with the registration requirements of this section within ninety calendar days after notification of assessment of this penalty is sent by the department, then this penalty must be abated. If the tax return preparer or facilitator continues to fail to register or re-re- gister after the ninety calendar day period, the tax return preparer or facilitator must pay an additional penalty of five hundred dollars if the failure is for not more than one month, with an additional five hundred dollars for each additional month or fraction thereof during which the failure continues. Once the ninety calendar days specified in this paragraph have expired, the] THE penalty can be waived only for good cause shown by the tax return preparer or facilitator. § 2. Paragraph 2 of subdivision (g) of section 32 of the tax law, as added by section 2 of part VV of chapter 59 of the laws of 2009, is amended to read as follows: (2) If a commercial tax return preparer fails to pay the fee as required in paragraph one of subdivision (c) of this section, for a calendar year, then the commercial tax return preparer must pay a penal- ty of fifty dollars for each return the commercial tax return preparer has filed with the department in that calendar year. [Provided however, that if the commercial tax return preparer complies with the payment requirements of paragraph one of subdivision (c) of this section, within ninety calendar days after notification of the assessment of this penal- ty is sent by the department, then this penalty must be abated.] The maximum penalty that may be imposed under this paragraph on any commer- cial tax return preparer during any calendar year must not exceed [five] TEN thousand dollars. [Once the ninety calendar days specified in this paragraph have expired, the] THE penalty can be waived only for good cause shown by the commercial tax return preparer. § 3. Section 32 of the tax law is amended by adding a new subdivision (h) to read as follows: (H) (1) TAX RETURN PREPARERS AND FACILITATORS MUST PROMINENTLY AND CONSPICUOUSLY DISPLAY A COPY OF THEIR REGISTRATION CERTIFICATE ISSUED PURSUANT TO THIS SECTION, FOR THE CURRENT REGISTRATION PERIOD, AT THEIR PLACE OF BUSINESS AND AT ANY OTHER LOCATION WHERE THEY PROVIDE TAX RETURN PREPARATION AND/OR FACILITATION SERVICES, IN AN AREA WHERE TAXPAYERS USING THEIR SERVICES ARE ABLE TO SEE AND REVIEW SUCH REGISTRA- TION CERTIFICATE. (2) TAX RETURN PREPARERS AND FACILITATORS MUST PROMINENTLY AND CONSPICUOUSLY DISPLAY AT THEIR PLACE OF BUSINESS AND AT ANY OTHER LOCATION WHERE THEY PROVIDE TAX RETURN PREPARATION AND/OR FACILITATION SERVICES THE FOLLOWING DOCUMENTS: (A) A CURRENT PRICE LIST, IN AT LEAST FOURTEEN-POINT TYPE, THAT INCLUDES, BUT IS NOT LIMITED TO, A LIST OF ALL SERVICES OFFERED BY THE TAX RETURN PREPARER AND/OR FACILITATOR; THE MINIMUM FEE CHARGED FOR EACH SERVICE, INCLUDING THE FEE CHARGED FOR EACH TYPE OF FEDERAL OR NEW YORK STATE TAX RETURN TO BE PREPARED AND FACILITATION SERVICE TO BE PROVIDED; AND A LIST OF EACH FACTOR THAT MAY INCREASE A STATED FEE AND THE SPECIF- IC ADDITIONAL FEES OR RANGE OF POSSIBLE ADDITIONAL FEES WHEN EACH FACTOR APPLIES; AND S. 2509--A 177 A. 3009--A (B) A COPY OF THE MOST RECENT CONSUMER BILL OF RIGHTS REGARDING TAX PREPARERS PUBLISHED BY THE DEPARTMENT PURSUANT TO SECTION THREE HUNDRED SEVENTY-TWO OF THE GENERAL BUSINESS LAW. (3) A TAX RETURN PREPARER OR FACILITATOR WHO FAILS TO COMPLY WITH ANY OF THE REQUIREMENTS OF THIS SUBDIVISION MUST PAY A PENALTY OF FIVE HUNDRED DOLLARS FOR THE FIRST DAY OF NON-COMPLIANCE AND TWO HUNDRED DOLLARS FOR EACH SUBSEQUENT DAY OF NON-COMPLIANCE THEREAFTER. THE MAXI- MUM PENALTY THAT MAY BE IMPOSED UNDER THIS SUBDIVISION ON ANY TAX RETURN PREPARER OR FACILITATOR DURING ANY CALENDAR YEAR MUST NOT EXCEED TEN THOUSAND DOLLARS. THE PENALTY CAN BE WAIVED ONLY FOR GOOD CAUSE SHOWN BY THE TAX RETURN PREPARER OR FACILITATOR. § 4. Subdivision (g) of section 32 of the tax law, as added by section 2 of part VV of chapter 59 of the laws of 2009, is relettered subdivi- sion (i). § 5. This act shall take effect immediately; provided, however, that paragraph (3) of subdivision (h) of section 32 of the tax law, as added by section three of this act, shall take effect January 1, 2022. PART T Section 1. Section 2016 of the tax law, as amended by chapter 401 of the laws of 1987, is amended to read as follows: § 2016. Judicial review. A decision of the tax appeals tribunal, which is not subject to any further administrative review, shall finally and irrevocably decide all the issues which were raised in proceedings before the division of tax appeals upon which such decision is based unless, within four months after notice of such decision is served by the tax appeals tribunal upon every party to the proceeding before such tribunal by certified mail or personal service, the petitioner who commenced the proceeding [petitions] OR THE COMMISSIONER, OR BOTH, PETI- TION for judicial review in the manner provided by article seventy-eight of the civil practice law and rules, except as otherwise provided in this [section] CHAPTER. Such service by certified mail shall be complete upon deposit of such notice, enclosed in a post-paid properly addressed wrapper, in a post office or official depository under the exclusive care and custody of the United States postal service. [The] WHERE THE petitioner WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION shall designate the tax appeals tribunal and the commissioner [of taxation and finance] as respondents in the proceeding for judicial review. WHERE THE COMMISSIONER FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION SHALL DESIGNATE THE TAX APPEALS TRIBUNAL AND THE PETITIONER WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS AS RESPOND- ENTS IN THE PROCEEDING FOR JUDICIAL REVIEW. The tax appeals tribunal shall not participate in proceedings for judicial review of its deci- sions and such proceedings for judicial review shall be commenced in the appellate division of the supreme court, third department. In all other respects the provisions and standards of article seventy-eight of the civil practice law and rules shall apply. The record to be reviewed in such proceedings for judicial review shall include the determination of the administrative law judge, the decision of the tax appeals tribunal, the stenographic transcript of the hearing before the administrative law judge, the transcript of any oral proceedings before the tax appeals tribunal and any exhibit or document submitted into evidence at any proceeding in the division of tax appeals upon which such decision is based. S. 2509--A 178 A. 3009--A § 2. This act shall take effect immediately and shall apply to deci- sions and orders issued by the tax appeals tribunal on or after such date. PART U Section 1. Paragraphs i and v 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, are amended to read as follows: i. A recording officer shall not record or accept for [record] RECORD- ING any conveyance of real property affecting land in New York state unless accompanied by ONE OF THE FOLLOWING: (1) A RECEIPT ISSUED BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW; OR (2) 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. 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 provision of law to the contrary, affirmants may be allowed, but shall not be required, to sign such affirmations electronically. § 2. Paragraphs vii and viii of subdivision 1-e of section 333 of the real property law are REPEALED. § 3. 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 subdivision (d) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 3. [The] (I) WHEN A recording officer [of every county and the city of New York] IS PRESENTED WITH A CONVEYANCE FOR RECORDING THAT IS ACCOMPA- NIED BY A RECEIPT ISSUED BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW, SUCH RECORDING OFFICER SHALL BE RELIEVED OF THE RESPONSI- BILITY TO COLLECT THE FEE DESCRIBED BY THIS SUBDIVISION. HE OR SHE SHALL NONETHELESS BE ENTITLED TO THE PORTION OF SUCH FEE THAT HE OR SHE WOULD OTHERWISE HAVE DEDUCTED PURSUANT TO THIS SUBDIVISION, AS PROVIDED S. 2509--A 179 A. 3009--A BY SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW. (II) WHEN A RECORDING OFFICER IS PRESENTED WITH A CONVEYANCE FOR RECORDING THAT IS NOT ACCOMPANIED BY SUCH A RECEIPT, HE OR SHE 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 para- graph 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 SUBPARAGRAPH TWO OF PARAGRAPH I OF 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 twen- ty-one of title eleven of the administrative code of the city of New York, except where a real property transfer reporting form is also submitted for recording for the transfer as required under SUBPARAGRAPH TWO OF PARAGRAPH I OF 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. § 4. Subsection (d) of section 663 of the tax law, as amended by section 1 of part P of chapter 686 of the laws of 2003, is amended to read as follows: (d) A recording officer shall not record or accept for [record] RECORDING any deed unless ONE OF THE FOLLOWING CONDITIONS IS SATISFIED: (1) IT IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMISSIONER INDICAT- ING THAT THE ESTIMATED TAX REQUIRED BY THIS SECTION HAS BEEN PAID TO THE COMMISSIONER EITHER ELECTRONICALLY OR AS OTHERWISE PRESCRIBED BY HIM OR HER; (2) IT IS accompanied by a form prescribed by the commissioner pursu- ant to subsection (b) of this section and the payment of any estimated tax shown as payable on such form[,]; or [unless] (3) such RECEIPT OR form includes a certification by the transferor that this section is inapplicable to the sale or transfer. § 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] 1. WHEN A recording officer designated to act as such agent IS PRESENTED WITH A CONVEYANCE FOR RECORDING THAT IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMISSIONER PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THIS ARTICLE, SUCH RECORDING OFFICER SHALL BE RELIEVED OF THE RESPONSIBILITY TO COLLECT THE REAL ESTATE TRANSFER TAX THEREON. HE OR SHE SHALL NONETHELESS BE ENTITLED TO THE PORTION OF SUCH TAX THAT HE OR SHE WOULD OTHERWISE HAVE RETAINED PURSUANT TO THIS SUBDIVISION, AS PROVIDED BY SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW. 2. WHEN A RECORDING OFFICER IS PRESENTED WITH A CONVEYANCE FOR RECORD- ING THAT IS NOT ACCOMPANIED BY A RECEIPT DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION, HE OR SHE SHALL COLLECT THE APPLICABLE REAL ESTATE TRANSFER TAX AND 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 S. 2509--A 180 A. 3009--A 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 effecting 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 taxation 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 regu- lations of the commissioner 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. § 6. Subdivision (b) of 1409 of the tax law, as added by chapter 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 THIS 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 ONE OF THE FOLLOWING CONDITIONS IS SATISFIED: (1) THE INSTRUMENT IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMIS- SIONER PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY- THREE OF THIS ARTICLE; OR (2) the return required by section fourteen hundred nine of this arti- cle has been filed and the real estate transfer tax due, if any, shall have been paid as provided in this section. § 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, S. 2509--A 181 A. 3009--A THE COMMISSIONER MAY COMBINE THE TWO FORMS REFERRED TO IN PARAGRAPH ONE OF THIS SUBDIVISION INTO A CONSOLIDATED REAL PROPERTY TRANSFER FORM TO BE FILED WITH HIM OR HER ELECTRONICALLY; PROVIDED: (1) 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 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. (2) 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. (3) WHEN A CONSOLIDATED REAL PROPERTY TRANSFER FORM IS ELECTRONICALLY SUBMITTED TO THE DEPARTMENT BY EITHER THE GRANTOR OR GRANTEE OR A DULY AUTHORIZED AGENT THEREOF, 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 S. 2509--A 182 A. 3009--A 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 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 SHALL NOTIFY THE COMMISSIONER THAT SUCH JURISDICTION WILL FOLLOW THE SYSTEM AUTHORIZED PURSUANT TO THIS SECTION TO BE USED THEREIN, IN WRITING. § 9. This act shall take effect immediately. PART V Section 1. This Part enacts into law components of legislation relat- ing to the administration of the STAR program authorized by section 425 of the real property tax law and subsection (eee) of section 606 of the tax law. Each component is wholly contained within a Subpart identified as Subparts A through E. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes refer- ence to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corre- sponding section of the Subpart in which it is found. Section three of this Part sets forth the general effective date of this Part. SUBPART A Section 1. Paragraphs (a) and (b) of subdivision 16 of section 425 of the real property tax law, as amended by section 5 of part A of chapter 73 of the laws of 2016, are amended to read as follows: (a) Beginning with assessment rolls used to levy school district taxes for the two thousand sixteen--two thousand seventeen school year, no application for an exemption under this section may be approved unless at least one of the applicants held title to the property on the taxable S. 2509--A 183 A. 3009--A status date of the assessment roll that was used to levy school district taxes for the two thousand fifteen--two thousand sixteen school year and the property was granted an exemption pursuant to this section on that assessment roll. IN ADDITION, BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR, NO APPLICATION FOR A NEW ENHANCED EXEMPTION UNDER SUBDIVISION FOUR OF THIS SECTION MAY BE APPROVED. In the event that an application is submitted to the assessor that cannot be approved due to this restriction, the assessor shall notify the applicant that he or she is required by law to deny the application, but that, in lieu of a STAR exemption, the applicant may claim the personal income tax credit authorized by subsection (eee) of section six hundred six of the tax law if eligible, and that the applicant may contact the department of taxa- tion and finance for further information. The commissioner shall provide a form for assessors to use, at their option, when making this notification. No STAR exemption may be granted on the basis of an appli- cation that is not approvable due to this restriction. (b) Where property received an exemption pursuant to this section on an assessment roll used to levy school district taxes for the two thou- sand fifteen--two thousand sixteen school year, and at least one of its owners held title to the property on the taxable status date of such assessment roll, the exemption shall continue to be granted on subse- quent assessment rolls without regard to the provisions of this subdivi- sion as long as all applicable requirements of this section are satis- fied. In addition, such exemption shall be subject to modification as follows: (i) A basic STAR exemption shall be changed to an enhanced STAR exemption ON AN ASSESSMENT ROLL USED TO LEVY SCHOOL DISTRICT TAXES FOR A SCHOOL YEAR PRIOR TO THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY- TWO SCHOOL YEAR if the owners and spouses primarily residing on the property file a timely application showing that their ages and incomes meet the requirements of subdivision four of this section. BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR, NO APPLICATION FOR A NEW ENHANCED EXEMPTION UNDER THIS SECTION MAY APPROVED. IN THE EVENT THAT AN APPLICATION IS SUBMITTED TO THE ASSESSOR THAT CANNOT BE APPROVED DUE TO THIS RESTRICTION, THE ASSESSOR SHALL NOTIFY THE APPLI- CANT THAT HE OR SHE IS REQUIRED BY LAW TO DENY THE APPLICATION, BUT THAT THE APPLICANT MAY APPLY FOR AN ENHANCED STAR CREDIT PURSUANT TO PARA- GRAPH FOUR OF SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW IF ELIGIBLE, AND THAT THE APPLICANT MAY CONTACT THE DEPARTMENT OF TAXA- TION AND FINANCE FOR INFORMATION ON HOW TO APPLY FOR THE CREDIT. THE ASSESSOR SHALL FURTHER NOTIFY THE APPLICANT THAT IF HE OR SHE DOES NOT WISH TO SWITCH TO THE CREDIT, HE OR SHE MAY CONTINUE RECEIVING THE BASIC STAR EXEMPTION AS LONG AS THE ELIGIBILITY REQUIREMENTS FOR THAT EXEMPTION CONTINUE TO BE SATISFIED. THE COMMISSIONER SHALL PROVIDE A FORM FOR ASSESSORS TO USE, AT THEIR OPTION, WHEN MAKING THIS NOTIFICA- TION. NO ENHANCED STAR EXEMPTION MAY BE GRANTED ON THE BASIS OF AN APPLICATION THAT IS NOT APPROVABLE DUE TO THIS RESTRICTION. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO PRECLUDE THE RESTORATION OF A PREVIOUSLY-GRANTED ENHANCED STAR EXEMPTION PURSUANT TO SUBPARAGRAPHS (II) OR (III) OF THIS PARAGRAPH. (ii) An enhanced STAR exemption shall be changed to a basic STAR exemption if the combined income of the owners and spouses primarily residing on the property increases above the limit set by subdivision four of this section, subject to the provisions of subparagraph (iii) of S. 2509--A 184 A. 3009--A this paragraph, provided that if their combined income falls below the limit set by subdivision four of this section in the future, AND THEY HAVE NOT SWITCHED TO THE STAR CREDIT, their enhanced STAR exemption may be resumed upon timely application. (iii) A STAR exemption shall be discontinued if the combined income of the owners and spouses primarily residing on the property increases above the limit set by subdivision three of this section, provided that if their income falls below such limit in the future, AND THEY HAVE NOT SWITCHED TO THE STAR CREDIT, their STAR exemption may be resumed upon timely application. (iv) A STAR exemption shall be permanently discontinued if the owners fail to satisfy the applicable residency or ownership requirement, or both. § 2. This act shall take effect immediately. SUBPART B Section 1. Subparagraph (i) of paragraph (c) of subdivision 17 of section 425 of the real property tax law, as added by section 2 of part G of chapter 39 of the laws of 2019, is amended to read as follows: (i) A STAR credit switch may be deferred if the application for the credit is submitted after a cutoff date set by the commissioner. When setting a cutoff date, the commissioner shall take into account the time required to ensure that the STAR exemptions of all STAR credit appli- cants in the assessing unit will be removed before school tax bills are prepared. The commissioner shall specify the applicable cutoff dates after taking into account local assessment calendars, provided that different cutoff dates may be set for municipalities with different assessment calendars, and provided further that any such cutoff date may be no earlier than the [fifteenth] SIXTY-FIRST day prior to the date on which the applicable final assessment roll is required by law to be completed and filed. § 2. This act shall take effect immediately. SUBPART C Section 1. Subsection (c) of section 651 of the tax law, as amended by section 3 of part QQ of chapter 59 of the laws of 2019, is amended to read as follows: (c) Decedents. The return for any deceased individual shall be made and filed by his OR HER executor, administrator, or other person charged with his OR HER property. If a final return of a decedent is for a frac- tional part of a year, the due date of such return shall be the fifteenth day of the fourth month following the close of the twelve- month period which began with the first day of such fractional part of the year. Notwithstanding any provision of law to the contrary, when a return has been filed for a decedent, the commissioner may disclose the decedent's name, address, and the date of death to the director of real property tax services of the county AND TO THE ASSESSOR OF THE ASSESSING UNIT in which the address reported on such return is located. § 2. This act shall take effect immediately. SUBPART D S. 2509--A 185 A. 3009--A Section 1. Paragraphs (b) and (c) of subdivision 2 of section 200-a of the real property tax law, as amended by section 2 of part J of chapter 57 of the laws of 2013, are amended to read as follows: (b) The power to hear and determine reviews relating to determinations made by county equalization agencies, as provided by sections eight hundred sixteen and eight hundred eighteen of this chapter[; and (c) The power to hear and determine reviews relating to determinations of STAR eligibility made by the department of taxation and finance as provided by section four hundred twenty five of this chapter]. § 2. Subdivision 3 of section 200-a of the real property tax law, as added by section 7 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 3. The provisions of section five hundred twenty-five of this chapter shall apply so far as practicable to a hearing conducted by the board of real property tax services pursuant to SECTIONS EIGHT HUNDRED SIXTEEN AND EIGHT HUNDRED EIGHTEEN OF this chapter. § 3. Paragraph (a-2) of subdivision 6 of section 425 of the real prop- erty tax law, as amended by section 1 of part TT of chapter 59 of the laws of 2019, is amended to read as follows: (a-2) Notwithstanding any provision of law to the contrary, where an application for the "enhanced" STAR exemption authorized by subdivision four of this section has not been filed on or before the taxable status date, and the owner believes that good cause existed for the failure to file the application by that date, the owner may, no later than the last day for paying school taxes without incurring interest or penalty, submit a written request to the commissioner asking him or her to extend the filing deadline and grant the exemption. Such request shall contain an explanation of why the deadline was missed, and shall be accompanied by an application, reflecting the facts and circumstances as they existed on the taxable status date. After consulting with the assessor, the commissioner may extend the filing deadline and grant the exemption if the commissioner is satisfied that (i) good cause existed for the failure to file the application by the taxable status date, and that (ii) the applicant is otherwise entitled to the exemption. The commis- sioner shall mail notice of his or her determination to such owner and the assessor. If the determination states that the commissioner has granted the exemption, the [assessor shall thereupon be authorized and directed to correct the assessment roll accordingly, or, if another person has custody or control of the assessment roll, to direct that person to make the appropriate corrections. If the correction is not made before school taxes are levied, the school district authorities shall be authorized and directed to take account of the fact that the commissioner has granted the exemption by correcting the applicant's tax bill and/or issuing a refund accordingly] DETERMINATION SHALL BE IMPLE- MENTED IN THE MANNER PROVIDED BY SUBDIVISION FIFTEEN OF THIS SECTION. § 4. Clauses (C) and (D) of subparagraph (iv) of paragraph (b) of subdivision 4 of section 425 of the real property tax law are REPEALED and a new clause (C) is added to read as follows: (C) IF THE COMMISSIONER DETERMINES THAT THE ENHANCED EXEMPTION SHOULD BE REPLACED WITH A BASIC EXEMPTION BECAUSE THE PROPERTY IS ONLY ELIGIBLE FOR A BASIC EXEMPTION, OR DETERMINES THAT THE ENHANCED EXEMPTION SHOULD BE REMOVED OR DENIED WITHOUT BEING REPLACED WITH A BASIC EXEMPTION BECAUSE THE PROPERTY IS NOT ELIGIBLE FOR EITHER EXEMPTION, HIS OR HER DETERMINATION SHALL BE IMPLEMENTED IN THE MANNER PROVIDED BY SUBDIVISION FIFTEEN OF THIS SECTION. S. 2509--A 186 A. 3009--A § 5. Paragraphs (c) and (d) of subdivision 14 of section 425 of the real property tax law are REPEALED and a new paragraph (c) is added to read as follows: (C) IF THE COMMISSIONER DETERMINES THAT A STAR EXEMPTION SHOULD BE REMOVED OR DENIED FOR ONE OR MORE OF THE REASONS SPECIFIED IN PARAGRAPH (B) OF THIS SUBDIVISION, HIS OR HER DETERMINATION SHALL BE IMPLEMENTED IN THE MANNER PROVIDED BY SUBDIVISION FIFTEEN OF THIS SECTION. § 6. Subdivisions 14-a, 15 and 15-a of section 425 of the real proper- ty tax law are REPEALED and a new subdivision 15 is added to read as follows: 15. REVIEW BY COMMISSIONER. (A) WHEN THE COMMISSIONER DETERMINES PURSUANT TO THIS SECTION THAT A STAR EXEMPTION SHOULD BE GRANTED, DENIED OR MODIFIED, THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL SHALL BE AUTHORIZED AND DIRECTED UPON RECEIPT OF THE COMMISSIONER'S DETERMINATION TO CORRECT SUCH ROLL ACCORD- INGLY. SUCH CORRECTION SHALL BE MADE WITHOUT REGARD TO THE PROVISIONS OF TITLE THREE OF ARTICLE FIVE OF THIS CHAPTER OR ANY COMPARABLE LAWS GOVERNING THE CORRECTION OF ERRORS ON ASSESSMENT ROLLS AND TAX ROLLS, AND SHALL BE MADE WITHOUT REQUESTING ADDITIONAL DOCUMENTATION OR THE APPROVAL OF ANY OTHER PARTY. IN ADDITION: (B) IF THE COMMISSIONER'S DETERMINATION DIRECTS THE GRANTING OF A STAR EXEMPTION TO A PROPERTY OWNER, OR IS OTHERWISE FAVORABLE TO THE PROPERTY OWNER: (I) THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL SHALL ATTEMPT TO IMPLEMENT THE COMMISSION- ER'S DETERMINATION PRIOR TO THE LEVY OF SCHOOL TAXES IF POSSIBLE. IF THE CORRECTION IS NOT MADE BEFORE SCHOOL TAXES ARE LEVIED, THE SCHOOL DISTRICT AUTHORITIES SHALL BE AUTHORIZED AND DIRECTED TO IMPLEMENT THE COMMISSIONER'S DETERMINATION BY CORRECTING THE PROPERTY OWNER'S SCHOOL TAX BILL OR BY PROVIDING THE PROPERTY OWNER WITH A CREDIT FOR THE AMOUNT AT ISSUE; PROVIDED THAT IF THE SCHOOL TAX BILL HAS ALREADY BEEN PAID, THE SCHOOL DISTRICT AUTHORITIES SHALL IMPLEMENT THE COMMISSIONER'S DETERMINATION BY ISSUING A REFUND OF THE AMOUNT AT ISSUE. FOR PURPOSES OF THIS SUBDIVISION, THE "AMOUNT AT ISSUE" MEANS THE ADDITIONAL TAX SAVINGS THAT WOULD HAVE APPEARED ON THE PROPERTY OWNER'S SCHOOL TAX BILL IF THE COMMISSIONER'S DETERMINATION HAD BEEN IMPLEMENTED PRIOR TO THE SCHOOL TAX LEVY. (II) ALTERNATIVELY, THE COMMISSIONER IS AUTHORIZED IN HIS OR HER DISCRETION TO REMIT DIRECTLY TO THE PROPERTY OWNER OR OWNERS THE AMOUNT AT ISSUE. WHEN THE COMMISSIONER DOES SO, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES. IN SUCH CASES, NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO CREDIT OR REFUND SHALL BE PROVIDED BY THE SCHOOL AUTHORITIES TO THE PROPERTY OWNER OR HIS OR HER AGENT FOR THE EXCESSIVE AMOUNT OF SCHOOL TAXES PAID FOR THAT SCHOOL YEAR. (C) IF THE COMMISSIONER'S DETERMINATION DIRECTS THE DENIAL OF A STAR EXEMPTION TO A PROPERTY OWNER, OR IS OTHERWISE UNFAVORABLE TO THE PROP- ERTY OWNER: (I) THE COMMISSIONER SHALL MAIL THE PROPERTY OWNER NOTICE OF HIS OR HER DETERMINATION AND AN OPPORTUNITY TO BE HEARD THEREON. IF THE OWNER FAILS TO RESPOND TO SUCH NOTICE WITHIN FORTY-FIVE DAYS FROM THE MAILING THEREOF, THE COMMISSIONER'S DETERMINATION SHALL STAND AND NO FURTHER REVIEW SHALL BE AVAILABLE. IF THE OWNER RESPONDS TO SUCH NOTICE WITHIN THE FORTY-FIVE DAY PERIOD, THE COMMISSIONER SHALL REVIEW THE RESPONSE AND ANY DOCUMENTATION PROVIDED IN SUPPORT THEREOF AND SHALL NOTIFY THE OWNER OF HIS OR HER FINAL DETERMINATION. IF DISSATISFIED WITH THE S. 2509--A 187 A. 3009--A COMMISSIONER'S FINAL DETERMINATION, THE OWNER MAY SEEK JUDICIAL REVIEW THEREOF PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. THE PROPERTY OWNER 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 DEPART- MENT, THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE ASSESSMENT ROLL OR TAX ROLL REGARDING SUCH ACTION. (II) 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 DENIAL OR REDUCTION 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 DEPART- MENT IN THE MANNER DESCRIBED IN THIS PARAGRAPH. (III) IF A STAR EXEMPTION SHOULD APPEAR ON A PROPERTY OWNER'S SCHOOL TAX BILL DESPITE THE FACT THAT THE COMMISSIONER HAD DETERMINED THE PROP- ERTY OWNER TO BE INELIGIBLE FOR THAT EXEMPTION, THE COMMISSIONER IS AUTHORIZED TO RECOVER THE AMOUNT AT ISSUE DIRECTLY FROM THE OWNERS OF THE PROPERTY BY UTILIZING ANY OF THE PROCEDURES FOR COLLECTION, LEVY, AND LIEN OF PERSONAL INCOME TAX SET FORTH IN ARTICLE TWENTY-TWO OF THE TAX LAW, AND ANY OTHER RELEVANT PROCEDURES REFERENCED WITHIN THE PROVISIONS OF SUCH ARTICLE. WHEN THE COMMISSIONER IMPLEMENTS THE DETER- MINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO CORRECTED SCHOOL TAX BILL SHALL BE SENT TO THE TAXPAYER FOR THAT SCHOOL YEAR. § 7. Section 171-u of the tax law, as added by section 2 of part FF of chapter 57 of the laws of 2010, and subdivision 5 as added by section 7 of part N of chapter 58 of the laws of 2011, is amended to read as follows: § 171-u. Verification of income eligibility for basic STAR exemption. (1) [On or after August fifteenth of each year, beginning in two thou- sand ten, the commissioner shall procure a report or reports identifying all parcels receiving the basic STAR exemption authorized by section four hundred twenty-five of the real property tax law. The commissioner is authorized to develop procedures necessary to ascertain to the best of his or her ability whether the parcels satisfy the income eligibility requirements for such exemption. Such determination shall be based upon the affiliated income of the parcel for the applicable income tax year, as defined by paragraph (b-1) of subdivision three of section four hundred twenty-five of the real property tax law. (2) The commissioner shall further develop procedures by which each assessor shall be notified of his or her findings, stating in each case either that the parcel does or does not meet the income eligibility standard prescribed by law, or that the income-eligibility of such parcel cannot be ascertained, whichever is appropriate. The commissioner shall provide no other information about the income of any person to an assessor. Such reports shall be furnished to assessors prior to the applicable taxable status date or as soon thereafter as is possible. (3) Upon receiving such a report, the assessor shall grant the exemption to those parcels which the commissioner determined to be income-eligible (assuming the assessor finds that the remaining eligi- bility requirements continue to be satisfied), shall deny the exemption to those which the commissioner determined not to be income-eligible, and shall solicit income documentation from the owners of those parcels S. 2509--A 188 A. 3009--A as to which the commissioner was unable to make a determination. Where the assessor denies the exemption based upon the commissioner's report, a notice of denial shall be mailed as provided by paragraph (b) of subdivision six of section four hundred twenty-five of the real property tax law, giving the findings of such department as a reason for such denial. (4) Where a STAR exemption has been improperly granted on a final assessment roll to a property where the affiliated income exceeds the limitations established by paragraph (b-1) of subdivision three of section four hundred twenty-five of the real property tax law, the improperly granted exemption shall be corrected in the manner provided by subdivision twelve of section four hundred twenty-five of the real property tax law. (5)] THE COMMISSIONER SHALL VERIFY THE INCOME ELIGIBILITY OF RECIPI- ENTS OF THE BASIC STAR EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW IN THE MANNER PROVIDED THEREIN. (2)(a) Notwithstanding any provision of law to the contrary, the commissioner may adopt rules prescribing a uniform statewide system of parcel identification numbers applicable to all "assessing units", as that term is defined by section one hundred two of the real property tax law, provided that no such rule shall apply to an assessment roll with a taxable status date occurring prior to January first, two thousand thir- teen. (b) Notwithstanding the foregoing provisions of this subdivision, the commissioner may, at his or her discretion, adopt rules that are appli- cable only to "special assessing units," as that term is defined by section eighteen hundred one of the real property tax law, which prescribe an alternative system of parcel identification numbers solely for such special assessing units. § 8. This act shall take effect immediately. SUBPART E Section 1. Paragraph 2 of subdivision w of section 233 of the real property law is REPEALED. § 2. Paragraph 3 of subdivision w of section 233 of the real property law, as amended by section 18 of part B of chapter 389 of the laws of 1997, is amended to read as follows: 3. A manufactured home park owner or operator providing a reduction in rent as required by paragraph one [or two] of this subdivision may retain, in consideration for record keeping expenses, two percent of the amount of such reduction. § 3. The opening paragraph of paragraph 3-a of subdivision w of section 233 of the real property law, as added by chapter 405 of the laws of 2001, is amended to read as follows: Any reduction required to be provided pursuant to paragraph one [or two] of this subdivision shall be provided as follows: § 4. Paragraph (l) of subdivision 2 of section 425 of the real proper- ty tax law is amended by adding a new subparagraph (iv) to read as follows: (IV) BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND TWENTY-TWO--TWO THOUSAND TWENTY-THREE SCHOOL YEAR, NO EXEMPTION SHALL BE GRANTED PURSUANT TO THIS SECTION TO A MOBILE HOME THAT IS DESCRIBED IN THIS PARAGRAPH. OWNERS OF SUCH PROPERTY MAY CLAIM THE CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW IN THE MANNER PRESCRIBED THEREIN. S. 2509--A 189 A. 3009--A § 5. Subparagraph (B) of paragraph 6 of subsection (eee) of section 606 of the tax law is amended by adding a new clause (iii) to read as follows: (III) BEGINNING WITH THE TWO THOUSAND TWENTY-TWO TAXABLE YEAR, TO RECEIVE THE CREDIT AUTHORIZED BY THIS SUBSECTION, AN OWNER OF A MOBILE HOME DESCRIBED BY CLAUSE (I) OF THIS SUBPARAGRAPH SHALL REGISTER FOR SUCH CREDIT IN THE MANNER PRESCRIBED BY THE COMMISSIONER. § 6. This act shall take effect immediately; provided, however, that the amendments to subdivision w of section 233 of the real property law made by sections one, two and three of this act shall be applicable beginning with assessment rolls used to levy school district taxes for the 2022--2023 school year. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section, item, subpart 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, subdivi- sion, section, item, subpart or part thereof directly involved in the controversy in which such judgment shall have been rendered. It is here- by declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included here- in. § 3. This act shall take effect immediately, provided, however, that the applicable effective date of Subparts A through E of this act shall be as specifically set forth in the last section of such Subparts. PART W Section 1. Section 200 of the real property tax law, as amended by section 4-a of part W of chapter 56 of the laws of 2010, is amended to read as follows: § 200. State board. There is hereby created in the department of taxa- tion and finance a separate and independent state board of real property tax services, to consist of five members to be appointed by the gover- nor, by and with the advice and consent of the senate. Of those five members appointed by the governor, one such person shall be an individ- ual actively engaged in the commercial production for sale of agricul- tural crops, livestock and livestock products of an average gross sales value of ten thousand dollars or more. Said individual shall be appointed in the first instance to a term of eight years upon expiration of an existing term. Said initial term shall commence on the first day of January next succeeding the year in which the existing term shall expire. The governor shall designate one of the members as the chairman of the board, who shall serve as chairman at the pleasure of the gover- nor. A MAJORITY OF THE DULY APPOINTED MEMBERS SHALL CONSTITUTE A QUORUM AND NOT LESS THAN A MAJORITY OF SUCH MEMBERS CONCURRING MAY TRANSACT ANY BUSINESS, PERFORM ANY DUTY OR EXERCISE ANY POWER OF THE BOARD. The members of the board shall be appointed for terms of eight years, commencing on the first day of January next following the year in which the term of his predecessor expired, except that the terms of the members first appointed shall expire as follows: one on December thir- ty-first, nineteen hundred sixty-one, one on December thirty-first, nineteen hundred sixty-three, one on December thirty-first, nineteen hundred sixty-five, one on December thirty-first, nineteen hundred sixty-seven, and one on December thirty-first, nineteen hundred eighty- two. Vacancies occurring otherwise than by expiration of term shall be S. 2509--A 190 A. 3009--A filled for the unexpired term. All members shall receive necessary expenses incurred in the performance of their duties. § 2. Section 307 of the real property tax law is REPEALED. § 3. Subdivision 4 of section 483 of the real property tax law, as amended by chapter 72 of the laws of 1979 and as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, and as renumbered by chapter 797 of the laws of 1992, is amended to read as follows: 4. Such exemption from taxation shall be granted only upon an applica- tion by the owner of the building or structure on a form prescribed by the commissioner. The applicant shall furnish such information as [such board] THE COMMISSIONER shall require. Such application shall be filed with the assessor of the city, town, village or county having the power to assess property for taxation on or before the appropriate taxable status date of such city, town, village or county and within one year from the date of completion of such construction or reconstruction. § 4. Subdivision 3 of section 489-n of the real property tax law, as added by chapter 86 of the laws of 1963 and as further amended by subdi- vision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 3. The commissioner shall meet at the time and place specified in such notice to hear complaints in relation to the tentative determination of the railroad ceiling. The provisions of section five hundred twelve of this chapter shall apply so far as may be practicable to a hearing under this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 5. Subdivision 3 of section 489-kk of the real property tax law, as added by chapter 920 of the laws of 1977 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: 3. The commissioner shall meet at the time and place specified in such notice to hear complaints in relation to the tentative determination of the railroad ceiling. The provisions of section five hundred twelve of this chapter shall apply so far as may be practicable to a hearing under this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 6. The real property tax law is amended by adding a new section 497 to read as follows: § 497. CONSTRUCTION OF CERTAIN LOCAL OPTION PROVISIONS IN EXEMPTION STATUTES. 1. POPULATION RESTRICTIONS. WHEN AN EXEMPTION STATUTE MAKES ONE OR MORE OPTIONS AVAILABLE TO MUNICIPAL CORPORATIONS HAVING A POPU- LATION WITHIN A SPECIFIED RANGE, AND THE GOVERNING BODY OF A MUNICIPAL CORPORATION ADOPTS A LOCAL LAW OR RESOLUTION EXERCISING SUCH AN OPTION WHILE ITS POPULATION IS WITHIN THE SPECIFIED RANGE, A SUBSEQUENT CHANGE IN THE POPULATION OF THE MUNICIPAL CORPORATION THAT PLACES IT OUTSIDE THE SPECIFIED RANGE SHALL NOT RENDER SUCH LOCAL LAW OR RESOLUTION INEF- FECTIVE OR INVALID, NOR SHALL IT IMPAIR THE ABILITY OF THE GOVERNING BODY TO AMEND OR REPEAL SUCH LOCAL LAW OR RESOLUTION TO THE SAME EXTENT AS IF ITS POPULATION WERE STILL WITHIN THE SPECIFIED RANGE. PROVIDED, HOWEVER, THAT THIS SUBDIVISION SHALL NOT APPLY TO ANY EXEMPTION STATUTE THAT EXPRESSLY PROVIDES THAT A LOCAL LAW OR RESOLUTION ADOPTED THERE- UNDER SHALL BECOME INEFFECTIVE OR INVALID IF THE POPULATION OF THE MUNICIPAL CORPORATION SUBSEQUENTLY EXPERIENCES A CHANGE THAT PLACES IT OUTSIDE THE SPECIFIED RANGE. 2. FILING PROVISIONS. WHEN AN EXEMPTION STATUTE MAKES ONE OR MORE OPTIONS AVAILABLE TO SOME OR ALL MUNICIPAL CORPORATIONS, AND FURTHER S. 2509--A 191 A. 3009--A PROVIDES THAT A MUNICIPAL CORPORATION ADOPTING A LOCAL LAW OR RESOLUTION EXERCISING SUCH AN OPTION SHALL FILE A COPY THEREOF WITH ONE OR MORE STATE AGENCIES OTHER THAN THE DEPARTMENT OF STATE, BUT IF SUCH STATUTE DOES NOT EXPRESSLY PROVIDE THAT A LOCAL LAW OR RESOLUTION EXERCISING SUCH AN OPTION SHALL NOT TAKE EFFECT UNTIL A COPY THEREOF IS FILED WITH THE SPECIFIED STATE AGENCY OR AGENCIES, THEN A FAILURE TO COMPLY WITH SUCH FILING PROVISION SHALL NOT RENDER SUCH LOCAL LAW OR RESOLUTION INEFFECTIVE OR INVALID. § 7. Subdivision 3 of section 499-oooo of the real property tax law, as added by chapter 475 of the laws of 2013, is amended to read as follows: 3. The commissioner or his or her designee shall meet at the time and place specified in such notice set forth in subdivision one of this section to hear complaints in relation to the tentative determination of the assessment ceiling. The provisions of section five hundred twelve of this chapter shall apply so far as may be practicable to a hearing under this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 8. Section 612 of the real property tax law, 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: § 612. Hearing of complaints. The commissioner or a duly authorized representative thereof shall meet at the time and place specified in the notice required by section six hundred eight of this chapter to hear complaints in relation to assessments of special franchises. The provisions of section five hundred twelve of this chapter shall apply so far as practicable to the hearing of complaints pursuant to this section. NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 9. Section 1208 of the real property tax law, as amended by chapter 385 of the laws of 1990 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: § 1208. Hearing of complaints. The commissioner or a duly authorized representative thereof shall meet at the time and place specified in the notice required by section twelve hundred four of this chapter to hear complaints in relation to equalization rates, class ratios or class equalization rates. The provisions of section five hundred twenty-five of this chapter shall apply so far as practicable to a hearing under this section. NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 10. This act shall take effect immediately; provided, however, that notwithstanding the provisions of subdivision 2 of section 497 of the real property tax law as added by section six of this act, the decision issued by the Appellate Division, Third Department on April 16, 2020, in the Matter of Laertes Solar, LLC v Assessor of the Town of Harford, cited as 182 A.D.3d 826, 122 N.Y.S.3d 427, and 2020 NY Slip Op 02302, motion for leave to appeal dismissed in part and otherwise denied by the Court of Appeals on November 19, 2020, shall remain binding upon the parties thereto; and provided further that the amendments made to section 489-oooo of the real property tax law made by section seven of this act shall not affect the repeal of such section and shall be deemed to be repealed therewith. PART X S. 2509--A 192 A. 3009--A Section 1. Subdivisions 5, 7 and 9 of section 487 of the real property tax law, subdivision 5 as amended by chapter 325 of the laws of 2018, subdivision 7 as amended by chapter 515 and subdivision 9 as added by chapter 608 of the laws of 2002, and paragraph (a) of subdivision 9 as amended by chapter 344 of the laws of 2014, are amended to read as follows: 5. The exemption granted pursuant to this section shall only be appli- cable to (a) solar or wind energy systems or farm waste energy systems which are (i) existing or constructed prior to July first, nineteen hundred eighty-eight or (ii) constructed subsequent to January first, nineteen hundred ninety-one and prior to January first, two thousand [twenty-five] THIRTY, and (b) micro-hydroelectric energy systems, fuel cell electric generating systems, micro-combined heat and power generat- ing equipment systems, electric energy storage equipment or electric energy storage system, or fuel-flexible linear generator electric gener- ating system which are constructed subsequent to January first, two thousand eighteen and prior to January first, two thousand [twenty-five] THIRTY. 7. If the assessor is satisfied that the applicant is entitled to an exemption pursuant to this section, he or she shall approve the applica- tion and enter the taxable assessed value of the parcel for which an exemption has been granted pursuant to this section on the assessment roll with the taxable property, with the amount of the exemption SET FORTH IN A SEPARATE COLUMN as computed pursuant to subdivision two of this section in a separate column. In the event that real property granted an exemption pursuant to this section ceases to be used primari- ly for eligible purposes, the exemption granted pursuant to this section shall cease. 9. (a) A county, city, town, village or school district, except a school district under article fifty-two of the education law, that has not acted to remove the exemption under this section may require the owner of a property which includes a solar or wind energy system which meets the requirements of subdivision four of this section, to enter into a contract for payments in lieu of taxes. Such contract may require annual payments in an amount not to exceed the amounts which would otherwise be payable but for the exemption under this section. If the owner or developer of such a system provides written notification to a taxing jurisdiction of its intent to construct such a system, then in order to require the owner or developer of such system to enter into a contract for payments in lieu of taxes, such taxing jurisdiction must notify such owner or developer IN WRITING of its intent to require a contract for payments in lieu of taxes within sixty days of receiving the written notification. WRITTEN NOTIFICATION TO A TAXING JURISDICTION FOR THIS PURPOSE SHALL INCLUDE A HARD COPY LETTER SENT TO THE HIGHEST- RANKING OFFICIAL OF THE TAXING JURISDICTION. SUCH LETTER SHALL EXPLICIT- LY REFERENCE SUBDIVISION NINE OF SECTION FOUR HUNDRED EIGHTY-SEVEN OF THE REAL PROPERTY TAX LAW, AND CLEARLY STATE THAT, UNLESS THE TAXING JURISDICTION RESPONDS WITHIN SIXTY DAYS IN WRITING WITH ITS INTENT TO REQUIRE A CONTRACT FOR PAYMENTS IN LIEU OF TAXES, SUCH PROJECT SHALL NOT BE OBLIGATED TO MAKE SUCH PAYMENTS. (b) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, SHOULD A TAXING JURISDICTION ADOPT A LAW OR RESOLUTION AT ANY TIME WITHIN OR PRIOR TO THE SIXTY DAY WINDOW, INDICATING THE TAXING JURISDICTION'S ONGOING INTENT TO REQUIRE A CONTRACT FOR PAYMENTS IN LIEU OF TAXES FOR SUCH SYSTEMS, SUCH LAW OR RESOLUTION SHALL BE CONSIDERED NOTIFICATION TO OWNERS OR DEVELOPERS AND NO FURTHER ACTION IS REQUIRED ON THE PART OF S. 2509--A 193 A. 3009--A THE TAXING JURISDICTION, PROVIDED THAT SUCH LAW OR RESOLUTION REMAINS IN EFFECT THROUGH THE END OF THE SIXTY DAY NOTIFICATION PERIOD. [The] (C) ANY payment in lieu of a tax agreement shall not operate for a period of more than fifteen years, commencing in each instance from the date on which the benefits of such exemption first become available and effective. § 2. Subdivision 1 of section 575-a of the real property tax law, as added by section 1 of subpart F of part J of chapter 59 of the laws of 2019, is amended to read as follows: 1. Every corporation, company, association, joint stock association, partnership and person, their lessees, trustees or receivers appointed by any court whatsoever, owning, operating or managing any electric generating facility in the state shall annually file with the commis- sioner, by April thirtieth, a report showing the inventory, revenue, and expenses associated therewith for the most recent fiscal year, AND, IN THE CASE OF SOLAR AND WIND ENERGY SYSTEMS, SUCH OTHER INFORMATION AS THE COMMISSIONER MAY REASONABLY REQUIRE FOR THE DEVELOPMENT AND MAINTENANCE OF AN APPRAISAL MODEL AND DISCOUNT RATE AS REQUIRED PURSUANT TO SECTION 575-B OF THIS CHAPTER. Such report shall be in the form and manner prescribed by the commissioner. § 3. The real property tax law is amended by adding a new section 575-b to read as follows: § 575-B. SOLAR OR WIND ENERGY SYSTEMS. 1. THE ASSESSED VALUE FOR SOLAR OR WIND ENERGY SYSTEMS, AS DEFINED IN SECTION FOUR HUNDRED EIGHTY-SEVEN OF THIS CHAPTER, SHALL BE DETERMINED BY A DISCOUNTED CASH FLOW APPROACH THAT INCLUDES: (A) AN APPRAISAL MODEL IDENTIFIED AND PUBLISHED BY THE NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE, IN CONSULTATION WITH THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, AND PERIODICALLY THEREAFTER AS APPROPRIATE; AND (B) A SOLAR OR WIND ENERGY SYSTEM DISCOUNT RATE PUBLISHED ANNUALLY BY THE NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE. 2. THE REPORTS REQUIRED BY SECTION FIVE HUNDRED SEVENTY-FIVE-A OF THIS TITLE SHALL BE DESIGNED TO ELICIT SUCH INFORMATION AS THE COMMISSIONER MAY REASONABLY REQUIRE FOR THE DEVELOPMENT AND MAINTENANCE OF AN APPRAISAL MODEL AND DISCOUNT RATE. 3. THE PROVISIONS OF THIS SECTION SHALL ONLY APPLY TO SOLAR OR WIND ENERGY SYSTEMS WITH A NAMEPLATE CAPACITY EQUAL TO OR GREATER THAN ONE MEGAWATT. § 4. The third undesignated paragraph of section 852 of the general municipal law, as amended by chapter 630 of the laws of 1977, is amended to read as follows: It is hereby further declared to be the policy of this state to protect and promote the health of the inhabitants of this state and to increase trade through promoting the development of facilities to provide recreation for the citizens of the state and to attract tourists from other states AND TO PROMOTE THE DEVELOPMENT OF RENEWABLE ENERGY PROJECTS TO SUPPORT THE STATE'S RENEWABLE ENERGY GOALS AS MAY BE ESTAB- LISHED OR AMENDED FROM TIME TO TIME. § 5. Subdivision 4 of section 854 of the general municipal law, as amended by section 6 of part J of chapter 59 of the laws of 2013, is amended and a new subdivision 21 is added to read as follows: (4) "Project" - shall mean any land, any building or other improve- ment, and all real and personal properties located within the state of New York and within or outside or partially within and partially outside S. 2509--A 194 A. 3009--A the municipality for whose benefit the agency was created, including, but not limited to, machinery, equipment and other facilities deemed necessary or desirable in connection therewith, or incidental thereto, whether or not now in existence or under construction, which shall be suitable for manufacturing, warehousing, research, commercial, RENEWABLE ENERGY or industrial purposes or other economically sound purposes iden- tified and called for to implement a state designated urban cultural park management plan as provided in title G of the parks, recreation and historic preservation law and which may include or mean an industrial pollution control facility, a recreation facility, educational or cultural facility, a horse racing facility, a railroad facility, A RENEWABLE ENERGY PROJECT or an automobile racing facility, provided, however, no agency shall use its funds or provide financial assistance in respect of any project wholly or partially outside the municipality for whose benefit the agency was created without the prior consent ther- eto by the governing body or bodies of all the other municipalities in which a part or parts of the project is, or is to be, located, and such portion of the project located outside such municipality for whose bene- fit the agency was created shall be contiguous with the portion of the project inside such municipality. (21) "RENEWABLE ENERGY PROJECT" SHALL MEAN ANY PROJECT AND ASSOCIATED REAL PROPERTY ON WHICH THE PROJECT IS SITUATED, THAT UTILIZES ANY SYSTEM OR EQUIPMENT AS SET FORTH IN SECTION FOUR HUNDRED EIGHTY-SEVEN OF THE REAL PROPERTY TAX LAW OR AS DEFINED PURSUANT TO PARAGRAPH B OF SUBDIVI- SION ONE OF SECTION SIXTY-SIX-P OF THE PUBLIC SERVICE LAW AS ADDED BY CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO THOUSAND NINETEEN. § 6. The opening paragraph of section 858 of the general municipal law, as amended by chapter 478 of the laws of 2011, is amended to read as follows: The purposes of the agency shall be to promote, develop, encourage and assist in the acquiring, constructing, reconstructing, improving, main- taining, equipping and furnishing industrial, manufacturing, warehous- ing, commercial, research, RENEWABLE ENERGY and recreation facilities including industrial pollution control facilities, educational or cultural facilities, railroad facilities, horse racing facilities, auto- mobile racing facilities, RENEWABLE ENERGY PROJECTS and continuing care retirement communities, provided, however, that, of agencies governed by this article, only agencies created for the benefit of a county and the agency created for the benefit of the city of New York shall be author- ized to provide financial assistance in any respect to a continuing care retirement community, and thereby advance the job opportunities, health, general prosperity and economic welfare of the people of the state of New York and to improve their recreation opportunities, prosperity and standard of living; and to carry out the aforesaid purposes, each agency shall have the following powers: § 7. Paragraph (b) of subdivision 5 of section 859-a of the general municipal law, as added by chapter 563 of the laws of 2015, is amended to read as follows: (b) a written cost-benefit analysis by the agency that identifies the extent to which a project will create or retain permanent, private sector jobs; the estimated value of any tax exemptions to be provided; the amount of private sector investment generated or likely to be gener- ated by the proposed project; THE CONTRIBUTION OF THE PROJECT TO THE STATE'S RENEWABLE ENERGY GOALS AND EMISSION REDUCTION TARGETS AS SET FORTH IN THE STATE ENERGY PLAN ADOPTED PURSUANT TO SECTION 6-104 OF THE ENERGY LAW; the likelihood of accomplishing the proposed project in a S. 2509--A 195 A. 3009--A timely fashion; and the extent to which the proposed project will provide additional sources of revenue for municipalities and school districts; and any other public benefits that might occur as a result of the project; § 8. This act shall take effect immediately. PART Y Section 1. Legislative intent. Article 1 Section 9 of the New York State Constitution was recently amended and provides "casino gambling at no more than seven facilities as authorized and prescribed by the legis- lature shall hereafter be authorized or allowed within this state." It is the sense of the legislature that this provision is not contravened by a statute which authorizes the acceptance of a wager by an individual who is betting by virtual or electronic means; provided that it meets other safeguards ensuring that the plain text of this provision is honored in such structure. Sports wagering is now legal online in 14 states, including the bordering states of New Jersey and Pennsylvania, while it is only permitted in person in New York at four upstate commer- cial gaming facilities and Native American Class III gaming facilities. An industry study found that nearly 20 percent of New Jersey's online sports wagering revenue comes from New York residents, costing the state millions of dollars in lost tax revenue. § 2. Section 1367 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 7 to read as follows: 7. (A) A LICENSED GAMING FACILITY OPERATING A SPORTS POOL PURSUANT TO SUBDIVISION THREE OF THIS SECTION MAY OFFER MOBILE SPORTS WAGERING WHEN CONDUCTED IN CONFORMANCE WITH SECTION ONE THOUSAND THREE HUNDRED SIXTY- SEVEN-A OF THIS TITLE. (B) NOTWITHSTANDING SECTION ONE THOUSAND THREE HUNDRED FIFTY-ONE OF THIS ARTICLE, MOBILE SPORTS WAGERING REVENUE SHALL BE EXCLUDED FROM GROSS GAMING REVENUE AND SHALL BE SEPARATELY MAINTAINED AND RETURNED TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID, ON A SCHEDULE DETERMINED BY THE COMMISSION. § 3. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 1367-a to read as follows: § 1367-A. MOBILE SPORTS WAGERING. MOBILE SPORTS WAGERING SHALL BE PERMITTED BY THE COMMISSION THROUGH A PLATFORM PROVIDER OR PROVIDERS SELECTED PURSUANT TO A COMPETITIVE BIDDING PROCESS CONDUCTED BY THE COMMISSION. THE WINNING PLATFORM PROVIDER OR PROVIDERS SHALL USE THE TECHNOLOGY NECESSARY TO ENSURE ALL BETTORS ARE PHYSICALLY WITHIN APPROVED LOCATIONS WITHIN THE STATE AND ENSURE THE NECESSARY SAFEGUARDS AGAINST ABUSES AND ADDICTIONS ARE IN PLACE. ANY SUCH CONTRACTS ENTERED BY THE COMMISSION ARE SUBJECT TO APPLICABLE STATE LAWS, REGULATIONS AND PRACTICES. § 4. Subdivision 1 of section 1351 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: 1. (A) For a gaming facility in zone two, there is hereby imposed a tax on gross gaming revenues. The amount of such tax imposed shall be as follows[; provided, however, should a licensee have agreed within its application to supplement the tax with a binding supplemental fee payment exceeding the aforementioned tax rate, such tax and supplemental fee shall apply for a gaming facility]: S. 2509--A 196 A. 3009--A [(a)] (1) in region two, forty-five percent of gross gaming revenue from slot machines and ten percent of gross gaming revenue from all other sources. [(b)] (2) in region one, thirty-nine percent of gross gaming revenue from slot machines and ten percent of gross gaming revenue from all other sources. [(c)] (3) in region five, thirty-seven percent of gross gaming revenue from slot machines and ten percent of gross gaming revenue from all other sources. (B) (1) NOTWITHSTANDING THE RATES IN PARAGRAPH (A) OF THIS SUBDIVI- SION, A GAMING FACILITY MAY PETITION THE COMMISSION TO LOWER THEIR SLOT TAX RATE TO NO LOWER THAN TWENTY-FIVE PERCENT. THE COMMISSION SHALL EVALUATE THE PETITION USING THE FOLLOWING CRITERIA: (I) THE ABILITY OF THE LICENSEE TO SATISFY THE LICENSE CRITERION OF FINANCIAL STABILITY ABSENT THE TAX RATE REDUCTION; (II) A COMPLETE EXAMINATION OF ALL FINANCIAL PROJECTIONS, AS WELL AS GAMING REVENUES GENERATED FOR THE PRIOR ANNUAL PERIOD; (III) THE LICENSEE'S INTENDED USE OF THE FUNDS RESULTING FROM A TAX ADJUSTMENT; (IV) THE INABILITY OF THE OPERATOR TO REMAIN COMPETITIVE UNDER THE CURRENT TAX STRUCTURE; (V) POSITIONS ADVANCED BY OTHER GAMING OPERATORS IN THE STATE IN RESPONSE TO THE PETITION; (VI) THE IMPACT ON THE COMPETITIVE LANDSCAPE; (VII) OTHER ECONOMIC FACTORS SUCH AS EMPLOYMENT AND THE POTENTIAL IMPACT UPON OTHER BUSINESSES IN THE REGION; AND (VIII) THE PUBLIC INTEREST TO BE SERVED BY A TAX ADJUSTMENT, INCLUDING THE IMPACT UPON THE STATE IN THE EVENT THE OPERATOR IS UNABLE TO REMAIN FINANCIALLY VIABLE. (2) THE COMMISSION SHALL REPORT THEIR RECOMMENDATION TO THE DIRECTOR OF THE DIVISION OF BUDGET WHO WILL MAKE A FINAL DETERMINATION. § 5. This act shall take effect immediately; provided, however, that section four of this act shall take effect sixty days after mobile sports wagering commences and shall expire and be deemed repealed one year after such date. PART Z Section 1. The gaming commission shall issue a request for information for the purpose of soliciting interest regarding the three unawarded gaming facility licenses authorized by the state constitution. Such request shall seek information from parties interested in developing and/or operating such gaming facilities which shall inform the commis- sion for the purposes of determining: the appropriate size and scope of development, the value of the gaming facility license, and the process that should be used in award consideration. § 2. This act shall take effect immediately. PART AA 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: S. 2509--A 197 A. 3009--A (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] COMMIS- SION; or § 2. This act shall take effect immediately. PART BB Section 1. Paragraphs 4 and 5 of subdivision a of section 1612 of the tax law, as amended by chapter 174 of the laws of 2013, are amended to read as follows: (4) fifty percent of the total amount for which tickets have been sold for games known as: (A) the "Daily Numbers Game" or "Win 4", discrete games in which the participants select no more than three or four of their own numbers to match with three or four numbers drawn by the [division] COMMISSION for purposes of determining winners of such games, (B) "Pick 10", [offered no more than once daily,] in which participants select from a specified field of numbers a subset of ten numbers to match against a subset of numbers to be drawn by the [division] COMMIS- SION from such field of numbers for the purpose of determining winners of such game, (C) "Take 5", [offered no more than once daily,] in which participants select from a specified field of numbers a subset of five numbers to match against a subset of five numbers to be drawn by the [division] COMMISSION from such field of numbers for purposes of deter- mining winners of such game; or (5) forty percent of the total amount for which tickets have been sold for: (A) "Lotto", [offered no more than once daily,] a discrete game in which all participants select a specific subset of numbers to match a specific subset of numbers, as prescribed by rules and regulations promulgated and adopted by the [division] COMMISSION, from a larger specific field of numbers, as also prescribed by such rules and regu- lations and (B) with the exception of the game described in paragraph one of this subdivision, such other state-operated lottery games [which] THAT the [division] COMMISSION may introduce, [offered no more than once daily,] commencing on or after forty-five days following the official publication of the rules and regulations for such game. § 2. This act shall take effect immediately. S. 2509--A 198 A. 3009--A PART CC Section 1. Sections 1368, 1369, 1370 and 1371 of the racing, pari-mu- tuel wagering and breeding law are renumbered sections 130, 131, 132 and 133. § 2. Title 9 of article 13 of the racing, pari-mutuel wagering and breeding law is REPEALED. § 3. Section 130 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 130. [Establishment of the] THE office of gaming inspector general. [There is hereby created within the commission the office of gaming inspector general. The head of the office shall be the gaming inspector general who shall be appointed by the governor by and with the advice and consent of the senate. The inspector general shall serve at the pleasure of the governor. The inspector general shall report directly to the governor. The person appointed as inspector general shall, upon his or her appointment, have not less than ten years professional experience in law, investigation, or auditing. The inspector general shall be compensated within the limits of funds available therefor, provided, however, such salary shall be no less than the salaries of certain state officers holding the positions indicated in paragraph (a) of subdivision one of section one hundred sixty-nine of the executive law.] THE DUTIES AND RESPONSIBILITIES OF THE FORMER OFFICE OF THE GAMING INSPECTOR GENER- AL ARE TRANSFERRED TO AND ENCOMPASSED BY THE OFFICE OF THE STATE INSPEC- TOR GENERAL AS EXPRESSLY REFERENCED IN ARTICLE FOUR-A OF THE EXECUTIVE LAW. § 4. Section 131 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 131. [State gaming] GAMING inspector general; functions and duties. The [state] gaming inspector general shall have the following duties and responsibilities: 1. receive and investigate complaints from any source, or upon his or her own initiative, concerning allegations of corruption, fraud, crimi- nal activity, conflicts of interest or abuse in the commission; 2. [inform the commission members of such allegations and the progress of investigations related thereto, unless special circumstances require confidentiality; 3.] determine with respect to such allegations whether disciplinary action, civil or criminal prosecution, or further investigation by an appropriate federal, state or local agency is warranted, and to assist in such investigations; [4.] 3. prepare and release to the public written reports of such investigations, as appropriate and to the extent permitted by law, subject to redaction to protect the confidentiality of witnesses. The release of all or portions of such reports may be deferred to protect the confidentiality of ongoing investigations; [5.] 4. review and examine periodically the policies and procedures of the commission with regard to the prevention and detection of corruption, fraud, criminal activity, conflicts of interest or abuse; [6.] 5. recommend remedial action to prevent or eliminate corruption, fraud, criminal activity, conflicts of interest or abuse in the commis- sion; and [7.] 6. establish programs for training commission officers and employees [regarding] IN REGARD TO the prevention and elimination of S. 2509--A 199 A. 3009--A corruption, fraud, criminal activity, conflicts of interest or abuse in the commission. § 5. Section 132 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 132. Powers. The [state] gaming inspector general shall have the power to: 1. subpoena and enforce the attendance of witnesses; 2. administer oaths or affirmations and examine witnesses under oath; 3. require the production of any books and papers deemed relevant or material to any investigation, examination or review; 4. notwithstanding any law to the contrary, examine and copy or remove documents or records of any kind prepared, maintained or held by the commission; 5. require any commission officer or employee to answer questions concerning any matter related to the performance of his or her official duties. NO STATEMENT OR OTHER EVIDENCE DERIVED THEREFROM MAY BE USED AGAINST SUCH OFFICER OR EMPLOYEE IN ANY SUBSEQUENT CRIMINAL PROSECUTION OTHER THAN FOR PERJURY OR CONTEMPT ARISING FROM SUCH TESTIMONY. The refusal of any officer or employee to answer questions shall be cause for removal from office or employment or other appropriate penalty; 6. monitor the implementation by the commission of any recommendations made by the state inspector general; and 7. perform any other functions that are necessary or appropriate to fulfill the duties and responsibilities of the office. § 6. Section 133 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 133. Responsibilities of the commission and its officers and employ- ees. 1. Every commission officer or employee shall report promptly to the [state] gaming inspector general any information concerning corruption, fraud, criminal activity, conflicts of interest or abuse by another state officer or employee relating to his or her office or employment, or by a person having business dealings with the commission relating to those dealings. The knowing failure of any officer or employee to so report shall be cause for removal from office or employ- ment or other appropriate penalty under this article. Any officer or employee who acts pursuant to this subdivision by reporting to the [state] gaming inspector general or other appropriate law enforcement official improper governmental action as defined in section seventy- five-b of the civil service law shall not be subject to dismissal, discipline or other adverse personnel action. 2. The commission chair shall advise the governor within ninety days of the issuance of a report by the [state] gaming inspector general as to the remedial action that the commission has taken in response to any recommendation for such action contained in such report. § 7. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 134 to read as follows: § 134. TRANSFER OF EMPLOYEES. UPON THE TRANSFER OF FUNCTIONS, POWERS, DUTIES AND OBLIGATIONS TO THE OFFICE OF THE STATE INSPECTOR GENERAL PURSUANT TO THIS ARTICLE, PROVISION SHALL BE MADE FOR THE TRANSFER OF ALL GAMING INSPECTOR GENERAL EMPLOYEES FROM WITHIN THE GAMING COMMISSION INTO THE OFFICE OF THE STATE INSPECTOR GENERAL. EMPLOYEES SO TRANSFERRED SHALL BE TRANSFERRED WITHOUT FURTHER EXAM- INATION OR QUALIFICATION TO THE SAME OR SIMILAR TITLES, SHALL REMAIN IN THE SAME COLLECTIVE BARGAINING UNITS AND SHALL RETAIN THEIR S. 2509--A 200 A. 3009--A RESPECTIVE CIVIL SERVICE CLASSIFICATIONS, STATUS AND RIGHTS PURSUANT TO THEIR COLLECTIVE BARGAINING UNITS AND COLLECTIVE BARGAINING AGREE- MENTS. § 8. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 135 to read as follows: § 135. TRANSFER OF RECORDS. ALL BOOKS, PAPERS, RECORDS AND PROPERTY OF THE GAMING INSPECTOR GENERAL WITHIN THE GAMING COMMISSION WITH RESPECT TO THE FUNCTIONS, POWERS, DUTIES AND OBLIGATIONS TRANSFERRED BY SECTION ONE HUNDRED THIRTY OF THIS ARTICLE, ARE TO BE DELIVERED TO THE APPROPRIATE SUCCESSOR OFFICES WITHIN THE OFFICE OF THE STATE INSPECTOR GENERAL, AT SUCH PLACE AND TIME, AND IN SUCH MANNER AS THE OFFICE OF THE STATE INSPECTOR GENERAL MAY REQUIRE. § 9. This act shall take effect on the sixtieth day after it shall have become a law. PART DD 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 Z of chapter 59 of the laws of 2020, is amended to read as follows: (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as may be prescribed by the commission and shall contain such information or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand sixteen and one thousand seventeen of this article; provided further that the contract provisions or other simulcast arrangements for such simulcast facility shall be no less favorable than those in effect on January first, two thousand five; (ii) that each off-track betting corporation having within its geographic boundaries such residences, homes or other areas technically capable of receiving the simulcast signal shall be a contracting party; (iii) the distribution of revenues shall be subject to contractual agreement of the parties except that S. 2509--A 201 A. 3009--A 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-one] TWENTY-TWO; 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-one] TWENTY-TWO; and (iv) no in-home simulcasting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as separately amended by chapter 243 and section 2 of part Z of chapter 59 of the laws of 2020, 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-one] TWENTY-TWO, the amount used exclu- sively for purses to be awarded at races conducted by such receiving track shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twenty-first, nineteen hundred ninety-five to the total commissions that would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. § 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as separately amended by section 3 of part Z of chapter 59 and chapter 243 of the laws of 2020, 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-one] TWENTY-TWO and on any day regard- less 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-one] TWENTY-TWO. 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, each off-track betting corporation branch office and each simul- casting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's repre- sentative horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred S. 2509--A 202 A. 3009--A 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 Z of chapter 59 of the laws of 2020, 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-one] TWENTY-TWO. This section shall supersede all inconsistent provisions of this chapter. § 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 of part Z of chapter 59 of the laws of 2020, 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-one] TWENTY-TWO. 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 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 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 Z of chapter 59 of the laws of 2020, 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 [twenty] TWENTY-ONE, 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 Z of chapter 59 of the laws of 2020, 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, [2021] 2022; provided, however, that nothing S. 2509--A 203 A. 3009--A 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 Z of chapter 59 of the laws of 2020, 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, [2021] 2022; 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 separately amended by section 9 of part Z of chapter 59 and chapter 243 of the laws of 2020, 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 are presented for payment before April first of the year following the year of their purchase, less an amount that shall be established and retained by such franchised corporation of between twelve to seventeen percent of the total deposits in pools resulting from on-track regular bets, and fourteen to twenty- one percent of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five percent of the total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six percent 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 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 S. 2509--A 204 A. 3009--A percentages of the total pool for regular and multiple bets five percent of regular bets and four percent of multiple bets plus twenty percent of the breaks; for exotic wagers seven and one-half percent plus twenty percent of the breaks, and for super exotic bets seven and one-half percent plus fifty percent of the breaks. For the period April first, two thousand one through December thirty- first, two thousand [twenty-one] TWENTY-TWO, such tax on all wagers shall be one and six-tenths percent, plus, in each such period, twenty percent of the breaks. Payment to the New York state thoroughbred breed- ing and development fund by such franchised corporation shall be one- half of one percent of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three percent of super exotic bets and for the period April first, two thousand one through December thirty-first, two thousand [twenty-one] TWENTY-TWO, such payment shall be seven-tenths of one percent of regular, multiple and exotic pools. § 10. This act shall take effect immediately. PART EE Section 1. Section 19 of part W-1 of chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, as amended by section 1 of part U of chapter 60 of the laws of 2016, is amended to read as follows: § 19. This act shall take effect immediately; provided, however, that sections one through thirteen of this act shall take effect September 1, 2006 and shall be deemed repealed on September 1, [2021] 2026 and such repeal shall apply in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law, and shall apply to sales made, fuel compounded or manufactured, and uses occurring on or after such date, and with respect to sections seven through eleven of this act, in accordance with applicable transitional provisions of sections 1106 and 1217 of the tax law; provided, however, that the commissioner of taxation and finance shall be authorized on and after the date this act shall have become a law to adopt and amend any rules or regulations and to take any steps necessary to implement the provisions of this act; provided further that sections fourteen through sixteen of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2006. § 2. This act shall take effect immediately. PART FF Section 1. Subsection (e) of section 42 of the tax law, as added by section 1 of part RR of chapter 60 of the laws of 2016, is amended to read as follows: (e) For taxable years beginning on or after January first, two thou- sand seventeen and before January first, two thousand eighteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and two hundred fifty dollars. For taxable years beginning on or after January first, two thousand eighteen and before January first, two thousand nineteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and three hundred dollars. For taxable years beginning on or after January first, two thousand nineteen and before January first, two thousand twenty, the S. 2509--A 205 A. 3009--A amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and five hundred dollars. For taxable years beginning on or after January first, two thousand twenty and before January first, two thousand twenty-one, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and four hundred dollars. For taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand [twenty-two] TWENTY-FIVE, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and six hundred dollars. § 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit is amended to read as follows: § 5. This act shall take effect immediately and shall apply only to taxable years beginning on or after January 1, 2017 and before January 1, [2022] 2025. § 3. This act shall take effect immediately. PART GG Section 1. Subdivision 4 of section 22 of the public housing law, as amended by section 5 of part H of chapter 60 of the laws of 2016, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [four] TWELVE million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. § 2. Subdivision 4 of section 22 of the public housing law, as amended by section one of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twelve] TWENTY million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. § 3. Subdivision 4 of section 22 of the public housing law, as amended by section two of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twenty] TWENTY-EIGHT million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 4. Subdivision 4 of section 22 of the public housing law, as amended by section three of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twenty-eight] THIRTY-SIX million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, S. 2509--A 206 A. 3009--A and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 5. Subdivision 4 of section 22 of the public housing law, as amended by section four of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [thirty-six] FORTY-FOUR million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 6. This act shall take effect immediately; provided, however, section two of this act shall take effect April 1, 2022; section three of this act shall take effect April 1, 2023; section four of this act shall take effect April 1, 2024; and section five of this act shall take effect April 1, 2025. PART HH Section 1. Section 5 of part HH of chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, as amended by section 1 of part III of chapter 59 of the laws of 2018, is amended to read as follows: § 5. This act shall take effect immediately, provided that section two of this act shall take effect on January 1, 2015, and shall apply to taxable years beginning on or after January 1, 2015, with respect to "qualified production expenditures" and "transportation expenditures" paid or incurred on or after such effective date, regardless of whether the production of the qualified musical or theatrical production commenced before such date, provided further that this act shall expire and be deemed repealed [8 years after such date] JANUARY 1, 2026. § 2. Paragraph 1 of subdivision (e) of section 24-a of the tax law, as added by section 1 of part HH of chapter 59 of the laws of 2014, is amended to read as follows: (1) The aggregate amount of tax credits allowed under this section, subdivision forty-seven of section two hundred ten-B and subsection (u) of section six hundred six of this chapter in any calendar year shall be [four] EIGHT million dollars. Such aggregate amount of credits shall be allocated by the department of economic development among taxpayers in order of priority based upon the date of filing an application for allo- cation of musical and theatrical production credit with such department. If the total amount of allocated credits applied for in any particular year exceeds the aggregate amount of tax credits allowed for such year under this section, such excess shall be treated as having been applied for on the first day of the subsequent year. § 3. This act shall take effect immediately, provided, however, that the amendments to section 24-a of the tax law made by section two of this act shall not affect the expiration and repeal of such section and shall be deemed to expire and repeal therewith. PART II 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 B of chapter 59 of the laws of 2020, are amended to read as follows: S. 2509--A 207 A. 3009--A (a) Allowance of credit. For taxable years beginning on or after Janu- ary first, two thousand fifteen and before January first, two thousand [twenty-two] TWENTY-FOUR, 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-one] TWENTY-THREE; 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 B of chapter 59 of the laws of 2020, 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-two] TWENTY-FOUR, 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-one] TWENTY-THREE; 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 B of chapter 59 of the laws of 2020, 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-two] TWENTY-FOUR, 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-one] TWENTY-THREE; and § 4. This act shall take effect immediately. PART JJ S. 2509--A 208 A. 3009--A Section 1. Section 12 of part V of chapter 61 of the laws of 2011, amending the economic development law, the tax law and the real property tax law, relating to establishing the economic transformation and facil- ity redevelopment program and providing tax benefits under that program, is amended to read as follows: § 12. This act shall take effect immediately and shall expire and be deemed repealed December 31, [2021] 2031. § 2. Paragraph (a) of subdivision 11 of section 400 of the economic development law, as amended by section 1 of part GG of chapter 58 of the laws of 2020, is amended to read as follows: (a) a correctional facility, as defined in paragraph (a) of subdivi- sion four of section two of the correction law, that has been selected by the governor of the state of New York for closure after April first, two thousand eleven but no later than March thirty-first, two thousand [twenty-one] TWENTY-SIX; or § 3. This act shall take effect immediately; provided, however, that the amendments to section 400 of the economic development law made by section two of this act shall not affect the repeal of such section and shall be deemed repealed therewith. PART KK Section 1. The opening paragraph of section 1310 of the general busi- ness law, as added by section 2 of part X of chapter 55 of the laws of 2018, is amended to read as follows: Except as otherwise provided in this article, the program shall be implemented, and enrollment of employees shall begin[, within twenty- four months after the effective date of this article] NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE. The provisions of this section shall be in force after the board opens the program for enroll- ment. § 2. Section 1315 of the general business law, as added by section 2 of part X of chapter 55 of the laws of 2018, is amended to read as follows: § 1315. Delayed implementation. The board may delay the implementation of the program an additional twelve months beyond the [twenty-four months] DATE established in section thirteen hundred ten of this article if the board determines that further delay is necessary to address legal, financial or other programmatic concerns impacting the viability of the program. The board shall provide reasonable notice of such delay to the governor, the commissioner, the speaker of the assembly, the temporary president of the senate, the chair of the assembly ways and means committee, the chair of the senate finance committee, the chair of the assembly labor committee, and the chair of the senate labor commit- tee. § 3. This act shall take effect immediately. PART LL Section 1. For the period from and after March 1, 2020 until such time as the licensee and the video lottery gaming facility that are each subject to subdivision 2 of section 1355 of the racing, pari-mutuel wagering and breeding law, as added by the Upstate New York Gaming Economic Development Act of 2013, as amended, have each been continuous- ly operating without any restrictions related to Covid-19 for at least six full and consecutive calendar months, the payments to the relevant S. 2509--A 209 A. 3009--A horsemen and breeders required by subdivision 2 of section 1355 of the racing, pari-mutuel wagering and breeding law, as added by the Upstate New York Gaming Economic Development Act of 2013, as amended, shall not accrue and shall be permanently waived and forgiven. The accrual and obligation to make payments under such subdivision 2 of such section 1355 shall recommence at such time as the licensee and the video lottery gaming facility that are each subject to such subdivision 2 of such section 1355 have each been continuously operating without any restrictions related to Covid-19 for at least six full and consecutive calendar months. Payments to the relevant horsemen and breeders for the period beginning January 1, 2020 through February 28, 2020 shall be payable in six equal monthly installments of $106,407 per month over a six-month period beginning with the first month after the licensee has been continuously operating without any restrictions related to Covid-19 for at least six full and consecutive calendar months. § 2. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such 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 LL of this act shall be as specifically set forth in the last section of such Parts.
2021-S2509B - Details
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2021-S2509B - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2021-2022 state fiscal year; extends the top rate of income tax (Part A); imposes a pass-through entity tax (Part C); relates to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D)
2021-S2509B - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 2509--B I N S E N A T E January 20, 2021 ___________ A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to extending the top state income tax rate (Part A); intentionally omitted (Part B); to amend the tax law, in relation to the imposition of a pass-through business tax (Part C); to amend the economic development law and the tax law, in relation to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D); to amend the tax law, in relation to the taxation of certain corporations classed as a taxicab or omnibus (Part E); to amend the tax law, in relation to the empire state film production credit and the empire state film post production credit (Part F); intentionally omitted (Part G); intentionally omitted (Part H); Intentionally Omitted (Part I); to amend the tax law, to impose sales tax on such admissions to race tracks and simulcast facilities; and to repeal section 227, section 306, section 406, subparagraph (ii) of paragraph b of subdivi- sion 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and breeding law, relating to certain taxes on admissions to race tracks and simulcast facilities (Part J); intentionally omitted (Part K); to amend the tax law, in relation to the authority of counties to impose sales and compensating use taxes; and to repeal certain provisions of such law relating ther- eto (Part L); to amend the tax law, in relation to exempting from sales and use tax certain tangible personal property or services (Part M); to amend the tax law, in relation to increasing the total dollar amount for vendors' gross receipts necessary for registration filing (Part N); to amend the tax law,in relation to imposing liability for real estate transfer taxes on responsible persons, prohibiting gran- tors from passing real estate transfer tax to grantees, and exempting certain organizations from the LLC disclosure requirement (Part O); to amend the tax law, in relation to restrictions on certain retail deal- ers whose registrations have been revoked or who have been forbidden from selling cigarettes or tobacco products (Part P); to amend the tax
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12574-04-1 S. 2509--B 2 law, in relation to the timing and method for filing certain returns (Part Q); to amend the tax law, in relation to determining liability for the collection of taxes on medallion taxicab trips and congestion surcharges (Part R); to amend the tax law, in relation to increasing tax return preparer penalties for failure to register and requiring the display of certain documents by tax return preparers (Part S); intentionally omitted (Part T); to amend the real property law and the tax law, in relation to electronic submission of consolidated real property transfer forms; and to repeal certain provisions of the real property law relating thereto (Part U); intentionally omitted (Subpart A); intentionally omitted (Subpart B); intentionally omitted (Subpart C); intentionally omitted (Subpart D); and to amend the real property law, the real property tax law and the tax law, in relation to exemptions for manufactured home park owners or operators and mobile home owners; and to repeal certain provisions of the real property law relating thereto (Subpart E)(Part V); to amend the real property tax law, in relation to facilitating the administration of the real prop- erty tax, and to repeal section 307 of such law relating thereto (Part W); to amend the real property tax law and the general municipal law, in relation to promoting the development of renewable energy projects (Part X); to amend the racing, pari-mutuel wagering and breeding law, in relation to the regulation of sports betting and authorizing mobile sports wagering; and providing for the repeal of certain provisions of such law relating thereto (Part Y); intentionally omitted (Part Z); to amend the tax law, in relation to a keno style lottery game (Part AA); to amend the tax law, in relation to restrictions on certain lottery draw game offerings (Part BB); to amend the racing, pari-mutuel wager- ing and breeding law, in relation to the office of the gaming inspec- tor general; and to repeal certain provisions of such law relating thereto (Part CC); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and 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 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 DD); to amend chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alterna- tive fuels tax exemptions for five years (Part EE); to amend the tax law and chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit, in relation to extend- ing the provisions of such credit through tax year 2024 (Part FF); to amend the public housing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part GG); to amend chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to the effectiveness thereof; and to amend the tax law in relation to increasing the aggregate cap on the amount of such credit (Part HH); to amend the tax law, in relation to extending hire a veteran credit for an additional two years (Part II); to amend chapter S. 2509--B 3 61 of the laws of 2011 amending the economic development law, the tax law and the real property tax law, relating to establishing the economic transformation and facility redevelopment program and provid- ing tax benefits under that program and to amend the economic develop- ment law, in relation to extending the tax credits under the economic transformation and facility redevelopment program (Part JJ); to amend the general business law, in relation to requiring the implementation of the secure choice program by a certain date (Part KK); in relation to temporarily suspending certain racing support payments (Part LL); to amend the racing, pari-mutuel wagering and breeding law, in relation to converting video lottery terminal facilities in Queens and Westchester counties to destination resort gaming facilities (Part MM); clarifying for certain tax credit programs that work performed remotely within the state due to the outbreak of novel coronavirus, COVID-19, qualifies for certain tax credit programs; and providing for the repeal of such provisions upon expiration thereof (Part NN); to amend the tax law, in relation to the amount of the business income base and capital base for the computation of tax (Part OO); to amend the tax law, in relation to imposing an additional tax on income from capital gain (Part PP); to amend the tax law and the administrative code of the city of New York, in relation to investment income (Part QQ); to amend the tax law, in relation to the computation of estate tax (Part RR); to amend the real property law and the uniform commer- cial code, in relation to requiring the recording of mezzanine debt and preferred equity investments; and to amend the tax law, in relation to including mezzanine debt in the mortgage recording tax (Part SS); to amend the tax law, in relation to filing fees for limit- ed liability companies and partnerships (Part TT); and to amend the tax law, in relation to the real property tax relief credit (Part UU) 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 2021-2022 state fiscal year. Each component is wholly contained within a Part identified as Parts A through UU. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, including the effective date of the Part, which makes 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. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law, clauses (iv), (v), (vi) and (vii) as amended by section 1 of part P of chapter 59 of the laws of 2019, and clause (viii) as added by section 1 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: S. 2509--B 4 If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over $27,900 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over $43,000 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over $161,550 Over $323,200 but not over $19,403 plus 6.85% of excess $2,155,350 over $323,200 Over $2,155,350 $144,905 plus [8.82] 9.85% of BUT NOT OVER $10,000,000 excess over $2,155,350 OVER $10,000,000 BUT NOT OVER $917,603 PLUS 10.85% OF $50,000,000 EXCESS OVER $10,000,000 OVER $50,000,000 $5,257,603 PLUS 11.85% OF EXCESS OVER $50,000,000 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over $27,900 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over $161,550 Over $323,200 but not over $2,155,350 $19,124 plus 6.85% of excess over $323,200 Over $2,155,350 $144,626 plus [8.82] 9.85% of BUT NOT OVER $10,000,000 excess over $2,155,350 OVER $10,000,000 $917,324 PLUS 10.85% OF BUT NOT OVER $50,000,000 EXCESS OVER $10,000,000 OVER $50,000,000 $5,257,324 PLUS 11.85% OF EXCESS OVER $50,000,000 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over $27,900 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over $161,550 Over $323,200 but not over $18,834 plus 6.85% of $2,155,350 excess over $323,200 Over $2,155,350 $144,336 plus [8.82] 9.85% of BUT NOT OVER $10,000,000 excess over $2,155,350 S. 2509--B 5 OVER $10,000,000 $917,034 PLUS 10.85% OF EXCESS BUT NOT OVER $50,000,000 OVER $10,000,000 OVER $50,000,000 $5,257,034 PLUS 11.85% OF EXCESS OVER $50,000,000 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over $27,900 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over $161,550 Over $323,200 but not over $18,544 plus 6.85% of $2,155,350 excess over $323,200 Over $2,155,350 $144,047 plus [8.82] 9.85% of BUT NOT OVER $10,000,000 excess over $2,155,350 OVER $10,000,000 $916,745 PLUS 10.85% OF BUT NOT OVER $50,000,000 EXCESS OVER $10,000,000 OVER $50,000,000 $5,256,745 PLUS 11.85% OF EXCESS OVER $50,000,000 (viii) For taxable years beginning after two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over $27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over $161,550 Over $323,200 $18,252 plus 6.85% of excess over BUT NOT OVER $2,155,350 $323,200 OVER $2,155,350 $143,754 PLUS 9.85% OF EXCESS BUT NOT OVER $10,000,000 OVER $2,155,350 OVER $10,000,000 $916,745 PLUS 10.85% OF BUT NOT OVER $50,000,000 EXCESS OVER $10,000,000 OVER $50,000,000 $5,256,745 PLUS 11.85% OF EXCESS OVER $50,000,000 § 2. Clauses (iv), (v), (vi), (vii), and (viii) of subparagraph (B) of paragraph 1 of subsection (b) of section 601 of the tax law, clauses (iv), (v), (vi) and (vii) as amended by section 2 of part P of chapter 59 of the laws of 2019, and clause (viii) as added by section 2 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over S. 2509--B 6 $17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over $32,200 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over $107,650 Over $269,300 but not over $16,304 plus 6.85% of $1,616,450 excess over $269,300 Over $1,616,450 $108,584 plus [8.82] 9.85% of BUT NOT OVER $7,500,000 excess over $1,616,450 OVER $7,500,000 $688,114 PLUS 10.85% OF BUT NOT OVER $37,500,000 EXCESS OVER $7,500,000 OVER $37,500,000 $3,943,114 PLUS 11.85% OF EXCESS OVER $37,500,000 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over $20,900 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over $107,650 Over $269,300 but not over $16,079 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 $108,359 plus [8.82] 9.85% of BUT NOT OVER $7,500,000 excess over $1,616,450 OVER $7,500,000 $687,889 PLUS 10.85% OF BUT NOT OVER $37,500,000 EXCESS OVER $7,500,000 OVER $37,500,000 $3,942,889 PLUS 11.85% OF EXCESS OVER $37,500,000 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over $20,900 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over $107,650 Over $269,300 but not over $15,845 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 $108,125 plus [8.82] 9.85% of BUT NOT OVER $7,500,000 excess over $1,616,450 OVER $7,500,000 $687,655 PLUS 10.85% OF BUT NOT OVER $37,500,000 EXCESS OVER $7,500,000 OVER $37,500,000 $3,942,655 PLUS 11.85% OF EXCESS OVER $37,500,000 S. 2509--B 7 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over $20,900 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over $107,650 Over $269,300 but not over $15,612 plus 6.85% of excess $1,616,450 over $269,300 Over $1,616,450 $107,892 plus [8.82] 9.85% of BUT NOT OVER $7,500,000 excess over $1,616,450 OVER $7,500,000 $687,421 PLUS 10.85% OF BUT NOT OVER $37,500,000 EXCESS OVER $7,500,000 OVER $37,500,000 $3,942,421 PLUS 11.85% OF EXCESS OVER $37,500,000 (viii) For taxable years beginning after two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over $20,900 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over $107,650 Over $269,300 $15,371 plus 6.85% of BUT NOT OVER $1,616,450 excess over $269,300 OVER $1,616,450 $107,651 PLUS 9.85% OF EXCESS BUT NOT OVER $7,500,000 OVER $1,616,450 OVER $7,500,000 $687,180 PLUS 10.85% OF BUT NOT OVER $37,500,000 EXCESS OVER $7,500,000 OVER $37,500,000 $3,942,180 PLUS 11.85% OF EXCESS OVER $37,500,000 § 3. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (c) of section 601 of the tax law, clauses (iv), (v), (vi) and (vii) as amended by section 3 of part P of chapter 59 of the laws of 2019, and clause (viii) as added by section 3 of part R of chapter 59 of the laws of 2017, are amended to read as follows: (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over $13,900 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over S. 2509--B 8 $21,400 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over $80,650 Over $215,400 but not over $13,109 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $72,166 plus [8.82] 9.85% of BUT NOT OVER $5,000,000 excess over $1,077,550 OVER $5,000,000 $458,527 PLUS 10.85% OF BUT NOT OVER $25,000,000; EXCESS OVER $5,000,000 OVER $25,000,000 $2,628,527 PLUS 11.85% OF EXCESS OVER $25,000,000 (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over $13,900 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over $80,650 Over $215,400 but not over $12,926 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $71,984 plus [8.82] 9.85% of BUT NOT OVER $5,000,000 excess over $1,077,550 OVER $5,000,000 $458,345 PLUS 10.85% OF BUT NOT OVER $25,000,000 EXCESS OVER $5,000,000 OVER $25,000,000 $2,628,345 PLUS 11.85% OF EXCESS OVER $25,000,000 (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over $13,900 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over $80,650 Over $215,400 but not over $12,738 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $71,796 plus [8.82] 9.85% of BUT NOT OVER $5,000,000 excess over $1,077,550 OVER $5,000,000 $458,158 PLUS 10.85% OF EXCESS BUT NOT OVER $25,000,000 OVER $5,000,000 OVER $25,000,000 $2,628,158 PLUS 11.85% OF EXCESS OVER $25,000,000 (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over S. 2509--B 9 $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over $13,900 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over $80,650 Over $215,400 but not over $12,550 plus 6.85% of excess $1,077,550 over $215,400 Over $1,077,550 $71,608 plus [8.82] 9.85% of BUT NOT OVER $5,000,000 excess over $1,077,550 OVER $5,000,000 $457,970 PLUS 10.85% OF BUT NOT OVER $25,000,000 EXCESS OVER $5,000,000 OVER $25,000,000 $2,627,970 PLUS 11.85% OF EXCESS OVER $25,000,000 (viii) For taxable years beginning after two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over $13,900 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over $80,650 Over $215,400 $12,356 plus 6.85% of excess over BUT NOT OVER $1,077,550 $215,400 OVER $1,077,550 $71,413 PLUS 9.85% OF EXCESS BUT NOT OVER $5,000,000 OVER $1,077,550 OVER $5,000,000 $457,775 PLUS 10.85% OF BUT NOT OVER $25,000,000 EXCESS OVER $5,000,000 OVER $25,000,000 $2,627,775 PLUS 11.85% OF EXCESS OVER $25,000,000 § 4. Section 601 of the tax law is amended by adding a new subsection (d-2) to read as follows: (D-2) ALTERNATIVE TAX TABLE BENEFIT RECAPTURE. NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (D) OF THIS SECTION, FOR TAXABLE YEARS BEGIN- NING ON OR AFTER TWO THOUSAND TWENTY-ONE, THERE IS HEREBY IMPOSED A SUPPLEMENTAL TAX IN ADDITION TO THE TAX IMPOSED UNDER SUBSECTIONS (A), (B) AND (C) OF THIS SECTION FOR THE PURPOSE OF RECAPTURING THE BENEFIT OF THE TAX TABLES CONTAINED IN SUCH SUBSECTIONS. DURING THESE TAXABLE YEARS, ANY REFERENCE IN THIS CHAPTER TO SUBSECTION (D) OF THIS SECTION SHALL BE READ AS A REFERENCE TO THIS SUBSECTION. (1) FOR RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS AND RESIDENT SURVIVING SPOUSES, THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS DESCRIBED IN SUBPARAGRAPHS (A), (B), (C) D), (E), AND (F) OF THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE FRAC- TIONS IN SUCH SUBPARAGRAPHS. FURTHERMORE, IN MAKING THE CALCULATIONS DESCRIBED IN THESE SUBPARAGRAPHS IN TAXABLE YEARS BEGINNING AFTER TAX YEAR TWO THOUSAND SEVENTEEN, THE APPLICABLE TAX RATES SPECIFIED IN SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION SHALL BE SUBSTITUTED FOR THE RATES REFERENCED IN THESE SUBPARAGRAPHS. (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION S. 2509--B 10 (A) OF THIS SECTION NOT SUBJECT TO THE 6.45 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 6.65 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE TAX TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE HUNDRED FIFTY THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEV- ER, THIS SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 6.65 PERCENT TAX RATE. (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 6.85 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFIT IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER THREE HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 6.85 PERCENT TAX RATE. (D) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 9.85 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX BENEFITS IN SUBPARAGRAPHS (A), (B), AND (C) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TWO MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE. (E) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 10.85 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX BENEFITS IN SUBPARAGRAPHS (A), (B), (C), AND (D) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE S. 2509--B 11 EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TEN MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE. (F) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 11.85 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B), (C), (D), AND (E) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER FIFTY MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY TO TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE. (G) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE TAX TABLES IN SUBSECTION (A) OF THIS SECTION MULTIPLIED BY THE TAXPAY- ER'S TAXABLE INCOME. (2) FOR RESIDENT HEADS OF HOUSEHOLDS, THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS DESCRIBED IN SUBPARA- GRAPHS (A), (B), (C), (D), AND (E) OF THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPHS. FURTHERMORE, IN MAKING THE CALCULATIONS DESCRIBED IN THESE SUBPARAGRAPHS IN TAXABLE YEARS BEGINNING AFTER TAX YEAR TWO THOUSAND SEVENTEEN, THE APPLICABLE TAX RATES SPECI- FIED IN SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION SHALL BE SUBSTITUTED FOR THE RATES REFERENCED IN THESE SUBPARA- GRAPHS. (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO THE 6.65 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. (B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO THE 6.85 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION LESS THE TAX TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TWO HUNDRED FIFTY THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEV- ER, THIS SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 6.85 PERCENT TAX RATE. (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO THE 9.85 PERCENT RATE OF TAX FOR THE S. 2509--B 12 TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION LESS THE SUM OF THE TAX BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE MILLION FIVE HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE. (D) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO THE 10.85 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION LESS THE SUM OF THE TAX BENEFITS IN SUBPARAGRAPHS (A), (B), AND (C) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOU- SAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO TAXABLE YEARS BEGIN- NING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE. (E) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO THE 11.85 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B), (C), AND (D) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER THIRTY-SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY TO TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY- ONE. (F) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE TAX TABLES IN SUBSECTION (B) OF THIS SECTION MULTIPLIED BY THE TAXPAY- ER'S TAXABLE INCOME. (3) FOR RESIDENT UNMARRIED INDIVIDUALS, RESIDENT MARRIED INDIVIDUALS FILING SEPARATE RETURNS AND RESIDENT ESTATES AND TRUSTS, THE SUPPLE- MENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS DESCRIBED IN SUBPARAGRAPHS (A), (B), (C), (D), AND (E) OF THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPHS. FURTHER- MORE, IN MAKING THE CALCULATIONS DESCRIBED IN THESE SUBPARAGRAPHS IN TAXABLE YEARS BEGINNING AFTER TAX YEAR TWO THOUSAND SEVENTEEN, THE APPLICABLE TAX RATES SPECIFIED IN SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION SHALL BE SUBSTITUTED FOR THE RATES REFERENCED IN THESE SUBPARAGRAPHS. (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO THE 6.65 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE S. 2509--B 13 TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION. THE FRACTION IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE HUNDRED THOUSAND DOLLARS AND THE DENOMINA- TOR IS FIFTY THOUSAND DOLLARS. (B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO THE 6.85 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION LESS THE TAX TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TWO HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 6.85 PERCENT TAX RATE. (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO THE 9.85 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION LESS THE SUM OF THE TAX BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE. (D) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO THE 10.85 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION LESS THE SUM OF THE TAX BENEFITS IN SUBPARAGRAPHS (A), (B), AND (C) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER FIVE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE. (E) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO THE 11.85 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLI- CABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B), (C), AND (D) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TWENTY-FIVE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY S. 2509--B 14 THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY TO TAXABLE YEARS BEGIN- NING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE. (F) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE TAX TABLES IN SUBSECTION (C) OF THIS SECTION MULTIPLIED BY THE TAXPAY- ER'S TAXABLE INCOME. § 5. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after January 1, 2021 and shall apply to taxable years on and after such date. PART B Intentionally Omitted PART C Section 1. The tax law is amended by adding a new article 24-A to read as follows: ARTICLE 24-A PASS-THROUGH BUSINESS TAX SECTION 860. DEFINITIONS. 861. IMPOSITION AND RATE OF TAX. 862. CREDITS. 863. PAYMENT OF ESTIMATED TAX. 864. FILING OF RETURN AND PAYMENT OF TAX. 865. ACCOUNTING PERIODS AND METHODS. 866. PROCEDURAL PROVISIONS. § 860. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE: (A) AFFECTED PARTNERSHIP. AFFECTED PARTNERSHIP MEANS ANY PARTNERSHIP THAT HAS ELECTED PURSUANT TO SUBSECTION (B) OF SECTION EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE TO BE SUBJECT TO THE TAX IMPOSED BY THIS ARTI- CLE. (B) AFFECTED S CORPORATION. AFFECTED S CORPORATION MEANS ANY NEW YORK S CORPORATION THAT HAS ELECTED PURSUANT TO SUBSECTION (B) OF SECTION EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE TO BE SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE. (C) AFFECTED PASS-THROUGH ENTITY. AFFECTED PASS-THROUGH ENTITY MEANS ANY AFFECTED PARTNERSHIP OR ANY AFFECTED S CORPORATION. (D) LOWER-TIER AFFECTED PASS-THROUGH ENTITY. A LOWER-TIER AFFECTED PASS-THROUGH ENTITY MEANS ANY AFFECTED PASS-THROUGH ENTITY IN WHICH AN AFFECTED PASS-THROUGH ENTITY HAS A DIRECT OR INDIRECT OWNERSHIP INTER- EST. (E) NEW YORK S CORPORATION. NEW YORK S CORPORATION MEANS, WITH RESPECT TO ANY TAXABLE YEAR, ANY ENTITY FOR WHICH AN ELECTION IS IN EFFECT PURSUANT TO SUBSECTION (A) OF SECTION SIX HUNDRED SIXTY OF THIS CHAPTER, INCLUDING ANY CORPORATION FOR WHICH SUCH ELECTION HAS BEEN DEEMED TO HAVE BEEN MADE PURSUANT TO THE PROVISIONS OF SUBSECTION (I) OF SECTION SIX HUNDRED SIXTY OF THIS CHAPTER. (F) PARTNERSHIP. PARTNERSHIP MEANS ANY PARTNERSHIP AS PROVIDED IN SECTION 7701(A)(2) OF THE INTERNAL REVENUE CODE AND THE REGULATIONS PROMULGATED THEREUNDER. A PARTNERSHIP INCLUDES ANY LIMITED LIABILITY COMPANY OR OTHER ENTITY THAT IS TREATED AS A PARTNERSHIP FOR FEDERAL INCOME TAX PURPOSES. (G) PASS-THROUGH BUSINESS NET INCOME OR LOSS. PASS-THROUGH BUSINESS NET INCOME OR LOSS OF AN AFFECTED PASS-THROUGH ENTITY MEANS THE SEPA- S. 2509--B 15 RATELY AND NONSEPARATELY COMPUTED ITEMS, AS DESCRIBED IN SECTION 702(A) OF THE INTERNAL REVENUE CODE WITH RESPECT TO A PARTNERSHIP OR SECTION 1366 OF THE INTERNAL REVENUE CODE WITH RESPECT TO AN S CORPORATION, OF THE AFFECTED PASS-THROUGH ENTITY, ADJUSTED AS FOLLOWS: (1) INCREASED OR DECREASED BY ANY MODIFICATION DESCRIBED IN SUBSECTIONS (B), (C) OR (D) OF SECTION SIX HUNDRED TWELVE OF THIS CHAP- TER, SUBSECTION (C) OR PARAGRAPHS TWO OR THREE OF SUBSECTION (D) OF SECTION SIX HUNDRED FIFTEEN OF THIS CHAPTER; (2) THE PORTION OF ANY OF THE AFFECTED PASS-THROUGH ENTITY'S SEPARATE- LY AND NONSEPARATELY COMPUTED ITEMS THAT ARE ALLOCABLE TO NONRESIDENT INDIVIDUALS, TRUSTS, OR ESTATES FOR PURPOSES OF ARTICLE TWENTY-TWO OF THIS CHAPTER SHALL BE EXCLUDED TO THE EXTENT SUCH PORTION IS NOT DERIVED FROM OR CONNECTED WITH NEW YORK SOURCES; AND (3) THE AFFECTED PASS-THROUGH ENTITY'S SEPARATELY AND NONSEPARATELY COMPUTED ITEMS THAT WOULD OTHERWISE BE PASSED THROUGH TO SUCH ENTITY FROM ANY LOWER-TIER AFFECTED PASS-THROUGH ENTITY SHALL BE EXCLUDED TO THE EXTENT SUCH ITEMS ARE TAKEN INTO ACCOUNT IN DETERMINING THE TAX PAID BY A LOWER-TIER AFFECTED PASS-THROUGH ENTITY PURSUANT TO SECTION EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE. FOR PURPOSES OF THIS SUBSECTION, THE PORTION OF ANY SEPARATELY AND NONSEPARATELY COMPUTED ITEM THAT IS NOT DERIVED FROM OR CONNECTED WITH NEW YORK SOURCES SHALL BE DETERMINED UNDER REGULATIONS OR GUIDANCE ISSUED BY THE TAX COMMISSION CONSISTENT WITH THE APPLICABLE RULES USED TO DETERMINE THE PORTION OF A TAXPAYER'S DISTRIBUTIVE SHARE OF PARTNER- SHIP INCOME OR PRO RATA SHARE OF NEW YORK S CORPORATION INCOME THAT IS DERIVED FROM NEW YORK SOURCES PURSUANT TO THE RULES SET FORTH IN SECTION SIX HUNDRED THIRTY-TWO OF THIS CHAPTER. § 861. IMPOSITION AND RATE OF TAX. (A) GENERAL. A TAX IS HEREBY IMPOSED FOR EACH TAXABLE YEAR ON THE PASS-THROUGH BUSINESS NET INCOME OF EVERY AFFECTED PASS-THROUGH ENTITY DOING BUSINESS WITHIN THIS STATE. THIS TAX SHALL BE IN ADDITION TO ANY OTHER TAXES IMPOSED AND SHALL BE AT THE RATE OF 6.85 PERCENT FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE. IN THE CASE OF AN AFFECTED PASS- THROUGH ENTITY THAT IS A PARTNERSHIP OR A NEW YORK S CORPORATION FOR ONLY A PORTION OF ITS TAXABLE YEAR, THE AFFECTED PARTNERSHIP OR AFFECTED S CORPORATION SHALL BE SUBJECT TO THIS TAX ON ONLY THAT PORTION OF ITS PASS-THROUGH BUSINESS NET INCOME ATTRIBUTABLE TO THE PORTION OF THE YEAR FOR WHICH IT IS A PARTNERSHIP OR A NEW YORK S CORPORATION, AS DETERMINED PURSUANT TO REGULATIONS AND GUIDANCE SET FORTH BY THE COMMISSIONER. (B) ELECTION. ANY PARTNERSHIP OR NEW YORK S CORPORATION MAY ELECT TO HAVE NEW YORK INCOME TAX IMPOSED AT THE ENTITY LEVEL UNDER SUBSECTION (A) OF THIS SECTION. AN ELECTION UNDER THIS SUBSECTION SHALL BE MADE ON THE PASS-THROUGH ENTITY BUSINESS TAX RETURN FOR THE AFFECTED PASS- THROUGH ENTITY IN SUCH MANNER AS THE COMMISSIONER MAY PRESCRIBE BY REGU- LATION OR INSTRUCTION. AN ELECTION UNDER THIS SUBSECTION MUST BE MADE ON AN ANNUAL BASIS AND SHALL BE EFFECTIVE FOR THE AFFECTED PASS-THROUGH ENTITY ONLY FOR THE TAXABLE YEAR FOR WHICH THE ELECTION IS MADE. § 862. CREDITS. (A) GENERAL. AN AFFECTED PASS-THROUGH ENTITY SHALL BE ALLOWED A CREDIT AGAINST THE TAX OTHERWISE DUE UNDER THIS ARTICLE FOR ANY INCOME TAX IMPOSED FOR THE TAXABLE YEAR BY ANOTHER STATE OF THE UNITED STATES, A POLITICAL SUBDIVISION OF SUCH STATE, THE DISTRICT OF COLUMBIA OR A PROVINCE OF CANADA, UPON INCOME BOTH DERIVED THEREFROM AND INCLUDED IN THE AFFECTED PASS-THROUGH ENTITY'S PASS-THROUGH BUSINESS NET INCOME OR LOSS UNDER THIS ARTICLE. THE TERM "INCOME TAX IMPOSED" IN THE PREVIOUS SENTENCE SHALL INCLUDE: (1) ANY INCOME TAX IMPOSED UPON OR PAYABLE BY THE AFFECTED PASS-THROUGH ENTITY ITSELF, PROVIDED SUCH TAX S. 2509--B 16 IMPOSITION OR PAYMENT RESULTS FROM A TAX THAT THE COMMISSIONER DETER- MINES IS SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED BY THIS ARTICLE; AND (2) ANY INCOME TAX IMPOSED UPON OR PAYABLE BY ANY DIRECT OR INDIRECT PARTNER OR SHAREHOLDER OF THE AFFECTED PASS-THROUGH ENTITY WHO IS A RESIDENT INDIVIDUAL, ESTATE, OR TRUST FOR PURPOSES OF ARTICLE TWENTY-TWO OF THIS CHAPTER. (B) LIMITATIONS. (1) THE CREDIT UNDER THIS SECTION SHALL NOT EXCEED THE PERCENTAGE OF THE TAX OTHERWISE DUE UNDER THIS ARTICLE DETERMINED BY DIVIDING THE PORTION OF THE TAXPAYER'S PASS-THROUGH BUSINESS NET INCOME THAT IS SUBJECT TO TAXATION BY SUCH OTHER JURISDICTION BY THE TOTAL AMOUNT OF THE TAXPAYER'S PASS-THROUGH BUSINESS NET INCOME. (2) THE CREDIT UNDER THIS SECTION SHALL NOT REDUCE THE TAX OTHERWISE DUE UNDER THIS ARTICLE TO AN AMOUNT LESS THAN WOULD HAVE BEEN DUE IF THE INCOME SUBJECT TO TAXATION BY SUCH OTHER JURISDICTION WERE EXCLUDED FROM THE TAXPAYER'S NEW YORK INCOME. (3) IN THE CASE OF TAX PAID BY A DIRECT OR INDIRECT PARTNER OR SHARE- HOLDER THAT ELECTS TO CLAIM THE FOREIGN TAX CREDIT FOR FEDERAL INCOME TAX PURPOSES, THE CREDIT UNDER THIS SECTION FOR INCOME TAX IMPOSED BY A PROVINCE OF CANADA SHALL BE ALLOWED FOR THAT PORTION OF THE PROVINCIAL TAX NOT CLAIMED FOR FEDERAL PURPOSES FOR THE TAXABLE YEAR OR A PRECEDING TAXABLE YEAR, PROVIDED HOWEVER, TO THE EXTENT THE PROVINCIAL TAX IS CLAIMED FOR FEDERAL PURPOSES FOR A SUCCEEDING TAXABLE YEAR, THE CREDIT UNDER THIS SECTION MUST BE ADDED BACK IN SUCH SUCCEEDING TAXABLE YEAR. THE PROVINCIAL TAX SHALL BE DEEMED TO BE CLAIMED LAST FOR FEDERAL INCOME TAX PURPOSES AND FOR PURPOSES OF THIS SUBSECTION. § 863. PAYMENT OF ESTIMATED TAX. (A) DEFINITION OF ESTIMATED TAX. ESTIMATED TAX MEANS THE AMOUNT THAT AN AFFECTED PASS-THROUGH ENTITY ESTIMATES TO BE THE TAX IMPOSED FOR THE CURRENT TAXABLE YEAR BY SECTION EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE. (B) ANNUAL ESTIMATED TAX PAYMENT. THE REQUIRED ANNUAL ESTIMATED TAX PAYMENT IS THE LESSER OF (1) NINETY PERCENT OF THE ESTIMATED TAX FOR THE YEAR OR (2) ONE HUNDRED TEN PERCENT OF THE TAX SHOWN ON THE RETURN OF THE AFFECTED PASS-THROUGH ENTITY FOR THE PRECEDING TAXABLE YEAR. IF THE AFFECTED PASS-THROUGH ENTITY WAS NOT IN EXISTENCE IN THE PREVIOUS YEAR OR DID NOT ELECT TO BE SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE IN THE PRECEDING YEAR, THEN NO ESTIMATED TAX IS DUE FOR THE CURRENT TAXABLE YEAR. (C) GENERAL. THE ANNUAL ESTIMATED TAX PAYMENT SHALL BE PAID AS FOLLOWS FOR AN AFFECTED PASS-THROUGH ENTITY THAT REPORTS ON A CALENDAR YEAR BASIS: (1) IF SUCH ANNUAL ESTIMATED TAX PAYMENT CAN REASONABLY BE EXPECTED TO EXCEED ONE THOUSAND DOLLARS ON OR BEFORE MARCH FIFTEENTH OF THE TAXABLE YEAR, THE ANNUAL ESTIMATED TAX PAYMENT SHALL BE PAID IN FOUR EQUAL INSTALLMENTS ON MARCH FIFTEENTH, JUNE FIFTEENTH, SEPTEMBER FIFTEENTH AND DECEMBER FIFTEENTH; (2) IF SUCH ANNUAL ESTIMATED TAX PAYMENT CAN REASONABLY BE EXPECTED TO EXCEED ONE THOUSAND DOLLARS AFTER MARCH FIFTEENTH AND NOT AFTER JUNE FIFTEENTH OF THE TAXABLE YEAR, THE ANNUAL ESTIMATED TAX PAYMENT SHALL BE PAID IN THREE EQUAL INSTALLMENTS ON JUNE FIFTEENTH, SEPTEMBER FIFTEENTH AND DECEMBER FIFTEENTH; (3) IF SUCH ANNUAL ESTIMATED TAX PAYMENT CAN REASONABLY BE EXPECTED TO EXCEED ONE THOUSAND DOLLARS AFTER JUNE FIFTEENTH AND NOT AFTER SEPTEMBER FIFTEENTH OF THE TAXABLE YEAR, THE ANNUAL ESTIMATED TAX PAYMENT SHALL BE PAID IN TWO EQUAL INSTALLMENTS ON SEPTEMBER FIFTEENTH AND DECEMBER FIFTEENTH; AND S. 2509--B 17 (4) IF SUCH ANNUAL ESTIMATED TAX PAYMENT CAN REASONABLY BE EXPECTED TO EXCEED ONE THOUSAND DOLLARS AFTER SEPTEMBER FIFTEENTH OF THE TAXABLE YEAR, THE ANNUAL ESTIMATED TAX PAYMENT SHALL BE PAID ON DECEMBER FIFTEENTH. (D) THIS SECTION SHALL APPLY TO A TAXABLE YEAR OF LESS THAN TWELVE MONTHS IN ACCORDANCE WITH PROCEDURES ESTABLISHED BY THE COMMISSIONER. (E) THIS SECTION SHALL APPLY TO A TAXABLE YEAR OTHER THAN A CALENDAR YEAR BY THE SUBSTITUTION OF THE MONTHS OF SUCH FISCAL YEAR FOR THE CORRESPONDING MONTHS SPECIFIED IN THIS SECTION. (F) AN AFFECTED PASS-THROUGH ENTITY MAY ELECT TO PAY ANY INSTALLMENT OF ITS ESTIMATED TAX PRIOR TO THE DATE PRESCRIBED FOR THE PAYMENT THERE- OF. § 864. FILING OF RETURN AND PAYMENT OF TAX. (A) GENERAL. ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR, EACH AFFECTED PASS-THROUGH ENTITY SHALL BE REQUIRED TO TRANSMIT TO THE COMMISSIONER A RETURN IN A FORM PRESCRIBED BY THE COMMISSIONER. (B) INFORMATION ON RETURN. EACH AFFECTED PASS-THROUGH ENTITY SHALL REPORT ANY TAX DUE UNDER THIS ARTICLE ON THE FACE OF SUCH RETURN AND SUCH OTHER PERTINENT INFORMATION AS THE COMMISSIONER MAY BY REGULATIONS AND INSTRUCTIONS PRESCRIBE. THE BALANCE OF ANY TAX SHOWN ON THE FACE OF SUCH RETURN, NOT PREVIOUSLY PAID AS INSTALLMENTS OF ESTIMATED TAX, SHALL BE PAID WITH SUCH RETURN. § 865. ACCOUNTING PERIODS AND METHODS. (A) ACCOUNTING PERIODS. AN AFFECTED PASS-THROUGH ENTITY'S TAXABLE YEAR UNDER THIS ARTICLE SHALL BE THE SAME AS THE AFFECTED PASS-THROUGH ENTITY'S TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES. (B) ACCOUNTING METHODS. AN AFFECTED PASS-THROUGH ENTITY'S METHOD OF ACCOUNTING UNDER THIS ARTICLE SHALL BE THE SAME AS THE AFFECTED PASS- THROUGH ENTITY'S METHOD OF ACCOUNTING FOR FEDERAL INCOME TAX PURPOSES. (C) CHANGE OF ACCOUNTING PERIOD OR METHOD. (1) IF AN AFFECTED PASS- THROUGH ENTITY'S TAXABLE YEAR OR METHOD OF ACCOUNTING IS CHANGED FOR FEDERAL INCOME TAX PURPOSES, THE TAXABLE YEAR OR METHOD OF ACCOUNTING FOR PURPOSES OF THIS ARTICLE SHALL BE SIMILARLY CHANGED. (2) IF AN AFFECTED PASS-THROUGH ENTITY'S METHOD OF ACCOUNTING IS CHANGED, ANY ADDITIONAL TAX THAT RESULTS FROM ADJUSTMENTS DETERMINED TO BE NECESSARY SOLELY BY REASON OF SUCH CHANGE SHALL NOT BE GREATER THAN IF SUCH ADJUSTMENTS WERE RATABLY ALLOCATED AND INCLUDED FOR THE TAXABLE YEAR OF THE CHANGE AND THE PRECEDING TAXABLE YEARS, NOT IN EXCESS OF TWO, DURING WHICH THE AFFECTED PARTNERSHIP USED THE METHOD OF ACCOUNTING FROM WHICH THE CHANGE IS MADE. § 866. PROCEDURAL PROVISIONS. (A) GENERAL. ALL PROCEDURAL PROVISIONS OF ARTICLE TWENTY-TWO OF THIS CHAPTER WILL APPLY TO THE PROVISIONS OF THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF ARTICLE TWENTY-TWO OF THIS CHAPTER HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND HAD BEEN SPECIFICALLY ADJUSTED FOR AND EXPRESSLY REFERRED TO THE TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. (B) LIABILITY FOR TAX. ONLY THE AFFECTED PASS-THROUGH ENTITY SHALL BE LIABLE FOR THE TAX UNDER THIS ARTICLE, AND NO PARTNER OR SHAREHOLDER THAT HAS A DIRECT OR INDIRECT OWNERSHIP INTEREST IN THE AFFECTED PASS- THROUGH ENTITY SHALL BE PERSONALLY LIABLE FOR SUCH TAX. (C) DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, INTEREST, PENAL- TIES, AND FEES 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. S. 2509--B 18 (D) SECRECY PROVISION. ALL THE PROVISIONS OF SUBSECTION (A) OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS CHAPTER WILL BE APPLIED TO THE PROVISIONS OF THIS ARTICLE. NOTWITHSTANDING ANY PROVISIONS OF THIS CHAP- TER TO THE CONTRARY, THE COMMISSIONER MAY DISCLOSE INFORMATION AND RETURNS REGARDING THE CALCULATION AND PAYMENT OF THE TAX IMPOSED BY THIS ARTICLE TO AN AFFECTED PASS-THROUGH ENTITY, TO ITS LOWER-TIERED AFFECTED PASS-THROUGH ENTITY OR ENTITIES, AND TO ANY PARTNER OR SHAREHOLDER THAT HAS A DIRECT OR INDIRECT OWNERSHIP INTEREST IN THE AFFECTED PASS-THROUGH ENTITY AND TO WHICH IS ALLOCABLE ANY SEPARATELY OR NONSEPARATELY COMPUTED ITEMS, AS DESCRIBED IN SECTION 702(A) OF THE INTERNAL REVENUE CODE WITH RESPECT TO A PARTNERSHIP OR SECTION 1366 OF THE INTERNAL REVENUE CODE WITH RESPECT TO AN S CORPORATION. § 2. The opening paragraph of paragraph (a) of subdivision 1 of section 210 of the tax law, as amended by section 10 of part T of chap- ter 59 of the laws of 2015, is amended to read as follows: For taxable years beginning before January first, two thousand sixteen, the amount prescribed by this paragraph shall be computed at the rate of seven and one-tenth percent of the taxpayer's business income base. For taxable years beginning on or after January first, two thousand sixteen, the amount prescribed by this paragraph shall be six and one-half percent of the taxpayer's business income base. The taxpay- er's business income base shall mean the portion of the taxpayer's busi- ness income apportioned within the state as hereinafter provided. Howev- er, in the case of a small business taxpayer, as defined in paragraph (f) of this subdivision, the amount prescribed by this paragraph shall be computed pursuant to subparagraph (iv) of this paragraph and in the case of a manufacturer, as defined in subparagraph (vi) of this para- graph, the amount prescribed by this paragraph shall be computed pursu- ant to subparagraph (vi) of this paragraph, and, in the case of a quali- fied emerging technology company, as defined in subparagraph (vii) of this paragraph, the amount prescribed by this paragraph shall be computed pursuant to subparagraph (vii) of this paragraph. NOTWITH- STANDING THE PROVISIONS OF THIS PARAGRAPH, WITH RESPECT TO ANY TAXPAYER THAT HAS A DIRECT OR INDIRECT OWNERSHIP INTEREST IN ONE OR MORE PASS- THROUGH ENTITIES THAT HAS ELECTED TO BE SUBJECT TO TAX PURSUANT TO SUBSECTION (A) OF SECTION EIGHT HUNDRED SIXTY-ONE OF THIS CHAPTER, INCLUDING ANY TAXPAYER THAT IS A SMALL BUSINESS TAXPAYER, A MANUFACTUR- ER, OR A QUALIFIED EMERGING TECHNOLOGY COMPANY, THE TAXPAYER'S BUSINESS INCOME BASE WILL BE DECREASED BY AN AMOUNT EQUAL TO THE PRODUCT OF (1) THE SUM OF THE PORTIONS OF THE TAXPAYER'S DISTRIBUTIVE OR PRO RATA SHARE OF EACH SEPARATELY AND NONSEPARATELY COMPUTED ITEM AS DESCRIBED IN SECTION 702(A) OR SECTION 1366 OF THE INTERNAL REVENUE CODE THAT IS DERIVED FROM OR CONNECTED WITH NEW YORK SOURCES AS COMPUTED PURSUANT TO SUBSECTION (G) OF SECTION EIGHT HUNDRED SIXTY OF THIS CHAPTER THAT IS BEING TAKEN INTO ACCOUNT IN DETERMINING THE TAX PAID BY AN AFFECTED PASS-THROUGH ENTITY PURSUANT TO SUBSECTION (A) OF SECTION EIGHT HUNDRED SIXTY-ONE OF THIS CHAPTER AND (2) A FRACTION, THE NUMERATOR OF WHICH IS THE TAX RATE IMPOSED ON AFFECTED PASS-THROUGH ENTITIES BY SUBSECTION (A) OF SECTION EIGHT HUNDRED SIXTY-ONE OF THIS CHAPTER AND THE DENOMINATOR OF WHICH IS THE TAX RATE IMPOSED ON THE BUSINESS INCOME BASE OF THE TAXPAYER PURSUANT TO THIS PARAGRAPH. IF THE AMOUNT OF THE REDUCTION ALLOWABLE TO THE TAXPAYER UNDER THE PREVIOUS SENTENCE FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX BASE FOR SUCH YEAR, THE EXCESS ALLOWED FOR THE TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE USED TO REDUCE THE TAXPAYER'S TAX BASE IN SUCH SUBSEQUENT YEAR OR YEARS. S. 2509--B 19 § 3. Section 209-B of the tax law is amended by adding a new subdivi- sion 7 to read as follows: 7. IN DETERMINING THE AMOUNT OF THE SURCHARGE TO BE IMPOSED ON A TAXPAYER PURSUANT TO THIS SECTION, THE AMOUNT OF SUCH SURCHARGE WILL BE DETERMINED WITHOUT TAKING INTO ACCOUNT ANY AFFECTED PASS-THROUGH ENTITY REDUCTION COMPUTED PURSUANT TO PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER. § 4. Subsection (a) of section 611 of the tax law, as amended by chap- ter 28 of the laws of 1987, is amended to read as follows: (a) General. The New York taxable income of a resident individual shall be his New York adjusted gross income less his New York deduction and New York exemptions, as determined under this part. NOTWITHSTANDING THE FOREGOING PROVISION, WITH RESPECT TO ANY RESIDENT INDIVIDUAL THAT HAS A DIRECT OR INDIRECT OWNERSHIP INTEREST IN ONE OR MORE AFFECTED PASS-THROUGH ENTITIES SUBJECT TO THE TAX IMPOSED PURSUANT TO ARTICLE TWENTY-FOUR-A OF THIS CHAPTER, THE RESIDENT INDIVIDUAL'S NEW YORK TAXA- BLE INCOME SHALL BE ADJUSTED TO EXCLUDE SUCH INDIVIDUAL'S DISTRIBUTIVE OR PRO RATA SHARES OF EACH SEPARATELY AND NONSEPARATELY COMPUTED ITEM, AS DESCRIBED IN SECTION 702(A) OF THE INTERNAL REVENUE CODE WITH RESPECT TO A PARTNERSHIP OR SECTION 1366 OF THE INTERNAL REVENUE CODE WITH RESPECT TO AN S CORPORATION, FROM ALL AFFECTED PASS-THROUGH ENTITIES IN WHICH THE TAXPAYER HAS A DIRECT OR INDIRECT OWNERSHIP INTEREST. IF THE AMOUNT OF THE ADJUSTMENT MADE PURSUANT TO THE PREVIOUS SENTENCE SHALL EXCEED THE RESIDENT INDIVIDUAL'S NEW YORK TAXABLE INCOME FOR SUCH YEAR, THE EXCESS ALLOWED FOR THE TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE USED TO REDUCE THE RESIDENT INDIVID- UAL'S NEW YORK TAXABLE INCOME IN SUCH SUBSEQUENT YEAR OR YEARS. § 5. Section 618 of the tax law is amended by adding a new subsection 6 to read as follows: (6) WITH RESPECT TO A RESIDENT ESTATE OR TRUST THAT HAS A DIRECT OR INDIRECT OWNERSHIP INTEREST IN ONE OR MORE AFFECTED PASS-THROUGH ENTI- TIES SUBJECT TO THE TAX IMPOSED PURSUANT TO ARTICLE TWENTY-FOUR-A OF THIS CHAPTER, THE RESIDENT ESTATE'S OR TRUST'S NEW YORK TAXABLE INCOME SHALL BE ADJUSTED TO EXCLUDE SUCH ESTATE'S OR TRUST'S DISTRIBUTIVE OR PRO RATA SHARES OF EACH SEPARATELY AND NONSEPARATELY COMPUTED ITEM, AS DESCRIBED IN SECTION 702(A) OF THE INTERNAL REVENUE CODE WITH RESPECT TO A PARTNERSHIP OR SECTION 1366 OF THE INTERNAL REVENUE CODE WITH RESPECT TO AN S CORPORATION, FROM ALL AFFECTED PASS-THROUGH ENTITIES IN WHICH THE TAXPAYER HAS A DIRECT OR INDIRECT OWNERSHIP INTEREST. IF THE AMOUNT OF THE ADJUSTMENT MADE PURSUANT TO THE PREVIOUS SENTENCE SHALL EXCEED THE ESTATE'S OR THE TRUST'S NEW YORK TAXABLE INCOME FOR SUCH YEAR, THE EXCESS ALLOWED FOR THE TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE USED TO REDUCE THE ESTATE'S OR TRUST'S NEW YORK TAXABLE INCOME IN SUCH SUBSEQUENT YEAR OR YEARS. § 6. Subsection (e) of section 601 of the tax law is amended by adding a new paragraph 5 to read as follows: (5) NONRESIDENT PARTNERS AND SHAREHOLDERS IN AFFECTED PASS-THROUGH ENTITIES. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBSECTION, WITH RESPECT TO EVERY NONRESIDENT AND PART-YEAR RESIDENT INDIVIDUAL AND TRUST AND EVERY NONRESIDENT ESTATE THAT HAS A DIRECT OR INDIRECT OWNERSHIP INTEREST IN ONE OR MORE AFFECTED PASS-THROUGH ENTITIES SUBJECT TO THE TAX IMPOSED PURSUANT TO ARTICLE TWENTY-FOUR-A OF THIS CHAPTER, THE TAX IMPOSED PURSUANT TO PARAGRAPH ONE OF THIS SUBSECTION SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE MODIFIED TAX BASE AND THE SURTAX TAX BASE MULTI- PLIED BY THEIR RESPECTIVE APPLICABLE NEW YORK SOURCE FRACTIONS. S. 2509--B 20 (A) MODIFIED TAX BASE. THE MODIFIED TAX BASE OF A TAXPAYER UNDER THIS PARAGRAPH SHALL BE CALCULATED IN THE SAME MANNER AS THE TAX BASE IN PARAGRAPH TWO OF THIS SUBSECTION, EXCEPT THAT, NOTWITHSTANDING SUBSECTION (A) OF SECTION SIX HUNDRED ELEVEN OR SUBSECTION SIX OF SECTION SIX HUNDRED EIGHTEEN OF THIS ARTICLE, SEPARATELY AND NONSEPA- RATELY COMPUTED ITEMS WITH RESPECT TO SUCH AFFECTED PASS-THROUGH ENTI- TIES SHALL NOT BE EXCLUDED, AND THE RATE TABLES UNDER SUBSECTIONS (A), (B) AND (C) AND THE SUPPLEMENTAL TAX UNDER SUBSECTION (D-1) OF THIS SECTION SHALL BE APPLIED BY REDUCING EACH TAX RATE IN EXCESS OF 6.85% TO 6.85%, AND ADJUSTING EACH TAX TABLE ACCORDINGLY. THE APPLICABLE NEW YORK SOURCE FRACTION FOR THE MODIFIED TAX BASE SHALL BE CALCULATED IN THE SAME MANNER AS THE NEW YORK SOURCE FRACTION UNDER PARAGRAPH THREE OF THIS SUBSECTION, INCLUDING THE EXCLUSION OF SEPARATELY AND NONSEPARATELY COMPUTED ITEMS WITH RESPECT TO SUCH AFFECTED PASS-THROUGH ENTITIES UNDER SUBSECTION (A) OF SECTION SIX HUNDRED ELEVEN OR SUBSECTION SIX OF SECTION SIX HUNDRED EIGHTEEN OF THIS ARTICLE, AS APPLICABLE, IN CALCU- LATING THE NUMERATOR OF SUCH FRACTION. IF THE AMOUNT OF SUCH SEPARATELY AND NONSEPARATELY COMPUTED ITEMS SO EXCLUDED EXCEEDS THE NUMERATOR OF THE NEW YORK SOURCE FRACTION FOR SUCH YEAR BEFORE SUCH EXCLUSION, THE EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE USED TO REDUCE THE NUMERATOR OF THE TAXPAYER'S APPLICABLE NEW YORK SOURCE FRACTION UNDER THIS SUBPARAGRAPH FOR SUCH TAXABLE YEARS. (B) SURTAX TAX BASE. THE SURTAX TAX BASE OF A TAXPAYER UNDER THIS PARAGRAPH SHALL BE EQUAL TO THE PORTION OF THE TAXPAYER'S NEW YORK TAXA- BLE INCOME TO WHICH THE 8.82% RATE WOULD HAVE APPLIED IN COMPUTING THE TAXPAYER'S MODIFIED TAX BASE UNDER THE PRECEDING SUBPARAGRAPH (AFTER TAKING INTO ACCOUNT THE TAX TABLE BENEFIT RECAPTURE PROVISIONS UNDER SUBSECTION (D-1) OF THIS SECTION) IF THE TAX RATE HAD NOT BEEN CAPPED AT 6.85% UNDER THAT SUBPARAGRAPH MULTIPLIED BY A FACTOR OF 1.97%. THE APPLICABLE NEW YORK SOURCE FRACTION FOR THE SURTAX TAX BASE SHALL BE CALCULATED IN THE SAME MANNER AS THE NEW YORK SOURCE FRACTION UNDER PARAGRAPH THREE OF THIS SUBSECTION, EXCEPT THAT SEPARATELY AND NONSEPA- RATELY COMPUTED ITEMS WITH RESPECT TO SUCH AFFECTED PASS-THROUGH ENTI- TIES SHALL NOT BE EXCLUDED IN CALCULATING THE NUMERATOR OF SUCH FRAC- TION. § 7. Section 606 of the tax law is amended by adding a new subsection (kkk) to read as follows: (KKK) TAXPAYERS WITH DIRECT OR INDIRECT OWNERSHIP INTERESTS IN AFFECTED PASS-THROUGH ENTITIES. NOTWITHSTANDING THE OTHER PROVISIONS OF THIS SUBSECTION, A TAXPAYER THAT HAS A DIRECT OR INDIRECT OWNERSHIP INTEREST IN AN AFFECTED PASS-THROUGH ENTITY THAT IS SUBJECT TO TAX PURSUANT TO ARTICLE TWENTY-FOUR-A OF THIS CHAPTER IS NOT ENTITLED TO CLAIM A CREDIT OTHERWISE PROVIDED BY THIS SECTION TO THE EXTENT THAT THE CREDIT WAS CLAIMED BY THE AFFECTED PASS-THROUGH ENTITY FOR PURPOSES OF DETERMINING ITS TAX LIABILITY UNDER ARTICLE TWENTY-FOUR-A OF THIS CHAP- TER. § 8. Subsection (d) of section 620 of the tax law, as added by chapter 166 of the laws of 1991, is amended to read as follows: (d) S corporation shareholders AND PARTNERS. In the case of a share- holder of an S corporation, the term "income tax" in subsection (a) of this section shall [not] include (1) any such tax imposed upon or paya- ble by the [corporation, but shall include any such tax] SHAREHOLDER with respect to the income of the corporation [imposed upon or payable by the shareholder], without regard to whether an election independent of the federal S election was required to effect such imposition upon the shareholder OF SUCH S CORPORATION AND (2) SUCH SHAREHOLDER'S PRO S. 2509--B 21 RATA SHARE OF ANY SUCH TAX IMPOSED UPON OR PAYABLE BY THE CORPORATION, PROVIDED SUCH TAX IMPOSITION OR PAYMENT RESULTS FROM A TAX THAT THE COMMISSIONER DETERMINES IS SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED BY ARTICLE TWENTY-FOUR-A OF THIS CHAPTER. IN THE CASE OF A PARTNER IN A PARTNERSHIP, THE TERM "INCOME TAX" IN SUBSECTION (A) OF THIS SECTION SHALL (1) INCLUDE ANY SUCH TAX IMPOSED UPON OR PAYABLE BY THE PARTNER WITH RESPECT TO THE INCOME OF THE PARTNERSHIP AND (2) SUCH PARTNER'S DISTRIBUTIVE SHARE OF ANY SUCH TAX IMPOSED UPON OR PAYABLE BY THE PART- NERSHIP, PROVIDED SUCH TAX IMPOSITION OR PAYMENT RESULTS FROM A TAX THAT THE COMMISSIONER DETERMINES IS SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED BY ARTICLE TWENTY-FOUR-A OF THIS CHAPTER. § 9. Section 620 of the tax law is amended by adding a new subsection (e) to read as follows: (E) TAXPAYERS WITH DIRECT OR INDIRECT OWNERSHIP INTERESTS IN AFFECTED PASS-THROUGH ENTITIES. NOTWITHSTANDING THE OTHER PROVISIONS OF THIS SECTION, A TAXPAYER THAT HAS A DIRECT OR INDIRECT OWNERSHIP INTEREST IN AN AFFECTED PASS-THROUGH ENTITY THAT IS SUBJECT TO TAX PURSUANT TO ARTI- CLE TWENTY-FOUR-A OF THIS CHAPTER IS NOT ENTITLED TO CLAIM A CREDIT OTHERWISE PROVIDED BY THIS SECTION TO THE EXTENT THAT ANY INCOME TAX IS CLAIMED AS A CREDIT PURSUANT TO SECTION EIGHT HUNDRED SIXTY-TWO OF THIS CHAPTER BY THE AFFECTED PASS-THROUGH ENTITY FOR PURPOSES OF DETERMINING ITS TAX LIABILITY UNDER ARTICLE TWENTY-FOUR-A OF THIS CHAPTER. § 10. Subparagraph (A) of paragraph 4 of subsection (c) of section 658 of the tax law, as amended by section 72 of part A of chapter 59 of the laws of 2014, is amended to read as follows: (A) General. Every entity OTHER THAN AN ENTITY SUBJECT TO TAX UNDER ARTICLE TWENTY-FOUR-A OF THIS CHAPTER, which is a partnership, other than a publicly traded partnership as defined in section 7704 of the federal Internal Revenue Code, subchapter K limited liability company or an S corporation for which the election provided for in subsection (a) of section six hundred sixty of this part is in effect, which has part- ners, members or shareholders who are nonresident individuals, as defined under subsection (b) of section six hundred five of this arti- cle, or C corporations, and which has any income derived from New York sources, determined in accordance with the applicable rules of section six hundred thirty-one of this article as in the case of a nonresident individual, shall pay estimated tax on such income on behalf of such partners, members or shareholders in the manner and at the times prescribed by subsection (c) of section six hundred eighty-five of this article. For purposes of this paragraph, the term "estimated tax" shall mean a partner's, member's or shareholder's distributive share or pro rata share of the entity income derived from New York sources, multi- plied by the highest rate of tax prescribed by section six hundred one of this article for the taxable year of any partner, member or share- holder who is an individual taxpayer, or paragraph (a) of subdivision one of section two hundred ten of this chapter for the taxable year of any partner, member or shareholder which is a C corporation, whether or not such C corporation is subject to tax under article nine, nine-A or thirty-three of this chapter, and reduced by the distributive share or pro rata share of any credits determined under section one hundred eighty-seven, one hundred eighty-seven-a, six hundred six or fifteen hundred eleven of this chapter, whichever is applicable, derived from the entity. § 11. Section 612 of the tax law is amended by adding a new subsection (y) to read as follows: S. 2509--B 22 (Y) THE ELECTION BY A PARTNERSHIP OR S CORPORATION PURSUANT TO SUBSECTION (B) OF SECTION EIGHT HUNDRED SIXTY-ONE OF THIS CHAPTER SHALL HAVE NO IMPACT ON THE ADDITIONS AND SUBTRACTIONS TO BE TAKEN INTO ACCOUNT UNDER SUBSECTION (N) OF THIS SECTION AND SUCH ELECTION SHALL HAVE NO IMPACT ON THE DETERMINATION OF THE BASIS OF A PARTNER OR SHARE- HOLDER IN AN INTEREST IN THE PARTNERSHIP OR IN THE STOCK OR INDEBTEDNESS OF THE S CORPORATION. § 12. 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-D, twenty-one, twenty-two, [twenty-four] TWENTY- FOUR-A, 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 thir- ty-three-A of this chapter shall be deposited daily in one account with such responsible banks, banking houses or trust companies as may be designated by the comptroller, to the credit of the comptroller. Such an account may be established in one or more of such depositories. Such deposits shall be kept separate and apart from all other money in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the total revenue collected or received under such articles of this chapter, the comptroller shall retain in the comptroller's hands such amount as the commissioner may determine to be necessary for refunds or reimbursements under such arti- cles 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 S. 2509--B 23 loans pursuant to subdivision five of section one hundred seventy-one-d and subdivision six of section one hundred seventy-one-e of this arti- cle, (iii) and except further that, notwithstanding any law, the comp- troller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpay- ment of tax imposed by article nine, nine-A, twenty-two, thirty, thir- ty-A, thirty-B or thirty-three of this chapter, and any interest there- on, which is certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall credit to the special offset fiduciary account, pursuant to section ninety-one-c of the state finance law, any such amount credita- ble as a liability as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty- two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commission- er as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by arti- cle twenty-two of this chapter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seventy-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corpo- ration, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy-one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 13. Section 601 of the tax law is amended by adding a new subsection (j) to read as follows: (J) FOR EVERY RESIDENT INDIVIDUAL, ESTATE OR TRUST THAT HAS A DIRECT OR INDIRECT OWNERSHIP INTEREST IN ONE OR MORE PASS-THROUGH ENTITIES THAT HAS ELECTED TO BE SUBJECT TO TAX PURSUANT TO SUBSECTION (A) OF SECTION EIGHT HUNDRED SIXTY-ONE OF THIS CHAPTER, THERE IS HEREBY IMPOSED FOR EACH TAXABLE YEAR A SURTAX AT THE RATE OF 1.97% ON THE AMOUNT BY WHICH THE PORTION OF SUCH INDIVIDUAL'S, ESTATE'S OR TRUST'S NEW YORK TAXABLE INCOME SUBJECT TO TAX AT THE RATE OF 8.82% WOULD INCREASE IF THE RESI- DENT INDIVIDUAL'S, ESTATE'S OR TRUST'S NEW YORK TAXABLE INCOME WAS ADJUSTED TO ADD BACK SUCH INDIVIDUAL'S, ESTATE'S OR TRUST'S DISTRIBUTIVE OR PRO RATA SHARES OF SEPARATELY OR NONSEPARATELY COMPUTED ITEMS FROM SUCH PASS-THROUGH ENTITIES. S. 2509--B 24 § 14. Paragraph 1 of subsection (e) of section 601 of the tax law, as amended by chapter 170 of the laws of 1994, is amended to read as follows: (1) General. [There] EXCEPT AS PROVIDED IN PARAGRAPH FIVE OF THIS SUBSECTION, THERE is hereby imposed for each taxable year on the taxable income which is derived from sources in this state of every nonresident and part-year resident individual and trust and every nonresident estate a tax which shall be equal to the tax base multiplied by the New York source fraction. § 15. This act shall take effect immediately and shall apply for taxable years beginning on or after January 1, 2021; provided, however that the amendments to subdivision 1 of section 171-a of the tax law made by section twelve of this act shall not affect the expiration of such subdivision and shall be deemed to expire therewith. PART D Section 1. Section 352 of the economic development law is amended by adding two new subdivisions 5-a and 13-a to read as follows: 5-A. "CHILD CARE SERVICES" MEANS THOSE SERVICES UNDERTAKEN OR SPON- SORED BY A PARTICIPANT IN THIS PROGRAM MEETING THE REQUIREMENTS OF "CHILD DAY CARE" AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION THREE HUNDRED NINETY OF THE SOCIAL SERVICES LAW OR ANY CHILD CARE SERVICES IN THE CITY OF NEW YORK WHEREBY A PERMIT TO OPERATE SUCH CHILD CARE SERVICES IS REQUIRED PURSUANT TO THE HEALTH CODE OF THE CITY OF NEW YORK. 13-A. "NET NEW CHILD CARE SERVICES EXPENDITURES" MEANS THE CALCULATION OF NEW, ANNUAL PARTICIPANT EXPENDITURES ON CHILD CARE SERVICES WHETHER INTERNAL OR PROVIDED BY A THIRD PARTY (INCLUDING COVERAGE FOR FULL OR PARTIAL DISCOUNT OF EMPLOYEE RATES), MINUS ANY REVENUES RECEIVED BY THE PARTICIPANT THROUGH A THIRD-PARTY OPERATOR (I.E. RENT PAID TO THE PARTICIPANT BY THE CHILD CARE PROVIDER) OR EMPLOYEES AND MAY BE FURTHER DEFINED BY THE COMMISSIONER IN REGULATIONS. FOR THE PURPOSES OF THIS DEFINITION, EXPENDITURES FOR CHILD CARE SERVICES THAT A PARTICIPANT HAS INCURRED PRIOR TO ADMISSION TO THIS PROGRAM SHALL NOT BE ELIGIBLE FOR THE CREDIT. § 2. Paragraphs (k) and (l) of subdivision 1 of section 353 of the economic development law, as amended by section 2 of part L of chapter 59 of the laws of 2020, are amended and a new paragraph (m) is added to read as follows: (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[.]; OR (M) AS A PARTICIPANT OPERATING IN ONE OF THE INDUSTRIES LISTED IN PARAGRAPHS (A) THROUGH (K) OF THIS SUBDIVISION AND OPERATING OR SPONSOR- ING CHILD CARE SERVICES TO ITS EMPLOYEES AS DEFINED IN SECTION THREE HUNDRED FIFTY-TWO OF THIS ARTICLE. § 3. Subdivisions 2 and 6 of section 355 of the economic development law, subdivision 2 as amended by section 4 of part L of chapter 59 of the laws of 2020 and subdivision 6 as amended by section 4 of part K of chapter 59 of the laws of 2015, are amended and a new subdivision 2-a is added to read as follows: 2. Excelsior investment tax credit component. A participant in the excelsior jobs program shall be eligible to claim a credit on qualified S. 2509--B 25 investments. 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. IN A PROJECT FOR CHILD CARE SERVICES, THE CREDIT SHALL BE EQUAL TO FIVE PERCENT OF THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED INVESTMENT IN CHILD CARE SERVICES. A participant may not claim both the excelsior investment tax credit component and the investment tax credit set forth in subdivision one of section two hundred ten-B, subsection (a) of section six hundred six, the former subsection (i) of section fourteen hundred fifty-six, or subdivision (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 property 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 enterprise has received a certificate of tax credit, provided that qualified investments made on or after the issuance of the certificate of eligibility but before the issuance of the certificate of tax credit to the business enterprise, may be claimed in the first taxa- ble year for which the business enterprise is allowed to claim the cred- it. Expenses incurred prior to the date the certificate of eligibility is issued are not eligible to be included in the calculation of the credit. 2-A. EXCELSIOR CHILD CARE SERVICES TAX CREDIT COMPONENT. A PARTICIPANT ENGAGING IN A NEW EXCELSIOR JOBS PROGRAM PROJECT SHALL BE ELIGIBLE TO CLAIM A CREDIT ON ITS NET NEW CHILD CARE SERVICES EXPENDITURES FOR ITS OPERATION, SPONSORSHIP OR DIRECT FINANCIAL SUPPORT OF A CHILD CARE SERVICES PROGRAM. THE CREDIT SHALL BE EQUAL TO SIX PERCENT OF THE NET NEW CHILD CARE SERVICES EXPENDITURES AS DEFINED IN THIS CHAPTER. 6. Claim of tax credit. The business enterprise shall be allowed to claim the credit as prescribed in section thirty-one of the tax law. No costs used by an entertainment company as the basis for the allowance of a tax credit described in this section shall be used by such enter- tainment company to claim any other credit allowed pursuant to the tax law. NO COSTS OR EXPENDITURES FOR CHILD CARE SERVICES USED BY A PARTIC- IPANT TO CLAIM THE CREDIT AS PRESCRIBED IN SECTION FORTY-FOUR OF THE TAX LAW SHALL BE USED FOR THE ALLOWANCE OF A TAX CREDIT DESCRIBED IN THIS SECTION. § 3-a. Section 358 of the economic development law is amended by adding two new subdivisions 3 and 4 to read as follows: 3. BEGINNING JUNE THIRTIETH, TWO THOUSAND TWENTY-ONE, AND EVERY THREE MONTHS THEREAFTER, THE QUARTERLY REPORT SHALL ALSO INCLUDE: THE NUMBER OF PROJECTS RECEIVING THE CHILD CARE SERVICES PROGRAM TAX CREDIT; THE NUMBER OF PROJECTS CLAIMING THE INVESTMENT CREDIT FOR CHILD CARE SERVICES EXPENDITURES; THE NUMBER OF EMPLOYEES PROVIDED CHILD CARE SERVICES DUE TO THE CREDITS; AND THE NUMBER OF CHILDREN BEING SERVED BY THESE CHILD CARE SERVICES. 4. THE COMMISSIONER SHALL SUBMIT TO THE GOVERNOR, THE TEMPORARY PRES- IDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY, AN ANNUAL REPORT TO BE SUBMITTED ON FEBRUARY FIRST OF EACH YEAR EVALUATING THE EFFEC- S. 2509--B 26 TIVENESS OF THE EXCELSIOR JOBS PROGRAM. THE REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING: AN ANNUAL COMPILATION OF THE INFORMA- TION INCLUDED IN THE QUARTERLY REPORTS ISSUED UNDER SUBDIVISIONS TWO AND THREE OF THIS SECTION; THE AMOUNT OF CREDITS ALLOCATED PER NET NEW JOB CREATED; THE TOTAL NUMBER OF APPLICANTS TO THE PROGRAM ANNUALLY; THE NUMBER OF APPLICANTS DENIED CREDITS; DATA ON THE NUMBER OF PARTICIPANTS AND NET NEW JOBS PER ECONOMIC DEVELOPMENT REGION; AND SUCH OTHER INFOR- MATION AS THE COMMISSIONER DETERMINES. THIS ANNUAL REPORT SHALL ALSO BE POSTED ON THE DEPARTMENT'S WEBSITE. § 4. Subdivision (a) of section 31 of the tax law is amended by adding a new paragraph 2-a to read as follows: (2-A) THE EXCELSIOR CHILD CARE SERVICES TAX CREDIT COMPONENT; § 5. Subdivision (a) of section 44 of the tax law, as added by section 1 of part L of chapter 59 of the laws of 2019, is amended to read as follows: (a) General. A taxpayer subject to tax under article nine-A, twenty- two, or thirty-three of this chapter shall be allowed a credit against such tax in an amount equal to TWO HUNDRED PERCENT OF the portion of the credit that is allowed to the taxpayer under section 45F of the internal revenue code that is attributable to (i) qualified child care expendi- tures paid or incurred with respect to a qualified child care facility with a situs in the state, and to (ii) qualified child care resource and referral expenditures paid or incurred with respect to the taxpayer's employees working in the state. The credit allowable under this subdivi- sion for any taxable year shall not exceed [one hundred fifty] FIVE HUNDRED thousand dollars. If the entity operating the qualified child care facility is a partnership or a New York S corporation, then such cap shall be applied at the entity level, so the aggregate credit allowed to all the partners or shareholders of such entity in a taxable year does not exceed [one hundred fifty] FIVE HUNDRED thousand dollars. § 6. This act shall take effect immediately; provided, however, section five of this act shall apply to taxable years beginning on or after January 1, 2022. PART E Section 1. Paragraph (b) of subdivision 2 of section 184 of the tax law, as amended by chapter 485 of the laws of 1988, is amended to read as follows: (b) (1) A corporation classed as a "taxicab" or "omnibus", (i) which is organized, incorporated or formed under the laws of any other state, country or sovereignty, and (ii) which neither owns nor leases property in this state in a corpo- rate or organized capacity, nor (iii) maintains an office in this state in a corporate or organized capacity, but (iv) which is doing business or employing capital in this state by conducting at least one but fewer than twelve trips into this state during the calendar year, shall [annually pay a tax equal to fifteen dollars for each trip conducted into this state] NOT BE TAXED UNDER THE PROVISIONS OF THIS ARTICLE. If the only property a corporation owns or leases in this state is a vehicle or vehicles used to conduct trips, it shall not be considered, for purposes of clause (ii) of this subpara- graph, to be owning or leasing property in this state. (2) [The commissioner of taxation and finance may prescribe such forms as he may deem necessary to report such tax in a simplified manner. S. 2509--B 27 (3)] For purposes of this subdivision, a corporation classed as a "taxicab" or "omnibus" shall be considered to be conducting a trip into New York state when one of its vehicles enters New York state and trans- ports passengers to, from, or to and from a location in New York state. A corporation shall not be considered to be conducting a trip into New York state if its vehicle only makes incidental stops at locations in the state while in transit from a location outside New York state to another location outside New York state. The number of trips a corpo- ration conducts into New York state shall be calculated by determining the number of trips each vehicle owned, leased or operated by the corpo- ration conducts into New York state and adding those numbers together. [(4) Provided, however, that the provisions of this paragraph shall not apply to any corporation which does not file its franchise tax report in a timely manner (determined with regard to any extension of time for filing).] § 2. This act shall take effect immediately, provided, however, that section one of this act shall apply to taxable years beginning on or after January 1, 2021. PART F Section 1. Paragraph 5 of subdivision (a) of section 24 of the tax law, as amended by section 5-a of part M of chapter 59 of the laws of 2020, is amended to read as follows: (5) For the period two thousand fifteen through two thousand [twenty- five] TWENTY-SIX, in addition to the amount of credit established in paragraph two of this subdivision, a taxpayer shall be allowed a credit equal to the product (or pro rata share of the product, in the case of a member of a partnership) of ten percent and the amount of wages or sala- ries paid to individuals directly employed (excluding those employed as writers, directors, music directors, producers and performers, including background actors with no scripted lines) by a qualified film production company or a qualified independent film production company for services performed by those individuals in one of the counties specified in this paragraph in connection with a qualified film with a minimum budget of five hundred thousand dollars. For purposes of this additional credit, the services must be performed in one or more of the following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this paragraph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty- five] TWENTY-SIX 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 S. 2509--B 28 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- five] TWENTY-SIX. § 2. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 5-b of part M of chapter 59 of the laws of 2020, 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-five] TWENTY-SIX 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-five] TWENTY-SIX 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-five] TWENTY-SIX. This amount shall be allocated by the governor's office for motion picture and television development among taxpayers in accordance with subdivision (a) of this section. If the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allocation in the empire state film tax credit pursuant to this section, subdivision twenty of section two hundred ten-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previ- ously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unal- located film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be made available for allocation for the empire state film post production credit pursuant to this section, subdivision thirty-two of section two hundred ten-B and subsection (qq) of section six hundred six of this 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 S. 2509--B 29 state film production credit tax form for each year a credit is claimed and include a copy of the certificate with their tax return. In the case of a qualified film that receives funds from additional pool 2, no empire state film production credit shall be claimed before the later of the taxable year the production of the qualified film is complete, or the taxable year immediately following the allocation year for which the film has been allocated credit by the governor's office for motion picture and television development. § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 2 of part SSS of chapter 59 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-SIX provided however, seven million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in two thousand thirteen and two thousand fourteen and twenty-five million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in each year starting in two thousand fifteen through two thousand [twenty-four] TWENTY-SIX. This amount shall be allocated by the governor's office for motion picture and television development among taxpayers in accordance with subdivision (a) of this section. If the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allocation in the empire state film tax credit pursuant to this section, subdivision twenty of section two hundred ten-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previ- ously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unal- located film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be made available for allocation for the empire state film post production credit pursuant to this section, subdivision thirty-two of section two hundred ten-B and subsection (qq) of section six hundred six of this 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 S. 2509--B 30 film has been allocated credit by the governor's office for motion picture and television development. § 4. Paragraph 6 of subdivision (a) of section 31 of the tax law, as amended by section 5-c of part M of chapter 59 of the laws of 2020, is amended to read as follows: (6) For the period two thousand fifteen through two thousand [twenty- five] TWENTY-SIX, 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, COLUMBIA, Cort- land, 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, SULLIVAN, Tioga, Tompkins, ULSTER, WARREN, WASHINGTON, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this para- graph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty-five] TWENTY-SIX of the annual allocation made available to the empire state film post production credit pursuant to paragraph four of subdivision (e) of section twenty-four of this article. Such aggregate amount of credits shall be allocated by the governor's office for motion picture and tele- vision 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 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 para- graph 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 period two thousand fifteen through two thousand [twenty-five] TWENTY-SIX. § 5. Paragraph 3 of subdivision (b) of section 24 of the tax law, as separately amended by sections 3 and 4 of part M of chapter 59 of the laws of 2020, is amended to read as follow: (3) "Qualified film" means a feature-length film, television film, relocated television production, television pilot or television series, regardless of the medium by means of which the film, pilot or series is created or conveyed. For the purposes of the credit provided by this S. 2509--B 31 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 prima- rily 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; (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 (mono- logues, 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 commissioner 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 applica- tion for each season of such series is continually submitted for such series after April first, two thousand twenty. § 6. This act shall take effect immediately; provided, however, that the amendments made by section five of this act shall apply to applica- tions that are filed with the governor's office for motion picture and television development on or after April 1, 2021; provided, further, however that the amendments to paragraph 4 of subdivision (e) of section 24 of the tax law made by section two of this act shall take effect on the same date and in the same manner as section 5 of chapter 683 of the laws of 2019, as amended, takes effect. PART G Intentionally Omitted PART H Intentionally Omitted PART I Intentionally Omitted PART J S. 2509--B 32 Section 1. Sections 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and breeding law are REPEALED. § 2. Paragraph 1 of subdivision (f) of section 1105 of the tax law, as amended by chapter 32 of the laws of 2016, is amended to read as follows: (1) Any admission charge where such admission charge is in excess of ten cents to or for the use of any place of amusement in the state, except charges for admission to [race tracks or] combative sports which charges are taxed under any other law of this state, or dramatic or musical arts performances, or live circus performances, or motion picture theaters, and except charges to a patron for admission to, or use of, facilities for sporting activities in which such patron is to be a participant, such as bowling alleys and swimming pools. For any person having the permanent use or possession of a box or seat or a lease or a license, other than a season ticket, for the use of a box or seat at a place of amusement, the tax shall be upon the amount for which a similar box or seat is sold for each performance or exhibition at which the box or seat is used or reserved by the holder, licensee or lessee, and shall be paid by the holder, licensee or lessee. § 3. Subdivision (a) of section 1109 of the tax law, as amended by section 1 of part BB of chapter 61 of the laws of 2005, is amended to read as follows: (a) General. In addition to the taxes imposed by sections eleven hundred five and eleven hundred ten of this article, there is hereby imposed within the territorial limits of the metropolitan commuter transportation district created and established pursuant to section twelve hundred sixty-two of the public authorities law, and there shall be paid, additional taxes, at the rate of three-eighths of one percent, which shall be identical to the taxes imposed by sections eleven hundred five and eleven hundred ten of this article. Such sections and the other sections of this article, including the definition and exemption provisions, shall apply for purposes of the taxes imposed by this section in the same manner and with the same force and effect as if the language of those sections had been incorporated in full into this section and had expressly referred to the taxes imposed by this section. NOTWITHSTANDING THE FOREGOING, THE TAX IMPOSED BY THIS SECTION SHALL NOT APPLY TO ADMISSIONS TO RACE TRACKS OR SIMULCAST FACILITIES. § 4. Subdivision (a) of section 1146 of the tax law, as amended by chapter 65 of the laws of 1985, is amended to read as follows: (a) Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for the [tax commission, any tax] COMMISSIONER, any officer or employee of the department of taxation and finance, any person engaged or retained by such department on an inde- pendent contract basis, or any person who in any manner may acquire knowledge of the contents of a return or report filed with the [tax commission] COMMISSIONER pursuant to this article, to divulge or make known in any manner any particulars set forth or disclosed in any such return or report. The officers charged with the custody of such returns and 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 [tax commission] COMMISSIONER in an action or proceeding under the provisions of the tax law or in any other action or proceeding involving the collection of a tax due under this chapter to which the state or the [tax commission] COMMISSIONER is a party or a S. 2509--B 33 claimant, or on behalf of any party to any action, proceeding or hearing under the provisions of this article when the returns, reports or facts shown thereby are directly involved in such action, proceeding or hear- ing, in any of which events the court, or in the case of a hearing, the [tax commission] COMMISSIONER may require the production of, and may admit into evidence, so much of said returns, reports or of the facts shown thereby, as are pertinent to the action, proceeding or hearing and no more. The [tax commission] COMMISSIONER may, nevertheless, publish a copy or a summary of any decision rendered after a hearing required by this article. Nothing herein shall be construed to prohibit the delivery to a person who has filed a return or report or his duly authorized representative of a certified copy of any return or report filed in connection with his tax. Nor shall anything herein be construed to prohibit the delivery to a person required to collect the tax under this article or a purchaser, transferee or assignee personally liable under the provisions of subdivision (c) of section eleven hundred forty-one of this chapter for the tax due from the seller, transferor or assignor, of any return or report filed under this article in connection with such tax provided, however, that there may be delivered only so much of said return, report or of the facts shown thereby as are pertinent to a determination of the taxes due or liability owed by such person or purchaser, transferee or assignee and no more or to prohibit the publi- cation of statistics so classified as to prevent the identification of particular returns or reports and the items thereof, or the inspection by the attorney general or other legal representatives of the state of the return or report of any person required to collect or pay the tax who shall bring action to review the tax based thereon, or against whom an action or proceeding under this chapter has been recommended by the commissioner of taxation and finance or the attorney general or has been instituted, or the inspection of the 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 person required to collect or pay the tax under this article. Provided, further, nothing herein shall be construed to prohibit the disclosure, in such manner as the [tax commis- sion] COMMISSIONER deems appropriate, of the names and other appropriate identifying information of those persons holding certificates of author- ity pursuant to section eleven hundred thirty-four of this article, those persons whose certificates of authority have been suspended or revoked, those persons whose certificates of authority have expired, those persons who have filed a certificate of registration for a certif- icate of authority where the [tax commission] COMMISSIONER has refused to issue a certificate of authority, those persons holding direct payment permits pursuant to section eleven hundred thirty-two or those persons whose direct payment permits have been suspended or revoked by the [tax commission] COMMISSIONER; AND PROVIDED FURTHER THAT NOTHING HEREIN SHALL BE CONSTRUED TO PROHIBIT THE DISCLOSURE, IN SUCH MANNER AS THE COMMISSIONER DEEMS APPROPRIATE, OF INFORMATION RELATED TO THE TAX ON ADMISSIONS TO RACE TRACKS AND SIMULCAST FACILITIES TO THE GAMING COMMIS- SION OR THE DIVISION OF THE BUDGET. § 5. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by section 2 of part WW, subparagraph (i) as separately amended by section 5 of part Z of chapter 60 of the laws of 2016, is amended to read as follows: (1) Either, all of the taxes described in article twenty-eight of this chapter, at the same uniform rate, as to which taxes all provisions of S. 2509--B 34 the local laws, ordinances or resolutions imposing such taxes shall be identical, except as to rate and except as otherwise provided, with the corresponding provisions in such article twenty-eight, including the definition and exemption provisions of such article, so far as the provisions of such article twenty-eight can be made applicable to the taxes imposed by such city or county and with such limitations and special provisions as are set forth in this article. The taxes author- ized under this subdivision may not be imposed by a city or county unless the local law, ordinance or resolution imposes such taxes so as to include all portions and all types of receipts, charges or rents, subject to state tax under sections eleven hundred five and eleven hundred ten of this chapter, except as otherwise provided. NOTWITH- STANDING THE FOREGOING, A TAX IMPOSED BY A CITY OR COUNTY AUTHORIZED UNDER THIS SUBDIVISION SHALL NOT INCLUDE THE TAX IMPOSED ON CHARGES FOR ADMISSION TO RACE TRACKS AND SIMULCAST FACILITIES UNDER SUBDIVISION (F) OF SECTION ELEVEN HUNDRED FIVE OF THIS CHAPTER. (i) Any local law, ordi- nance or resolution enacted by any city of less than one million or by any county or school district, imposing the taxes authorized by this subdivision, shall, notwithstanding any provision of law to the contra- ry, exclude from the operation of such local taxes all sales of tangible personal property for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrig- eration or steam, for sale, by manufacturing, processing, generating, assembly, refining, mining or extracting; and all sales of tangible personal property for use or consumption predominantly either in the production of tangible personal property, for sale, by farming or in a commercial horse boarding operation, or in both; and all sales of fuel sold for use in commercial aircraft and general aviation aircraft; and, unless such city, county or school district elects otherwise, shall omit the provision for credit or refund contained in clause six of subdivi- sion (a) or subdivision (d) of section eleven hundred nineteen of this chapter. (ii) Any local law, ordinance or resolution enacted by any city, county or school district, imposing the taxes authorized by this subdivision, shall omit the residential solar energy systems equipment and electricity exemption provided for in subdivision (ee), the commer- cial solar energy systems equipment and electricity exemption provided for in subdivision (ii), the commercial fuel cell electricity generating systems equipment and electricity generated by such equipment exemption provided for in subdivision (kk) and the clothing and footwear exemption provided for in paragraph thirty of subdivision (a) of section eleven hundred fifteen of this chapter, unless such city, county or school district elects otherwise as to such residential solar energy systems equipment and electricity exemption, such commercial solar energy systems equipment and electricity exemption, commercial fuel cell elec- tricity generating systems equipment and electricity generated by such equipment exemption or such clothing and footwear exemption. § 6. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as amended by section 3 of part WW of chapter 60 of the laws of 2016, is amended to read as follows: (1) Or, one or more of the taxes described in subdivisions (b), (d), (e) and (f) of section eleven hundred five of this chapter, at the same uniform rate, including the transitional provisions in section eleven hundred six of this chapter covering such taxes, but not the taxes described in subdivisions (a) and (c) of section eleven hundred five of this chapter. Provided, further, that where the tax described in subdi- vision (b) of section eleven hundred five of this chapter is imposed, S. 2509--B 35 the compensating use taxes described in clauses (E), (G) and (H) of subdivision (a) of section eleven hundred ten of this chapter shall also be imposed. Provided, further, that where the taxes described in subdi- vision (b) of section eleven hundred five OF THIS CHAPTER are imposed, such taxes shall omit: (A) the provision for refund or credit contained in subdivision (d) of section eleven hundred nineteen of this chapter with respect to such taxes described in such subdivision (b) of section eleven hundred five unless such city or county elects to provide such provision or, if so elected, to repeal such provision; (B) the exemption provided in paragraph two of subdivision (ee) of section eleven hundred fifteen of this chapter unless such county or city elects otherwise; (C) the exemption provided in paragraph two of subdivision (ii) of section eleven hundred fifteen of this chapter, unless such county or city elects otherwise; and (D) the exemption provided in paragraph two of subdivision (kk) of section eleven hundred fifteen of this chapter, unless such county or city elects otherwise; AND PROVIDED FURTHER THAT WHERE THE TAX DESCRIBED IN SUBDIVISION (F) OF SUCH SECTION ELEVEN HUNDRED FIVE IS IMPOSED, SUCH TAX SHALL NOT APPLY TO CHARGES FOR ADMIS- SION TO RACE TRACKS AND SIMULCAST FACILITIES. § 7. Notwithstanding any provisions of law to the contrary and notwithstanding the repeal of sections 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and breeding law by section one of this act, all provisions of such sections 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009, in respect to the imposition, exemption, assessment, payment, payment over, determination, collection, and credit or refund of tax, interest and penalty imposed thereunder, the filing of forms and returns, the preser- vation of records for the purposes of such tax, the disposition of revenues, and any civil and criminal penalties applicable to the violation of the provisions of such sections 227, 306 and 406, subpara- graph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009, shall continue in full force and effect with respect to all such tax accrued for periods prior to the effective date of this act in the same manner as they might if such provisions were not repealed. § 8. This act shall take effect November 1, 2021 and shall apply to charges for admissions to race tracks and simulcast facilities on and after such date. PART K Intentionally Omitted PART L Section 1. Subparagraph (i) of the opening paragraph of section 1210 of the tax law is REPEALED and a new subparagraph (i) is added to read as follows: (I) WITH RESPECT TO A CITY OF ONE MILLION OR MORE AND THE FOLLOWING COUNTIES: (1) ANY SUCH CITY HAVING A POPULATION OF ONE MILLION OR MORE IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDI- NANCES OR RESOLUTIONS IMPOSING SUCH TAXES IN ANY SUCH CITY, AT THE RATE OF FOUR AND ONE-HALF PERCENT; S. 2509--B 36 (2) THE FOLLOWING COUNTIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION (A) OF THIS SECTION AT THE RATE OF THREE PERCENT AS AUTHORIZED ABOVE IN THIS PARAGRAPH ARE HEREBY FURTHER AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES, OR RESOLUTIONS IMPOSING SUCH TAXES AT ADDITIONAL RATES, IN QUARTER PERCENT INCREMENTS, NOT TO EXCEED THE FOLLOWING RATES, WHICH RATES ARE ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED ABOVE IN THIS PARAGRAPH: (A) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CAYUGA, CHAUTAUQUA, CHEMUNG, CHENANGO, CLINTON, COLUMBIA, CORTLAND, DELAWARE, DUTCHESS, ESSEX, FRANKLIN, FULTON, GENESEE, GREENE, HAMILTON, JEFFERSON, LEWIS, LIVINGSTON, MADISON, MONROE, MONTGOMERY, NIAGARA, ONONDAGA, ONTARIO, ORANGE, ORLEANS, OSWEGO, OTSEGO, PUTNAM, RENSSELAER, ROCKLAND, ST. LAWRENCE, SARATOGA, SCHENECTADY, SCHOHARIE, SCHUYLER, SENECA, STEUBEN, SULLIVAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON, WAYNE, WESTCHES- TER, WYOMING, YATES; (B) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU, SUFFOLK; (C) ONE AND ONE-HALF PERCENT - ALLEGANY; (D) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA. PROVIDED, HOWEVER, THAT (I) THE COUNTY OF ROCKLAND MAY IMPOSE ADDI- TIONAL RATES OF FIVE-EIGHTHS PERCENT AND THREE-EIGHTHS PERCENT, IN LIEU OF IMPOSING SUCH ADDITIONAL RATE IN QUARTER PERCENT INCREMENTS; (II) THE COUNTY OF ONTARIO MAY IMPOSE ADDITIONAL RATES OF ONE-EIGHTH PERCENT AND THREE-EIGHTHS PERCENT, IN LIEU OF IMPOSING SUCH ADDITIONAL RATE IN QUAR- TER PERCENT INCREMENTS; (III) THREE-QUARTERS PERCENT OF THE ADDITIONAL RATE AUTHORIZED TO BE IMPOSED BY THE COUNTY OF NASSAU SHALL BE SUBJECT TO THE LIMITATION SET FORTH IN SECTION TWELVE HUNDRED SIXTY-TWO-E OF THIS ARTICLE. § 2. Subparagraph (ii) of the opening paragraph of section 1210 of the tax law is REPEALED and a new subparagraph (ii) is added to read as follows: (II) THE FOLLOWING CITIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION (A) OF THIS SECTION AT THE RATE OF ONE AND ONE-HALF PERCENT OR HIGHER AS AUTHORIZED ABOVE IN THIS PARAGRAPH FOR SUCH CITIES ARE HEREBY FURTHER AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES, OR RESOLUTIONS IMPOSING SUCH TAXES AT ADDITIONAL RATES, IN QUARTER PERCENT INCREMENTS, NOT TO EXCEED THE FOLLOWING RATES, WHICH RATES ARE ADDI- TIONAL TO THE ONE AND ONE-HALF PERCENT OR HIGHER RATES AUTHORIZED ABOVE IN THIS PARAGRAPH: (1) ONE PERCENT - MOUNT VERNON; NEW ROCHELLE; OSWEGO; WHITE PLAINS; (2) ONE AND ONE QUARTER PERCENT - NONE; (3) ONE AND ONE-HALF PERCENT - YONKERS. § 3. Subparagraphs (iii) and (iv) of the opening paragraph of section 1210 of the tax law are REPEALED and a new subparagraph (iii) is added to read as follows: (III) THE MAXIMUM RATE REFERRED TO IN SECTION TWELVE HUNDRED TWENTY- FOUR OF THIS ARTICLE SHALL BE CALCULATED WITHOUT REFERENCE TO THE ADDI- TIONAL RATES AUTHORIZED FOR COUNTIES, OTHER THAN THE COUNTIES OF CAYUGA, CORTLAND, FULTON, MADISON, AND OTSEGO, IN CLAUSE TWO OF SUBPARAGRAPH (I) AND THE CITIES IN SUBPARAGRAPH (II) OF THIS PARAGRAPH. § 4. Section 1210 of the tax law is amended by adding a new subdivi- sion (p) to read as follows: (P) NOTWITHSTANDING ANY PROVISION OF THIS SECTION OR OTHER LAW TO THE CONTRARY, A COUNTY AUTHORIZED TO IMPOSE AN ADDITIONAL RATE OR RATES OF SALES AND COMPENSATING USE TAXES BY CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF THIS SECTION, OR A CITY, OTHER THAN THE CITY OF MOUNT VERNON, AUTHORIZED TO IMPOSE AN ADDITIONAL RATE OF SUCH TAXES BY S. 2509--B 37 SUBPARAGRAPH (II) OF SUCH OPENING PARAGRAPH, MAY ADOPT A LOCAL LAW, ORDINANCE OR RESOLUTION BY A MAJORITY VOTE OF ITS GOVERNING BODY IMPOS- ING SUCH RATE OR RATES FOR A PERIOD NOT TO EXCEED TWO YEARS, AND ANY SUCH PERIOD MUST END ON NOVEMBER THIRTIETH OF AN ODD-NUMBERED YEAR. NOTWITHSTANDING THE PRECEDING SENTENCE, THE CITY OF WHITE PLAINS IS AUTHORIZED TO EXCEED SUCH TWO-YEAR LIMITATION TO IMPOSE THE TAX AUTHOR- IZED BY SUBPARAGRAPH (II) OF SUCH OPENING PARAGRAPH FOR THE PERIOD COMMENCING ON SEPTEMBER FIRST, TWO THOUSAND TWENTY-ONE AND ENDING ON NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-THREE. ANY SUCH LOCAL LAW, ORDI- NANCE, OR RESOLUTION SHALL ALSO BE SUBJECT TO THE PROVISIONS OF SUBDIVI- SIONS (D) AND (E) OF THIS SECTION. § 5. Section 1210-E of the tax law is REPEALED. § 6. Subdivisions (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (z-1), (aa), (bb), (cc), (dd), (ee), (ff), (gg), (hh), (ii) and (jj) of section 1224 of the tax law are REPEALED. § 7. Section 1224 of the tax law is amended by adding three new subdi- visions (d), (e), and (f) to read as follows: (D) FOR PURPOSES OF THIS SECTION, THE TERM "PRIOR RIGHT" SHALL MEAN THE PREFERENTIAL RIGHT TO IMPOSE ANY TAX DESCRIBED IN SECTIONS TWELVE HUNDRED TWO AND TWELVE HUNDRED THREE, OR TWELVE HUNDRED TEN AND TWELVE HUNDRED ELEVEN, OF THIS ARTICLE AND THEREBY TO PREEMPT SUCH TAX AND TO PRECLUDE ANOTHER MUNICIPAL CORPORATION FROM IMPOSING OR CONTINUING THE IMPOSITION OF SUCH TAX TO THE EXTENT THAT SUCH RIGHT IS EXERCISED. HOWEVER, THE RIGHT OF PREEMPTION SHALL ONLY APPLY WITHIN THE TERRITORIAL LIMITS OF THE TAXING JURISDICTION HAVING THE RIGHT OF PREEMPTION. (E) EACH OF THE FOLLOWING COUNTIES AND CITIES SHALL HAVE THE SOLE RIGHT TO IMPOSE THE FOLLOWING ADDITIONAL RATE OF SALES AND COMPENSATING USE TAXES IN EXCESS OF THREE PERCENT THAT SUCH COUNTY OR CITY IS AUTHOR- IZED TO IMPOSE PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OR SUBPARA- GRAPH (II) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE. SUCH ADDITIONAL RATES OF TAX SHALL NOT BE SUBJECT TO PREEMPTION. (1) COUNTIES: (A) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CHAUTAUQUA, CHEMUNG, CHENANGO, CLINTON, COLUMBIA, DELAWARE, DUTCHESS, ESSEX, FRANKLIN, GENE- SEE, GREENE, HAMILTON, JEFFERSON, LEWIS, LIVINGSTON, MONROE, MONTGOMERY, NIAGARA, ONONDAGA, ONTARIO, ORANGE, ORLEANS, OSWEGO, PUTNAM, RENSSELAER, ROCKLAND, ST. LAWRENCE, SARATOGA, SCHENECTADY, SCHOHARIE, SCHUYLER, SENECA, STEUBEN, SULLIVAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON, WAYNE, WESTCHESTER, WYOMING, YATES; (B) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU, SUFFOLK; (C) ONE AND ONE-HALF PERCENT - ALLEGANY; (D) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA; PROVIDED, HOWEVER THAT THE COUNTY OF WESTCHESTER SHALL HAVE THE SOLE RIGHT TO IMPOSE THE ADDITIONAL ONE PERCENT RATE OF TAX AUTHORIZED BY CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE IN THE AREA OF SUCH COUNTY OUTSIDE THE CITIES OF MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS AND YONKERS. (2) CITIES: (A) ONE-QUARTER OF ONE PERCENT - ROME; (B) ONE-HALF OF ONE PERCENT - NONE; (C) THREE-QUARTERS OF ONE PERCENT - NONE; (D) ONE PERCENT - MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS; (E) ONE AND ONE QUARTER PERCENT - NONE; (F) ONE AND ONE-HALF PERCENT - YONKERS. S. 2509--B 38 (F) EACH OF THE FOLLOWING CITIES IS AUTHORIZED TO PREEMPT THE TAXES IMPOSED BY THE COUNTY IN WHICH IT IS LOCATED PURSUANT TO THE AUTHORITY OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, TO THE EXTENT OF ONE-HALF THE MAXIMUM AGGREGATE RATE AUTHORIZED UNDER SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, INCLUDING THE ADDITIONAL RATE THAT THE COUNTY IN WHICH SUCH CITY IS LOCATED IS AUTHORIZED TO IMPOSE: AUBURN, IN CAYUGA COUNTY; CORTLAND, IN CORTLAND COUNTY; GLOVERSVILLE AND JOHNSTOWN, IN FULTON COUNTY; ONEIDA, IN MADISON COUNTY; ONEONTA, IN OTSEGO COUNTY. AS OF THE DATE THIS SUBDIVISION TAKES EFFECT, ANY SUCH PREEMPTION BY SUCH A CITY IN EFFECT ON SUCH DATE SHALL CONTINUE IN FULL FORCE AND EFFECT UNTIL THE EFFECTIVE DATE OF A LOCAL LAW, ORDINANCE, OR RESOLUTION ADOPTED OR AMENDED BY THE CITY TO CHANGE SUCH PREEMPTION. ANY PREEMPTION BY SUCH A CITY PURSUANT TO THIS SUBDIVISION THAT TAKES EFFECT AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION SHALL BE SUBJECT TO THE NOTICE REQUIREMENTS IN SECTION TWELVE HUNDRED TWENTY-THREE OF THIS SUBPART AND TO THE OTHER REQUIREMENTS OF THIS ARTICLE. § 8. Section 1262-g of the tax law, as amended by section 2 of item DD of subpart C of part XXX of chapter 58 of the laws of 2020, is amended to read as follows: § 1262-g. Oneida county allocation and distribution of net collections from the additional [one percent rate] RATES of sales and compensating use taxes. Notwithstanding any contrary provision of law, (A) if the county of Oneida imposes sales and compensating use taxes at a rate which is one percent additional to the three percent rate authorized by section twelve hundred ten of this article, as authorized by such section, [(a)] (I) where a city in such county imposes tax pursuant to the authority of subdivision (a) of such section twelve hundred ten, such county shall allocate, distribute and pay in cash quarterly to such city one-half of the net collections attributable to such additional one percent rate of the county's taxes collected in such city's boundaries; [(b)] (II) where a city in such county does not impose tax pursuant to the authority of such subdivision (a) of such section twelve hundred ten, such county shall allocate, distribute and pay in cash quarterly to such city not so imposing tax a portion of the net collections attribut- able to one-half of the county's additional one percent rate of tax calculated on the basis of the ratio which such city's population bears to the county's total population, such populations as determined in accordance with the latest decennial federal census or special popu- lation census taken pursuant to section twenty of the general municipal law completed and published prior to the end of the quarter for which the allocation is made, which special census must include the entire area of the county; [and (c)] provided, however, that such county shall dedicate the first one million five hundred thousand dollars of net collections attributable to such additional one percent rate of tax received by such county after the county receives in the aggregate eigh- teen million five hundred thousand dollars of net collections from such additional one percent rate of tax [imposed for any of the periods: September first, two thousand twelve through August thirty-first, two thousand thirteen; September first, two thousand thirteen through August thirty-first, two thousand fourteen; and September first, two thousand fourteen through August thirty-first, two thousand fifteen; September first, two thousand fifteen through August thirty-first, two thousand sixteen; and September first, two thousand sixteen through August thir- ty-first, two thousand seventeen; September first, two thousand seven- teen through August thirty-first, two thousand eighteen; September first, two thousand eighteen through August thirty-first, two thousand S. 2509--B 39 twenty; and September first, two thousand twenty through August thirty- first, two thousand twenty-three,] to an allocation on a per capita basis, utilizing figures from the latest decennial federal census or special population census taken pursuant to section twenty of the gener- al municipal law, completed and published prior to the end of the year for which such allocation is made, which special census must include the entire area of such county, to be allocated and distributed among the towns of Oneida county by appropriation of its board of legislators; provided, further, that nothing herein shall require such board of legislators to make any such appropriation until it has been notified by any town by appropriate resolution and, in any case where there is a village wholly or partly located within a town, a resolution of every such village, embodying the agreement of such town and village or villages upon the amount of such appropriation to be distributed to such village or villages out of the allocation to the town or towns in which it is located. (B) IF THE COUNTY OF ONEIDA IMPOSES SALES AND COMPENSATING USE TAXES AT A RATE WHICH IS ONE AND THREE-QUARTERS PERCENT ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED BY SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, AS AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS ATTRIBUTABLE TO THE ADDITIONAL THREE-QUARTERS PERCENT OF SUCH ADDITIONAL RATE SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION AGREEMENT ENTERED INTO BY THE COUNTY AND THE CITIES IN THE COUNTY PURSU- ANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART. § 9. The opening paragraph of section 1262-r of the tax law, as added by chapter 37 of the laws of 2006, is amended to read as follows: (1) NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IF THE COUNTY OF ONTARIO IMPOSES THE ADDITIONAL ONE-EIGHTH OF ONE PERCENT AND THE ADDI- TIONAL THREE-EIGHTHS OF ONE PERCENT RATES OF TAX AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS FROM THE SUCH ADDI- TIONAL THREE-EIGHTHS OF ONE PERCENT RATE OF SUCH TAXES SHALL BE SET ASIDE FOR COUNTY PURPOSES AND SHALL NOT BE SUBJECT TO ANY AGREEMENT ENTERED INTO BY THE COUNTY AND THE CITIES IN THE COUNTY PURSUANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART OR THIS SECTION. (2) Notwithstanding the provisions of subdivision (c) of section twelve hundred sixty-two of this part to the contrary, if the cities of Canandaigua and Geneva in the county of Ontario do not impose sales and compensating use taxes pursuant to the authority of section twelve hundred ten of this article and such cities and county enter into an agreement pursuant to the authority of subdivision (c) of section twelve hundred sixty-two of this part to be effective March first, two thousand six, such agreement may provide that: § 10. The tax law is amended by adding a new section 1262-v to read as follows: § 1262-V. DISPOSITION OF NET COLLECTIONS FROM THE ADDITIONAL RATE OF SALES AND COMPENSATING USE TAX IN CLINTON COUNTY. NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IF THE COUNTY OF CLINTON IMPOSES THE ADDI- TIONAL ONE PERCENT RATE OF SALES AND COMPENSATING USE TAXES AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS FROM SUCH ADDITIONAL RATE SHALL BE PAID TO THE COUNTY AND THE COUNTY SHALL SET ASIDE SUCH NET COLLECTIONS AND USE THEM SOLELY FOR COUNTY PURPOSES. SUCH S. 2509--B 40 NET COLLECTIONS SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION AGREE- MENT ENTERED INTO BY THE COUNTY AND THE CITY IN THE COUNTY PURSUANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS PART. § 11. Section 1262-s of the tax law, as amended by section 3 of item U of subpart C of part XXX of chapter 58 of the laws of 2020, is amended to read as follows: § 1262-s. Disposition of net collections from the additional one-quar- ter of one percent rate of sales and compensating use taxes in the coun- ty of Herkimer. Notwithstanding any contrary provision of law, if the county of Herkimer imposes [the additional] SALES AND COMPENSATING USE TAX AT A RATE THAT IS ONE AND one-quarter [of one] percent [rate of sales and compensating use taxes] ADDITIONAL TO THE THREE PERCENT RATE AUTHORIZED BY SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, AS authorized by [section twelve hundred ten-E] CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN of this article [for all or any portion of the period beginning December first, two thousand seven and ending November thirtieth, two thousand twenty-three], the county shall use all net collections [from such] ATTRIBUTABLE TO THE additional one-quarter [of one] percent OF SUCH ADDITIONAL rate to pay the county's expenses for the construction of additional correctional facilities. The net collections from [the] SUCH ADDITIONAL ONE-QUARTER PERCENT OF SUCH additional rate [imposed pursuant to section twelve hundred ten-E of this article] shall be deposited in a special fund to be created by such county separate and apart from any other funds and accounts of the county. Any and all remaining net collections from such additional tax, after the expenses of such construction are paid, shall be deposited by the county of Herkimer in the general fund of such coun- ty for any county purpose. § 12. The tax law is amended by adding a new section 1265 to read as follows: § 1265. REFERENCES TO CERTAIN PROVISIONS AUTHORIZING ADDITIONAL RATES OR TO EXPIRATIONS OF A PERIOD. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY: (A) ANY REFERENCE IN ANY SECTION OF THIS CHAPTER OR OTHER LAW, OR IN ANY LOCAL LAW, ORDINANCE, OR RESOLUTION ADOPTED PURSUANT TO THE AUTHORITY OF THIS ARTICLE, TO NET COLLECTIONS OR REVENUES FROM A TAX IMPOSED BY A COUNTY OR CITY PURSUANT TO THE AUTHORITY OF A CLAUSE, OR TO A SUBCLAUSE OF A CLAUSE, OF SUBPARAGRAPH (I) OR (II) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE REPEALED BY SECTION ONE OR TWO OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-ONE THAT ADDED THIS SECTION OR PURSUANT TO SECTION TWELVE HUNDRED TEN-E OF THIS ARTICLE REPEALED BY SECTION FIVE OF SUCH CHAPTER SHALL BE DEEMED TO BE A REFERENCE TO NET COLLECTIONS OR REVENUES FROM A TAX IMPOSED BY THAT COUNTY OR CITY PURSUANT TO THE AUTHORITY OF THE EQUIVALENT PROVISION OF CLAUSE TWO OF SUBPARAGRAPH (I) OR TO SUBPARAGRAPH (II) OF THE OPENING PARAGRAPH OF SUCH SECTION TWELVE HUNDRED TEN AS ADDED BY SUCH SECTION ONE OR TWO OF SUCH CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-ONE; (B) ANY REFERENCE IN THIS CHAPTER OR IN ANY OTHER LAW RELATING TO THE EXPI- RATION OF A PROVISION CONCERNING THE DISTRIBUTION OF REVENUE FROM THE TAXES AUTHORIZED TO BE IMPOSED BY THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE SHALL BE DISREGARDED, AND SUCH PROVISION SHALL CONTINUE IN EFFECT UNLESS LATER AMENDED OR REPEALED. § 13. This act shall take effect immediately. PART M S. 2509--B 41 Section 1. Subdivision (jj) of section 1115 of the tax law, as amended by section 1 of part V of chapter 59 of the laws of 2019, is amended to read as follows: (jj) Tangible personal property or services otherwise taxable under this article sold to a related person shall not be subject to the taxes imposed by section eleven hundred five of this article or the compensat- ing use tax imposed under section eleven hundred ten of this article where the purchaser can show that the following conditions have been met to the extent they are applicable: (1)(i) the vendor and the purchaser are referenced as either a "covered company" as described in section 243.2(f) or a "material entity" as described in section 243.2(l) of the Code of Federal Regulations in a resolution plan that has been submitted to an agency of the United States for the purpose of satisfying subpara- graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- Frank Wall Street Reform and Consumer Protection Act (the "Act") or any successor law, or (ii) the vendor and the purchaser are separate legal entities pursuant to a divestiture directed pursuant to subparagraph 5 of paragraph (d) of section one hundred sixty-five of such act or any successor law; (2) the sale would not have occurred between such related entities were it not for such resolution plan or divestiture; and (3) in acquiring such property or services, the vendor did not claim an exemption from the tax imposed by this state or another state based on the vendor's intent to resell such services or property. A person is related to another person for purposes of this subdivision if the person bears a relationship to such person described in section two hundred sixty-seven of the internal revenue code. The exemption provided by this subdivision shall not apply to sales made, services rendered, or uses occurring after June thirtieth, two thousand [twenty-one] TWENTY-FOUR, except with respect to sales made, services rendered, or uses occurring pursuant to binding contracts entered into on or before such date; but in no case shall such exemption apply after June thirtieth, two thousand [twenty-four] TWENTY-SEVEN. § 2. This act shall take effect immediately. PART N Section 1. Subparagraph (vi) of paragraph 1 of subdivision (a) of section 1134 of the tax law, as amended by section 160 of part A of chapter 389 of the laws of 1997, is amended to read as follows: (vi) every person described in subparagraph (i), (ii), (iii), (iv) or (v) of this paragraph or every person who is a vendor solely by reason of clause (D), (E) or (F) of subparagraph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article who or which has had its certificate of authority revoked under paragraph four of this subdivision, shall file with the commissioner a certificate of registration, in a form prescribed by the commissioner, at least twenty days prior to commencing business or opening a new place of business or such purchasing, selling or taking of possession or payment, whichever comes first. Every person who is a vendor solely by reason of clause (D) of subparagraph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article shall file with the commissioner a certificate of registration, in a form prescribed by such commissioner, within thirty days after the day on which the cumulative total number of occasions that such person came into the state to deliver property or services, for the immediately preceding four quarterly periods ending on the last day of February, May, August and November, exceeds twelve. S. 2509--B 42 Every person who is a vendor solely by reason of clause (E) of subpara- graph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article shall file with the commissioner a certif- icate of registration, in a form prescribed by such commissioner, within thirty days after the day on which the cumulative total, for the imme- diately preceding four quarterly periods ending on the last day of February, May, August and November, of such person's gross receipts from sales of property delivered in this state exceeds [three] FIVE hundred thousand dollars and number of such sales exceeds one hundred. Every person who is a vendor solely by reason of clause (F) of subparagraph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article shall file with the commissioner a certificate of regis- tration, in a form prescribed by such commissioner, within thirty days after the day on which tangible personal property in which such person retains an ownership interest is brought into this state by the person to whom such property is sold, where the person to whom such property is sold becomes or is a resident or uses such property in any manner in carrying on in this state any employment, trade, business or profession. Information with respect to the notice requirements of a purchaser, transferee or assignee and such person's liability pursuant to the provisions of subdivision (c) of section eleven hundred forty-one of this chapter shall be included in or accompany the certificate of regis- tration form furnished the applicant. The commissioner shall also include with such information furnished to each applicant general infor- mation about the tax imposed under this article including information on records to be kept, returns and payments, notification requirements and forms. Such certificate of registration may be amended in accordance with rules promulgated by the commissioner. § 2. This act shall take effect immediately. PART O Section 1. Subdivision (a) of section 1401 of the tax law, as amended by chapter 576 of the laws of 1994, is amended to read as follows: (a) (1) "Person" means an individual, partnership, limited liability company, society, association, joint stock company, corporation, estate, receiver, trustee, assignee, referee or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, any combination of individuals, and any other form of unin- corporated enterprise owned or conducted by two or more persons. (2) "PERSON" SHALL INCLUDE ANY INDIVIDUAL, CORPORATION, PARTNERSHIP OR LIMITED LIABILITY COMPANY OR AN OFFICER OR EMPLOYEE OF ANY CORPORATION (INCLUDING A DISSOLVED CORPORATION), OR A MEMBER OR EMPLOYEE OF ANY PARTNERSHIP, OR A MEMBER, MANAGER OR EMPLOYEE OF A LIMITED LIABILITY COMPANY, WHO AS SUCH OFFICER, EMPLOYEE, MANAGER OR MEMBER IS UNDER A DUTY TO ACT FOR SUCH CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY OR INDIVIDUAL PROPRIETORSHIP IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE, OR HAS SO ACTED. § 2. Subdivision (a) of section 1404 of the tax law, as amended by chapter 61 of the laws of 1989, is amended to read as follows: (a) The real estate transfer tax IMPOSED PURSUANT TO SECTION FOURTEEN HUNDRED TWO OF THIS ARTICLE shall be paid by the grantor AND SUCH TAX SHALL NOT BE PAYABLE, DIRECTLY OR INDIRECTLY, BY THE GRANTEE EXCEPT AS PROVIDED IN A CONTRACT BETWEEN GRANTOR AND GRANTEE OR AS OTHERWISE PROVIDED IN THIS SECTION. If the grantor has failed to pay the tax imposed by this article at the time required by section fourteen hundred S. 2509--B 43 ten of this article or if the grantor is exempt from such tax, the gran- tee shall have the duty to pay the tax. Where the grantee has the duty to pay the tax because the grantor has failed to pay, such tax shall be the joint and several liability of the grantor and the grantee; PROVIDED THAT IN THE EVENT OF SUCH FAILURE, THE GRANTEE SHALL HAVE A CAUSE OF ACTION AGAINST THE GRANTOR FOR RECOVERY OF PAYMENT OF SUCH TAX, INTEREST AND PENALTIES BY THE GRANTEE. IN THE CASE OF A CONVEYANCE OF RESIDEN- TIAL REAL PROPERTY AS DEFINED IN SUBDIVISION (A) OF SECTION FOURTEEN HUNDRED TWO-A OF THIS ARTICLE, IF THE TAX IMPOSED BY THIS ARTICLE IS PAID BY THE GRANTEE PURSUANT TO A CONTRACT BETWEEN THE GRANTOR AND THE GRANTEE, THE AMOUNT OF SUCH TAX SHALL BE EXCLUDED FROM THE CALCULATION OF CONSIDERATION SUBJECT TO TAX UNDER THIS ARTICLE. § 3. Subdivision (a) of section 1409 of the tax law, as amended § 3. Subdivision (a) of section 1409 of the tax law, as amended by chapter 297 of the laws of 2019, is amended to read as follows: (a) (1) A joint return shall be filed by both the grantor and the grantee for each conveyance whether or not a tax is due thereon other than a conveyance of an easement or license to a public utility as defined in subdivision two of section one hundred eighty-six-a of this chapter or to a public utility which is a provider of telecommunication services as defined in subdivision one of section one hundred eighty- six-e of this chapter, where the consideration is two dollars or less and is clearly stated as actual consideration in the instrument of conveyance. (2) When the grantor or grantee of a deed for A BUILDING USED AS resi- dential real property containing [one- to four-] UP TO FOUR family dwelling units is a limited liability company, the joint return shall not be accepted for filing unless it is accompanied by a document which identifies the names and business addresses of all members, managers, and any other authorized persons, if any, of such limited liability company and the names and business addresses or, if none, the business addresses of all shareholders, directors, officers, members, managers and partners of any limited liability company or other business entity that are to be the members, managers or authorized persons, if any, of such limited liability company. The identification of such names and addresses shall not be deemed an unwarranted invasion of personal priva- cy pursuant to article six of the public officers law. If any such member, manager or authorized person of the limited liability company is itself a limited liability company or other business entity OTHER THAN A PUBLICLY TRADED ENTITY, A REIT, A UPREIT, OR A MUTUAL FUND, the names and addresses of the shareholders, directors, officers, members, manag- ers and partners of the limited liability company or other business entity shall also be disclosed until full disclosure of ultimate owner- ship by natural persons is achieved. For purposes of this subdivision, the terms "members", "managers", "authorized person", "limited liability company" and "other business entity" shall have the same meaning as those terms are defined in section one hundred two of the limited liability company law. (3) The return shall be filed with the recording officer before the instrument effecting the conveyance may be recorded. However, if the tax is paid to the commissioner pursuant to section fourteen hundred ten of this article, the return shall be filed with such commissioner at the time the tax is paid. In that instance, a receipt evidencing the filing of the return and the payment of tax shall be filed with the recording officer before the instrument effecting the conveyance may be recorded. S. 2509--B 44 The recording officer shall handle such receipt in the same manner as a return filed with the recording officer. § 4. Subdivision (h) of section 1418 of the tax law, as added by section 7 of part X of chapter 56 of the laws of 2010 and as further amended by subdivision (c) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (h) Notwithstanding the provisions of subdivision (a) of this section, the commissioner may furnish information relating to real property transfers obtained or derived from returns filed pursuant to this arti- cle in relation to the real estate transfer tax, to the extent that such information is also required to be reported to the commissioner by section three hundred thirty-three of the real property law and section five hundred seventy-four of the real property tax law and the rules adopted thereunder, provided such information was collected through a combined process established pursuant to an agreement entered into with the commissioner pursuant to paragraph viii of subdivision one-e of section three hundred thirty-three of the real property law. The commis- sioner may redisclose such information to the extent authorized by section five hundred seventy-four of the real property tax law. THE COMMISSIONER MAY ALSO DISCLOSE ANY INFORMATION REPORTED PURSUANT TO PARAGRAPH TWO OF SUBDIVISION (A) OF SECTION FOURTEEN HUNDRED NINE OF THIS ARTICLE. § 5. This act shall take effect immediately; provided however that sections one and two of this act shall take effect July 1, 2021, and shall apply to conveyances occurring on or after such date other than conveyances that are made pursuant to binding written contracts entered into on or before April 1, 2021, provided that the date of execution of such contract is confirmed by independent evidence, such as the record- ing of the contract, payment of a deposit or other facts and circum- stances as determined by the commissioner of taxation and finance. PART P Section 1. Section 480-a of the tax law is amended by adding a new subdivision 6 to read as follows: 6. (A) NO RETAIL DEALER WHO HAS ITS RETAIL DEALER REGISTRATION CANCELLED, SUSPENDED OR REVOKED PURSUANT TO THIS SECTION OR HAS BEEN FORBIDDEN FROM SELLING CIGARETTES OR TOBACCO PRODUCTS PURSUANT TO PARA- GRAPH (J) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY OF THIS ARTICLE SHALL POSSESS CIGARETTES OR TOBACCO PRODUCTS IN ANY PLACE OF BUSINESS, CART, STAND, TRUCK OR OTHER MERCHANDISING DEVICE IN THIS STATE BEGINNING ON THE TENTH DAY AFTER SUCH CANCELLATION, SUSPENSION, REVOCA- TION, OR FORBIDDANCE AND CONTINUING FOR THE DURATION OF THE SAME; PROVIDED HOWEVER, SUCH RETAIL DEALER SHALL NOT BE PROHIBITED BEFORE THE TENTH DAY AFTER SUCH CANCELLATION, SUSPENSION, REVOCATION, OR FORBID- DANCE FROM SELLING OR TRANSFERRING ITS INVENTORY OF LAWFULLY STAMPED CIGARETTES OR TOBACCO PRODUCTS ON WHICH THE TAXES IMPOSED BY THIS ARTI- CLE HAVE BEEN ASSUMED OR PAID TO A PROPERLY REGISTERED RETAIL DEALER WHOSE REGISTRATION IS NOT CANCELLED, SUSPENDED, OR REVOKED OR WHO HAS NOT BEEN FORBIDDEN FROM SELLING CIGARETTES OR TOBACCO PRODUCTS. (B) NO RETAIL DEALER SHALL POSSESS CIGARETTES OR TOBACCO PRODUCTS IN ANY PLACE OF BUSINESS, CART, STAND, TRUCK OR OTHER MERCHANDISING DEVICE IN THIS STATE UNLESS IT HAS OBTAINED A VALID RETAIL DEALER REGISTRATION FROM THE COMMISSIONER. (C) THE POSSESSION OF CIGARETTES OR TOBACCO PRODUCTS IN VIOLATION OF PARAGRAPH (A) OR (B) OF THIS SUBDIVISION SHALL BE PRESUMPTIVE EVIDENCE S. 2509--B 45 THAT SUCH CIGARETTES OR TOBACCO PRODUCTS ARE BEING SOLD IN VIOLATION OF THIS SECTION AND SECTION FOUR HUNDRED EIGHTY OF THIS ARTICLE AND, IN ADDITION TO ANY OTHER APPLICABLE PENALTIES, SHALL BE SUBJECT TO THE PENALTIES AUTHORIZED BY SUBDIVISION THREE OF THIS SECTION. § 2. Subparagraph (A) of paragraph (4) of subdivision (a) of section eleven hundred thirty-four of the tax law, as amended by chapter 59 of the laws of 2020, 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) willfully 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 subdi- vision (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 arti- cle 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 commission- er pursuant to paragraph three of such subdivision, (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 registration issued pursuant to section four hundred eighty-a of this chapter revoked pursuant to subparagraph (iii) of paragraph (a) of subdivision four of such section four hundred eighty-a, OR (VIII) HAS NOT OBTAINED A VALID RETAIL DEALER REGISTRATION UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER AND SUCH PERSON POSSESSES OR SELLS UNSTAMPED OR UNLAWFULLY STAMPED PACKAGES OF CIGARETTES THREE OR MORE TIMES WITHIN A PERIOD OF FIVE YEARS, 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 (A) 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 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, OR (B) THE GROUNDS SET FORTH IN CLAUSE (VIII) OF THIS SUBPARA- GRAPH, SUCH SUSPENSION OR REVOCATION SHALL BE FOR A PERIOD OF FIVE YEARS. § 3. Subparagraph (B) of paragraph (4) of subdivision (a) of section eleven hundred thirty-four of the tax law, as amended by chapter 59 of the laws of 2020, 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, S. 2509--B 46 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, (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 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 subparagraph (iii) of paragraph (a) of subdivi- sion four of such section four hundred eighty-a, where such revocation remains in effect, OR (VIII) SUCH PERSON HAS NOT OBTAINED A VALID RETAIL DEALER REGISTRATION UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER AND HAS POSSESSED OR SOLD UNSTAMPED OR UNLAWFULLY STAMPED PACKAGES OF CIGARETTES THREE OR MORE TIMES WITHIN A PERIOD OF FIVE YEARS, the commissioner may refuse to issue a certificate of authority; PROVIDED HOWEVER THAT UNDER THE CIRCUMSTANCES DESCRIBED IN CLAUSE (VIII) OF THIS SUBPARAGRAPH, SUCH PERSON SHALL NOT BE ELIGIBLE TO SUBMIT A CERTIFICATE OF REGISTRATION FOR A CERTIFICATE OF AUTHORITY UNTIL FIVE YEARS AFTER ITS LAST POSSESSION OR SALE OF UNSTAMPED OR UNLAWFULLY STAMPED PACKAGES OF CIGARETTES WITHIN SUCH FIVE YEAR PERIOD. § 4. Any retail dealer who, prior to the effective date of this act, had its retail dealer registration cancelled, suspended, or revoked pursuant to section four hundred eighty-a of the tax law or was forbid- den from selling cigarettes or tobacco products pursuant to paragraph (j) of subdivision one of section four hundred eighty of the tax law and such cancellation, suspension, revocation, or forbiddance remains in effect as of the effective date of this act, shall be prohibited from possessing cigarettes and tobacco products beginning on the tenth day after the effective date of this act and continuing for as long as such cancellation, suspension, revocation, or forbiddance shall remain in effect; provided however, such retail dealer shall not be prohibited before the tenth day after the effective date of this act from selling or transferring its inventory of lawfully stamped cigarettes or tobacco products on which the taxes imposed by this article have been assumed or S. 2509--B 47 paid to a properly registered retail dealer whose registration is not cancelled, suspended, or revoked or who has not been forbidden from selling cigarettes or tobacco products. § 5. This act shall take effect immediately. PART Q Section 1. Subdivision 1 of section 429 of the tax law, as amended by chapter 433 of the laws of 1978, is amended to read as follows: 1. Every distributor, noncommercial importer or other person shall, on or before the twentieth day of each month, file with the department of taxation and finance a return, on forms to be prescribed by the [tax commission] COMMISSIONER and furnished by such department, stating sepa- rately the number of gallons, or lesser quantity, of beers, and the number of liters, or lesser quantity, of wines and liquors sold or used by such distributor, noncommercial importer or other person in this state during the preceding calendar month, except that the [tax commis- sion] COMMISSIONER may, if [it] HE OR SHE deems it necessary [in order] to [insure] FACILITATE the EFFICIENT REPORTING AND payment of the tax imposed by this article, require returns to be made at such times and covering such periods as [it] HE OR SHE may deem necessary. Such return shall contain such further information as the [tax commission] COMMIS- SIONER shall require. The fact that the name of the distributor, noncom- mercial importer or other person is signed to a filed return shall be prima facie evidence for all purposes that the return was actually signed by such distributor, noncommercial importer or other person. § 2. Section 505 of the tax law, as amended by section 2 of part E of chapter 60 of the laws of 2007, is amended to read as follows: § 505. Returns. Every carrier subject to this article and every carri- er to whom a certificate of registration was issued shall file on or before the last day of each month a return for the preceding calendar month where a carrier's total tax liability under this article for the preceding calendar year exceeded [four] TWELVE thousand dollars. Where a carrier's total tax liability under this article for the preceding calendar year did not exceed [four] TWELVE thousand dollars or where a carrier was not subject to such tax in the preceding calendar year, returns shall be filed quarterly, on or before the last day of the calendar month following each of the calendar quarters: January through March, April through June, July through September and October through December. Provided, however, if the commissioner consents thereto in writing, any carrier may file a return on or before the thirtieth day after the close of any different period, if the carrier's books are regularly kept on a periodic basis other than a calendar month or quar- ter. The commissioner may permit the filing of returns on an annual basis, provided the carrier was subject to the tax under this article during the entire preceding calendar year and the carrier's total tax liability under this article for such year did not exceed [two hundred fifty] TWELVE HUNDRED dollars. Such annual returns shall be filed on or before January thirty-first of the succeeding calendar year. Returns shall be filed with the commissioner on forms to be furnished by such commissioner for such purpose and shall contain such data, information or matter as the commissioner may require to be included therein. The fact that a carrier's name is signed to a filed return shall be prima facie evidence for all purposes that the return was actually signed by such carrier. The commissioner may grant a reasonable extension of time for filing returns whenever good cause exists and may waive the filing S. 2509--B 48 of returns if a carrier is not subject to the tax imposed by this arti- cle for the period covered by the return. Every return shall have annexed thereto a certification to the effect that the statements contained therein are true. § 3. This act shall take effect immediately; provided, however, that section two of this act shall apply to tax returns for taxable periods beginning on or after January 1, 2022. PART R Section 1. Section 1280 of the tax law is amended by adding a new subdivision (v) to read as follows: (V) "TECHNOLOGY SERVICE PROVIDER" OR "TSP" MEANS A PERSON THAT ACTS BY EMPLOYMENT, CONTRACT OR OTHERWISE ON BEHALF OF ONE OR MORE TAXICAB OWNERS OR HAIL VEHICLE OWNERS TO COLLECT THE TRIP RECORD FOR A TAXICAB TRIP OR HAIL VEHICLE TRIP. § 2. Subdivision (b) of section 1283 of the tax law, as amended by chapter 9 of the laws of 2012, is amended to read as follows: (b) (1) If the taxicab owner has designated an agent, then the agent shall be jointly liable with the taxicab owner for the tax on trips occurring during the period that such designation is in effect. Even if the TLC has specified that the taxicab owner's agent cannot operate as an agent, that agent shall be jointly liable with the taxicab owner if the agent has acted for the taxicab owner. During the period that a taxicab owner's designation of an agent is in effect, the agent shall file the returns required by this article and pay any tax due with such return, but the taxicab owner shall not be relieved of liability for tax, penalty or interest due under this article, or for the filing of returns required to be filed, unless the agent has timely filed accurate returns and timely paid the tax required to be paid under this article. If a taxicab owner has designated an agent, then the agent must perform any act this article requires the taxicab owner to perform, but the failure of such agent to perform any such act shall not relieve the taxicab owner from the obligation to perform such act or from any liability that may arise from failure to perform the act. (2) (A) NOTWITHSTANDING THE FOREGOING, A TSP THAT COLLECTS THE TRIP RECORD AND THE TRIP FARE ON BEHALF OF A TAXICAB OWNER OR A HAIL VEHICLE OWNER SHALL BE JOINTLY LIABLE WITH THE TAXICAB OWNER OR HAIL VEHICLE OWNER FOR THE TAX DUE ON SUCH TRIPS. FOR ANY PERIOD THAT THE TSP COLLECTS TRIP RECORDS ON BEHALF OF A TAXICAB OWNER OR HAIL VEHICLE OWNER, THE TSP SHALL FILE RETURNS REPORTING ALL TRIP RECORDS AND, AFTER RETAINING ANY FEES TO WHICH IT IS ENTITLED PURSUANT TO A CONTRACT WITH SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, SHALL REMIT THE TAXES DUE ON ALL FARES COLLECTED BY THE TSP. (B) THE TSP, AFTER RETAINING THE FEES DESCRIBED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH, SHALL ALSO REMIT THE TAXES DUE ON ANY TAXICAB TRIP OR HAIL VEHICLE TRIP FOR WHICH IT MAINTAINED THE TRIP RECORD BUT DID NOT COLLECT THE FARE, FROM ANY FARES IT COLLECTED ON BEHALF OF ANY SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, BEFORE IT RELEASES ANY PROCEEDS TO THE TAXICAB OWNER OR HAIL VEHICLE OWNER. IF THE TSP FAILS TO COMPLY WITH THE REQUIREMENTS OF THIS SUBPARAGRAPH, SUCH TSP SHALL BE LIABLE FOR THE TAXES DUE ON SUCH TRIPS UP TO THE AMOUNT IT RELEASED TO THE TAXICAB OWNER OR HAIL VEHICLE OWNER, OR ANY PERSON ON BEHALF OF SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER. HOWEVER, THE TAXICAB OWNER, HAIL VEHICLE OWNER OR THEIR AGENTS SHALL NOT BE RELIEVED OF ANY LIABILITY FOR THE TAX, PENALTY OR INTEREST DUE UNDER THIS ARTICLE, OR FOR FILING OF S. 2509--B 49 RETURNS REQUIRED TO BE FILED, UNLESS THE TSP HAS TIMELY FILED ACCURATE RETURNS AND TIMELY PAID THE TAX REQUIRED TO BE PAID UNDER THIS ARTICLE. § 3. Subdivision (a) of section 1299-B of the tax law, as added by section 2 of part NNN of chapter 59 of the laws of 2018, is amended to read as follows: (a) Notwithstanding any provision of law to the contrary, any person that dispatches a motor vehicle by any means that provides transporta- tion that is subject to a surcharge imposed by this article, including transportation network companies as defined in article forty-four-B of the vehicle and traffic law, shall be liable for the surcharge imposed by this article, except that in the case of taxicab trips and HAIL vehi- cle trips that are also subject to tax pursuant to article twenty-nine-A of this chapter[, only the taxicab owner or HAIL base liable for that tax shall be the person liable for the surcharge imposed by this arti- cle]: (1) THE TSP SHALL BE LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE FOR ALL TRIPS FOR WHICH THE TSP COLLECTED THE TRIP RECORD AND THE SURCHARGE, AND SHALL BE RESPONSIBLE FOR FILING RETURNS; AND, AFTER RETAINING ANY FEES TO WHICH IT IS ENTITLED PURSUANT TO A CONTRACT WITH SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, SHALL REMIT THE SURCHARGES ON SUCH TRIPS TO THE DEPARTMENT. (2) THE TSP, AFTER RETAINING THE FEES DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION, SHALL ALSO REMIT THE SURCHARGES DUE ON ANY TAXICAB TRIP OR HAIL VEHICLE TRIP FOR WHICH IT MAINTAINED THE TRIP RECORD BUT DID NOT COLLECT THE FARE, FROM ANY FARES IT COLLECTED ON BEHALF OF ANY SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, BEFORE IT RELEASES ANY PROCEEDS TO THE TAXICAB OWNER OR HAIL VEHICLE OWNER. WHENEVER THE TSP FAILS TO COMPLY WITH THE REQUIREMENTS OF THE PRECEDING SENTENCE, THE TSP SHALL BE LIABLE FOR THE SURCHARGES DUE ON SUCH TRIPS UP TO THE AMOUNT IT RELEASED TO THE TAXICAB OWNER OR HAIL VEHICLE OWNER, OR ANY PERSON ON BEHALF OF SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER. HOWEVER, THE TAXI- CAB OWNER OR HAIL BASE SHALL BE JOINTLY AND SEVERALLY LIABLE WITH THE TSP FOR SUCH SURCHARGES. For purposes of this section, the terms "taxi- cab trips," "HAIL vehicle trips," "taxicab owner," [and] "HAIL base", AND "TSP" shall have the same meaning as they do in section twelve hundred eighty of this chapter. § 4. Section 1299-F of the tax law is amended by adding a new subdivi- sion (e) to read as follows: (E) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, PERMIT THE PROPER OFFI- CER OF THE TAXI AND LIMOUSINE COMMISSION OF THE CITY OF NEW YORK (TLC) OR THE DULY AUTHORIZED REPRESENTATIVE OF SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR SUCH OFFICER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH PERSON WITH INFORMATION CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF TAX LIABILITY UNDER THIS ARTICLE; BUT SUCH PERMISSION SHALL BE GRANTED OR SUCH INFORMATION FURNISHED ONLY IF THE TLC SHALL HAVE FURNISHED THE COMMISSIONER WITH ALL INFORMATION REQUESTED BY THE COMMISSIONER PURSUANT TO THIS ARTICLE AND SHALL HAVE PERMITTED THE COMMISSIONER OR THE COMMISSIONER'S AUTHORIZED REPRESENTATIVE TO MAKE ANY INSPECTION OF ANY RECORDS OR REPORTS CONCERN- ING FOR-HIRE TRANSPORTATION TRIPS SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, AND ANY PERSONS REQUIRED TO COLLECT SUCH SURCHARGE, FILED WITH OR POSSESSED BY THE TLC THAT THE COMMISSIONER MAY HAVE REQUESTED FROM THE TLC. PROVIDED, FURTHER, THAT THE COMMISSIONER MAY DISCLOSE TO THE TLC WHETHER OR NOT A PERSON LIABLE FOR THE SURCHARGE IMPOSED BY THIS S. 2509--B 50 ARTICLE HAS PAID ALL OF THE SURCHARGES DUE UNDER THIS ARTICLE AS OF ANY GIVEN DATE. § 5. This act shall take effect immediately and shall apply to trips occurring on or after July 1, 2021. PART S Section 1. Paragraph 1 of subdivision (g) of section 32 of the tax law, as added by section 2 of part VV of chapter 59 of the laws of 2009, is amended to read as follows: (1) If a tax return preparer or facilitator is required to register or re-register with the department pursuant to paragraph one or three of subdivision (b) of this section, as applicable, and fails to do so in accordance with the terms of this section, then the tax return preparer [of] OR facilitator must pay a penalty of [two] FIVE hundred [fifty] dollars. Provided, however, that if the tax return preparer or facili- tator complies with the registration requirements of this section within ninety calendar days after notification of assessment of this penalty is sent by the department, then this penalty must be abated. If the tax return preparer or facilitator continues to fail to register or re-re- gister after the ninety calendar day period, the tax return preparer or facilitator must pay an additional penalty of [five hundred] ONE THOU- SAND dollars if the failure is for not more than one month, with an additional [five hundred] ONE THOUSAND dollars for each additional month or fraction thereof during which the failure continues. Once the ninety calendar days specified in this paragraph have expired, the penalty can be waived only for good cause shown by the tax return preparer or faci- litator. § 2. Paragraph 2 of subdivision (g) of section 32 of the tax law, as added by section 2 of part VV of chapter 59 of the laws of 2009, is amended to read as follows: (2) If a commercial tax return preparer fails to pay the fee as required in paragraph one of subdivision (c) of this section, for a calendar year, then the commercial tax return preparer must pay a penal- ty of fifty dollars for each return the commercial tax return preparer has filed with the department in that calendar year. [Provided however, that if the commercial tax return preparer complies with the payment requirements of paragraph one of subdivision (c) of this section, within ninety calendar days after notification of the assessment of this penal- ty is sent by the department, then this penalty must be abated.] The maximum penalty that may be imposed under this paragraph on any commer- cial tax return preparer during any calendar year must not exceed [five] TEN thousand dollars. [Once the ninety calendar days specified in this paragraph have expired, the] THE penalty can be waived only for good cause shown by the commercial tax return preparer. § 3. Section 32 of the tax law is amended by adding a new subdivision (h) to read as follows: (H) (1) TAX RETURN PREPARERS AND FACILITATORS MUST PROMINENTLY AND CONSPICUOUSLY DISPLAY A COPY OF THEIR REGISTRATION CERTIFICATE ISSUED PURSUANT TO THIS SECTION, FOR THE CURRENT REGISTRATION PERIOD, AT THEIR PLACE OF BUSINESS AND AT ANY OTHER LOCATION WHERE THEY PROVIDE TAX RETURN PREPARATION AND/OR FACILITATION SERVICES, IN AN AREA WHERE TAXPAYERS USING THEIR SERVICES ARE ABLE TO SEE AND REVIEW SUCH REGISTRA- TION CERTIFICATE. (2) TAX RETURN PREPARERS AND FACILITATORS MUST PROMINENTLY AND CONSPICUOUSLY DISPLAY AT THEIR PLACE OF BUSINESS AND AT ANY OTHER S. 2509--B 51 LOCATION WHERE THEY PROVIDE TAX RETURN PREPARATION AND/OR FACILITATION SERVICES THE FOLLOWING DOCUMENTS: (A) A CURRENT PRICE LIST, IN AT LEAST FOURTEEN-POINT TYPE, THAT INCLUDES, BUT IS NOT LIMITED TO, A LIST OF ALL SERVICES OFFERED BY THE TAX RETURN PREPARER AND/OR FACILITATOR; THE MINIMUM FEE CHARGED FOR EACH SERVICE, INCLUDING THE FEE CHARGED FOR EACH TYPE OF FEDERAL OR NEW YORK STATE TAX RETURN TO BE PREPARED AND FACILITATION SERVICE TO BE PROVIDED; AND A LIST OF EACH FACTOR THAT MAY INCREASE A STATED FEE AND THE SPECIF- IC ADDITIONAL FEES OR RANGE OF POSSIBLE ADDITIONAL FEES WHEN EACH FACTOR APPLIES; AND (B) A COPY OF THE MOST RECENT CONSUMER BILL OF RIGHTS REGARDING TAX PREPARERS PUBLISHED BY THE DEPARTMENT PURSUANT TO SECTION THREE HUNDRED SEVENTY-TWO OF THE GENERAL BUSINESS LAW. (3) A TAX RETURN PREPARER OR FACILITATOR WHO FAILS TO COMPLY WITH ANY OF THE REQUIREMENTS OF THIS SUBDIVISION MUST PAY A PENALTY OF FIVE HUNDRED DOLLARS; PROVIDED, HOWEVER, THAT IF THE TAX RETURN PREPARER OR FACILITATOR COMPLIES WITH THE DISPLAY REQUIREMENTS OF THIS SECTION WITH- IN NINETY CALENDAR DAYS AFTER NOTIFICATION OF ASSESSMENT OF THIS PENALTY IS SENT BY THE DEPARTMENT, THEN THIS PENALTY MUST BE ABATED. IF THE TAX RETURN PREPARER OR FACILITATOR CONTINUES TO FAIL TO DISPLAY A COPY OF THEIR REGISTRATION CERTIFICATE, A CURRENT PRICE LIST, THE MINIMUM FEE CHARGED FOR EACH SERVICE, AND A COPY OF THE MOST RECENT CONSUMER BILL OF RIGHTS REGARDING TAX PREPARERS AFTER THE NINETY CALENDAR DAY PERIOD, THE TAX RETURN PREPARER OR FACILITATOR MUST PAY AN ADDITIONAL PENALTY OF ONE THOUSAND DOLLARS FOR EACH ADDITIONAL MONTH OR FRACTION THEREOF DURING WHICH THE FAILURE CONTINUES. ONCE THE NINETY CALENDAR DAYS SPECI- FIED IN THIS PARAGRAPH HAVE EXPIRED, THE PENALTY CAN BE WAIVED ONLY FOR GOOD CAUSE SHOWN BY THE TAX RETURN PREPARER OR FACILITATOR. § 4. The second subdivision (g) of section 32 of the tax law is relet- tered subdivision (i). § 5. This act shall take effect immediately; provided, however, that paragraph (3) of subdivision (h) of section 32 of the tax law, as added by section three of this act, shall take effect January 1, 2022. PART T Intentionally Omitted PART U Section 1. Paragraphs i and v 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, are amended to read as follows: i. A recording officer shall not record or accept for [record] RECORD- ING any conveyance of real property affecting land in New York state unless accompanied by ONE OF THE FOLLOWING: (1) A RECEIPT ISSUED BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW; OR (2) 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 S. 2509--B 52 this subdivision], and the fee prescribed pursuant to subdivision three of this section. 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 provision of law to the contrary, affirmants may be allowed, but shall not be required, to sign such affirmations electronically. § 2. Paragraphs vii and viii of subdivision 1-e of section 333 of the real property law are REPEALED. § 3. 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 subdivision (d) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 3. [The] (I) WHEN A recording officer [of every county and the city of New York] IS PRESENTED WITH A CONVEYANCE FOR RECORDING THAT IS ACCOMPA- NIED BY A RECEIPT ISSUED BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW, SUCH RECORDING OFFICER SHALL BE RELIEVED OF THE RESPONSI- BILITY TO COLLECT THE FEE DESCRIBED BY THIS SUBDIVISION. HE OR SHE SHALL NONETHELESS BE ENTITLED TO THE PORTION OF SUCH FEE THAT HE OR SHE WOULD OTHERWISE HAVE DEDUCTED PURSUANT TO THIS SUBDIVISION, AS PROVIDED BY SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW. (II) WHEN A RECORDING OFFICER IS PRESENTED WITH A CONVEYANCE FOR RECORDING THAT IS NOT ACCOMPANIED BY SUCH A RECEIPT, HE OR SHE 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 para- graph 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 SUBPARAGRAPH TWO OF PARAGRAPH I OF 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 twen- ty-one of title eleven of the administrative code of the city of New York, except where a real property transfer reporting form is also submitted for recording for the transfer as required under SUBPARAGRAPH TWO OF PARAGRAPH I OF 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. S. 2509--B 53 § 4. Subsection (d) of section 663 of the tax law, as amended by section 1 of part P of chapter 686 of the laws of 2003, is amended to read as follows: (d) A recording officer shall not record or accept for [record] RECORDING any deed unless ONE OF THE FOLLOWING CONDITIONS IS SATISFIED: (1) IT IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMISSIONER INDICAT- ING THAT THE ESTIMATED TAX REQUIRED BY THIS SECTION HAS BEEN PAID TO THE COMMISSIONER EITHER ELECTRONICALLY OR AS OTHERWISE PRESCRIBED BY HIM OR HER; (2) IT IS accompanied by a form prescribed by the commissioner pursu- ant to subsection (b) of this section and the payment of any estimated tax shown as payable on such form[,]; or [unless] (3) such RECEIPT OR form includes a certification by the transferor that this section is inapplicable to the sale or transfer. § 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] 1. WHEN A recording officer designated to act as such agent IS PRESENTED WITH A CONVEYANCE FOR RECORDING THAT IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMISSIONER PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THIS ARTICLE, SUCH RECORDING OFFICER SHALL BE RELIEVED OF THE RESPONSIBILITY TO COLLECT THE REAL ESTATE TRANSFER TAX THEREON. HE OR SHE SHALL NONETHELESS BE ENTITLED TO THE PORTION OF SUCH TAX THAT HE OR SHE WOULD OTHERWISE HAVE RETAINED PURSUANT TO THIS SUBDIVISION, AS PROVIDED BY SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW. 2. WHEN A RECORDING OFFICER IS PRESENTED WITH A CONVEYANCE FOR RECORD- ING THAT IS NOT ACCOMPANIED BY A RECEIPT DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION, HE OR SHE SHALL COLLECT THE APPLICABLE REAL ESTATE TRANSFER TAX AND 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 effecting 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 taxation 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 regu- S. 2509--B 54 lations of the commissioner 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. § 6. Subdivision (b) of 1409 of the tax law, as added by chapter 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 THIS 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 ONE OF THE FOLLOWING CONDITIONS IS SATISFIED: (1) THE INSTRUMENT IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMIS- SIONER PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY- THREE OF THIS ARTICLE; OR (2) the return required by section fourteen hundred nine of this arti- cle has been filed and the real estate transfer tax due, if any, shall have been paid as provided in this section. § 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 ONE OF THIS SUBDIVISION INTO A CONSOLIDATED REAL PROPERTY TRANSFER FORM TO BE FILED WITH HIM OR HER ELECTRONICALLY; PROVIDED: (1) 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 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. (2) 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. S. 2509--B 55 (3) WHEN A CONSOLIDATED REAL PROPERTY TRANSFER FORM IS ELECTRONICALLY SUBMITTED TO THE DEPARTMENT BY EITHER THE GRANTOR OR GRANTEE OR A DULY AUTHORIZED AGENT THEREOF, 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 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 S. 2509--B 56 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 SHALL NOTIFY THE COMMISSIONER THAT SUCH JURISDICTION WILL FOLLOW THE SYSTEM AUTHORIZED PURSUANT TO THIS SECTION TO BE USED THEREIN, IN WRITING. § 9. This act shall take effect immediately. PART V Section 1. This Part enacts into law components of legislation relat- ing to the administration of the STAR program authorized by section 425 of the real property tax law and subsection (eee) of section 606 of the tax law. Each component is wholly contained within a Subpart identified as Subparts A through E. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes refer- ence to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corre- sponding section of the Subpart in which it is found. Section three of this Part sets forth the general effective date of this Part. SUBPART A Intentionally Omitted SUBPART B Intentionally Omitted SUBPART C Intentionally Omitted SUBPART D Intentionally Omitted SUBPART E Section 1. Paragraph 2 of subdivision w of section 233 of the real property law is REPEALED. § 2. Paragraph 3 of subdivision w of section 233 of the real property law, as amended by section 18 of part B of chapter 389 of the laws of 1997, is amended to read as follows: 3. A manufactured home park owner or operator providing a reduction in rent as required by paragraph one [or two] of this subdivision may retain, in consideration for record keeping expenses, two percent of the amount of such reduction. S. 2509--B 57 § 3. The opening paragraph of paragraph 3-a of subdivision w of section 233 of the real property law, as added by chapter 405 of the laws of 2001, is amended to read as follows: Any reduction required to be provided pursuant to paragraph one [or two] of this subdivision shall be provided as follows: § 4. Paragraph (l) of subdivision 2 of section 425 of the real proper- ty tax law is amended by adding a new subparagraph (iv) to read as follows: (IV) BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND TWENTY-TWO--TWO THOUSAND TWENTY-THREE SCHOOL YEAR, NO EXEMPTION SHALL BE GRANTED PURSUANT TO THIS SECTION TO A MOBILE HOME THAT IS DESCRIBED IN THIS PARAGRAPH. OWNERS OF SUCH PROPERTY MAY CLAIM THE CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW IN THE MANNER PRESCRIBED THEREIN. § 5. Subparagraph (B) of paragraph 6 of subsection (eee) of section 606 of the tax law is amended by adding a new clause (iii) to read as follows: (III) BEGINNING WITH THE TWO THOUSAND TWENTY-TWO TAXABLE YEAR, TO RECEIVE THE CREDIT AUTHORIZED BY THIS SUBSECTION, AN OWNER OF A MOBILE HOME DESCRIBED BY CLAUSE (I) OF THIS SUBPARAGRAPH SHALL REGISTER FOR SUCH CREDIT IN THE MANNER PRESCRIBED BY THE COMMISSIONER. § 6. This act shall take effect immediately; provided, however, that the amendments to subdivision w of section 233 of the real property law made by sections one, two and three of this act shall be applicable beginning with assessment rolls used to levy school district taxes for the 2022--2023 school year. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section, item, subpart 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, subdivi- sion, section, item, subpart or part thereof directly involved in the controversy in which such judgment shall have been rendered. It is here- by declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included here- in. § 3. This act shall take effect immediately, provided, however, that the applicable effective date of Subpart E of this act shall be as specifically set forth in the last section of such Subpart. PART W Section 1. Section 200 of the real property tax law, as amended by section 4-a of part W of chapter 56 of the laws of 2010, is amended to read as follows: § 200. State board. There is hereby created in the department of taxa- tion and finance a separate and independent state board of real property tax services, to consist of five members to be appointed by the gover- nor, by and with the advice and consent of the senate. Of those five members appointed by the governor, one such person shall be an individ- ual actively engaged in the commercial production for sale of agricul- tural crops, livestock and livestock products of an average gross sales value of ten thousand dollars or more. Said individual shall be appointed in the first instance to a term of eight years upon expiration of an existing term. Said initial term shall commence on the first day of January next succeeding the year in which the existing term shall S. 2509--B 58 expire. The governor shall designate one of the members as the chairman of the board, who shall serve as chairman at the pleasure of the gover- nor. A MAJORITY OF THE DULY APPOINTED MEMBERS SHALL CONSTITUTE A QUORUM AND NOT LESS THAN A MAJORITY OF SUCH MEMBERS CONCURRING MAY TRANSACT ANY BUSINESS, PERFORM ANY DUTY OR EXERCISE ANY POWER OF THE BOARD. The members of the board shall be appointed for terms of eight years, commencing on the first day of January next following the year in which the term of his predecessor expired, except that the terms of the members first appointed shall expire as follows: one on December thir- ty-first, nineteen hundred sixty-one, one on December thirty-first, nineteen hundred sixty-three, one on December thirty-first, nineteen hundred sixty-five, one on December thirty-first, nineteen hundred sixty-seven, and one on December thirty-first, nineteen hundred eighty- two. Vacancies occurring otherwise than by expiration of term shall be filled for the unexpired term. All members shall receive necessary expenses incurred in the performance of their duties. § 2. Section 307 of the real property tax law is REPEALED. § 3. Subdivision 4 of section 483 of the real property tax law, as amended by chapter 72 of the laws of 1979 and as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, and as renumbered by chapter 797 of the laws of 1992, is amended to read as follows: 4. Such exemption from taxation shall be granted only upon an applica- tion by the owner of the building or structure on a form prescribed by the commissioner. The applicant shall furnish such information as [such board] THE COMMISSIONER shall require. Such application shall be filed with the assessor of the city, town, village or county having the power to assess property for taxation on or before the appropriate taxable status date of such city, town, village or county and within one year from the date of completion of such construction or reconstruction. § 4. Subdivision 3 of section 489-n of the real property tax law, as added by chapter 86 of the laws of 1963 and as further amended by subdi- vision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 3. The commissioner shall meet at the time and place specified in such notice to hear complaints in relation to the tentative determination of the railroad ceiling. The provisions of section five hundred twelve of this chapter shall apply so far as may be practicable to a hearing under this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 5. Subdivision 3 of section 489-kk of the real property tax law, as added by chapter 920 of the laws of 1977 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: 3. The commissioner shall meet at the time and place specified in such notice to hear complaints in relation to the tentative determination of the railroad ceiling. The provisions of section five hundred twelve of this chapter shall apply so far as may be practicable to a hearing under this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 6. The real property tax law is amended by adding a new section 497 to read as follows: § 497. CONSTRUCTION OF CERTAIN LOCAL OPTION PROVISIONS IN EXEMPTION STATUTES. 1. POPULATION RESTRICTIONS. WHEN AN EXEMPTION STATUTE MAKES ONE OR MORE OPTIONS AVAILABLE TO MUNICIPAL CORPORATIONS HAVING A POPU- LATION WITHIN A SPECIFIED RANGE, AND THE GOVERNING BODY OF A MUNICIPAL S. 2509--B 59 CORPORATION ADOPTS A LOCAL LAW OR RESOLUTION EXERCISING SUCH AN OPTION WHILE ITS POPULATION IS WITHIN THE SPECIFIED RANGE, A SUBSEQUENT CHANGE IN THE POPULATION OF THE MUNICIPAL CORPORATION THAT PLACES IT OUTSIDE THE SPECIFIED RANGE SHALL NOT RENDER SUCH LOCAL LAW OR RESOLUTION INEF- FECTIVE OR INVALID, NOR SHALL IT IMPAIR THE ABILITY OF THE GOVERNING BODY TO AMEND OR REPEAL SUCH LOCAL LAW OR RESOLUTION TO THE SAME EXTENT AS IF ITS POPULATION WERE STILL WITHIN THE SPECIFIED RANGE. PROVIDED, HOWEVER, THAT THIS SUBDIVISION SHALL NOT APPLY TO ANY EXEMPTION STATUTE THAT EXPRESSLY PROVIDES THAT A LOCAL LAW OR RESOLUTION ADOPTED THERE- UNDER SHALL BECOME INEFFECTIVE OR INVALID IF THE POPULATION OF THE MUNICIPAL CORPORATION SUBSEQUENTLY EXPERIENCES A CHANGE THAT PLACES IT OUTSIDE THE SPECIFIED RANGE. 2. FILING PROVISIONS. WHEN AN EXEMPTION STATUTE MAKES ONE OR MORE OPTIONS AVAILABLE TO SOME OR ALL MUNICIPAL CORPORATIONS, AND FURTHER PROVIDES THAT A MUNICIPAL CORPORATION ADOPTING A LOCAL LAW OR RESOLUTION EXERCISING SUCH AN OPTION SHALL FILE A COPY THEREOF WITH ONE OR MORE STATE AGENCIES OTHER THAN THE DEPARTMENT OF STATE, BUT IF SUCH STATUTE DOES NOT EXPRESSLY PROVIDE THAT A LOCAL LAW OR RESOLUTION EXERCISING SUCH AN OPTION SHALL NOT TAKE EFFECT UNTIL A COPY THEREOF IS FILED WITH THE SPECIFIED STATE AGENCY OR AGENCIES, THEN A FAILURE TO COMPLY WITH SUCH FILING PROVISION SHALL NOT RENDER SUCH LOCAL LAW OR RESOLUTION INEFFECTIVE OR INVALID. § 7. Subdivision 3 of section 499-oooo of the real property tax law, as added by chapter 475 of the laws of 2013, is amended to read as follows: 3. The commissioner or his or her designee shall meet at the time and place specified in such notice set forth in subdivision one of this section to hear complaints in relation to the tentative determination of the assessment ceiling. The provisions of section five hundred twelve of this chapter shall apply so far as may be practicable to a hearing under this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 8. Section 612 of the real property tax law, 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: § 612. Hearing of complaints. The commissioner or a duly authorized representative thereof shall meet at the time and place specified in the notice required by section six hundred eight of this chapter to hear complaints in relation to assessments of special franchises. The provisions of section five hundred twelve of this chapter shall apply so far as practicable to the hearing of complaints pursuant to this section. NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 9. Section 1208 of the real property tax law, as amended by chapter 385 of the laws of 1990 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: § 1208. Hearing of complaints. The commissioner or a duly authorized representative thereof shall meet at the time and place specified in the notice required by section twelve hundred four of this chapter to hear complaints in relation to equalization rates, class ratios or class equalization rates. The provisions of section five hundred twenty-five of this chapter shall apply so far as practicable to a hearing under this section. NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. S. 2509--B 60 § 10. This act shall take effect immediately; provided, however, that notwithstanding the provisions of subdivision 2 of section 497 of the real property tax law as added by section six of this act, the decision issued by the Appellate Division, Third Department on April 16, 2020, in the Matter of Laertes Solar, LLC v Assessor of the Town of Harford, cited as 182 A.D.3d 826, 122 N.Y.S.3d 427, and 2020 NY Slip Op 02302, motion for leave to appeal dismissed in part and otherwise denied by the Court of Appeals on November 19, 2020, shall remain binding upon the parties thereto; and provided further that the amendments made to section 489-oooo of the real property tax law made by section seven of this act shall not affect the repeal of such section and shall be deemed to be repealed therewith. PART X Section 1. Subdivisions 5, 7 and 9 of section 487 of the real property tax law, subdivision 5 as amended by chapter 325 of the laws of 2018, subdivision 7 as amended by chapter 515 and subdivision 9 as added by chapter 608 of the laws of 2002, and paragraph (a) of subdivision 9 as amended by chapter 344 of the laws of 2014, are amended to read as follows: 5. The exemption granted pursuant to this section shall only be appli- cable to (a) solar or wind energy systems or farm waste energy systems which are (i) existing or constructed prior to July first, nineteen hundred eighty-eight or (ii) constructed subsequent to January first, nineteen hundred ninety-one and prior to January first, two thousand [twenty-five] THIRTY, and (b) micro-hydroelectric energy systems, fuel cell electric generating systems, micro-combined heat and power generat- ing equipment systems, electric energy storage equipment or electric energy storage system, or fuel-flexible linear generator electric gener- ating system which are constructed subsequent to January first, two thousand eighteen and prior to January first, two thousand [twenty-five] THIRTY. 7. If the assessor is satisfied that the applicant is entitled to an exemption pursuant to this section, he or she shall approve the applica- tion and enter the taxable assessed value of the parcel for which an exemption has been granted pursuant to this section on the assessment roll with the taxable property, with the amount of the exemption SET FORTH IN A SEPARATE COLUMN as computed pursuant to subdivision two of this section in a separate column. In the event that real property granted an exemption pursuant to this section ceases to be used primari- ly for eligible purposes, the exemption granted pursuant to this section shall cease. 9. (a) A county, city, town, village or school district, except a school district under article fifty-two of the education law, that has not acted to remove the exemption under this section may require the owner of a property which includes a solar or wind energy system which meets the requirements of subdivision four of this section, to enter into a contract for payments in lieu of taxes. Such contract may require annual payments in an amount not to exceed the amounts which would otherwise be payable but for the exemption under this section. If the owner or developer of such a system provides written notification to a taxing jurisdiction of its intent to construct such a system, then in order to require the owner or developer of such system to enter into a contract for payments in lieu of taxes, such taxing jurisdiction must notify such owner or developer IN WRITING of its intent to require a S. 2509--B 61 contract for payments in lieu of taxes within sixty days of receiving the written notification. WRITTEN NOTIFICATION TO A TAXING JURISDICTION FOR THIS PURPOSE SHALL INCLUDE A HARD COPY LETTER SENT TO THE HIGHEST- RANKING OFFICIAL OF THE TAXING JURISDICTION. SUCH LETTER SHALL EXPLICIT- LY REFERENCE SUBDIVISION NINE OF SECTION FOUR HUNDRED EIGHTY-SEVEN OF THE REAL PROPERTY TAX LAW, AND CLEARLY STATE THAT, UNLESS THE TAXING JURISDICTION RESPONDS WITHIN SIXTY DAYS IN WRITING WITH ITS INTENT TO REQUIRE A CONTRACT FOR PAYMENTS IN LIEU OF TAXES, SUCH PROJECT SHALL NOT BE OBLIGATED TO MAKE SUCH PAYMENTS. (b) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, SHOULD A TAXING JURISDICTION ADOPT A LAW OR RESOLUTION AT ANY TIME WITHIN OR PRIOR TO THE SIXTY DAY WINDOW, INDICATING THE TAXING JURISDICTION'S ONGOING INTENT TO REQUIRE A CONTRACT FOR PAYMENTS IN LIEU OF TAXES FOR SUCH SYSTEMS, SUCH LAW OR RESOLUTION SHALL BE CONSIDERED NOTIFICATION TO OWNERS OR DEVELOPERS AND NO FURTHER ACTION IS REQUIRED ON THE PART OF THE TAXING JURISDICTION, PROVIDED THAT SUCH LAW OR RESOLUTION REMAINS IN EFFECT THROUGH THE END OF THE SIXTY DAY NOTIFICATION PERIOD. [The] (C) ANY payment in lieu of a tax agreement shall not operate for a period of more than fifteen years, commencing in each instance from the date on which the benefits of such exemption first become available and effective. § 2. Subdivision 1 of section 575-a of the real property tax law, as added by section 1 of subpart F of part J of chapter 59 of the laws of 2019, is amended to read as follows: 1. Every corporation, company, association, joint stock association, partnership and person, their lessees, trustees or receivers appointed by any court whatsoever, owning, operating or managing any electric generating facility in the state shall annually file with the commis- sioner, by April thirtieth, a report showing the inventory, revenue, and expenses associated therewith for the most recent fiscal year, AND, IN THE CASE OF SOLAR AND WIND ENERGY SYSTEMS, SUCH OTHER INFORMATION AS THE COMMISSIONER MAY REASONABLY REQUIRE FOR THE DEVELOPMENT AND MAINTENANCE OF AN APPRAISAL MODEL AND DISCOUNT RATE AS REQUIRED PURSUANT TO SECTION 575-B OF THIS CHAPTER. Such report shall be in the form and manner prescribed by the commissioner. § 3. The real property tax law is amended by adding a new section 575-b to read as follows: § 575-B. SOLAR OR WIND ENERGY SYSTEMS. 1. THE ASSESSED VALUE FOR SOLAR OR WIND ENERGY SYSTEMS, AS DEFINED IN SECTION FOUR HUNDRED EIGHTY-SEVEN OF THIS CHAPTER, SHALL BE DETERMINED BY A DISCOUNTED CASH FLOW APPROACH THAT INCLUDES: (A) AN APPRAISAL MODEL IDENTIFIED AND PUBLISHED BY THE NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE, IN CONSULTATION WITH THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, AND PERIODICALLY THEREAFTER AS APPROPRIATE; AND (B) A SOLAR OR WIND ENERGY SYSTEM DISCOUNT RATE PUBLISHED ANNUALLY BY THE NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE. 2. THE REPORTS REQUIRED BY SECTION FIVE HUNDRED SEVENTY-FIVE-A OF THIS TITLE SHALL BE DESIGNED TO ELICIT SUCH INFORMATION AS THE COMMISSIONER MAY REASONABLY REQUIRE FOR THE DEVELOPMENT AND MAINTENANCE OF AN APPRAISAL MODEL AND DISCOUNT RATE. 3. THE PROVISIONS OF THIS SECTION SHALL ONLY APPLY TO SOLAR OR WIND ENERGY SYSTEMS WITH A NAMEPLATE CAPACITY EQUAL TO OR GREATER THAN ONE MEGAWATT. S. 2509--B 62 § 4. The third undesignated paragraph of section 852 of the general municipal law, as amended by chapter 630 of the laws of 1977, is amended to read as follows: It is hereby further declared to be the policy of this state to protect and promote the health of the inhabitants of this state and to increase trade through promoting the development of facilities to provide recreation for the citizens of the state and to attract tourists from other states AND TO PROMOTE THE DEVELOPMENT OF RENEWABLE ENERGY PROJECTS TO SUPPORT THE STATE'S RENEWABLE ENERGY GOALS AS MAY BE ESTAB- LISHED OR AMENDED FROM TIME TO TIME. § 5. Subdivision 4 of section 854 of the general municipal law, as amended by section 6 of part J of chapter 59 of the laws of 2013, is amended and a new subdivision 21 is added to read as follows: (4) "Project" - shall mean any land, any building or other improve- ment, and all real and personal properties located within the state of New York and within or outside or partially within and partially outside the municipality for whose benefit the agency was created, including, but not limited to, machinery, equipment and other facilities deemed necessary or desirable in connection therewith, or incidental thereto, whether or not now in existence or under construction, which shall be suitable for manufacturing, warehousing, research, commercial, RENEWABLE ENERGY or industrial purposes or other economically sound purposes iden- tified and called for to implement a state designated urban cultural park management plan as provided in title G of the parks, recreation and historic preservation law and which may include or mean an industrial pollution control facility, a recreation facility, educational or cultural facility, a horse racing facility, a railroad facility, A RENEWABLE ENERGY PROJECT or an automobile racing facility, provided, however, no agency shall use its funds or provide financial assistance in respect of any project wholly or partially outside the municipality for whose benefit the agency was created without the prior consent ther- eto by the governing body or bodies of all the other municipalities in which a part or parts of the project is, or is to be, located, and such portion of the project located outside such municipality for whose bene- fit the agency was created shall be contiguous with the portion of the project inside such municipality. (21) "RENEWABLE ENERGY PROJECT" SHALL MEAN ANY PROJECT AND ASSOCIATED REAL PROPERTY ON WHICH THE PROJECT IS SITUATED, THAT UTILIZES ANY SYSTEM OR EQUIPMENT AS SET FORTH IN SECTION FOUR HUNDRED EIGHTY-SEVEN OF THE REAL PROPERTY TAX LAW OR AS DEFINED PURSUANT TO PARAGRAPH B OF SUBDIVI- SION ONE OF SECTION SIXTY-SIX-P OF THE PUBLIC SERVICE LAW AS ADDED BY CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO THOUSAND NINETEEN. § 6. The opening paragraph of section 858 of the general municipal law, as amended by chapter 478 of the laws of 2011, is amended to read as follows: The purposes of the agency shall be to promote, develop, encourage and assist in the acquiring, constructing, reconstructing, improving, main- taining, equipping and furnishing industrial, manufacturing, warehous- ing, commercial, research, RENEWABLE ENERGY and recreation facilities including industrial pollution control facilities, educational or cultural facilities, railroad facilities, horse racing facilities, auto- mobile racing facilities, RENEWABLE ENERGY PROJECTS and continuing care retirement communities, provided, however, that, of agencies governed by this article, only agencies created for the benefit of a county and the agency created for the benefit of the city of New York shall be author- ized to provide financial assistance in any respect to a continuing care S. 2509--B 63 retirement community, and thereby advance the job opportunities, health, general prosperity and economic welfare of the people of the state of New York and to improve their recreation opportunities, prosperity and standard of living; and to carry out the aforesaid purposes, each agency shall have the following powers: § 7. Paragraph (b) of subdivision 5 of section 859-a of the general municipal law, as added by chapter 563 of the laws of 2015, is amended to read as follows: (b) a written cost-benefit analysis by the agency that identifies the extent to which a project will create or retain permanent, private sector jobs; the estimated value of any tax exemptions to be provided; the amount of private sector investment generated or likely to be gener- ated by the proposed project; THE CONTRIBUTION OF THE PROJECT TO THE STATE'S RENEWABLE ENERGY GOALS AND EMISSION REDUCTION TARGETS AS SET FORTH IN THE STATE ENERGY PLAN ADOPTED PURSUANT TO SECTION 6-104 OF THE ENERGY LAW; the likelihood of accomplishing the proposed project in a timely fashion; and the extent to which the proposed project will provide additional sources of revenue for municipalities and school districts; and any other public benefits that might occur as a result of the project; § 8. This act shall take effect immediately. PART Y Section 1. Section 1367 of the racing, pari-mutuel wagering and breed- ing law, as added by chapter 174 of the laws of 2013, paragraphs (b) and (d) of subdivision 3 as amended by section 1 of part X of chapter 59 of the laws of 2020, is amended to read as follows: § 1367. Sports wagering. 1. As used in this section: (a) "AFFILIATE" MEANS ANY OFF-TRACK BETTING CORPORATION, FRANCHISED CORPORATION, OR RACE TRACK LICENSED PURSUANT TO THIS CHAPTER, AN OPERA- TOR OF VIDEO LOTTERY GAMING AT AQUEDUCT LICENSED PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE TAX LAW, WHICH HAS AN AFFILIATE AGREEMENT WITH A CASINO PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEV- EN-A OF THIS TITLE. ANY PROFESSIONAL SPORTS STADIUM OR ARENA MAY SERVE AS AN AFFILIATE; (B) "AGENT" MEANS AN ENTITY THAT IS PARTY TO A CONTRACT WITH A CASINO AUTHORIZED TO OPERATE A SPORTS POOL AND IS APPROVED BY THE COMMISSION TO OPERATE A SPORTS POOL ON BEHALF OF SUCH CASINO; (C) "AUTHORIZED SPORTS BETTOR" MEANS AN INDIVIDUAL WHO IS PHYSICALLY PRESENT IN THIS STATE WHEN PLACING A SPORTS WAGER, WHO IS NOT A PROHIB- ITED SPORTS BETTOR, THAT PARTICIPATES IN SPORTS WAGERING OFFERED BY A CASINO. ALL SPORTS WAGERS PLACED IN ACCORDANCE WITH THIS SECTION ARE CONSIDERED PLACED OR OTHERWISE MADE WHEN RECEIVED BY THE OPERATOR AT THE LICENSED GAMING FACILITY, REGARDLESS OF THE AUTHORIZED SPORTS BETTOR'S PHYSICAL LOCATION AT THE TIME THE SPORTS WAGER IS INITIATED. THE INTER- MEDIATE ROUTING OF ELECTRONIC DATA IN CONNECTION WITH MOBILE SPORTS WAGERING SHALL NOT DETERMINE THE LOCATION OR LOCATIONS IN WHICH A WAGER IS INITIATED, RECEIVED OR OTHERWISE MADE; (D) "BRAND" MEANS THE NAME AND LOGO ON THE INTERFACE OF A MOBILE APPLICATION OR INTERNET WEBSITE ACCESSED VIA A MOBILE DEVICE OR COMPUTER WHICH AUTHORIZED SPORTS BETTORS USE TO ACCESS A SPORTS BETTING PLATFORM; (E) "Casino" means a licensed gaming facility at which gambling is conducted pursuant to the provisions of this article; [(b)] (F) "Commission" means the commission established pursuant to section one hundred two of this chapter; S. 2509--B 64 [(c)] (G) "Collegiate sport or athletic event" means a sport or athletic event offered or sponsored by or played in connection with a public or private institution that offers educational services beyond the secondary level; [(d)] (H) "COVERED PERSONS" INCLUDES: ATHLETES; PLAYERS; UMPIRES; REFEREES; OFFICIALS; PERSONNEL ASSOCIATED WITH PLAYERS, CLUBS, TEAMS, LEAGUES, AND ATHLETIC ASSOCIATIONS; MEDICAL PROFESSIONALS, INCLUDING ATHLETIC TRAINERS WHO PROVIDE SERVICES TO ATHLETES AND PLAYERS; AND THE FAMILY MEMBERS AND ASSOCIATES OF THESE PERSONS WHERE REQUIRED TO SERVE THE PURPOSES OF THIS TITLE; (I) "EXCHANGE WAGERING" MEANS A FORM OF WAGERING IN WHICH AN AUTHOR- IZED SPORTS BETTOR, ON THE ONE HAND, AND ONE OR MORE AUTHORIZED SPORTS BETTORS, A CASINO OR AN AGENT OR AN OPERATOR, ON THE OTHER HAND PLACE IDENTICALLY OPPOSING SPORTS WAGERS ON AN EXCHANGE OPERATED BY A CASINO OR AN AGENT OR AN OPERATOR; (J) "GLOBAL RISK MANAGEMENT" MEANS THE DIRECTION, MANAGEMENT, CONSUL- TATION AND/OR INSTRUCTION FOR PURPOSES OF MANAGING RISKS ASSOCIATED WITH SPORTS WAGERING CONDUCTED PURSUANT TO THIS SECTION AND INCLUDES THE SETTING AND ADJUSTMENT OF BETTING LINES, POINT SPREADS, OR ODDS AND WHETHER TO PLACE LAYOFF BETS AS PERMITTED BY THIS SECTION; (K) "HIGH SCHOOL SPORT OR ATHLETIC EVENT" MEANS A SPORT OR ATHLETIC EVENT OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A PUBLIC OR PRIVATE INSTITUTION THAT OFFERS EDUCATION SERVICES AT THE SECONDARY LEVEL; (L) "HORSE RACING EVENT" MEANS ANY SPORT OR ATHLETIC EVENT CONDUCTED IN NEW YORK STATE SUBJECT TO THE PROVISIONS OF ARTICLES TWO, THREE, FOUR, FIVE, SIX, NINE, TEN AND ELEVEN OF THIS CHAPTER, OR ANY SPORT OR ATHLETIC EVENT CONDUCTED OUTSIDE OF NEW YORK STATE, WHICH IF CONDUCTED IN NEW YORK STATE WOULD BE SUBJECT TO THE PROVISIONS OF THIS CHAPTER; (M) "IN-PLAY SPORTS WAGER" MEANS A SPORTS WAGER PLACED ON A SPORTS EVENT AFTER THE SPORTS EVENT HAS BEGUN AND BEFORE IT ENDS; (N) "LAYOFF BET" MEANS A SPORTS WAGER PLACED BY A CASINO SPORTS POOL WITH ANOTHER CASINO SPORTS POOL; (O) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS; (P) "MOBILE SPORTS WAGERING PLATFORM" OR "PLATFORM" MEANS THE COMBINA- TION OF HARDWARE, SOFTWARE, AND DATA NETWORKS USED TO MANAGE, ADMINIS- TER, OR CONTROL SPORTS WAGERING AND ANY ASSOCIATED WAGERS ACCESSIBLE BY ANY ELECTRONIC MEANS INCLUDING MOBILE APPLICATIONS AND INTERNET WEBSITES ACCESSED VIA A MOBILE DEVICE OR COMPUTER; (Q) "OFFICIAL LEAGUE DATA" MEANS STATISTICS, RESULTS, OUTCOMES, AND OTHER DATA RELATING TO A SPORTING EVENT THAT HAVE BEEN OBTAINED FROM THE RELEVANT SPORTS GOVERNING BODY THAT IS HEADQUARTERED IN THE UNITED STATES OR AN ENTITY EXPRESSLY AUTHORIZED BY THE SPORTS GOVERNING BODY TO PROVIDE SUCH INFORMATION TO CASINOS; (R) "Operator" means a casino which has elected to operate a sports pool (OR AGENT OF SUCH CASINO) OR AN INDIAN TRIBE (OR AN AGENT OF SUCH INDIAN TRIBE) THAT HAS ENTERED INTO A TRIBAL-STATE GAMING COMPACT IN ACCORDANCE WITH THE INDIAN GAMING REGULATORY ACT 25 U.S.C. 2710, THAT IS IN EFFECT AND HAS BEEN RATIFIED BY THE STATE AND HAS ENTERED INTO A SPORTS WAGERING AGREEMENT PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY- SEVEN-A OF THIS TITLE; (S) "PERSONS WHO PRESENT SPORTING CONTESTS" INCLUDES SPORTS GOVERNING BODIES AND ASSOCIATIONS, THEIR MEMBERS AND AFFILIATES, AND OTHER PERSONS WHO PRESENT SPORTING CONTESTS TO THE PUBLIC; [(e)] (T) "Professional sport or athletic event" means an event at which two or more persons participate in sports or athletic events and S. 2509--B 65 receive compensation in excess of actual expenses for their partic- ipation in such event; (U) "PROHIBITED CONDUCT" MEANS ANY STATEMENT, ACTION, AND OTHER COMMU- NICATION INTENDED TO INFLUENCE, MANIPULATE, OR CONTROL A BETTING OUTCOME OF A SPORTING CONTEST OR OF ANY INDIVIDUAL OCCURRENCE OR PERFORMANCE IN A SPORTING CONTEST IN EXCHANGE FOR FINANCIAL GAIN OR TO AVOID FINANCIAL OR PHYSICAL HARM. "PROHIBITED CONDUCT" INCLUDES STATEMENTS, ACTIONS, AND COMMUNICATIONS MADE TO A COVERED PERSON BY A THIRD PARTY, SUCH AS A FAMILY MEMBER OR THROUGH SOCIAL MEDIA; (V) "PROFESSIONAL SPORTS STADIUM OR ARENA" MEANS A STADIUM, BALLPARK, OR ARENA THAT IS THE PERMANENT HOME OF A PROFESSIONAL SPORTS TEAM PLAY- ING AT THE HIGHEST PROFESSIONAL LEVEL IN ITS SPORT AND HAS A SEATING CAPACITY FOR SUCH CONTESTS EXCEEDING FIFTEEN THOUSAND SEATS; (W) "PROHIBITED SPORTS BETTOR" MEANS: (I) ANY OFFICER OR EMPLOYEE OF THE COMMISSION; (II) ANY PRINCIPAL OR KEY EMPLOYEE OF A CASINO OR OPERATOR, EXCEPT AS MAY BE PERMITTED BY THE COMMISSION FOR GOOD CAUSE SHOWN; (III) ANY CASINO GAMING OR NON-GAMING EMPLOYEE AT THE CASINO THAT EMPLOYS SUCH PERSON AND AT ANY OPERATOR THAT HAS AN AGREEMENT WITH THAT CASINO; (IV) ANY CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OR OFFICER OR EMPLOYEE OF A CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OF A CASINO IF SUCH PERSON IS DIRECTLY INVOLVED IN THE OPERATION OR OBSERVATION OF SPORTS WAGERING, OR THE PROCESSING OF SPORTS WAGERING CLAIMS OR PAYMENTS; (V) ANY PERSON SUBJECT TO A CONTRACT WITH THE COMMISSION IF SUCH CONTRACT CONTAINS A PROVISION PROHIBITING SUCH PERSON FROM PARTICIPATING IN SPORTS WAGERING; (VI) ANY SPOUSE, CHILD, BROTHER, SISTER OR PARENT RESIDING AS A MEMBER OF THE SAME HOUSEHOLD IN THE PRINCIPAL PLACE OF ABODE OF ANY OF THE FOREGOING PERSONS AT THE SAME CASINO WHERE THE FOREGOING PERSON IS PROHIBITED FROM PARTICIPATING IN SPORTS WAGERING; (VII) ANY INDIVIDUAL WITH ACCESS TO NON-PUBLIC CONFIDENTIAL INFORMA- TION ABOUT SPORTS WAGERING; (VIII) ANY AMATEUR OR PROFESSIONAL ATHLETE IF THE SPORTS WAGER IS BASED ON ANY SPORT OR ATHLETIC EVENT OVERSEEN BY THE ATHLETE'S SPORTS GOVERNING BODY; (IX) ANY SPORTS AGENT, OWNER OR EMPLOYEE OF A TEAM, PLAYER AND UMPIRE UNION PERSONNEL, AND EMPLOYEE REFEREE, COACH OR OFFICIAL OF A SPORTS GOVERNING BODY, IF THE SPORTS WAGER IS BASED ON ANY SPORT OR ATHLETIC EVENT OVERSEEN BY THE INDIVIDUAL'S SPORTS GOVERNING BODY; (X) ANY INDIVIDUAL PLACING A WAGER AS AN AGENT OR PROXY FOR AN OTHER- WISE PROHIBITED SPORTS BETTOR; OR (XI) ANY MINOR; [(f)] (X) "Prohibited sports event" means any collegiate sport or athletic event that takes place in New York or a sport or athletic event in which any New York college team participates regardless of where the event takes place, OR HIGH SCHOOL SPORT OR ATHLETIC EVENT; [(g)] (Y) "REGISTERED SPORTS GOVERNING BODY" MEANS A SPORTS GOVERNING BODY THAT IS HEADQUARTERED IN THE UNITED STATES AND WHO HAS REGISTERED WITH THE COMMISSION TO RECEIVE ROYALTY FEE REVENUE IN SUCH FORM AS THE COMMISSION MAY REQUIRE; (Z) "Sports event" means any professional sport or athletic event and any collegiate sport or athletic event, except a prohibited sports event OR A HORSE RACING EVENT; S. 2509--B 66 [(h)] (AA) "SPORTS GOVERNING BODY" MEANS THE ORGANIZATION THAT PRESCRIBES FINAL RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT TO A SPORTING EVENT AND PARTICIPANTS THEREIN; (BB) "Sports pool" means the business of accepting wagers on any sports event by any system or method of wagering; [and (i)] (CC) "SPORTS WAGER" MEANS CASH OR CASH EQUIVALENT THAT IS PAID BY AN AUTHORIZED SPORTS BETTOR TO A CASINO TO PARTICIPATE IN SPORTS WAGER- ING OFFERED BY SUCH CASINO; (DD) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTICIPATING IN A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY ANY SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED TO, IN-PER- SON COMMUNICATION AND ELECTRONIC COMMUNICATION THROUGH INTERNET WEBSITES ACCESSED VIA A MOBILE DEVICE OR COMPUTER AND MOBILE DEVICE APPLICATIONS. ANY WAGER THROUGH ELECTRONIC COMMUNICATION SHALL BE DEEMED TO TAKE PLACE AT THE PHYSICAL LOCATION OF THE SERVER OR OTHER EQUIPMENT USED BY AN OPERATOR TO ACCEPT MOBILE SPORTS WAGERING, REGARDLESS OF THE AUTHORIZED SPORTS BETTOR'S PHYSICAL LOCATION WITHIN THE STATE AT THE TIME THE WAGER IS INITIATED. THE TERM "SPORTS WAGERING" SHALL INCLUDE, BUT IS NOT LIMITED TO, SINGLE-GAME BETS, TEASER BETS, PARLAYS, OVER-UNDER BETS, MONEY LINE, POOLS, EXCHANGE WAGERING, IN-GAME WAGERING, IN-PLAY BETS, PROPOSITION BETS AND STRAIGHT BETS; (EE) "SPORTS WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE TOTAL OF ALL SPORTS WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS THAT AN OPERATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF ALL SUMS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS PAID OUT AS WINNINGS TO ALL SPORTS BETTORS, HOWEVER, THAT THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS TO SPORTS BETTORS SHALL NOT INCLUDE THE CASH EQUIVALENT VALUE OF ANY MERCHANDISE OR THING OF VALUE AWARDED AS A PRIZE, OR (II) IN THE CASE OF EXCHANGE WAGERING PURSUANT TO THIS SECTION, THE COMMISSION ON WINNING SPORTS WAGERS BY AUTHORIZED SPORTS BETTORS RETAINED BY THE OPER- ATOR. THE ISSUANCE TO OR WAGERING BY AUTHORIZED SPORTS BETTORS AT A CASINO OF ANY PROMOTIONAL GAMING CREDIT SHALL NOT BE TAXABLE FOR THE PURPOSES OF DETERMINING SPORTS WAGERING GROSS REVENUE; (FF) "Sports wagering lounge" means an area wherein a sports pool is operated; (GG) "TIER ONE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS DETERMINED SOLELY BY THE FINAL SCORE OR FINAL OUTCOME OF THE SPORTS EVENT; (HH) "TIER TWO SPORTS WAGER" MEANS AN IN-PLAY SPORTS WAGER THAT IS NOT A TIER ONE SPORTS WAGER; (II) "TIER THREE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS NEITHER A TIER ONE NOR A TIER TWO SPORTS WAGER; AND (JJ) "INDIAN TRIBE" MEANS AN INDIAN TRIBE (OR AN AGENT OF SUCH TRIBE) THAT HAS ENTERED INTO A TRIBAL-STATE GAMING COMPACT IN ACCORDANCE WITH THE INDIAN GAMING REGULATORY ACT OF 1988 (18 U.S.C. SEC. 1166 TO 1168, INCLUSIVE, AND 25 U.S.C. SEC. 2701 ET SEQ.) WHICH HAS BEEN RATIFIED BY THE STATE; (KK) "UNUSUAL BETTING ACTIVITY" MEANS ABNORMAL BETTING ACTIVITY EXHIB- ITED BY PATRONS AND DEEMED BY THE CASINO OR OPERATION, PURSUANT TO RULES AND REGULATIONS PROMULGATED BY THE COMMISSION, AS A POTENTIAL INDICATOR OF SUSPICIOUS ACTIVITY. ABNORMAL BETTING ACTIVITY MAY INCLUDE, BUT IS NOT LIMITED TO, THE SIZE OF A PATRON'S WAGER OR INCREASED BETTING VOLUME ON A PARTICULAR EVENT OR WAGER TYPE; (LL) "SUSPICIOUS BETTING ACTIVITY" MEANS UNUSUAL BETTING ACTIVITY THAT CANNOT BE EXPLAINED AND IS INDICATIVE OF MATCH FIXING, THE MANIPULATION S. 2509--B 67 OF AN EVENT, MISUSE OF INSIDE INFORMATION, OR OTHER PROHIBITED ACTIVITY; AND (MM) "INDEPENDENT INTEGRITY MONITOR" MEANS AN INDEPENDENT INDIVIDUAL OR ENTITY APPROVED BY THE COMMISSION TO RECEIVE REPORTS OF UNUSUAL BETTING ACTIVITY FROM A CASINO OR OPERATOR FOR THE PURPOSE OF ASSISTING IN IDENTIFYING SUSPICIOUS BETTING ACTIVITY. 2. [No gaming facility may conduct sports wagering until such time as there has been a change in federal law authorizing such or upon a ruling of a court of competent jurisdiction that such activity is lawful. 3.] (a) In addition to authorized gaming activities, a [licensed gaming facility] CASINO may [when authorized by subdivision two of this section] operate a sports pool upon the approval of the commission and in accordance with the provisions of this section and applicable regu- lations promulgated pursuant to this article. The commission shall hear and decide promptly and in reasonable order all applications for a license to operate a sports pool, shall have the general responsibility for the implementation of this section and shall have all other duties specified in this section with regard to the operation of a sports pool. The license to operate a sports pool shall be in addition to any other license required to be issued to operate a [gaming facility] CASINO. No license to operate a sports pool shall be issued by the commission to any entity unless it has established its financial stability, integrity and responsibility and its good character, honesty and integrity. No later than five years after the date of the issuance of a license and every five years thereafter or within such lesser periods as the commission may direct, a licensee shall submit to the commission such documentation or information as the commission may by regulation require, to demonstrate to the satisfaction of the executive director of the commission that the licensee continues to meet the requirements of the law and regulations. (b) AS A CONDITION OF LICENSURE THE COMMISSION SHALL REQUIRE THAT EACH AGENT AUTHORIZED TO CONDUCT SPORTS WAGERING PAY A ONE-TIME FEE OF TWELVE MILLION DOLLARS. SUCH FEE SHALL BE PAID WITHIN THIRTY DAYS OF GAMING COMMISSION APPROVAL PRIOR TO LICENSE ISSUANCE AND DEPOSITED INTO THE COMMERCIAL GAMING REVENUE FUND ESTABLISHED PURSUANT TO SECTION THIRTEEN HUNDRED FIFTY-TWO OF THIS ARTICLE. (C) A sports pool shall be 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. Provided, however, the commission may also approve additional locations for a sports pool within 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. [(c)] (D) The operator of a sports pool shall establish or display the odds at which wagers may be placed on sports events. [(d)] (E) An operator shall accept wagers on sports events only from persons physically present in the sports wagering lounge, THROUGH MOBILE SPORTS WAGERING OFFERED PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEV- EN-A OF THIS TITLE, or any additional locations for a sports pool within the casino, approved by the gaming commission. A person placing a wager shall be at least twenty-one years of age. [(e)] (F) AN OPERATOR MAY ALSO ACCEPT LAYOFF BETS AS LONG AS THE AUTHORIZED SPORTS POOL PLACES SUCH WAGERS WITH ANOTHER AUTHORIZED SPORTS POOL OR POOLS IN ACCORDANCE WITH REGULATIONS OF THE COMMISSION. A SPORTS POOL THAT PLACES A LAYOFF BET SHALL INFORM THE SPORTS POOL ACCEPTING THE S. 2509--B 68 WAGER THAT THE WAGER IS BEING PLACED BY A SPORTS POOL AND SHALL DISCLOSE ITS IDENTITY. (G) AN OPERATOR MAY UTILIZE GLOBAL RISK MANAGEMENT PURSUANT TO THE APPROVAL OF THE COMMISSION. (H) An operator shall not admit into the sports wagering lounge, or accept wagers from, any person whose name appears on the exclusion list. [(f)] (I) The holder of a license to operate a sports pool may contract with an [entity] AGENT to conduct ANY OR ALL ASPECTS OF that operation, OR THE OPERATION OF MOBILE SPORTS WAGERING OFFERED PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE, INCLUDING BUT NOT LIMITED TO BRAND, MARKETING AND CUSTOMER SERVICE, in accordance with the regulations of the commission. [That entity] EACH AGENT shall obtain a license as a casino vendor enterprise prior to the execution of any such contract, and such license shall be issued pursuant to the provisions of section one thousand three hundred twenty-seven of this article and in accordance with the regulations promulgated by the commission. [(g)] (J) If any provision of this article or its application to any person or circumstance is held invalid, the invalidity 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 severable. [4.] 3. (a) All persons employed directly in wagering-related activ- ities conducted within a sports wagering lounge shall be licensed as a casino key employee or registered as a gaming employee, as determined by the commission. All other employees who are working in the sports wager- ing lounge may be required to be registered, if appropriate, in accord- ance with regulations of the commission. (b) Each operator of a sports pool shall designate one or more casino key employees who shall be responsible for the operation of the sports pool. At least one such casino key employee shall be on the premises whenever sports wagering is conducted. [5.] 4. Except as otherwise provided by this article, the commission shall have the authority to regulate sports pools and the conduct of sports wagering under this article to the same extent that the commis- sion regulates other gaming. No casino shall be authorized to operate a sports pool unless it has produced information, documentation, and assurances concerning its financial background and resources, including cash reserves, that are sufficient to demonstrate that it has the finan- cial stability, integrity, and responsibility to operate a sports pool. In developing rules and regulations applicable to sports wagering, the commission shall examine the regulations implemented in other states where sports wagering is conducted and shall, as far as practicable, adopt a similar regulatory framework. The commission shall promulgate regulations necessary to carry out the provisions of this section, including, but not limited to, regulations governing the: (a) amount of cash reserves to be maintained by operators to cover winning wagers; (b) acceptance of wagers on a series of sports events; (c) maximum wagers which may be accepted by an operator from any one patron on any one sports event; (d) type of wagering tickets which may be used; (e) method of issuing tickets; (f) method of accounting to be used by operators; (g) types of records which shall be kept; (h) use of credit and checks by [patrons] AUTHORIZED SPORTS BETTORS; S. 2509--B 69 (i) THE PROCESS BY WHICH A CASINO MAY PLACE A LAYOFF BET; (J) THE USE OF GLOBAL RISK MANAGEMENT; (K) type of system for wagering; and [(j)] (L) protections for a person placing a wager. [6.] 5. Each operator shall adopt comprehensive house rules governing sports wagering transactions with its [patrons] AUTHORIZED SPORTS BETTORS. The rules shall specify the amounts to be paid on winning wagers and the effect of schedule changes. The house rules, together with any other information the commission deems appropriate, shall be conspicuously displayed in the sports wagering lounge and included in the terms and conditions of the account wagering system, and copies shall be made readily available to [patrons] AUTHORIZED SPORTS BETTORS. 6. (A) EACH CASINO THAT OFFERS SPORTS WAGERING SHALL ANNUALLY SUBMIT A REPORT TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY OF EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION: (I) THE TOTAL AMOUNT OF SPORTS WAGERS RECEIVED FROM AUTHORIZED SPORTS BETTORS; (II) THE TOTAL AMOUNT OF PRIZES AWARDED TO AUTHORIZED SPORTS BETTORS; (III) THE TOTAL AMOUNT OF SPORTS WAGERING GROSS REVENUE RECEIVED BY THE CASINO; (IV) THE TOTAL AMOUNT CONTRIBUTED IN SPORTS BETTING ROYALTY REVENUE PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION; (V) THE TOTAL AMOUNT OF WAGERS RECEIVED ON EACH SPORTS GOVERNING BODY'S SPORTING EVENTS; (VI) THE NUMBER OF ACCOUNTS HELD BY AUTHORIZED SPORTS BETTORS; (VII) THE TOTAL NUMBER OF NEW ACCOUNTS ESTABLISHED IN THE PRECEDING YEAR, AS WELL AS THE TOTAL NUMBER OF ACCOUNTS PERMANENTLY CLOSED IN THE PRECEDING YEAR; (VIII) THE TOTAL NUMBER OF AUTHORIZED SPORTS BETTORS THAT REQUESTED TO EXCLUDE THEMSELVES FROM SPORTS WAGERING; AND (IX) ANY ADDITIONAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ARTICLE. (B) UPON THE SUBMISSION OF SUCH ANNUAL REPORT, TO SUCH EXTENT THAT THE COMMISSION DEEMS IT TO BE IN THE PUBLIC INTEREST, THE COMMISSION SHALL BE AUTHORIZED TO CONDUCT A FINANCIAL AUDIT OF ANY CASINO, AT ANY TIME, TO ENSURE COMPLIANCE WITH THIS ARTICLE. (C) THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE- GATE INFORMATION PROVIDED BY ALL CASINOS PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, WHICH SHALL BE PUBLISHED ON THE COMMISSION'S WEBSITE NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DEADLINE FOR THE SUBMISSION OF INDIVIDUAL REPORTS AS SPECIFIED IN SUCH PARAGRAPH (A). 7. (A) WITHIN THIRTY DAYS OF THE END OF EACH CALENDAR QUARTER, A CASI- NO OFFERING SPORTS WAGERING SHALL REMIT TO THE COMMISSION A SPORTS WAGERING ROYALTY FEE OF ONE-FIFTH (.20) OF ONE PERCENT OF THE AMOUNT WAGERED ON SPORTS EVENTS CONDUCTED BY REGISTERED SPORTS GOVERNING BODIES. THE FEE SHALL BE REMITTED ON A FORM AS THE COMMISSION MAY REQUIRE, ON WHICH THE CASINO SHALL IDENTIFY THE PERCENTAGE OF WAGERING DURING THE REPORTING PERIOD ATTRIBUTABLE TO EACH REGISTERED SPORT GOVERNING BODY'S SPORTS EVENTS. (B) NO LATER THAN THE THIRTIETH OF APRIL OF EACH YEAR, A REGISTERED SPORTS GOVERNING BODY MAY SUBMIT A CLAIM FOR DISBURSEMENT OF THE ROYALTY FEE FUNDS REMITTED BY CASINOS IN THE PREVIOUS CALENDAR YEAR ON THEIR RESPECTIVE SPORTS EVENTS. WITHIN THIRTY DAYS OF SUBMITTING ITS CLAIM FOR DISBURSEMENT, THE REGISTERED SPORTS GOVERNING BODY SHALL MEET WITH THE COMMISSION TO PROVIDE THE COMMISSION WITH EVIDENCE OF POLICIES, PROCE- S. 2509--B 70 DURES AND TRAINING PROGRAMS IT HAS IMPLEMENTED TO PROTECT THE INTEGRITY OF ITS SPORTS EVENTS. (C) WITHIN THIRTY DAYS OF ITS MEETING WITH THE REGISTERED SPORTS GOVERNING BODY, THE COMMISSION SHALL APPROVE A TIMELY CLAIM FOR DISBURSEMENT. (D) (I) PERSONS WHO PRESENT SPORTING CONTESTS SHALL HAVE AUTHORITY TO REMOVE SPECTATORS AND OTHERS FROM ANY FACILITY FOR VIOLATION ANY APPLI- CABLE CODES OF CONDUCT, AND TO DENY PERSONS ACCESS TO ALL FACILITIES THEY CONTROL, TO REVOKE SEASON TICKETS OR COMPARABLE LICENSES, AND TO SHARE INFORMATION ABOUT SUCH PERSONS WITH OTHERS WHO PRESENT SPORTING CONTESTS AND WITH THE APPROPRIATE JURISDICTIONS' LAW ENFORCEMENT AUTHOR- ITIES. (II) PERSONS WHO PRESENT SPORTING CONTESTS SHALL PROVIDE NOTICE TO THE GENERAL PUBLIC AND THOSE WHO ATTEND SPORTING CONTESTS OR VISIT THEIR FACILITIES OF ANY APPLICABLE CODES OF CONDUCT AND THE POTENTIAL PENAL- TIES FOR VIOLATING SUCH CODES. 8. FOR THE PRIVILEGE OF CONDUCTING SPORTS WAGERING IN THE STATE, CASI- NOS SHALL PAY A TAX EQUIVALENT TO EIGHT AND ONE-HALF PERCENT OF THEIR SPORTS WAGERING GROSS REVENUE, EXCLUDING SPORTS WAGERING GROSS REVENUE ATTRIBUTED TO MOBILE SPORTS WAGERING OFFERED PURSUANT TO SECTION THIR- TEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE. CASINOS SHALL PAY A TAX EQUIV- ALENT OF TWELVE PERCENT OF THEIR SPORTS WAGERING GROSS REVENUE ATTRI- BUTED TO MOBILE SPORTS WAGERING OFFERED PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE. 9. THE COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING REVENUE FUND ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW EIGHTY-FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION; ANY INTEREST AND PENALTIES IMPOSED BY THE COMMISSION RELATING TO THOSE TAXES; ALL PENALTIES LEVIED AND COLLECTED BY THE COMMISSION; AND THE APPROPRIATE FUNDS, CASH OR PRIZES FORFEITED FROM SPORTS WAGERING. THE COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR PROBLEM GAMBLING EDUCATION AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF SUBDIVISION FOUR OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW. THE COMMIS- SION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR THE COST OF REGULATION PURSUANT TO PARAGRAPH C OF SUBDIVISION FOUR OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW. THE COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED IN THE SAME FORMULA AS MARKET ORIGIN CREDITS PURSUANT TO SECTION ONE HUNDRED FIFTEEN-B OF THIS CHAPTER. THE COMMISSION SHALL REQUIRE AT LEAST MONTHLY DEPOSITS BY THE CASINO OF ANY PAYMENTS PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION, AT SUCH TIMES, UNDER SUCH CONDI- TIONS, AND IN SUCH DEPOSITORIES AS SHALL BE PRESCRIBED BY THE STATE COMPTROLLER. THE DEPOSITS SHALL BE DEPOSITED TO THE CREDIT OF THE STATE COMMERCIAL GAMING REVENUE FUND. THE COMMISSION SHALL REQUIRE A MONTHLY REPORT AND RECONCILIATION STATEMENT TO BE FILED WITH IT ON OR BEFORE THE TENTH DAY OF EACH MONTH, WITH RESPECT TO GROSS REVENUES AND DEPOSITS RECEIVED AND MADE, RESPECTIVELY, DURING THE PRECEDING MONTH. 10. THE COMMISSION MAY PERFORM AUDITS OF THE BOOKS AND RECORDS OF A CASINO, AT SUCH TIMES AND INTERVALS AS IT DEEMS APPROPRIATE, FOR THE PURPOSE OF DETERMINING THE SUFFICIENCY OF TAX PAYMENTS. IF A RETURN REQUIRED WITH REGARD TO OBLIGATIONS IMPOSED IS NOT FILED, OR IF A RETURN WHEN FILED OR IS DETERMINED BY THE COMMISSION TO BE INCORRECT OR INSUF- FICIENT WITH OR WITHOUT AN AUDIT, THE AMOUNT OF TAX DUE SHALL BE DETER- MINED BY THE COMMISSION. NOTICE OF SUCH DETERMINATION SHALL BE GIVEN TO S. 2509--B 71 THE CASINO LIABLE FOR THE PAYMENT OF THE TAX. SUCH DETERMINATION SHALL FINALLY AND IRREVOCABLY FIX THE TAX UNLESS THE CASINO AGAINST WHOM IT IS ASSESSED, WITHIN THIRTY DAYS AFTER RECEIVING NOTICE OF SUCH DETERMI- NATION, SHALL APPLY TO THE COMMISSION FOR A HEARING IN ACCORDANCE WITH THE REGULATIONS OF THE COMMISSION. 11. NOTHING IN THIS SECTION SHALL APPLY TO INTERACTIVE FANTASY SPORTS OFFERED PURSUANT TO ARTICLE FOURTEEN OF THIS CHAPTER. NOTHING IN THIS SECTION AUTHORIZES ANY ENTITY THAT CONDUCTS INTERACTIVE FANTASY SPORTS OFFERED PURSUANT TO ARTICLE FOURTEEN OF THIS CHAPTER TO CONDUCT SPORTS WAGERING UNLESS IT SEPARATELY QUALIFIES FOR, AND OBTAINS, AUTHORIZATION PURSUANT TO THIS SECTION. 12. A CASINO THAT IS ALSO LICENSED UNDER ARTICLE THREE OF THIS CHAP- TER, AND MUST MAINTAIN RACING PURSUANT TO PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED FIFTY-FIVE OF THIS ARTICLE, SHALL BE ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE RACING EVENTS IN ACCORD- ANCE WITH THEIR LICENSE UNDER ARTICLE THREE OF THIS CHAPTER. NOTWITH- STANDING SUBPARAGRAPH (II) OF PARAGRAPH C OF SUBDIVISION TWO OF SECTION ONE THOUSAND EIGHT OF THIS CHAPTER, A CASINO LOCATED IN THE CITY OF SCHENECTADY SHALL BE ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE RACING EVENTS, PROVIDED SUCH WAGERING IS CONDUCTED BY THE REGIONAL OFF- TRACK BETTING CORPORATION IN SUCH REGION AS THE CASINO IS LOCATED. ANY OTHER CASINO SHALL BE ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE RACING EVENTS, PROVIDED SUCH WAGERING IS CONDUCTED BY THE REGIONAL OFF- TRACK BETTING CORPORATION IN SUCH REGION AS THE CASINO IS LOCATED. ANY PHYSICAL LOCATION WHERE PARI-MUTUEL WAGERING ON HORSE RACING EVENTS IS OFFERED BY A CASINO AND CONDUCTED BY A REGIONAL OFF-TRACK BETTING CORPO- RATION IN ACCORDANCE WITH THIS SUBDIVISION SHALL BE DEEMED TO BE A BRANCH LOCATION OF THE REGIONAL OFF-TRACK BETTING CORPORATION IN ACCORD- ANCE WITH SECTION ONE THOUSAND EIGHT OF THIS CHAPTER. MOBILE SPORTS BETTING KIOSKS LOCATED ON THE PREMISES OF AFFILIATES IN ACCORDANCE WITH PARAGRAPH (D) OF SUBDIVISION FIVE OF SECTION THIRTEEN HUNDRED SIXTY-SEV- EN-A OF THIS TITLE SHALL NOT BE ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE RACING EVENTS. 13. A SPORTS GOVERNING BODY MAY NOTIFY THE COMMISSION THAT IT DESIRES TO RESTRICT, LIMIT, OR EXCLUDE WAGERING ON ITS SPORTING EVENTS BY PROVIDING NOTICE IN THE FORM AND MANNER AS THE COMMISSION MAY REQUIRE. UPON RECEIVING SUCH NOTICE, THE COMMISSION SHALL REVIEW THE REQUEST IN GOOD FAITH, SEEK INPUT FROM THE CASINOS ON SUCH A REQUEST, AND IF THE COMMISSION DEEMS IT APPROPRIATE, PROMULGATE REGULATIONS TO RESTRICT SUCH SPORTS WAGERING. IF THE COMMISSION DENIES A REQUEST, THE SPORTS GOVERN- ING BODY SHALL BE AFFORDED NOTICE AND THE RIGHT TO BE HEARD AND OFFER PROOF IN OPPOSITION TO SUCH DETERMINATION IN ACCORDANCE WITH THE REGU- LATIONS OF THE COMMISSION. OFFERING OR TAKING WAGERS CONTRARY TO RESTRICTIONS PROMULGATED BY THE COMMISSION IS A VIOLATION OF THIS SECTION. IN THE EVENT THAT THE REQUEST IS IN RELATION TO AN EMERGENCY SITUATION, THE EXECUTIVE DIRECTOR OF THE COMMISSION MAY TEMPORARILY PROHIBIT THE SPECIFIC WAGER IN QUESTION UNTIL THE COMMISSION HAS THE OPPORTUNITY TO ISSUE TEMPORARY REGULATIONS ADDRESSING THE ISSUE. 14. (A) THE COMMISSION SHALL DESIGNATE THE DIVISION OF THE STATE POLICE TO HAVE PRIMARY RESPONSIBILITY FOR CONDUCTING, OR ASSISTING THE COMMISSION IN CONDUCTING, INVESTIGATIONS INTO ABNORMAL BETTING ACTIVITY, MATCH FIXING, AND OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF A SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN. (B) CASINOS SHALL MAINTAIN RECORDS OF SPORTS WAGERING OPERATIONS IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION. THESE REGU- LATIONS SHALL, AT A MINIMUM, REQUIRE A CASINO TO ADOPT PROCEDURES TO S. 2509--B 72 OBTAIN PERSONALLY IDENTIFIABLE INFORMATION FROM ANY INDIVIDUAL WHO PLAC- ES ANY SINGLE WAGER IN AN AMOUNT OF TEN THOUSAND DOLLARS OR GREATER. (C) THE COMMISSION SHALL COOPERATE WITH A SPORTS GOVERNING BODY AND CASINOS TO ENSURE THE TIMELY, EFFICIENT, AND ACCURATE SHARING OF INFOR- MATION. (D) THE COMMISSION AND CASINOS SHALL COOPERATE WITH INVESTIGATIONS CONDUCTED BY SPORTS GOVERNING BODIES OR LAW ENFORCEMENT AGENCIES, INCLUDING BUT NOT LIMITED TO PROVIDING OR FACILITATING THE PROVISION OF ACCOUNT-LEVEL BETTING INFORMATION AND AUDIO OR VIDEO FILES RELATING TO PERSONS PLACING WAGERS; PROVIDED, HOWEVER, THAT THE CASINO BE REQUIRED TO SHARE ANY PERSONALLY IDENTIFIABLE INFORMATION OF AN AUTHORIZED SPORTS BETTOR WITH A SPORTS GOVERNING BODY ONLY PURSUANT TO AN ORDER TO DO SO BY THE COMMISSION OR A LAW ENFORCEMENT AGENCY OR COURT OF COMPETENT JURISDICTION. (E) CASINOS AND OPERATORS SHALL PROMPTLY REPORT TO THE COMMISSION OR THIRD PARTY INTEGRITY MONITORING PROVIDER APPROVED BY THE COMMISSION, AS APPLICABLE AND IN ACCORDANCE WITH RULES AND REGULATIONS ESTABLISHED BY THE COMMISSION, ANY INFORMATION RELATING TO: (I) CRIMINAL OR DISCIPLINARY PROCEEDINGS COMMENCED AGAINST THE CASINO IN CONNECTION WITH ITS OPERATIONS; (II) ABNORMAL BETTING ACTIVITY OR PATTERNS THAT MAY INDICATE A CONCERN WITH THE INTEGRITY OF A SPORTING EVENT OR EVENTS; (III) ANY POTENTIAL BREACH OF THE RELEVANT SPORTS GOVERNING BODY'S INTERNAL RULES AND CODES OF CONDUCT PERTAINING TO SPORTS WAGERING, AS THEY HAVE BEEN PROVIDED BY THE SPORTS GOVERNING BODY TO THE CASINO OR THE OPERATOR; (IV) ANY OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF A SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN, INCLUDING MATCH FIXING; AND (V) SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING USE OF FUNDS DERIVED FROM ILLEGAL ACTIVITY, WAGERS TO CONCEAL OR LAUNDER FUNDS DERIVED FROM ILLEGAL ACTIVITY, USING AGENTS TO PLACE WAGERS, USING CONFIDENTIAL NON-PUBLIC INFORMATION, AND USING FALSE IDENTIFICATION. THE COMMISSION SHALL ALSO PROMPTLY REPORT INFORMATION RELATING TO CONDUCT DESCRIBED IN SUBPARAGRAPHS (II), (III) AND (IV) OF THIS PARA- GRAPH TO THE RELEVANT SPORTS GOVERNING BODY. (VI) THE COMMISSION SHALL BE AUTHORIZED TO SHARE ANY INFORMATION UNDER THIS SECTION WITH ANY LAW ENFORCEMENT ENTITY, TEAM, SPORTS GOVERNING BODY, OR REGULATORY AGENCY THE DIVISION DEEMS APPROPRIATE. SUCH SHARING OF INFORMATION MAY INCLUDE, BUT IS NOT LIMITED TO, ACCOUNT LEVEL BETTING INFORMATION AND ANY AUDIO OR VIDEO FILES RELATED TO THE INVESTIGATION. PROVIDED, HOWEVER, THE CASINO OR OPERATORS MAY ONLY BE REQUIRED TO SHARE ANY PERSONALLY IDENTIFIABLE INFORMATION OF AN AUTHORIZED SPORTS BETTOR WITH A SPORTS GOVERNING BODY ONLY PURSUANT TO AN ORDER TO DO SO BY THE COMMISSION, A LAW ENFORCEMENT AGENCY OR A COURT OF COMPETENT JURISDIC- TION. (F) THE CONFIDENTIALITY OF INFORMATION SHARED BETWEEN A SPORTS GOVERN- ING BODY AND A CASINO OR OPERATOR SHALL BE MAINTAINED PURSUANT TO ALL APPLICABLE DATA PRIVACY LAWS, UNLESS DISCLOSURE IS REQUIRED BY THIS SECTION, THE COMMISSION, OTHER LAW, OR COURT ORDER. FURTHERMORE, THE INFORMATION SHARED BETWEEN A SPORTS GOVERNING BODY, A CASINO, AN OPERA- TOR OR ANY OTHER PARTY PURSUANT TO THIS ACT MAY NOT BE USED FOR BUSINESS OR MARKETING PURPOSES BY THE RECIPIENT WITHOUT THE EXPRESS WRITTEN APPROVAL OF THE PARTY THAT PROVIDES SUCH INFORMATION. (G) THE COMMISSION, BY REGULATION, MAY AUTHORIZE AND PROMULGATE ANY RULES NECESSARY TO IMPLEMENT AGREEMENTS WITH OTHER STATES, OR AUTHORIZED S. 2509--B 73 AGENCIES THEREOF TO ENABLE THE SHARING OF INFORMATION TO FACILITATE INTEGRITY MONITORING AND THE CONDUCT OF INVESTIGATIONS INTO ABNORMAL BETTING ACTIVITY, MATCH FIXING, AND OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF A SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN. (H) THE COMMISSION SHALL STUDY THE POTENTIAL FOR THE CREATION OF AN INTERSTATE DATABASE OF ALL SPORTS WAGERING INFORMATION FOR THE PURPOSE OF INTEGRITY MONITORING, AND SHALL CREATE A FINAL REPORT REGARDING ALL FINDINGS AND RECOMMENDATIONS TO BE DELIVERED UPON COMPLETION OF ALL OBJECTIVES DESCRIBED HEREIN, BUT IN NO EVENT LATER THAN MARCH FIRST, TWO THOUSAND TWENTY-TWO, TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF THE SENATE. (I) THE COMMISSION SHALL INVESTIGATE ALL REASONABLE ALLEGATIONS OF PROHIBITED CONDUCT AND REFER ANY ALLEGATIONS IT DEEMS CREDIBLE TO THE APPROPRIATE LAW ENFORCEMENT ENTITY. (J) ANY PERSON WHO IS (I) AN ATHLETE, COACH, REFEREE, DIRECTOR OF A SPORTS GOVERNING BODY OR ANY OF ITS MEMBER TEAMS, A PLAYER OR OTHER PERSONNEL MEMBER, IN OR ON ANY SPORTS EVENT OVERSEEN BY THAT PERSON'S SPORTS GOVERNING BODY, (II) HOLDING A POSITION OF AUTHORITY OR INFLUENCE SUFFICIENT TO EXERT INFLUENCE OVER THE PARTICIPANTS IN A SPORTING CONTEST, INCLUDING BUT NOT LIMITED TO COACHES, MANAGERS, HANDLERS, ATHLETIC TRAINERS, OR (III) A PERSON WITH ACCESS TO CERTAIN TYPES OF NON-PUBLIC INFORMATION ON ANY SPORTS EVENT OVERSEEN BY THAT PERSON'S SPORTS GOVERNING BODY, SHALL NOT BE PERMITTED TO PLACE A WAGER ON A SPORTS EVENT THAT IS OVERSEEN BY THAT PERSON'S SPORTS GOVERNING BODY SO LONG AS THAT PERSON HAS BEEN IDENTIFIED AS A PROHIBITED SPORTS BETTOR IN ANY LISTS PROVIDED BY THE SPORTS GOVERNING BODY TO THE COMMISSION, CASI- NOS, AND OPERATORS. ANY PERSON WHO VIOLATES THIS PARAGRAPH SHALL BE GUILTY OF A DISORDERLY PERSONS OFFENSE AND SHALL BE FINED NOT LESS THAN FIVE HUNDRED DOLLARS AND NOT MORE THAN ONE THOUSAND DOLLARS. (K) CASINOS AND OPERATORS SHALL ADOPT PROCEDURES TO PREVENT PERSONS FROM WAGERING ON SPORTS EVENTS WHO ARE PROHIBITED FROM PLACING SPORTS WAGERS. A CASINO OR OPERATOR SHALL NOT ACCEPT WAGERS FROM ANY PERSON: (I) WHOSE NAME APPEARS ON THE EXCLUSION LIST MAINTAINED BY THE COMMIS- SION AND PROVIDED TO THE CASINO OR OPERATOR; (II) WHOSE NAME APPEARS ON ANY SELF-EXCLUSION LIST MAINTAINED BY THE COMMISSION AND PROVIDED TO THE CASINO OR OPERATOR; (III) WHO IS THE OPERATOR, DIRECTOR, OFFICER, OWNER, OR EMPLOYEE OF THE OPERATOR OR CASINO OR ANY RELATIVE THEREOF LIVING IN THE SAME HOUSE- HOLD AS SUCH INDIVIDUAL; (IV) WHO HAS BEEN IDENTIFIED IN A LIST PROVIDED BY THE SPORTS GOVERN- ING BODY TO THE COMMISSION AND CASINO OR OPERATOR, THAT IDENTIFIES THE INDIVIDUAL BY SUCH PERSONALLY IDENTIFIABLE INFORMATION AS SPECIFIED BY RULES AND REGULATIONS PROMULGATED BY THE COMMISSION; (V) WHO IS AN AGENT OR PROXY FOR ANY OTHER PERSON; OR (VI) WHO HAS IDENTIFIED THEMSELVES TO THE OPERATOR AS A PROHIBITED SPORTS POOL PARTICIPANT. (L) THE COMMISSION SHALL ESTABLISH A HOTLINE OR OTHER METHOD OF COMMU- NICATION THAT ALLOWS ANY PERSON TO CONFIDENTIALLY REPORT INFORMATION ABOUT PROHIBITED CONDUCT TO THE COMMISSION. THE IDENTITY OF ANY PERSON REPORTING PROHIBITED CONDUCT TO THE COMMISSION SHALL REMAIN CONFIDENTIAL UNLESS THAT PERSON AUTHORIZES DISCLOSURE OF HIS OR HER IDENTITY OR UNTIL SUCH TIME AS THE ALLEGATION OF PROHIBITED CONDUCT IS REFERRED TO LAW ENFORCEMENT. S. 2509--B 74 15. (A) CASINOS SHALL USE WHATEVER DATA SOURCE THEY DEEM APPROPRIATE FOR DETERMINING THE RESULT OF SPORTS WAGERING INVOLVING TIER ONE SPORTS WAGERS. (B) CASINOS SHALL ONLY USE OFFICIAL LEAGUE DATA IN ALL SPORTS WAGERING INVOLVING TIER TWO SPORTS WAGERS, IF THE RELEVANT SPORTS GOVERNING BODY IS HEADQUARTERED IN THE UNITED STATES, POSSESSES A FEED OF OFFICIAL LEAGUE DATA, AND MAKES SUCH FEED AVAILABLE FOR PURCHASE BY THE CASINOS ON COMMERCIALLY REASONABLE TERMS AS DETERMINED BY THE COMMISSION. (C) A SPORTS GOVERNING BODY MAY NOTIFY THE COMMISSION THAT IT DESIRES TO REQUIRE CASINOS TO USE OFFICIAL LEAGUE DATA IN SPORTS WAGERING INVOLVING SPECIFIC TIER THREE SPORTS WAGERS BY PROVIDING NOTICE IN THE FORM AND MANNER AS THE COMMISSION MAY REQUIRE. UPON RECEIVING SUCH NOTICE, THE COMMISSION SHALL REVIEW THE REQUEST, SEEK INPUT FROM THE CASINOS ON SUCH A REQUEST, AND IF THE COMMISSION DEEMS IT APPROPRIATE, PROMULGATE REGULATIONS TO REQUIRE CASINOS TO USE OFFICIAL LEAGUE DATA ON SPORTS WAGERING INVOLVING SUCH TIER THREE SPORTS WAGERS IF THE RELEVANT SPORTS GOVERNING BODY POSSESSES A FEED OF OFFICIAL LEAGUE DATA, AND MAKES SUCH FEED AVAILABLE FOR PURCHASE BY THE CASINOS ON COMMERCIALLY REASONABLE TERMS AS DETERMINED BY THE COMMISSION. (D) WHEN DETERMINING WHETHER OR NOT A SUPPLIER OF OFFICIAL LEAGUE DATA IS OFFERING COMMERCIALLY REASONABLE TERMS, THE COMMISSION SHALL CONSIDER THE AMOUNT CHARGED BY THE SUPPLIER OF OFFICIAL LEAGUE DATA TO GAMING OPERATORS IN OTHER JURISDICTIONS. THIS INFORMATION SHALL BE PROVIDED TO THE COMMISSION BY THE SUPPLIER OF OFFICIAL LEAGUE DATA UPON REQUEST OF THE COMMISSION. ANY ENTITY PROVIDING DATA TO A CASINO FOR THE PURPOSE OF TIER TWO SPORTS WAGERS SHALL OBTAIN A LICENSE AS A CASINO VENDOR ENTER- PRISE AND SUCH LICENSE SHALL BE ISSUED PURSUANT TO THE PROVISIONS OF SECTION THIRTEEN HUNDRED TWENTY-SEVEN OF THIS ARTICLE AND IN ACCORDANCE WITH THE REGULATIONS PROMULGATED BY THE COMMISSION. (E) NO CASINO SHALL ENTER INTO AN AGREEMENT WITH A SPORTS GOVERNING BODY OR AN ENTITY EXPRESSLY AUTHORIZED TO DISTRIBUTE OFFICIAL LEAGUE DATA TO BE THE EXCLUSIVE RECIPIENT OF THEIR OFFICIAL LEAGUE DATA. (F) THE COMMISSION SHALL PROMULGATE REGULATIONS TO ALLOW AN AUTHORIZED SPORTS BETTOR TO FILE A COMPLAINT ALLEGING AN UNDERPAYMENT OR NON-PAY- MENT OF A WINNING SPORTS WAGER. ANY SUCH REGULATIONS SHALL PROVIDE THAT THE COMMISSION UTILIZE THE STATISTICS, RESULTS, OUTCOMES, AND OTHER DATA RELATING TO A SPORTING EVENT THAT HAVE BEEN OBTAINED FROM THE RELEVANT SPORTS GOVERNING BODY IN DETERMINING THE VALIDITY OF SUCH CLAIM. 16. A CASINO SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR. 17. SPORTS WAGERING CONDUCTED PURSUANT TO THE PROVISIONS OF THIS SECTION IS HEREBY AUTHORIZED. 18. THE COMMISSION SHALL PROMULGATE RULES THAT REQUIRE AN OPERATOR TO IMPLEMENT RESPONSIBLE GAMING PROGRAMS THAT INCLUDE COMPREHENSIVE EMPLOY- EE TRAININGS ON RESPONDING TO CIRCUMSTANCES IN WHICH INDIVIDUALS PRESENT SIGNS OF A GAMBLING ADDICTION AND REQUIREMENTS FOR CASINOS AND OPERATORS UNDER SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE TO ASSESS, PREVENT, AND ADDRESS PROBLEM GAMING BY USERS UNDER THE AGE OF THIRTY. THE COMMISSION SHALL ESTABLISH A HOTLINE OR OTHER METHOD OF COMMUNI- CATION THAT WILL ALLOW ANY PERSON TO CONFIDENTIALLY REPORT INFORMATION ABOUT PROHIBITED CONDUCT TO THE COMMISSION. THE COMMISSION SHALL PROMUL- GATE RULES GOVERNING THE INVESTIGATION AND RESOLUTION OF A CHARGE OF ANY PERSON PURPORTED TO HAVE ENGAGED IN PROHIBITED CONDUCT. 19. THE CONDUCT OF SPORTS WAGERING IN VIOLATION OF THIS SECTION IS PROHIBITED. S. 2509--B 75 20. (A) IN ADDITION TO ANY CRIMINAL PENALTIES PROVIDED FOR UNDER ARTI- CLE TWO HUNDRED TWENTY-FIVE OF THE PENAL LAW, ANY PERSON, FIRM, CORPO- RATION, ASSOCIATION, AGENT, OR EMPLOYEE, WHO IS NOT AUTHORIZED TO OFFER SPORTS WAGERING UNDER THIS SECTION OR SECTION THIRTEEN HUNDRED SIXTY- SEVEN-A OF THIS TITLE, AND WHO KNOWINGLY OFFERS OR ATTEMPTS TO OFFER SPORTS WAGERING OR MOBILE SPORTS WAGERING IN NEW YORK SHALL BE LIABLE FOR A CIVIL PENALTY OF NOT MORE THAN ONE HUNDRED THOUSAND DOLLARS FOR EACH VIOLATION, NOT TO EXCEED FIVE MILLION DOLLARS FOR VIOLATIONS ARIS- ING OUT OF THE SAME TRANSACTION OR OCCURRENCE, WHICH SHALL ACCRUE TO THE STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION. (B) ANY PERSON, FIRM, CORPORATION, ASSOCIATION, AGENT, OR EMPLOYEE WHO KNOWINGLY VIOLATES ANY PROCEDURE IMPLEMENTED UNDER THIS SECTION, OR SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE, SHALL BE LIABLE FOR A CIVIL PENALTY OF NOT MORE THAN FIVE THOUSAND DOLLARS FOR EACH VIOLATION, NOT TO EXCEED FIFTY THOUSAND DOLLARS FOR VIOLATIONS ARISING OUT OF THE SAME TRANSACTION OR OCCURRENCE, WHICH SHALL ACCRUE TO THE STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION. § 2. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 1367-a to read as follows: § 1367-A. MOBILE SPORTS WAGERING. 1. (A) EXCEPT AS PROVIDED IN THIS SUBDIVISION, THE TERMS IN THIS SECTION SHALL HAVE THE SAME MEANINGS AS SUCH TERMS ARE DEFINED IN SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE. (B) "OPERATOR" FOR PURPOSES OF THIS SECTION, MEANS A CASINO WHICH HAS ELECTED TO OFFER A MOBILE SPORTS WAGERING PLATFORM, AN INDIAN TRIBE (OR AGENT OF SUCH INDIAN TRIBE) THAT HAS ENTERED INTO A TRIBAL-STATE GAMING COMPACT IN ACCORDANCE WITH THE INDIAN GAMING REGULATORY ACT, 25 U.S.C. 2710, THAT IS IN EFFECT AND HAS BEEN RATIFIED BY THE STATE AND HAS ENTERED INTO A SPORTS WAGERING AGREEMENT TO OPERATE WITH THE COMMISSION PURSUANT TO THIS SECTION, OR THE AGENT OF SUCH LICENSED GAMING FACILITY OR SUCH INDIAN TRIBE. 2. (A) NO CASINO SHALL ADMINISTER, MANAGE, OR OTHERWISE MAKE AVAILABLE A MOBILE SPORTS WAGERING PLATFORM TO PERSONS LOCATED IN NEW YORK STATE UNLESS REGISTERED WITH THE COMMISSION PURSUANT TO THIS SECTION. A CASINO MAY USE UP TO TWO MOBILE SPORTS WAGERING PLATFORMS AND BRANDS PROVIDED THAT SUCH PLATFORMS AND BRANDS HAVE BEEN REVIEWED AND APPROVED BY THE COMMISSION. A CASINO MAY CONTRACT WITH UP TO TWO INDEPENDENT OPERATORS TO PROVIDE ITS MOBILE SPORTS WAGERING PLATFORMS. AN INDEPENDENT OPERATOR MAY DISPLAY ITS BRAND ON THE PLATFORM IN ADDITION TO THE CASINO'S BRAND. (B) REGISTRATIONS ISSUED BY THE COMMISSION SHALL REMAIN IN EFFECT FOR FIVE YEARS. THE COMMISSION SHALL ESTABLISH A PROCESS FOR RENEWAL. (C) THE COMMISSION SHALL PUBLISH A LIST OF ALL OPERATORS AND CASINOS REGISTERED TO OFFER MOBILE SPORTS WAGERING IN NEW YORK STATE PURSUANT TO THIS SECTION ON THE COMMISSION'S WEBSITE FOR PUBLIC USE. 3. IN THE EVENT THAT A CASINO CONTRACTS WITH AN OPERATOR TO PROVIDE ITS MOBILE SPORTS WAGERING PLATFORM AND BRAND, SUCH OPERATOR SHALL OBTAIN A LICENSE AS A CASINO VENDOR ENTERPRISE PRIOR TO THE EXECUTION OF ANY SUCH CONTRACT, AND SUCH LICENSE SHALL BE ISSUED PURSUANT TO THE PROVISIONS OF SECTION THIRTEEN HUNDRED TWENTY-SEVEN OF THIS ARTICLE AND IN ACCORDANCE WITH THE REGULATIONS PROMULGATED BY THE COMMISSION. 3-A. (A) AS A CONDITION OF REGISTRATION AS AN OPERATOR, EACH CASINO SHALL AGREE, UPON REQUEST OF AN INDIAN TRIBE THAT HAS NOT ENTERED INTO AN AGREEMENT FOR MOBILE SPORTS WAGERING WITH ANOTHER CASINO, TO PROVIDE A SITE FOR A MOBILE SPORTS WAGERING SERVER AND RELATED EQUIPMENT FOR THE INDIAN TRIBE AS DIRECTED BY THE COMMISSION, AT NO COST TO THE INDIAN S. 2509--B 76 TRIBE EXCEPT THE DIRECT AND ACTUAL COST OF HOSTING THE SERVER OR OTHER EQUIPMENT USED BY THE INDIAN TRIBE AS DETERMINED BY THE COMMISSION. (B) AS A CONDITION OF REGISTRATION AS AN OPERATOR IN NEW YORK STATE, AN INDIAN TRIBE SHALL ENTER INTO AN AGREEMENT WITH THE COMMISSION WITH RESPECT TO MOBILE SPORTS WAGERING: (I) TO FOLLOW THE REQUIREMENTS IMPOSED ON CASINOS AND OPERATORS UNDER THIS SECTION AND SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE WITH RESPECT TO THE INDIAN TRIBE'S MOBILE SPORTS WAGERING; TO ADHERE TO THE REGULATIONS PROMULGATED BY THE COMMISSION PURSUANT TO THIS SECTION WITH RESPECT TO MOBILE SPORTS WAGERING, AND TO SUBMIT TO THE COMMISSION'S ENFORCEMENT OF THIS SECTION AND SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE AND REGULATIONS PROMULGATED THEREUNDER WITH RESPECT TO MOBILE SPORTS WAGERING, INCLUDING BY WAIVING TRIBAL SOVEREIGN IMMUNITY FOR THE SOLE AND LIMITED PURPOSE OF SUCH ENFORCEMENT. NOTHING HEREIN SHALL BE CONSTRUED AS REQUIRING AN INDIAN TRIBE'S AGREEMENT TO ADHERE TO THE REQUIREMENTS OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE FOR GAMING CONDUCTED ON TRIBAL LANDS AS A CONDITION OF OFFERING MOBILE SPORTS WAGERING UNDER THIS SECTION; (II) TO WAIVE THE INDIAN TRIBE'S EXCLUSIVE GEOGRAPHIC RIGHT TO OFFER AND CONDUCT MOBILE SPORTS WAGERING, BUT NOT OTHERWISE; (III) TO REMIT PAYMENT TO THE STATE EQUAL TO TAX ON SPORTS WAGERING REVENUE IMPOSED UNDER SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE WITH RESPECT TO MOBILE SPORTS WAGERING; (IV) NOT TO OFFER OR TO CONDUCT MOBILE GAMING OTHER THAN MOBILE SPORTS WAGERING PURSUANT TO THIS SECTION UNLESS SUCH MOBILE GAMING IS OTHERWISE AUTHORIZED BY STATE OR FEDERAL LAW; AND (V) TO LOCATE THE SERVER OR OTHER EQUIPMENT USED BY THE INDIAN TRIBE OR ITS AGENT TO ACCEPT MOBILE SPORTS WAGERING AT A CASINO AS DEFINED IN PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE THAT HAS APPLIED FOR AND IS ELIGIBLE TO REGISTER AS AN OPERATOR OF MOBILE SPORTS WAGERING PURSUANT TO THIS SECTION AND TO PAY THE ACTUAL COST OF HOSTING THE SERVER OR OTHER EQUIPMENT AS DETERMINED BY THE COMMISSION. (C) ALL AGREEMENTS ENTERED INTO CASINOS AND INDIAN TRIBES WITH RESPECT TO HOSTING MOBILE SPORTS WAGERING PLATFORMS FOR AN INDIAN TRIBE: (I) MUST BE APPROVED BY THE COMMISSION PRIOR TO TAKING EFFECT AND BEFORE REGISTRATION OF THE CASINO OR INDIAN TRIBE AS AN OPERATOR UNDER THIS SECTION; (II) MUST PROVIDE THAT THE INDIAN TRIBE MAY, AT ITS SOLE DISCRETION, TERMINATE THE AGREEMENT AND ALL COMMITMENTS, UNDERTAKINGS AND WAIVERS MADE BY THE INDIAN TRIBE THEREUNDER, EXCEPT THAT THE INDIAN TRIBE'S WAIVER OF ITS EXCLUSIVE GEOGRAPHIC RIGHT TO OFFER AND CONDUCT MOBILE SPORTS WAGERING SHALL SURVIVE THE TERMINATION OF THE AGREEMENT; (III) SHALL BE LIMITED IN APPLICABILITY SOLELY TO THE INDIAN TRIBE'S OPERATION OF MOBILE SPORTS BETTING AND SHALL NOT EXTEND TO ANY OTHER OPERATION OR ACTIVITY OF THE INDIAN TRIBE; AND (IV) SHALL NOT CREATE ANY RIGHTS OR PRIVILEGES TO ANY THIRD PARTY WHO IS NOT A PARTY TO THE AGREEMENT, EXCEPT THAT THE COMMISSION SHALL HAVE THE POWER TO ENFORCE THE AGREEMENT INCLUDING BY REVOKING OR SUSPENDING THE REGISTRATION OF A PARTY THAT FAILS TO COMPLY WITH ITS OBLIGATIONS UNDER THE AGREEMENT. (D) NO MOBILE SPORTS WAGERING MAY BE CONDUCTED WITHIN AN INDIAN TRIBE'S EXCLUSIVE GEOGRAPHIC AREA UNLESS THE INDIAN TRIBE WITH EXCLUSIVE GEOGRAPHIC RIGHT TO THAT AREA IS REGISTERED AS AN OPERATOR UNDER THIS SECTION. OPERATORS SHALL USE GEO-LOCATION AND GEO-FENCING TECHNOLOGY TO ENSURE THAT MOBILE SPORTS WAGERING IS NOT AVAILABLE TO PERSONS WHO ARE S. 2509--B 77 PHYSICALLY LOCATED IN AN INDIAN TRIBE'S EXCLUSIVE GEOGRAPHIC AREA, UNLESS THE INDIAN TRIBE WITH EXCLUSIVE GEOGRAPHIC RIGHT TO THAT AREA IS REGISTERED AS AN OPERATOR UNDER THIS SECTION. 3-B. (A) THE COMMISSION SHALL PROMULGATE REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS SECTION, INCLUDING: (I) THE DEVELOPMENT OF THE INITIAL FORM OF THE APPLICATION FOR REGIS- TRATION; (II) RESPONSIBLE PROTECTIONS WITH REGARD TO COMPULSIVE PLAY SAFEGUARDS FOR FAIR PLAY; (III) REQUIRING THAT OPERATORS ADOPT CONTROLS TO PREVENT MINORS FROM CREATING ACCOUNTS AND PLACING WAGERS; (IV) REQUIRING THAT OPERATORS ADOPT CONTROLS TO MAINTAIN THE EFFICIEN- CY OF SELF-EXCLUSION LIMITS; AND (V) REQUIRING THAT OPERATORS UTILIZE COMMERCIALLY REASONABLE TECHNO- LOGICAL MEANS OF VERIFYING ACCOUNT HOLDERS' IDENTITIES. (B) THE COMMISSION SHALL PRESCRIBE THE INITIAL FORM OF THE APPLICATION FOR REGISTRATION, FOR OPERATORS, WHICH SHALL REQUIRE, BUT NOT BE LIMITED TO: (I) THE FULL NAME AND PRINCIPAL ADDRESS OF THE OPERATOR; (II) IF A CORPORATION, THE NAME OF THE STATE IN WHICH INCORPORATED AND THE FULL NAMES AND ADDRESSES OF ANY PARTNER, OFFICER, DIRECTOR, SHARE- HOLDER HOLDING TEN PERCENT OR MORE EQUITY, AND ULTIMATE EQUITABLE OWNERS; (III) IF A BUSINESS ENTITY OTHER THAN A CORPORATION, THE FULL NAMES AND ADDRESSES OF THE PRINCIPALS, PARTNERS, SHAREHOLDERS HOLDING FIVE PERCENT OR MORE EQUITY, AND ULTIMATE EQUITABLE OWNERS; (IV) WHETHER SUCH CORPORATION OR ENTITY FILES INFORMATION AND REPORTS WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY SECTION THIRTEEN OF THE SECURITIES EXCHANGE ACT OF 1934, 15 U.S.C. §§ 78A-78KK; OR WHETHER THE SECURITIES OF THE CORPORATION OR ENTITY ARE REGULARLY TRADED ON AN ESTABLISHED SECURITIES MARKET IN THE UNITED STATES; (V) THE TYPE AND ESTIMATED NUMBER OF CONTESTS TO BE CONDUCTED ANNUAL- LY; AND (VI) A STATEMENT OF THE ASSETS AND LIABILITIES OF THE OPERATOR. (C) THE COMMISSION MAY REQUIRE THE FULL NAMES AND ADDRESSES OF THE OFFICERS AND DIRECTORS OF ANY CREDITOR OF THE OPERATOR, AND OF THOSE STOCKHOLDERS WHO HOLD MORE THAN TEN PERCENT OF THE STOCK OF THE CREDI- TOR. (D) UPON RECEIPT OF AN APPLICATION FOR REGISTRATION FOR EACH INDIVID- UAL LISTED ON SUCH APPLICATION AS AN OFFICER OR DIRECTOR, THE COMMISSION SHALL SUBMIT TO THE DIVISION OF CRIMINAL JUSTICE SERVICES A SET OF FING- ERPRINTS, AND THE DIVISION OF CRIMINAL JUSTICE SERVICES PROCESSING FEE IMPOSED PURSUANT TO SUBDIVISION EIGHT-A OF SECTION EIGHT HUNDRED THIR- TY-SEVEN OF THE EXECUTIVE LAW AND ANY FEE IMPOSED BY THE FEDERAL BUREAU OF INVESTIGATION. UPON RECEIPT OF THE FINGERPRINTS, THE DIVISION OF CRIMINAL JUSTICE SERVICES SHALL PROMPTLY FORWARD A SET OF THE INDIVID- UAL'S FINGERPRINTS TO THE FEDERAL BUREAU OF INVESTIGATION FOR THE PURPOSE OF A NATIONWIDE CRIMINAL HISTORY RECORD CHECK TO DETERMINE WHETHER SUCH INDIVIDUAL HAS BEEN CONVICTED OF A CRIMINAL OFFENSE IN ANY STATE OTHER THAN NEW YORK OR IN A FEDERAL JURISDICTION. THE DIVISION OF CRIMINAL JUSTICE SERVICES SHALL PROMPTLY PROVIDE THE REQUESTED CRIMINAL HISTORY INFORMATION TO THE COMMISSION. FOR THE PURPOSES OF THIS SECTION, THE TERM "CRIMINAL HISTORY INFORMATION" SHALL MEAN A RECORD OF ALL CONVICTIONS OF CRIMES AND ANY PENDING CRIMINAL CHARGES MAINTAINED ON AN INDIVIDUAL BY THE DIVISION OF CRIMINAL JUSTICE SERVICES AND THE FEDERAL S. 2509--B 78 BUREAU OF INVESTIGATION. ALL SUCH CRIMINAL HISTORY INFORMATION SENT TO THE COMMISSION PURSUANT TO THIS SUBDIVISION SHALL BE CONFIDENTIAL AND SHALL NOT BE PUBLISHED OR IN ANY WAY DISCLOSED TO PERSONS OTHER THAN THE COMMISSION, UNLESS OTHERWISE AUTHORIZED BY LAW. (E) UPON RECEIPT OF CRIMINAL HISTORY INFORMATION PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVISION, THE COMMISSION SHALL MAKE A DETERMINATION TO APPROVE OR DENY AN APPLICATION FOR REGISTRATION; PROVIDED, HOWEVER, THAT BEFORE MAKING A DETERMINATION ON SUCH APPLICATION, THE COMMISSION SHALL PROVIDE THE SUBJECT OF THE RECORD WITH A COPY OF SUCH CRIMINAL HISTORY INFORMATION AND A COPY OF ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW AND INFORM SUCH PROSPECTIVE APPLICANT SEEKING TO BE CREDENTIALED OF HIS OR HER RIGHT TO SEEK CORRECTION OF ANY INCORRECT INFORMATION CONTAINED IN SUCH CRIMINAL HISTORY INFORMATION PURSUANT TO THE REGULATIONS AND PROCEDURES ESTABLISHED BY THE DIVISION OF CRIMINAL JUSTICE SERVICES. THE COMMISSION SHALL DENY ANY APPLICATION FOR REGISTRATION, OR SUSPEND, REFUSE TO RENEW, OR REVOKE ANY EXISTING REGISTRATION ISSUED PURSUANT TO THIS ARTICLE, UPON THE FINDING THAT THE OPERATOR OR REGISTRANT, OR ANY PARTNER, OFFICER, DIRECTOR, OR SHAREHOLDER: (I) HAS KNOWINGLY MADE A FALSE STATEMENT OF MATERIAL FACT OR HAS DELIBERATELY FAILED TO DISCLOSE ANY INFORMATION REQUIRED BY THE COMMIS- SION; (II) HAS HAD A GAMING REGISTRATION OR LICENSE DENIED, SUSPENDED, OR REVOKED IN ANY OTHER STATE OR COUNTRY FOR JUST CAUSE; (III) HAS LEGALLY DEFAULTED IN THE PAYMENT OF ANY OBLIGATION OR DEBT DUE TO ANY STATE OR POLITICAL SUBDIVISION; OR (IV) HAS AT ANY TIME KNOWINGLY FAILED TO COMPLY WITH ANY REQUIREMENT OUTLINED IN THIS SECTION, ANY OTHER PROVISION OF THIS ARTICLE, ANY REGU- LATIONS PROMULGATED BY THE COMMISSION OR ANY ADDITIONAL REQUIREMENTS OF THE COMMISSION. (F) ALL DETERMINATIONS TO APPROVE OR DENY AN APPLICATION PURSUANT TO THIS ARTICLE SHALL BE PERFORMED IN A MANNER CONSISTENT WITH SUBDIVISION SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND ARTI- CLE TWENTY-THREE-A OF THE CORRECTION LAW. WHEN THE COMMISSION DENIES AN APPLICATION, THE OPERATOR SHALL BE AFFORDED NOTICE AND THE RIGHT TO BE HEARD AND OFFER PROOF IN OPPOSITION TO SUCH DETERMINATION IN ACCORDANCE WITH THE REGULATIONS OF THE COMMISSION. 4. (A) AS A CONDITION OF REGISTRATION IN NEW YORK STATE, EACH OPERATOR SHALL IMPLEMENT THE FOLLOWING MEASURES: (I) LIMIT EACH AUTHORIZED SPORTS BETTOR TO ONE ACTIVE AND CONTINUOUSLY USED ACCOUNT ON THEIR PLATFORM, AND PREVENT ANYONE THEY KNOW, OR SHOULD HAVE KNOWN TO BE A PROHIBITED SPORTS BETTOR FROM MAINTAINING ACCOUNTS OR PARTICIPATING IN ANY SPORTS WAGERING OFFERED BY SUCH OPERATOR; (II) ADOPT APPROPRIATE SAFEGUARDS TO ENSURE, TO A REASONABLE DEGREE OF CERTAINTY, THAT AUTHORIZED SPORTS BETTORS ARE PHYSICALLY LOCATED WITHIN THE STATE WHEN ENGAGING IN MOBILE SPORTS BETTING; (III) PROHIBIT MINORS FROM PARTICIPATING IN ANY SPORTS WAGERING, WHICH INCLUDES: (1) IF AN OPERATOR BECOMES OR IS MADE AWARE THAT A MINOR HAS CREATED AN ACCOUNT, OR ACCESSED THE ACCOUNT OF ANOTHER, SUCH OPERATOR SHALL PROMPTLY, WITHIN NO MORE THAN TWO BUSINESS DAYS, REFUND ANY DEPOSIT RECEIVED FROM THE MINOR, WHETHER OR NOT THE MINOR HAS ENGAGED IN OR ATTEMPTED TO ENGAGE IN SPORTS WAGERING; PROVIDED, HOWEVER, THAT ANY REFUND MAY BE OFFSET BY ANY PRIZES ALREADY AWARDED; (2) EACH OPERATOR SHALL PROVIDE PARENTAL CONTROL PROCEDURES TO ALLOW PARENTS OR GUARDIANS TO EXCLUDE MINORS FROM ACCESS TO ANY SPORTS WAGER- S. 2509--B 79 ING OR PLATFORM. SUCH PROCEDURES SHALL INCLUDE A TOLL-FREE NUMBER TO CALL FOR HELP IN ESTABLISHING SUCH PARENTAL CONTROLS; AND (3) EACH OPERATOR SHALL TAKE APPROPRIATE STEPS TO CONFIRM THAT AN INDIVIDUAL OPENING AN ACCOUNT IS NOT A MINOR; (IV) WHEN REFERENCING THE CHANCES OR LIKELIHOOD OF WINNING IN ADVER- TISEMENTS OR UPON PLACEMENT OF A SPORTS WAGER, MAKE CLEAR AND CONSPICU- OUS STATEMENTS THAT ARE NOT INACCURATE OR MISLEADING CONCERNING THE CHANCES OF WINNING AND THE NUMBER OF WINNERS; (V) ENABLE AUTHORIZED SPORTS BETTORS TO EXCLUDE THEMSELVES FROM SPORTS WAGERING AND TAKE REASONABLE STEPS TO PREVENT SUCH BETTORS FROM ENGAGING IN SPORTS WAGERING FROM WHICH THEY HAVE EXCLUDED THEMSELVES; (VI) PERMIT ANY AUTHORIZED SPORTS BETTOR TO PERMANENTLY CLOSE AN ACCOUNT REGISTERED TO SUCH BETTOR, ON ANY AND ALL PLATFORMS SUPPORTED BY SUCH OPERATOR, AT ANY TIME AND FOR ANY REASON; (VII) OFFER INTRODUCTORY PROCEDURES FOR AUTHORIZED SPORTS BETTORS, THAT SHALL BE PROMINENTLY DISPLAYED ON THE MAIN PAGE OF SUCH OPERATOR PLATFORM, THAT EXPLAIN SPORTS WAGERING; (VIII) IMPLEMENT MEASURES TO PROTECT THE PRIVACY AND ONLINE SECURITY OF AUTHORIZED SPORTS BETTORS AND THEIR ACCOUNTS; (IX) OFFER ALL AUTHORIZED SPORTS BETTORS ACCESS TO HIS OR HER ACCOUNT HISTORY AND ACCOUNT DETAILS; (X) ENSURE AUTHORIZED SPORTS BETTORS' FUNDS ARE PROTECTED UPON DEPOSIT AND SEGREGATED FROM THE OPERATING FUNDS OF SUCH OPERATOR AND OTHERWISE PROTECTED FROM CORPORATE INSOLVENCY, FINANCIAL RISK, OR CRIMINAL OR CIVIL ACTIONS AGAINST SUCH OPERATOR; (XI) LIST ON EACH WEBSITE, IN A PROMINENT PLACE, INFORMATION CONCERN- ING ASSISTANCE FOR COMPULSIVE PLAY IN NEW YORK STATE, INCLUDING A TOLL- FREE NUMBER DIRECTING CALLERS TO REPUTABLE RESOURCES CONTAINING FURTHER INFORMATION, WHICH SHALL BE FREE OF CHARGE; (XII) ENSURE NO SPORTS WAGERING SHALL BE BASED ON A PROHIBITED SPORTS EVENT; (XIII) PERMIT ACCOUNT HOLDERS TO ESTABLISH SELF-EXCLUSION GAMING LIMITS ON A DAILY, WEEKLY, AND MONTHLY BASIS THAT ENABLE THE ACCOUNT HOLDER TO IDENTIFY THE MAXIMUM AMOUNT OF MONEY AN ACCOUNT HOLDER MAY DEPOSIT DURING SUCH PERIOD OF TIME; (XIV) WHEN AN ACCOUNT HOLDER'S LIFETIME DEPOSITS EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS, THE OPERATOR SHALL PREVENT ANY WAGERING UNTIL THE PATRON IMMEDIATELY ACKNOWLEDGES, AND ACKNOWLEDGES EACH YEAR THEREAFTER, THAT THE ACCOUNT HOLDER HAS MET THE DEPOSIT THRESHOLD AND MAY ELECT TO ESTABLISH RESPONSIBLE GAMING LIMITS OR CLOSE THE ACCOUNT, AND THE ACCOUNT HOLDER HAS RECEIVED DISCLOSURES FROM THE OPERATOR CONCERNING PROBLEM GAMBLING RESOURCES; (XV) MAINTAIN A PUBLICLY ACCESSIBLE INTERNET PAGE DEDICATED TO RESPON- SIBLE PLAY, A LINK TO WHICH MUST APPEAR ON THE OPERATOR'S WEBSITE AND IN ANY MOBILE APPLICATION OR ELECTRONIC PLATFORM ON WHICH A BETTOR MAY PLACE WAGERS. THE RESPONSIBLE PLAY PAGE SHALL INCLUDE: A STATEMENT OF THE OPERATOR'S POLICY AND COMMITMENT TO RESPONSIBLE GAMING; INFORMATION REGARDING, OR LINKS TO INFORMATION REGARDING, THE RISKS ASSOCIATED WITH GAMBLING AND THE POTENTIAL SIGNS OF PROBLEM GAMING; THE AVAILABILITY OF SELF-IMPOSED RESPONSIBLE GAINING LIMITS; A LINK TO A PROBLEM GAMING WEBPAGE MAINTAINED BY THE OFFICE OF ADDICTION SERVICES AND SUPPORTS; AND SUCH OTHER INFORMATION OR STATEMENTS AS THE COMMISSION MAY REQUIRE BY RULE; AND (XVI) SUBMIT ANNUALLY A PROBLEM GAMING PLAN TO THE COMMISSION THAT INCLUDES: THE OBJECTIVES OF AND TIMETABLES FOR IMPLEMENTING THE PLAN; IDENTIFICATION OF THE PERSONS RESPONSIBLE FOR IMPLEMENTING AND MAINTAIN- S. 2509--B 80 ING THE PLAN; PROCEDURES FOR IDENTIFYING USERS WITH SUSPECTED OR KNOWN PROBLEM GAMING BEHAVIOR; PROCEDURES FOR PROVIDING INFORMATION TO USERS CONCERNING PROBLEM GAMING IDENTIFICATION AND RESOURCES; PROCEDURES TO PREVENT GAMING BY MINORS AND SELF-EXCLUDED PERSONS; AND SUCH OTHER PROB- LEM GAMING INFORMATION AS THE COMMISSION MAY REQUIRE BY RULE. (B) OPERATORS SHALL NOT DIRECTLY OR INDIRECTLY OPERATE, PROMOTE, OR ADVERTISE ANY PLATFORM OR SPORTS WAGERING TO PERSONS LOCATED IN NEW YORK STATE UNLESS REGISTERED PURSUANT TO THIS ARTICLE. (C) OPERATORS SHALL NOT OFFER ANY SPORTS WAGERING BASED ON ANY PROHIB- ITED SPORTS EVENT. (D) OPERATORS SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR. (E) ADVERTISEMENTS FOR CONTESTS AND PRIZES OFFERED BY AN OPERATOR SHALL NOT TARGET PROHIBITED SPORTS BETTORS, MINORS, OR SELF-EXCLUDED PERSONS. (F) OPERATORS SHALL PROHIBIT THE USE OF THIRD-PARTY SCRIPTS OR SCRIPT- ING PROGRAMS FOR ANY EXCHANGE WAGERING CONTEST AND ENSURE THAT MEASURES ARE IN PLACE TO DETER, DETECT AND, TO THE EXTENT REASONABLY POSSIBLE, PREVENT CHEATING, INCLUDING COLLUSION, AND THE USE OF CHEATING DEVICES, INCLUDING USE OF SOFTWARE PROGRAMS THAT SUBMIT EXCHANGE WAGERING SPORTS WAGERS UNLESS OTHERWISE APPROVED BY THE COMMISSION. (G) OPERATORS SHALL DEVELOP AND PROMINENTLY DISPLAY PROCEDURES ON THE MAIN PAGE OF SUCH OPERATOR'S PLATFORM FOR THE FILING OF A COMPLAINT BY AN AUTHORIZED SPORTS BETTOR AGAINST SUCH OPERATOR. AN INITIAL RESPONSE SHALL BE GIVEN BY SUCH OPERATOR TO SUCH BETTOR FILING THE COMPLAINT WITHIN FORTY-EIGHT HOURS. A COMPLETE RESPONSE SHALL BE GIVEN BY SUCH OPERATOR TO SUCH BETTOR FILING THE COMPLAINT WITHIN TEN BUSINESS DAYS. AN AUTHORIZED SPORTS BETTOR MAY FILE A COMPLAINT ALLEGING A VIOLATION OF THE PROVISIONS OF THIS ARTICLE WITH THE COMMISSION. (H) OPERATORS SHALL MAINTAIN RECORDS OF ALL ACCOUNTS BELONGING TO AUTHORIZED SPORTS BETTORS AND RETAIN SUCH RECORDS OF ALL TRANSACTIONS IN SUCH ACCOUNTS FOR THE PRECEDING FIVE YEARS. (I) THE SERVER OR OTHER EQUIPMENT WHICH IS USED BY AN OPERATOR TO ACCEPT MOBILE SPORTS WAGERING SHALL BE LOCATED IN THE LICENSED GAMING FACILITY IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION. (J) ALL MOBILE SPORTS WAGERING INITIATED IN THIS STATE SHALL BE DEEMED TO TAKE PLACE AT THE LICENSED GAMING FACILITY WHERE THE SERVER OR OTHER EQUIPMENT USED BY AN OPERATOR TO ACCEPT MOBILE SPORTS WAGERING IS LOCATED, REGARDLESS OF THE AUTHORIZED SPORTS BETTOR'S PHYSICAL LOCATION WITHIN THIS STATE. (K) ALL MOBILE SPORTS WAGERING SHALL BE CONDUCTED IN COMPLIANCE WITH THIS SECTION AND SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE. (L) PERMIT AN INDIAN TRIBE PURSUANT TO PARAGRAPH (A) OF SUBDIVISION THREE-A OF THIS SECTION TO PLACE AT THE LICENSED GAMING FACILITY THE SERVER OR OTHER EQUIPMENT BY WHICH THE INDIAN TRIBE MAY ACCEPT MOBILE SPORTS WAGERING, AND TO MAKE COMMERCIALLY REASONABLE ACCOMMODATIONS AS MAY BE NECESSARY TO PLACE AND OPERATE THE INDIAN TRIBE'S SERVER OR OTHER EQUIPMENT. 5. (A) SUBJECT TO REGULATIONS PROMULGATED BY THE COMMISSION, CASINOS MAY ENTER INTO AGREEMENTS WITH OPERATORS OR AFFILIATES TO ALLOW FOR AUTHORIZED BETTORS TO SIGN UP TO CREATE AND FUND ACCOUNTS ON MOBILE SPORTS WAGERING PLATFORMS OFFERED BY THE CASINO. (B) AUTHORIZED SPORTS BETTORS MAY SIGN UP TO CREATE THEIR ACCOUNT ON A MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO, OR AN AFFILIATE, OR THROUGH AN OPERATORS INTERNET WEBSITE ACCESSED VIA A MOBILE DEVICE OR COMPUTER, OR MOBILE DEVICE APPLICATIONS. S. 2509--B 81 (C) AUTHORIZED SPORTS BETTORS MAY DEPOSIT AND WITHDRAW FUNDS IN THEIR ACCOUNT ON A MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO, OR AN AFFILIATE, ELECTRONICALLY RECOGNIZED PAYMENT METHODS, OR VIA ANY OTHER MEANS APPROVED BY THE COMMISSION. (D) IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION, CASINOS MAY ENTER INTO AGREEMENTS WITH AFFILIATES TO LOCATE SELF-SERVICE MOBILE SPORTS BETTING KIOSKS, WHICH ARE OWNED, OPERATED AND MAINTAINED BY THE CASINO, AND CONNECTED VIA THE INTERNET TO THE CASINO, UPON THE PREMISES OF THE AFFILIATE. AUTHORIZED SPORTS BETTORS MAY PLACE ACCOUNT WAGERS, AND PLACE AND REDEEM NON-ACCOUNT CASH WAGERS, AT SUCH KIOSKS. (E) ALL AGREEMENTS ENTERED INTO BETWEEN CASINOS AND AFFILIATES IN RELATION TO THE PROVISIONS OF THIS SECTION SHALL BE APPROVED BY THE COMMISSION PRIOR TO TAKING EFFECT AND SHALL INCLUDE A PLAN FOR THE TIME- LY PAYMENT OF LIABILITIES DUE TO THE AFFILIATE UNDER THE AGREEMENT; PROVIDED, HOWEVER, THAT THE COMMISSION SHALL NOT APPROVE ANY SUCH AGREE- MENT BETWEEN A CASINO AND A RACETRACK LICENSED PURSUANT TO THIS CHAPTER OR AN OPERATOR OF VIDEO LOTTERY GAMING AT AQUEDUCT LICENSED PURSUANT TO SECTION ONE THOUSAND SIX HUNDRED SEVENTEEN-A OF THE TAX LAW, UNTIL TWELVE MONTHS AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH; AND PROVIDED, FURTHER, THAT THE COMMISSION SHALL NOT APPROVE ANY SUCH AGREEMENT BETWEEN A CASINO AND A PROFESSIONAL SPORTS STADIUM OR ARENA, UNTIL TWEN- TY MONTHS AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH. 6. THE COMMISSION SHALL ANNUALLY CAUSE A REPORT TO BE PREPARED AND DISTRIBUTED TO THE GOVERNOR AND THE LEGISLATURE ON THE IMPACT OF MOBILE SPORTS WAGERING ON PROBLEM GAMBLERS IN NEW YORK. THE REPORT SHALL INCLUDE AN ASSESSMENT OF PROBLEM GAMING AMONG PERSONS UNDER THE AGE OF THIRTY. THE REPORT SHALL BE PREPARED BY A NON-GOVERNMENTAL ORGANIZATION OR ENTITY WITH EXPERTISE IN SERVING THE NEEDS OF PERSONS WITH GAMBLING ADDICTIONS. THE REPORT SHALL BE PREPARED AND DISTRIBUTED UNDER THE SUPERVISION OF AND IN COORDINATION WITH THE COMMISSION. THE COSTS ASSO- CIATED WITH THE PREPARATION AND DISTRIBUTION OF THE REPORT SHALL BE BORNE BY OPERATORS AND THE COMMISSION SHALL BE AUTHORIZED TO ASSESS A FEE AGAINST OPERATORS FOR THESE PURPOSES. THE COMMISSION SHALL ALSO REPORT PERIODICALLY TO THE GOVERNOR AND THE LEGISLATURE ON THE EFFEC- TIVENESS OF THE STATUTORY AND REGULATORY CONTROLS IN PLACE TO ENSURE THE INTEGRITY OF MOBILE SPORTS WAGERING OPERATIONS. § 3. Section 104 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 24 to read as follows: 24. TO REGULATE SPORTS WAGERING IN NEW YORK STATE. § 4. Subdivision 1 of section 1351 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: 1. (A) For a gaming facility in zone two, there is hereby imposed a tax on gross gaming revenues. The amount of such tax imposed shall be as follows[; provided, however, should a licensee have agreed within its application to supplement the tax with a binding supplemental fee payment exceeding the aforementioned tax rate, such tax and supplemental fee shall apply for a gaming facility]: [(a)] (1) in region two, forty-five percent of gross gaming revenue from slot machines and ten percent of gross gaming revenue from all other sources. [(b)] (2) in region one, thirty-nine percent of gross gaming revenue from slot machines and ten percent of gross gaming revenue from all other sources. S. 2509--B 82 [(c)] (3) in region five, thirty-seven percent of gross gaming revenue from slot machines and ten percent of gross gaming revenue from all other sources. (B) (1) NOTWITHSTANDING THE RATES IN PARAGRAPH (A) OF THIS SUBDIVI- SION, A GAMING FACILITY MAY PETITION THE COMMISSION TO LOWER THE TAX RATE APPLICABLE TO ITS SLOT MACHINES TO NO LOWER THAN EIGHTY PERCENT OF THE CURRENT TAX RATE APPLICABLE TO SUCH SLOT MACHINES. THE COMMISSION SHALL EVALUATE THE PETITION USING THE FOLLOWING CRITERIA: (I) THE ABILITY OF THE LICENSEE TO SATISFY THE LICENSE CRITERION OF FINANCIAL STABILITY ABSENT THE TAX RATE REDUCTION; (II) A COMPLETE EXAMINATION OF ALL FINANCIAL PROJECTIONS, AS WELL AS GAMING REVENUES GENERATED FOR THE PRIOR ANNUAL PERIOD; (III) THE LICENSEE'S INTENDED USE OF THE FUNDS RESULTING FROM A TAX ADJUSTMENT; (IV) THE INABILITY OF THE OPERATOR TO REMAIN COMPETITIVE UNDER THE CURRENT TAX STRUCTURE; (V) POSITIONS ADVANCED BY OTHER GAMING OPERATORS IN THE STATE IN RESPONSE TO THE PETITION; (VI) THE IMPACT ON THE COMPETITIVE LANDSCAPE; (VII) OTHER ECONOMIC FACTORS SUCH AS EMPLOYMENT AND THE POTENTIAL IMPACT UPON OTHER BUSINESSES IN THE REGION; AND (VIII) THE PUBLIC INTEREST TO BE SERVED BY A TAX ADJUSTMENT, INCLUDING THE IMPACT UPON THE STATE IN THE EVENT THE OPERATOR IS UNABLE TO REMAIN FINANCIALLY VIABLE. (2) THE COMMISSION SHALL REPORT THEIR RECOMMENDATION TO THE DIRECTOR OF THE DIVISION OF BUDGET WHO WILL MAKE A FINAL DETERMINATION, PROVIDED HOWEVER, THAT PRIOR TO THE FINAL DETERMINATION BY THE DIRECTOR OF THE DIVISION OF BUDGET, THE GAMING COMMISSION AND THE DIRECTOR OF THE DIVI- SION OF BUDGET SHALL NOTIFY IN WRITING THE CHAIRS OF THE SENATE FINANCE COMMITTEE AND ASSEMBLY WAYS AND MEANS COMMITTEE DETAILING THE RECOMMEN- DATION MADE BY THE GAMING COMMISSION AND THE PROPOSED FINAL DETERMI- NATION BY SUCH DIRECTOR, RESPECTIVELY. THE LEGISLATURE SHALL THEN HAVE TEN DAYS FOLLOWING THE RECEIPT OF THE WRITTEN NOTIFICATION FROM THE DIRECTOR OF THE DIVISION OF BUDGET TO EITHER PREPARE ITS OWN PLAN, WHICH MAY TAKE INTO CONSIDERATION THE RECOMMENDATION MADE BY THE GAMING COMMISSION, AND WHICH SHALL BE ADOPTED BY CONCURRENT RESOLUTION PASSED BY BOTH HOUSES, OR IF AFTER TEN DAYS THE LEGISLATURE FAILS TO ADOPT ITS OWN PLAN, THE FINAL DETERMINATION PROPOSED BY THE DIRECTOR OF THE DIVISION OF BUDGET WILL GO INTO EFFECT AUTOMATICALLY. § 5. Severability clause. If any provision of this act or application thereof shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of the act, but shall be confined in its opera- tion to the provision thereof directly involved in the controversy in which the judgment shall have been rendered. § 6. This act shall take effect immediately; provided, however, that section four of this act shall take effect sixty days after mobile sports wagering commences and shall expire and be deemed repealed one year after such date. PART Z Intentionally Omitted PART AA S. 2509--B 83 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] COMMIS- SION; or § 2. This act shall take effect immediately. PART BB Section 1. Paragraphs 4 and 5 of subdivision a of section 1612 of the tax law, as amended by chapter 174 of the laws of 2013, are amended to read as follows: (4) fifty percent of the total amount for which tickets have been sold for games known as: (A) the "Daily Numbers Game" or "Win 4", discrete games in which the participants select no more than three or four of their own numbers to match with three or four numbers drawn by the [division] COMMISSION for purposes of determining winners of such games, (B) "Pick 10", [offered no more than once daily,] in which participants select from a specified field of numbers a subset of ten numbers to match against a subset of numbers to be drawn by the [division] COMMIS- SION from such field of numbers for the purpose of determining winners of such game, (C) "Take 5", [offered no more than once daily,] in which participants select from a specified field of numbers a subset of five numbers to match against a subset of five numbers to be drawn by the [division] COMMISSION from such field of numbers for purposes of deter- mining winners of such game; or (5) forty percent of the total amount for which tickets have been sold for: (A) "Lotto", [offered no more than once daily,] a discrete game in which all participants select a specific subset of numbers to match a specific subset of numbers, as prescribed by rules and regulations promulgated and adopted by the [division] COMMISSION, from a larger specific field of numbers, as also prescribed by such rules and regu- S. 2509--B 84 lations and (B) with the exception of the game described in paragraph one of this subdivision, such other state-operated lottery games [which] THAT the [division] COMMISSION may introduce, [offered no more than once daily,] commencing on or after forty-five days following the official publication of the rules and regulations for such game. § 2. This act shall take effect immediately. PART CC Section 1. Sections 1368, 1369, 1370 and 1371 of the racing, pari-mu- tuel wagering and breeding law are renumbered sections 130, 131, 132 and 133. § 2. Title 9 of article 13 of the racing, pari-mutuel wagering and breeding law is REPEALED. § 3. Section 130 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 130. [Establishment of the] THE office of gaming inspector general. [There is hereby created within the commission the office of gaming inspector general. The head of the office shall be the gaming inspector general who shall be appointed by the governor by and with the advice and consent of the senate. The inspector general shall serve at the pleasure of the governor. The inspector general shall report directly to the governor. The person appointed as inspector general shall, upon his or her appointment, have not less than ten years professional experience in law, investigation, or auditing. The inspector general shall be compensated within the limits of funds available therefor, provided, however, such salary shall be no less than the salaries of certain state officers holding the positions indicated in paragraph (a) of subdivision one of section one hundred sixty-nine of the executive law.] THE DUTIES AND RESPONSIBILITIES OF THE FORMER OFFICE OF THE GAMING INSPECTOR GENER- AL ARE TRANSFERRED TO AND ENCOMPASSED BY THE OFFICE OF THE STATE INSPEC- TOR GENERAL AS EXPRESSLY REFERENCED IN ARTICLE FOUR-A OF THE EXECUTIVE LAW. § 4. Section 131 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 131. [State gaming] GAMING inspector general; functions and duties. The [state] gaming inspector general shall have the following duties and responsibilities: 1. receive and investigate complaints from any source, or upon his or her own initiative, concerning allegations of corruption, fraud, crimi- nal activity, conflicts of interest or abuse in the commission; 2. [inform the commission members of such allegations and the progress of investigations related thereto, unless special circumstances require confidentiality; 3.] determine with respect to such allegations whether disciplinary action, civil or criminal prosecution, or further investigation by an appropriate federal, state or local agency is warranted, and to assist in such investigations; [4.] 3. prepare and release to the public written reports of such investigations, as appropriate and to the extent permitted by law, subject to redaction to protect the confidentiality of witnesses. The release of all or portions of such reports may be deferred to protect the confidentiality of ongoing investigations; S. 2509--B 85 [5.] 4. review and examine periodically the policies and procedures of the commission with regard to the prevention and detection of corruption, fraud, criminal activity, conflicts of interest or abuse; [6.] 5. recommend remedial action to prevent or eliminate corruption, fraud, criminal activity, conflicts of interest or abuse in the commis- sion; and [7.] 6. establish programs for training commission officers and employees [regarding] IN REGARD TO the prevention and elimination of corruption, fraud, criminal activity, conflicts of interest or abuse in the commission. § 5. Section 132 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 132. Powers. The [state] gaming inspector general shall have the power to: 1. subpoena and enforce the attendance of witnesses; 2. administer oaths or affirmations and examine witnesses under oath; 3. require the production of any books and papers deemed relevant or material to any investigation, examination or review; 4. notwithstanding any law to the contrary, examine and copy or remove documents or records of any kind prepared, maintained or held by the commission; 5. require any commission officer or employee to answer questions concerning any matter related to the performance of his or her official duties. NO STATEMENT OR OTHER EVIDENCE DERIVED THEREFROM MAY BE USED AGAINST SUCH OFFICER OR EMPLOYEE IN ANY SUBSEQUENT CRIMINAL PROSECUTION OTHER THAN FOR PERJURY OR CONTEMPT ARISING FROM SUCH TESTIMONY. The refusal of any officer or employee to answer questions shall be cause for removal from office or employment or other appropriate penalty; 6. monitor the implementation by the commission of any recommendations made by the state inspector general; and 7. perform any other functions that are necessary or appropriate to fulfill the duties and responsibilities of the office. § 6. Section 133 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 133. Responsibilities of the commission and its officers and employ- ees. 1. Every commission officer or employee shall report promptly to the [state] gaming inspector general any information concerning corruption, fraud, criminal activity, conflicts of interest or abuse by another state officer or employee relating to his or her office or employment, or by a person having business dealings with the commission relating to those dealings. The knowing failure of any officer or employee to so report shall be cause for removal from office or employ- ment or other appropriate penalty under this article. Any officer or employee who acts pursuant to this subdivision by reporting to the [state] gaming inspector general or other appropriate law enforcement official improper governmental action as defined in section seventy- five-b of the civil service law shall not be subject to dismissal, discipline or other adverse personnel action. 2. The commission chair shall advise the governor within ninety days of the issuance of a report by the [state] gaming inspector general as to the remedial action that the commission has taken in response to any recommendation for such action contained in such report. § 7. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 134 to read as follows: S. 2509--B 86 § 134. TRANSFER OF EMPLOYEES. UPON THE TRANSFER OF FUNCTIONS, POWERS, DUTIES AND OBLIGATIONS TO THE OFFICE OF THE STATE INSPECTOR GENERAL PURSUANT TO THIS ARTICLE, PROVISION SHALL BE MADE FOR THE TRANSFER OF ALL GAMING INSPECTOR GENERAL EMPLOYEES FROM WITHIN THE GAMING COMMISSION INTO THE OFFICE OF THE STATE INSPECTOR GENERAL. EMPLOYEES SO TRANSFERRED SHALL BE TRANSFERRED WITHOUT FURTHER EXAM- INATION OR QUALIFICATION TO THE SAME OR SIMILAR TITLES, SHALL REMAIN IN THE SAME COLLECTIVE BARGAINING UNITS AND SHALL RETAIN THEIR RESPECTIVE CIVIL SERVICE CLASSIFICATIONS, STATUS AND RIGHTS PURSUANT TO THEIR COLLECTIVE BARGAINING UNITS AND COLLECTIVE BARGAINING AGREE- MENTS. § 8. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 135 to read as follows: § 135. TRANSFER OF RECORDS. ALL BOOKS, PAPERS, RECORDS AND PROPERTY OF THE GAMING INSPECTOR GENERAL WITHIN THE GAMING COMMISSION WITH RESPECT TO THE FUNCTIONS, POWERS, DUTIES AND OBLIGATIONS TRANSFERRED BY SECTION ONE HUNDRED THIRTY OF THIS ARTICLE, ARE TO BE DELIVERED TO THE APPROPRIATE SUCCESSOR OFFICES WITHIN THE OFFICE OF THE STATE INSPECTOR GENERAL, AT SUCH PLACE AND TIME, AND IN SUCH MANNER AS THE OFFICE OF THE STATE INSPECTOR GENERAL MAY REQUIRE. § 9. This act shall take effect on the sixtieth day after it shall have become a law. PART DD 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 Z of chapter 59 of the laws of 2020, is amended to read as follows: (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as may be prescribed by the commission and shall contain such information or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand S. 2509--B 87 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-one] TWENTY-TWO; 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-one] TWENTY-TWO; and (iv) no in-home simulcasting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as separately amended by chapter 243 and section 2 of part Z of chapter 59 of the laws of 2020, 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-one] TWENTY-TWO, the amount used exclu- sively for purses to be awarded at races conducted by such receiving track shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twenty-first, nineteen hundred ninety-five to the total commissions that would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. § 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as separately amended by section 3 of part Z of chapter 59 and chapter 243 of the laws of 2020, 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-one] TWENTY-TWO and on any day regard- less 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-one] TWENTY-TWO. On any day on which a franchised corporation has not scheduled a racing program but a S. 2509--B 88 thoroughbred racing corporation located within the state is conducting racing, each off-track betting corporation branch office and each simul- casting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's repre- sentative horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state or foreign country subject to the following provisions: § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part Z of chapter 59 of the laws of 2020, 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-one] TWENTY-TWO. This section shall supersede all inconsistent provisions of this chapter. § 5. The opening paragraph of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by section 5 of part Z of chapter 59 of the laws of 2020, 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-one] TWENTY-TWO. 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 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 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 Z of chapter 59 of the laws of 2020, 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 [twenty] TWENTY-ONE, when a franchised corporation is conducting a race meeting within the state at Saratoga Race Course, every off-track betting corporation branch office and every simulcasting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's representative horsemen's organization as approved by the commission), one thousand eight or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state, provided that such facility shall accept wagers on races run at all in-state thoroughbred tracks which are conducting racing programs subject to the following provisions; provided, however, no such written agreement shall be required of a franchised corporation licensed in accordance with section one thousand seven of this article. S. 2509--B 89 § 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 Z of chapter 59 of the laws of 2020, 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, [2021] 2022; 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 Z of chapter 59 of the laws of 2020, 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, [2021] 2022; 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 separately amended by section 9 of part Z of chapter 59 and chapter 243 of the laws of 2020, 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 are presented for payment before April first of the year following the year of their purchase, less an amount that shall be established and retained by such franchised corporation of between twelve to seventeen percent of the total deposits in pools resulting from on-track regular bets, and fourteen to twenty- one percent of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five percent of the total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six percent 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 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, S. 2509--B 90 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 percent of regular bets and four percent of multiple bets plus twenty percent of the breaks; for exotic wagers seven and one-half percent plus twenty percent of the breaks, and for super exotic bets seven and one-half percent plus fifty percent of the breaks. For the period April first, two thousand one through December thirty- first, two thousand [twenty-one] TWENTY-TWO, such tax on all wagers shall be one and six-tenths percent, plus, in each such period, twenty percent of the breaks. Payment to the New York state thoroughbred breed- ing and development fund by such franchised corporation shall be one- half of one percent of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three percent of super exotic bets and for the period April first, two thousand one through December thirty-first, two thousand [twenty-one] TWENTY-TWO, such payment shall be seven-tenths of one percent of regular, multiple and exotic pools. § 10. This act shall take effect immediately. PART EE Section 1. Section 19 of part W-1 of chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, as amended by section 1 of part U of chapter 60 of the laws of 2016, is amended to read as follows: § 19. This act shall take effect immediately; provided, however, that sections one through thirteen of this act shall take effect September 1, 2006 and shall be deemed repealed on September 1, [2021] 2026 and such repeal shall apply in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law, and shall apply to sales made, fuel compounded or manufactured, and uses occurring on or after such date, and with respect to sections seven through eleven of this act, in accordance with applicable transitional provisions of sections 1106 and 1217 of the tax law; provided, however, that the commissioner of taxation and finance shall be authorized on and after the date this act shall have become a law to adopt and amend any rules or regulations and to take any steps necessary to implement the provisions of this act; provided further that sections fourteen through sixteen of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2006. § 2. This act shall take effect immediately. PART FF Section 1. Subsection (e) of section 42 of the tax law, as added by section 1 of part RR of chapter 60 of the laws of 2016, is amended to read as follows: (e) For taxable years beginning on or after January first, two thou- sand seventeen and before January first, two thousand eighteen, the amount of the credit allowed under this section shall be equal to the S. 2509--B 91 product of the total number of eligible farm employees and two hundred fifty dollars. For taxable years beginning on or after January first, two thousand eighteen and before January first, two thousand nineteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and three hundred dollars. For taxable years beginning on or after January first, two thousand nineteen and before January first, two thousand twenty, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and five hundred dollars. For taxable years beginning on or after January first, two thousand twenty and before January first, two thousand twenty-one, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and four hundred dollars. For taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand [twenty-two] TWENTY-FIVE, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and six hundred dollars. § 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit is amended to read as follows: § 5. This act shall take effect immediately and shall apply only to taxable years beginning on or after January 1, 2017 and before January 1, [2022] 2025. § 3. This act shall take effect immediately. PART GG Section 1. Subdivision 4 of section 22 of the public housing law, as amended by section 5 of part H of chapter 60 of the laws of 2016, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [four] TWELVE million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. § 2. Subdivision 4 of section 22 of the public housing law, as amended by section one of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twelve] TWENTY million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. § 3. Subdivision 4 of section 22 of the public housing law, as amended by section two of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twenty] TWENTY-EIGHT million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. S. 2509--B 92 § 4. Subdivision 4 of section 22 of the public housing law, as amended by section three of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twenty-eight] THIRTY-SIX million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 5. Subdivision 4 of section 22 of the public housing law, as amended by section four of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [thirty-six] FORTY-FOUR million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 6. This act shall take effect immediately; provided, however, section two of this act shall take effect April 1, 2022; section three of this act shall take effect April 1, 2023; section four of this act shall take effect April 1, 2024; and section five of this act shall take effect April 1, 2025. PART HH Section 1. Section 5 of part HH of chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, as amended by section 1 of part III of chapter 59 of the laws of 2018, is amended to read as follows: § 5. This act shall take effect immediately, provided that section two of this act shall take effect on January 1, 2015, and shall apply to taxable years beginning on or after January 1, 2015, with respect to "qualified production expenditures" and "transportation expenditures" paid or incurred on or after such effective date, regardless of whether the production of the qualified musical or theatrical production commenced before such date, provided further that this act shall expire and be deemed repealed [8 years after such date] JANUARY 1, 2026. § 2. Paragraph 1 of subdivision (e) of section 24-a of the tax law, as added by section 1 of part HH of chapter 59 of the laws of 2014, is amended to read as follows: (1) The aggregate amount of tax credits allowed under this section, subdivision forty-seven of section two hundred ten-B and subsection (u) of section six hundred six of this chapter in any calendar year shall be [four] EIGHT million dollars. Such aggregate amount of credits shall be allocated by the department of economic development among taxpayers in order of priority based upon the date of filing an application for allo- cation of musical and theatrical production credit with such department. If the total amount of allocated credits applied for in any particular year exceeds the aggregate amount of tax credits allowed for such year under this section, such excess shall be treated as having been applied for on the first day of the subsequent year. § 3. This act shall take effect immediately, provided, however, that the amendments to section 24-a of the tax law made by section two of this act shall not affect the expiration and repeal of such section and shall be deemed to expire and repeal therewith. S. 2509--B 93 PART II 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 B of chapter 59 of the laws of 2020, 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-two] 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-one] TWENTY-TWO; and § 2. Subdivision 29 of section 210-B of the tax law is amended by adding a new paragraph (f) to read as follows: (F) REPORTING REQUIREMENT. THE DEPARTMENT SHALL ISSUE AN ANNUAL REPORT ON THE UTILIZATION OF THIS CREDIT. SUCH REPORT SHALL INCLUDE THE NUMBER OF TAXPAYERS THAT CLAIMED THE CREDIT, THE NUMBER OF VETERANS AND DISA- BLED VETERANS FOR WHOM A CREDIT WAS CLAIMED, AND INFORMATION ON THE WAGE RATE OF SUCH VETERANS AND DISABLED VETERANS. THE REPORT SHALL ALSO INCLUDE INFORMATION ON STEPS TAKEN BY THE DEPARTMENT TO INFORM EMPLOYERS OF THE EXISTENCE OF THIS CREDIT AND OF ANY OTHER ACTIONS TAKEN TO INCREASE AWARENESS OF THE AVAILABILITY OF THIS CREDIT. THE DEPARTMENT SHALL ISSUE THE FIRST REPORT ON OCTOBER FIRST, TWO THOUSAND TWENTY-ONE USING THE MOST RECENT APPLICABLE TAX DATA. THE DEPARTMENT SHALL ISSUE REPORTS FOR SUBSEQUENT TAX YEARS ANNUALLY ON OCTOBER FIRST. THE REPORT SHALL BE POSTED PUBLICLY ON THE DEPARTMENT'S WEBSITE AND COPIES SHALL BE DELIVERED TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, AND THE TEMPO- RARY PRESIDENT OF THE SENATE. § 3. 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 B of chapter 59 of the laws of 2020, 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-two] 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-one] TWENTY-TWO; and S. 2509--B 94 § 4. Paragraph 4 of subsection (a-2) of section 606 of the tax law, as added by section 3 of part AA of chapter 59 of the laws of 2013, is amended and a new paragraph 6 is added to read as follows: (4) Amount of credit. The amount of the credit shall be ten percent of the total amount of wages paid to [he] THE qualified veteran during the veteran's first full year of employment. Provided, however, that, if the qualified veteran is a disabled veteran, as defined in paragraph (b) of subdivision one of section eighty-five of the civil service law, the amount of the credit shall be fifteen percent of the total amount of wages paid to the qualified veteran during the veteran's first full year of employment. The credit allowed pursuant to this subsection shall not exceed in any taxable year, five thousand dollars for any qualified veteran and fifteen thousand dollars for any qualified veteran who is a disabled veteran. (6) REPORTING REQUIREMENT. THE DEPARTMENT SHALL ISSUE AN ANNUAL REPORT ON THE UTILIZATION OF THIS CREDIT. SUCH REPORT SHALL INCLUDE THE NUMBER OF TAXPAYERS THAT CLAIMED THE CREDIT, THE NUMBER OF VETERANS AND DISA- BLED VETERANS FOR WHOM A CREDIT WAS CLAIMED, AND INFORMATION ON THE WAGE RATE OF SUCH VETERANS AND DISABLED VETERANS. THE REPORT SHALL ALSO INCLUDE INFORMATION ON STEPS TAKEN BY THE DEPARTMENT TO INFORM EMPLOYERS OF THE EXISTENCE OF THIS CREDIT AND OF ANY OTHER ACTIONS TAKEN TO INCREASE AWARENESS OF THE AVAILABILITY OF THIS CREDIT. THE DEPARTMENT SHALL ISSUE THE FIRST REPORT ON OCTOBER FIRST, TWO THOUSAND TWENTY-ONE USING THE MOST RECENT APPLICABLE TAX DATA. THE DEPARTMENT SHALL ISSUE REPORTS FOR SUBSEQUENT TAX YEARS ANNUALLY ON OCTOBER FIRST. THE REPORT SHALL BE POSTED PUBLICLY ON THE DEPARTMENT'S WEBSITE AND COPIES SHALL BE DELIVERED TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, AND THE TEMPO- RARY PRESIDENT OF THE SENATE. § 5. 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 B of chapter 59 of the laws of 2020, 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-two] 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-one] TWENTY-TWO; and § 6. Subdivision (g-1) of section 1511 of the tax law is amended by adding a new paragraph 6 to read as follows: (6) REPORTING REQUIREMENT. THE DEPARTMENT SHALL ISSUE AN ANNUAL REPORT ON THE UTILIZATION OF THIS CREDIT. SUCH REPORT SHALL INCLUDE THE NUMBER OF TAXPAYERS THAT CLAIMED THE CREDIT, THE NUMBER OF VETERANS AND DISA- BLED VETERANS FOR WHOM A CREDIT WAS CLAIMED, AND INFORMATION ON THE WAGE RATE OF SUCH VETERANS AND DISABLED VETERANS. THE REPORT SHALL ALSO INCLUDE INFORMATION ON STEPS TAKEN BY THE DEPARTMENT TO INFORM EMPLOYERS OF THE EXISTENCE OF THIS CREDIT AND OF ANY OTHER ACTIONS TAKEN TO INCREASE AWARENESS OF THE AVAILABILITY OF THIS CREDIT. THE DEPARTMENT S. 2509--B 95 SHALL ISSUE THE FIRST REPORT ON OCTOBER FIRST, TWO THOUSAND TWENTY-ONE USING THE MOST RECENT APPLICABLE TAX DATA. THE DEPARTMENT SHALL ISSUE REPORTS FOR SUBSEQUENT TAX YEARS ANNUALLY ON OCTOBER FIRST. THE REPORT SHALL BE POSTED PUBLICLY ON THE DEPARTMENT'S WEBSITE AND COPIES SHALL BE DELIVERED TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, AND THE TEMPO- RARY PRESIDENT OF THE SENATE. § 7. This act shall take effect immediately. PART JJ Section 1. Section 12 of part V of chapter 61 of the laws of 2011, amending the economic development law, the tax law and the real property tax law, relating to establishing the economic transformation and facil- ity redevelopment program and providing tax benefits under that program, is amended to read as follows: § 12. This act shall take effect immediately and shall expire and be deemed repealed December 31, [2021] 2026. § 2. Paragraph (a) of subdivision 11 of section 400 of the economic development law, as amended by section 1 of part GG of chapter 58 of the laws of 2020, is amended to read as follows: (a) a correctional facility, as defined in paragraph (a) of subdivi- sion four of section two of the correction law, that has been selected by the governor of the state of New York for closure after April first, two thousand eleven but no later than March thirty-first, two thousand [twenty-one] TWENTY-SIX; or § 3. This act shall take effect immediately; provided, however, that the amendments to section 400 of the economic development law made by section two of this act shall not affect the repeal of such section and shall be deemed repealed therewith. PART KK Section 1. The opening paragraph of section 1310 of the general busi- ness law, as added by section 2 of part X of chapter 55 of the laws of 2018, is amended to read as follows: Except as otherwise provided in this article, the program shall be implemented, and enrollment of employees shall begin[, within twenty- four months after the effective date of this article] NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE. The provisions of this section shall be in force after the board opens the program for enroll- ment. § 2. Section 1315 of the general business law, as added by section 2 of part X of chapter 55 of the laws of 2018, is amended to read as follows: § 1315. Delayed implementation. The board may delay the implementation of the program an additional twelve months beyond the [twenty-four months] DATE established in section thirteen hundred ten of this article if the board determines that further delay is necessary to address legal, financial or other programmatic concerns impacting the viability of the program. The board shall provide reasonable notice of such delay to the governor, the commissioner, the speaker of the assembly, the temporary president of the senate, the chair of the assembly ways and means committee, the chair of the senate finance committee, the chair of the assembly labor committee, and the chair of the senate labor commit- tee. § 3. This act shall take effect immediately. S. 2509--B 96 PART LL Section 1. For the period from and after March 1, 2020 until such time as the licensee and the video lottery gaming facility that are each subject to subdivision 2 of section 1355 of the racing, pari-mutuel wagering and breeding law, as added by the Upstate New York Gaming Economic Development Act of 2013, as amended, have each been continuous- ly operating without any restrictions related to Covid-19 for at least three full and consecutive calendar months, the payments to the relevant horsemen and breeders required by subdivision 2 of section 1355 of the racing, pari-mutuel wagering and breeding law, as added by the Upstate New York Gaming Economic Development Act of 2013, as amended, shall not accrue and shall be permanently waived and forgiven. The accrual and obligation to make payments under such subdivision 2 of such section 1355 shall recommence at such time as the licensee and the video lottery gaming facility that are each subject to such subdivision 2 of such section 1355 have each been continuously operating without any restrictions related to Covid-19 for at least three full and consecutive calendar months. Payments to the relevant horsemen and breeders for the period beginning January 1, 2020 through February 28, 2020 shall be payable in six equal monthly installments of $106,407 per month over a six-month period beginning with the first month after the licensee has been continuously operating without any restrictions related to Covid-19 for at least three full and consecutive calendar months. § 2. This act shall take effect immediately. PART MM Section 1. Subdivision 14 of section 1300 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by chapter 175 of the laws of 2013, is amended and a new subdivision 15 is added to read as follows: 14. As thoroughly and pervasively regulated by the state, four upstate casinos will work to the betterment of all New York[.]; 15. PURSUANT TO ARTICLE ONE, SECTION NINE OF THE NEW YORK STATE CONSTITUTION, THE LEGISLATURE IS PERMITTED TO AUTHORIZE UP TO SEVEN COMMERCIAL CASINOS WITHIN THE STATE. AS OF THE YEAR TWO THOUSAND TWEN- TY-ONE, FOUR HAVE BEEN AUTHORIZED IN UPSTATE NEW YORK, LEAVING THE DOWN- STATE MARKET UNADDRESSED. NEIGHBORING STATES HAVE AUTHORIZED FORMS OF GAMING THAT ARE SIPHONING NEW YORK STATE DOLLARS AND TRAVEL INDUSTRY- DERIVED REVENUE TO OTHER OUT-OF-STATE MARKETS. SIMULTANEOUSLY, AS A RESULT OF THE COVID-19 EMERGENCY, STATE AND LOCAL REVENUES HAVE BEEN DEVASTATED. THIS IS PARTICULARLY ALARMING GIVEN THE POTENTIAL EFFECT ON THE STATE'S EDUCATION FUNDING. THE LEGISLATURE RECOGNIZES THAT DOWNSTATE GAMING RESORTS HAVE THE POTENTIAL TO SIGNIFICANTLY BOOST REVENUES FOR EDUCATION SUPPORT, CREATE THOUSANDS OF QUALITY JOBS, AND SUPPORT THE LOCAL ECONOMY DOWNSTATE. AS SUCH, THE LEGISLATURE HEREBY AUTHORIZES AN ADDITIONAL THREE CASINO LICENSES DOWNSTATE TO INCREASE SUPPORT FOR EDUCATION ACROSS THE STATE. § 2. Subparagraph 2 of paragraph (a) of subdivision 2 of section 1310 of the racing, pari-mutuel wagering and breeding law, as added by chap- ter 174 of the laws of 2013, is amended to read as follows: (2) Region two shall consist of Bronx, Kings, New York, Queens and Richmond counties[. No gaming facility shall be authorized in region two]; and S. 2509--B 97 § 3. Subdivision 1 of section 1311 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 175 of the laws of 2013, is amended to read as follows: 1. (A) The commission is authorized to award up to four gaming facili- ty licenses, in regions one, two and five of zone two, AND THREE ADDI- TIONAL GAMING FACILITY LICENSES IN ZONE ONE. The duration of such initial license shall be ten years. The term of renewal shall be deter- mined by the commission. The commission may award a second license to a qualified applicant in no more than a single region. [The commission is not empowered to award any license in zone one. No gaming facilities are authorized under this article for the city of New York or any other portion of zone one.] (B) As a condition of licensure, licensees are required to commence gaming operations no more than twenty-four months following license award. No additional licenses may be awarded during the twenty-four month period, nor for an additional sixty months following the end of the twenty-four month period. Should the state legislatively authorize additional gaming facility licenses within these periods, licensees shall have the right to recover the license fee paid pursuant to section one thousand three hundred six of this article. (C) This right shall be incorporated into the license itself, vest upon the opening of a gaming facility in zone one or in the same region as the licensee and entitle the holder of such license to bring an action in the court of claims to recover the license fee paid pursuant to section one thousand three hundred fifteen of this article in the event that any gaming facility license in excess of the number author- ized by this section as of the effective date of this section is awarded within seven years from the date that the initial gaming facility license is awarded. This right to recover any such fee shall be propor- tionate to the length of the respective period that is still remaining upon the vesting of such right. (D) Additionally, the right to bring an action in the court of claims to recover the fee paid to the state on the twenty-fourth day of Septem- ber, two thousand ten, by the operator of a video lottery gaming facili- ty in a city of more than one million shall vest with such operator upon the opening of any gaming facility licensed by the commission in zone one within seven years from the date that the initial gaming facility license is awarded; provided however that the amount recoverable shall be limited to the pro rata amount of the time remaining until the end of the seven year exclusivity period, proportionate to the period of time between the date of opening of the video lottery facility until the conclusion of the seven year period. (E) NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO THE CONTRARY, FOR ANY VIDEO LOTTERY GAMING FACILITY AUTHORIZED BY PARAGRAPH FOUR OF SUBDI- VISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE TAX LAW THAT CONVERTS TO A GAMING FACILITY, NOTHING IN THIS SECTION SHALL BE CONSTRUED TO AFFECT THE HOSTING AGREEMENT BETWEEN THE CORPORATION ESTAB- LISHED PURSUANT TO SECTION FIVE HUNDRED TWO OF THIS CHAPTER IN THE NASSAU REGION AND THE ENTITY CONVERTED TO A GAMING FACILITY; AND PURSU- ANT TO THE AGREEMENT, SUCH VIDEO LOTTERY DEVICES SHALL BE DEEMED TO BE HOSTED FOR THE CORPORATION BY SUCH ENTITY. § 4. Section 1318 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 2 to read as follows: 2. THE COMMISSION MAY REVOKE A LICENSE OF ANY ENTITY THAT HELD A LICENSE TO OPERATE VIDEO LOTTERY TERMINALS PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE TAX LAW, WHICH WAS THEN CONVERTED TO A GAMING S. 2509--B 98 FACILITY LICENSE IF THE COMMISSION DETERMINES THE FACILITY IS DISQUALI- FIED ON THE BASIS OF ANY OF THE CRITERIA ENUMERATED IN SUBDIVISION ONE OF THIS SECTION, SUBJECT TO NOTICE AND AN OPPORTUNITY FOR HEARING. § 5. Section 1351 of the racing, pari-mutuel wagering and breeding law is amended by adding two new subdivisions 3 and 4 to read as follows: 3. FOR A GAMING FACILITY IN ZONE ONE, THERE IS HEREBY IMPOSED A TAX ON GROSS GAMING REVENUES FOR GAMING FACILITIES. THE AMOUNT OF SUCH TAX IMPOSED IN ZONE ONE SHALL BE AS FOLLOWS; PROVIDED, HOWEVER, SHOULD A LICENSEE HAVE AGREED WITHIN ITS APPLICATION TO SUPPLEMENT THE TAX WITH A BINDING SUPPLEMENTAL FEE PAYMENT EXCEEDING THE AFOREMENTIONED TAX RATE, SUCH TAX AND SUPPLEMENTAL FEE SHALL APPLY FOR A GAMING FACILITY: THE AMOUNT OF SUCH TAX IMPOSED IN ZONE ONE SHALL BE FORTY-FIVE PERCENT OF GROSS GAMING REVENUE FROM SLOT MACHINES AND TEN PERCENT OF GROSS GAMING REVENUE FROM ALL OTHER SOURCES. 4. PERMISSIBLE DEDUCTIONS FOR GAMING FACILITIES IN ZONE ONE. (A) A GAMING FACILITY LOCATED IN ZONE ONE MAY DEDUCT FROM GROSS GAMING REVENUE THE AMOUNT OF APPROVED PROMOTIONAL GAMING CREDITS ISSUED TO AND WAGERED BY PATRONS OF SUCH GAMING FACILITY. THE AMOUNT OF APPROVED PROMOTIONAL CREDITS SHALL BE CALCULATED AS FOLLOWS: (1) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY-TWO AND ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-FIVE, AN AGGREGATE MAXIMUM AMOUNT EQUAL TO NINETEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVENUE AMOUNT DURING THE SPECIFIED PERIOD; (2) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY-FIVE AND ENDING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-SEVEN, A MAXIMUM AMOUNT EQUAL TO NINETEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVEN- UE AMOUNT FOR EACH FISCAL YEAR DURING THE SPECIFIED PERIOD; AND (3) FOR THE PERIOD COMMENCING ON APRIL FIRST, TWO THOUSAND TWENTY-SEV- EN AND THEREAFTER, A MAXIMUM AMOUNT EQUAL TO FIFTEEN PERCENT OF THE BASE TAXABLE GROSS GAMING REVENUE AMOUNT FOR EACH FISCAL YEAR DURING THE SPECIFIED PERIOD. (B) FOR PURPOSES OF PARAGRAPH (A) OF THIS SUBDIVISION, "BASE TAXABLE GROSS GAMING REVENUE AMOUNT" MEANS THAT PORTION OF GROSS GAMING REVENUE NOT ATTRIBUTABLE TO DEDUCTIBLE PROMOTIONAL CREDIT. (C) ANY TAX DUE ON PROMOTIONAL CREDITS DEDUCTED DURING THE FISCAL YEAR IN EXCESS OF THE ALLOWABLE DEDUCTION SHALL BE PAID WITHIN THIRTY DAYS FROM THE END OF THE FISCAL YEAR. (D) ONLY PROMOTIONAL CREDITS THAT ARE ISSUED PURSUANT TO A WRITTEN PLAN APPROVED BY THE COMMISSION AS DESIGNED TO INCREASE REVENUE AT THE FACILITY MAY BE ELIGIBLE FOR SUCH DEDUCTION. THE COMMISSION, IN CONJUNC- TION WITH THE DIRECTOR OF THE BUDGET, MAY SUSPEND APPROVAL OF ANY PLAN WHENEVER THEY JOINTLY DETERMINE THAT THE USE OF THE PROMOTIONAL CREDITS UNDER SUCH PLAN IS NOT EFFECTIVE IN INCREASING THE AMOUNT OF REVENUE EARNED. § 6. The opening paragraph of subdivision 1 of section 1312 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: The board shall issue within ninety days of a majority of members being appointed a request for applications for a gaming facility license in regions one, two and five in zone two[; provided, however, that the board shall not issue any requests for applications for any region in zone one; and further provided that the board shall not issue any requests for applications with respect to any gaming facility subse- quently legislatively authorized until seven years following the commencement of gaming activities in zone two] AND, ON OR BEFORE JULY FIRST, TWO THOUSAND TWENTY-ONE, THE BOARD SHALL ISSUE A REQUEST FOR S. 2509--B 99 APPLICATIONS FOR THREE ADDITIONAL GAMING FACILITY LICENSES IN ZONE ONE; AND PROVIDED FURTHER THAT THE BOARD SHALL MAKE A DETERMINATION REGARDING AN APPLICATION NO LATER THAN ONE HUNDRED FIFTY DAYS FROM RECEIVING THE APPLICATION. All requests for applications shall include: § 7. The opening paragraph of section 1348 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: In addition to any other tax or fee imposed by this article, there shall be imposed an annual license fee of five hundred dollars for each slot machine and table approved by the commission for use by a gaming licensee at a gaming facility; AND BEGINNING IN THE YEAR TWO THOUSAND TWENTY-TWO, THERE SHALL BE IMPOSED AN ANNUAL LICENSE FEE OF SEVEN HUNDRED FIFTY DOLLARS FOR EACH SLOT MACHINE AND TABLE GAME APPROVED BY THE COMMISSION FOR USE BY A GAMING LICENSEE AT A GAMING FACILITY LOCATED IN ZONE ONE, ORIGINALLY AWARDED A LICENSE AFTER JULY FIRST, TWO THOUSAND TWENTY-ONE, AND provided, however, that not sooner than five years after award of an original gaming license, the commission may annually adjust the fee for inflation. The fee shall be imposed as of July first of each year for all approved slot machines and tables on that date and shall be assessed on a pro rata basis for any slot machine or table approved for use thereafter. § 8. Subdivisions 3 and 4 of section 1315 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013, are amended to read as follows: 3. A licensee who fails to begin gaming operations within twenty-four months following license award shall be subject to suspension or revoca- tion of the gaming license by the commission and may, after being found by the commission after notice and opportunity for a hearing to have acted in bad faith in its application, be assessed a fine of up to [fifty] ONE HUNDRED million dollars. 4. The board shall determine a licensing fee OF NO LESS THAN FIVE HUNDRED MILLION DOLLARS to be paid by a licensee within thirty days after the award of the license which shall be deposited into the commer- cial gaming revenue fund. The license shall set forth the conditions to be satisfied by the licensee before the gaming facility shall be opened to the public. The commission shall set any renewal fee for such license based on the cost of fees associated with the evaluation of a licensee under this article which shall be deposited into the commercial gaming fund. Such renewal fee shall be exclusive of any subsequent licensing fees under this section. § 9. The opening paragraph and subdivisions 1, 2 and 4 of section 1306 of the racing, pari-mutuel wagering and breeding law, the opening para- graph as amended by chapter 243 of the laws of 2020 and subdivisions 1, 2 and 4 as added by chapter 174 of the laws of 2013, are amended to read as follows: The New York state gaming facility location board shall select, following a competitive process and subject to the restrictions of this article, no more than [four] SEVEN entities to apply to the commission for gaming facility licenses. In exercising its authority, the board shall have all powers necessary or convenient to fully carry out and effectuate its purposes including, but not limited to, the following powers. The board shall: 1. issue a request for applications for ZONE ONE AND zone two gaming facility licenses pursuant to section one thousand three hundred twelve of this article; S. 2509--B 100 2. assist the commission in prescribing the form of the application for ZONE ONE AND zone two gaming facility licenses including information to be furnished by an applicant concerning an applicant's antecedents, habits, character, associates, criminal record, business activities and financial affairs, past or present pursuant to section one thousand three hundred thirteen of this article; 4. determine a gaming facility license fee OF NO LESS THAN FIVE HUNDRED MILLION DOLLARS to be paid by an applicant; § 10. Subdivision 6 of section 109-a of the racing, pari-mutuel wager- ing and breeding law, as added by chapter 174 of the laws of 2013, is amended and a new subdivision 7 is added to read as follows: 6. Utilizing the powers and duties prescribed for it by article thir- teen of this chapter, the board shall select, through a competitive process consistent with provisions of article thirteen of this chapter, not more than [four] SEVEN gaming facility license applicants. Such selectees shall be authorized to receive a gaming facility license, if found suitable by the commission. The board may select another applicant for authorization to be licensed as a gaming facility if a previous selectee fails to meet licensing thresholds, is revoked or surrenders a license opportunity. 7. THE BOARD SHALL CONVENE ON OR BEFORE JULY FIRST, TWO THOUSAND TWEN- TY-ONE TO ISSUE REQUESTS FOR APPLICATIONS FOR THREE ADDITIONAL GAMING FACILITY LICENSES IN ZONE ONE, AS SPECIFIED BY SECTION THIRTEEN HUNDRED TEN OF THIS CHAPTER; AND PROVIDED FURTHER THAT THE BOARD SHALL MAKE A DETERMINATION REGARDING AN APPLICATION NO LATER THAN ONE HUNDRED FIFTY DAYS FROM RECEIVING THE APPLICATION. § 11. Section 1320 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: § 1320. Siting evaluation. In determining whether an applicant shall be eligible for a gaming facility license, the board shall evaluate and issue a finding of how each applicant proposes to advance the following objectives. 1. The decision by the board to select a gaming facility license APPLICANT SHALL BE WEIGHTED BY TEN PERCENT BASED UPON A SPEED TO MARKET FACTOR IN WHICH THE COMMISSION SHALL AWARD GREATER CONSIDERATION TO APPLICANTS WHICH CAN DEMONSTRATE AN ABILITY TO COMMENCE GAMING OPER- ATIONS MORE QUICKLY RELATIVE TO OTHER APPLICANTS, IN THE INTEREST OF MAKING REVENUE AVAILABLE TO THE STATE IN AN EXPEDITIOUS MANNER. 2. THE DECISION BY THE BOARD TO SELECT A GAMING FACILITY LICENSE applicant shall be weighted by [seventy] SIXTY percent based on economic activity and business development factors including: (a) realizing maximum capital investment exclusive of land acquisition and infrastructure improvements; (b) maximizing revenues received by the state and localities; (c) providing the highest number of quality jobs in the gaming facili- ty; (d) building a gaming facility of the highest caliber with a variety of quality amenities to be included as part of the gaming facility; (e) offering the highest and best value to patrons to create a secure and robust gaming market in the region and the state; (f) providing a market analysis detailing the benefits of the site location of the gaming facility and the estimated recapture rate of gaming-related spending by residents travelling to an out-of-state gaming facility; S. 2509--B 101 (g) offering the fastest time to completion of the full gaming facili- ty; (h) demonstrating the ability to fully finance the gaming facility; and (i) demonstrating experience in the development and operation of a quality gaming facility. [2.] 3. The decision by the board to select a gaming facility license applicant shall be weighted by twenty percent based on local impact and siting factors including: (a) mitigating potential impacts on host and nearby municipalities which might result from the development or operation of the gaming facility; (b) gaining public support in the host and nearby municipalities which [may] SHALL be demonstrated through the ENACTMENT OR passage of A local [laws or public comment received by the board or gaming applicant] LAW OR RESOLUTION; (c) operating in partnership with and promoting local hotels, restau- rants and retail facilities so that patrons experience the full diversi- fied regional tourism industry; and (d) establishing a fair and reasonable partnership with live enter- tainment venues that may be impacted by a gaming facility under which the gaming facility actively supports the mission and the operation of the impacted entertainment venues. [3.] 4. The decision by the board to select a gaming facility license applicant shall be weighted by ten percent based on workforce enhance- ment factors including: (a) implementing a workforce development plan that utilizes the exist- ing labor force, including the estimated number of construction jobs a proposed gaming facility will generate, the development of workforce training programs that serve the unemployed and methods for accessing employment at the gaming facility; (b) taking additional measures to address problem gambling including, but not limited to, training of gaming employees to identify patrons exhibiting problems with gambling; (c) utilizing sustainable development principles including, but not limited to: (1) having new and renovation construction certified under the appro- priate certification category in the Leadership in Energy and Environ- mental Design Green Building Rating System created by the United States Green Building Council; (2) efforts to mitigate vehicle trips; (3) efforts to conserve water and manage storm water; (4) demonstrating that electrical and HVAC equipment and appliances will be Energy Star labeled where available; (5) procuring or generating on-site ten percent of its annual elec- tricity consumption from renewable sources; and (6) developing an ongoing plan to submeter and monitor all major sources of energy consumption and undertake regular efforts to maintain and improve energy efficiency of buildings in their systems; (d) establishing, funding and maintaining human resource hiring and training practices that promote the development of a skilled and diverse workforce and access to promotion opportunities through a workforce training program that: (1) establishes transparent career paths with measurable criteria within the gaming facility that lead to increased responsibility and S. 2509--B 102 higher pay grades that are designed to allow employees to pursue career advancement and promotion; (2) provides employee access to additional resources, such as tuition reimbursement or stipend policies, to enable employees to acquire the education or job training needed to advance career paths based on increased responsibility and pay grades; and (3) establishes an on-site child day care program; (e) purchasing, whenever possible, domestically manufactured slot machines for installation in the gaming facility; (f) implementing a workforce development plan that: (1) incorporates an affirmative action program of equal opportunity by which the applicant guarantees to provide equal employment opportunities to all employees qualified for licensure in all employment categories, including persons with disabilities; (2) utilizes the existing labor force in the state; (3) estimates the number of construction jobs a gaming facility will generate and provides for equal employment opportunities and which includes specific goals for the utilization of minorities, women and veterans on those construction jobs; (4) identifies workforce training programs offered by the gaming facility; and (5) identifies the methods for accessing employment at the gaming facility; and (g) demonstrating that the applicant has an agreement with organized labor, including hospitality services, and has the support of organized labor for its application, which specifies: (1) the number of employees to be employed at the gaming facility, including detailed information on the pay rate and benefits for employ- ees and contractors in the gaming facility and all infrastructure improvements related to the project; and (2) detailed plans for assuring labor harmony during all phases of the construction, reconstruction, renovation, development and operation of the gaming facility. § 12. Subdivision 2 of section 1314 of the racing, pari-mutuel wager- ing and breeding law, as added by chapter 174 of the laws of 2013, is amended to read as follows: 2. As a condition of filing, each potential license applicant [must] SHALL demonstrate to the [board's satisfaction] BOARD that local support has been demonstrated THROUGH THE ENACTMENT OR PASSAGE OF A LOCAL LAW OR RESOLUTION IN SUPPORT BY THE MUNICIPALITY WHERE SUCH FACILITY IS TO BE PHYSICALLY SITED. § 13. This act shall take effect immediately. PART NN Section 1. (a) Notwithstanding any provision of law to the contrary, for the duration of the state disaster emergency pursuant to executive order 202 of 2020, a taxpayer that has required some or all of its employees to work remotely as a result of the outbreak of novel corona- virus, COVID-19, may designate such remote work as having been performed at the location such work was performed prior to the declaration of such state disaster emergency for tax benefits that are based on maintaining a presence within the state or within specific areas of the state, including but not limited to those provided pursuant to section 39 of the tax law. S. 2509--B 103 (b) Eligible businesses shall be required to certify, that for the entire period the benefit is claimed, the business continued to operate within the state. (c) Eligible businesses shall be required to certify, that for the entire period the benefit is claimed, that any employees eligible for tax benefits continued working within the state. (d) Under no circumstances, shall a business be eligible for tax bene- fits based on maintaining a presence within the state or within specific areas of the state, including but not limited to those provided pursuant to section 39 of the tax law, if the business moved operations outside of the state. § 2. The commissioner of taxation and finance shall, in consultation with the commissioner of economic development, promulgate any rule or regulation necessary to effectuate this act. § 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on or after March 7, 2020 and shall expire and be deemed repealed on December 31, 2022. PART OO Section 1. The opening paragraph of paragraph (a) of subdivision 1 of section 210 of the tax law, as amended by section 10 of part T of chap- ter 59 of the laws of 2015, is amended to read as follows: For taxable years beginning before January first, two thousand sixteen, the amount prescribed by this paragraph shall be computed at the rate of seven and one-tenth percent of the taxpayer's business income base. For taxable years beginning on or after January first, two thousand sixteen, the amount prescribed by this paragraph shall be six and one-half percent of the taxpayer's business income base. The taxpay- er's business income base shall mean the portion of the taxpayer's busi- ness income apportioned within the state as hereinafter provided. FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY- ONE THE AMOUNT PRESCRIBED BY THIS PARAGRAPH SHALL BE COMPUTED AT THE RATE OF NINE AND ONE-HALF PERCENT FOR TAXPAYERS WITH A BUSINESS INCOME BASE ABOVE FIVE MILLION DOLLARS. However, in the case of a small busi- ness taxpayer, as defined in paragraph (f) of this subdivision, the amount prescribed by this paragraph shall be computed pursuant to subparagraph (iv) of this paragraph and in the case of a manufacturer, as defined in subparagraph (vi) of this paragraph, the amount prescribed by this paragraph shall be computed pursuant to subparagraph (vi) of this paragraph, and, in the case of a qualified emerging technology company, as defined in subparagraph (vii) of this paragraph, the amount prescribed by this paragraph shall be computed pursuant to subparagraph (vii) of this paragraph. § 2. Subparagraph 1 of paragraph (b) of subdivision 1 of section 210 of the tax law, as amended by section 18 of part T of chapter 59 of the laws of 2015, is amended to read as follows: (1) (i) The amount prescribed by this paragraph shall be computed at .15 percent for each dollar of the taxpayer's total business capital, or the portion thereof apportioned within the state as hereinafter provided for taxable years beginning before January first, two thousand sixteen. However, in the case of a cooperative housing corporation as defined in the internal revenue code, the applicable rate shall be .04 percent until taxable years beginning on or after January first, two thousand twenty. The rate of tax for subsequent tax years shall be as follows: .125 percent for taxable years beginning on or after January S. 2509--B 104 first, two thousand sixteen and before January first, two thousand seventeen; .100 percent for taxable years beginning on or after January first, two thousand seventeen and before January first, two thousand eighteen; .075 percent for taxable years beginning on or after January first, two thousand eighteen and before January first, two thousand nineteen; .050 percent for taxable years beginning on or after January first, two thousand nineteen and before January first, two thousand twenty; .025 percent for taxable years beginning on or after January first, two thousand twenty and before January first, two thousand twen- ty-one; and [zero] .125 percent for years beginning on or after January first, two thousand twenty-one. The rate of tax for a qualified New York manufacturer shall be .132 percent for taxable years beginning on or after January first, two thousand fifteen and before January first, two thousand sixteen, .106 percent for taxable years beginning on or after January first, two thousand sixteen and before January first, two thou- sand seventeen, .085 percent for taxable years beginning on or after January first, two thousand seventeen and before January first, two thousand eighteen; .056 percent for taxable years beginning on or after January first, two thousand eighteen and before January first, two thou- sand nineteen; .038 percent for taxable years beginning on or after January first, two thousand nineteen and before January first, two thou- sand twenty; .019 percent for taxable years beginning on or after Janu- ary first, two thousand twenty and before January first, two thousand twenty-one; and zero percent for years beginning on or after January first, two thousand twenty-one. (ii) In no event shall the amount prescribed by this paragraph exceed three hundred fifty thousand dollars for qualified New York manufacturers and for all other taxpayers five million dollars. § 3. This act shall take effect immediately. PART PP Section 1. The tax law is amended by adding a new section 601-b to read as follows: § 601-B. ADDITIONAL TAX ON INCOME FROM CAPITAL GAIN. (A) THERE IS HEREBY IMPOSED, IN ADDITION TO THE TAX IMPOSED UNDER SECTION SIX HUNDRED ONE OF THIS ARTICLE, AN ADDITIONAL TAX ON A NEW YORK RESIDENT'S INCOME FROM CAPITAL GAIN. (B) INCOME FROM CAPITAL GAIN SHALL MEAN THE AMOUNT OF AN INDIVIDUAL'S NEW YORK TAXABLE INCOME ATTRIBUTABLE TO NET SHORT-TERM CAPITAL GAIN AND NET LONG-TERM CAPITAL GAIN, AS DEFINED UNDER INTERNAL REVENUE CODE SECTION 1222(5) AND SECTION 1222(7). (C) THE ADDITIONAL TAX IMPOSED UNDER THIS SECTION SHALL BE EQUAL TO ONE PERCENT OF AN INDIVIDUAL'S INCOME FROM CAPITAL GAIN. (D) THIS SECTION SHALL NOT APPLY TO THE FOLLOWING PERSONS: (1) IN THE CASE OF RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS, IF NEW YORK TAXABLE INCOME IS NOT MORE THAN TWO MILLION ONE HUNDRED FIFTY-FIVE THOUSAND THREE HUNDRED FIFTY DOLLARS. (2) IN THE CASE OF A RESIDENT HEAD OF HOUSEHOLD, AN INDIVIDUAL WHOSE NEW YORK TAXABLE INCOME IS NOT MORE THAN ONE MILLION SIX HUNDRED SIXTEEN THOUSAND FOUR HUNDRED FIFTY DOLLARS. (3) IN THE CASE OF RESIDENT UNMARRIED INDIVIDUALS, RESIDENT MARRIED INDIVIDUALS FILING SEPARATE RETURNS, AND RESIDENT ESTATES AND TRUSTS, IF NEW YORK TAXABLE INCOME IS NOT MORE THAN ONE MILLION SEVENTY-SEVEN THOU- SAND FIVE HUNDRED FIFTY DOLLARS. S. 2509--B 105 (E) THIS SECTION SHALL BE ADMINISTERED, AND PENALTIES IMPOSED, IN THE SAME MANNER AS THE TAX IMPOSED UNDER SECTION SIX HUNDRED ONE OF THIS ARTICLE. (F) THE DEPARTMENT MAY ADOPT RULES AND REGULATIONS AS NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION. § 2. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2021. PART QQ Section 1. This act shall be known and may be cited as the "opportu- nity zone tax break elimination act". § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law, as amended by section 5 of part T of chapter 59 of the laws of 2015, is amended to read as follows: (a) (i) The term "investment income" means income, including capital gains in excess of capital losses, from investment capital, to the extent included in computing entire net income, less, (A) in the discretion of the commissioner, any interest deductions allowable in computing entire net income which are directly or indirectly attribut- able to investment capital or investment income, (B) ANY CAPITAL GAINS DEFERRED OR EXCLUDED UNDER 26 U.S.C. §1400-Z-2, provided, however, that in no case shall investment income exceed entire net income. (ii) If the amount of interest deductions subtracted under subparagraph (i) of this paragraph exceeds investment income, the excess of such amount over investment income must be added back to entire net income. (iii) If the taxpayer's investment income determined without regard to the interest deductions subtracted under subparagraph (i) of this paragraph comprises more than eight percent of the taxpayer's entire net income, investment income determined without regard to such interest deductions cannot exceed eight percent of the taxpayer's entire net income. § 3. Paragraph (a) of subdivision 5 of section 11-652 of the adminis- trative code of the city of New York, as added by section 1 of part D of chapter 60 of the laws of 2015, is amended to read as follows: (a) (i) The term "investment income" means income, including capital gains in excess of capital losses, from investment capital, to the extent included in computing entire net income, less, (A) in the discretion of the commissioner of finance, any interest deductions allowable in computing entire net income which are directly or indirect- ly attributable to investment capital or investment income, (B) ANY CAPITAL GAINS DEFERRED OR EXCLUDED UNDER 26 U.S.C §1400-Z-2, provided, however, that in no case shall investment income exceed entire net income. (ii) If the amount of interest deductions subtracted under subpara- graph (i) of this paragraph exceeds investment income, the excess of such amount over investment income must be added back to entire net income. (iii) If the taxpayer's investment income determined without regard to the interest deductions subtracted under subparagraph (i) of this para- graph comprises more than eight percent of the taxpayer's entire net income, investment income determined without regard to such interest deductions cannot exceed eight percent of the taxpayer's entire net income. § 4. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2021. S. 2509--B 106 PART RR Section 1. Section 952 of the tax law, as amended by section 2 of part X of chapter 59 of the laws of 2014, subsection (b) as amended by section 1 of part BB of chapter 59 of the laws of 2015, is amended to read as follows: § 952. Tax imposed. (a) A tax is hereby imposed on the transfer of the New York estate by every deceased individual who at his or her death was a resident of New York state. (b) Computation of tax. The tax imposed by this section shall be computed on the deceased resident's New York taxable estate as follows: (1) IN THE CASE OF DECEDENTS DYING BEFORE APRIL 1, 2021: If the New York taxable estate is: The tax is: Not over $500,000 3.06% of taxable estate Over $500,000 but not over $1,000,000 $15,300 plus 5.0% of excess over $500,000 Over $1,000,000 but not over $1,500,000 $40,300 plus 5.5% of excess over $1,000,000 Over $1,500,000 but not over $2,100,000 $67,800 plus 6.5% of excess over $1,500,000 Over $2,100,000 but not over $2,600,000 $106,800 plus 8.0% of excess over $2,100,000 Over $2,600,000 but not over $3,100,000 $146,800 plus 8.8% of excess over $2,600,000 Over $3,100,000 but not over $3,600,000 $190,800 plus 9.6% of excess over $3,100,000 Over $3,600,000 but not over $4,100,000 $238,800 plus 10.4% of excess over $3,600,000 Over $4,100,000 but not over $5,100,000 $290,800 plus 11.2% of excess over $4,100,000 Over $5,100,000 but not over $6,100,000 $402,800 plus 12.0% of excess over $5,100,000 Over $6,100,000 but not over $7,100,000 $522,800 plus 12.8% of excess over $6,100,000 Over $7,100,000 but not over $8,100,000 $650,800 plus 13.6% of excess over $7,100,000 Over $8,100,000 but not over $9,100,000 $786,800 plus 14.4% of excess over $8,100,000 Over $9,100,000 but not over $930,800 plus 15.2% of excess over $10,100,000 $9,100,000 Over $10,100,000 $1,082,800 plus 16.0% of excess over $10,100,000 (2) IN THE CASE OF DECEDENTS DYING ON OR AFTER APRIL 1, 2021: IF THE NEW YORK TAXABLE ESTATE IS: THE TAX IS: NOT OVER $500,000 5.06% OF TAXABLE ESTATE OVER $500,000 BUT NOT OVER $25,300 PLUS 7.0% OF EXCESS OVER $1,000,000 $500,000 OVER $1,000,000 BUT NOT OVER $60,300 PLUS 7.5% OF EXCESS OVER $1,500,000 $1,000,000 OVER $1,500,000 BUT NOT OVER $97,800 PLUS 8.5% OF EXCESS OVER $2,100,000 $1,500,000 OVER $2,100,000 BUT NOT OVER $148,800 PLUS 10.0% OF EXCESS $2,600,000 OVER $2,100,000 OVER $2,600,000 BUT NOT OVER $198,800 PLUS 10.8% OF EXCESS $3,100,000 OVER $2,600,000 OVER $3,100,000 BUT NOT OVER $252,800 PLUS 11.6% OF EXCESS S. 2509--B 107 $3,600,000 OVER $3,100,000 OVER $3,600,000 BUT NOT OVER $310,800 PLUS 12.4% OF EXCESS $4,100,000 OVER $3,600,000 OVER $4,100,000 BUT NOT OVER $372,800 PLUS 13.2% OF EXCESS $5,100,000 OVER $4,100,000 OVER $5,100,000 BUT NOT OVER $504,800 PLUS 14.0% OF EXCESS $6,100,000 OVER $5,100,000 OVER $6,100,000 BUT NOT OVER $644,800 PLUS 14.8% OF EXCESS $7,100,000 OVER $6,100,000 OVER $7,100,000 BUT NOT OVER $792,800 PLUS 15.6% OF EXCESS $8,100,000 OVER $7,100,000 OVER $8,100,000 BUT NOT OVER $948,800 PLUS 16.4% OF EXCESS $9,100,000 OVER $8,100,000 OVER $9,100,000 BUT NOT OVER $1,112,800 PLUS 17.2% OF EXCESS $10,100,000 OVER $9,100,000 OVER $10,100,000 $1,284,800 PLUS 18.0% OF EXCESS OVER $10,100,000 (c) Applicable credit amount. (1) A credit of the applicable credit amount shall be allowed against the tax imposed by this section as provided in this subsection. In the case of a decedent whose New York taxable estate is less than or equal to the basic exclusion amount, the applicable credit amount shall be the amount of tax that would be due under subsection (b) of this section on such decedent's New York taxable estate. In the case of a decedent whose New York taxable estate exceeds the basic exclusion amount by an amount that is less than or equal to five percent of such amount, the applicable credit amount shall be the amount of tax that would be due under subsection (b) of this section if the amount on which the tax is to be computed were equal to the basic exclusion amount multiplied by one minus a fraction, the numerator of which is the decedent's New York taxable estate minus the basic exclu- sion amount, and the denominator of which is five percent of the basic exclusion amount. Provided, however, that the credit allowed by this subsection shall not exceed the tax imposed by this section, and no credit shall be allowed to the estate of any decedent whose New York taxable estate exceeds one hundred five percent of the basic exclusion amount. (2) (A) For purposes of this section, the basic exclusion amount shall be as follows: In the case of decedents dying on or after: The basic exclusion amount is: April 1, 2014 and before April 1, 2015 $ 2,062,500 April 1, 2015 and before April 1, 2016 3,125,000 April 1, 2016 and before April 1, 2017 4,187,500 April 1, 2017 and before January 1, 2019 5,250,000 (B) In the case of any decedent dying in a calendar year beginning on or after January first, two thousand nineteen, the basic exclusion amount shall be equal to: (i) five million dollars, multiplied by (ii) one plus the cost-of-living adjustment, which shall be the percentage by which the consumer price index for the preceding calendar year exceeds the consumer price index for calendar year two thousand ten. (C) (i) For purposes of this paragraph, "consumer price index" means the most recent consumer price index for all-urban consumers published by the United States department of labor. S. 2509--B 108 (ii) For purposes of clause (ii) of subparagraph (B) of this para- graph, the consumer price index for any calendar year shall be the aver- age of the consumer price index as of the close of the twelve-month period ending on August thirty-first of such calendar year. (iii) If any amount adjusted under this paragraph is not a multiple of ten thousand dollars, such amount shall be rounded to the nearest multi- ple of ten thousand dollars. § 2. This act shall take effect immediately. PART SS Section 1. The real property law is amended by adding a new section 291-k to read as follows: § 291-K. RECORDING OF MEZZANINE DEBT AND PREFERRED EQUITY INVESTMENTS. 1. WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, A MORTGAGE INSTRUMENT IS RECORDED IN THE OFFICE OF THE RECORDING OFFICER OF ANY COUNTY, ANY MEZZANINE DEBT OR PREFERRED EQUITY INVESTMENT RELATED TO THE REAL PROPERTY UPON WHICH THE MORTGAGE INSTRUMENT IS FILED SHALL ALSO BE RECORDED WITH SUCH MORTGAGE INSTRUMENT. FOR THE PURPOSES OF THIS SECTION, "MEZZANINE DEBT" AND "PREFERRED EQUITY INVESTMENTS" SHALL MEAN DEBT CARRIED BY A BORROWER THAT MAY BE SUBORDINATE TO THE PRIMARY LIEN AND IS SENIOR TO THE COMMON SHARES OF AN ENTITY OR THE BORROWER'S EQUITY AND REPORTED AS ASSETS FOR THE PURPOSES OF FINANCING SUCH PRIMARY LIEN. THIS SHALL INCLUDE NON-TRADITIONAL FINANCING TECHNIQUES SUCH AS A DIRECT OR INDIRECT INVESTMENT BY A FINANCING SOURCE IN AN ENTITY THAT OWNS THE EQUALITY INTERESTS OF THE UNDERLYING MORTGAGE WHERE THE FINANCING SOURCE HAS SPECIAL RIGHTS OR PREFERRED RIGHTS SUCH AS: (I) THE RIGHT TO RECEIVE A SPECIAL OR PREFERRED RATE OF RETURN ON ITS CAPITAL INVESTMENT; AND (II) THE RIGHT TO AN ACCELERATED REPAYMENT OF THE INVESTORS CAPITAL CONTRIBUTION. 2. THIS SECTION SHALL APPLY TO BOTH MEZZANINE DEBT AND PREFERRED EQUI- TY INVESTMENTS IF BOTH USED BY THE BORROWER OR MORTGAGOR, OR EITHER MEZZANINE DEBT OR PREFERRED DEBT, IF EITHER IS USED BY THE BORROWER OR MORTGAGOR. 3. FOR PURPOSES OF THIS SECTION, "MEZZANINE DEBT" AND "PREFERRED EQUI- TY INVESTMENTS" SHALL NOT INCLUDE DEBT ON COOPERATIVE OR COMMON SHARES OF A RESIDENTIAL DWELLING WHERE THE UNIT OWNER OF A COOPERATIVE APART- MENT IS A SHAREHOLDER OF THE OWNERSHIP ENTITY, HAS EXCLUSIVE OCCUPANCY OF SUCH DWELLING UNIT, AND HAS ESTABLISHED AND DELIMITED RIGHTS UNDER A PROPRIETARY LEASE. 4. NO REMEDY OTHERWISE AVAILABLE TO A SECURED PARTY UNDER ARTICLE NINE OF THE UNIFORM COMMERCIAL CODE SHALL BE AVAILABLE TO ENFORCE A SECURITY AGREEMENT PERTAINING TO MEZZANINE DEBT FINANCING AND/OR PREFERRED EQUITY INVESTMENTS IN RELATION TO REAL PROPERTY UPON WHICH A MORTGAGE INSTRU- MENT IS FILED THAT IS EVIDENCED BY A FINANCING STATEMENT, UNLESS THAT FINANCING STATEMENT IS FILED AND THE TAX IMPOSED PURSUANT TO THE AUTHOR- ITY OF SECTION TWO HUNDRED FIFTY-THREE-AA OF THE TAX LAW, HAS BEEN PAID. § 2. Section 9-601 of the uniform commercial code is amended by adding a new subsection (h) to read as follows: (H) SECURITY INTEREST PERFECTED BY FINANCING STATEMENT. 1. NOTWITH- STANDING ANY PROVISION OF LAW TO THE CONTRARY, A SECURITY INTEREST IN MEZZANINE DEBT AND/OR PREFERRED EQUITY INVESTMENTS RELATED TO THE REAL PROPERTY UPON WHICH A MORTGAGE INSTRUMENT IS FILED WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, MAY ONLY BE PERFECTED BY THE FILING OF A FINANCING STATEMENT UNDER SUBPART 1 OF PART 5 OF THIS ARTICLE AND S. 2509--B 109 ONLY AFTER THE PAYMENT OF ANY TAXES DUE PURSUANT TO SECTION TWO HUNDRED NINETY-ONE-K OF THE REAL PROPERTY LAW. 2. FOR PURPOSES OF THIS SECTION, THE TERMS "MEZZANINE DEBT" AND "PREFERRED EQUITY INVESTMENTS" SHALL HAVE THE SAME MEANING AS PROVIDED IN SECTION TWO HUNDRED NINETY-ONE-K OF THE REAL PROPERTY LAW. 3. THIS SECTION SHALL NOT BE APPLICABLE TO ANY DEBT ON COOPERATIVE OR COMMON SHARES OF A RESIDENTIAL DWELLING WHERE THE UNIT OWNER OF A COOP- ERATIVE APARTMENT IS A SHAREHOLDER OF THE OWNERSHIP ENTITY, HAS EXCLU- SIVE OCCUPANCY OF SUCH DWELLING UNIT, AND HAS ESTABLISHED AND DELIMITED RIGHTS UNDER A PROPRIETARY LEASE. § 3. Paragraph (a) of subdivision 2 of section 250 of the tax law, as amended by section 1 of part Q of chapter 60 of the laws of 2004, is amended to read as follows: (a) (1) The term "mortgage" as used in this article includes every mortgage or deed of trust which imposes a lien on or affects the title to real property, notwithstanding that such property may form a part of the security for the debt or debts secured thereby. An assignment of rents to accrue from tenancies, subtenancies, leases or subleases of real property, within any city in the state having a population of one million or more, given as security for an indebtedness, shall be deemed a mortgage of real property for purposes of this article. Executory contracts for the sale of real property under which the vendee has or is entitled to possession shall be deemed to be mortgages for the purposes of this article and shall be taxable at the amount unpaid on such contracts. A contract or agreement by which the indebtedness secured by any mortgage is increased or added to, shall be deemed a mortgage of real property for the purpose of this article, and shall be taxable as such upon the amount of such increase or addition. (2) Notwithstanding anything in this section or section two hundred fifty-five of this article to the contrary, a contract or agreement whereby the proceeds of any indebtedness secured by a mortgage of real property in any city in the state having a population of one million or more are used to reduce all or any part of a mortgagee's equity interest in a wraparound or similar mortgage of such real property shall be deemed a mortgage of real property for the purposes of this article and shall be taxable as such to the extent of the amount of such proceeds so used, without regard to whether the aggregate amount of indebtedness secured by mortgages of such real property is increased or added to. (3) NOTWITHSTANDING ANY PROVISION TO THE CONTRARY IN THIS SECTION OR SECTION TWO HUNDRED FIFTY-FIVE OF THIS ARTICLE, "MEZZANINE DEBT" AND "PREFERRED EQUITY INVESTMENTS" AS SUCH TERMS ARE DEFINED IN SUBDIVISION FOUR OF THIS SECTION, SHALL BE TAXABLE AND SHALL APPLY TO TAXES IN SUBDIVISIONS ONE, ONE-A AND TWO OF SECTION TWO HUNDRED FIFTY-THREE OF THIS ARTICLE, BUT SHALL NOT APPLY TO ANY OTHER TAXES IN THIS ARTICLE ON OR AFTER THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. § 4. Section 250 of the tax law is amended by adding a new subdivi- sion 4 to read as follows: 4. THE TERMS "MEZZANINE DEBT" AND "PREFERRED EQUITY INVESTMENTS" SHALL HAVE THE SAME MEANING AS PROVIDED IN SECTION TWO HUNDRED NINETY-ONE-K OF THE REAL PROPERTY LAW. § 5. The tax law is amended by adding a new section 253-aa to read as follows: § 253-AA. RECORDING TAX ON MEZZANINE DEBT. 1. WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, A TAX, MEASURED BY THE AMOUNT OF PRINCIPAL DEBTOR OBLIGATION WHICH IS UNDER ANY CONTINGENCY MAY BE SECURED AT THE DATE OF THE EXECUTION THEREOF, OR AT ANY TIME THEREAFTER, S. 2509--B 110 BY A SECURITY AGREEMENT PERTAINING TO MEZZANINE DEBT FINANCING AND/OR PREFERRED EQUITY INVESTMENTS IN RELATION TO REAL PROPERTY UPON WHICH A MORTGAGE INSTRUMENT IS FILED, AS EVIDENCED BY A FINANCING STATEMENT, IS IMPOSED ON THE FILING OF THE FINANCING STATEMENT. 2. THE RATE AND INCIDENCE OF THE TAX SHALL BE IN THE SAME AMOUNT AS ANY TAX THAT HAS BEEN IMPOSED BY A COUNTY OR CITY UNDER THE AUTHORITY OF THIS ARTICLE ON THE RECORDING OF A MORTGAGE INSTRUMENT FINANCING STATE- MENT PERTAINING TO MEZZANINE DEBT FINANCING AND/OR PREFERRED EQUITY INVESTMENTS IN RELATION TO REAL PROPERTY UPON WHICH A MORTGAGE INSTRU- MENT IS FILED IN THE SAME MANNER AS THE LOCAL MORTGAGE RECORDING TAX. 3. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ALL THE PROVISIONS OF THIS ARTICLE RELATING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION, DETERMINATION AND DISTRIBUTION OF THE TAX IMPOSED BY SECTION TWO HUNDRED FIFTY-THREE OF THIS ARTICLE SHALL APPLY TO THE TAX IMPOSED UNDER THE AUTHORITY OF THIS SECTION WITH SUCH MODIFICATION AS MAY BE NECESSARY TO ADAPT SUCH LANGUAGE TO THE TAX SO AUTHORIZED. ANY REFERENCE TO A MORTGAGE WILL BE DEEMED TO BE A REFERENCE TO A FINANCING STATEMENT THAT EVIDENCES A SECURITY AGREEMENT. SUCH PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS IF THOSE PROVISIONS HAD BEEN SET FORTH IN THIS SECTION EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCON- SISTENT WITH A PROVISION OF THIS SECTION OR NOT RELEVANT TO THE TAX AUTHORIZED BY THIS SECTION. 4. NO REMEDY OTHERWISE AVAILABLE TO A SECURED PARTY UNDER ARTICLE NINE OF THE UNIFORM COMMERCIAL CODE SHALL BE AVAILABLE TO ENFORCE A SECURITY AGREEMENT PERTAINING TO MEZZANINE DEBT FINANCING AND/OR PREFERRED EQUITY INVESTMENTS IN RELATION TO REAL PROPERTY UPON WHICH A MORTGAGE INSTRU- MENT IS FILED THAT IS EVIDENCED BY A FINANCING STATEMENT, UNLESS THAT FINANCING STATEMENT IS FILED AND THE TAX IMPOSED PURSUANT TO THE AUTHOR- ITY OF THIS SECTION HAS BEEN PAID. 5. FOR THE PURPOSES OF THIS SECTION: (A) "MEZZANINE DEBT" AND "PREFERRED EQUITY INVESTMENTS" SHALL HAVE THE SAME MEANING AS PROVIDED IN SECTION TWO HUNDRED NINETY-ONE-K OF THE REAL PROPERTY LAW. (B) "FINANCING STATEMENT" MEANS A RECORD OR RECORDS COMPOSED OF AN INITIAL FINANCING STATEMENT AND ANY FILED RECORD RELATING TO THE INITIAL FINANCING STATEMENT. (C) "SECURITY AGREEMENT" MEANS AN AGREEMENT THAT CREATES OR PROVIDES FOR A SECURITY INTEREST. 6. THE TAX IMPOSED ON A SECURITY AGREEMENT PERTAINING TO MEZZANINE FINANCING AND/OR PREFERRED EQUITY INVESTMENTS UPON WHICH A MORTGAGE INSTRUMENT IS FILED PURSUANT TO THIS SECTION SHALL BE IN THE SAME AMOUNT AS ANY THAT APPLY TO THE MORTGAGE INSTRUMENT THAT IS IMPOSED ON THE MORTGAGE INSTRUMENT ASSOCIATED WITH THE MEZZANINE FINANCING AND/OR PREFERRED EQUITY INVESTMENTS UPON WHICH A MORTGAGE INSTRUMENT IS FILED. ANY TAX THAT HAS BEEN IMPOSED BY A COUNTY OR CITY UNDER THE AUTHORITY OF THIS ARTICLE SHALL BE DEEMED TO INCLUDE THE AUTHORITY TO IMPOSE AND COLLECT THE TAX ON THE RECORDING OF A FINANCING STATEMENT PERTAINING TO MEZZANINE DEBT FINANCING AND/OR PREFERRED EQUITY INVESTMENTS IN RELATION TO REAL PROPERTY UPON WHICH A MORTGAGE INSTRUMENT IS FILED IN THE SAME MANNER AS THE LOCAL MORTGAGE RECORDING TAX. § 6. Paragraph (a) of subdivision 1 of section 255 of the tax law is amended by adding a new subparagraph (iii) to read as follows: (III) NOTWITHSTANDING THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARA- GRAPH, THE TAXES IMPOSED BY THE AUTHORITY UNDER SUBPARAGRAPH THREE OF PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION TWO HUNDRED FIFTY OF THIS S. 2509--B 111 ARTICLE SHALL APPLY TO MEZZANINE DEBT AND/OR PREFERRED EQUITY INVEST- MENTS AS SUCH TERMS ARE DEFINED BY SUBDIVISION FOUR OF SUCH SECTION. § 7. Section 257 of the tax law is amended to read as follows: § 257. Payment of taxes. The taxes imposed by this article shall be payable on the recording of each mortgage of real property subject to taxes thereunder. Such taxes shall be paid to the recording officer of any county in which the real property or any part thereof is situated; PROVIDED, HOWEVER, THE TAXES IMPOSED PURSUANT TO SECTION TWO HUNDRED FIFTY-THREE-AA OF THIS ARTICLE, WHICH SHALL BE PAID TO THE RECORDING OFFICER, SHALL BE REMITTED TO THE NEW YORK CITY HOUSING AUTHORITY AS CONSTITUTED BY SECTION FOUR HUNDRED ONE OF THE PUBLIC HOUSING LAW. It shall be the duty of such recording officer to indorse upon each mort- gage AND ANY MEZZANINE DEBT INCLUDED WITH SUCH MORTGAGE a receipt for the amount of the tax so paid. Any mortgage so indorsed may thereupon or thereafter be recorded by any recording officer and the receipt for such tax indorsed upon each mortgage shall be recorded therewith. The record of such receipt shall be conclusive proof that the amount of tax stated therein has been paid upon such mortgage, INCLUDING ANY MEZZANINE DEBT. § 8. Subdivision 1 of section 258 of the tax law, as amended by chap- ter 241 of the laws of 1989, is amended to read as follows: 1. No mortgage of real property shall be recorded by any county clerk or register, unless there shall be paid the taxes imposed by and as in this article provided. No mortgage of real property which is subject to the taxes imposed by this article shall be released, discharged of record or received in evidence in any action or proceeding, nor shall any assignment of or agreement extending any such mortgage be recorded unless the taxes imposed thereon by this article shall have been paid as provided in this article. FOR PURPOSES OF THE TAXES IMPOSED AND AUTHOR- IZED BY SUBPARAGRAPH THREE OF PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION TWO HUNDRED FIFTY OF THIS ARTICLE, UNLESS SUCH TAXES SHALL HAVE BEEN PAID, NO MORTGAGE OF REAL PROPERTY SHALL BE RECORDED BY ANY COUNTY CLERK OR REGISTER, NOR SHALL SUCH MORTGAGE BE RELEASED, DISCHARGED, RECORDED OR RECEIVED IN EVIDENCE IN ANY ACTION OR PROCEEDING, NOR SHALL ANY ASSIGNMENT OF AGREEMENT EXTENDING SUCH MORTGAGE BE RECORDED. Provided, however, except as otherwise provided in subdivision two of this section, in order to obtain a release or discharge of record where the mortgagor is not liable for the special additional tax imposed under subdivision one-a of section two hundred fifty-three of this chapter, such mortgagor or any subsequent owner of the mortgaged property or a part thereof may pay the tax imposed under such subdivision one-a and penalty, and may either apply for the credit allowable under this chap- ter for payment of such additional tax or may maintain an action to recover the amounts so paid against any person liable for payment of the tax or any subsequent assignees or owners of such mortgage or consol- idated mortgage of which such mortgage is a part, as if such amounts of tax and penalty were a debt personally owed by such persons to the mort- gagor or subsequent owner. No judgment or final order in any action or proceeding shall be made for the foreclosure or the enforcement of any mortgage which is subject to any tax imposed by this article or of any debt or obligation secured by any such mortgage, unless the taxes, INCLUDING TAXES AUTHORIZED BY SUBPARAGRAPH THREE OF PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION TWO HUNDRED FIFTY OF THIS ARTICLE imposed by this article shall have been paid as provided in this article; and, except AS otherwise provided in subdivision two of this section, whenev- er it shall appear that any mortgage has been recorded without payment of a tax imposed by this article there shall be added to the tax a sum S. 2509--B 112 equal to one-half of one per centum thereof for each month or fraction of a month for the period that the tax remains unpaid except where it could not be determined from the face of the instrument that a tax was due, or where an advance has been made on a prior advance mortgage or a corporate trust mortgage without payment of the tax, in which case there shall be added to the tax a sum equal to one per centum thereof for each month or fraction of a month for the period that the tax remains unpaid. In any case where a mortgage of real property subject to a tax imposed by this article has heretofore been recorded or is hereafter recorded in good faith, and the county clerk or register has held such mortgage nontaxable or taxable at one amount, and it shall later appear that it was taxable or taxable at a greater amount, the commissioner of taxation and finance may remit the penalties in excess of one-half of one per centum per month. § 9. This act shall take effect on the ninetieth day after it shall have become a law. PART TT Section 1. Subparagraph (B) of paragraph 3 of subsection (c) of section 658 of the tax law, as amended by section 1 of part H-1 of chap- ter 57 of the laws of 2009, is amended to read as follows: (B) The filing fee will be based on the New York source gross income of the limited liability company or partnership for the taxable year immediately preceding the taxable year for which the fee is due. If the limited liability company or partnership does not have any New York source gross income for the taxable year immediately preceding the taxa- ble year for which the fee is due, the limited liability company or partnership shall pay the minimum filing fee. Partnerships, other than limited liability partnerships under article eight-B of the partnership law and foreign limited liability partnerships, with less than one million dollars in New York source gross income are exempt from the filing fee. New York source gross income is the sum of the partners' or members' shares of federal gross income from the partnership or limited liability company derived from or connected with New York sources, determined in accordance with the provisions of section six hundred thirty-one of this article as if those provisions and any related provisions expressly referred to a computation of federal gross income from New York sources. For this purpose, federal gross income is computed without any allowance or deduction for cost of goods sold. The amount of the filing fee for taxable years beginning on or after January first, two thousand eight AND PRIOR TO JANUARY FIRST, TWO THOU- SAND TWENTY-ONE will be determined in accordance with the following table: If the New York source gross income is: The fee is: not more than $100,000 $25 more than $100,000 but not over $250,000 $50 more than $250,000 but not over $500,000 $175 more than $500,000 but not over $1,000,000 $500 more than $1,000,000 but not over $5,000,000 $1,500 more than $5,000,000 but not over $25,000,000 $3,000 Over $25,000,000 $4,500 THE AMOUNT OF THE FILING FEE FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE WILL BE DETERMINED BY THE COMMIS- S. 2509--B 113 SIONER SUCH THAT THE FEE SCHEDULE APPLICABLE WHEN THE NEW YORK SOURCE GROSS INCOME IS NOT MORE THAN ONE MILLION DOLLARS WILL REMAIN THE SAME AS IT WAS ON OR AFTER JANUARY FIRST, TWO THOUSAND EIGHT, AND THAT THE FILING FEE SCHEDULE APPLICABLE WHEN THE NEW YORK SOURCE GROSS INCOME IS MORE THEN ONE MILLION DOLLARS WILL BE ADJUSTED BY THE COMMISSIONER IN SUCH A WAY AS TO GENERATE ONE HUNDRED THIRTEEN MILLION DOLLARS IN ADDI- TIONAL REVENUE AS COMPARED TO THE TOTAL REVENUE GENERATED FROM SUCH FEES IN THE TAXABLE YEAR TWO THOUSAND TWENTY. § 2. This act shall take effect on the ninetieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date. PART UU Section 1. Section 606 of the tax law is amended by adding a new subsection (e-2) to read as follows: (E-2) REAL PROPERTY TAX RELIEF CREDIT. (1) FOR PURPOSES OF THIS SUBSECTION: (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO HAS OCCUPIED THE SAME RESIDENCE FOR SIX MONTHS OR MORE OF THE TAXABLE YEAR AS HIS OR HER PRIMARY RESIDENCE, AND IS REQUIRED OR CHOOSES TO FILE A RETURN UNDER THIS ARTICLE. (B) "QUALIFIED GROSS INCOME" MEANS THE ADJUSTED GROSS INCOME OF THE QUALIFIED TAXPAYER FOR THE TAXABLE YEAR AS REPORTED FOR FEDERAL INCOME TAX PURPOSES, OR WHICH WOULD BE REPORTED AS ADJUSTED GROSS INCOME IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED. IN COMPUTING QUALI- FIED GROSS INCOME, THE NET AMOUNT OF LOSS REPORTED ON FEDERAL SCHEDULE C, D, E, OR F SHALL NOT EXCEED THREE THOUSAND DOLLARS PER SCHEDULE. IN ADDITION, THE NET AMOUNT OF ANY OTHER SEPARATE CATEGORY OF LOSS SHALL NOT EXCEED THREE THOUSAND DOLLARS. THE AGGREGATE AMOUNT OF ALL LOSSES INCLUDED IN COMPUTING QUALIFIED GROSS INCOME SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS. (C) "RESIDENCE" MEANS A DWELLING IN THIS STATE OWNED BY THE TAXPAYER AND USED BY THE TAXPAYER AS HIS OR HER PRIMARY RESIDENCE, AND SO MUCH OF THE LAND ABUTTING IT, NOT EXCEEDING ONE ACRE, AS IS REASONABLY NECESSARY FOR USE OF THE DWELLING AS A HOME, AND MAY CONSIST OF A PART OF A MULTI-DWELLING OR MULTI-PURPOSE BUILDING INCLUDING A COOPERATIVE OR CONDOMINIUM. RESIDENCE INCLUDES A TRAILER OR MOBILE HOME, USED EXCLU- SIVELY FOR RESIDENTIAL PURPOSES AND DEFINED AS REAL PROPERTY PURSUANT TO PARAGRAPH (G) OF SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO OF THE REAL PROPERTY TAX LAW. (D) "QUALIFYING REAL PROPERTY TAXES" MEANS ALL REAL PROPERTY TAXES, SPECIAL AD VALOREM LEVIES AND SPECIAL ASSESSMENTS, EXCLUSIVE OF PENAL- TIES AND INTEREST, LEVIED BY A TAXING JURISDICTION ON THE RESIDENCE OWNED AND OCCUPIED BY A QUALIFIED TAXPAYER AND PAID BY THE QUALIFIED TAXPAYER DURING THE TAXABLE YEAR, PROVIDED THAT TO THE EXTENT THE TOTAL AMOUNT OF REAL PROPERTY TAXES SO PAID INCLUDES SCHOOL DISTRICT TAXES, THE AMOUNT OF THE SCHOOL TAX RELIEF (STAR) CREDIT CLAIMED PURSUANT TO SUBSECTION (CCC) OF THIS SECTION, IF ANY, SHALL BE DEDUCTED FROM SUCH AMOUNT. A QUALIFIED TAXPAYER MAY ELECT TO INCLUDE ANY ADDITIONAL AMOUNT THAT WOULD HAVE BEEN LEVIED BY A TAXING JURISDICTION AND PAID BY THE QUALI- FIED TAXPAYER IN THE ABSENCE OF AN EXEMPTION FROM REAL PROPERTY TAXATION PURSUANT TO SECTION FOUR HUNDRED SIXTY-SEVEN OF THE REAL PROPERTY TAX S. 2509--B 114 LAW. IF TENANT-STOCKHOLDERS IN A COOPERATIVE HOUSING CORPORATION HAVE MET THE REQUIREMENTS OF SECTION TWO HUNDRED SIXTEEN OF THE INTERNAL REVENUE CODE BY WHICH THEY ARE ALLOWED A DEDUCTION FOR REAL ESTATE TAXES, THE AMOUNT OF TAXES SO ALLOWABLE, OR WHICH WOULD BE ALLOWABLE IF THE TAXPAYER HAD FILED RETURNS ON A CASH BASIS, SHALL BE QUALIFYING REAL PROPERTY TAXES. IF A RESIDENCE IS AN INTEGRAL PART OF A LARGER UNIT, QUALIFYING REAL PROPERTY TAXES SHALL BE LIMITED TO THAT AMOUNT OF SUCH TAXES PAID AS MAY BE REASONABLY APPORTIONED TO SUCH RESIDENCE. IF A TAXPAYER OWNS AND OCCUPIES TWO RESIDENCES DURING DIFFERENT PERIODS IN THE SAME TAXABLE YEAR, QUALIFYING REAL PROPERTY TAXES SHALL BE THE SUM OF THE PRORATED QUALIFYING REAL PROPERTY TAXES ATTRIBUTABLE TO THE TAXPAYER DURING THE PERIODS SUCH TAXPAYER OCCUPIES EACH OF SUCH RESI- DENCES. IF THE TAXPAYER OWNS AND OCCUPIES A RESIDENCE FOR PART OF THE TAXABLE YEAR AND RENTS A RESIDENCE FOR PART OF THE SAME TAXABLE YEAR, IT MAY INCLUDE THE PRORATION OF QUALIFYING REAL PROPERTY TAXES ON THE RESI- DENCE OWNED. PROVIDED, HOWEVER, FOR PURPOSES OF THE CREDIT ALLOWED UNDER THIS SUBSECTION, QUALIFYING REAL PROPERTY TAXES MAY BE INCLUDED BY A QUALIFIED TAXPAYER ONLY TO THE EXTENT THAT SUCH TAXPAYER OR THE SPOUSE OF SUCH TAXPAYER, OCCUPYING SUCH RESIDENCE FOR ONE HUNDRED EIGHTY-THREE DAYS OR MORE OF THE TAXABLE YEAR, OWNS OR HAS OWNED THE RESIDENCE AND PAID SUCH TAXES. (E) "EXCESS REAL PROPERTY TAX" MEANS THE EXCESS OF QUALIFYING REAL PROPERTY TAXES OVER THE FOLLOWING PERCENTAGE OF QUALIFIED GROSS INCOME: FOR THE YEARS BEGINNING IN: PERCENTAGE: 2021 AND AFTER 6.0% (2) A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION AGAINST THE TAXES IMPOSED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX FOR SUCH YEAR UNDER THIS ARTICLE, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT, TO BE CREDITED OR REFUNDED, WITHOUT INTEREST. IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A QUALIFIED TAXPAYER MAY NEVERTHELESS RECEIVE THE FULL AMOUNT OF THE CREDIT TO BE CREDITED OR REPAID AS AN OVERPAYMENT, WITHOUT INTEREST. (3) DETERMINATION OF CREDIT. FOR ALL TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE, THE CREDIT AMOUNT ALLOWED UNDER THIS SUBSECTION SHALL EQUAL THE APPLICABLE PERCENTAGE OF THE EXCESS REAL PROPERTY TAX, CALCULATED AS FOLLOWS: (A) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS SEVENTY- FIVE THOUSAND DOLLARS OR LESS, THE APPLICABLE PERCENTAGE SHALL BE FOUR- TEEN PERCENT. (B) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER THAN SEVENTY-FIVE THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO ONE HUNDRED FIFTY THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE THE DIFFER- ENCE BETWEEN (I) FOURTEEN PERCENT AND (II) FIVE PERCENT MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AS DEFINED BY THIS SUBSECTION AND SEVENTY-FIVE THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS SEVENTY- FIVE THOUSAND DOLLARS. (C) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER THAN ONE HUNDRED FIFTY THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO TWO HUNDRED FIFTY THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE THE DIFFERENCE BETWEEN (I) NINE PERCENT AND (II) SIX PERCENT MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND ONE HUNDRED FIFTY THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS ONE HUNDRED THOUSAND DOLLARS. S. 2509--B 115 (4) MAXIMUM CREDIT FOR PROPERTY OWNERS. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH THREE OF THIS SUBSECTION, THE MAXIMUM CREDIT DETERMINED UNDER SUCH PARAGRAPH, AND THEREBY ALLOWED UNDER THIS SUBSECTION, SHALL NOT EXCEED THE AMOUNT CALCULATED UNDER THIS PARAGRAPH. FOR ALL TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU- SAND TWENTY-ONE, THE MAXIMUM CREDIT AMOUNT ALLOWED UNDER THIS SUBSECTION SHALL BE CALCULATED AS FOLLOWS: (A) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS SEVENTY- FIVE THOUSAND DOLLARS OR LESS, THE MAXIMUM CREDIT ALLOWED SHALL BE FIVE HUNDRED DOLLARS. (B) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER THAN SEVENTY-FIVE THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO ONE HUNDRED FIFTY THOUSAND DOLLARS, THE MAXIMUM CREDIT ALLOWED SHALL BE THE DIFFER- ENCE BETWEEN (I) FIVE HUNDRED DOLLARS AND (II) ONE HUNDRED FIFTY DOLLARS MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND SEVENTY-FIVE THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS SEVENTY-FIVE THOUSAND DOLLARS. (C) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER THAN ONE HUNDRED FIFTY THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO TWO HUNDRED FIFTY THOUSAND DOLLARS, THE MAXIMUM CREDIT ALLOWED SHALL BE THE DIFFERENCE BETWEEN (I) THREE HUNDRED FIFTY DOLLARS AND (II) ONE HUNDRED FIFTY DOLLARS MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND ONE HUNDRED FIFTY THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS ONE HUNDRED THOUSAND DOLLARS. (5) IF A QUALIFIED TAXPAYER OCCUPIES A RESIDENCE FOR A PERIOD OF LESS THAN TWELVE MONTHS DURING THE TAXABLE YEAR OR OCCUPIES TWO RESIDENCES DURING DIFFERENT PERIODS IN SUCH TAXABLE YEAR, THE CREDIT ALLOWED PURSU- ANT TO THIS SUBSECTION SHALL BE COMPUTED IN SUCH MANNER AS THE COMMIS- SIONER MAY, BY REGULATION, PRESCRIBE IN ORDER TO PROPERLY REFLECT THE CREDIT OR PORTION THEREOF ATTRIBUTABLE TO SUCH RESIDENCE OR RESIDENCES AND SUCH PERIOD OR PERIODS. (6) THE COMMISSIONER MAY PRESCRIBE THAT THE CREDIT UNDER THIS SUBSECTION SHALL BE DETERMINED IN WHOLE OR IN PART BY THE USE OF TABLES PRESCRIBED BY SUCH COMMISSIONER. SUCH TABLES SHALL SET FORTH THE CREDIT TO THE NEAREST DOLLAR. (7) NO CREDIT SHALL BE GRANTED UNDER THIS SUBSECTION: (A) TO A PROPERTY OWNER IF QUALIFIED GROSS INCOME FOR THE TAXABLE YEAR EXCEEDS TWO HUNDRED FIFTY THOUSAND DOLLARS. (B) TO A PROPERTY OWNER UNLESS: (I) THE PROPERTY IS USED FOR RESIDEN- TIAL PURPOSES; (II) NOT MORE THAN TWENTY PERCENT OF THE RENTAL INCOME, IF ANY, FROM THE PROPERTY IS FROM RENTAL FOR NONRESIDENTIAL PURPOSES; AND (III) THE PROPERTY IS OCCUPIED AS A RESIDENCE IN WHOLE OR IN PART BY ONE OR MORE OF THE OWNERS OF THE PROPERTY. (C) TO AN INDIVIDUAL WITH RESPECT TO WHOM A DEDUCTION UNDER SUBSECTION (C) OF SECTION ONE HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE IS ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR. (D) WITH RESPECT TO A RESIDENCE THAT IS WHOLLY EXEMPTED FROM REAL PROPERTY TAXATION. (E) TO AN INDIVIDUAL WHO IS NOT A RESIDENT INDIVIDUAL OF THE STATE FOR THE ENTIRE TAXABLE YEAR. (8) THE RIGHT TO CLAIM A CREDIT OR THE PORTION OF A CREDIT, WHERE SUCH CREDIT HAS BEEN DIVIDED UNDER THIS SUBSECTION, SHALL BE PERSONAL TO THE QUALIFIED TAXPAYER AND SHALL NOT SURVIVE HIS OR HER DEATH, BUT SUCH S. 2509--B 116 RIGHT MAY BE EXERCISED ON BEHALF OF A CLAIMANT BY HIS OR HER LEGAL GUAR- DIAN OR ATTORNEY IN FACT DURING HIS OR HER LIFETIME. (9) IF A QUALIFIED TAXPAYER IS NOT REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE, A CLAIM FOR A CREDIT MAY BE TAKEN ON A RETURN FILED WITH THE COMMISSIONER WITHIN THREE YEARS FROM THE TIME IT WOULD HAVE BEEN REQUIRED THAT A RETURN BE FILED PURSU- ANT TO SUCH SECTION HAD THE QUALIFIED TAXPAYER HAD A TAXABLE YEAR ENDING ON DECEMBER THIRTY-FIRST. RETURNS UNDER THIS PARAGRAPH SHALL BE IN SUCH FORM AS SHALL BE PRESCRIBED BY THE COMMISSIONER, WHO SHALL MAKE AVAIL- ABLE SUCH FORMS AND INSTRUCTIONS FOR FILING SUCH RETURNS. (10) THE COMMISSIONER MAY REQUIRE A QUALIFIED TAXPAYER TO FURNISH THE FOLLOWING INFORMATION IN SUPPORT OF HIS OR HER CLAIM FOR CREDIT UNDER THIS SUBSECTION: QUALIFIED GROSS INCOME; REAL PROPERTY TAXES LEVIED OR THAT WOULD HAVE BEEN LEVIED IN THE ABSENCE OF AN EXEMPTION FROM REAL PROPERTY TAX PURSUANT TO SECTION FOUR HUNDRED SIXTY-SEVEN OF THE REAL PROPERTY TAX LAW; AND ALL OTHER INFORMATION WHICH MAY BE REQUIRED BY THE COMMISSIONER TO DETERMINE THE CREDIT. (11) THE PROVISIONS OF THIS ARTICLE, INCLUDING THE PROVISIONS OF SECTIONS SIX HUNDRED FIFTY-THREE, SIX HUNDRED FIFTY-EIGHT, AND SIX HUNDRED FIFTY-NINE OF THIS ARTICLE AND THE PROVISIONS OF PART SIX OF THIS ARTICLE RELATING TO PROCEDURE AND ADMINISTRATION, INCLUDING THE JUDICIAL REVIEW OF THE DECISIONS OF THE COMMISSIONER, EXCEPT SO MUCH OF SECTION SIX HUNDRED EIGHTY-SEVEN OF THIS ARTICLE WHICH PERMITS A CLAIM FOR CREDIT OR REFUND TO BE FILED AFTER THE PERIOD PROVIDED FOR IN PARA- GRAPH EIGHT OF THIS SUBSECTION AND EXCEPT SECTIONS SIX HUNDRED FIFTY- SEVEN, SIX HUNDRED EIGHTY-EIGHT AND SIX HUNDRED NINETY-SIX OF THIS ARTI- CLE, SHALL APPLY TO THE PROVISIONS OF THIS SUBSECTION IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN INCORPORATED IN FULL INTO THIS SUBSECTION AND HAD EXPRESSLY REFERRED TO THE CREDIT ALLOWED OR RETURNS FILED UNDER THIS SUBSECTION, EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS SUBSECTION OR IS NOT RELEVANT TO THIS SUBSECTION. AS USED IN SUCH SECTIONS AND SUCH PART, THE TERM "TAXPAYER" SHALL INCLUDE A QUALIFIED TAXPAYER UNDER THIS SUBSECTION AND, NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (E) OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS ARTICLE, WHERE A QUALIFIED TAXPAYER HAS PROTESTED THE DENIAL OF A CLAIM FOR CREDIT UNDER THIS SUBSECTION AND THE TIME TO FILE A PETITION FOR REDETERMINATION OF A DEFICIENCY OR FOR REFUND HAS NOT EXPIRED, HE OR SHE SHALL, SUBJECT TO SUCH CONDITIONS AS MAY BE SET BY THE COMMISSIONER, RECEIVE SUCH INFORMATION WHICH THE COMMISSIONER FINDS IS RELEVANT AND MATERIAL TO THE ISSUE OF WHETHER SUCH CLAIM WAS PROPERLY DENIED. (12) THE COMMISSIONER SHALL PREPARE A WRITTEN REPORT AFTER DECEMBER THIRTY-FIRST OF EACH CALENDAR YEAR, WHICH SHALL CONTAIN STATISTICAL INFORMATION REGARDING THE CREDITS GRANTED ON OR BEFORE SUCH DATES UNDER THIS SUBSECTION DURING SUCH CALENDAR YEAR. COPIES OF THE REPORT SHALL BE SUBMITTED BY THE COMMISSIONER TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE WITHIN FORTY-FIVE DAYS OF DECEMBER THIRTY-FIRST. SUCH REPORT SHALL CONTAIN, BUT NEED NOT BE LIMITED TO, THE NUMBER OF CREDITS AND THE AVERAGE AMOUNT OF SUCH CREDITS ALLOWED; AND OF THOSE, THE NUMBER OF CREDITS AND THE AVERAGE AMOUNT OF SUCH CREDITS ALLOWED TO QUALIFIED TAXPAYERS IN EACH COUNTY; AND OF THOSE, THE NUMBER OF CREDITS AND THE AVERAGE AMOUNT OF SUCH CREDITS ALLOWED TO QUALIFIED TAXPAYERS WHOSE S. 2509--B 117 QUALIFIED GROSS INCOME FALLS WITHIN EACH OF THE QUALIFIED GROSS INCOME RANGES SET FORTH IN THIS SUBSECTION. (13) IN THE CASE OF A TAXPAYER WHO HAS ITEMIZED DEDUCTIONS FROM FEDER- AL ADJUSTED GROSS INCOME, AND WHOSE FEDERAL ITEMIZED DEDUCTIONS INCLUDE AN AMOUNT FOR REAL ESTATE TAXES PAID, THE NEW YORK ITEMIZED DEDUCTION OTHERWISE ALLOWABLE UNDER SECTION SIX HUNDRED FIFTEEN OF THIS CHAPTER SHALL BE REDUCED BY THE AMOUNT OF THE CREDIT CLAIMED UNDER THIS SUBSECTION. § 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2021. § 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 UU of this act shall be as specifically set forth in the last section of such Parts.
2021-S2509C (ACTIVE) - Details
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2021-S2509C (ACTIVE) - Summary
Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2021-2022 state fiscal year; extends the top rate of income tax (Part A); imposes a pass-through entity tax (Part C); relates to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D)
2021-S2509C (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 2509--C A. 3009--C S E N A T E - A S S E M B L Y January 20, 2021 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to extending the top state income tax rate (Part A); intentionally omitted (Part B); to amend the tax law and the state finance law, in relation to the imposition of a pass-through entity tax (Part C); to amend the economic development law and the tax law, in relation to child care services expenditures under the excelsior jobs program and the employer provided child care credit (Part D); to amend the tax law, in relation to an exemption from certain franchise taxes (Part E); to amend the tax law, in relation to the empire state film production credit and the empire state film post production credit (Part F); to amend the tax law, in relation to wage filer reporting and reconciliation (Part G); inten- tionally omitted (Part H); intentionally omitted (Part I); to amend the tax law, in relation to imposing sales tax on admissions to race tracks and simulcast facilities; and to repeal section 227, section 306, section 406, subparagraph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel wagering and breeding law, relating to certain taxes on admissions to race tracks and simulcast facilities (Part J); intentionally omitted (Part K); intentionally omitted (Part L); to amend the tax law, in relation to exempting from sales and use tax
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12574-05-1 S. 2509--C 2 A. 3009--C certain tangible personal property or services (Part M); to amend the tax law, in relation to increasing the total dollar amount for vendors' gross receipts necessary for registration filing (Part N); to amend the tax law, in relation to imposing liability for real estate transfer taxes on responsible persons, prohibiting grantors from pass- ing real estate transfer tax to grantees, and exempting certain organ- izations from the LLC disclosure requirement (Part O); to amend the tax law, in relation to restrictions on certain retail dealers whose registrations have been revoked or who have been forbidden from sell- ing cigarettes or tobacco products (Part P); to amend the tax law, in relation to the timing and method for filing certain returns (Part Q); to amend the tax law, in relation to determining liability for the collection of taxes on medallion taxicab trips and congestion surcharges (Part R); to amend the tax law, in relation to increasing tax return preparer penalties for failure to register and requiring the display of certain documents by tax return preparers (Part S); intentionally omitted (Part T); to amend the real property law and the tax law, in relation to electronic submission of consolidated real property transfer forms; and to repeal certain provisions of the real property law relating thereto (Part U); to amend the real property law, in relation to exemptions for manufactured home park owners or operators and mobile home owners; and to repeal certain provisions of such law relating thereto (Part V); to amend the real property tax law, in relation to facilitating the administration of the real prop- erty tax, and to repeal section 307 of such law relating thereto (Part W); to amend the real property tax law and the general municipal law, in relation to promoting the development of renewable energy projects (Part X); to amend the racing, pari-mutuel wagering and breeding law, in relation to regulation of sports wagering (Part Y); authorizing a request for information related to gaming facility licenses (Part Z); intentionally omitted (Part AA); to amend the tax law, in relation to restrictions on certain lottery draw game offerings (Part BB); to amend the racing, pari-mutuel wagering and breeding law, in relation to the office of the gaming inspector general; and to repeal certain provisions of such law relating thereto (Part CC); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out- of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and 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 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 DD); to amend chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, in relation to extending the alternative fuels tax exemptions for five years (Part EE); to amend the tax law and chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit, in relation to extending the provisions of such credit through tax year 2024 (Part FF); to amend the public housing law, in relation to extending the credit against income tax for persons or entities investing in low-income housing (Part GG); to S. 2509--C 3 A. 3009--C amend chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to the effec- tiveness thereof; and to amend the tax law, in relation to increasing the aggregate cap on the amount of such credit (Part HH); to amend the tax law, in relation to extending hire a veteran credit for an addi- tional year (Part II); to amend chapter 61 of the laws of 2011 amend- ing the economic development law, the tax law and the real property tax law, relating to establishing the economic transformation and facility redevelopment program and providing tax benefits under that program and to amend the economic development law, in relation to extending the tax credits under the economic transformation and facil- ity redevelopment program (Part JJ); to amend the general business law, in relation to requiring the implementation of the secure choice program by a certain date (Part KK); to amend the racing, pari-mutuel wagering and breeding law, in relation to modifying certain racing support payments (Part LL); to amend the tax law, in relation to exempting breast pump replacement parts and certain supplies from sales and compensating use taxes (Part MM); clarifying for certain tax credit programs that work performed remotely within the state due to the outbreak of novel coronavirus, COVID-19, qualifies for certain tax credit programs; and providing for the repeal of such provisions upon expiration thereof (Part NN); to exempt certain underpayments from interest accumulation (Part OO); to amend the economic development law and the tax law, in relation to establishing the restaurant return-to- work tax credit program (Subpart A); and to amend the tax law and the state finance law, in relation to establishing the New York city musical and theatrical production tax credit and establishing the New York state council on the arts cultural program fund; and providing for the repeal of such provisions upon the expiration thereof (Subpart B) (Part PP); to amend the tax law, in relation to modifying interest rules on overpayments of personal income and corporate tax (Part QQ); to amend the tax law, in relation to providing a modification reducing federal adjusted gross income by the amount of the COVID-19 family death benefit paid pursuant to the metropolitan transportation author- ity program established in 2020 for purposes of determining New York state taxable income (Part RR); to amend the tax law, in relation to extending sales tax exemption for certain food and drink vending machines (Part SS); authorizing the creation of state debt in the amount of three billion dollars, in relation to creating the environ- mental bond act of 2022 "restore mother nature" for the purposes of environmental improvements that preserve, enhance, and restore New York's natural resources and reduce the impact of climate change; and providing for the submission to the people of a proposition or ques- tion therefor to be voted upon at the general election to be held in November, 2022 (Part TT); to amend the environmental conservation law and the state finance law, in relation to the implementation of the environmental bond act of 2022 "restore mother nature" (Part UU); to amend the New York state urban development corporation act, in relation to establishing the COVID-19 pandemic small business recovery grant program (Part VV); to amend the real property tax law, in relation to subjecting certain state lands in Orange county to real property taxation (Part WW); to amend the transportation law, in relation to increasing the maximum amount of grants and loans under the airport improvement and revitalization grant and loan program (Part XX); in relation to renaming the Newkirk Avenue subway station on the IRT Nostrand Avenue line the "Newkirk Avenue - Little Haiti S. 2509--C 4 A. 3009--C station" (Part YY); to amend the vehicle and traffic law, in relation to indemnity bonds or insurance policies for commuter vans (Part ZZ); intentionally omitted (Part AAA); to amend the executive law, the criminal procedure law, the general municipal law, the public authori- ties law and the civil service law, in relation to police officers; and to repeal certain provisions of the executive law relating thereto (Part BBB); to amend the tax law, in relation to the rehabilitation of historic properties tax credit (Part CCC); to amend the tax law and the administrative code of the city of New York, in relation to investment income (Part DDD); establishing the excluded workers fund to provide payments to workers who suffered a loss of work-related earnings or a major source of household income during a state of emer- gency declared by the governor and who are otherwise ineligible for unemployment insurance or other state or federal unemployment benefits (Part EEE); to amend part C of chapter 57 of the laws of 2006 relating to establishing a cost of living adjustment for designated human services programs, in relation to extending COLA provisions for the purpose of establishing rates of payments and in relation to the effectiveness thereof (Part FFF); to amend the state finance law, in relation to aid and incentives for municipalities base level grants (Part GGG); to amend the tax law, in relation to the amount of the business income base and capital base for the computation of tax (Part HHH); to amend the tax law, in relation to the real property tax relief credit (Part III); to provide for the administration of certain funds and accounts related to the 2021-2022 budget, authorizing certain payments and transfers; to amend the state finance law, in relation to the administration of certain funds and accounts; to amend part D of chapter 389 of the laws of 1997 relating to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of certain bonds or notes; to amend part Y of chapter 61 of the laws of 2005, relating to providing for the administration of certain funds and accounts related to the 2005-2006 budget, in relation to the issuance of certain bonds or notes; to amend the public authorities law, in relation to the issuance of certain bonds or notes; to amend the New York state medical care facilities finance agency act, in relation to the issu- ance of certain bonds or notes; to amend the New York state urban development corporation act, in relation to the issuance of certain bonds or notes; to amend chapter 329 of the laws of 1991, amending the state finance law and other laws relating to the establishment of the dedicated highway and bridge trust fund, in relation to the issuance of certain bonds or notes; to amend the public authorities law, in relation to the issuance of certain bonds or notes; to amend the New York state urban development corporation act, in relation to the issu- ance of certain bonds or notes; to amend the private housing finance law, in relation to housing program bonds and notes; to amend the New York state urban development corporation act, in relation to personal income tax notes for 2022, in relation to authorizing the dormitory authority of the state of New York and the urban development corpo- ration to enter into line of credit facilities for 2022, and in relation to state-supported debt issued during the 2022 fiscal year; to amend the state finance law, in relation to payments of bonds; to amend the state finance law, in relation to the mental health services fund; to amend the public health law, in relation to secured hospital project bonds; to amend the state finance law, in relation to the issuance of revenue bonds; to repeal paragraph c of subdivision 5 of S. 2509--C 5 A. 3009--C section 89-b of the state finance law relating to the dedicated high- way and bridge trust fund; to repeal subdivision (j) of section 92-dd of the state finance law relating to the HCRA resources fund; to repeal subdivision 3-a of the public health law relating to eligible secured hospital borrower; and providing for the repeal of certain provisions upon expiration thereof (Part JJJ); to authorize certain employers to provide a temporary retirement incentive for certain public employees in the city of New York (Subpart A); and an age 55/25 years temporary retirement incentive for certain public employees in the city of New York (Subpart B)(Part KKK); to amend the racing, pari- mutuel wagering and breeding law, in relation to the utilization of funds in the Catskill and Capital regions off-track betting corpo- ration's capital acquisition funds; and providing for the repeal of such provisions upon the expiration thereof (Part LLL); to amend chap- ter 141 of the laws of 1994, amending the legislative law and the state finance law relating to the operation and administration of the legislature, in relation to extending such provisions (Part MMM); to amend the correction law, in relation to restricting the use of segre- gated confinement and creating alternative therapeutic and rehabilita- tive confinement options (Part NNN); and to amend the racing, pari-mu- tuel wagering and breeding law, in relation to the tax on gaming revenues; and providing for the repeal of such provisions upon the expiration thereof (Part OOO) 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 2021-2022 state fiscal year. Each component is wholly contained within a Part identified as Parts A through OOO. The effective date for each partic- ular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, including the effective date of the Part, which makes 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. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law, clauses (iv), (v), (vi) and (vii) as amended by section 1 of part P of chapter 59 of the laws of 2019 and clause (viii) as added by section 1 of part R of chapter 59 of the laws of 2017, are amended and a new clause (ix) is added to read as follows: (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over S. 2509--C 6 A. 3009--C $23,600 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over $27,900 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over $43,000 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over $161,550 Over $323,200 but not over $19,403 plus 6.85% of excess $2,155,350 over $323,200 OVER $2,155,350 BUT NOT OVER $144,905 PLUS 9.65% OF EXCESS OVER $5,000,000 $2,155,350 OVER $5,000,000 BUT NOT OVER $419,414 PLUS 10.30% OF EXCESS OVER $25,000,000 $5,000,000 OVER $25,000,000 $2,479,414 PLUS 10.90% OF EXCESS OVER $25,000,000 [Over $2,155,350 $144,905 plus 8.82% of excess over $2,155,350] (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over $27,900 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over $161,550 Over $323,200 but not over $19,124 plus $2,155,350 6.85% of excess over $323,200 OVER $2,155,350 BUT NOT OVER $144,626 PLUS 9.65% OF EXCESS OVER $5,000,000 $2,155,350 OVER $5,000,000 BUT NOT OVER $419,135 PLUS 10.30% OF EXCESS OVER $25,000,000 $5,000,000 OVER $25,000,000 $2,479,135 PLUS 10.90% OF EXCESS OVER $25,000,000 [Over $2,155,350 $144,626 plus 8.82% of excess over $2,155,350] (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over $27,900 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over $161,550 Over $323,200 but not over $18,834 plus 6.85% of $2,155,350 excess over $323,200 OVER $2,155,350 BUT NOT OVER $144,336 PLUS 9.65% OF EXCESS OVER $5,000,000 $2,155,350 OVER $5,000,000 BUT NOT OVER $418,845 PLUS 10.30% OF EXCESS OVER S. 2509--C 7 A. 3009--C $25,000,000 $5,000,000 OVER $25,000,000 $2,478,845 PLUS 10.90% OF EXCESS OVER $25,000,000 [Over $2,155,350 $144,336 plus 8.82% of excess over $2,155,350] (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over $27,900 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over $161,550 Over $323,200 but not over $18,544 plus 6.85% of excess over $2,155,350 $323,200 OVER $2,155,350 BUT NOT OVER $144,047 PLUS 9.65% OF EXCESS OVER $5,000,000 $2,155,350 OVER $5,000,000 BUT NOT OVER $418,555 PLUS 10.30% OF EXCESS OVER $25,000,000 $5,000,000 OVER $25,000,000 $2,478,555 PLUS 10.90% OF EXCESS OVER $25,000,000 [Over $2,155,350 $144,047 plus 8.82% of excess over $2,155,350] (viii) For taxable years beginning after two thousand twenty-four AND BEFORE TWO THOUSAND TWENTY-EIGHT the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over $17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over $23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over $27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over $161,550 Over $323,200 BUT NOT OVER $18,252 plus 6.85% of excess over $2,155,350 $323,200 OVER $2,155,350 BUT NOT OVER $143,754 PLUS 9.65% OF EXCESS OVER $5,000,000 $2,155,350 OVER $5,000,000 BUT NOT OVER $418,263 PLUS 10.30% OF EXCESS OVER $25,000,000 $5,000,000 OVER $25,000,000 $2,478,263 PLUS 10.90% OF EXCESS OVER $25,000,000 (IX) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-SEVEN THE FOLLOWING RATES SHALL APPLY: IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS: NOT OVER $17,150 4% OF THE NEW YORK TAXABLE INCOME OVER $17,150 BUT NOT OVER $23,600 $686 PLUS 4.5% OF EXCESS OVER $17,150 OVER $23,600 BUT NOT OVER $27,900 $976 PLUS 5.25% OF EXCESS OVER S. 2509--C 8 A. 3009--C $23,600 OVER $27,900 BUT NOT OVER $161,550 $1,202 PLUS 5.5% OF EXCESS OVER $27,900 OVER $161,550 BUT NOT OVER $323,200 $8,553 PLUS 6.00% OF EXCESS OVER $161,550 OVER $323,200 BUT NOT OVER $18,252 PLUS 6.85% OF EXCESS $2,155,350 OVER $323,200 OVER $2,155,350 $143,754 PLUS 8.82% OF EXCESS OVER $2,155,350 § 2. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (b) of section 601 of the tax law, clauses (iv), (v), (vi) and (vii) as amended by section 2 of part P of chapter 59 of the laws of 2019 and clause (viii) as added by section 2 of part R of chapter 59 of the laws of 2017, are amended and a new clause (ix) is added to read as follows: (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over $32,200 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over $107,650 Over $269,300 but not over $16,304 plus 6.85% of excess over $1,616,450 $269,300 OVER $1,616,450 BUT NOT OVER $108,584 PLUS 9.65% OF EXCESS OVER $5,000,000 $1,616,450 OVER $5,000,000 BUT NOT OVER $435,097 PLUS 10.30% OF EXCESS OVER $25,000,000 $5,000,000 OVER $25,000,000 $2,495,097 PLUS 10.90% OF EXCESS OVER $25,000,000 [Over $1,616,450 $108,584 plus 8.82% of excess over $1,616,450] (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over $20,900 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over $107,650 Over $269,300 but not over $16,079 plus 6.85% of excess $1,616,450 over $269,300 OVER $1,616,450 BUT NOT OVER $108,359 PLUS 9.65% OF EXCESS OVER $5,000,000 $1,616,450 S. 2509--C 9 A. 3009--C OVER $5,000,000 BUT NOT OVER $434,871 PLUS 10.30% OF EXCESS OVER $25,000,000 $5,000,000 OVER $25,000,000 $2,494,871 PLUS 10.90% OF EXCESS OVER $25,000,000 [Over $1,616,450 $108,359 plus 8.82% of excess over $1,616,450] (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over $20,900 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over $107,650 Over $269,300 but not over $15,845 plus 6.85% of excess $1,616,450 over $269,300 OVER $1,616,450 BUT NOT OVER $108,125 PLUS 9.65% OF EXCESS OVER $5,000,000 $1,616,450 OVER $5,000,000 BUT NOT OVER $434,638 PLUS 10.30% OF EXCESS OVER $25,000,000 $5,000,000 OVER $25,000,000 $2,494,638 PLUS 10.90% OF EXCESS OVER $25,000,000 [Over $1,616,450 $108,125 plus 8.82% of excess over $1,616,450] (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over $20,900 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over $107,650 Over $269,300 but not over $15,612 plus 6.85% of excess $1,616,450 over $269,300 OVER $1,616,450 BUT NOT OVER $107,892 PLUS 9.65% OF EXCESS OVER $5,000,000 $1,616,450 OVER $5,000,000 BUT NOT OVER $434,404 PLUS 10.30% OF EXCESS OVER $25,000,000 $5,000,000 OVER $25,000,000 $2,494,404 PLUS 10.90% OF EXCESS OVER $25,000,000 [Over $1,616,450 $107,892 plus 8.82% of excess over $1,616,450] (viii) For taxable years beginning after two thousand twenty-four AND BEFORE TWO THOUSAND TWENTY-EIGHT the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over S. 2509--C 10 A. 3009--C $12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over $17,650 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over $20,900 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over $107,650 Over $269,300 BUT NOT OVER $15,371 plus 6.85% of excess over $1,616,450 $269,300 OVER $1,616,450 BUT NOT OVER $107,651 PLUS 9.65% OF EXCESS OVER $5,000,000 $1,616,450 OVER $5,000,000 BUT NOT OVER $434,163 PLUS 10.30% OF EXCESS OVER $25,000,000 $5,000,000 OVER $25,000,000 $2,494,163 PLUS 10.90% OF EXCESS OVER $25,000,000 (IX) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-SEVEN THE FOLLOWING RATES SHALL APPLY: IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS: NOT OVER $12,800 4% OF THE NEW YORK TAXABLE INCOME OVER $12,800 BUT NOT OVER $512 PLUS 4.5% OF EXCESS OVER $17,650 $12,800 OVER $17,650 BUT NOT OVER $730 PLUS 5.25% OF EXCESS OVER $20,900 $17,650 OVER $20,900 BUT NOT OVER $901 PLUS 5.5% OF EXCESS OVER $107,650 $20,900 OVER $107,650 BUT NOT OVER $5,672 PLUS 6.00% OF EXCESS $269,300 OVER $107,650 OVER $269,300 BUT NOT OVER $15,371 PLUS 6.85% OF EXCESS $1,616,450 OVER $269,300 OVER $1,616,450 $107,651 PLUS 8.82% OF EXCESS OVER $1,616,450 § 3. Clauses (iv), (v), (vi), (vii) and (viii) of subparagraph (B) of paragraph 1 of subsection (c) of section 601 of the tax law, clauses (iv), (v), (vi) and (vii) as amended by section 3 of part P of chapter 59 of the laws of 2019 and clause (viii) as added by section 3 of part R of chapter 59 of the laws of 2017, are amended and a new clause (ix) is added to read as follows: (iv) For taxable years beginning in two thousand twenty-one the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over $13,900 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over $21,400 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over $80,650 Over $215,400 but not over $13,109 plus 6.85% of excess $1,077,550 over $215,400 S. 2509--C 11 A. 3009--C OVER $1,077,550 BUT NOT OVER $72,166 PLUS 9.65% OF EXCESS OVER $5,000,000 $1,077,550 OVER $5,000,000 BUT NOT OVER $450,683 PLUS 10.30% OF EXCESS OVER $25,000,000 $5,000,000 OVER $25,000,000 $2,510,683 PLUS 10.90% OF EXCESS OVER $25,000,000 [Over $1,077,550 $72,166 plus 8.82% of excess over $1,077,550] (v) For taxable years beginning in two thousand twenty-two the follow- ing rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over $13,900 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over $80,650 Over $215,400 but not over $12,926 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 BUT NOT OVER $71,984 PLUS 9.65% OF EXCESS OVER $5,000,000 $1,077,550 OVER $5,000,000 BUT NOT OVER $450,500 PLUS 10.30% OF EXCESS OVER $25,000,000 $5,000,000 OVER $25,000,000 $2,510,500 PLUS 10.90% OF EXCESS OVER $25,000,000 [Over $1,077,550 $71,984 plus 8.82% of excess over $1,077,550] (vi) For taxable years beginning in two thousand twenty-three the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over $13,900 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over $80,650 Over $215,400 but not over $12,738 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 BUT NOT OVER $71,796 PLUS 9.65% OF EXCESS OVER $5,000,000 $1,077,550 OVER $5,000,000 BUT NOT OVER $450,312 PLUS 10.30% OF EXCESS OVER $25,000,000 $5,000,000 OVER $25,000,000 $2,510,312 PLUS 10.90% OF EXCESS OVER $25,000,000 [Over $1,077,550 $71,796 plus 8.82% of excess over $1,077,550] (vii) For taxable years beginning in two thousand twenty-four the following rates shall apply: S. 2509--C 12 A. 3009--C If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over $13,900 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over $80,650 Over $215,400 but not over $12,550 plus 6.85% of excess $1,077,550 over $215,400 OVER $1,077,550 BUT NOT OVER $71,608 PLUS 9.65% OF EXCESS OVER $5,000,000 $1,077,550 OVER $5,000,000 BUT NOT OVER $450,124 PLUS 10.30% OF EXCESS OVER $25,000,000 $5,000,000 OVER $25,000,000 $2,510,124 PLUS 10.90% OF EXCESS OVER $25,000,000 [Over $1,077,550 $71,608 plus 8.82% of excess over $1,077,550] (viii) For taxable years beginning after two thousand twenty-four AND BEFORE TWO THOUSAND TWENTY-EIGHT the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over $8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over $11,700 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over $13,900 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over $80,650 Over $215,400 BUT NOT OVER $12,356 plus 6.85% of excess over $1,077,550 $215,400 OVER $1,077,550 BUT NOT OVER $71,413 PLUS 9.65% OF EXCESS OVER $5,000,000 $1,077,550 OVER $5,000,000 BUT NOT OVER $449,929 PLUS 10.30% OF EXCESS OVER $25,000,000 $5,000,000 OVER $25,000,000 $2,509,929 PLUS 10.90% OF EXCESS OVER $25,000,000 (IX) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-SEVEN THE FOLLOWING RATES SHALL APPLY: IF THE NEW YORK TAXABLE INCOME IS: THE TAX IS: NOT OVER $8,500 4% OF THE NEW YORK TAXABLE INCOME OVER $8,500 BUT NOT OVER $11,700 $340 PLUS 4.5% OF EXCESS OVER $8,500 OVER $11,700 BUT NOT OVER $13,900 $484 PLUS 5.25% OF EXCESS OVER $11,700 OVER $13,900 BUT NOT OVER $80,650 $600 PLUS 5.50% OF EXCESS OVER $13,900 OVER $80,650 BUT NOT OVER $215,400 $4,271 PLUS 6.00% OF EXCESS OVER $80,650 OVER $215,400 BUT NOT OVER $12,356 PLUS 6.85% OF EXCESS $1,077,550 OVER $215,400 OVER $1,077,550 $71,413 PLUS 8.82% OF EXCESS OVER $1,077,550 S. 2509--C 13 A. 3009--C § 4. Subparagraphs (D) and (E) of paragraph 1 of subsection (d-1) of section 601 of the tax law, subparagraph (D) as amended by section 4 of part P of chapter 59 of the laws of 2019 and subparagraph (E) as added by section 7 of part A of chapter 56 of the laws of 2011, are amended to read as follows: (D) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (a) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (a) of this section less the sum of the tax table benefits in subparagraphs (A), (B) and (C) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over two million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after January first, two thousand twelve and before January first, two thou- sand [twenty-five] TWENTY-ONE AND FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT. (E) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 9.65 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B), AND (C) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TWO MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO THE TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT. (F) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 10.30 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B), (C) AND (E) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER FIVE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO THE TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT. (G) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 10.90 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B), (C), (E) AND (F) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS S. 2509--C 14 A. 3009--C COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TWENTY-FIVE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO THE TAXABLE YEARS BEGIN- NING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE AND BEFORE JANU- ARY FIRST, TWO THOUSAND TWENTY-EIGHT. (H) Provided, however, the total tax prior to the application of any tax credits shall not exceed the highest rate of tax set forth in the tax tables in subsection (a) of this section multiplied by the taxpay- er's taxable income. § 5. Subparagraphs (C) and (D) of paragraph 2 of subsection (d-1) of section 601 of the tax law, subparagraph (C) as amended by section 5 of part P of chapter 59 of the laws of 2019 and subparagraph (D) as added by section 7 of part A of chapter 56 of the laws of 2011, are amended to read as follows: (C) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (b) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (b) of this section less the sum of the tax table benefits in subparagraphs (A) and (B) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one million five hundred thousand dollars and the denominator is fifty thou- sand dollars. This subparagraph shall apply only to taxable years begin- ning on or after January first, two thousand twelve and before January first, two thousand [twenty-five] TWENTY-ONE AND FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT. (D) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 9.65 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE MILLION FIVE HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO THE TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT. (E) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 10.30 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (D) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER FIVE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO THE TAXABLE YEARS BEGINNING ON OR AFTER S. 2509--C 15 A. 3009--C JANUARY FIRST, TWO THOUSAND TWENTY-ONE AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT. (F) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 10.90 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B), (D) AND (E) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TWENTY-FIVE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO THE TAXABLE YEARS BEGIN- NING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE AND BEFORE JANU- ARY FIRST, TWO THOUSAND TWENTY-EIGHT. (G) Provided, however, the total tax prior to the application of any tax credits shall not exceed the highest rate of tax set forth in the tax tables in subsection (b) of this section multiplied by the taxpay- er's taxable income. § 6. Subparagraphs (C) and (D) of paragraph 3 of subsection (d-1) of section 601 of the tax law, subparagraph (C) as amended by section 6 of part P of chapter 59 of the laws of 2019 and subparagraph (D) as added by section 7 of part A of chapter 56 of the laws of 2011, are amended to read as follows: (C) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (c) of this section not subject to the 8.82 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (c) of this section less the sum of the tax table benefits in subparagraphs (A) and (B) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after January first, two thousand twelve and before January first, two thou- sand [twenty-five] TWENTY-ONE AND FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT. (D) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 9.65 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE MILLION FIVE HUNDRED THOUSAND DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO THE TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT. (E) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION S. 2509--C 16 A. 3009--C (A) OF THIS SECTION NOT SUBJECT TO THE 10.30 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (D) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER FIVE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO THE TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT. (F) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO THE 10.90 PERCENT RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH RATE AND (II) THE DOLLAR DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE INCOME SET FORTH IN THE TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B), (D) AND (E) OF THIS PARAGRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF FIFTY THOUSAND DOLLARS OR EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER TWENTY-FIVE MILLION DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS. THIS SUBPARAGRAPH SHALL APPLY ONLY TO THE TAXABLE YEARS BEGIN- NING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE AND BEFORE JANU- ARY FIRST, TWO THOUSAND TWENTY-EIGHT. (G) Provided, however, the total tax prior to the application of any tax credits shall not exceed the highest rate of tax set forth in the tax tables in subsection (c) of this section multiplied by the taxpay- er's taxable income. § 7. Notwithstanding any provision of law to the contrary, the method of determining the amount to be deducted and withheld from wages on account of taxes imposed by or pursuant to the authority of article 22 of the tax law in connection with the implementation of the provisions of this act shall be prescribed by the commissioner of taxation and finance with due consideration to the effect such withholding tables and methods would have on the receipt and amount of revenue. The commissioner of taxation and finance shall adjust such withholding tables and methods in regard to taxable years beginning in 2021 and after in such manner as to result, so far as practicable, in withholding from an employee's wages an amount substantially equivalent to the tax reasonably estimated to be due for such taxable years as a result of the provisions of this act. Any such changes in withholding tables and methods for tax year 2021 shall be adopted and effective as soon as practicable. Notwithstanding any provision of the state administrative procedure act to the contrary, the commissioner is authorized to prescribe such withholding tables and methods without adopting a regu- lation. § 8. The additions to tax imposed by subsection (c) of section 685 of the tax law shall not apply to any installments of estimated tax due on or before September fifteenth, two thousand twenty-one if the underpay- ment is the result of the enactment of the additional tax for the tax year two thousand twenty-one prescribed by this act, provided that the taxpayer makes those payments by September fifteenth, two thousand twen- ty-one. S. 2509--C 17 A. 3009--C § 9. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2021. PART B Intentionally Omitted PART C Section 1. The tax law is amended by adding a new article 24-A to read as follows: ARTICLE 24-A PASS-THROUGH ENTITY TAX SECTION 860. DEFINITIONS. 861. PASS-THROUGH ENTITY TAX ELECTION. 862. IMPOSITION AND RATE OF TAX. 863. PASS-THROUGH ENTITY TAX CREDIT. 864. PAYMENT OF ESTIMATED TAX. 865. FILING OF RETURN AND PAYMENT OF TAX. 866. PROCEDURAL PROVISIONS. § 860. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE: (A) ELIGIBLE PARTNERSHIP. ELIGIBLE PARTNERSHIP MEANS ANY PARTNERSHIP AS PROVIDED FOR IN SECTION 7701(A)(2) OF THE INTERNAL REVENUE CODE THAT HAS A FILING REQUIREMENT UNDER PARAGRAPH ONE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS CHAPTER OTHER THAN A PUBLICLY TRADED PARTNERSHIP AS DEFINED IN SECTION 7704 OF THE INTERNAL REVENUE CODE. AN ELIGIBLE PARTNERSHIP INCLUDES ANY ENTITY, INCLUDING A LIMITED LIABILITY COMPANY, TREATED AS A PARTNERSHIP FOR FEDERAL INCOME TAX PURPOSES THAT OTHERWISE MEETS THE REQUIREMENTS OF THIS SUBDIVISION. (B) ELIGIBLE S CORPORATION. ELIGIBLE S CORPORATION MEANS ANY NEW YORK S CORPORATION AS DEFINED PURSUANT TO SUBDIVISION ONE-A OF SECTION TWO HUNDRED EIGHT OF THIS CHAPTER THAT IS SUBJECT TO TAX UNDER SECTION TWO HUNDRED NINE OF THIS CHAPTER. AN ELIGIBLE S CORPORATION INCLUDES ANY ENTITY, INCLUDING A LIMITED LIABILITY COMPANY, TREATED AS AN S CORPO- RATION FOR FEDERAL INCOME TAX PURPOSES THAT OTHERWISE MEETS THE REQUIRE- MENTS OF THIS SUBDIVISION. (C) ELECTING PARTNERSHIP. ELECTING PARTNERSHIP MEANS ANY ELIGIBLE PARTNERSHIP THAT MADE A VALID, TIMELY ELECTION PURSUANT TO SECTION EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE. (D) ELECTING S CORPORATION. ELECTING S CORPORATION MEANS ANY ELIGIBLE S CORPORATION THAT MADE A VALID, TIMELY ELECTION PURSUANT TO SECTION EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE. (E) TAXPAYER. TAXPAYER MEANS ANY ELECTING PARTNERSHIP OR ELECTING S CORPORATION. (F) PASS-THROUGH ENTITY TAX. PASS-THROUGH ENTITY TAX MEANS THE TOTAL TAX IMPOSED BY THIS ARTICLE ON ELECTING PARTNERSHIPS AND ELECTING S CORPORATIONS. (G) DIRECT SHARE OF PASS-THROUGH ENTITY TAX. DIRECT SHARE OF PASS- THROUGH ENTITY TAX MEANS THE PORTION OF PASS-THROUGH ENTITY TAX CALCU- LATED ON PASS-THROUGH ENTITY TAXABLE INCOME THAT IS ALSO INCLUDED IN THE TAXABLE INCOME OF A PARTNER OR MEMBER OF THE ELECTING PARTNERSHIP OR THE TAXABLE INCOME OF A SHAREHOLDER OF THE ELECTING S CORPORATION UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER. (H) PASS-THROUGH ENTITY TAXABLE INCOME. PASS-THROUGH ENTITY TAXABLE INCOME MEANS: (1) IN THE CASE OF AN ELECTING PARTNERSHIP, THE SUM OF (I) ALL ITEMS OF INCOME, GAIN, LOSS, OR DEDUCTION DERIVED FROM OR S. 2509--C 18 A. 3009--C CONNECTED WITH NEW YORK SOURCES TO THE EXTENT THEY ARE INCLUDED IN THE TAXABLE INCOME OF A NONRESIDENT PARTNER SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO UNDER PARAGRAPH ONE OF SUBSECTION (A) OF SECTION SIX HUNDRED THIRTY-TWO OF THIS CHAPTER; AND (II) ALL ITEMS OF INCOME, GAIN, LOSS, OR DEDUCTION TO THE EXTENT THEY ARE INCLUDED IN THE TAXABLE INCOME OF A RESIDENT PARTNER SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO OF THIS CHAP- TER. (2) IN THE CASE OF AN ELECTING S CORPORATION, THE SUM OF (I) ALL ITEMS OF INCOME, GAIN, LOSS, OR DEDUCTION DERIVED FROM OR CONNECTED WITH NEW YORK SOURCES TO THE EXTENT THEY WOULD BE INCLUDED UNDER PARAGRAPH TWO OF SUBSECTION (A) OF SECTION SIX HUNDRED THIRTY-TWO OF THIS CHAPTER IN THE TAXABLE INCOME OF A SHAREHOLDER SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER. (I) TAXABLE YEAR. AN ELECTING PARTNERSHIP'S OR ELECTING S CORPO- RATION'S TAXABLE YEAR PURSUANT TO THIS ARTICLE SHALL BE THE SAME AS THE ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES. § 861. PASS-THROUGH ENTITY TAX ELECTION. (A) ANY ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION SHALL BE ALLOWED TO MAKE AN ANNUAL ELECTION TO BE TAXED PURSUANT TO THIS ARTICLE. (B) IN ORDER TO BE EFFECTIVE, THE ANNUAL ELECTION MUST BE MADE (1) IF THE ENTITY IS AN S CORPORATION, BY ANY OFFICER, MANAGER OR SHAREHOLDER OF THE S CORPORATION WHO IS AUTHORIZED UNDER THE LAW OF THE STATE WHERE THE CORPORATION IS INCORPORATED OR UNDER THE S CORPORATION'S ORGANIZA- TIONAL DOCUMENTS TO MAKE THE ELECTION AND WHO REPRESENTS TO HAVING SUCH AUTHORIZATION UNDER PENALTY OF PERJURY; OR (2) IF THE ENTITY IS NOT AN S CORPORATION, BY ANY MEMBER, PARTNER, OWNER, OR OTHER INDIVIDUAL WITH AUTHORITY TO BIND THE ENTITY OR SIGN RETURNS PURSUANT TO SECTION SIX HUNDRED FIFTY-THREE OF THIS CHAPTER. (C) THE ANNUAL ELECTION MUST BE MADE BY THE DUE DATE OF THE FIRST ESTIMATED PAYMENT UNDER SECTION EIGHT HUNDRED SIXTY-FOUR OF THIS CHAPTER AND WILL TAKE EFFECT FOR THE CURRENT TAXABLE YEAR. ONLY ONE ELECTION MAY BE MADE DURING EACH CALENDAR YEAR. AN ELECTION MADE UNDER THIS SECTION IS IRREVOCABLE. § 862. IMPOSITION AND RATE OF TAX. A TAX IS HEREBY IMPOSED FOR EACH TAXABLE YEAR ON THE PASS-THROUGH ENTITY TAXABLE INCOME OF EVERY ELECTING PARTNERSHIP AND EVERY ELECTING S CORPORATION. THIS TAX SHALL BE IN ADDITION TO ANY OTHER TAXES IMPOSED UNDER THIS CHAPTER AND SHALL BE DETERMINED IN ACCORDANCE WITH THE FOLLOWING TABLE: FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU- SAND TWENTY-ONE: IF PASS-THROUGH ENTITY TAXABLE INCOME IS: NOT OVER $2,000,000 6.85% OF TAXABLE INCOME. OVER $2,000,000 BUT NOT OVER $5,000,000 $137,000 PLUS 9.65% OF THE EXCESS OVER $2,000,000. OVER $5,000,000 BUT NOT OVER $25,000,000 $426,500 PLUS 10.30% OF EXCESS OVER $5,000,000. OVER $25,000,000 $2,486,500 PLUS 10.90% OF THE EXCESS OVER $25,000,000. § 863. PASS-THROUGH ENTITY TAX CREDIT. (A) PERSONAL INCOME TAX CREDIT. (1) A TAXPAYER SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER THAT IS A DIRECT PARTNER OR MEMBER IN AN ELECTING PARTNERSHIP OR A DIRECT SHAREHOLDER OF AN ELECTING S CORPORATION SUBJECT TO TAX UNDER THIS ARTICLE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED PURSUANT TO ARTICLE TWENTY-TWO OF THIS CHAPTER, COMPUTED PURSUANT TO THE PROVISIONS OF SUBSECTION (KKK) OF SECTION SIX HUNDRED SIX OF THIS CHAP- TER. AN ENTITY THAT IS DISREGARDED FOR TAX PURPOSES WILL BE DISREGARDED FOR PURPOSES OF DETERMINING IF A TAXPAYER IS A DIRECT PARTNER OR MEMBER S. 2509--C 19 A. 3009--C OF AN ELECTING PARTNERSHIP OR DIRECT SHAREHOLDER OF AN ELECTING S CORPO- RATION. (2) LIMITATION ON CREDIT. NO CREDIT SHALL BE ALLOWED TO A TAXPAYER UNDER PARAGRAPH ONE OF THIS SUBSECTION UNLESS THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION PAID THE TAX IMPOSED UNDER THIS ARTICLE AND PROVIDED SUFFICIENT INFORMATION ON THE PASS-THROUGH ENTITY TAX RETURN AS PRESCRIBED BY THE COMMISSIONER TO IDENTIFY THAT TAXPAYER. SUCH INFORMA- TION SHALL INCLUDE, BUT NOT BE LIMITED TO, THE SOCIAL SECURITY NUMBER OR TAXPAYER IDENTIFICATION NUMBER OF THE ARTICLE TWENTY-TWO TAXPAYER WHO WILL CLAIM THE CREDIT (EVEN IN THE CASE OF A DISREGARDED ENTITY OWNED BY SUCH TAXPAYER). (B) LIMITATION ON CREDIT. THE AGGREGATE AMOUNT OF CREDITS CLAIMED BY ALL PARTNERS, MEMBERS OR SHAREHOLDERS OF AN ELECTING PARTNERSHIP OR ELECTING S CORPORATION PURSUANT TO SUBSECTION (A) OF THIS SECTION SHALL NOT EXCEED THE TAX DUE UNDER SUBSECTION (A) OF SECTION EIGHT HUNDRED SIXTY-TWO OF THIS ARTICLE FROM SUCH ELECTING PARTNERSHIP OR ELECTING S CORPORATION FOR THE TAXABLE YEAR. § 864. PAYMENT OF ESTIMATED TAX. (A) DEFINITION OF ESTIMATED TAX. ESTIMATED TAX MEANS THE AMOUNT THAT AN ELECTING PARTNERSHIP OR ELECTING S CORPORATION ESTIMATES TO BE THE TAX IMPOSED BY SECTION EIGHT HUNDRED SIXTY-TWO OF THIS ARTICLE FOR THE CURRENT TAXABLE YEAR. (B) GENERAL. THE ESTIMATED TAX SHALL BE PAID AS FOLLOWS FOR AN ELECT- ING PARTNERSHIP AND AN ELECTING S CORPORATION: (1) THE ESTIMATED TAX SHALL BE PAID IN FOUR EQUAL INSTALLMENTS ON MARCH FIFTEENTH, JUNE FIFTEENTH, SEPTEMBER FIFTEENTH AND DECEMBER FIFTEENTH IN THE CALENDAR YEAR PRIOR TO THE YEAR IN WHICH THE DUE DATE OF THE RETURN REQUIRED BY THIS ARTICLE FALLS. (2) THE AMOUNT OF ANY REQUIRED INSTALLMENT SHALL BE TWENTY-FIVE PERCENT OF THE REQUIRED ANNUAL PAYMENT. (3) THE REQUIRED ANNUAL PAYMENT IS THE LESSER OF: (A) NINETY PERCENT OF THE TAX SHOWN ON THE RETURN FOR THE TAXABLE YEAR; OR (B) ONE HUNDRED PERCENT OF THE TAX SHOWN ON THE RETURN OF THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION FOR THE PRECEDING TAXABLE YEAR. (C) APPLICATION TO SHORT TAXABLE YEAR. THIS SECTION SHALL APPLY TO A TAXABLE YEAR OF LESS THAN TWELVE MONTHS IN ACCORDANCE WITH PROCEDURES ESTABLISHED BY THE COMMISSIONER. (D) INSTALLMENTS PAID IN ADVANCE. AN ELECTING PARTNERSHIP OR ELECTING S CORPORATION MAY ELECT TO PAY ANY INSTALLMENT OF ITS ESTIMATED TAX PRIOR TO THE DATE PRESCRIBED FOR THE PAYMENT THEREOF. § 865. FILING OF RETURN AND PAYMENT OF TAX. (A) GENERAL. ON OR BEFORE MARCH FIFTEENTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR, EACH ELECTING PARTNERSHIP AND EACH ELECTING S CORPORATION MUST FILE A RETURN FOR THE TAXABLE YEAR REPORTING THE INFORMATION REQUIRED PURSUANT TO THIS ARTI- CLE. FOR EACH ELECTING PARTNERSHIP AND EACH ELECTING S CORPORATION THAT HAS A FISCAL TAXABLE YEAR, THE RETURN IS DUE ON OR BEFORE MARCH FIFTEENTH FOLLOWING THE CLOSE OF THE CALENDAR YEAR THAT CONTAINS THE FINAL DAY OF THE ENTITY'S TAXABLE YEAR. (B) CERTIFICATION OF ELIGIBILITY. EVERY RETURN FILED PURSUANT TO SUBSECTION (A) OF THIS SECTION SHALL INCLUDE, IN A FORMAT AS PRESCRIBED BY THE COMMISSIONER, A CERTIFICATION BY AN INDIVIDUAL AUTHORIZED TO ACT ON BEHALF OF THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION THAT THE TAXPAYER: (1) MADE A TIMELY, VALID ELECTION TO BE SUBJECT TO TAX PURSUANT TO THIS ARTICLE; AND (2) THAT ALL STATEMENTS CONTAINED THEREIN ARE TRUE. S. 2509--C 20 A. 3009--C (C) INFORMATION ON THE ELECTING PARTNERSHIP RETURN. EACH ELECTING PARTNERSHIP SHALL REPORT ON SUCH RETURN: (1) ANY TAX DUE PURSUANT TO THIS ARTICLE. THE BALANCE OF ANY TAX SHOWN ON SUCH RETURN, NOT PREVIOUSLY PAID AS INSTALLMENTS OF ESTIMATED TAX, SHALL BE PAID WITH SUCH RETURN; (2) IDENTIFYING INFORMATION OF ALL PARTNERS AND/OR MEMBERS ELIGIBLE TO RECEIVE A CREDIT PURSUANT TO SECTION EIGHT HUNDRED SIXTY-THREE OF THIS ARTICLE; (3) EACH PARTNER'S AND/OR MEMBER'S SHARE OF THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECTING PARTNERSHIP; (4) EACH PARTNER'S AND/OR MEMBER'S DISTRIBUTIVE SHARE OF THE PASS- THROUGH ENTITY TAXABLE INCOME CALCULATED PURSUANT TO PARAGRAPH ONE OF SUBSECTION (H) OF SECTION EIGHT HUNDRED SIXTY OF THIS ARTICLE; (5) THE CLASSIFICATION OF EACH PARTNER AND/OR MEMBER AS A RESIDENT OR NONRESIDENT FOR PURPOSES OF CALCULATING THE ELECTING PARTNERSHIP'S PASS- THROUGH ENTITY TAXABLE INCOME UNDER PARAGRAPH ONE OF SUBSECTION (H) OF SECTION EIGHT HUNDRED SIXTY OF THIS ARTICLE; AND (6) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER. (D) INFORMATION ON ELECTING S CORPORATION RETURN. EACH ELECTING S CORPORATION SHALL REPORT ON SUCH RETURN: (1) ANY TAX DUE PURSUANT TO THIS ARTICLE. THE BALANCE OF ANY TAX SHOWN ON SUCH RETURN, NOT PREVIOUSLY PAID AS INSTALLMENTS OF ESTIMATED TAX, SHALL BE PAID WITH SUCH RETURN; (2) IDENTIFYING INFORMATION OF ALL SHAREHOLDERS ELIGIBLE TO RECEIVE A CREDIT PURSUANT TO SECTION EIGHT HUNDRED SIXTY-THREE OF THIS ARTICLE; (3) EACH SHAREHOLDER'S DIRECT SHARE OF THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECTING S CORPORATION; AND (4) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER. (E) SPECIAL RULES FOR PARTNERS, MEMBERS AND SHAREHOLDERS THAT ARE DISREGARDED ENTITIES. TO MEET THE REQUIREMENTS OF PARAGRAPH TWO OF SUBSECTION (C) OF THIS SECTION FOR AN ELECTING PARTNERSHIP OR PARAGRAPH TWO OF SUBSECTION (D) OF THIS SECTION FOR AN ELECTING S CORPORATION, THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION MUST PROVIDE INFORMATION SUFFICIENT TO IDENTIFY BOTH THE DISREGARDED ENTITY THAT IS A PARTNER, MEMBER AND/OR SHAREHOLDER AND THE TAXPAYER SUBJECT TO TAX UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER ELIGIBLE FOR A CREDIT UNDER SUBSECTION (A) OF SECTION EIGHT HUNDRED SIXTY-THREE OF THIS ARTICLE. (F) EXTENSIONS AND AMENDMENTS. (1) THE COMMISSIONER MAY GRANT A REASONABLE EXTENSION OF TIME FOR PAYMENT OF TAX OR ESTIMATED TAX (OR ANY INSTALLMENT), OR FOR FILING ANY RETURN, STATEMENT, OR OTHER DOCUMENT REQUIRED PURSUANT TO THIS ARTICLE, ON SUCH TERMS AND CONDITIONS AS IT MAY REQUIRE. NO SUCH EXTENSION FOR FILING ANY RETURN, STATEMENT OR OTHER DOCUMENT, SHALL EXCEED SIX MONTHS. (2) NO AMENDED RETURNS. ONCE A RETURN HAS BEEN FILED BY AN ELECTING PARTNERSHIP OR ELECTING S CORPORATION, IT MAY NOT BE AMENDED WITHOUT THE CONSENT OF OR OTHERWISE AUTHORIZED BY THE COMMISSIONER. (G) INFORMATION PROVIDED TO PARTNERS. EACH ELECTING PARTNERSHIP SUBJECT TO TAX UNDER THIS ARTICLE SHALL REPORT TO EACH PARTNER OR MEMBER ITS: (1) CLASSIFICATION AS A RESIDENT OR NONRESIDENT FOR PURPOSES OF CALCU- LATING THE ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S PASS- THROUGH ENTITY TAXABLE INCOME UNDER SUBSECTION (G) OF SECTION EIGHT HUNDRED SIXTY OF THIS ARTICLE; (2) DIRECT SHARE OF THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECT- ING PARTNERSHIP; AND (3) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER. S. 2509--C 21 A. 3009--C (H) INFORMATION PROVIDED TO SHAREHOLDERS. EACH ELECTING S CORPORATION SUBJECT TO TAX UNDER THIS ARTICLE SHALL REPORT TO EACH SHAREHOLDER ITS: (1) DIRECT SHARE OF THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECT- ING S CORPORATION; AND (2) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER. § 866. PROCEDURAL PROVISIONS. (A) GENERAL. ALL PROVISIONS OF ARTICLE TWENTY-TWO OF THIS CHAPTER WILL APPLY TO THE PROVISIONS OF THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF ARTICLE TWENTY-TWO OF THIS CHAPTER HAD BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND HAD BEEN SPECIFICALLY ADJUSTED FOR AND EXPRESSLY REFERRED TO THE TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. NOTWITHSTANDING THE PRECEDING SENTENCE, NO CREDIT AGAINST TAX IN ARTICLE TWENTY-TWO OF THIS CHAPTER CAN BE USED TO OFFSET THE TAX DUE PURSUANT TO THIS ARTICLE. (B) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE COMMISSIONER MAY REQUIRE THAT ALL FORMS OR RETURNS PURSUANT TO THIS ARTICLE MUST BE FILED ELECTRONICALLY AND ALL PAYMENTS OF TAX MUST BE PAID ELECTRON- ICALLY. (C) LIABILITY FOR TAX. (1) AN ELECTING PARTNERSHIP OR ELECTING S CORPORATION SHALL BE LIABLE FOR THE TAX DUE PURSUANT TO THIS ARTICLE. (2) EXCEPT AS PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, ANY ARTICLE TWENTY-TWO TAXPAYER ELIGIBLE TO CLAIM A CREDIT PURSUANT TO SUBSECTION (KKK) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER BECAUSE HE OR SHE IS A PARTNER OR MEMBER IN AN ELECTING PARTNERSHIP OR A SHAREHOLD- ER IN AN ELECTING S CORPORATION, EITHER DIRECTLY OR THROUGH A DISRE- GARDED ENTITY, SHALL BE SEVERALLY LIABLE TO THE EXTENT NOT PAID BY THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION FOR HIS OR HER DIRECT SHARE OF PASS-THROUGH ENTITY TAX. (3) ANY ARTICLE TWENTY-TWO TAXPAYER ELIGIBLE TO CLAIM A CREDIT PURSU- ANT TO SUBSECTION (KKK) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER BECAUSE HE OR SHE IS A PARTNER OR MEMBER IN AN ELECTING PARTNERSHIP OR A SHAREHOLDER IN AN ELECTING S CORPORATION, EITHER DIRECTLY OR THROUGH A DISREGARDED ENTITY, THAT IS A GENERAL, MANAGING OR CONTROLLING PARTNER OF THE ELECTING PARTNERSHIP OR MANAGING OR CONTROLLING SHAREHOLDER OF THE ELECTING S CORPORATION, OR OWNS GREATER THAN FIFTY PERCENT OF THE INTERESTS OR PROFITS OF THE ELECTING PARTNERSHIP OR ELECTING S CORPO- RATION, OR IS UNDER A DUTY TO ACT FOR THE ELECTING PARTNERSHIP OR S CORPORATION IN COMPLYING WITH THE PROVISIONS OF THIS ARTICLE, OR WAS THE INDIVIDUAL THAT MADE THE ELECTION ON BEHALF OF THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION UNDER SUBSECTION (B) OF SECTION EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE SHALL BE JOINTLY AND SEVERALLY LIABLE FOR THE TAX IMPOSED PURSUANT TO THIS ARTICLE ON SUCH ELECTING PARTNERSHIP OR ELECTING S CORPORATION. (D) DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, INTEREST, PENAL- TIES, AND FEES COLLECTED OR RECEIVED BY THE COMMISSIONER PURSUANT TO THIS ARTICLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER. (E) SECRECY PROVISION. ALL THE PROVISIONS OF PARAGRAPHS ONE AND TWO OF SUBSECTION (E) OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS CHAPTER WILL APPLY TO THE PROVISIONS OF THIS ARTICLE. NOTWITHSTANDING ANY PROVISIONS OF THIS CHAPTER TO THE CONTRARY, THE COMMISSIONER MAY DISCLOSE INFORMA- TION AND RETURNS REGARDING THE CALCULATION AND PAYMENT OF THE TAX IMPOSED BY THIS ARTICLE AND ANY CREDIT CALCULATED ON TAXES PAID PURSUANT TO THIS ARTICLE BY AN ELECTING PARTNERSHIP OR ELECTING S CORPORATION TO A PARTNER, MEMBER OR SHAREHOLDER OF SUCH ENTITY THAT IS ELIGIBLE FOR OR S. 2509--C 22 A. 3009--C CLAIMS TO BE ELIGIBLE FOR A CREDIT UNDER SUBSECTION (A) OF SECTION EIGHT HUNDRED SIXTY-THREE OF THIS ARTICLE. § 2. Section 606 of the tax law is amended by adding a new subsection (kkk) to read as follows: (KKK) CREDIT FOR PASS-THROUGH ENTITY TAX. (1) A TAXPAYER PARTNER OR MEMBER OF AN ELECTING PARTNERSHIP AND A TAXPAYER SHAREHOLDER OF AN ELECTING S CORPORATION SUBJECT TO TAX UNDER ARTICLE TWENTY-FOUR-A OF THIS CHAPTER SHALL BE ENTITLED TO A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AS PROVIDED IN THIS SUBSECTION. FOR PURPOSES OF THIS SUBSECTION, THE TERMS "ELECTING PARTNERSHIP," "ELECTING S CORPORATION," "PASS-THROUGH ENTITY TAX," AND "DIRECT SHARE OF PASS-THROUGH ENTITY TAX" SHALL HAVE THE SAME MEANINGS AS USED IN ARTICLE TWENTY-FOUR-A OF THIS CHAPTER. (2) THE CREDIT SHALL BE EQUAL TO THE PARTNER'S, MEMBER'S OR SHAREHOLD- ER'S DIRECT SHARE OF THE PASS-THROUGH ENTITY TAX. (3) IF A TAXPAYER IS A PARTNER, MEMBER OR SHAREHOLDER IN MULTIPLE ELECTING PARTNERSHIPS AND/OR ELECTING S CORPORATIONS SUBJECT TO TAX PURSUANT TO ARTICLE TWENTY-FOUR-A OF THIS CHAPTER, THE TAXPAYER'S CREDIT SHALL BE THE SUM OF SUCH CREDITS CALCULATED PURSUANT TO PARAGRAPH TWO OF THIS SUBSECTION WITH REGARD TO EACH ENTITY IN WHICH THE TAXPAYER HAS A DIRECT OWNERSHIP INTEREST. (4) IF THE AMOUNT OF THE CREDIT ALLOWABLE PURSUANT TO THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAX DUE FOR SUCH YEAR PURSUANT TO THIS ARTICLE, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT, TO BE CREDITED OR REFUNDED, WITHOUT INTEREST. (5) LIMITATION ON CREDIT. NO CREDIT SHALL BE ALLOWED TO A TAXPAYER UNDER THIS SUBSECTION UNLESS THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION PROVIDED SUFFICIENT INFORMATION TO IDENTIFY THE TAXPAYER ON ITS PASS-THROUGH ENTITY TAX RETURN AS REQUIRED UNDER PARAGRAPH TWO OF SUBSECTION (C) OF SECTION EIGHT HUNDRED SIXTY-FIVE OF THIS ARTICLE FOR AN ELECTING PARTNERSHIP OR PARAGRAPH TWO OF SUBSECTION (D) OF SECTION EIGHT HUNDRED SIXTY-FIVE OF THIS ARTICLE FOR AN ELECTING S CORPORATION. THE CREDIT ALLOWED TO A TAXPAYER UNDER THIS SUBSECTION SHALL NOT EXCEED THE DIRECT SHARE OF PASS-THROUGH ENTITY TAX REPORTED BY SUCH ELECTING PARTNERSHIP OR ELECTING S CORPORATION ATTRIBUTABLE TO SUCH TAXPAYER ON THE ENTITY'S RETURN FILED PURSUANT TO SECTION EIGHT HUNDRED SIXTY-FIVE OF THIS ARTICLE. § 3. Subsection (b) of section 612 of the tax law is amended by adding a new paragraph 43 to read as follows: (43) PASS-THROUGH ENTITY TAX DEDUCTION ADDBACK. (A) IN THE CASE OF A TAXPAYER WHO CLAIMS A CREDIT UNDER SUBSECTION (KKK) OF SECTION SIX HUNDRED SIX OF THIS ARTICLE, AN AMOUNT EQUAL TO THE AMOUNT OF SUCH CRED- IT; AND (B) IN THE CASE OF A TAXPAYER WHO CLAIMS A CREDIT UNDER SUBSECTION (B) OF SECTION SIX HUNDRED TWENTY OF THIS ARTICLE, AN AMOUNT EQUAL TO THE AMOUNT OF SUCH CREDIT AS CALCULATED WITHOUT REGARD TO THE LIMITATION UNDER SUBSECTION (C) OF SECTION SIX HUNDRED TWENTY OF THIS ARTICLE. § 4. Section 620 of the tax law, as amended by chapter 2 of the laws of 1962, subsection (a) as amended and paragraph 3 of subsection (b) as added by chapter 274 of the laws of 1987, and subsection (d) as added by chapter 166 of the laws of 1991, is amended to read as follows: § 620. Credit for income tax of another state. (a) General. A resident shall be allowed a credit against the tax otherwise due under this arti- cle for any income tax imposed ON SUCH INDIVIDUAL for the taxable year by another state of the United States, a political subdivision of such state, the District of Columbia or a province of Canada, upon income S. 2509--C 23 A. 3009--C both derived therefrom and subject to tax under this article. The term "income tax imposed" in the previous sentence shall not include the portion of such tax (determined in the manner provided for in section six hundred twenty-A) which is imposed upon the ordinary income portion (or part thereof) of a lump sum distribution which is subject to the separate tax imposed by section [six hundred one-C] SIX HUNDRED THREE. (b) PASS-THROUGH ENTITY TAXES. (1) A RESIDENT SHALL BE ALLOWED A CRED- IT AGAINST THE TAX OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY PASS- THROUGH ENTITY TAX SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED PURSUANT TO ARTICLE TWENTY-FOUR-A OF THIS CHAPTER IMPOSED ON THE INCOME OF A PART- NERSHIP OR S CORPORATION OF WHICH THE RESIDENT IS A PARTNER, MEMBER OR SHAREHOLDER FOR THE TAXABLE YEAR BY ANOTHER STATE OF THE UNITED STATES, A POLITICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF COLUMBIA UPON INCOME BOTH DERIVED THEREFROM AND SUBJECT TO TAX UNDER THIS ARTICLE. (2) SUCH CREDIT SHALL BE EQUAL TO THE TAXPAYER'S DIRECT SHARE OF THE PASS-THROUGH ENTITY TAX PAID BY THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION TO SUCH OTHER STATE, POLITICAL SUBDIVISION OF SUCH OTHER STATE OR THE DISTRICT OF COLUMBIA. (3) HOWEVER, SUCH CREDIT WILL BE ALLOWED ON TAX PAID ONLY IF: (A) THE STATE OF THE UNITED STATES, POLITICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF COLUMBIA IMPOSING SUCH TAX ALSO IMPOSES AN INCOME TAX SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED UNDER THIS ARTICLE; AND (B) IN THE CASE OF TAXES PAID BY AN S CORPORATION, SUCH S CORPORATION WAS TREATED AS A NEW YORK S CORPORATION. (C) Limitations. (1) The credit under this section shall not exceed the percentage of the tax otherwise due under this article determined by dividing the portion of the taxpayer's New York income subject to taxa- tion by such other jurisdiction by the total amount of the taxpayer's New York income. (2) The credit under this section shall not reduce the tax otherwise due under this article to an amount less than would have been due if the income subject to taxation by such other jurisdiction were excluded from the taxpayer's New York income. (3) In the case of a taxpayer who elects to claim the foreign tax credit for federal income tax purposes, the credit under this section for income tax imposed by a province of Canada shall be allowed for that portion of the provincial tax not claimed for federal purposes for the taxable year or a preceding taxable year, provided however, to the extent the provincial tax is claimed for federal purposes for a succeed- ing taxable year, the credit under this section must be added back in such succeeding taxable year. The provincial tax shall be deemed to be claimed last for federal income tax purposes and for purposes of this subsection. [(c)] (D) Definition. For purposes of this section New York income means: (1) the New York adjusted gross income of an individual, or (2) the amount of the income of an estate or trust, determined as if the estate or trust were an individual computing his New York adjusted gross income under section six hundred twelve. [(d) S corporation shareholders. In the case of a shareholder of an S corporation, the term "income tax" in subsection (a) of this section shall not include any such tax imposed upon or payable by the corpo- ration, but shall include any such tax with respect to the income of the corporation imposed upon or payable by the shareholder, without regard S. 2509--C 24 A. 3009--C to whether an election independent of the federal S election was required to effect such imposition upon the shareholder.] § 5. Subdivision 1 of section 171-a of the tax law, as amended by chapter 92 of the laws of 2021, 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-FOUR-A, 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 thir- ty-three-A of this chapter shall be deposited daily in one account with such responsible banks, banking houses or trust companies as may be designated by the comptroller, to the credit of the comptroller. Such an account may be established in one or more of such depositories. Such deposits shall be kept separate and apart from all other money in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the total revenue collected or received under such articles of this chapter, the comptroller shall retain in the comptroller's hands such amount as the commissioner may determine to be necessary for refunds or reimbursements under such arti- cles 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 pursuant to subdivision five of section one hundred seventy-one-d and subdivision six of section one hundred seventy-one-e of this arti- cle, (iii) and except further that, notwithstanding any law, the comp- troller shall credit to the revenue arrearage account, pursuant to section ninety-one-a of the state finance law, that amount of overpay- ment of tax imposed by article nine, nine-A, twenty-two, thirty, thir- S. 2509--C 25 A. 3009--C ty-A, thirty-B or thirty-three of this chapter, and any interest there- on, which is certified to the comptroller by the commissioner as the amount to be credited against a past-due legally enforceable debt owed to a state agency pursuant to paragraph (a) of subdivision six of section one hundred seventy-one-f of this article, provided, however, he shall credit to the special offset fiduciary account, pursuant to section ninety-one-c of the state finance law, any such amount credita- ble as a liability as set forth in paragraph (b) of subdivision six of section one hundred seventy-one-f of this article, (iv) and except further that the comptroller shall pay to the city of New York that amount of overpayment of tax imposed by article nine, nine-A, twenty- two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any interest thereon that is certified to the comptroller by the commission- er as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by arti- cle twenty-two of this chapter and the interest on such amount which has been credited pursuant to section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seventy-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corpo- ration, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy-one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 6. Subdivisions 2, 3 and paragraph (a) of subdivision 5 of section 92-z of the state finance law, as amended by section 5 of part MM of chapter 59 of the laws of 2018, are amended to read as follows: 2. Such fund shall consist of (a) fifty percent of receipts from the imposition of personal income taxes pursuant to article twenty-two of the tax law, less such amounts as the commissioner of taxation and finance may determine to be necessary for refunds, [and] (b) fifty percent of receipts from the imposition of employer compensation expense taxes pursuant to article twenty-four of the tax law, less such amounts as the commissioner of taxation and finance may determine to be neces- sary for refunds, AND (C) FIFTY PERCENT OF RECEIPTS FROM THE IMPOSITION OF THE PASS-THROUGH ENTITY TAXES PURSUANT TO ARTICLE TWENTY-FOUR-A OF THE TAX LAW, LESS SUCH AMOUNTS AS THE COMMISSION OF TAXATION AND FINANCE MAY DETERMINE TO BE NECESSARY FOR REFUNDS. 3. (a) Beginning on the first day of each month, the comptroller shall deposit all of the receipts collected pursuant to section six hundred seventy-one of the tax law in the revenue bond tax fund until the amount of monthly receipts anticipated to be deposited pursuant to the certif- icate required in paragraph (b) of subdivision five of this section are met. On or before the twelfth day of each month, the commissioner of S. 2509--C 26 A. 3009--C taxation and finance shall certify to the state comptroller the amounts specified in paragraph (a) of subdivision two of this section relating to the preceding month and, in addition, no later than March thirty- first of each fiscal year the commissioner of taxation and finance shall certify such amounts relating to the last month of such fiscal year. The amounts so certified shall be deposited by the state comptroller in the revenue bond tax fund. (b) Beginning on the first day of each month, the comptroller shall deposit all of the receipts collected pursuant to section eight hundred fifty-four of the tax law in the revenue bond tax fund until the amount of monthly receipts anticipated to be deposited pursuant to the certif- icate required in paragraph (b) of subdivision five of this section are met. On or before the twelfth day of each month, the commissioner of taxation and finance shall certify to the state comptroller the amounts specified in paragraph (b) of subdivision two of this section relating to the preceding month and, in addition, no later than March thirty- first of each fiscal year the commissioner of taxation and finance shall certify such amounts relating to the last month of such fiscal year. The amounts so certified shall be deposited by the state comptroller in the revenue bond tax fund. (C) BEGINNING ON THE FIRST DAY OF EACH MONTH, THE COMPTROLLER SHALL DEPOSIT ALL OF THE RECEIPTS COLLECTED PURSUANT TO SECTIONS EIGHT HUNDRED SIXTY-FOUR AND EIGHT HUNDRED SIXTY-FIVE OF THE TAX LAW IN THE REVENUE BOND TAX FUND UNTIL THE AMOUNT OF MONTHLY RECEIPTS ANTICIPATED TO BE DEPOSITED PURSUANT TO THE CERTIFICATE REQUIRED IN PARAGRAPH (B) OF SUBDIVISION FIVE OF THIS SECTION ARE MET. ON OR BEFORE THE TWELFTH DAY OF EACH MONTH, THE COMMISSIONER OF TAXATION AND FINANCE SHALL CERTIFY TO THE STATE COMPTROLLER THE AMOUNTS SPECIFIED IN PARAGRAPH (C) OF SUBDIVI- SION TWO OF THIS SECTION RELATING TO THE PRECEDING MONTH AND, IN ADDI- TION, NO LATER THAN MARCH THIRTY-FIRST OF EACH FISCAL YEAR THE COMMIS- SIONER OF TAXATION AND FINANCE SHALL CERTIFY SUCH AMOUNTS RELATING TO THE LAST MONTH OF SUCH FISCAL YEAR. THE AMOUNTS SO CERTIFIED SHALL BE DEPOSITED BY THE STATE COMPTROLLER IN THE REVENUE BOND TAX FUND. (a) The state comptroller shall from time to time, but in no event later than the fifteenth day of each month (other than the last month of the fiscal year) and no later than the thirty-first day of the last month of each fiscal year, pay over and distribute to the credit of the general fund of the state treasury all moneys in the revenue bond tax fund, if any, in excess of the aggregate amount required to be set aside for the payment of cash requirements pursuant to paragraph (b) of this subdivision, provided that an appropriation has been made to pay all amounts specified in any certificate or certificates delivered by the director of the budget pursuant to paragraph (b) of this subdivision as being required by each authorized issuer as such term is defined in section sixty-eight-a of this chapter for the payment of cash require- ments of such issuers for such fiscal year. Subject to the rights of holders of debt of the state, in no event shall the state comptroller pay over and distribute any moneys on deposit in the revenue bond tax fund to any person other than an authorized issuer pursuant to such certificate or certificates (i) unless and until the aggregate of all cash requirements certified to the state comptroller as required by such authorized issuers to be set aside pursuant to paragraph (b) of this subdivision for such fiscal year shall have been appropriated to such authorized issuers in accordance with the schedule specified in the certificate or certificates filed by the director of the budget or (ii) if, after having been so certified and appropriated, any payment S. 2509--C 27 A. 3009--C required to be made pursuant to paragraph (b) of this subdivision has not been made to the authorized issuers which was required to have been made pursuant to such certificate or certificates; provided, however, that no person, including such authorized issuers or the holders of revenue bonds, shall have any lien on moneys on deposit in the revenue bond tax fund. Any agreement entered into pursuant to section sixty- eight-c of this chapter related to any payment authorized by this section shall be executory only to the extent of such revenues available to the state in such fund. Notwithstanding subdivisions two and three of this section, in the event the aggregate of all cash requirements certi- fied to the state comptroller as required by such authorized issuers to be set aside pursuant to paragraph (b) of this subdivision for the fiscal year beginning on April first shall not have been appropriated to such authorized issuers in accordance with the schedule specified in the certificate or certificates filed by the director of the budget or, (ii) if, having been so certified and appropriated, any payment required to be made pursuant to paragraph (b) of this subdivision has not been made pursuant to such certificate or certificates, all receipts collected pursuant to section six hundred seventy-one of the tax law, [and] section eight hundred fifty-four of the tax law, SECTION EIGHT HUNDRED SIXTY-FOUR OF THE TAX LAW, AND SECTION EIGHT HUNDRED SIXTY-FIVE OF THE TAX LAW shall be deposited in the revenue bond tax fund until the great- er of forty percent of the aggregate of the receipts from the imposition of (A) the personal income tax imposed by article twenty-two of the tax law, [and] (B) the employer compensation expense tax imposed by article twenty-four of the tax law, AND (C) THE PASS-THROUGH ENTITY TAX IMPOSED BY ARTICLE TWENTY-FOUR-A OF THE TAX LAW for the fiscal year beginning on April first and as specified in the certificate or certificates filed by the director of the budget pursuant to this paragraph or a total of twelve billion dollars has been deposited in the revenue bond tax fund. Notwithstanding any other provision of law, if the state has appropri- ated and paid to the authorized issuers the amounts necessary for the authorized issuers to meet their requirements for the current fiscal year pursuant to the certificate or certificates submitted by the direc- tor of the budget pursuant to paragraph (b) of this section, the state comptroller shall, on the last day of each fiscal year, pay to the general fund of the state all sums remaining in the revenue bond tax fund on such date except such amounts as the director of the budget may certify are needed to meet the cash requirements of authorized issuers during the subsequent fiscal year. § 7. Subdivision 5 of section 68-c of the state finance law, as amended by section 6 of part MM of chapter 59 of the laws of 2018, is amended to read as follows: 5. Nothing contained in this article shall be deemed to restrict the right of the state to amend, repeal, modify or otherwise alter statutes imposing or relating to the taxes imposed pursuant to article twenty-two, [and] article twenty-four, AND ARTICLE TWENTY-FOUR-A of the tax law. The authorized issuers shall not include within any resolution, contract or agreement with holders of the revenue bonds issued under this article any provision which provides that a default occurs as a result of the state exercising its right to amend, repeal, modify or otherwise alter the taxes imposed pursuant to article twenty-two, [and] article twenty-four, AND ARTICLE TWENTY-FOUR-A of the tax law. § 8.(a) Notwithstanding section 861 of the tax law, as added by section one of this act, the election to be taxed under article 24-A of the tax law for the calendar year 2021, must be made by October 15, S. 2509--C 28 A. 3009--C 2021. Further, notwithstanding section 864 of the tax law, as added by section one of this act, an electing partnership and an electing S corporation shall not be required to make estimated tax payments for taxable year 2021. (b) For taxable year 2021, taxpayers under article 22 of the tax law who are partners, members or shareholders of electing partnerships and electing S corporations shall continue to make estimated tax payments as required by such article, calculated as if they were not entitled to the tax credit allowed by subsection (kkk) of section 606 of the tax law, as added by section two of this act. Any addition to tax imposed under subsection (c) of section 685 of the tax law for the failure of a part- ner or member of an electing partnership or a shareholder of an electing S corporation to make estimated tax payments for the 2021 taxable year shall be calculated as if such partner, member or shareholder was not entitled to a tax credit under subsection (kkk) of section 606 of the tax law, as added by section two of this act. § 9. This act shall take effect immediately and shall apply to all taxable years beginning on or after January 1, 2021. PART D Section 1. Section 352 of the economic development law is amended by adding two new subdivisions 5-a and 13-a to read as follows: 5-A. "CHILD CARE SERVICES" MEANS THOSE SERVICES UNDERTAKEN OR SPON- SORED BY A PARTICIPANT IN THIS PROGRAM MEETING THE REQUIREMENTS OF "CHILD DAY CARE" AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION THREE HUNDRED NINETY OF THE SOCIAL SERVICES LAW OR ANY CHILD CARE SERVICES IN THE CITY OF NEW YORK WHEREBY A PERMIT TO OPERATE SUCH CHILD CARE SERVICES IS REQUIRED PURSUANT TO THE HEALTH CODE OF THE CITY OF NEW YORK. 13-A. "NET NEW CHILD CARE SERVICES EXPENDITURES" MEANS THE CALCULATION OF NEW, ANNUAL PARTICIPANT EXPENDITURES ON CHILD CARE SERVICES WHETHER INTERNAL OR PROVIDED BY A THIRD PARTY (INCLUDING COVERAGE FOR FULL OR PARTIAL DISCOUNT OF EMPLOYEE RATES), MINUS ANY REVENUES RECEIVED BY THE PARTICIPANT THROUGH A THIRD-PARTY OPERATOR (I.E. RENT PAID TO THE PARTICIPANT BY THE CHILD CARE PROVIDER) OR EMPLOYEES AND MAY BE FURTHER DEFINED BY THE COMMISSIONER IN REGULATIONS. FOR THE PURPOSES OF THIS DEFINITION, EXPENDITURES FOR CHILD CARE SERVICES THAT A PARTICIPANT HAS INCURRED PRIOR TO ADMISSION TO THIS PROGRAM SHALL NOT BE ELIGIBLE FOR THE CREDIT. § 2. Paragraphs (k) and (l) of subdivision 1 of section 353 of the economic development law, as amended by section 2 of part L of chapter 59 of the laws of 2020, are amended and a new paragraph (m) is added to read as follows: (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[.]; OR (M) AS A PARTICIPANT OPERATING IN ONE OF THE INDUSTRIES LISTED IN PARAGRAPHS (A) THROUGH (K) OF THIS SUBDIVISION AND OPERATING OR SPONSOR- ING CHILD CARE SERVICES TO ITS EMPLOYEES AS DEFINED IN SECTION THREE HUNDRED FIFTY-TWO OF THIS ARTICLE. § 2-a. Subdivision 3 of section 354 of the economic development law, as amended by section 3 of part G of chapter 61 of the laws of 2011, is amended to read as follows: S. 2509--C 29 A. 3009--C 3. (A) After reviewing a business enterprise's completed application and determining that the business enterprise will meet the conditions set forth in subdivisions three and four of section three hundred fifty-three of this article, the department may admit the applicant into the program and provide the applicant with a certificate of eligibility and a preliminary schedule of benefits by year based on the applicant's projections as set forth in its application. This preliminary schedule of benefits delineates the maximum possible benefits an applicant may receive. (B) NOTWITHSTANDING THE REQUIREMENTS OF THIS SUBDIVISION, AN EXISTING PARTICIPANT IN THE EXCELSIOR JOBS PROGRAM MAY BE ELIGIBLE FOR AN ENHANCED INVESTMENT TAX CREDIT ON PROJECTS FOR CHILD CARE SERVICES AND THE EXCELSIOR CHILD CARE SERVICES TAX CREDIT COMPONENT, PROVIDED: (I) THE PARTICIPANT IS IN COMPLIANCE WITH THE REQUIREMENTS OF THIS ARTICLE; (II) THE PARTICIPANT IS NOT, AT THE TIME OF APPLICATION TO THE DEPART- MENT FOR EITHER THE ENHANCED INVESTMENT TAX CREDIT ON PROJECTS FOR CHILD CARE SERVICES OR THE EXCELSIOR CHILD CARE TAX CREDIT COMPONENT, EITHER OPERATING A CHILD CARE FACILITY OR SPONSORING CHILD CARE SERVICES FOR ITS EMPLOYEES; AND (III) THE PARTICIPANT IS SEEKING TO PROVIDE SUCH SERVICES ON CONDITION OF RECEIPT OF ADDITIONAL TAX CREDITS ATTRIBUTABLE TO CHILD CARE SERVICES. SUCH EXISTING PARTICIPANT MAY APPLY TO THE DEPARTMENT FOR THE BENEFIT AS DEFINED IN SECTION THREE HUNDRED FIFTY-FIVE OF THIS ARTICLE. IN NO CIRCUMSTANCES SHALL THE BENEFIT TERM FOR CHILD CARE SERVICES EXCEED THE EXISTING PARTICIPANT'S EXISTING BENEFIT TERM IN ITS PRELIMI- NARY SCHEDULE OF BENEFITS. § 3. Subdivisions 2 and 6 of section 355 of the economic development law, subdivision 2 as amended by section 4 of part L of chapter 59 of the laws of 2020 and subdivision 6 as amended by section 4 of part K of chapter 59 of the laws of 2015, are amended and a new subdivision 2-a is added to read as follows: 2. Excelsior investment tax credit component. A participant in the excelsior jobs program shall be eligible to claim a credit on qualified investments. 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. IN A PROJECT FOR CHILD CARE SERVICES, THE CREDIT SHALL BE UP TO FIVE PERCENT OF THE COST OR OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED INVESTMENT IN CHILD CARE SERVICES. A participant may not claim both the excelsior investment tax credit component and the investment tax credit set forth in subdivision one of section two hundred ten-B, subsection (a) of section six hundred six, the former subsection (i) of section fourteen hundred fifty-six, or subdivision (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 property 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 enterprise has received a certificate of tax credit, S. 2509--C 30 A. 3009--C provided that qualified investments made on or after the issuance of the certificate of eligibility but before the issuance of the certificate of tax credit to the business enterprise, may be claimed in the first taxa- ble year for which the business enterprise is allowed to claim the cred- it. Expenses incurred prior to the date the certificate of eligibility is issued are not eligible to be included in the calculation of the credit. 2-A. EXCELSIOR CHILD CARE SERVICES TAX CREDIT COMPONENT. A PARTICIPANT IN THE EXCELSIOR JOBS PROGRAM SHALL BE ELIGIBLE TO CLAIM A CREDIT ON ITS NET NEW CHILD CARE SERVICES EXPENDITURES FOR ITS OPERATION, SPONSORSHIP OR DIRECT FINANCIAL SUPPORT OF A CHILD CARE SERVICES PROGRAM. THE CREDIT SHALL BE UP TO SIX PERCENT OF THE NET NEW CHILD CARE SERVICES EXPENDI- TURES AS DEFINED IN THIS CHAPTER. 6. Claim of tax credit. The business enterprise shall be allowed to claim the credit as prescribed in section thirty-one of the tax law. No costs used by an entertainment company as the basis for the allowance of a tax credit described in this section shall be used by such enter- tainment company to claim any other credit allowed pursuant to the tax law. NO COSTS OR EXPENDITURES FOR CHILD CARE SERVICES USED BY A PARTIC- IPANT TO CLAIM THE CREDIT AS PRESCRIBED IN SECTION FORTY-FOUR OF THE TAX LAW SHALL BE USED FOR THE ALLOWANCE OF A TAX CREDIT DESCRIBED IN THIS SECTION. § 3-a. Section 358 of the economic development law is amended by adding a new subdivision 3 to read as follows: 3. THE COMMISSIONER SHALL PREPARE ON A QUARTERLY BASIS INFORMATION RELATED TO THE UTILIZATION OF THE EXCELSIOR CHILD CARE SERVICES TAX CREDIT COMPONENT FOR INCLUSION IN THE QUARTERLY EXCELSIOR JOBS PROGRAM TAX CREDIT REPORTS REQUIRED PURSUANT TO SUBDIVISION TWO OF THIS SECTION. SUCH INFORMATION SHALL INCLUDE, BUT NEED NOT BE LIMITED TO THE FOLLOW- ING: NUMBER OF APPLICANTS; NUMBER OF PARTICIPANTS APPROVED; TOTAL NET NEW CHILD CARE SERVICES EXPENDITURES CERTIFIED; TOTAL AMOUNT OF BENEFITS CERTIFIED; BENEFITS RECEIVED PER PARTICIPANT. ON AN ANNUAL BASIS, BUSI- NESSES PARTICIPATING IN THE EXCELSIOR CHILD CARE SERVICES CREDIT SHALL REPORT TO THE DEPARTMENT ON THE NUMBER OF EMPLOYEES PARTICIPATING IN CHILD CARE SERVICES SUPPORTED BY THE CREDIT. § 4. Subdivision (a) of section 31 of the tax law is amended by adding a new paragraph 2-a to read as follows: (2-A) THE EXCELSIOR CHILD CARE SERVICES TAX CREDIT COMPONENT; § 5. Subdivision (a) of section 44 of the tax law, as added by section 1 of part L of chapter 59 of the laws of 2019, is amended to read as follows: (a) General. A taxpayer subject to tax under article nine-A, twenty- two, or thirty-three of this chapter shall be allowed a credit against such tax in an amount equal to TWO HUNDRED PERCENT OF the portion of the credit that is allowed to the taxpayer under section 45F of the internal revenue code that is attributable to (i) qualified child care expendi- tures paid or incurred with respect to a qualified child care facility with a situs in the state, and to (ii) qualified child care resource and referral expenditures paid or incurred with respect to the taxpayer's employees working in the state. The credit allowable under this subdivi- sion for any taxable year shall not exceed [one hundred fifty] FIVE HUNDRED thousand dollars. If the entity operating the qualified child care facility is a partnership or a New York S corporation, then such cap shall be applied at the entity level, so the aggregate credit allowed to all the partners or shareholders of such entity in a taxable year does not exceed [one hundred fifty] FIVE HUNDRED thousand dollars. S. 2509--C 31 A. 3009--C § 6. This act shall take effect immediately; provided, however, section five of this act shall apply to taxable years beginning on or after January 1, 2022. PART E Section 1. Paragraph (b) of subdivision 2 of section 184 of the tax law, as amended by chapter 485 of the laws of 1988, is amended to read as follows: (b) (1) A corporation classed as a "taxicab" or "omnibus", (i) which is organized, incorporated or formed under the laws of any other state, country or sovereignty, and (ii) which neither owns nor leases property in this state in a corpo- rate or organized capacity, nor (iii) maintains an office in this state in a corporate or organized capacity, but (iv) which is doing business or employing capital in this state by conducting at least one but fewer than twelve trips into this state during the calendar year, shall [annually pay a tax equal to fifteen dollars for each trip conducted into this state] NOT BE TAXED UNDER THE PROVISIONS OF THIS ARTICLE. If the only property a corporation owns or leases in this state is a vehicle or vehicles used to conduct trips, it shall not be considered, for purposes of clause (ii) of this subpara- graph, to be owning or leasing property in this state. (2) [The commissioner of taxation and finance may prescribe such forms as he may deem necessary to report such tax in a simplified manner. (3)] For purposes of this subdivision, a corporation classed as a "taxicab" or "omnibus" shall be considered to be conducting a trip into New York state when one of its vehicles enters New York state and trans- ports passengers to, from, or to and from a location in New York state. A corporation shall not be considered to be conducting a trip into New York state if its vehicle only makes incidental stops at locations in the state while in transit from a location outside New York state to another location outside New York state. The number of trips a corpo- ration conducts into New York state shall be calculated by determining the number of trips each vehicle owned, leased or operated by the corpo- ration conducts into New York state and adding those numbers together. [(4) Provided, however, that the provisions of this paragraph shall not apply to any corporation which does not file its franchise tax report in a timely manner (determined with regard to any extension of time for filing).] § 2. This act shall take effect immediately, provided, however, that section one of this act shall apply to taxable years beginning on or after January 1, 2021. PART F Section 1. Paragraph 5 of subdivision (a) of section 24 of the tax law, as amended by section 5-a of part M of chapter 59 of the laws of 2020, is amended to read as follows: (5) For the period two thousand fifteen through two thousand [twenty- five] TWENTY-SIX, 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 S. 2509--C 32 A. 3009--C writers, directors, music directors, producers and performers, including background actors with no scripted lines) by a qualified film production company or a qualified independent film production company for services performed by those individuals in one of the counties specified in this paragraph in connection with a qualified film with a minimum budget of five hundred thousand dollars. For purposes of this additional credit, the services must be performed in one or more of the following counties: Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this paragraph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty- five] TWENTY-SIX 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- five] TWENTY-SIX. § 2. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 5-b of part M of chapter 59 of the laws of 2020, 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-five] TWENTY-SIX 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-five] TWENTY-SIX 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-five] TWENTY-SIX. 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 S. 2509--C 33 A. 3009--C section. If the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film production tax credit have been previously allocated, and determines that the pending applications from eligible applicants for the empire state film post production tax credit pursuant to section thirty-one of this article is insufficient to utilize the balance of unallocated empire state film post production tax credits from such pool, the remainder, after such pending applications are considered, shall be made available for allocation in the empire state film tax credit pursuant to this section, subdivision twenty of section two hundred ten-B and subsection (gg) of section six hundred six of this chapter. Also, if the commissioner of economic development determines that the aggregate amount of tax credits available from additional pool 2 for the empire state film post production tax credit have been previ- ously allocated, and determines that the pending applications from eligible applicants for the empire state film production tax credit pursuant to this section is insufficient to utilize the balance of unal- located film production tax credits from such pool, then all or part of the remainder, after such pending applications are considered, shall be made available for allocation for the empire state film post production credit pursuant to this section, subdivision thirty-two of section two hundred ten-B and subsection (qq) of section six hundred six of this chapter. The governor's office for motion picture and television devel- opment must notify taxpayers of their allocation year and include the allocation year on the certificate of tax credit. Taxpayers eligible to claim a credit must report the allocation year directly on their empire state film production credit tax form for each year a credit is claimed and include a copy of the certificate with their tax return. In the case of a qualified film that receives funds from additional pool 2, no empire state film production credit shall be claimed before the later of the taxable year the production of the qualified film is complete, or the taxable year immediately following the allocation year for which the film has been allocated credit by the governor's office for motion picture and television development. § 3. Paragraph 4 of subdivision (e) of section 24 of the tax law, as amended by section 2 of part SSS of chapter 59 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-SIX provided however, seven million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in two thousand thirteen and two thousand fourteen and twenty-five million dollars of the annual allocation shall be available for the empire state film post production credit pursuant to section thirty-one of this article in each year starting in two thousand fifteen through two thousand [twenty-four] TWENTY-SIX. 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. 2509--C 34 A. 3009--C 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. § 4. Paragraph 6 of subdivision (a) of section 31 of the tax law, as amended by section 5-c of part M of chapter 59 of the laws of 2020, is amended to read as follows: (6) For the period two thousand fifteen through two thousand [twenty- five] TWENTY-SIX, 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, COLUMBIA, Cort- land, 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, SULLIVAN, Tioga, Tompkins, ULSTER, WARREN, WASHINGTON, Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant to the authority of this para- graph shall be five million dollars each year during the period two thousand fifteen through two thousand [twenty-five] TWENTY-SIX of the annual allocation made available to the empire state film post S. 2509--C 35 A. 3009--C production credit pursuant to paragraph four of subdivision (e) of section twenty-four of this article. Such aggregate amount of credits shall be allocated by the governor's office for motion picture and tele- vision 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 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 para- graph 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 period two thousand fifteen through two thousand [twenty-five] TWENTY-SIX. § 5. Paragraph 3 of subdivision (b) of section 24 of the tax law, as separately amended by sections 3 and 4 of part M of chapter 59 of the laws of 2020, is amended to read as follow: (3) "Qualified film" means a feature-length film, television film, relocated television production, television pilot or television series, regardless of the medium by means of which the film, pilot or 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 prima- rily 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; (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 (mono- logues, 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 commissioner 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 S. 2509--C 36 A. 3009--C this section prior to April first, two thousand twenty, such series remains in continuous production for each season, and an annual applica- tion for each season of such series is continually submitted for such series after April first, two thousand twenty. § 6. This act shall take effect immediately; provided, however, that the amendments made by section five of this act shall apply to applica- tions that are filed with the governor's office for motion picture and television development on or after April 1, 2021; provided, further, however that the amendments to paragraph 4 of subdivision (e) of section 24 of the tax law made by section two of this act shall take effect on the same date and in the same manner as section 5 of chapter 683 of the laws of 2019, as amended, takes effect. PART G Section 1. Paragraph 3 of subsection (v) of section 685 of the tax law, as amended by section 3 of part I of chapter 59 of the laws of 2018, is amended to read as follows: (3) Failure to provide complete and correct employee withholding reconciliation information. In the case of a failure by an employer to provide complete and correct quarterly withholding information relating to individual employees on a quarterly combined withholding, wage reporting and unemployment insurance return covering each calendar quar- ter of a year, such employer shall, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, pay a penalty equal to the product of [fifty] ONE HUNDRED dollars multiplied by the number of employees for whom such information is incomplete or incor- rect; provided, however, that if the number of such employees cannot be determined from the quarterly combined withholding, wage reporting and unemployment insurance return, the commissioner may utilize any informa- tion in the commissioner's possession in making such determination. The total amount of the penalty imposed pursuant to this paragraph on an employer for any such failure for each calendar quarter of a year shall not exceed [ten] TWENTY thousand dollars. § 2. This act shall take effect immediately and apply to returns filed on or after June 1, 2021. PART H Intentionally Omitted PART I Intentionally Omitted PART J Section 1. Sections 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel wagering and breeding law are REPEALED. § 2. Paragraph 1 of subdivision (f) of section 1105 of the tax law, as amended by chapter 32 of the laws of 2016, is amended to read as follows: (1) Any admission charge where such admission charge is in excess of ten cents to or for the use of any place of amusement in the state, S. 2509--C 37 A. 3009--C except charges for admission to [race tracks or] combative sports which charges are taxed under any other law of this state, or dramatic or musical arts performances, or live circus performances, or motion picture theaters, and except charges to a patron for admission to, or use of, facilities for sporting activities in which such patron is to be a participant, such as bowling alleys and swimming pools. For any person having the permanent use or possession of a box or seat or a lease or a license, other than a season ticket, for the use of a box or seat at a place of amusement, the tax shall be upon the amount for which a similar box or seat is sold for each performance or exhibition at which the box or seat is used or reserved by the holder, licensee or lessee, and shall be paid by the holder, licensee or lessee. § 3. Subdivision (a) of section 1109 of the tax law, as amended by section 1 of part BB of chapter 61 of the laws of 2005, is amended to read as follows: (a) General. In addition to the taxes imposed by sections eleven hundred five and eleven hundred ten of this article, there is hereby imposed within the territorial limits of the metropolitan commuter transportation district created and established pursuant to section twelve hundred sixty-two of the public authorities law, and there shall be paid, additional taxes, at the rate of three-eighths of one percent, which shall be identical to the taxes imposed by sections eleven hundred five and eleven hundred ten of this article. Such sections and the other sections of this article, including the definition and exemption provisions, shall apply for purposes of the taxes imposed by this section in the same manner and with the same force and effect as if the language of those sections had been incorporated in full into this section and had expressly referred to the taxes imposed by this section. NOTWITHSTANDING THE FOREGOING, THE TAX IMPOSED BY THIS SECTION SHALL NOT APPLY TO ADMISSIONS TO RACE TRACKS OR SIMULCAST FACILITIES. § 4. Subdivision (a) of section 1146 of the tax law, as amended by chapter 65 of the laws of 1985, is amended to read as follows: (a) Except in accordance with proper judicial order or as otherwise provided by law, it shall be unlawful for the [tax commission, any tax] COMMISSIONER, any officer or employee of the department of taxation and finance, any person engaged or retained by such department on an inde- pendent contract basis, or any person who in any manner may acquire knowledge of the contents of a return or report filed with the [tax commission] COMMISSIONER pursuant to this article, to divulge or make known in any manner any particulars set forth or disclosed in any such return or report. The officers charged with the custody of such returns and 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 [tax commission] COMMISSIONER in an action or proceeding under the provisions of the tax law or in any other action or proceeding involving the collection of a tax due under this chapter to which the state or the [tax commission] COMMISSIONER is a party or a claimant, or on behalf of any party to any action, proceeding or hearing under the provisions of this article when the returns, reports or facts shown thereby are directly involved in such action, proceeding or hear- ing, in any of which events the court, or in the case of a hearing, the [tax commission] COMMISSIONER may require the production of, and may admit into evidence, so much of said returns, reports or of the facts shown thereby, as are pertinent to the action, proceeding or hearing and no more. The [tax commission] COMMISSIONER may, nevertheless, publish a copy or a summary of any decision rendered after a hearing required by S. 2509--C 38 A. 3009--C this article. Nothing herein shall be construed to prohibit the delivery to a person who has filed a return or report or his duly authorized representative of a certified copy of any return or report filed in connection with his tax. Nor shall anything herein be construed to prohibit the delivery to a person required to collect the tax under this article or a purchaser, transferee or assignee personally liable under the provisions of subdivision (c) of section eleven hundred forty-one of this chapter for the tax due from the seller, transferor or assignor, of any return or report filed under this article in connection with such tax provided, however, that there may be delivered only so much of said return, report or of the facts shown thereby as are pertinent to a determination of the taxes due or liability owed by such person or purchaser, transferee or assignee and no more or to prohibit the publi- cation of statistics so classified as to prevent the identification of particular returns or reports and the items thereof, or the inspection by the attorney general or other legal representatives of the state of the return or report of any person required to collect or pay the tax who shall bring action to review the tax based thereon, or against whom an action or proceeding under this chapter has been recommended by the commissioner of taxation and finance or the attorney general or has been instituted, or the inspection of the 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 person required to collect or pay the tax under this article. Provided, further, nothing herein shall be construed to prohibit the disclosure, in such manner as the [tax commis- sion] COMMISSIONER deems appropriate, of the names and other appropriate identifying information of those persons holding certificates of author- ity pursuant to section eleven hundred thirty-four of this article, those persons whose certificates of authority have been suspended or revoked, those persons whose certificates of authority have expired, those persons who have filed a certificate of registration for a certif- icate of authority where the [tax commission] COMMISSIONER has refused to issue a certificate of authority, those persons holding direct payment permits pursuant to section eleven hundred thirty-two or those persons whose direct payment permits have been suspended or revoked by the [tax commission] COMMISSIONER; AND PROVIDED FURTHER THAT NOTHING HEREIN SHALL BE CONSTRUED TO PROHIBIT THE DISCLOSURE, IN SUCH MANNER AS THE COMMISSIONER DEEMS APPROPRIATE, OF INFORMATION RELATED TO THE TAX ON ADMISSIONS TO RACE TRACKS AND SIMULCAST FACILITIES TO THE GAMING COMMIS- SION OR THE DIVISION OF THE BUDGET. § 5. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as amended by section 2 of part WW, subparagraph (i) as separately amended by section 5 of part Z of chapter 60 of the laws of 2016, is amended to read as follows: (1) Either, all of the taxes described in article twenty-eight of this chapter, at the same uniform rate, as to which taxes all provisions of the local laws, ordinances or resolutions imposing such taxes shall be identical, except as to rate and except as otherwise provided, with the corresponding provisions in such article twenty-eight, including the definition and exemption provisions of such article, so far as the provisions of such article twenty-eight can be made applicable to the taxes imposed by such city or county and with such limitations and special provisions as are set forth in this article. The taxes author- ized under this subdivision may not be imposed by a city or county unless the local law, ordinance or resolution imposes such taxes so as S. 2509--C 39 A. 3009--C to include all portions and all types of receipts, charges or rents, subject to state tax under sections eleven hundred five and eleven hundred ten of this chapter, except as otherwise provided. NOTWITH- STANDING THE FOREGOING, A TAX IMPOSED BY A CITY OR COUNTY AUTHORIZED UNDER THIS SUBDIVISION SHALL NOT INCLUDE THE TAX IMPOSED ON CHARGES FOR ADMISSION TO RACE TRACKS AND SIMULCAST FACILITIES UNDER SUBDIVISION (F) OF SECTION ELEVEN HUNDRED FIVE OF THIS CHAPTER. (i) Any local law, ordi- nance or resolution enacted by any city of less than one million or by any county or school district, imposing the taxes authorized by this subdivision, shall, notwithstanding any provision of law to the contra- ry, exclude from the operation of such local taxes all sales of tangible personal property for use or consumption directly and predominantly in the production of tangible personal property, gas, electricity, refrig- eration or steam, for sale, by manufacturing, processing, generating, assembly, refining, mining or extracting; and all sales of tangible personal property for use or consumption predominantly either in the production of tangible personal property, for sale, by farming or in a commercial horse boarding operation, or in both; and all sales of fuel sold for use in commercial aircraft and general aviation aircraft; and, unless such city, county or school district elects otherwise, shall omit the provision for credit or refund contained in clause six of subdivi- sion (a) or subdivision (d) of section eleven hundred nineteen of this chapter. (ii) Any local law, ordinance or resolution enacted by any city, county or school district, imposing the taxes authorized by this subdivision, shall omit the residential solar energy systems equipment and electricity exemption provided for in subdivision (ee), the commer- cial solar energy systems equipment and electricity exemption provided for in subdivision (ii), the commercial fuel cell electricity generating systems equipment and electricity generated by such equipment exemption provided for in subdivision (kk) and the clothing and footwear exemption provided for in paragraph thirty of subdivision (a) of section eleven hundred fifteen of this chapter, unless such city, county or school district elects otherwise as to such residential solar energy systems equipment and electricity exemption, such commercial solar energy systems equipment and electricity exemption, commercial fuel cell elec- tricity generating systems equipment and electricity generated by such equipment exemption or such clothing and footwear exemption. § 6. Paragraph 1 of subdivision (b) of section 1210 of the tax law, as amended by section 3 of part WW of chapter 60 of the laws of 2016, is amended to read as follows: (1) Or, one or more of the taxes described in subdivisions (b), (d), (e) and (f) of section eleven hundred five of this chapter, at the same uniform rate, including the transitional provisions in section eleven hundred six of this chapter covering such taxes, but not the taxes described in subdivisions (a) and (c) of section eleven hundred five of this chapter. Provided, further, that where the tax described in subdi- vision (b) of section eleven hundred five of this chapter is imposed, the compensating use taxes described in clauses (E), (G) and (H) of subdivision (a) of section eleven hundred ten of this chapter shall also be imposed. Provided, further, that where the taxes described in subdi- vision (b) of section eleven hundred five OF THIS CHAPTER are imposed, such taxes shall omit: (A) the provision for refund or credit contained in subdivision (d) of section eleven hundred nineteen of this chapter with respect to such taxes described in such subdivision (b) of section eleven hundred five unless such city or county elects to provide such provision or, if so elected, to repeal such provision; (B) the exemption S. 2509--C 40 A. 3009--C provided in paragraph two of subdivision (ee) of section eleven hundred fifteen of this chapter unless such county or city elects otherwise; (C) the exemption provided in paragraph two of subdivision (ii) of section eleven hundred fifteen of this chapter, unless such county or city elects otherwise; and (D) the exemption provided in paragraph two of subdivision (kk) of section eleven hundred fifteen of this chapter, unless such county or city elects otherwise; AND PROVIDED FURTHER THAT WHERE THE TAX DESCRIBED IN SUBDIVISION (F) OF SUCH SECTION ELEVEN HUNDRED FIVE IS IMPOSED, SUCH TAX SHALL NOT APPLY TO CHARGES FOR ADMIS- SION TO RACE TRACKS AND SIMULCAST FACILITIES. § 7. Notwithstanding any provisions of law to the contrary and notwithstanding the repeal of sections 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009 of the racing, pari-mutuel wagering and breeding law by section one of this act, all provisions of such sections 227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009, in respect to the imposition, exemption, assessment, payment, payment over, determination, collection, and credit or refund of tax, interest and penalty imposed thereunder, the filing of forms and returns, the preser- vation of records for the purposes of such tax, the disposition of revenues, and any civil and criminal penalties applicable to the violation of the provisions of such sections 227, 306 and 406, subpara- graph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of subdivision 5 of section 1009, shall continue in full force and effect with respect to all such tax accrued for periods prior to the effective date of this act in the same manner as they might if such provisions were not repealed. § 8. This act shall take effect November 1, 2021 and shall apply to charges for admissions to race tracks and simulcast facilities on and after such date; provided, however, that any race track that is author- ized to conduct a racing meet that begins before November 1, 2021 and ends after such date shall collect and remit the tax due for such meet in accordance with the provisions of the applicable section of the racing, pari-mutuel wagering and breeding law, notwithstanding the repeal of such section. PART K Intentionally Omitted PART L Intentionally Omitted PART M Section 1. Subdivision (jj) of section 1115 of the tax law, as amended by section 1 of part V of chapter 59 of the laws of 2019, is amended to read as follows: (jj) Tangible personal property or services otherwise taxable under this article sold to a related person shall not be subject to the taxes imposed by section eleven hundred five of this article or the compensat- ing use tax imposed under section eleven hundred ten of this article where the purchaser can show that the following conditions have been met to the extent they are applicable: (1)(i) the vendor and the purchaser S. 2509--C 41 A. 3009--C are referenced as either a "covered company" as described in section 243.2(f) or a "material entity" as described in section 243.2(l) of the Code of Federal Regulations in a resolution plan that has been submitted to an agency of the United States for the purpose of satisfying subpara- graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- Frank Wall Street Reform and Consumer Protection Act (the "Act") or any successor law, or (ii) the vendor and the purchaser are separate legal entities pursuant to a divestiture directed pursuant to subparagraph 5 of paragraph (d) of section one hundred sixty-five of such act or any successor law; (2) the sale would not have occurred between such related entities were it not for such resolution plan or divestiture; and (3) in acquiring such property or services, the vendor did not claim an exemption from the tax imposed by this state or another state based on the vendor's intent to resell such services or property. A person is related to another person for purposes of this subdivision if the person bears a relationship to such person described in section two hundred sixty-seven of the internal revenue code. The exemption provided by this subdivision shall not apply to sales made, services rendered, or uses occurring after June thirtieth, two thousand [twenty-one] TWENTY-FOUR, except with respect to sales made, services rendered, or uses occurring pursuant to binding contracts entered into on or before such date; but in no case shall such exemption apply after June thirtieth, two thousand [twenty-four] TWENTY-SEVEN. § 2. This act shall take effect immediately. PART N Section 1. Subparagraph (vi) of paragraph 1 of subdivision (a) of section 1134 of the tax law, as amended by section 160 of part A of chapter 389 of the laws of 1997, is amended to read as follows: (vi) every person described in subparagraph (i), (ii), (iii), (iv) or (v) of this paragraph or every person who is a vendor solely by reason of clause (D), (E) or (F) of subparagraph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article who or which has had its certificate of authority revoked under paragraph four of this subdivision, shall file with the commissioner a certificate of registration, in a form prescribed by the commissioner, at least twenty days prior to commencing business or opening a new place of business or such purchasing, selling or taking of possession or payment, whichever comes first. Every person who is a vendor solely by reason of clause (D) of subparagraph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article shall file with the commissioner a certificate of registration, in a form prescribed by such commissioner, within thirty days after the day on which the cumulative total number of occasions that such person came into the state to deliver property or services, for the immediately preceding four quarterly periods ending on the last day of February, May, August and November, exceeds twelve. Every person who is a vendor solely by reason of clause (E) of subpara- graph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article shall file with the commissioner a certif- icate of registration, in a form prescribed by such commissioner, within thirty days after the day on which the cumulative total, for the imme- diately preceding four quarterly periods ending on the last day of February, May, August and November, of such person's gross receipts from sales of property delivered in this state exceeds [three] FIVE hundred thousand dollars and number of such sales exceeds one hundred. Every S. 2509--C 42 A. 3009--C person who is a vendor solely by reason of clause (F) of subparagraph (i) of paragraph eight of subdivision (b) of section eleven hundred one of this article shall file with the commissioner a certificate of regis- tration, in a form prescribed by such commissioner, within thirty days after the day on which tangible personal property in which such person retains an ownership interest is brought into this state by the person to whom such property is sold, where the person to whom such property is sold becomes or is a resident or uses such property in any manner in carrying on in this state any employment, trade, business or profession. Information with respect to the notice requirements of a purchaser, transferee or assignee and such person's liability pursuant to the provisions of subdivision (c) of section eleven hundred forty-one of this chapter shall be included in or accompany the certificate of regis- tration form furnished the applicant. The commissioner shall also include with such information furnished to each applicant general infor- mation about the tax imposed under this article including information on records to be kept, returns and payments, notification requirements and forms. Such certificate of registration may be amended in accordance with rules promulgated by the commissioner. § 2. This act shall take effect immediately. PART O Section 1. Subdivision (a) of section 1401 of the tax law, as amended by chapter 576 of the laws of 1994, is amended to read as follows: (a) (1) "Person" means an individual, partnership, limited liability company, society, association, joint stock company, corporation, estate, receiver, trustee, assignee, referee or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, any combination of individuals, and any other form of unin- corporated enterprise owned or conducted by two or more persons. (2) "PERSON" SHALL INCLUDE ANY INDIVIDUAL, CORPORATION, PARTNERSHIP OR LIMITED LIABILITY COMPANY OR AN OFFICER OR EMPLOYEE OF ANY CORPORATION (INCLUDING A DISSOLVED CORPORATION), OR A MEMBER OR EMPLOYEE OF ANY PARTNERSHIP, OR A MEMBER, MANAGER OR EMPLOYEE OF A LIMITED LIABILITY COMPANY, WHO AS SUCH OFFICER, EMPLOYEE, MANAGER OR MEMBER IS UNDER A DUTY TO ACT FOR SUCH CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY OR INDIVIDUAL PROPRIETORSHIP IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE, OR HAS SO ACTED. § 2. Subdivision (a) of section 1404 of the tax law, as amended by chapter 61 of the laws of 1989, is amended to read as follows: (a) The real estate transfer tax IMPOSED PURSUANT TO SECTION FOURTEEN HUNDRED TWO OF THIS ARTICLE shall be paid by the grantor AND SUCH TAX SHALL NOT BE PAYABLE, DIRECTLY OR INDIRECTLY, BY THE GRANTEE EXCEPT AS PROVIDED IN A CONTRACT BETWEEN GRANTOR AND GRANTEE OR AS OTHERWISE PROVIDED IN THIS SECTION. If the grantor has failed to pay the tax imposed by this article at the time required by section fourteen hundred ten of this article or if the grantor is exempt from such tax, the gran- tee shall have the duty to pay the tax. Where the grantee has the duty to pay the tax because the grantor has failed to pay, such tax shall be the joint and several liability of the grantor and the grantee; PROVIDED THAT IN THE EVENT OF SUCH FAILURE, THE GRANTEE SHALL HAVE A CAUSE OF ACTION AGAINST THE GRANTOR FOR RECOVERY OF PAYMENT OF SUCH TAX, INTEREST AND PENALTIES BY THE GRANTEE. IN THE CASE OF A CONVEYANCE OF RESIDEN- TIAL REAL PROPERTY AS DEFINED IN SUBDIVISION (A) OF SECTION FOURTEEN HUNDRED TWO-A OF THIS ARTICLE, IF THE TAX IMPOSED BY THIS ARTICLE IS S. 2509--C 43 A. 3009--C PAID BY THE GRANTEE PURSUANT TO A CONTRACT BETWEEN THE GRANTOR AND THE GRANTEE, THE AMOUNT OF SUCH TAX SHALL BE EXCLUDED FROM THE CALCULATION OF CONSIDERATION SUBJECT TO TAX UNDER THIS ARTICLE. § 3. Subdivision (a) of section 1409 of the tax law, as amended by chapter 297 of the laws of 2019, is amended to read as follows: (a) (1) A joint return shall be filed by both the grantor and the grantee for each conveyance whether or not a tax is due thereon other than a conveyance of an easement or license to a public utility as defined in subdivision two of section one hundred eighty-six-a of this chapter or to a public utility which is a provider of telecommunication services as defined in subdivision one of section one hundred eighty- six-e of this chapter, where the consideration is two dollars or less and is clearly stated as actual consideration in the instrument of conveyance. (2) When the grantor or grantee of a deed for A BUILDING USED AS resi- dential real property containing [one- to four-] UP TO FOUR family dwelling units is a limited liability company, the joint return shall not be accepted for filing unless it is accompanied by a document which identifies the names and business addresses of all members, managers, and any other authorized persons, if any, of such limited liability company and the names and business addresses or, if none, the business addresses of all shareholders, directors, officers, members, managers and partners of any limited liability company or other business entity that are to be the members, managers or authorized persons, if any, of such limited liability company. The identification of such names and addresses shall not be deemed an unwarranted invasion of personal priva- cy pursuant to article six of the public officers law. If any such member, manager or authorized person of the limited liability company is itself a limited liability company or other business entity OTHER THAN A PUBLICLY TRADED ENTITY, A REIT, A UPREIT, OR A MUTUAL FUND, the names and addresses of the shareholders, directors, officers, members, manag- ers and partners of the limited liability company or other business entity shall also be disclosed until full disclosure of ultimate owner- ship by natural persons is achieved. For purposes of this subdivision, the terms "members", "managers", "authorized person", "limited liability company" and "other business entity" shall have the same meaning as those terms are defined in section one hundred two of the limited liability company law. (3) The return shall be filed with the recording officer before the instrument effecting the conveyance may be recorded. However, if the tax is paid to the commissioner pursuant to section fourteen hundred ten of this article, the return shall be filed with such commissioner at the time the tax is paid. In that instance, a receipt evidencing the filing of the return and the payment of tax shall be filed with the recording officer before the instrument effecting the conveyance may be recorded. The recording officer shall handle such receipt in the same manner as a return filed with the recording officer. § 4. Subdivision (h) of section 1418 of the tax law, as added by section 7 of part X of chapter 56 of the laws of 2010 and as further amended by subdivision (c) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: (h) Notwithstanding the provisions of subdivision (a) of this section, the commissioner may furnish information relating to real property transfers obtained or derived from returns filed pursuant to this arti- cle in relation to the real estate transfer tax, to the extent that such information is also required to be reported to the commissioner by S. 2509--C 44 A. 3009--C section three hundred thirty-three of the real property law and section five hundred seventy-four of the real property tax law and the rules adopted thereunder, provided such information was collected through a combined process established pursuant to an agreement entered into with the commissioner pursuant to paragraph viii of subdivision one-e of section three hundred thirty-three of the real property law. The commis- sioner may redisclose such information to the extent authorized by section five hundred seventy-four of the real property tax law. THE COMMISSIONER MAY ALSO DISCLOSE ANY INFORMATION REPORTED PURSUANT TO PARAGRAPH TWO OF SUBDIVISION (A) OF SECTION FOURTEEN HUNDRED NINE OF THIS ARTICLE. § 5. This act shall take effect immediately; provided however that sections one and two of this act shall take effect July 1, 2021, and shall apply to conveyances occurring on or after such date other than conveyances that are made pursuant to binding written contracts entered into on or before April 1, 2021, provided that the date of execution of such contract is confirmed by independent evidence, such as the record- ing of the contract, payment of a deposit or other facts and circum- stances as determined by the commissioner of taxation and finance. PART P Section 1. Section 480-a of the tax law is amended by adding a new subdivision 6 to read as follows: 6. (A) NO RETAIL DEALER WHO HAS ITS RETAIL DEALER REGISTRATION CANCELLED, SUSPENDED OR REVOKED PURSUANT TO THIS SECTION OR HAS BEEN FORBIDDEN FROM SELLING CIGARETTES OR TOBACCO PRODUCTS PURSUANT TO PARA- GRAPH (J) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY OF THIS ARTICLE SHALL POSSESS CIGARETTES OR TOBACCO PRODUCTS IN ANY PLACE OF BUSINESS, CART, STAND, TRUCK OR OTHER MERCHANDISING DEVICE IN THIS STATE BEGINNING ON THE TENTH DAY AFTER SUCH CANCELLATION, SUSPENSION, REVOCA- TION, OR FORBIDDANCE AND CONTINUING FOR THE DURATION OF THE SAME; PROVIDED HOWEVER, SUCH RETAIL DEALER SHALL NOT BE PROHIBITED BEFORE THE TENTH DAY AFTER SUCH CANCELLATION, SUSPENSION, REVOCATION, OR FORBID- DANCE FROM SELLING OR TRANSFERRING ITS INVENTORY OF LAWFULLY STAMPED CIGARETTES OR TOBACCO PRODUCTS ON WHICH THE TAXES IMPOSED BY THIS ARTI- CLE HAVE BEEN ASSUMED OR PAID TO A PROPERLY REGISTERED RETAIL DEALER WHOSE REGISTRATION IS NOT CANCELLED, SUSPENDED, OR REVOKED OR WHO HAS NOT BEEN FORBIDDEN FROM SELLING CIGARETTES OR TOBACCO PRODUCTS. (B) NO RETAIL DEALER SHALL POSSESS CIGARETTES OR TOBACCO PRODUCTS IN ANY PLACE OF BUSINESS, CART, STAND, TRUCK OR OTHER MERCHANDISING DEVICE IN THIS STATE UNLESS IT HAS OBTAINED A VALID RETAIL DEALER REGISTRATION FROM THE COMMISSIONER. (C) THE POSSESSION OF CIGARETTES OR TOBACCO PRODUCTS BY AN UNLICENSED RETAIL DEALER IN VIOLATION OF PARAGRAPH (A) OR (B) OF THIS SUBDIVISION SHALL BE SUBJECT TO THE PENALTIES AUTHORIZED BY SUBDIVISION THREE OF THIS SECTION. § 2. Subparagraph (A) of paragraph 4 of subdivision (a) of section 1134 of the tax law, as amended by section 5 of part I of chapter 59 of the laws of 2020, 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 S. 2509--C 45 A. 3009--C 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, (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 subparagraph (iii) of paragraph (a) of subdivision four of such section four hundred eighty-a, OR (VIII) HAS NOT OBTAINED A VALID RETAIL DEALER REGISTRATION UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER AND SUCH PERSON POSSESSES OR SELLS UNSTAMPED OR UNLAWFULLY STAMPED PACKAGES OF CIGARETTES THREE OR MORE TIMES WITHIN A PERIOD OF FIVE YEARS, 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 (A) 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 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, OR (B) THE GROUNDS SET FORTH IN CLAUSE (VIII) OF THIS SUBPARAGRAPH, SUCH SUSPENSION OR REVOCATION SHALL BE FOR A PERI- OD OF FIVE YEARS. § 2-a. Subparagraph (A) of paragraph 4 of subdivision (a) of section 1134 of the tax law, as amended by section 6 of part I of chapter 59 of the laws of 2020, 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) 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 this chapter, has had a retail dealer registration issued pursuant to section four hundred eighty-a of this chapter suspended or revoked pursuant to subparagraph (iii) of paragraph (a) of subdivision four of such section four hundred eighty-a, OR (VII) HAS NOT OBTAINED A VALID RETAIL DEALER REGISTRATION UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER AND SUCH PERSON POSSESSES OR SELLS UNSTAMPED OR UNLAWFULLY STAMPED PACKAGES OF CIGARETTES THREE OR MORE TIMES WITHIN A PERIOD OF FIVE YEARS, 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 (A) 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 S. 2509--C 46 A. 3009--C 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, OR (B) THE GROUNDS SET FORTH IN CLAUSE (VII) OF THIS SUBPARAGRAPH, SUCH SUSPENSION OR REVOCATION SHALL BE FOR A PERI- OD OF FIVE YEARS. § 3. Subparagraph (B) of paragraph 4 of subdivision (a) of section 1134 of the tax law, as amended by section 7 of part I of chapter 59 of the laws of 2020, 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, (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 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 subparagraph (iii) of paragraph (a) of subdivi- sion four of such section four hundred eighty-a, where such revocation remains in effect, OR (VIII) SUCH PERSON HAS NOT OBTAINED A VALID RETAIL DEALER REGISTRATION UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER S. 2509--C 47 A. 3009--C AND HAS POSSESSED OR SOLD UNSTAMPED OR UNLAWFULLY STAMPED PACKAGES OF CIGARETTES THREE OR MORE TIMES WITHIN A PERIOD OF FIVE YEARS, the commissioner may refuse to issue a certificate of authority; PROVIDED HOWEVER THAT UNDER THE CIRCUMSTANCES DESCRIBED IN CLAUSE (VIII) OF THIS SUBPARAGRAPH, SUCH PERSON SHALL NOT BE ELIGIBLE TO SUBMIT A CERTIFICATE OF REGISTRATION FOR A CERTIFICATE OF AUTHORITY UNTIL FIVE YEARS AFTER ITS LAST POSSESSION OR SALE OF UNSTAMPED OR UNLAWFULLY STAMPED PACKAGES OF CIGARETTES WITHIN SUCH FIVE YEAR PERIOD. § 4. Any retail dealer who, prior to the effective date of this act, had its retail dealer registration cancelled, suspended, or revoked pursuant to section four hundred eighty-a of the tax law or was forbid- den from selling cigarettes or tobacco products pursuant to paragraph (j) of subdivision one of section four hundred eighty of the tax law and such cancellation, suspension, revocation, or forbiddance remains in effect as of the effective date of this act, shall be prohibited from possessing cigarettes and tobacco products beginning on the tenth day after the effective date of this act and continuing for as long as such cancellation, suspension, revocation, or forbiddance shall remain in effect; provided however, such retail dealer shall not be prohibited before the tenth day after the effective date of this act from selling or transferring its inventory of lawfully stamped cigarettes or tobacco products on which the taxes imposed by this article have been assumed or paid to a properly registered retail dealer whose registration is not cancelled, suspended, or revoked or who has not been forbidden from selling cigarettes or tobacco products. § 5. This act shall take effect immediately; provided that the amend- ments to subparagraph (A) of paragraph 4 of subdivision (a) of section 1134 of the tax law made by section two of this act shall be subject to the expiration and reversion of such subparagraph pursuant to subdivi- sion (e) of section 23 of part U of chapter 61 of the laws of 2011, as amended, when upon such date the provisions of section two-a of this act shall take effect. PART Q Section 1. Subdivision 1 of section 429 of the tax law, as amended by chapter 433 of the laws of 1978, is amended to read as follows: 1. Every distributor, noncommercial importer or other person shall, on or before the twentieth day of each month, file with the department of taxation and finance a return, on forms to be prescribed by the [tax commission] COMMISSIONER and furnished by such department, stating sepa- rately the number of gallons, or lesser quantity, of beers, and the number of liters, or lesser quantity, of wines and liquors sold or used by such distributor, noncommercial importer or other person in this state during the preceding calendar month, except that the [tax commis- sion] COMMISSIONER may, if [it] HE OR SHE deems it necessary [in order] to [insure] FACILITATE the EFFICIENT REPORTING AND payment of the tax imposed by this article, require returns to be made at such times and covering such periods as [it] HE OR SHE may deem necessary. Such return shall contain such further information as the [tax commission] COMMIS- SIONER shall require. The fact that the name of the distributor, noncom- mercial importer or other person is signed to a filed return shall be prima facie evidence for all purposes that the return was actually signed by such distributor, noncommercial importer or other person. § 2. Section 505 of the tax law, as amended by section 2 of part E of chapter 60 of the laws of 2007, is amended to read as follows: S. 2509--C 48 A. 3009--C § 505. Returns. Every carrier subject to this article and every carri- er to whom a certificate of registration was issued shall file on or before the last day of each month a return for the preceding calendar month where a carrier's total tax liability under this article for the preceding calendar year exceeded [four] TWELVE thousand dollars. Where a carrier's total tax liability under this article for the preceding calendar year did not exceed [four] TWELVE thousand dollars or where a carrier was not subject to such tax in the preceding calendar year, returns shall be filed quarterly, on or before the last day of the calendar month following each of the calendar quarters: January through March, April through June, July through September and October through December. Provided, however, if the commissioner consents thereto in writing, any carrier may file a return on or before the thirtieth day after the close of any different period, if the carrier's books are regularly kept on a periodic basis other than a calendar month or quar- ter. The commissioner may permit the filing of returns on an annual basis, provided the carrier was subject to the tax under this article during the entire preceding calendar year and the carrier's total tax liability under this article for such year did not exceed [two hundred fifty] TWELVE HUNDRED dollars. Such annual returns shall be filed on or before January thirty-first of the succeeding calendar year. Returns shall be filed with the commissioner on forms to be furnished by such commissioner for such purpose and shall contain such data, information or matter as the commissioner may require to be included therein. The fact that a carrier's name is signed to a filed return shall be prima facie evidence for all purposes that the return was actually signed by such carrier. The commissioner may grant a reasonable extension of time for filing returns whenever good cause exists and may waive the filing of returns if a carrier is not subject to the tax imposed by this arti- cle for the period covered by the return. Every return shall have annexed thereto a certification to the effect that the statements contained therein are true. § 3. This act shall take effect immediately; provided, however, that section two of this act shall apply to tax returns for taxable periods beginning on or after January 1, 2022. PART R Section 1. Section 1280 of the tax law is amended by adding two new subdivisions (v) and (w) to read as follows: (V) "TECHNOLOGY SERVICE PROVIDER" OR "TSP" MEANS A PERSON THAT ACTS BY EMPLOYMENT, CONTRACT OR OTHERWISE ON BEHALF OF ONE OR MORE TAXICAB OWNERS OR HAIL VEHICLE OWNERS TO COLLECT THE TRIP RECORD FOR A TAXICAB TRIP OR HAIL VEHICLE TRIP. (W) "CASH TRIP" MEANS ANY TRIP FOR WHICH THE TSP COLLECTS THE TRIP RECORD BUT DOES NOT COLLECT THE FARE. § 2. Subdivision (b) of section 1283 of the tax law, as amended by chapter 9 of the laws of 2012, is amended to read as follows: (b) (1) If the taxicab owner has designated an agent, then the agent shall be jointly liable with the taxicab owner for the tax on trips occurring during the period that such designation is in effect. Even if the TLC has specified that the taxicab owner's agent cannot operate as an agent, that agent shall be jointly liable with the taxicab owner if the agent has acted for the taxicab owner. During the period that a taxicab owner's designation of an agent is in effect, the agent shall file the returns required by this article and pay any tax due with such S. 2509--C 49 A. 3009--C return, but the taxicab owner shall not be relieved of liability for tax, penalty or interest due under this article, or for the filing of returns required to be filed, unless the agent has timely filed accurate returns and timely paid the tax required to be paid under this article. If a taxicab owner has designated an agent, then the agent must perform any act this article requires the taxicab owner to perform, but the failure of such agent to perform any such act shall not relieve the taxicab owner from the obligation to perform such act or from any liability that may arise from failure to perform the act. (2) (A) NOTWITHSTANDING THE FOREGOING, A TSP THAT COLLECTS THE TRIP RECORD AND THE TRIP FARE ON BEHALF OF A TAXICAB OWNER OR A HAIL VEHICLE OWNER SHALL WITHHOLD FROM DAILY COLLECTIONS THE TAXES DUE ON SUCH TRIPS, AND SHALL WITHHOLD FROM SUCH COLLECTIONS THE TAXES DUE ON CASH TRIPS. IF THE TSP'S DAILY COLLECTIONS, AFTER RETAINING ANY FEES TO WHICH IT IS ENTITLED PURSUANT TO A CONTRACT WITH SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, ARE INSUFFICIENT TO COVER THE TAXES DUE ON SUCH CASH TRIPS, THE TSP SHALL WITHHOLD AN AMOUNT FROM SUBSEQUENT DAILY COLLECTIONS, TO THE EXTENT FUNDS ARE AVAILABLE, UNTIL ALL TAXES DUE FOR A QUARTERLY PERIOD DESCRIBED IN SECTION TWELVE HUNDRED EIGHTY-FOUR OF THIS ARTICLE HAVE BEEN WITHHELD. IF A TSP IS UNABLE TO WITHHOLD ALL THE TAXES DUE IN SUCH QUARTERLY PERIOD, IT SHALL WITHHOLD SUCH UNWITHHELD TAXES FROM DAILY COLLECTIONS IN THE NEXT QUARTERLY PERIOD. A TSP SHALL BE JOINTLY LIABLE FOR THE TAX DUE ON ALL TRIPS FOR WHICH IT COLLECTS THE TRIP RECORD, BUT SHALL BE RELIEVED OF LIABILITY FOR ANY TAXES ATTRIBUTABLE TO CASH TRIPS FOR WHICH IT WAS UNABLE TO WITHHOLD THE TAXES DUE BECAUSE THERE WAS INSUFFICIENT DAILY COLLECTIONS DURING FOUR SUCCESSIVE QUARTERLY PERIODS. (B) FOR ANY PERIOD THAT THE TSP COLLECTS TRIP RECORDS ON BEHALF OF A TAXICAB OWNER OR HAIL VEHICLE OWNER, THE TSP SHALL FILE RETURNS REPORT- ING THE TAX DUE ON ALL TRIPS FOR WHICH IT COLLECTED TRIP RECORDS AND SHALL REMIT THE TAXES WITHHELD ON ALL SUCH TRIPS AND SHALL REPORT ANY UNWITHHELD TAXES DUE BECAUSE OF INSUFFICIENT DAILY COLLECTIONS TO COVER THE TAXES DUE ON CASH TRIPS. § 3. Subdivision (a) of section 1299-B of the tax law, as added by section 2 of part NNN of chapter 59 of the laws of 2018, is amended to read as follows: (a) Notwithstanding any provision of law to the contrary, any person that dispatches a motor vehicle by any means that provides transporta- tion that is subject to a surcharge imposed by this article, including transportation network companies as defined in article forty-four-B of the vehicle and traffic law, shall be liable for the surcharge imposed by this article, except that in the case of taxicab trips and HAIL vehi- cle trips that are also subject to tax pursuant to article twenty-nine-A of this chapter[, only the taxicab owner or HAIL base liable for that tax shall be the person liable for the surcharge imposed by this arti- cle]: (1) A TSP THAT COLLECTED THE TRIP RECORD AND TRIP FARE SHALL WITH- HOLD FROM DAILY COLLECTIONS THE SURCHARGES DUE ON SUCH TRIPS, AND SHALL WITHHOLD FROM SUCH COLLECTIONS THE SURCHARGES DUE ON CASH TRIPS. IF THE TSP'S DAILY COLLECTIONS, AFTER RETAINING ANY FEES TO WHICH IT IS ENTI- TLED PURSUANT TO A CONTRACT WITH SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, ARE INSUFFICIENT TO COVER THE SURCHARGES DUE ON SUCH CASH TRIPS, THE TSP SHALL WITHHOLD AN AMOUNT FROM SUBSEQUENT DAILY COLLECTIONS, TO THE EXTENT FUNDS ARE AVAILABLE, UNTIL ALL SURCHARGES DUE FOR A MONTHLY PERIOD HAVE BEEN WITHHELD. IF A TSP IS UNABLE TO WITHHOLD ALL THE SURCHARGES DUE IN A MONTHLY PERIOD, IT SHALL WITHHOLD SUCH UNWITHHELD SURCHARGES FROM DAILY COLLECTIONS IN THE NEXT MONTHLY PERIOD. A TSP SHALL BE JOINTLY LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE FOR S. 2509--C 50 A. 3009--C ALL TRIPS FOR WHICH THE TSP COLLECTED THE TRIP RECORD, BUT SHALL BE RELIEVED OF LIABILITY FOR ANY SURCHARGES ATTRIBUTABLE TO CASH TRIPS FOR WHICH IT WAS UNABLE TO WITHHOLD THE SURCHARGES BECAUSE THERE WERE INSUF- FICIENT DAILY COLLECTIONS DURING TWELVE SUCCESSIVE MONTHLY PERIODS. (2) THE TSP SHALL BE RESPONSIBLE FOR FILING MONTHLY RETURNS REPORTING THE SURCHARGES DUE ON ALL TRIPS FOR WHICH IT COLLECTED TRIP RECORDS, SHALL REMIT THE SURCHARGES WITHHELD ON ALL SUCH TRIPS AND SHALL REPORT ANY UNWITHHELD SURCHARGES DUE BECAUSE OF INSUFFICIENT DAILY COLLECTIONS TO COVER THE TAX DUE ON CASH TRIPS. For purposes of this section, the terms "taxicab trips," "HAIL vehicle trips," "taxicab owner," [and] "HAIL base," "TSP" AND "CASH TRIP" shall have the same meaning as they do in section twelve hundred eighty of this chapter. § 4. Section 1299-F of the tax law is amended by adding a new subdivi- sion (e) to read as follows: (E) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, PERMIT THE PROPER OFFI- CER OF THE TAXI AND LIMOUSINE COMMISSION OF THE CITY OF NEW YORK (TLC) OR THE DULY AUTHORIZED REPRESENTATIVE OF SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR SUCH OFFICER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH PERSON WITH INFORMATION CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF TAX LIABILITY UNDER THIS ARTICLE; BUT SUCH PERMISSION SHALL BE GRANTED OR SUCH INFORMATION FURNISHED ONLY IF THE TLC SHALL HAVE FURNISHED THE COMMISSIONER WITH ALL INFORMATION REQUESTED BY THE COMMISSIONER PURSUANT TO THIS ARTICLE AND SHALL HAVE PERMITTED THE COMMISSIONER OR THE COMMISSIONER'S AUTHORIZED REPRESENTATIVE TO MAKE ANY INSPECTION OF ANY RECORDS OR REPORTS CONCERN- ING FOR-HIRE TRANSPORTATION TRIPS SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, AND ANY PERSONS REQUIRED TO COLLECT SUCH SURCHARGE, FILED WITH OR POSSESSED BY THE TLC THAT THE COMMISSIONER MAY HAVE REQUESTED FROM THE TLC. PROVIDED, FURTHER, THAT THE COMMISSIONER MAY DISCLOSE TO THE TLC WHETHER OR NOT A PERSON LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE HAS PAID ALL OF THE SURCHARGES DUE UNDER THIS ARTICLE AS OF ANY GIVEN DATE. § 5. This act shall take effect immediately and shall apply to trips occurring on or after July 1, 2021. PART S Section 1. Paragraph 1 of subdivision (g) of section 32 of the tax law, as added by section 2 of part VV of chapter 59 of the laws of 2009, is amended to read as follows: (1) [If a] THE DEPARTMENT SHALL ISSUE A NOTICE TO A tax return prepar- er or facilitator [is required] FOR FAILURE to register or re-register with the department pursuant to paragraph one or three of subdivision (b) of this section, [as applicable, and fails to do so in accordance with the terms of this section, then the] WHICH SHALL SET FORTH A FIFTEEN DAY PERIOD TO CURE THE FAILURE TO REGISTER OR RE-REGISTER. THE COMMISSIONER IS AUTHORIZED TO SEND SUCH NOTICE ELECTRONICALLY TO THE TAX RETURN PREPARER'S OR FACILITATOR'S ONLINE SERVICES ACCOUNT. A tax return preparer [of] OR facilitator WHO FAILS TO REGISTER OR RE-REGISTER IN ACCORDANCE WITH SUCH NOTICE must pay a penalty of two hundred fifty dollars. [Provided, however, that if the tax return preparer or facili- tator complies with the registration requirements of this section within ninety calendar days after notification of assessment of this penalty is sent by the department, then this penalty must be abated. If the tax S. 2509--C 51 A. 3009--C return preparer or facilitator continues to fail to register or re-re- gister after the ninety calendar day period, the tax return preparer or facilitator must pay an additional penalty of five hundred dollars if the failure is for not more than one month, with an additional five hundred dollars for each additional month or fraction thereof during which the failure continues. Once the ninety calendar days specified in this paragraph have expired, the] THE penalty can be waived only for good cause shown by the tax return preparer or facilitator. § 2. Paragraph 2 of subdivision (g) of section 32 of the tax law, as added by section 2 of part VV of chapter 59 of the laws of 2009, is amended to read as follows: (2) [If] THE DEPARTMENT SHALL ISSUE A NOTICE TO a commercial tax return preparer WHO fails to pay the fee as required in paragraph one of subdivision (c) of this section, for a calendar year, [then the] WHICH SHALL SET FORTH A FIFTEEN DAY PERIOD TO CURE THE FAILURE TO PAY THE FEE. THE COMMISSIONER IS AUTHORIZED TO SEND SUCH NOTICE ELECTRONICALLY TO THE COMMERCIAL TAX RETURN PREPARER'S ONLINE SERVICES ACCOUNT. A commercial tax return preparer WHO FAILS TO PAY THE FEE IN ACCORDANCE WITH SUCH NOTICE must pay a penalty of fifty dollars for each return the commer- cial tax return preparer has filed with the department in that calendar year. [Provided however, that if the commercial tax return preparer complies with the payment requirements of paragraph one of subdivision (c) of this section, within ninety calendar days after notification of the assessment of this penalty is sent by the department, then this penalty must be abated.] The maximum penalty that may be imposed under this paragraph on any commercial tax return preparer during any calendar year must not exceed five thousand dollars. [Once the ninety calendar days specified in this paragraph have expired, the] THE penalty can be waived only for good cause shown by the commercial tax return preparer. § 3. Section 32 of the tax law is amended by adding a new subdivision (h) to read as follows: (H) (1) TAX RETURN PREPARERS AND FACILITATORS MUST PROMINENTLY AND CONSPICUOUSLY DISPLAY A COPY OF THEIR REGISTRATION CERTIFICATE ISSUED PURSUANT TO THIS SECTION, FOR THE CURRENT REGISTRATION PERIOD, AT THEIR PLACE OF BUSINESS AND AT ANY OTHER LOCATION WHERE THEY PROVIDE TAX RETURN PREPARATION AND/OR FACILITATION SERVICES, IN AN AREA WHERE TAXPAYERS USING THEIR SERVICES ARE ABLE TO SEE AND REVIEW SUCH REGISTRA- TION CERTIFICATE. (2) TAX RETURN PREPARERS AND FACILITATORS MUST PROMINENTLY AND CONSPICUOUSLY DISPLAY AT THEIR PLACE OF BUSINESS AND AT ANY OTHER LOCATION WHERE THEY PROVIDE TAX RETURN PREPARATION AND/OR FACILITATION SERVICES THE FOLLOWING DOCUMENTS: (A) A CURRENT PRICE LIST, IN AT LEAST FOURTEEN-POINT TYPE, THAT INCLUDES, BUT IS NOT LIMITED TO, A LIST OF ALL SERVICES OFFERED BY THE TAX RETURN PREPARER AND/OR FACILITATOR; THE MINIMUM FEE CHARGED FOR EACH SERVICE, INCLUDING THE FEE CHARGED FOR EACH TYPE OF FEDERAL OR NEW YORK STATE TAX RETURN TO BE PREPARED AND FACILITATION SERVICE TO BE PROVIDED; AND A LIST OF EACH FACTOR THAT MAY INCREASE A STATED FEE AND THE SPECIF- IC ADDITIONAL FEES OR RANGE OF POSSIBLE ADDITIONAL FEES WHEN EACH FACTOR APPLIES; AND (B) A COPY OF THE MOST RECENT CONSUMER BILL OF RIGHTS REGARDING TAX PREPARERS PUBLISHED BY THE DEPARTMENT PURSUANT TO SECTION THREE HUNDRED SEVENTY-TWO OF THE GENERAL BUSINESS LAW. (3) A TAX RETURN PREPARER OR FACILITATOR WHO FAILS TO COMPLY WITH ANY OF THE REQUIREMENTS OF THIS SUBDIVISION MUST PAY A PENALTY OF FIVE HUNDRED DOLLARS FOR THE FIRST MONTH OF NON-COMPLIANCE AND FIVE HUNDRED S. 2509--C 52 A. 3009--C DOLLARS FOR EACH SUBSEQUENT MONTH OF NON-COMPLIANCE THEREAFTER. THE MAXIMUM PENALTY THAT MAY BE IMPOSED UNDER THIS SUBDIVISION ON ANY TAX RETURN PREPARER OR FACILITATOR DURING ANY CALENDAR YEAR MUST NOT EXCEED TEN THOUSAND DOLLARS. THE PENALTY CAN BE WAIVED ONLY FOR GOOD CAUSE SHOWN BY THE TAX RETURN PREPARER OR FACILITATOR. § 4. The second subdivision (g) of section 32 of the tax law is relet- tered subdivision (i). § 5. This act shall take effect immediately; provided, however, that paragraph (3) of subdivision (h) of section 32 of the tax law, as added by section three of this act, shall take effect January 1, 2022. PART T Intentionally Omitted PART U Section 1. Paragraphs i and v 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, are amended to read as follows: i. A recording officer shall not record or accept for [record] RECORD- ING any conveyance of real property affecting land in New York state unless accompanied by ONE OF THE FOLLOWING: (1) A RECEIPT ISSUED BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW; OR (2) 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. 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 provision of law to the contrary, affirmants may be allowed, but shall not be required, to sign such affirmations electronically. § 2. Paragraphs vii and viii of subdivision 1-e of section 333 of the real property law are REPEALED. § 3. 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 S. 2509--C 53 A. 3009--C amended by subdivision (d) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 3. [The] (I) WHEN A recording officer [of every county and the city of New York] IS PRESENTED WITH A CONVEYANCE FOR RECORDING THAT IS ACCOMPA- NIED BY A RECEIPT ISSUED BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW, SUCH RECORDING OFFICER SHALL BE RELIEVED OF THE RESPONSI- BILITY TO COLLECT THE FEE DESCRIBED BY THIS SUBDIVISION. HE OR SHE SHALL NONETHELESS BE ENTITLED TO THE PORTION OF SUCH FEE THAT HE OR SHE WOULD OTHERWISE HAVE DEDUCTED PURSUANT TO THIS SUBDIVISION, AS PROVIDED BY SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW. (II) WHEN A RECORDING OFFICER IS PRESENTED WITH A CONVEYANCE FOR RECORDING THAT IS NOT ACCOMPANIED BY SUCH A RECEIPT, HE OR SHE 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 para- graph 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 SUBPARAGRAPH TWO OF PARAGRAPH I OF 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 twen- ty-one of title eleven of the administrative code of the city of New York, except where a real property transfer reporting form is also submitted for recording for the transfer as required under SUBPARAGRAPH TWO OF PARAGRAPH I OF 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. § 4. Subsection (d) of section 663 of the tax law, as amended by section 1 of part P of chapter 686 of the laws of 2003, is amended to read as follows: (d) A recording officer shall not record or accept for [record] RECORDING any deed unless ONE OF THE FOLLOWING CONDITIONS IS SATISFIED: (1) IT IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMISSIONER INDICAT- ING THAT THE ESTIMATED TAX REQUIRED BY THIS SECTION HAS BEEN PAID TO THE COMMISSIONER EITHER ELECTRONICALLY OR AS OTHERWISE PRESCRIBED BY HIM OR HER; (2) IT IS accompanied by a form prescribed by the commissioner pursu- ant to subsection (b) of this section and the payment of any estimated tax shown as payable on such form[,]; or [unless] (3) such RECEIPT OR form includes a certification by the transferor that this section is inapplicable to the sale or transfer. § 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] 1. WHEN A recording officer designated to act as such agent IS PRESENTED WITH A CONVEYANCE FOR RECORDING THAT IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMISSIONER PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THIS ARTICLE, SUCH RECORDING OFFICER SHALL BE RELIEVED OF THE RESPONSIBILITY TO COLLECT THE REAL ESTATE TRANSFER TAX THEREON. HE OR SHE SHALL NONETHELESS BE ENTITLED TO THE PORTION OF SUCH TAX THAT HE OR SHE WOULD OTHERWISE HAVE RETAINED PURSUANT TO THIS SUBDIVISION, AS PROVIDED BY SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW. S. 2509--C 54 A. 3009--C 2. WHEN A RECORDING OFFICER IS PRESENTED WITH A CONVEYANCE FOR RECORD- ING THAT IS NOT ACCOMPANIED BY A RECEIPT DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION, HE OR SHE SHALL COLLECT THE APPLICABLE REAL ESTATE TRANSFER TAX AND 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 effecting 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 taxation 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 regu- lations of the commissioner 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. § 6. Subdivision (b) of 1409 of the tax law, as added by chapter 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 THIS 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 ONE OF THE FOLLOWING CONDITIONS IS SATISFIED: S. 2509--C 55 A. 3009--C (1) THE INSTRUMENT IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMIS- SIONER PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY- THREE OF THIS ARTICLE; OR (2) the return required by section fourteen hundred nine of this arti- cle has been filed and the real estate transfer tax due, if any, shall have been paid as provided in this section. § 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 ONE OF THIS SUBDIVISION INTO A CONSOLIDATED REAL PROPERTY TRANSFER FORM TO BE FILED WITH HIM OR HER ELECTRONICALLY; PROVIDED: (1) 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 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. (2) 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. (3) WHEN A CONSOLIDATED REAL PROPERTY TRANSFER FORM IS ELECTRONICALLY SUBMITTED TO THE DEPARTMENT BY EITHER THE GRANTOR OR GRANTEE OR A DULY AUTHORIZED AGENT THEREOF, 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 S. 2509--C 56 A. 3009--C 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 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 SHALL NOTIFY THE COMMISSIONER THAT SUCH JURISDICTION WILL FOLLOW THE SYSTEM AUTHORIZED PURSUANT TO THIS SECTION TO BE USED THEREIN, IN WRITING. § 9. This act shall take effect immediately. PART V Section 1. Paragraph 2 of subdivision w of section 233 of the real property law is REPEALED. § 2. Paragraph 3 of subdivision w of section 233 of the real property law, as amended by section 18 of part B of chapter 389 of the laws of 1997, is amended to read as follows: 3. A manufactured home park owner or operator providing a reduction in rent as required by paragraph one [or two] of this subdivision may retain, in consideration for record keeping expenses, two percent of the amount of such reduction. S. 2509--C 57 A. 3009--C § 3. The opening paragraph of paragraph 3-a of subdivision w of section 233 of the real property law, as added by chapter 405 of the laws of 2001, is amended to read as follows: Any reduction required to be provided pursuant to paragraph one [or two] of this subdivision shall be provided as follows: § 4. Paragraph (l) of subdivision 2 of section 425 of the real proper- ty tax law is amended by adding a new subparagraph (iv) to read as follows: (IV) BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND TWENTY-TWO--TWO THOUSAND TWENTY-THREE SCHOOL YEAR, NO EXEMPTION SHALL BE GRANTED PURSUANT TO THIS SECTION TO A MOBILE HOME THAT IS DESCRIBED IN THIS PARAGRAPH. OWNERS OF SUCH PROPERTY MAY CLAIM THE CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW IN THE MANNER PRESCRIBED THEREIN. THE COMMISSIONER SHALL DEVELOP A PROCESS TO AUTOMATICALLY SWITCH QUALIFIED EXEMPTION RECIPIENTS INTO THE STAR CREDIT, AND TO REQUEST ADDITIONAL INFORMATION FROM THOSE EXEMPTION RECIPIENTS WHOSE CREDIT ELIGIBILITY CANNOT BE INDE- PENDENTLY CONFIRMED. EACH AFFECTED INDIVIDUAL SHALL BE NOTIFIED OF THE SWITCH AS SOON AS PRACTICABLE. ONCE THE INDIVIDUAL RECEIVES A STAR CREDIT CHECK AND DEPOSITS OR ENDORSES IT, HE OR SHE SHALL BE DEEMED TO HAVE CONSENTED TO THE SWITCH AND SHALL NOT BE PERMITTED TO SWITCH BACK TO THE EXEMPTION. § 5. Subparagraph (B) of paragraph 6 of subsection (eee) of section 606 of the tax law is amended by adding a new clause (iii) to read as follows: (III) BEGINNING WITH THE TWO THOUSAND TWENTY-TWO TAXABLE YEAR, TO RECEIVE THE CREDIT AUTHORIZED BY THIS SUBSECTION, AN OWNER OF A MOBILE HOME DESCRIBED BY CLAUSE (I) OF THIS SUBPARAGRAPH SHALL REGISTER FOR SUCH CREDIT IN THE MANNER PRESCRIBED BY THE COMMISSIONER. § 6. This act shall take effect immediately; provided, however, that the amendments to subdivision w of section 233 of the real property law made by sections one, two and three of this act shall be applicable beginning with assessment rolls used to levy school district taxes for the 2022--2023 school year. PART W Section 1. Section 200 of the real property tax law, as amended by section 4-a of part W of chapter 56 of the laws of 2010, is amended to read as follows: § 200. State board. There is hereby created in the department of taxa- tion and finance a separate and independent state board of real property tax services, to consist of five members to be appointed by the gover- nor, by and with the advice and consent of the senate. Of those five members appointed by the governor, one such person shall be an individ- ual actively engaged in the commercial production for sale of agricul- tural crops, livestock and livestock products of an average gross sales value of ten thousand dollars or more. Said individual shall be appointed in the first instance to a term of eight years upon expiration of an existing term. Said initial term shall commence on the first day of January next succeeding the year in which the existing term shall expire. The governor shall designate one of the members as the chairman of the board, who shall serve as chairman at the pleasure of the gover- nor. A MAJORITY OF THE DULY APPOINTED MEMBERS SHALL CONSTITUTE A QUORUM AND NOT LESS THAN A MAJORITY OF SUCH MEMBERS CONCURRING MAY TRANSACT ANY BUSINESS, PERFORM ANY DUTY OR EXERCISE ANY POWER OF THE BOARD. The S. 2509--C 58 A. 3009--C members of the board shall be appointed for terms of eight years, commencing on the first day of January next following the year in which the term of his predecessor expired, except that the terms of the members first appointed shall expire as follows: one on December thir- ty-first, nineteen hundred sixty-one, one on December thirty-first, nineteen hundred sixty-three, one on December thirty-first, nineteen hundred sixty-five, one on December thirty-first, nineteen hundred sixty-seven, and one on December thirty-first, nineteen hundred eighty- two. Vacancies occurring otherwise than by expiration of term shall be filled for the unexpired term. All members shall receive necessary expenses incurred in the performance of their duties. § 2. Section 307 of the real property tax law is REPEALED. § 3. Subdivision 4 of section 483 of the real property tax law, as amended by chapter 72 of the laws of 1979 and as further amended by subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010, and as renumbered by chapter 797 of the laws of 1992, is amended to read as follows: 4. Such exemption from taxation shall be granted only upon an applica- tion by the owner of the building or structure on a form prescribed by the commissioner. The applicant shall furnish such information as [such board] THE COMMISSIONER shall require. Such application shall be filed with the assessor of the city, town, village or county having the power to assess property for taxation on or before the appropriate taxable status date of such city, town, village or county and within one year from the date of completion of such construction or reconstruction. § 4. Subdivision 3 of section 489-n of the real property tax law, as added by chapter 86 of the laws of 1963 and as further amended by subdi- vision (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended to read as follows: 3. The commissioner shall meet at the time and place specified in such notice to hear complaints in relation to the tentative determination of the railroad ceiling. The provisions of section five hundred twelve of this chapter shall apply so far as may be practicable to a hearing under this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 5. Subdivision 3 of section 489-kk of the real property tax law, as added by chapter 920 of the laws of 1977 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: 3. The commissioner shall meet at the time and place specified in such notice to hear complaints in relation to the tentative determination of the railroad ceiling. The provisions of section five hundred twelve of this chapter shall apply so far as may be practicable to a hearing under this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 6. The real property tax law is amended by adding a new section 497 to read as follows: § 497. CONSTRUCTION OF CERTAIN LOCAL OPTION PROVISIONS IN EXEMPTION STATUTES. 1. POPULATION RESTRICTIONS. WHEN AN EXEMPTION STATUTE MAKES ONE OR MORE OPTIONS AVAILABLE TO MUNICIPAL CORPORATIONS HAVING A POPU- LATION WITHIN A SPECIFIED RANGE, AND THE GOVERNING BODY OF A MUNICIPAL CORPORATION ADOPTS A LOCAL LAW OR RESOLUTION EXERCISING SUCH AN OPTION WHILE ITS POPULATION IS WITHIN THE SPECIFIED RANGE, A SUBSEQUENT CHANGE IN THE POPULATION OF THE MUNICIPAL CORPORATION THAT PLACES IT OUTSIDE THE SPECIFIED RANGE SHALL NOT RENDER SUCH LOCAL LAW OR RESOLUTION INEF- FECTIVE OR INVALID, NOR SHALL IT IMPAIR THE ABILITY OF THE GOVERNING S. 2509--C 59 A. 3009--C BODY TO AMEND OR REPEAL SUCH LOCAL LAW OR RESOLUTION TO THE SAME EXTENT AS IF ITS POPULATION WERE STILL WITHIN THE SPECIFIED RANGE. PROVIDED, HOWEVER, THAT THIS SUBDIVISION SHALL NOT APPLY TO ANY EXEMPTION STATUTE THAT EXPRESSLY PROVIDES THAT A LOCAL LAW OR RESOLUTION ADOPTED THERE- UNDER SHALL BECOME INEFFECTIVE OR INVALID IF THE POPULATION OF THE MUNICIPAL CORPORATION SUBSEQUENTLY EXPERIENCES A CHANGE THAT PLACES IT OUTSIDE THE SPECIFIED RANGE. 2. FILING PROVISIONS. WHEN AN EXEMPTION STATUTE MAKES ONE OR MORE OPTIONS AVAILABLE TO SOME OR ALL MUNICIPAL CORPORATIONS, AND FURTHER PROVIDES THAT A MUNICIPAL CORPORATION ADOPTING A LOCAL LAW OR RESOLUTION EXERCISING SUCH AN OPTION SHALL FILE A COPY THEREOF WITH ONE OR MORE STATE AGENCIES OTHER THAN THE DEPARTMENT OF STATE, BUT IF SUCH STATUTE DOES NOT EXPRESSLY PROVIDE THAT A LOCAL LAW OR RESOLUTION EXERCISING SUCH AN OPTION SHALL NOT TAKE EFFECT UNTIL A COPY THEREOF IS FILED WITH THE SPECIFIED STATE AGENCY OR AGENCIES, THEN A FAILURE TO COMPLY WITH SUCH FILING PROVISION SHALL NOT RENDER SUCH LOCAL LAW OR RESOLUTION INEFFECTIVE OR INVALID. § 7. Subdivision 3 of section 499-oooo of the real property tax law, as added by chapter 475 of the laws of 2013, is amended to read as follows: 3. The commissioner or his or her designee shall meet at the time and place specified in such notice set forth in subdivision one of this section to hear complaints in relation to the tentative determination of the assessment ceiling. The provisions of section five hundred twelve of this chapter shall apply so far as may be practicable to a hearing under this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 8. Section 612 of the real property tax law, 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: § 612. Hearing of complaints. The commissioner or a duly authorized representative thereof shall meet at the time and place specified in the notice required by section six hundred eight of this chapter to hear complaints in relation to assessments of special franchises. The provisions of section five hundred twelve of this chapter shall apply so far as practicable to the hearing of complaints pursuant to this section. NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 9. Section 1208 of the real property tax law, as amended by chapter 355 of the laws of 1990 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: § 1208. Hearing of complaints. The commissioner or a duly authorized representative thereof shall meet at the time and place specified in the notice required by section twelve hundred four of this chapter to hear complaints in relation to equalization rates, class ratios or class equalization rates. The provisions of section five hundred twenty-five of this chapter shall apply so far as practicable to a hearing under this section. NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED. § 10. This act shall take effect immediately; provided, however, that notwithstanding the provisions of subdivision 2 of section 497 of the real property tax law as added by section six of this act, the decision issued by the Appellate Division, Third Department on April 16, 2020, in the Matter of Laertes Solar, LLC v Assessor of the Town of Harford, cited as 182 A.D.3d 826, 122 N.Y.S.3d 427, and 2020 NY Slip Op 02302, S. 2509--C 60 A. 3009--C motion for leave to appeal dismissed in part and otherwise denied by the Court of Appeals on November 19, 2020, shall remain binding upon the parties thereto; and provided further that the amendments made to section 499-oooo of the real property tax law made by section seven of this act shall not affect the repeal of such section and shall be deemed to be repealed therewith. PART X Section 1. Subdivisions 5, 7 and 9 of section 487 of the real property tax law, subdivision 5 as amended by chapter 325 of the laws of 2018, subdivision 7 as amended by chapter 515 and subdivision 9 as added by chapter 608 of the laws of 2002, and paragraph (a) of subdivision 9 as amended by chapter 344 of the laws of 2014, are amended to read as follows: 5. The exemption granted pursuant to this section shall only be appli- cable to (a) solar or wind energy systems or farm waste energy systems which are (i) existing or constructed prior to July first, nineteen hundred eighty-eight or (ii) constructed subsequent to January first, nineteen hundred ninety-one and prior to January first, two thousand [twenty-five] THIRTY, and (b) micro-hydroelectric energy systems, fuel cell electric generating systems, micro-combined heat and power generat- ing equipment systems, electric energy storage equipment or electric energy storage system, or fuel-flexible linear generator electric gener- ating system which are constructed subsequent to January first, two thousand eighteen and prior to January first, two thousand [twenty-five] THIRTY. 7. If the assessor is satisfied that the applicant is entitled to an exemption pursuant to this section, he or she shall approve the applica- tion and enter the taxable assessed value of the parcel for which an exemption has been granted pursuant to this section on the assessment roll with the taxable property, with the amount of the exemption SET FORTH IN A SEPARATE COLUMN as computed pursuant to subdivision two of this section in a separate column. In the event that real property granted an exemption pursuant to this section ceases to be used primari- ly for eligible purposes, the exemption granted pursuant to this section shall cease. 9. (a) A county, city, town, village or school district, except a school district under article fifty-two of the education law, that has not acted to remove the exemption under this section may require the owner of a property which includes a solar or wind energy system which meets the requirements of subdivision four of this section, to enter into a contract for payments in lieu of taxes. Such contract may require annual payments in an amount not to exceed the amounts which would otherwise be payable but for the exemption under this section. If the owner or developer of such a system provides written notification to a taxing jurisdiction of its intent to construct such a system, then in order to require the owner or developer of such system to enter into a contract for payments in lieu of taxes, such taxing jurisdiction must notify such owner or developer IN WRITING of its intent to require a contract for payments in lieu of taxes within sixty days of receiving the written notification. WRITTEN NOTIFICATION TO A TAXING JURISDICTION FOR THIS PURPOSE SHALL INCLUDE A HARD COPY LETTER SENT TO THE HIGHEST- RANKING OFFICIAL OF THE TAXING JURISDICTION. SUCH LETTER SHALL EXPLICIT- LY REFERENCE SUBDIVISION NINE OF SECTION FOUR HUNDRED EIGHTY-SEVEN OF THE REAL PROPERTY TAX LAW, AND CLEARLY STATE THAT, UNLESS THE TAXING S. 2509--C 61 A. 3009--C JURISDICTION RESPONDS WITHIN SIXTY DAYS IN WRITING WITH ITS INTENT TO REQUIRE A CONTRACT FOR PAYMENTS IN LIEU OF TAXES, SUCH PROJECT SHALL NOT BE OBLIGATED TO MAKE SUCH PAYMENTS. (b) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, SHOULD A TAXING JURISDICTION ADOPT A LAW OR RESOLUTION AT ANY TIME WITHIN OR PRIOR TO THE SIXTY DAY WINDOW, INDICATING THE TAXING JURISDICTION'S ONGOING INTENT TO REQUIRE A CONTRACT FOR PAYMENTS IN LIEU OF TAXES FOR SUCH SYSTEMS, SUCH LAW OR RESOLUTION SHALL BE CONSIDERED NOTIFICATION TO OWNERS OR DEVELOPERS AND NO FURTHER ACTION IS REQUIRED ON THE PART OF THE TAXING JURISDICTION, PROVIDED THAT SUCH LAW OR RESOLUTION REMAINS IN EFFECT THROUGH THE END OF THE SIXTY DAY NOTIFICATION PERIOD. [The] (C) ANY payment in lieu of a tax agreement shall not operate for a period of more than fifteen years, commencing in each instance from the date on which the benefits of such exemption first become available and effective. § 2. Subdivision 1 of section 575-a of the real property tax law, as added by section 1 of subpart F of part J of chapter 59 of the laws of 2019, is amended to read as follows: 1. Every corporation, company, association, joint stock association, partnership and person, their lessees, trustees or receivers appointed by any court whatsoever, owning, operating or managing any electric generating facility in the state shall annually file with the commis- sioner, by April thirtieth, a report showing the inventory, revenue, and expenses associated therewith for the most recent fiscal year, AND, IN THE CASE OF SOLAR AND WIND ENERGY SYSTEMS, SUCH OTHER INFORMATION AS THE COMMISSIONER MAY REASONABLY REQUIRE FOR THE DEVELOPMENT AND MAINTENANCE OF AN APPRAISAL MODEL AND DISCOUNT RATE AS REQUIRED PURSUANT TO SECTION 575-B OF THIS CHAPTER. Such report shall be in the form and manner prescribed by the commissioner. § 3. The real property tax law is amended by adding a new section 575-b to read as follows: § 575-B. SOLAR OR WIND ENERGY SYSTEMS. 1. THE ASSESSED VALUE FOR SOLAR OR WIND ENERGY SYSTEMS, AS DEFINED IN SECTION FOUR HUNDRED EIGHTY-SEVEN OF THIS CHAPTER, SHALL BE DETERMINED BY A DISCOUNTED CASH FLOW APPROACH THAT INCLUDES: (A) AN APPRAISAL MODEL IDENTIFIED AND PUBLISHED BY THE NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE, IN CONSULTATION WITH THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, WITHIN ONE HUNDRED EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, AND PERIODICALLY THEREAFTER AS APPROPRIATE; AND (B) A SOLAR OR WIND ENERGY SYSTEM DISCOUNT RATE OR RATES PUBLISHED ANNUALLY BY THE NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE; PROVIDED THAT PRIOR TO SUCH PUBLICATION, SUCH DISCOUNT RATE OR RATES SHALL BE PUBLISHED IN PRELIMINARY FORM ON THE DEPARTMENT'S WEBSITE AND NOTICE THEREOF SHALL BE SENT TO PARTIES WHO HAVE REQUESTED THE SAME. THE DEPARTMENT SHALL THEN ALLOW AT LEAST SIXTY DAYS FOR PUBLIC COMMENTS TO BE SUBMITTED, AND SHALL CONSIDER ANY COMMENTS SO SUBMITTED AND MAKE ANY CHANGES IT DEEMS NECESSARY PRIOR TO PUBLISHING THE FINAL DISCOUNT RATE OR RATES; AND (C) IN THE FORMULATION OF SUCH A MODEL AND DISCOUNT RATE, THE NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE SHALL CONSULT WITH THE NEW YORK STATE ASSESSORS ASSOCIATION. PROVIDED, FURTHER, IN THE FORMULATION OF SUCH A MODEL AND DISCOUNT RATE, THE NEW YORK STATE DEPARTMENT OF TAXA- TION AND FINANCE SHALL BE AUTHORIZED TO TAKE INTO ACCOUNT ECONOMIC AND COST CHARACTERISTICS OF SUCH SOLAR AND WIND ENERGY SYSTEMS LOCATED IN DIFFERENT GEOGRAPHIC REGIONS OF THE STATE AND CONSIDER REGIONALIZED S. 2509--C 62 A. 3009--C MARKET PRESSURES IN THE FORMULATION OF THE APPRAISAL MODEL AND DISCOUNT RATE REQUIRED UNDER THIS SECTION. 2. THE REPORTS REQUIRED BY SECTION FIVE HUNDRED SEVENTY-FIVE-A OF THIS TITLE SHALL BE DESIGNED TO ELICIT SUCH INFORMATION AS THE COMMISSIONER MAY REASONABLY REQUIRE FOR THE DEVELOPMENT AND MAINTENANCE OF AN APPRAISAL MODEL AND DISCOUNT RATE. 3. THE PROVISIONS OF THIS SECTION SHALL ONLY APPLY TO SOLAR OR WIND ENERGY SYSTEMS WITH A NAMEPLATE CAPACITY EQUAL TO OR GREATER THAN ONE MEGAWATT. § 4. The third undesignated paragraph of section 852 of the general municipal law, as amended by chapter 630 of the laws of 1977, is amended to read as follows: It is hereby further declared to be the policy of this state to protect and promote the health of the inhabitants of this state and to increase trade through promoting the development of facilities to provide recreation for the citizens of the state and to attract tourists from other states AND TO PROMOTE THE DEVELOPMENT OF RENEWABLE ENERGY PROJECTS TO SUPPORT THE STATE'S RENEWABLE ENERGY GOALS AS MAY BE ESTAB- LISHED OR AMENDED FROM TIME TO TIME. § 5. Subdivision 4 of section 854 of the general municipal law, as amended by section 6 of part J of chapter 59 of the laws of 2013, is amended and a new subdivision 21 is added to read as follows: (4) "Project" - shall mean any land, any building or other improve- ment, and all real and personal properties located within the state of New York and within or outside or partially within and partially outside the municipality for whose benefit the agency was created, including, but not limited to, machinery, equipment and other facilities deemed necessary or desirable in connection therewith, or incidental thereto, whether or not now in existence or under construction, which shall be suitable for manufacturing, warehousing, research, commercial, RENEWABLE ENERGY or industrial purposes or other economically sound purposes iden- tified and called for to implement a state designated urban cultural park management plan as provided in title G of the parks, recreation and historic preservation law and which may include or mean an industrial pollution control facility, a recreation facility, educational or cultural facility, a horse racing facility, a railroad facility, A RENEWABLE ENERGY PROJECT or an automobile racing facility, provided, however, no agency shall use its funds or provide financial assistance in respect of any project wholly or partially outside the municipality for whose benefit the agency was created without the prior consent ther- eto by the governing body or bodies of all the other municipalities in which a part or parts of the project is, or is to be, located, and such portion of the project located outside such municipality for whose bene- fit the agency was created shall be contiguous with the portion of the project inside such municipality. (21) "RENEWABLE ENERGY PROJECT" SHALL MEAN ANY PROJECT AND ASSOCIATED REAL PROPERTY ON WHICH THE PROJECT IS SITUATED, THAT UTILIZES ANY SYSTEM OR EQUIPMENT AS SET FORTH IN SECTION FOUR HUNDRED EIGHTY-SEVEN OF THE REAL PROPERTY TAX LAW OR AS DEFINED PURSUANT TO PARAGRAPH B OF SUBDIVI- SION ONE OF SECTION SIXTY-SIX-P OF THE PUBLIC SERVICE LAW AS ADDED BY CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO THOUSAND NINETEEN. § 6. The opening paragraph of section 858 of the general municipal law, as amended by chapter 478 of the laws of 2011, is amended to read as follows: The purposes of the agency shall be to promote, develop, encourage and assist in the acquiring, constructing, reconstructing, improving, main- S. 2509--C 63 A. 3009--C taining, equipping and furnishing industrial, manufacturing, warehous- ing, commercial, research, RENEWABLE ENERGY and recreation facilities including industrial pollution control facilities, educational or cultural facilities, railroad facilities, horse racing facilities, auto- mobile racing facilities, RENEWABLE ENERGY PROJECTS and continuing care retirement communities, provided, however, that, of agencies governed by this article, only agencies created for the benefit of a county and the agency created for the benefit of the city of New York shall be author- ized to provide financial assistance in any respect to a continuing care retirement community, and thereby advance the job opportunities, health, general prosperity and economic welfare of the people of the state of New York and to improve their recreation opportunities, prosperity and standard of living; and to carry out the aforesaid purposes, each agency shall have the following powers: § 7. Paragraph (b) of subdivision 5 of section 859-a of the general municipal law, as added by chapter 563 of the laws of 2015, is amended to read as follows: (b) a written cost-benefit analysis by the agency that identifies the extent to which a project will create or retain permanent, private sector jobs; the estimated value of any tax exemptions to be provided; the amount of private sector investment generated or likely to be gener- ated by the proposed project; THE CONTRIBUTION OF THE PROJECT TO THE STATE'S RENEWABLE ENERGY GOALS AND EMISSION REDUCTION TARGETS AS SET FORTH IN THE STATE ENERGY PLAN ADOPTED PURSUANT TO SECTION 6-104 OF THE ENERGY LAW; the likelihood of accomplishing the proposed project in a timely fashion; and the extent to which the proposed project will provide additional sources of revenue for municipalities and school districts; and any other public benefits that might occur as a result of the project; § 8. This act shall take effect immediately. PART Y Section 1. Legislative intent. Section 9 of Article 1 of the New York State Constitution was recently amended and provides "casino gambling at no more than seven facilities as authorized and prescribed by the legis- lature shall hereafter be authorized or allowed within this state". It is the sense of the legislature that this provision is not contravened by a statute that authorizes the acceptance of a wager by an individual who is betting by virtual or electronic means and the wager is accepted through equipment located within a licensed gaming facility; provided that any such wager meets other safeguards ensuring that the plain text of this provision is honored in such structure. Sports wagering is now legal online in 14 states, including the bordering states of New Jersey and Pennsylvania, while it is permitted only in person in New York at four upstate commercial gaming facilities and Native American Class III gaming facilities. An industry study found that nearly 20 percent of New Jersey's online sports wagering revenue comes from New York residents, costing the state millions of dollars in lost tax revenue. § 2. Legislative finding. The legislature hereby finds and declares that a sports wager that is made through virtual or electronic means from a location within New York state and is transmitted to and accepted by electronic equipment located at a licensed gaming facility, including without limitation a computer server located at such licensed gaming facility, is a sports wager made at such licensed gaming facility, notwithstanding any provisions of the penal law to the contrary. S. 2509--C 64 A. 3009--C § 3. Section 1367 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013, paragraphs (b) and (d) of subdivision 3 as amended by section 1 of part X of chapter 59 of the laws of 2020, is amended to read as follows: § 1367. Sports wagering. 1. As used in this section AND IN SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE: (a) "PLATFORM PROVIDER" MEANS AN ENTITY SELECTED BY THE COMMISSION TO CONDUCT MOBILE SPORTS WAGERING PURSUANT TO A COMPETITIVE BIDDING PROC- ESS; (B) "AUTHORIZED SPORTS BETTOR" MEANS AN INDIVIDUAL WHO IS PHYSICALLY PRESENT IN THIS STATE WHEN PLACING A SPORTS WAGER, WHO IS NOT A PROHIB- ITED SPORTS BETTOR, AND WHO PARTICIPATES IN SPORTS WAGERING OFFERED BY A CASINO OR A MOBILE SPORTS WAGERING LICENSEE; (C) "Casino" means a licensed gaming facility at which gambling is conducted pursuant to the provisions of this article; [(b)] (D) "Commission" means the NEW YORK STATE GAMING commission established pursuant to section one hundred two of this chapter; [(c)] (E) "Collegiate sport or athletic event" means a sport or athletic event offered or sponsored by, or played in connection with a public or private institution that offers educational services beyond the secondary level; [(d)] (F) "COVERED PERSONS" INCLUDES: ATHLETES; PLAYERS; UMPIRES; REFEREES; OFFICIALS; PERSONNEL ASSOCIATED WITH PLAYERS, CLUBS, TEAMS, LEAGUES, AND ATHLETIC ASSOCIATIONS; MEDICAL PROFESSIONALS, INCLUDING ATHLETIC TRAINERS, WHO PROVIDE SERVICES TO ATHLETES AND PLAYERS; AND THE FAMILY MEMBERS OF THESE PERSONS; (G) "HIGH SCHOOL SPORT OR ATHLETIC EVENT" MEANS A SPORT OR ATHLETIC EVENT OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A PUBLIC OR PRIVATE INSTITUTION THAT OFFERS EDUCATION SERVICES AT THE SECONDARY LEVEL; (H) "IN-PLAY SPORTS WAGER" MEANS A SPORTS WAGER PLACED ON A SPORTS EVENT AFTER THE SPORTS EVENT HAS BEGUN AND BEFORE IT ENDS; (I) "LAYOFF BET" MEANS A SPORTS WAGER PLACED BY A CASINO SPORTS POOL WITH ANOTHER CASINO SPORTS POOL; (J) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS; (K) "MOBILE SPORTS WAGERING PLATFORM" OR "PLATFORM" MEANS THE COMBINA- TION OF HARDWARE, SOFTWARE, AND DATA NETWORKS USED TO MANAGE, ADMINIS- TER, OR CONTROL SPORTS WAGERING AND ANY ASSOCIATED WAGERS ACCESSIBLE BY ANY ELECTRONIC MEANS INCLUDING MOBILE APPLICATIONS AND INTERNET WEBSITES ACCESSED VIA A MOBILE DEVICE OR COMPUTER; (L) "MOBILE SPORTS WAGERING OPERATOR" MEANS A MOBILE SPORTS WAGERING SKIN WHICH HAS BEEN LICENSED BY THE COMMISSION TO OPERATE A SPORTS POOL THROUGH A MOBILE SPORTS WAGERING PLATFORM; (M) "MOBILE SPORTS WAGERING LICENSEE" MEANS A PLATFORM PROVIDER AND A MOBILE SPORTS WAGERING OPERATOR LICENSED BY THE COMMISSION; (N) "Operator" means a casino which has elected to operate a sports pool; [(e)] (O) "Professional sport or athletic event" means an event at which two or more persons participate in sports or athletic events and receive compensation in excess of actual expenses for their partic- ipation in such event; [(f)] (P) "CONDUCT POTENTIALLY WARRANTING FURTHER INVESTIGATION" MEANS ANY STATEMENT, ACTION, OR OTHER COMMUNICATION INTENDED TO UNLAWFULLY INFLUENCE, MANIPULATE, OR CONTROL A WAGERING OUTCOME OF A SPORTING CONTEST OR PERFORMANCE IN A SPORTING CONTEST IN EXCHANGE FOR A BENEFIT OR TO AVOID FINANCIAL OR PHYSICAL HARM. "CONDUCT POTENTIALLY WARRANTING S. 2509--C 65 A. 3009--C FURTHER INVESTIGATION" MAY INCLUDE, BUT NOT BE LIMITED TO, STATEMENTS, ACTIONS, AND COMMUNICATIONS MADE TO A COVERED PERSON; (Q) "PROFESSIONAL SPORTS STADIUM OR ARENA" MEANS A STADIUM, BALLPARK, OR ARENA IN WHICH A PROFESSIONAL SPORT OR ATHLETIC EVENT OCCURS; (R) "PROHIBITED SPORTS BETTOR" MEANS: (I) ANY OFFICER OR EMPLOYEE OF THE COMMISSION; (II) ANY PRINCIPAL OR KEY EMPLOYEE OF A CASINO, MOBILE SPORTS WAGERING LICENSEE, AND ITS AFFILIATES, EXCEPT AS MAY BE PERMITTED BY THE COMMIS- SION; (III) ANY CASINO GAMING OR NON-GAMING EMPLOYEE AT THE CASINO THAT EMPLOYS SUCH PERSON AND ANY GAMING OR NON-GAMING EMPLOYEE AT THE MOBILE SPORTS WAGERING LICENSEE THAT EMPLOYS SUCH PERSON; (IV) ANY CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OR OFFICER OR EMPLOYEE OF A CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OF A CASINO OR A MOBILE SPORTS WAGERING LICENSEE IF SUCH PERSON IS DIRECTLY INVOLVED IN THE OPERATION OR OBSERVATION OF SPORTS WAGERING, OR THE PROCESSING OF SPORTS WAGERING CLAIMS OR PAYMENTS; (V) ANY PERSON SUBJECT TO A CONTRACT WITH THE COMMISSION IF SUCH CONTRACT CONTAINS A PROVISION PROHIBITING SUCH PERSON FROM PARTICIPATING IN SPORTS WAGERING; (VI) ANY SPOUSE, CHILD, SIBLING OR PARENT RESIDING IN THE PRINCIPAL PLACE OF ABODE OF ANY OF THE FOREGOING PERSONS AT THE SAME CASINO OR MOBILE SPORTS WAGERING LICENSEE WHERE THE FOREGOING PERSON IS PROHIBITED FROM PARTICIPATING IN SPORTS WAGERING; (VII) ANY AMATEUR OR PROFESSIONAL ATHLETE IF THE SPORTS WAGER IS BASED ON ANY SPORT OR ATHLETIC EVENT THAT THE ATHLETE PARTICIPATES IN AT SUCH AMATEUR OR PROFESSIONAL LEVEL; (VIII) ANY SPORTS AGENT, OWNER OR EMPLOYEE OR INDEPENDENT CONTRACTOR OF A TEAM, PLAYER AND UMPIRE UNION PERSONNEL, AND EMPLOYEE REFEREE, COACH OR OFFICIAL OF A SPORTS GOVERNING BODY, IF THE SPORTS WAGER IS BASED ON ANY SPORT OR ATHLETIC EVENT OVERSEEN BY THE INDIVIDUAL'S SPORTS GOVERNING BODY; (IX) ANY INDIVIDUAL PLACING A WAGER AS AN AGENT OR PROXY FOR ANOTHER PERSON KNOWN TO BE A PROHIBITED SPORTS BETTOR; OR (X) ANY MINOR. (S) "Prohibited sports event" means [any collegiate sport or athletic event that takes place in New York or] a sport or athletic event in which any New York college team participates regardless of where the event takes place, OR HIGH SCHOOL SPORT OR ATHLETIC EVENT. THE FOLLOWING SHALL NOT BE CONSIDERED PROHIBITED SPORTS EVENTS: (I) A COLLEGIATE TOURNAMENT, AND (II) A SPORTS EVENT WITHIN SUCH TOURNAMENT SO LONG AS NO NEW YORK COLLEGE TEAM IS PARTICIPATING IN THAT PARTICULAR SPORTS EVENT; [(g)] (T) "Sports event" means any professional sport or athletic event and any collegiate sport or athletic event, except a prohibited sports event; [(h)] (U) "SPORTS GOVERNING BODY" MEANS THE ORGANIZATION THAT PRESCRIBES FINAL RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT TO A SPORTING EVENT AND PARTICIPANTS THEREIN; (V) "Sports pool" means the business of accepting wagers on any sports event by any system or method of wagering; [and (i)] (W) "SPORTS WAGER" MEANS CASH OR CASH EQUIVALENT THAT IS PAID BY AN AUTHORIZED SPORTS BETTOR TO A CASINO OR A MOBILE SPORTS WAGERING LICENSEE TO PARTICIPATE IN SPORTS WAGERING OFFERED BY SUCH CASINO OR MOBILE SPORTS WAGERING LICENSEE; (X) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTIC- S. 2509--C 66 A. 3009--C IPATING IN A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY ANY SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED TO, IN-PERSON COMMUNICATION AND ELECTRONIC COMMUNICATION THROUGH INTERNET WEBSITES ACCESSED VIA A MOBILE DEVICE OR COMPUTER, AND MOBILE DEVICE APPLICA- TIONS; PROVIDED HOWEVER THAT SPORTS WAGERS SHALL INCLUDE, BUT ARE NOT LIMITED TO, SINGLE-GAME BETS, TEASER BETS, PARLAYS, OVER-UNDER BETS, MONEY LINE, POOLS, IN-GAME WAGERING, IN-PLAY BETS, PROPOSITION BETS, AND STRAIGHT BETS; (Y) "SPORTS WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE TOTAL OF ALL SPORTS WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS THAT A MOBILE SPORTS WAGERING LICENSEE COLLECTS FROM ALL SPORTS BETTORS, LESS THE TOTAL OF ALL SUMS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS PAID OUT AS WINNINGS TO ALL SPORTS BETTORS, HOWEVER, THAT THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS TO SPORTS BETTORS SHALL NOT INCLUDE THE CASH EQUIVALENT VALUE OF ANY MERCHANDISE OR THING OF VALUE AWARDED AS A PRIZE; (Z) "Sports wagering lounge" means an area wherein a sports pool is operated AT A CASINO FOR PLACEMENT OF IN-PERSON WAGERS; (AA) "UNUSUAL WAGERING ACTIVITY" MEANS ABNORMAL WAGERING ACTIVITY EXHIBITED BY PATRONS AND DEEMED BY THE CASINO, THE MOBILE SPORTS WAGER- ING LICENSEE, OR COMMISSION PURSUANT TO RULES AND REGULATIONS PROMULGAT- ED BY THE COMMISSION, AS A POTENTIAL INDICATOR OF SUSPICIOUS ACTIVITY. ABNORMAL WAGERING ACTIVITY MAY INCLUDE, BUT IS NOT LIMITED TO, THE SIZE OF A PATRON'S WAGER OR INCREASED WAGERING VOLUME ON A PARTICULAR EVENT OR WAGER TYPE; (BB) "SUSPICIOUS WAGERING ACTIVITY" MEANS UNUSUAL WAGERING ACTIVITY THAT CANNOT BE EXPLAINED AND IS INDICATIVE OF MATCH FIXING, THE MANIPU- LATION OF AN EVENT, MISUSE OF INSIDE INFORMATION, OR OTHER PROHIBITED ACTIVITY; AND (CC) "INDEPENDENT INTEGRITY MONITOR" MEANS AN INDEPENDENT INDIVIDUAL OR ENTITY APPROVED BY THE COMMISSION TO RECEIVE REPORTS OF UNUSUAL WAGERING ACTIVITY FROM A CASINO, MOBILE SPORTS WAGERING LICENSEE, OR COMMISSION FOR THE PURPOSE OF ASSISTING IN IDENTIFYING SUSPICIOUS WAGER- ING ACTIVITY. 2. [No gaming facility may conduct sports wagering until such time as there has been a change in federal law authorizing such or upon a ruling of a court of competent jurisdiction that such activity is lawful. 3.] (a) In addition to authorized gaming activities, a [licensed gaming facility] CASINO may [when authorized by subdivision two of this section] operate a sports pool upon the approval of the commission and in accordance with the provisions of this section and applicable regu- lations promulgated pursuant to this article. The commission shall hear and decide promptly and in reasonable order all applications for a license to operate a sports pool, shall have the general responsibility for the implementation of this section and shall have all other duties specified in this section with regard to the operation of a sports pool. The license to operate a sports pool shall be in addition to any other license required to be issued to operate a [gaming facility] CASINO. No license to operate a sports pool shall be issued by the commission to any entity unless it has established its financial stability, integrity and responsibility and its good character, honesty and integrity. No later than five years after the date of the issuance of a license and every five years thereafter or within such lesser periods as the commission may direct, a licensee shall submit to the commission such documentation or information as the commission may by regulation require, to demonstrate to the satisfaction of the executive director of S. 2509--C 67 A. 3009--C the commission that the licensee continues to meet the requirements of the law and regulations. (b) A sports pool shall be 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. Provided, however, the commission may also approve additional locations for a sports pool within 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. (c) The operator of a sports pool shall establish or display the odds at which wagers may be placed on sports events. (d) An operator shall accept wagers on sports events only from persons physically present in the sports wagering lounge, THROUGH MOBILE SPORTS WAGERING OFFERED PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE, IF SUCH OPERATOR IS ALSO A MOBILE SPORTS WAGERING LICENSEE, or any additional locations for a sports pool within the casino, approved by the gaming commission. A person placing a wager shall be at least twenty-one years of age. (e) AN OPERATOR OR MOBILE SPORTS WAGERING LICENSEE MAY ALSO ACCEPT LAYOFF BETS AS LONG AS THE AUTHORIZED SPORTS POOL PLACES SUCH WAGERS WITH ANOTHER AUTHORIZED SPORTS POOL OR POOLS IN ACCORDANCE WITH REGU- LATIONS OF THE COMMISSION. A SPORTS POOL THAT PLACES A LAYOFF BET SHALL INFORM THE SPORTS POOL ACCEPTING THE WAGER THAT THE WAGER IS BEING PLACED BY A SPORTS POOL AND SHALL DISCLOSE ITS IDENTITY. (F) AN OPERATOR OR MOBILE SPORTS WAGERING LICENSEE MAY UTILIZE GLOBAL RISK MANAGEMENT PURSUANT TO THE APPROVAL OF THE COMMISSION. (G) An operator OR MOBILE SPORTS WAGERING LICENSEE shall not admit into the sports wagering lounge, or accept wagers from, any person whose name appears on the exclusion list. [(f)] (H) The holder of a license to operate a sports pool may contract with an entity to conduct that operation, in accordance with the regulations of the commission. That entity shall obtain a license as a casino vendor enterprise prior to the execution of any such contract, and such license shall be issued pursuant to the provisions of section one thousand three hundred twenty-seven of this article and in accord- ance with the regulations promulgated by the commission. [(g)] (I) If any provision of this article or its application to any person or circumstance is held invalid, the invalidity 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 severable. [4.] 3. (a) All persons employed directly in wagering-related activ- ities conducted within a sports wagering lounge shall be licensed as a casino key employee or registered as a gaming employee, as determined by the commission. All other employees who are working in the sports wager- ing lounge may be required to be registered, if appropriate, in accord- ance with regulations of the commission. (b) Each operator of a sports pool shall designate one or more casino key employees who shall be responsible for the operation of the sports pool. At least one such casino key employee shall be on the premises whenever sports wagering is conducted. [5.] 4. Except as otherwise provided by this article, the commission shall have the authority to regulate sports pools and the conduct of sports wagering under this article to the same extent that the commis- sion regulates other gaming. No casino OR MOBILE SPORTS WAGERING LICEN- S. 2509--C 68 A. 3009--C SEE shall be authorized to operate a sports pool unless it has produced information, documentation, and assurances concerning its financial background and resources, including cash reserves, that are sufficient to demonstrate that it has the financial stability, integrity, and responsibility to operate a sports pool. In developing rules and regu- lations applicable to sports wagering, the commission shall examine the regulations implemented in other states where sports wagering is conducted and shall, as far as practicable, adopt a similar regulatory framework. The commission shall promulgate regulations necessary to carry out the provisions of this section, including, but not limited to, regulations governing the: (a) amount of cash reserves to be maintained by [operators] CASINOS AND MOBILE SPORTS WAGERING LICENSEES to cover winning wagers; (b) acceptance of wagers on a series of sports events; (c) maximum wagers which may be accepted by [an operator] A CASINO OR MOBILE SPORTS WAGERING LICENSEE from any one patron on any one sports event; (d) type of wagering tickets which may be used; (e) method of issuing tickets; (f) method of accounting to be used by [operators] CASINOS AND MOBILE SPORTS WAGERING LICENSEES; (g) types of records which shall be kept; (h) use of credit and checks by [patrons] AUTHORIZED SPORTS BETTORS; (i) THE PROCESS BY WHICH A CASINO MAY PLACE A LAYOFF BET; (J) THE USE OF GLOBAL RISK MANAGEMENT; (K) type of system for wagering; and [(j)] (L) protections for a person placing a wager. [6.] 5. Each [operator] CASINO AND MOBILE SPORTS WAGERING LICENSEE shall adopt comprehensive house rules governing sports wagering trans- actions with its [patrons] AUTHORIZED SPORTS BETTORS. The rules shall specify the amounts to be paid on winning wagers and the effect of sche- dule changes. The house rules, together with any other information the commission deems appropriate, shall be conspicuously displayed in the sports wagering lounge and included in the terms and conditions of the account wagering system, and copies shall be made readily available to [patrons] AUTHORIZED SPORTS BETTORS. MOBILE SPORTS WAGERING OPERATORS SHALL DEVELOP AND PROMINENTLY DISPLAY PROCEDURES ON THE MAIN PAGE OF SUCH MOBILE SPORTS WAGERING OPERATOR'S PLATFORM FOR THE FILING OF COMPLAINTS BY AUTHORIZED SPORTS BETTORS AGAINST SUCH MOBILE SPORTS WAGERING OPERATOR. AN INITIAL RESPONSE SHALL BE GIVEN BY SUCH MOBILE SPORTS WAGERING OPERATOR TO SUCH BETTOR FILING THE COMPLAINT WITHIN FORTY-EIGHT HOURS. A COMPLETE RESPONSE SHALL BE GIVEN BY SUCH MOBILE SPORTS WAGERING OPERATOR TO SUCH BETTOR FILING THE COMPLAINT WITHIN TEN BUSINESS DAYS. AN AUTHORIZED SPORTS BETTOR MAY FILE A COMPLAINT ALLEGING A VIOLATION OF THE PROVISIONS OF THIS ARTICLE WITH THE COMMISSION. 6. (A) EACH CASINO AND MOBILE SPORTS WAGERING OPERATOR THAT OFFERS SPORTS WAGERING SHALL ANNUALLY SUBMIT A REPORT TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY OF EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION: (I) THE TOTAL AMOUNT OF SPORTS WAGERS RECEIVED FROM AUTHORIZED SPORTS BETTORS; (II) THE TOTAL AMOUNT OF PRIZES AWARDED TO AUTHORIZED SPORTS BETTORS; (III) THE TOTAL AMOUNT OF SPORTS WAGERING GROSS REVENUE RECEIVED BY THE CASINO OR MOBILE SPORTS WAGERING OPERATOR; (IV) THE TOTAL AMOUNT OF WAGERS RECEIVED ON EACH SPORTS GOVERNING BODY'S SPORTING EVENTS; S. 2509--C 69 A. 3009--C (V) THE NUMBER OF ACCOUNTS HELD BY AUTHORIZED SPORTS BETTORS; (VI) THE TOTAL NUMBER OF NEW ACCOUNTS ESTABLISHED IN THE PRECEDING YEAR, AS WELL AS THE TOTAL NUMBER OF ACCOUNTS PERMANENTLY CLOSED IN THE PRECEDING YEAR; (VII) THE TOTAL NUMBER OF AUTHORIZED SPORTS BETTORS THAT REQUESTED TO EXCLUDE THEMSELVES IN A PRIOR YEAR WHO PARTICIPATED IN SPORTS WAGERING; AND (VIII) ANY ADDITIONAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ARTICLE. (B) THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE- GATE INFORMATION PROVIDED BY ALL CASINOS AND MOBILE SPORTS WAGERING OPERATORS PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, WHICH SHALL BE PUBLISHED ON THE COMMISSION'S WEBSITE NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DEADLINE FOR THE SUBMISSION OF INDIVIDUAL REPORTS AS SPECIFIED IN SUCH PARAGRAPH (A). 7. FOR THE PRIVILEGE OF CONDUCTING SPORTS WAGERING IN THE STATE, CASI- NOS SHALL PAY A TAX EQUIVALENT TO TEN PERCENT OF THEIR SPORTS WAGERING GROSS GAMING REVENUE, EXCLUDING SPORTS WAGERING GROSS GAMING REVENUE ATTRIBUTED TO MOBILE SPORTS WAGERING OFFERED PURSUANT TO SECTION THIR- TEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE. PLATFORM PROVIDERS SHALL PAY A TAX CONSTITUTING A CERTAIN PERCENTAGE OF THE SPORTS WAGERING GROSS GAMING REVENUE ATTRIBUTED TO MOBILE SPORTS WAGERING OFFERED THROUGH SUCH PLATFORM PROVIDER'S PLATFORM PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE; PROVIDED HOWEVER, THAT SUCH PERCENTAGE SHALL BE DETERMINED PURSUANT TO A COMPETITIVE BIDDING PROCESS CONDUCTED BY THE COMMISSION AS OUTLINED IN SUBDIVISION SEVEN OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE; AND PROVIDED FURTHER, THAT SUCH PERCENTAGE SHALL BE NO LOWER THAN TWELVE PERCENT. WHEN AWARDING A LICENSE PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE, THE COMMISSION MAY SET GRADUATED TAX RATES; PROVIDED HOWEVER, THAT ANY SUCH TAX RATES MAY NOT BE LOWER THAN THE MINIMUM RATE ESTAB- LISHED IN THIS SUBDIVISION. 8. NOTWITHSTANDING SECTION THIRTEEN HUNDRED FIFTY-ONE OF THIS ARTICLE, MOBILE SPORTS WAGERING GROSS GAMING REVENUE AND TAX REVENUE SHALL BE EXCLUDED FROM SPORTS WAGERING GROSS GAMING REVENUE AND TAX REVENUE. MOBILE SPORTS WAGERING TAX REVENUE SHALL BE SEPARATELY MAINTAINED AND RETURNED TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCA- TION AID EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION. ANY INTEREST AND PENALTIES IMPOSED BY THE COMMISSION RELATING TO THOSE TAXES, ALL PENALTIES LEVIED AND COLLECTED BY THE COMMISSION, AND THE APPROPRIATE FUNDS, CASH OR PRIZES FORFEITED FROM SPORTS WAGERING SHALL BE DEPOSITED INTO THE STATE LOTTERY FUND FOR EDUCATION. IN THE FIRST FISCAL YEAR IN WHICH MOBILE SPORTS WAGERING LICENSEES COMMENCE OPERATIONS AND ACCEPT MOBILE SPORTS WAGERS PURSUANT TO THIS SECTION, THE COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING FUND ONE PERCENT OF THE STATE TAX IMPOSED ON MOBILE SPORTS WAGERING BY THIS SECTION TO BE DISTRIBUTED FOR PROBLEM GAMBLING EDUCATION AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF SUBDIVISION FOUR OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW; PROVIDED HOWEVER, THAT SUCH AMOUNT SHALL BE EQUAL TO SIX MILLION DOLLARS FOR EACH FISCAL YEAR THEREAFTER. IN THE FIRST FISCAL YEAR IN WHICH MOBILE SPORTS WAGERING LICENSEES COMMENCE OPERATIONS AND ACCEPT MOBILE SPORTS WAGERS PURSUANT TO THIS SECTION, THE COMMISSION SHALL PAY ONE PERCENT OF THE STATE TAX IMPOSED ON MOBILE SPORTS WAGERING BY THIS SECTION TO THE GENERAL FUND, A PROGRAM TO BE ADMINISTERED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES FOR A STATEWIDE YOUTH SPORTS ACTIVITIES AND EDUCATION GRANT PROGRAM FOR THE PURPOSE OF PROVIDING ANNUAL AWARDS S. 2509--C 70 A. 3009--C TO SPORTS PROGRAMS FOR UNDERSERVED YOUTH UNDER THE AGE OF EIGHTEEN YEARS; PROVIDED HOWEVER, THAT SUCH AMOUNT SHALL BE EQUAL TO FIVE MILLION DOLLARS FOR EACH FISCAL YEAR THEREAFTER. THE COMMISSION SHALL REQUIRE AT LEAST MONTHLY DEPOSITS BY A PLATFORM PROVIDER OF ANY PAYMENTS PURSU- ANT TO SUBDIVISION SEVEN OF THIS SECTION, AT SUCH TIMES, UNDER SUCH CONDITIONS, AND IN SUCH DEPOSITORIES AS SHALL BE PRESCRIBED BY THE STATE COMPTROLLER. THE DEPOSITS SHALL BE DEPOSITED TO THE CREDIT OF THE STATE COMMERCIAL GAMING REVENUE FUND. THE COMMISSION SHALL REQUIRE A MONTHLY REPORT AND RECONCILIATION STATEMENT TO BE FILED WITH IT ON OR BEFORE THE TENTH DAY OF EACH MONTH, WITH RESPECT TO GROSS REVENUES AND DEPOSITS RECEIVED AND MADE, RESPECTIVELY, DURING THE PRECEDING MONTH. 9. THE COMMISSION MAY PERFORM AUDITS OF THE BOOKS AND RECORDS OF A CASINO OR MOBILE SPORTS WAGERING LICENSEE PURSUANT TO SECTION ONE HUNDRED FOUR OF THIS CHAPTER. 10. NOTHING IN THIS SECTION SHALL APPLY TO INTERACTIVE FANTASY SPORTS OFFERED PURSUANT TO ARTICLE FOURTEEN OF THIS CHAPTER. NOTHING IN THIS SECTION AUTHORIZES ANY ENTITY THAT CONDUCTS INTERACTIVE FANTASY SPORTS OFFERED PURSUANT TO ARTICLE FOURTEEN OF THIS CHAPTER TO CONDUCT SPORTS WAGERING UNLESS IT SEPARATELY QUALIFIES FOR, AND OBTAINS, AUTHORIZATION PURSUANT TO THIS SECTION. 11. A SPORTS GOVERNING BODY MAY NOTIFY THE COMMISSION THAT IT DESIRES TO RESTRICT, LIMIT, OR EXCLUDE WAGERING ON ITS SPORTING EVENTS BY PROVIDING NOTICE IN THE FORM AND MANNER AS THE COMMISSION MAY REQUIRE. UPON RECEIVING SUCH NOTICE, THE COMMISSION SHALL REVIEW THE REQUEST IN GOOD FAITH, SEEK INPUT FROM THE CASINOS OR MOBILE SPORTS WAGERING LICEN- SEES ON SUCH A REQUEST, AND IF THE COMMISSION DEEMS IT APPROPRIATE, PROMULGATE REGULATIONS TO RESTRICT SUCH SPORTS WAGERING. 12. (A) WHEN POTENTIAL CRIMINAL ACTIVITY IS SUSPECTED BY THE COMMIS- SION, THE COMMISSION SHALL DESIGNATE THE DIVISION OF THE STATE POLICE TO HAVE PRIMARY RESPONSIBILITY FOR ASSISTING THE COMMISSION IN CONDUCTING INVESTIGATIONS INTO UNUSUAL WAGERING ACTIVITY, MATCH FIXING, AND OTHER CONDUCT THAT CORRUPTS A WAGERING OUTCOME OF A SPORTING EVENT OR EVENTS. (B) CASINOS AND MOBILE SPORTS WAGERING LICENSEES SHALL MAINTAIN RECORDS OF SPORTS WAGERING OPERATIONS IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION. THESE REGULATIONS SHALL, AT A MINIMUM, REQUIRE A CASINO OR MOBILE SPORTS WAGERING OPERATOR TO ADOPT PROCEDURES TO OBTAIN PERSONALLY IDENTIFIABLE INFORMATION FROM ANY INDIVIDUAL WHO PLACES ANY SINGLE WAGER IN AN AMOUNT OF TEN THOUSAND DOLLARS OR GREATER OR MAKING A POTENTIAL PAYOUT OR ACTUAL PAYOUT OF TEN THOUSAND DOLLARS OR GREATER ON A WINNING WAGER. (C) CASINOS, MOBILE SPORTS WAGERING LICENSEES AND SPORTS GOVERNING BODIES SHALL COOPERATE WITH THE COMMISSION TO ENSURE THE TIMELY, EFFI- CIENT, AND ACCURATE SHARING OF INFORMATION. (D) CASINOS, MOBILE SPORTS WAGERING LICENSEES AND SPORTS GOVERNING BODIES SHALL COOPERATE WITH INVESTIGATIONS CONDUCTED BY THE COMMISSION OR LAW ENFORCEMENT AGENCIES, INCLUDING BUT NOT LIMITED TO PROVIDING OR FACILITATING THE PROVISION OF ACCOUNT-LEVEL WAGERING INFORMATION AND AUDIO OR VIDEO FILES RELATING TO PERSONS PLACING WAGERS; PROVIDED, HOWEVER, THAT THE CASINO AND MOBILE SPORTS WAGERING OPERATOR SHALL NOT BE REQUIRED TO SHARE ANY PERSONALLY IDENTIFIABLE INFORMATION OF AN AUTHORIZED SPORTS BETTOR WITH ANY SPORTS GOVERNING BODY UNLESS ORDERED TO DO SO BY THE COMMISSION, A LAW ENFORCEMENT AGENCY OR COURT OF COMPE- TENT JURISDICTION. (E) (I) CASINOS AND MOBILE SPORTS WAGERING LICENSEES SHALL PROMPTLY REPORT TO THE COMMISSION AND ANY THIRD PARTY INTEGRITY MONITORING PROVIDER APPROVED BY THE COMMISSION, AS APPLICABLE AND IN ACCORDANCE S. 2509--C 71 A. 3009--C WITH RULES AND REGULATIONS ESTABLISHED BY THE COMMISSION, ANY INFORMA- TION RELATING TO: (1) CRIMINAL OR DISCIPLINARY PROCEEDINGS COMMENCED AGAINST THE CASINO OR MOBILE SPORTS WAGERING LICENSEE IN CONNECTION WITH ITS OPERATIONS; (2) UNUSUAL WAGERING ACTIVITY OR PATTERNS THAT MAY INDICATE A CONCERN WITH THE INTEGRITY OF A SPORTING EVENT OR EVENTS; (3) ANY POTENTIAL BREACH OF THE RELEVANT SPORTS GOVERNING BODY'S INTERNAL RULES AND CODES OF CONDUCT PERTAINING TO SPORTS WAGERING, AS THEY HAVE BEEN PROVIDED BY THE SPORTS GOVERNING BODY TO THE CASINO OR THE MOBILE SPORTS WAGERING OPERATOR; (4) ANY OTHER CONDUCT THAT CORRUPTS A WAGERING OUTCOME OF A SPORTING EVENT OR EVENTS, INCLUDING MATCH FIXING; AND (5) SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING USE OF FUNDS DERIVED FROM ILLEGAL ACTIVITY, WAGERS TO CONCEAL OR LAUNDER FUNDS DERIVED FROM ILLEGAL ACTIVITY, USING AGENTS TO PLACE WAGERS, USING CONFIDENTIAL NON-PUBLIC INFORMATION, AND USING FALSE IDENTIFICATION. (II) THE COMMISSION MAY SHARE INFORMATION RELATING TO CONDUCT DESCRIBED IN CLAUSES TWO, THREE AND FOUR OF SUBPARAGRAPH (I) OF THIS PARAGRAPH WITH THE RELEVANT SPORTS GOVERNING BODY. (III) THE COMMISSION SHALL BE AUTHORIZED TO SHARE ANY INFORMATION UNDER THIS SECTION WITH ANY LAW ENFORCEMENT ENTITY, TEAM, SPORTS GOVERN- ING BODY, OR REGULATORY AGENCY THE COMMISSION DEEMS APPROPRIATE. SUCH SHARING OF INFORMATION MAY INCLUDE, BUT IS NOT LIMITED TO, ACCOUNT LEVEL WAGERING INFORMATION AND ANY AUDIO OR VIDEO FILES RELATED TO THE INVES- TIGATION. (IV) A CASINO OR MOBILE SPORTS WAGERING LICENSEE MAY BE REQUIRED TO SHARE ANY PERSONALLY IDENTIFIABLE INFORMATION OF AN AUTHORIZED SPORTS BETTOR WITH A SPORTS GOVERNING BODY ONLY PURSUANT TO AN ORDER TO DO SO BY THE COMMISSION, A LAW ENFORCEMENT AGENCY OR A COURT OF COMPETENT JURISDICTION. (F) THE CONFIDENTIALITY OF INFORMATION SHARED BETWEEN A SPORTS GOVERN- ING BODY AND A CASINO OR A MOBILE SPORTS WAGERING OPERATOR SHALL BE MAINTAINED PURSUANT TO ALL APPLICABLE DATA PRIVACY LAWS, UNLESS DISCLO- SURE IS REQUIRED BY THIS SECTION, THE COMMISSION, OTHER LAW, OR COURT ORDER. FURTHERMORE, THE INFORMATION SHARED BETWEEN A SPORTS GOVERNING BODY, A CASINO, A MOBILE SPORTS WAGERING OPERATOR OR ANY OTHER PARTY PURSUANT TO THIS ACT MAY NOT BE USED FOR BUSINESS OR MARKETING PURPOSES BY THE RECIPIENT WITHOUT THE EXPRESS WRITTEN APPROVAL OF THE PARTY THAT PROVIDES SUCH INFORMATION. (G) THE COMMISSION, BY REGULATION, MAY AUTHORIZE AND PROMULGATE ANY RULES NECESSARY TO IMPLEMENT AGREEMENTS WITH OTHER STATES, OR AUTHORIZED AGENCIES THEREOF TO ENABLE THE SHARING OF INFORMATION TO FACILITATE INTEGRITY MONITORING AND THE CONDUCT OF INVESTIGATIONS INTO ABNORMAL WAGERING ACTIVITY, MATCH FIXING, AND OTHER CONDUCT THAT CORRUPTS A WAGERING OUTCOME OF A SPORTING EVENT OR EVENTS. (H) IN THE EVENT OF THE CREATION OF AN ENTITY THAT MAINTAINS AN INTER- STATE DATABASE OF SPORTS WAGERING INFORMATION FOR THE PURPOSE OF INTEG- RITY MONITORING, THE COMMISSION MAY SHARE INFORMATION AND COOPERATE WITH SUCH ENTITY PURSUANT TO REGULATIONS PROMULGATED BY THE COMMISSION. (I) CASINOS AND MOBILE SPORTS WAGERING LICENSEES SHALL ADOPT PROCE- DURES TO PREVENT PERSONS FROM WAGERING ON SPORTS EVENTS WHO ARE PROHIB- ITED FROM PLACING SPORTS WAGERS. A CASINO OR MOBILE SPORTS WAGERING LICENSEE SHALL NOT ACCEPT WAGERS FROM ANY PERSON: (I) WHOSE NAME APPEARS ON THE EXCLUSION LIST MAINTAINED BY THE COMMIS- SION AND PROVIDED TO THE CASINO OR MOBILE SPORTS WAGERING LICENSEE; S. 2509--C 72 A. 3009--C (II) WHOSE NAME APPEARS ON ANY SELF-EXCLUSION LIST MAINTAINED BY THE COMMISSION AND PROVIDED TO THE CASINO OR MOBILE SPORTS WAGERING LICEN- SEE; (III) WHO IS THE OPERATOR, DIRECTOR, OFFICER, OWNER, OR EMPLOYEE OF THE CASINO OR MOBILE SPORTS WAGERING LICENSEE OR ANY SPOUSE, CHILD, SIBLING OR PARENT LIVING IN THE SAME PRINCIPAL PLACE OF ABODE AS SUCH INDIVIDUAL; (IV) WHO HAS BEEN IDENTIFIED AS A PROHIBITED SPORTS BETTOR IN A LIST PROVIDED BY THE SPORTS GOVERNING BODY TO THE COMMISSION AND CASINO OR MOBILE SPORTS WAGERING OPERATOR, THAT IDENTIFIES THE INDIVIDUAL BY SUCH PERSONALLY IDENTIFIABLE INFORMATION AS SPECIFIED BY RULES AND REGU- LATIONS PROMULGATED BY THE COMMISSION; OR (V) WHO IS AN AGENT OR PROXY FOR A PROHIBITED SPORTS BETTOR. (J) THE COMMISSION SHALL ESTABLISH A METHOD OF COMMUNICATION, WHICH MAY INCLUDE, BUT IS NOT LIMITED TO A WEBSITE FORM, THAT ALLOWS ANY PERSON TO CONFIDENTIALLY REPORT INFORMATION ABOUT CONDUCT POTENTIALLY WARRANTING FURTHER INVESTIGATION TO THE COMMISSION. THE IDENTITY OF ANY PERSON REPORTING CONDUCT POTENTIALLY WARRANTING FURTHER INVESTIGATION TO THE COMMISSION SHALL REMAIN CONFIDENTIAL UNLESS THAT PERSON AUTHORIZES DISCLOSURE OF HIS OR HER IDENTITY OR UNTIL SUCH TIME AS THE ALLEGATION OF CONDUCT POTENTIALLY WARRANTING FURTHER INVESTIGATION IS REFERRED TO LAW ENFORCEMENT. THE COMMISSION SHALL PROMULGATE RULES GOVERNING THE INVESTIGATION AND RESOLUTION OF A CHARGE OF ANY PERSON PURPORTED TO HAVE ENGAGED IN CONDUCT POTENTIALLY WARRANTING FURTHER INVESTIGATION. 13. THE COMMISSION SHALL PROMULGATE RULES THAT REQUIRE A CASINO OR MOBILE SPORTS WAGERING LICENSEES TO IMPLEMENT RESPONSIBLE GAMING PROGRAMS THAT INCLUDE COMPREHENSIVE EMPLOYEE TRAININGS ON RESPONDING TO CIRCUMSTANCES IN WHICH INDIVIDUALS PRESENT SIGNS OF A GAMBLING ADDICTION AND REQUIREMENTS FOR CASINOS AND MOBILE SPORTS WAGERING LICENSEES UNDER SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE TO ASSESS, PREVENT, AND ADDRESS PROBLEM GAMING BY SUCH CASINO'S OR MOBILE SPORTS WAGERING LICENSEE'S USERS. 14. FOR PURPOSES OF WAGER DETERMINATION, THE COMMISSION SHALL PROVIDE A PREFERENCE FOR THE USE OF OFFICIAL LEAGUE DATA UNLESS THE USE OF OTHER OBJECTIVE WAGER DETERMINATION CRITERIA HAS BEEN JUSTIFIED TO THE SATIS- FACTION OF THE COMMISSION. 15. THE CONDUCT OF SPORTS WAGERING IN VIOLATION OF THIS SECTION IS PROHIBITED. 16. (A) IN ADDITION TO ANY CRIMINAL PENALTIES PROVIDED FOR UNDER ARTI- CLE TWO HUNDRED TWENTY-FIVE OF THE PENAL LAW, ANY PERSON, FIRM, CORPO- RATION, ASSOCIATION, AGENT, OR EMPLOYEE, WHO IS NOT AUTHORIZED TO OFFER SPORTS WAGERING UNDER THIS SECTION OR SECTION THIRTEEN HUNDRED SIXTY- SEVEN-A OF THIS TITLE, AND WHO KNOWINGLY OFFERS OR ATTEMPTS TO OFFER SPORTS WAGERING OR MOBILE SPORTS WAGERING IN NEW YORK SHALL BE LIABLE FOR A CIVIL PENALTY OF NOT MORE THAN ONE HUNDRED THOUSAND DOLLARS FOR EACH VIOLATION, NOT TO EXCEED FIVE MILLION DOLLARS FOR VIOLATIONS ARIS- ING OUT OF THE SAME TRANSACTION OR OCCURRENCE, WHICH SHALL ACCRUE TO THE STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE ATTORNEY GENERAL. (B) ANY PERSON, FIRM, CORPORATION, ASSOCIATION, AGENT, OR EMPLOYEE WHO KNOWINGLY VIOLATES ANY PROCEDURE IMPLEMENTED UNDER THIS SECTION, OR SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE, SHALL BE LIABLE FOR A CIVIL PENALTY AS DESCRIBED IN SECTION ONE HUNDRED SIXTEEN OF THIS CHAPTER WHICH SHALL ACCRUE TO THE STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION. S. 2509--C 73 A. 3009--C § 4. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 1367-a to read as follows: § 1367-A. MOBILE SPORTS WAGERING. 1. (A) EXCEPT AS PROVIDED IN THIS SUBDIVISION, THE TERMS IN THIS SECTION SHALL HAVE THE SAME MEANINGS AS SUCH TERMS ARE DEFINED IN SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE. (B) "MOBILE SPORTS WAGERING OPERATOR" FOR PURPOSES OF THIS SECTION, MEANS A MOBILE SPORTS WAGERING OPERATOR AS DEFINED BY SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE. 2. (A) NO ENTITY SHALL ADMINISTER, MANAGE, OR OTHERWISE MAKE AVAILABLE A MOBILE SPORTS WAGERING PLATFORM TO PERSONS LOCATED IN NEW YORK STATE UNLESS LICENSED WITH THE COMMISSION PURSUANT TO THIS SECTION. (B) LICENSES ISSUED BY THE COMMISSION SHALL REMAIN IN EFFECT FOR UP TO TEN YEARS. THE COMMISSION SHALL ESTABLISH A PROCESS FOR RENEWAL. (C) THE COMMISSION SHALL PUBLISH A LIST OF ALL CASINOS AND MOBILE SPORTS WAGERING LICENSEES LICENSED TO OFFER MOBILE SPORTS WAGERING IN NEW YORK STATE PURSUANT TO THIS SECTION ON THE COMMISSION'S WEBSITE FOR PUBLIC USE. (D) ALL SPORTS WAGERS THROUGH ELECTRONIC COMMUNICATION PLACED IN ACCORDANCE WITH THIS SECTION ARE CONSIDERED PLACED OR OTHERWISE MADE WHEN AND WHERE RECEIVED BY THE MOBILE SPORTS WAGERING LICENSEE ON SUCH MOBILE SPORTS WAGERING LICENSEE'S SERVER OR OTHER EQUIPMENT USED TO ACCEPT MOBILE SPORTS WAGERING AT A LICENSED GAMING FACILITY, REGARD- LESS OF THE AUTHORIZED SPORTS BETTOR'S PHYSICAL LOCATION WITHIN THE STATE AT THE TIME THE SPORTS WAGER IS PLACED; AND PROVIDED FURTHER THAT THE INTERMEDIATE ROUTING OF ELECTRONIC DATA IN CONNECTION WITH MOBILE SPORTS WAGERING SHALL NOT DETERMINE THE LOCATION OR LOCATIONS IN WHICH A WAGER IS INITIATED, RECEIVED OR OTHERWISE MADE. 3. AS A CONDITION OF LICENSURE THE COMMISSION SHALL REQUIRE THAT EACH PLATFORM PROVIDER AUTHORIZED TO CONDUCT MOBILE SPORTS WAGERING PAY A ONE-TIME FEE OF TWENTY-FIVE MILLION DOLLARS. SUCH FEE SHALL BE PAID WITHIN THIRTY DAYS OF GAMING COMMISSION APPROVAL PRIOR TO LICENSE ISSU- ANCE AND DEPOSITED INTO THE STATE LOTTERY FUND FOR EDUCATION AID. 4. (A) AS A CONDITION OF LICENSURE, EACH MOBILE SPORTS WAGERING OPERA- TOR SHALL IMPLEMENT THE FOLLOWING MEASURES: (I) LIMIT EACH AUTHORIZED SPORTS BETTOR TO ONE ACTIVE ACCOUNT ON THEIR PLATFORM, AND PREVENT ANYONE THEY KNOW, OR SHOULD HAVE KNOWN TO BE A PROHIBITED SPORTS BETTOR FROM MAINTAINING ACCOUNTS OR PARTICIPATING IN ANY SPORTS WAGERING OFFERED BY SUCH MOBILE SPORTS WAGERING OPERATOR; (II) ADOPT APPROPRIATE SAFEGUARDS TO ENSURE, TO A REASONABLE DEGREE OF CERTAINTY, AS DEFINED BY RULES AND REGULATIONS PROMULGATED BY THE COMMISSION, THAT AUTHORIZED SPORTS BETTORS ARE PHYSICALLY LOCATED WITHIN THE STATE WHEN ENGAGING IN MOBILE SPORTS WAGERING; (III) PROHIBIT MINORS FROM PARTICIPATING IN ANY SPORTS WAGERING PURSU- ANT TO RULES AND REGULATIONS PROMULGATED BY THE COMMISSION; (IV) WHEN REFERENCING THE CHANCES OR LIKELIHOOD OF WINNING IN ADVER- TISEMENTS OR UPON PLACEMENT OF A SPORTS WAGER, MAKE CLEAR AND CONSPICU- OUS STATEMENTS THAT ARE NOT INACCURATE OR MISLEADING CONCERNING THE CHANCES OF WINNING AND THE NUMBER OF WINNERS; (V) PERMIT ANY AUTHORIZED SPORTS BETTOR TO PERMANENTLY CLOSE AN ACCOUNT REGISTERED TO SUCH BETTOR, ON ANY AND ALL PLATFORMS SUPPORTED BY SUCH MOBILE SPORTS WAGERING OPERATOR, AT ANY TIME AND FOR ANY REASON; (VI) OFFER INTRODUCTORY PROCEDURES FOR AUTHORIZED SPORTS BETTORS, THAT SHALL BE PROMINENTLY DISPLAYED ON THE MAIN PAGE OF SUCH MOBILE SPORTS WAGERING OPERATOR PLATFORM, THAT EXPLAIN SPORTS WAGERING; S. 2509--C 74 A. 3009--C (VII) IMPLEMENT MEASURES TO PROTECT THE PRIVACY AND ONLINE SECURITY OF AUTHORIZED SPORTS BETTORS AND THEIR ACCOUNTS; (VIII) OFFER ALL AUTHORIZED SPORTS BETTORS ACCESS TO HIS OR HER ACCOUNT HISTORY AND ACCOUNT DETAILS; (IX) ENSURE AUTHORIZED SPORTS BETTORS' FUNDS ARE PROTECTED UPON DEPOS- IT AND SEGREGATED FROM THE OPERATING FUNDS OF SUCH MOBILE SPORTS WAGER- ING OPERATOR AND OTHERWISE PROTECTED FROM CORPORATE INSOLVENCY, FINAN- CIAL RISK, OR CRIMINAL OR CIVIL ACTIONS AGAINST SUCH MOBILE SPORTS WAGERING OPERATOR; (X) LIST ON EACH WEBSITE, IN A PROMINENT PLACE, INFORMATION CONCERNING ASSISTANCE FOR COMPULSIVE PLAY IN NEW YORK STATE, INCLUDING A TOLL-FREE NUMBER DIRECTING CALLERS TO REPUTABLE RESOURCES CONTAINING FURTHER INFORMATION, WHICH SHALL BE FREE OF CHARGE; (XI) ENSURE NO SPORTS WAGERING SHALL BE BASED ON A PROHIBITED SPORTS EVENT; (XII) PERMIT ACCOUNT HOLDERS TO ESTABLISH SELF-EXCLUSION GAMING LIMITS ON A DAILY, WEEKLY, AND MONTHLY BASIS THAT ENABLE THE ACCOUNT HOLDER TO IDENTIFY THE MAXIMUM AMOUNT OF MONEY AN ACCOUNT HOLDER MAY DEPOSIT DURING SUCH PERIOD OF TIME; (XIII) WHEN AN ACCOUNT HOLDER'S LIFETIME DEPOSITS EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS, THE MOBILE SPORTS WAGERING OPERATOR SHALL PREVENT ANY WAGERING UNTIL THE PATRON IMMEDIATELY ACKNOWLEDGES THAT THE ACCOUNT HOLDER HAS MET THE DEPOSIT THRESHOLD AND MAY ELECT TO ESTABLISH RESPON- SIBLE GAMING LIMITS OR CLOSE THE ACCOUNT, AND THE ACCOUNT HOLDER HAS RECEIVED DISCLOSURES FROM THE MOBILE SPORTS WAGERING OPERATOR CONCERNING PROBLEM GAMBLING RESOURCES. ONCE A PATRON HAS REACHED THEIR LIFETIME DEPOSIT, SUCH PATRON SHALL ANNUALLY MAKE THE ACKNOWLEDGEMENT REQUIRED BY THIS PARAGRAPH; (XIV) MAINTAIN A PUBLICLY ACCESSIBLE INTERNET PAGE DEDICATED TO RESPONSIBLE PLAY, A LINK TO WHICH MUST APPEAR ON THE MOBILE SPORTS WAGERING OPERATOR'S WEBSITE AND IN ANY MOBILE APPLICATION OR ELECTRONIC PLATFORM ON WHICH A BETTOR MAY PLACE WAGERS. THE RESPONSIBLE PLAY PAGE SHALL INCLUDE: A STATEMENT OF THE MOBILE SPORTS WAGERING OPERATOR'S POLICY AND COMMITMENT TO RESPONSIBLE GAMING; INFORMATION REGARDING, OR LINKS TO INFORMATION REGARDING, THE RISKS ASSOCIATED WITH GAMBLING AND THE POTENTIAL SIGNS OF PROBLEM GAMING; THE AVAILABILITY OF SELF-IMPOSED RESPONSIBLE GAMING LIMITS; A LINK TO A PROBLEM GAMING WEBPAGE MAIN- TAINED BY THE OFFICE OF ADDICTION SERVICES AND SUPPORTS; AND SUCH OTHER INFORMATION OR STATEMENTS AS THE COMMISSION MAY REQUIRE BY RULE; AND (XV) SUBMIT ANNUALLY A PROBLEM GAMING PLAN THAT WAS APPROVED BY THE COMMISSION IN CONSULTATION WITH THE OFFICE OF ADDICTION SERVICES AND SUPPORTS THAT INCLUDES: THE OBJECTIVES OF AND TIMETABLES FOR IMPLEMENT- ING THE PLAN; IDENTIFICATION OF THE PERSONS RESPONSIBLE FOR IMPLEMENTING AND MAINTAINING THE PLAN; PROCEDURES FOR IDENTIFYING USERS WITH SUSPECTED OR KNOWN PROBLEM GAMING BEHAVIOR; PROCEDURES FOR PROVIDING INFORMATION TO USERS CONCERNING PROBLEM GAMING IDENTIFICATION AND RESOURCES; PROCEDURES TO PREVENT GAMING BY MINORS AND SELF-EXCLUDED PERSONS; AND SUCH OTHER PROBLEM GAMING INFORMATION AS THE COMMISSION MAY REQUIRE BY RULE. (B) NO ENTITY SHALL DIRECTLY OR INDIRECTLY OPERATE AN UNLICENSED SPORTS WAGERING PLATFORM IN THE STATE OF NEW YORK, OR ADVERTISE OR PROMOTE SUCH UNLICENSED PLATFORM TO PERSONS LOCATED IN THE STATE OF NEW YORK. (C) MOBILE SPORTS WAGERING LICENSEES SHALL NOT OFFER ANY SPORTS WAGER- ING BASED ON ANY PROHIBITED SPORTS EVENT. S. 2509--C 75 A. 3009--C (D) MOBILE SPORTS WAGERING LICENSEES SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR. (E) ADVERTISEMENTS FOR CONTESTS AND PRIZES OFFERED BY A MOBILE SPORTS WAGERING OPERATOR SHALL NOT TARGET PROHIBITED SPORTS BETTORS, MINORS, OR SELF-EXCLUDED PERSONS. (F) MOBILE SPORTS WAGERING OPERATORS SHALL DEVELOP AND PROMINENTLY DISPLAY PROCEDURES ON THE MAIN PAGE OF SUCH MOBILE SPORTS WAGERING OPER- ATOR'S PLATFORM FOR THE FILING OF A COMPLAINT BY AN AUTHORIZED SPORTS BETTOR AGAINST SUCH MOBILE SPORTS WAGERING OPERATOR. AN INITIAL RESPONSE SHALL BE GIVEN BY SUCH MOBILE SPORTS WAGERING OPERATOR TO SUCH BETTOR FILING THE COMPLAINT WITHIN FORTY-EIGHT HOURS. A COMPLETE RESPONSE SHALL BE GIVEN BY SUCH MOBILE SPORTS WAGERING OPERATOR TO SUCH BETTOR FILING THE COMPLAINT WITHIN TEN BUSINESS DAYS. AN AUTHORIZED SPORTS BETTOR MAY FILE A COMPLAINT ALLEGING A VIOLATION OF THE PROVISIONS OF THIS ARTICLE WITH THE COMMISSION. (G) MOBILE SPORTS WAGERING LICENSEES SHALL MAINTAIN RECORDS OF ALL ACCOUNTS BELONGING TO AUTHORIZED SPORTS BETTORS AND RETAIN SUCH RECORDS OF ALL TRANSACTIONS IN SUCH ACCOUNTS FOR THE PRECEDING FIVE YEARS; PROVIDED HOWEVER THAT SUCH RECORDS BELONGING TO AN AUTHORIZED SPORTS BETTOR SHALL BE READILY ACCESSIBLE AND DOWNLOADABLE, WITHOUT COST, BY SUCH AUTHORIZED SPORTS BETTOR. (H) THE SERVER OR OTHER EQUIPMENT WHICH IS USED BY A MOBILE SPORTS WAGERING LICENSEE TO ACCEPT MOBILE SPORTS WAGERING SHALL BE PHYSICALLY LOCATED IN THE LICENSED GAMING FACILITY AND BE LIMITED TO SPORTS WAGER- ING RELATED ACTIVITIES IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION. (I) ALL MOBILE SPORTS WAGERING INITIATED IN THIS STATE SHALL BE DEEMED TO TAKE PLACE AT THE LICENSED GAMING FACILITY WHERE THE SERVER OR OTHER EQUIPMENT USED BY A MOBILE SPORTS WAGERING LICENSEE TO ACCEPT MOBILE SPORTS WAGERING IS LOCATED, REGARDLESS OF THE AUTHORIZED SPORTS BETTOR'S PHYSICAL LOCATION WITHIN THIS STATE. (J) ALL MOBILE SPORTS WAGERING SHALL BE CONDUCTED IN COMPLIANCE WITH THIS SECTION AND SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE. 5. (A) SUBJECT TO REGULATIONS PROMULGATED BY THE COMMISSION, A MOBILE SPORTS WAGERING OPERATOR MAY ALLOW FOR AUTHORIZED BETTORS TO SIGN UP TO CREATE AND FUND ACCOUNTS ON ITS MOBILE SPORTS WAGERING PLATFORM. (B) AUTHORIZED SPORTS BETTORS MAY DEPOSIT AND WITHDRAW FUNDS TO AND FROM THEIR ACCOUNT ON A MOBILE SPORTS WAGERING OPERATOR THROUGH ELEC- TRONICALLY RECOGNIZED PAYMENT METHODS, INCLUDING BUT NOT LIMITED TO CREDIT CARDS AND DEBIT CARDS, OR VIA ANY OTHER MEANS APPROVED BY THE COMMISSION; PROVIDED HOWEVER, THAT IN THE CASE OF CREDIT CARD PAYMENTS, EACH AUTHORIZED SPORTS BETTOR'S ACCOUNT PER OPERATOR SHALL BE LIMITED TO A CREDIT CARD SPENDING AMOUNT OF TWO THOUSAND FIVE HUNDRED DOLLARS PER YEAR; AND PROVIDED FURTHER, THAT THIS LIMITATION SHALL NOT APPLY TO OTHER PAYMENT METHODS OR TO DEBIT CARDS. NO OPERATOR SHALL BE AUTHOR- IZED TO PROVIDE A LINE OF CREDIT TO ANY AUTHORIZED SPORTS BETTOR. 6. THE COMMISSION, IN CONJUNCTION WITH THE OFFICE OF ADDICTION SERVICES AND SUPPORTS, SHALL ANNUALLY CAUSE A REPORT TO BE PREPARED AND DISTRIBUTED TO THE GOVERNOR AND THE LEGISLATURE ON THE IMPACT OF MOBILE SPORTS WAGERING ON PROBLEM GAMBLERS IN NEW YORK, INCLUDING, TO THE EXTENT PRACTICABLE, AN ANALYSIS OF DEMOGRAPHICS WHICH ARE DISPROPORTION- ATELY IMPACTED BY THE PROBLEM GAMBLING. THE COSTS ASSOCIATED WITH THE PREPARATION AND DISTRIBUTION OF THE REPORT SHALL BE BORNE BY MOBILE SPORTS WAGERING LICENSEES AND THE COMMISSION SHALL BE AUTHORIZED TO ASSESS A FEE AGAINST MOBILE SPORTS WAGERING LICENSEES FOR THESE S. 2509--C 76 A. 3009--C PURPOSES. THE COMMISSION, OR IN THE CASE THAT AN INDEPENDENT INTEGRITY MONITOR HAS BEEN ESTABLISHED, SUCH INDEPENDENT INTEGRITY MONITOR SHALL ALSO REPORT BIANNUALLY TO THE GOVERNOR AND THE LEGISLATURE ON THE EFFEC- TIVENESS OF THE STATUTORY AND REGULATORY CONTROLS IN PLACE TO ENSURE THE INTEGRITY OF MOBILE SPORTS WAGERING OPERATIONS. 7. A PLATFORM PROVIDER MAY BE LICENSED BY THE COMMISSION ONLY AFTER HAVING BEEN SELECTED FOR POTENTIAL LICENSURE BY THE COMMISSION FOLLOWING A COMPETITIVE BIDDING PROCESS IN WHICH THE COMMISSION SHALL ISSUE A REQUEST FOR APPLICATIONS NO LATER THAN JULY FIRST, TWO THOUSAND TWENTY- ONE; PROVIDED HOWEVER, THAT THE DEADLINE FOR SUBMISSION OF APPLICATIONS SHALL BE NO LATER THAN THIRTY DAYS AFTER THE DATE UPON WHICH THE COMMIS- SION ISSUES SUCH REQUEST FOR APPLICATIONS. (A) THE COMMISSION SHALL SELECT PLATFORM PROVIDERS BASED UPON THE CRITERIA SET FORTH IN THIS SECTION NO LATER THAN ONE HUNDRED FIFTY DAYS, TO THE EXTENT PRACTICABLE, AFTER THE FINAL APPLICATION IS RECEIVED. THE COMMISSION MAY DISQUALIFY APPLICANTS FROM LICENSURE CONSIDERATION IF THE APPLICANT OR THE MOBILE SPORTS WAGERING OPERATOR OR OPERATORS INCLUDED IN THEIR BID HAVE NOT SATISFIED PROVISION OF REQUIRED APPLICATION INFOR- MATION, FAIL TO MEET ANY PLATFORM PROVIDER AND MOBILE SPORTS WAGERING OPERATOR ELIGIBILITY CRITERIA ESTABLISHED PURSUANT TO THE REQUEST FOR APPLICATIONS, OR ARE DEEMED BY THE COMMISSION TO HAVE NOT SATISFIED THE CRITERIA PURSUANT TO SUBDIVISION FIVE OF THIS SECTION. (A-1) THE COMMISSION SHALL PUBLISH ON ITS WEBSITE THE CRITERIA THAT WILL BE USED TO SCORE APPLICATIONS BASED UPON THE CRITERIA SET FORTH IN PARAGRAPH (C) OF THIS SUBDIVISION; PROVIDED HOWEVER, THAT SUCH SCORING METHODOLOGY SHALL AWARD ADDITIONAL POINTS TO AN APPLICANT THAT HAS ENTERED INTO AN AGREEMENT THAT INCLUDES REVENUE SHARING RELATED TO SUCH MOBILE SPORTS WAGERING WITH COMPACTED NATIVE AMERICAN TRIBE(S) OR NATION(S). (B) THE COMMISSION SHALL DETERMINE THE FORM OF APPLICATION FOR BIDDERS, WHICH SHALL REQUIRE, AT A MINIMUM, THE FOLLOWING INFORMATION: (I) DIFFERENT SCENARIOS FOR THE NUMBER OF PLATFORM PROVIDERS AND NUMBER OF MOBILE SPORTS WAGERING OPERATORS LICENSED BY THE COMMISSION. FOR EACH SCENARIO, THIS SHALL INCLUDE ESTIMATES OF MOBILE SPORTS WAGER- ING GROSS GAMING REVENUE AND THE BASES FOR SUCH ESTIMATES, THE PERCENT- AGE OF GROSS REVENUE FROM MOBILE SPORTS WAGERING THE APPLICANT WILL PAY TO THE STATE FOR THE PRIVILEGE OF LICENSURE IF CHOSEN, AND THE PERCENT- AGE OF OVERALL MOBILE SPORTS WAGERING GROSS GAMING REVENUE ESTIMATED TO BE GENERATED; (II) THE NUMBER OF MOBILE SPORTS WAGERING OPERATORS THE APPLICANT WILL HOST ON ITS MOBILE SPORTS WAGERING PLATFORM, IF THE APPLICANT IS LICENSED AS A PLATFORM PROVIDER; (III) A DESCRIPTION OF HOW THE APPLICANT WILL USE TECHNOLOGY TO ENSURE ALL BETTORS ARE PHYSICALLY WITHIN APPROVED LOCATIONS WITHIN THE STATE, THAT ANY WAGER IS ACCEPTED THROUGH EQUIPMENT PHYSICALLY LOCATED AT A LICENSED GAMING FACILITY AND THAT NECESSARY SAFEGUARDS AGAINST ABUSES AND ADDICTIONS ARE IN PLACE; (IV) THE APPLICANT AND ANY ASSOCIATED OPERATORS SUCH APPLICANT PROPOSES IN ITS APPLICATION POSSESS THE QUALIFICATIONS, CAPABILITIES AND EXPERIENCE TO PROVIDE A MOBILE SPORTS WAGERING PLATFORM; (V) A LIST OF ALL JURISDICTIONS WHERE THE APPLICANT AND PARENT COMPA- NY, AND MOBILE SPORTS WAGERING OPERATOR OR OPERATORS AND PARENT COMPANY OR COMPANIES HAVE BEEN LICENSED OR OTHERWISE AUTHORIZED BY CONTRACT OR OTHERWISE TO CONDUCT SPORTS WAGERING OPERATIONS. THIS SHALL INCLUDE THE APPLICANT AND ITS MOBILE SPORTS WAGERING OPERATOR OR OPERATORS' EXPERI- ENCE IN SUCH OTHER MARKETS; S. 2509--C 77 A. 3009--C (VI) PLAYER ACQUISITION MODEL, ADVERTISING AND AFFILIATE PROGRAMS AND MARKETING BUDGET, INCLUDING DETAILS ON HOW THE APPLICANT AND ITS MOBILE SPORTS WAGERING OPERATOR OR OPERATORS WILL CONVERT CUSTOMERS FROM WAGER- ING THROUGH ILLEGAL CHANNELS TO WAGERING LEGALLY IN THE STATE; (VII) TIMEFRAME TO IMPLEMENT MOBILE SPORTS WAGERING FROM AWARD OF LICENSE; (VIII) THE APPLICANT AND MOBILE SPORTS WAGERING OPERATOR OR OPERATORS' CAPACITY TO BRING AUTHORIZED SPORTS BETTORS INTO THEIR MOBILE SPORTS WAGERING PLATFORM; AND (IX) INTEGRITY MONITORING AND REPORTING INCLUDING ANY CURRENT AFFIL- IATIONS RELATED TO INTEGRITY MONITORING. (C) IN DETERMINING WHETHER AN APPLICANT SHALL BE ELIGIBLE FOR A PLAT- FORM PROVIDER LICENSE, THE COMMISSION SHALL EVALUATE HOW EACH APPLICANT PROPOSES TO MAXIMIZE SUSTAINABLE, LONG-TERM REVENUE FOR THE STATE BY EVALUATING THE FOLLOWING FACTORS: (I) A MARKET ANALYSIS DETAILING THE BENEFITS OF THE APPLICANT'S BID AS IT RELATES TO MAXIMIZING REVENUE TO THE STATE; (II) ESTIMATES OF MOBILE SPORTS WAGERING GROSS GAMING REVENUE GENER- ATED BY THE APPLICANT UNDER DIFFERENT SCENARIOS; (III) THE PERCENTAGE OF MOBILE SPORTS WAGERING GROSS GAMING REVENUE TO BE PAID TO THE STATE UNDER DIFFERENT SCENARIOS; (IV) THE POTENTIAL MARKET SHARE OF THE MOBILE SPORTS WAGERING OPERATOR OR OPERATORS UNDER DIFFERENT SCENARIOS; (V) ADVERTISING AND PROMOTIONAL PLANS OF THE MOBILE SPORTS WAGERING OPERATOR OR OPERATORS; (VI) PAST EXPERIENCE AND EXPERTISE IN THE MARKET OF THE APPLICANT AND ANY MOBILE SPORTS WAGERING OPERATOR OR OPERATORS WHICH ARE PART OF SUCH APPLICANT'S APPLICATION; (VII) THE APPLICANT'S CAPACITY TO RAPIDLY AND EFFECTIVELY BRING AUTHORIZED SPORTS BETTORS INTO ITS PLATFORM; (VIII) A DEMONSTRATION OF HOW AND TO WHAT DEGREE THE APPLICANT FOSTERS RACIAL, ETHNIC, AND GENDER DIVERSITY IN ITS WORKFORCE; (IX) TIMEFRAME TO IMPLEMENT MOBILE SPORTS WAGERING FROM AWARD OF LICENSE; (X) ANY OTHER FACTORS THAT COULD IMPACT THE INTEGRITY, SUSTAINABILITY OR SAFETY OF THE MOBILE SPORTS WAGERING SYSTEM; AND (XI) ANY OTHER FACTORS THAT COULD IMPACT REVENUE TO THE STATE. (D) THE COMMISSION SHALL AWARD A LICENSE TO EACH OF THE TWO HIGHEST SCORING PLATFORM PROVIDERS THAT SUBMIT APPLICATIONS; PROVIDED HOWEVER, THAT SUCH AWARDS SHALL REQUIRE THAT BOTH WINNING PLATFORM PROVIDERS PAY THE SAME TAX RATE; AND PROVIDED FURTHER, THAT THE COMMISSION SHALL REQUIRE THAT NO LESS THAN FOUR MOBILE SPORTS WAGERING OPERATORS WILL BE OPERATING IN THE STATE. THE COMMISSION MAY AWARD ADDITIONAL LICENSES IF IT DETERMINES THAT SUCH ADDITIONAL AWARDS ARE IN THE BEST INTERESTS OF THE STATE; PROVIDED HOWEVER, THAT ANY ADDITIONAL PLATFORM PROVIDERS AWARDED LICENSES MUST ALSO AGREE TO PAY THE SAME TAX RATE AS THOSE PLAT- FORM PROVIDERS THAT WERE INITIALLY AWARDED LICENSES BY THE COMMISSION. THE AWARD OF ANY SUCH LICENSE SHALL REQUIRE EACH APPLICANT TO REMIT THE HIGHEST PERCENTAGE OF GROSS GAMING REVENUE FROM MOBILE SPORTS WAGERING CONTAINED IN AN APPLICANT'S BID SELECTED BY THE COMMISSION CONSIDERED FOR LICENSURE. A QUALIFIED APPLICANT SHALL BE AFFORDED THE ABILITY TO REVISE ITS BID IN ANY SUCH MANNER IN ORDER FOR SUCH BID TO MEET THE PERCENTAGE OF GROSS GAMING REVENUE FROM MOBILE SPORTS WAGERING AS REQUIRED BY THE COMMISSION FOR LICENSE AWARD, PROVIDED THAT THE BID DOES NOT INCORPORATE ANY ADDITIONAL OPERATORS NOT ALREADY INCLUDED IN THE BID; AND PROVIDED HOWEVER THAT IT IS NOT DETERMINED BY THE COMMISSION S. 2509--C 78 A. 3009--C THAT THE REVISED BID NO LONGER MEETS ALL REQUIREMENTS AND CRITERIA ESTABLISHED PURSUANT TO THIS SECTION AND THE REQUEST FOR APPLICATIONS. ANY APPLICANT THAT DOES NOT REVISE ITS BID TO MEET THE PERCENTAGE OF GROSS GAMING REVENUE FROM MOBILE SPORTS WAGERING REQUIRED BY THE COMMIS- SION FOR LICENSE AWARD SHALL NOT BE AWARDED A LICENSE. § 5. Section 104 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 24 to read as follows: 24. TO REGULATE SPORTS WAGERING IN NEW YORK STATE. § 6. Section 1311 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 3 to read as follows: 3. AS A CONDITION FOR CONTINUED LICENSURE, LICENSEES SHALL BE REQUIRED TO HOUSE UPON THE PHYSICAL PREMISES OF THE LICENSED GAMING FACILITY, A MOBILE SPORTS WAGERING PLATFORM PROVIDER'S SERVER OR OTHER EQUIPMENT USED FOR RECEIVING MOBILE SPORTS WAGERS PURSUANT TO SECTION 1367-A OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW; PROVIDED HOWEVER, THAT SUCH LICENSEE SHALL BE ENTITLED TO THE REASONABLE AND ACTUAL COSTS, AS DETERMINED BY THE GAMING COMMISSION, OF PHYSICALLY HOUSING AND SECUR- ING SUCH SERVER OR OTHER EQUIPMENT USED FOR RECEIVING MOBILE SPORTS WAGERS AT SUCH LICENSEE'S LICENSED GAMING FACILITY; AND PROVIDED FURTHER, THAT AS CONSIDERATION FOR HOUSING AND SECURING SUCH SERVER AT THE PHYSICAL PREMISES OF THE LICENSED GAMING FACILITY, MOBILE SPORTS WAGERING PLATFORM PROVIDERS SHALL PAY TO SUCH LICENSED GAMING FACILITY, FIVE MILLION DOLLARS PER YEAR FOR THE DURATION OF THE TIME THAT SUCH SERVER IS HOUSED AND OPERATING AT THE PHYSICAL PREMISES OF SUCH LICENSED GAMING FACILITY. § 7. The commission may promulgate any rules and regulations it deems necessary to regulate mobile sports wagering pursuant to any provision of this section. § 8. Severability clause. If any provision of this act or application thereof shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of the act, but shall be confined in its opera- tion to the provision thereof directly involved in the controversy in which the judgment shall have been rendered. § 9. This act shall take effect immediately. PART Z Section 1. The gaming commission shall issue a request for information for the purpose of soliciting interest regarding the three unawarded gaming facility licenses authorized by the state constitution. Such request shall seek information from parties interested in developing and/or operating such gaming facilities which shall inform the commis- sion for the purposes of determining: the appropriate size and scope of development, the value of the gaming facility license, and the process that should be used in award consideration. The commission shall prepare and distribute a report with the results of the request for information to the governor and the legislature no later than six months after receiving such information. § 2. This act shall take effect immediately. PART AA Intentionally Omitted PART BB S. 2509--C 79 A. 3009--C Section 1. Paragraphs 4 and 5 of subdivision a of section 1612 of the tax law, as amended by chapter 174 of the laws of 2013, are amended and a new paragraph 6 is added to read as follows: (4) fifty percent of the total amount for which tickets have been sold for games known as: (A) the "Daily Numbers Game" or "Win 4", discrete games in which the participants select no more than three or four of their own numbers to match with three or four numbers drawn by the [division] COMMISSION for purposes of determining winners of such games, (B) "Pick 10", offered no more than [once] TWICE daily, in which partic- ipants select from a specified field of numbers a subset of ten numbers to match against a subset of numbers to be drawn by the [division] COMMISSION from such field of numbers for the purpose of determining winners of such game, (C) "Take 5", offered no more than [once] TWICE daily, in which participants select from a specified field of numbers a subset of five numbers to match against a subset of five numbers to be drawn by the [division] COMMISSION from such field of numbers for purposes of determining winners of such game; or (5) forty percent of the total amount for which tickets have been sold for: (A) "Lotto", offered no more than [once] TWICE daily, a discrete game in which all participants select a specific subset of numbers to match a specific subset of numbers, as prescribed by rules and regu- lations promulgated and adopted by the [division] COMMISSION, from a larger specific field of numbers, as also prescribed by such rules and regulations and (B) with the exception of the game described in para- graph one of this subdivision, such other state-operated lottery games [which] THAT the [division] COMMISSION may introduce, offered no more than [once] TWICE daily, commencing on or after forty-five days follow- ing the official publication of the rules and regulations for such game. (6) THE COMMISSION SHALL MAKE A REPORT ON THE REVENUES DERIVED FROM THE ADDITIONAL LOTTERY DRAWINGS PURSUANT TO PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVISION AND SHALL SUBMIT SUCH REPORT TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, AND THE TEMPORARY PRESIDENT OF THE SENATE BY THE FIRST DAY OF MARCH TWO THOUSAND TWENTY-TWO. § 2. This act shall take effect immediately. PART CC Section 1. Sections 1368, 1369, 1370 and 1371 of the racing, pari-mu- tuel wagering and breeding law are renumbered sections 130, 131, 132 and 133. § 2. Title 9 of article 13 of the racing, pari-mutuel wagering and breeding law is REPEALED. § 3. Section 130 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 130. [Establishment of the] THE office of gaming inspector general. [There is hereby created within the commission the office of gaming inspector general. The head of the office shall be the gaming inspector general who shall be appointed by the governor by and with the advice and consent of the senate. The inspector general shall serve at the pleasure of the governor. The inspector general shall report directly to the governor. The person appointed as inspector general shall, upon his or her appointment, have not less than ten years professional experience in law, investigation, or auditing. The inspector general shall be compensated within the limits of funds available therefor, provided, however, such salary shall be no less than the salaries of certain state S. 2509--C 80 A. 3009--C officers holding the positions indicated in paragraph (a) of subdivision one of section one hundred sixty-nine of the executive law.] THE DUTIES AND RESPONSIBILITIES OF THE FORMER OFFICE OF THE GAMING INSPECTOR GENER- AL ARE TRANSFERRED TO AND ENCOMPASSED BY THE OFFICE OF THE STATE INSPEC- TOR GENERAL AS EXPRESSLY REFERENCED IN ARTICLE FOUR-A OF THE EXECUTIVE LAW. § 4. Section 131 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 131. [State gaming] GAMING inspector general; functions and duties. The [state] gaming inspector general shall have the following duties and responsibilities: 1. receive and investigate complaints from any source, or upon his or her own initiative, concerning allegations of corruption, fraud, crimi- nal activity, conflicts of interest or abuse in the commission; 2. [inform the commission members of such allegations and the progress of investigations related thereto, unless special circumstances require confidentiality; 3.] determine with respect to such allegations whether disciplinary action, civil or criminal prosecution, or further investigation by an appropriate federal, state or local agency is warranted, and to assist in such investigations; [4.] 3. prepare and release to the public written reports of such investigations, as appropriate and to the extent permitted by law, subject to redaction to protect the confidentiality of witnesses. The release of all or portions of such reports may be deferred to protect the confidentiality of ongoing investigations; [5.] 4. review and examine periodically the policies and procedures of the commission with regard to the prevention and detection of corruption, fraud, criminal activity, conflicts of interest or abuse; [6.] 5. recommend remedial action to prevent or eliminate corruption, fraud, criminal activity, conflicts of interest or abuse in the commis- sion; [and] [7.] 6. establish programs for training commission officers and employees [regarding] IN REGARD TO the prevention and elimination of corruption, fraud, criminal activity, conflicts of interest or abuse in the commission; AND 7. MAKE AN ANNUAL REPORT TO THE GOVERNOR, THE COMPTROLLER AND THE LEGISLATURE CONCERNING ITS WORK DURING THE PRECEDING YEAR. SUCH REPORT SHALL INCLUDE BUT NOT BE LIMITED TO THE NUMBER OF CASES INVESTIGATED, AND THE NUMBER OF COMPLAINTS RECEIVED. SUCH INITIAL REPORT SHALL BE DUE NO LATER THAN THE FIRST DAY OF APRIL TWO THOUSAND TWENTY-TWO, AND THEN BY THE FIRST DAY OF APRIL EACH YEAR THEREAFTER. SUCH REPORT SHALL BE MADE PUBLIC AND PUBLISHED ON THE WEBSITE OF THE OFFICE OF THE STATE INSPECTOR GENERAL AND ON THE WEBSITE OF THE COMMISSION. § 5. Section 132 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 132. Powers. The [state] gaming inspector general shall have the power to: 1. subpoena and enforce the attendance of witnesses; 2. administer oaths or affirmations and examine witnesses under oath; 3. require the production of any books and papers deemed relevant or material to any investigation, examination or review; S. 2509--C 81 A. 3009--C 4. notwithstanding any law to the contrary, examine and copy or remove documents or records of any kind prepared, maintained or held by the commission; 5. require any commission officer or employee to answer questions concerning any matter related to the performance of his or her official duties. NO STATEMENT OR OTHER EVIDENCE DERIVED THEREFROM MAY BE USED AGAINST SUCH OFFICER OR EMPLOYEE IN ANY SUBSEQUENT CRIMINAL PROSECUTION OTHER THAN FOR PERJURY OR CONTEMPT ARISING FROM SUCH TESTIMONY. The refusal of any officer or employee to answer questions shall be cause for removal from office or employment or other appropriate penalty; 6. monitor the implementation by the commission of any recommendations made by the state inspector general; and 7. perform any other functions that are necessary or appropriate to fulfill the duties and responsibilities of the office. § 6. Section 133 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013 and as renumbered by section one of this act, is amended to read as follows: § 133. Responsibilities of the commission and its officers and employ- ees. 1. Every commission officer or employee shall report promptly to the [state] gaming inspector general any information concerning corruption, fraud, criminal activity, conflicts of interest or abuse by another state officer or employee relating to his or her office or employment, or by a person having business dealings with the commission relating to those dealings. The knowing failure of any officer or employee to so report shall be cause for removal from office or employ- ment or other appropriate penalty under this article. Any officer or employee who acts pursuant to this subdivision by reporting to the [state] gaming inspector general or other appropriate law enforcement official improper governmental action as defined in section seventy- five-b of the civil service law shall not be subject to dismissal, discipline or other adverse personnel action. 2. The commission chair shall advise the governor within ninety days of the issuance of a report by the [state] gaming inspector general as to the remedial action that the commission has taken in response to any recommendation for such action contained in such report. § 7. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 134 to read as follows: § 134. TRANSFER OF EMPLOYEES. UPON THE TRANSFER OF FUNCTIONS, POWERS, DUTIES AND OBLIGATIONS TO THE OFFICE OF THE STATE INSPECTOR GENERAL PURSUANT TO THIS ARTICLE, PROVISION SHALL BE MADE FOR THE TRANSFER OF ALL GAMING INSPECTOR GENERAL EMPLOYEES FROM WITHIN THE GAMING COMMISSION INTO THE OFFICE OF THE STATE INSPECTOR GENERAL. ANY EMPLOYEES TRANSFERRED SHALL BE TRANSFERRED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SEVENTY OF THE CIVIL SERVICE LAW. EMPLOYEES SO TRANSFERRED SHALL BE TRANSFERRED WITHOUT FURTHER EXAMINATION OR QUALI- FICATION TO THE SAME OR SIMILAR TITLES, SHALL REMAIN IN THE SAME COLLECTIVE BARGAINING UNITS AND SHALL RETAIN THEIR RESPECTIVE CIVIL SERVICE CLASSIFICATIONS, STATUS AND RIGHTS PURSUANT TO THEIR COLLECTIVE BARGAINING UNITS AND COLLECTIVE BARGAINING AGREEMENTS. § 8. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 135 to read as follows: § 135. TRANSFER OF RECORDS. ALL BOOKS, PAPERS, RECORDS AND PROPERTY OF THE GAMING INSPECTOR GENERAL WITHIN THE GAMING COMMISSION WITH RESPECT TO THE FUNCTIONS, POWERS, DUTIES AND OBLIGATIONS TRANSFERRED BY SECTION ONE HUNDRED THIRTY OF THIS ARTICLE, ARE TO BE DELIVERED TO THE APPROPRIATE SUCCESSOR OFFICES WITHIN THE OFFICE OF THE STATE INSPECTOR S. 2509--C 82 A. 3009--C GENERAL, AT SUCH PLACE AND TIME, AND IN SUCH MANNER AS THE OFFICE OF THE STATE INSPECTOR GENERAL MAY REQUIRE. § 9. This act shall take effect on the sixtieth day after it shall have become a law. PART DD 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 Z of chapter 59 of the laws of 2020, is amended to read as follows: (a) Any racing association or corporation or regional off-track betting corporation, authorized to conduct pari-mutuel wagering under this chapter, desiring to display the simulcast of horse races on which pari-mutuel betting shall be permitted in the manner and subject to the conditions provided for in this article may apply to the commission for a license so to do. Applications for licenses shall be in such form as may be prescribed by the commission and shall contain such information or other material or evidence as the commission may require. No license shall be issued by the commission authorizing the simulcast transmission of thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility and for account wagering licensees that do not operate either a simul- cast facility that is open to the public within the state of New York or a licensed racetrack within the state, twenty thousand dollars per year payable by the licensee to the commission for deposit into the general fund. Except as provided in this section, the commission shall not approve any application to conduct simulcasting into individual or group residences, homes or other areas for the purposes of or in connection with pari-mutuel wagering. The commission may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corporations and one or more of the follow- ing: a franchised corporation, thoroughbred racing corporation or a harness racing corporation or association; provided (i) the simulcasting consists only of those races on which pari-mutuel betting is authorized by this chapter at one or more simulcast facilities for each of the contracting off-track betting corporations which shall include wagers made in accordance with section one thousand fifteen, one thousand sixteen and one thousand seventeen of this article; provided further that the contract provisions or other simulcast arrangements for such simulcast facility shall be no less favorable than those in effect on January first, two thousand five; (ii) that each off-track betting corporation having within its geographic boundaries such residences, homes or other areas technically capable of receiving the simulcast signal shall be a contracting party; (iii) the distribution of revenues shall be subject to contractual agreement of the parties except that statutory payments to non-contracting parties, if any, may not be reduced; provided, however, that nothing herein to the contrary shall prevent a track from televising its races on an irregular basis primari- ly for promotional or marketing purposes as found by the commission. For purposes of this paragraph, the provisions of section one thousand thir- teen of this article shall not apply. Any agreement authorizing an in-home simulcasting experiment commencing prior to May fifteenth, nine- teen hundred ninety-five, may, and all its terms, be extended until June thirtieth, two thousand [twenty-one] TWENTY-TWO; provided, however, that any party to such agreement may elect to terminate such agreement upon S. 2509--C 83 A. 3009--C 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-one] TWENTY-TWO; and (iv) no in-home simulcasting in the thoroughbred special betting district shall occur without the approval of the regional thoroughbred track. § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 1007 of the racing, pari-mutuel wagering and breeding law, as separately amended by chapter 243 and section 2 of part Z of chapter 59 of the laws of 2020, 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-one] TWENTY-TWO, the amount used exclu- sively for purses to be awarded at races conducted by such receiving track shall be computed as follows: of the sums so retained, two and one-half percent of the total pools. Such amount shall be increased or decreased in the amount of fifty percent of the difference in total commissions determined by comparing the total commissions available after July twenty-first, nineteen hundred ninety-five to the total commissions that would have been available to such track prior to July twenty-first, nineteen hundred ninety-five. § 3. The opening paragraph of subdivision 1 of section 1014 of the racing, pari-mutuel wagering and breeding law, as separately amended by section 3 of part Z of chapter 59 and chapter 243 of the laws of 2020, 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-one] TWENTY-TWO and on any day regard- less 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-one] TWENTY-TWO. 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, each off-track betting corporation branch office and each simul- casting facility licensed in accordance with section one thousand seven (that has entered into a written agreement with such facility's repre- sentative horsemen's organization, as approved by the commission), one thousand eight, or one thousand nine of this article shall be authorized to accept wagers and display the live simulcast signal from thoroughbred tracks located in another state or foreign country subject to the following provisions: § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part Z of chapter 59 of the laws of 2020, 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-one] TWENTY-TWO. This section shall supersede all inconsistent provisions of this chapter. S. 2509--C 84 A. 3009--C § 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 Z of chapter 59 of the laws of 2020, 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-one] TWENTY-TWO. 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 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 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 Z of chapter 59 of the laws of 2020, 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 [twenty] TWENTY-ONE, 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 Z of chapter 59 of the laws of 2020, 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, [2021] 2022; 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 S. 2509--C 85 A. 3009--C simulcasting and the imposition of certain taxes, as amended by section 8 of part Z of chapter 59 of the laws of 2020, 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, [2021] 2022; 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 separately amended by section 9 of part Z of chapter 59 and chapter 243 of the laws of 2020, 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 are presented for payment before April first of the year following the year of their purchase, less an amount that shall be established and retained by such franchised corporation of between twelve to seventeen percent of the total deposits in pools resulting from on-track regular bets, and fourteen to twenty- one percent of the total deposits in pools resulting from on-track multiple bets and fifteen to twenty-five percent of the total deposits in pools resulting from on-track exotic bets and fifteen to thirty-six percent 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 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 percent of regular bets and four percent of multiple bets plus twenty percent of the breaks; for exotic wagers seven and one-half percent plus twenty percent of the breaks, and for super exotic bets seven and one-half percent plus fifty percent of the breaks. For the period April first, two thousand one through December thirty- first, two thousand [twenty-one] TWENTY-TWO, such tax on all wagers shall be one and six-tenths percent, plus, in each such period, twenty percent of the breaks. Payment to the New York state thoroughbred breed- ing and development fund by such franchised corporation shall be one- S. 2509--C 86 A. 3009--C half of one percent of total daily on-track pari-mutuel pools resulting from regular, multiple and exotic bets and three percent of super exotic bets and for the period April first, two thousand one through December thirty-first, two thousand [twenty-one] TWENTY-TWO, such payment shall be seven-tenths of one percent of regular, multiple and exotic pools. § 10. This act shall take effect immediately. PART EE Section 1. Section 19 of part W-1 of chapter 109 of the laws of 2006 amending the tax law and other laws relating to providing exemptions, reimbursements and credits from various taxes for certain alternative fuels, as amended by section 1 of part U of chapter 60 of the laws of 2016, is amended to read as follows: § 19. This act shall take effect immediately; provided, however, that sections one through thirteen of this act shall take effect September 1, 2006 and shall be deemed repealed on September 1, [2021] 2026 and such repeal shall apply in accordance with the applicable transitional provisions of sections 1106 and 1217 of the tax law, and shall apply to sales made, fuel compounded or manufactured, and uses occurring on or after such date, and with respect to sections seven through eleven of this act, in accordance with applicable transitional provisions of sections 1106 and 1217 of the tax law; provided, however, that the commissioner of taxation and finance shall be authorized on and after the date this act shall have become a law to adopt and amend any rules or regulations and to take any steps necessary to implement the provisions of this act; provided further that sections fourteen through sixteen of this act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2006. § 2. This act shall take effect immediately. PART FF Section 1. Subsection (e) of section 42 of the tax law, as added by section 1 of part RR of chapter 60 of the laws of 2016, is amended to read as follows: (e) For taxable years beginning on or after January first, two thou- sand seventeen and before January first, two thousand eighteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and two hundred fifty dollars. For taxable years beginning on or after January first, two thousand eighteen and before January first, two thousand nineteen, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and three hundred dollars. For taxable years beginning on or after January first, two thousand nineteen and before January first, two thousand twenty, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and five hundred dollars. For taxable years beginning on or after January first, two thousand twenty and before January first, two thousand twenty-one, the amount of the credit allowed under this section shall be equal to the product of the total number of eligible farm employees and four hundred dollars. For taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand [twenty-two] TWENTY-FIVE, the amount of the credit allowed under this section shall S. 2509--C 87 A. 3009--C be equal to the product of the total number of eligible farm employees and six hundred dollars. § 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending the tax law relating to creating a farm workforce retention credit is amended to read as follows: § 5. This act shall take effect immediately and shall apply only to taxable years beginning on or after January 1, 2017 and before January 1, [2022] 2025. § 3. This act shall take effect immediately. PART GG Section 1. Subdivision 4 of section 22 of the public housing law, as amended by section 5 of part H of chapter 60 of the laws of 2016, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [four] TWELVE million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. § 2. Subdivision 4 of section 22 of the public housing law, as amended by section one of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twelve] TWENTY million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligi- ble low-income building for each year of the credit period. § 3. Subdivision 4 of section 22 of the public housing law, as amended by section two of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twenty] TWENTY-EIGHT million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 4. Subdivision 4 of section 22 of the public housing law, as amended by section three of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [twenty-eight] THIRTY-SIX million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 5. Subdivision 4 of section 22 of the public housing law, as amended by section four of this act, is amended to read as follows: 4. Statewide limitation. The aggregate dollar amount of credit which the commissioner may allocate to eligible low-income buildings under this article shall be one hundred [thirty-six] FORTY-FOUR million dollars. The limitation provided by this subdivision applies only to allocation of the aggregate dollar amount of credit by the commissioner, S. 2509--C 88 A. 3009--C and does not apply to allowance to a taxpayer of the credit with respect to an eligible low-income building for each year of the credit period. § 6. This act shall take effect immediately; provided, however, section two of this act shall take effect April 1, 2022; section three of this act shall take effect April 1, 2023; section four of this act shall take effect April 1, 2024; and section five of this act shall take effect April 1, 2025. PART HH Section 1. Section 5 of part HH of chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, as amended by section 1 of part III of chapter 59 of the laws of 2018, is amended to read as follows: § 5. This act shall take effect immediately, provided that section two of this act shall take effect on January 1, 2015, and shall apply to taxable years beginning on or after January 1, 2015, with respect to "qualified production expenditures" and "transportation expenditures" paid or incurred on or after such effective date, regardless of whether the production of the qualified musical or theatrical production commenced before such date, provided further that this act shall expire and be deemed repealed [8 years after such date] JANUARY 1, 2026. § 2. Paragraph 1 of subdivision (e) of section 24-a of the tax law, as added by section 1 of part HH of chapter 59 of the laws of 2014, is amended to read as follows: (1) The aggregate amount of tax credits allowed under this section, subdivision forty-seven of section two hundred ten-B and subsection (u) of section six hundred six of this chapter in any calendar year shall be [four] EIGHT million dollars. Such aggregate amount of credits shall be allocated by the department of economic development among taxpayers in order of priority based upon the date of filing an application for allo- cation of musical and theatrical production credit with such department. If the total amount of allocated credits applied for in any particular year exceeds the aggregate amount of tax credits allowed for such year under this section, such excess shall be treated as having been applied for on the first day of the subsequent year. § 3. This act shall take effect immediately, provided, however, that the amendments to section 24-a of the tax law made by section two of this act shall not affect the expiration and repeal of such section and shall be deemed to expire and repeal therewith. PART II 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 B of chapter 59 of the laws of 2020, 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-two] 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 S. 2509--C 89 A. 3009--C 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-one] 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 B of chapter 59 of the laws of 2020, 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-two] 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-one] 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 B of chapter 59 of the laws of 2020, 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-two] 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-one] TWENTY-TWO; and § 4. This act shall take effect immediately. PART JJ Section 1. Section 12 of part V of chapter 61 of the laws of 2011, amending the economic development law, the tax law and the real property tax law, relating to establishing the economic transformation and facil- ity redevelopment program and providing tax benefits under that program, is amended to read as follows: § 12. This act shall take effect immediately and shall expire and be deemed repealed December 31, [2021] 2026. § 2. Paragraph (a) of subdivision 11 of section 400 of the economic development law, as amended by section 1 of part GG of chapter 58 of the laws of 2020, is amended to read as follows: S. 2509--C 90 A. 3009--C (a) a correctional facility, as defined in paragraph (a) of subdivi- sion four of section two of the correction law, that has been selected by the governor of the state of New York for closure after April first, two thousand eleven but no later than March thirty-first, two thousand [twenty-one] TWENTY-SIX; or § 3. This act shall take effect immediately; provided, however, that the amendments to section 400 of the economic development law made by section two of this act shall not affect the repeal of such section and shall be deemed repealed therewith. PART KK Section 1. The opening paragraph of section 1310 of the general busi- ness law, as added by section 2 of part X of chapter 55 of the laws of 2018, is amended to read as follows: Except as otherwise provided in this article, the program shall be implemented, and enrollment of employees shall begin[, within twenty- four months after the effective date of this article] NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE. The provisions of this section shall be in force after the board opens the program for enroll- ment. § 2. Section 1315 of the general business law, as added by section 2 of part X of chapter 55 of the laws of 2018, is amended to read as follows: § 1315. Delayed implementation. The board may delay the implementation of the program an additional twelve months beyond the [twenty-four months] DATE established in section thirteen hundred ten of this article if the board determines that further delay is necessary to address legal, financial or other programmatic concerns impacting the viability of the program. The board shall provide reasonable notice of such delay to the governor, the commissioner, the speaker of the assembly, the temporary president of the senate, the chair of the assembly ways and means committee, the chair of the senate finance committee, the chair of the assembly labor committee, and the chair of the senate labor commit- tee. § 3. This act shall take effect immediately. PART LL Section 1. Subdivision 2 of section 1355 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: 2. If an applicant that does not possess either a pari-mutuel wagering license or franchise awarded pursuant to article two or three of this chapter is issued a gaming facility license pursuant to this article[, the licensee shall pay]: (a) FOR THE PERIODS PRIOR TO MARCH SIXTEENTH, TWO THOUSAND TWENTY, THE LICENSEE SHALL PAY: (I) an amount to horsemen for purses at the licensed racetracks in the region that will assure the purse support from video lottery gaming facilities in the region to the licensed racetracks in the region to be maintained at the same dollar levels realized in two thousand thirteen to be adjusted by the consumer price index for all urban consumers, as published annually by the United States department of labor bureau of labor statistics; and S. 2509--C 91 A. 3009--C [(b)] (II) amounts to the agricultural and New York state horse breed- ing development fund and the New York state thoroughbred breeding and development fund to maintain payments from video lottery gaming facili- ties in the region to such funds to be maintained at the same dollar levels realized in two thousand thirteen to be adjusted by the consumer price index for all urban consumers, as published annually by the United States department of labor bureau of labor statistics[.]; AND (B) BEGINNING ON MARCH SIXTEENTH, TWO THOUSAND TWENTY AND FOR ALL TIME THEREAFTER, THE LICENSEE SHALL PAY AN AMOUNT TO HORSEMEN FOR PURSES AT THE LICENSED RACETRACKS IN THE REGION AND AN AMOUNT TO THE AGRICULTURAL AND NEW YORK STATE HORSE BREEDING DEVELOPMENT FUND AND THE NEW YORK STATE THOROUGHBRED BREEDING AND DEVELOPMENT FUND THAT, IN AGGREGATE, SHALL BE EQUAL TO THE PRODUCT OF THREE AND EIGHT-TENTHS PERCENT MULTI- PLIED BY THE GROSS GAMING REVENUE FROM SLOT MACHINES OF THE LICENSEE FOR THE APPLICABLE CALENDAR YEAR, PROVIDED THAT SUCH AMOUNT SHALL NOT EXCEED THE AMOUNT PAID BY THE LICENSEE TO SUCH HORSEMEN AND BREEDERS FUNDS FOR THE FULL TWO THOUSAND NINETEEN CALENDAR YEAR ADJUSTED ANNUALLY BY THE LESSER OF (I) CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS, AS PUBLISHED ANNUALLY BY THE UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS OR (II) TWO AND FOUR-TENTHS PERCENT. OF THE AMOUNT PAID PURSUANT TO THIS PARAGRAPH, EIGHTY-SEVEN PERCENT WILL BE PAID TO THE HORSEMEN AND THE REMAINDER WILL BE PAID TO THE AGRICULTURAL AND NEW YORK STATE HORSE BREEDING DEVELOPMENT FUND AND THE NEW YORK STATE THOROUGH- BRED BREEDING AND DEVELOPMENT FUND. (C) AGGREGATE PAYMENTS OWED FOR THE CALENDAR YEAR OF TWO THOUSAND TWENTY PURSUANT TO PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION SHALL BE PAYABLE IN TWO THOUSAND TWENTY-ONE IN THREE INSTALLMENTS OF FOUR HUNDRED SIXTY THOUSAND DOLLARS IN APRIL, JULY AND OCTOBER WITH THE REMAINDER PAYABLE IN DECEMBER, WITH EIGHTY-SEVEN PERCENT OF THE AGGREGATE PAYABLE TO THE HORSEMEN AND THE REMAINDER PAYABLE TO THE BREEDERS FUNDS. PAYMENTS OWED FOR CALENDAR YEARS TWO THOUSAND TWENTY-ONE AND THEREAFTER SHALL BE PAYABLE IN CALENDAR QUARTERLY INSTALLMENTS, WITHIN THIRTY DAYS OF THE COMPLETION OF THE PRECEDING CALENDAR QUARTER. § 2. This act shall take effect immediately. PART MM Section 1. Subdivision (a) of section 1115 of the tax law is amended by adding a new paragraph 46 to read as follows: (46) BREAST PUMP REPLACEMENT PARTS AND BREAST PUMP COLLECTION AND STORAGE SUPPLIES TO AN INDIVIDUAL PURCHASER FOR HOME USE. FOR PURPOSES OF THIS SUBDIVISION: (A) "BREAST PUMP REPLACEMENT PARTS" SHALL MEAN ITEMS USED IN CONJUNC- TION WITH A BREAST PUMP TO COLLECT MILK EXPRESSED FROM A HUMAN BREAST AND SHALL INCLUDE, BUT NOT BE LIMITED TO: BREAST SHIELDS AND BREAST SHIELD CONNECTORS; BREAST PUMP TUBES AND TUBING ADAPTERS; BREAST PUMP VALVES AND MEMBRANES; BACKFLOW PROTECTORS AND BACKFLOW PROTECTOR ADAPT- ERS; AND BOTTLES AND BOTTLE CAPS SPECIFIC TO THE OPERATION OF THE BREAST PUMP. "BREAST PUMP REPLACEMENT PARTS" DOES NOT INCLUDE STORAGE BAGS AND INFANT FEEDING BOTTLES THAT ARE NOT SPECIFICALLY DESIGNED FOR, OR A COMPONENT PART OF, A BREAST PUMP. (B) "BREAST PUMP COLLECTION AND STORAGE SUPPLIES" SHALL MEAN BREAST MILK STORAGE BAGS USED TO COLLECT BREAST MILK AND TO STORE COLLECTED BREAST MILK UNTIL IT IS READY FOR CONSUMPTION. § 2. This act shall take effect on the first day of a sales tax quar- terly period, as described in subdivision (b) of section 1136 of the tax S. 2509--C 92 A. 3009--C law, beginning at least ninety days after the date this act shall have become a law and shall apply to sales made on or after such date. PART NN Section 1. (a) Notwithstanding any provision of law to the contrary, for the duration of the state disaster emergency pursuant to executive order 202 of 2020, a taxpayer that has required some or all of its employees to work remotely as a result of the outbreak of novel corona- virus, COVID-19, may designate such remote work as having been performed at the location such work was performed prior to the declaration of such state disaster emergency for tax benefits that are based on maintaining a presence within the state or within specific areas of the state, including but not limited to those provided pursuant to article seven- teen of the economic development law and sections 31 and 39 of the tax law. (b) Eligible businesses shall be required to certify, that for the entire period the benefit is claimed, the business continued to operate within the state. (c) Under no circumstances shall a business be eligible for tax bene- fits based on maintaining a presence within the state or within specific areas of the state for any time period in which the business moved its operations outside of the state. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on or after March 7, 2020 and shall expire on the date of expiration of the state disaster emergency pursu- ant to executive order 202 of 2020 or December 31, 2021, whichever is sooner; provided that the commissioner of taxation and finance shall notify the legislative bill drafting commission upon the occurrence of the expiration of the state disaster emergency pursuant to executive order 202 of 2020, as amended, in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law. PART OO Section 1. Notwithstanding the provisions of section six hundred eighty-four of the tax law, for good cause shown, the commissioner may waive interest on any underpayment of tax imposed under article 22 or pursuant to the authority of article 30 or 30-A of such law for taxable year two thousand twenty that is due solely to insufficient withholding of tax on unemployment compensation. § 2. This act shall take effect immediately. PART PP Section 1. This act enacts into law components of legislation relating to the pandemic recovery and restart program. Each component is wholly contained within a Subpart identified as Subparts A through B. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes reference to a section "of this act", when used in connection with that particular component, shall be deemed to S. 2509--C 93 A. 3009--C mean and refer to the corresponding section of the Subpart in which it is found. Section three of this act sets forth the general effective date of this act. SUBPART A Section 1. The economic development law is amended by adding a new article 25 to read as follows: ARTICLE 25 RESTAURANT RETURN-TO-WORK TAX CREDIT PROGRAM SECTION 470. SHORT TITLE. 471. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. 472. DEFINITIONS. 473. ELIGIBILITY CRITERIA. 474. APPLICATION AND APPROVAL PROCESS. 475. RESTAURANT RETURN-TO-WORK TAX CREDIT. 476. POWERS AND DUTIES OF THE COMMISSIONER. 477. MAINTENANCE OF RECORDS. 478. REPORTING. 479. CAP ON TAX CREDIT. § 470. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "RESTAURANT RETURN-TO-WORK TAX CREDIT PROGRAM ACT". § 471. STATEMENT OF LEGISLATIVE FINDINGS AND DECLARATION. IT IS HEREBY FOUND AND DECLARED THAT NEW YORK STATE NEEDS, AS A MATTER OF PUBLIC POLICY, TO CREATE FINANCIAL INCENTIVES FOR RESTAURANTS THAT HAVE SUFFERED ECONOMIC HARM AS A RESULT OF THE COVID-19 PANDEMIC TO EXPE- DITIOUSLY REHIRE WORKERS AND INCREASE TOTAL EMPLOYMENT. THE RESTAURANT RETURN-TO-WORK TAX CREDIT PROGRAM IS CREATED TO PROVIDE FINANCIAL INCEN- TIVES TO ECONOMICALLY HARMED RESTAURANTS TO OFFER RELIEF, EXPEDITE THEIR HIRING EFFORTS, AND REDUCE THE DURATION AND SEVERITY OF THE CURRENT ECONOMIC DIFFICULTIES. § 472. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE: 1. "AVERAGE FULL-TIME EMPLOYMENT" SHALL MEAN THE AVERAGE NUMBER OF FULL-TIME EQUIVALENT POSITIONS EMPLOYED BY A BUSINESS ENTITY IN AN ELIGIBLE INDUSTRY DURING A GIVEN PERIOD. 2. "AVERAGE STARTING FULL-TIME EMPLOYMENT" SHALL BE CALCULATED AS THE AVERAGE NUMBER OF FULL-TIME EQUIVALENT POSITIONS EMPLOYED BY A BUSINESS ENTITY IN AN ELIGIBLE INDUSTRY BETWEEN JANUARY FIRST, TWO THOUSAND TWEN- TY-ONE, AND MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-ONE. 3. "AVERAGE ENDING FULL-TIME EMPLOYMENT" SHALL BE CALCULATED AS THE AVERAGE NUMBER OF FULL-TIME EQUIVALENT POSITIONS EMPLOYED BY A BUSINESS ENTITY IN AN ELIGIBLE INDUSTRY BETWEEN APRIL FIRST, TWO THOUSAND TWEN- TY-ONE, AND EITHER AUGUST THIRTY-FIRST, TWO THOUSAND TWENTY-ONE, OR DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE, WHICHEVER DATE THE BUSI- NESS ENTITY CHOOSES TO USE. 4. "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A BUSINESS ENTITY BY THE DEPARTMENT AFTER THE DEPARTMENT HAS VERIFIED THAT THE BUSINESS ENTITY HAS MET ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS ARTICLE. THE CERTIFICATE SHALL SPECIFY THE EXACT AMOUNT OF THE TAX CRED- IT UNDER THIS ARTICLE THAT A BUSINESS ENTITY MAY CLAIM, PURSUANT TO SECTION FOUR HUNDRED SEVENTY-FIVE OF THIS ARTICLE. 5. "COMMISSIONER" SHALL MEAN COMMISSIONER OF THE DEPARTMENT OF ECONOM- IC DEVELOPMENT. 6. "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF ECONOMIC DEVELOPMENT. 7. "ELIGIBLE INDUSTRY" MEANS A BUSINESS ENTITY OPERATING PREDOMINANTLY IN THE COVID-19 IMPACTED FOOD SERVICES SECTOR. S. 2509--C 94 A. 3009--C 8. "NET EMPLOYEE INCREASE" MEANS AN INCREASE OF AT LEAST ONE FULL-TIME EQUIVALENT EMPLOYEE BETWEEN THE AVERAGE STARTING FULL-TIME EMPLOYMENT AND THE AVERAGE ENDING FULL-TIME EMPLOYMENT OF A BUSINESS ENTITY. 9. "COVID-19 IMPACTED FOOD SERVICES SECTOR" MEANS: (A) INDEPENDENTLY OWNED ESTABLISHMENTS THAT ARE LOCATED INSIDE THE CITY OF NEW YORK AND HAVE BEEN SUBJECTED TO A BAN ON INDOOR DINING FOR OVER SIX MONTHS AND ARE PRIMARILY ORGANIZED TO PREPARE AND PROVIDE MEALS, AND/OR BEVERAGES TO CUSTOMERS FOR CONSUMPTION, INCLUDING FOR IMMEDIATE INDOOR ON-PREMISES CONSUMPTION, AS FURTHER DEFINED IN REGU- LATIONS PURSUANT TO THIS ARTICLE; AND (B) INDEPENDENTLY OWNED ESTABLISHMENTS THAT ARE LOCATED OUTSIDE OF THE CITY OF NEW YORK IN AN AREA WHICH HAS BEEN AND/OR REMAINS DESIGNATED BY THE DEPARTMENT OF HEALTH AS EITHER AN ORANGE ZONE OR RED ZONE PURSUANT TO EXECUTIVE ORDER 202.68 AS AMENDED, AND FOR WHICH SUCH DESIGNATION WAS OR HAS BEEN IN EFFECT AND RESULTED IN ADDITIONAL RESTRICTIONS ON INDOOR DINING FOR AT LEAST THIRTY CONSECUTIVE DAYS, AND ARE PRIMARILY ORGANIZED TO PREPARE AND PROVIDE MEALS, AND/OR BEVERAGES TO CUSTOMERS FOR CONSUMP- TION, INCLUDING FOR IMMEDIATE INDOOR ON-PREMISES CONSUMPTION, AS FURTHER DEFINED IN REGULATIONS PURSUANT TO THIS ARTICLE. § 473. ELIGIBILITY CRITERIA. 1. TO BE ELIGIBLE FOR A TAX CREDIT UNDER THE RESTAURANT RETURN-TO-WORK TAX CREDIT PROGRAM, A BUSINESS ENTITY MUST: (A) BE A SMALL BUSINESS AS DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF THIS CHAPTER AND HAVE FEWER THAN ONE HUNDRED FULL-TIME JOB EQUIV- ALENTS IN NEW YORK STATE AS OF APRIL FIRST, TWO THOUSAND TWENTY-ONE; (B) OPERATE A BUSINESS LOCATION IN NEW YORK STATE THAT IS PRIMARILY ORGANIZED TO ACCEPT PAYMENT FOR MEALS AND/OR BEVERAGES INCLUDING FROM IN-PERSON CUSTOMERS; (C) OPERATE PREDOMINANTLY IN THE COVID-19 IMPACTED FOOD SERVICES SECTOR; PROVIDED, HOWEVER, THAT THE DEPARTMENT, IN ITS REGULATIONS PROMULGATED PURSUANT TO THIS ARTICLE, SHALL HAVE THE AUTHORITY TO LIST CERTAIN TYPES OF ESTABLISHMENTS AS INELIGIBLE; (D) HAVE EXPERIENCED ECONOMIC HARM AS A RESULT OF THE COVID-19 EMER- GENCY AS EVIDENCED BY A YEAR-TO-YEAR DECREASE OF AT LEAST FORTY PERCENT IN NEW YORK STATE BETWEEN THE SECOND QUARTER OF TWO THOUSAND NINETEEN AND THE SECOND QUARTER OF TWO THOUSAND TWENTY OR THE THIRD QUARTER OF TWO THOUSAND NINETEEN AND THE THIRD QUARTER OF TWO THOUSAND TWENTY FOR ONE OR BOTH OF: (I) GROSS RECEIPTS OR (II) AVERAGE FULL-TIME EMPLOYMENT; AND (E) HAVE DEMONSTRATED A NET EMPLOYEE INCREASE. 2. A BUSINESS ENTITY MUST BE IN SUBSTANTIAL COMPLIANCE WITH ANY PUBLIC HEALTH OR OTHER EMERGENCY ORDERS OR REGULATIONS RELATED TO THE ENTITY'S SECTOR OR OTHER LAWS AND REGULATIONS AS DETERMINED BY THE COMMISSIONER. IN ADDITION, A BUSINESS ENTITY MAY NOT OWE PAST DUE STATE TAXES OR LOCAL PROPERTY TAXES UNLESS THE BUSINESS ENTITY IS MAKING PAYMENTS AND COMPLY- ING WITH AN APPROVED BINDING PAYMENT AGREEMENT ENTERED INTO WITH THE TAXING AUTHORITY. § 474. APPLICATION AND APPROVAL PROCESS. 1. A BUSINESS ENTITY MUST SUBMIT A COMPLETE APPLICATION AS PRESCRIBED BY THE COMMISSIONER. 2. THE COMMISSIONER SHALL ESTABLISH PROCEDURES AND A TIMEFRAME FOR BUSINESS ENTITIES TO SUBMIT APPLICATIONS. AS PART OF THE APPLICATION, EACH BUSINESS ENTITY MUST: (A) PROVIDE EVIDENCE IN A FORM AND MANNER PRESCRIBED BY THE COMMIS- SIONER OF THEIR BUSINESS ELIGIBILITY; (B) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE THE BUSINESS ENTITY'S TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY S. 2509--C 95 A. 3009--C INFORMATION SHARED AS A RESULT OF THIS PROGRAM SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW; (C) AGREE TO ALLOW THE DEPARTMENT OF LABOR TO SHARE ITS TAX AND EMPLOYER INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS A RESULT OF THIS PROGRAM SHALL NOT BE AVAILABLE FOR DISCLOSURE OR INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW; (D) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE; (E) CERTIFY, UNDER PENALTY OF PERJURY, THAT IT IS IN SUBSTANTIAL COMPLIANCE WITH ALL EMERGENCY ORDERS OR PUBLIC HEALTH REGULATIONS CURRENTLY REQUIRED OF SUCH ENTITY, AND LOCAL, AND STATE TAX LAWS; AND (F) AGREE TO PROVIDE ANY ADDITIONAL INFORMATION REQUIRED BY THE DEPARTMENT RELEVANT TO THIS ARTICLE. 3. AFTER REVIEWING A BUSINESS ENTITY'S COMPLETED FINAL APPLICATION AND DETERMINING THAT THE BUSINESS ENTITY MEETS THE ELIGIBILITY CRITERIA AS SET FORTH IN THIS ARTICLE, THE DEPARTMENT MAY ISSUE TO THAT BUSINESS ENTITY A CERTIFICATE OF TAX CREDIT. A BUSINESS ENTITY MAY CLAIM THE TAX CREDIT IN THE TAXABLE YEAR THAT INCLUDES DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE. § 475. RESTAURANT RETURN-TO-WORK TAX CREDIT. 1. A BUSINESS ENTITY IN THE RESTAURANT RETURN-TO-WORK TAX CREDIT PROGRAM THAT MEETS THE ELIGI- BILITY REQUIREMENTS OF SECTION FOUR HUNDRED SEVENTY-THREE OF THIS ARTI- CLE MAY BE ELIGIBLE TO CLAIM A CREDIT EQUAL TO FIVE THOUSAND DOLLARS PER EACH FULL-TIME EQUIVALENT NET EMPLOYEE INCREASE AS DEFINED IN SUBDIVI- SION EIGHT OF SECTION FOUR HUNDRED SEVENTY-TWO OF THIS ARTICLE. 2. A BUSINESS ENTITY, INCLUDING A PARTNERSHIP, LIMITED LIABILITY COMPANY AND SUBCHAPTER S CORPORATION, MAY NOT RECEIVE IN EXCESS OF FIFTY THOUSAND DOLLARS IN TAX CREDITS UNDER THIS PROGRAM. 3. THE CREDIT SHALL BE ALLOWED AS PROVIDED IN SECTIONS FORTY-SIX, SUBDIVISION FIFTY-SIX OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (LLL) OF SECTION SIX HUNDRED SIX OF THE TAX LAW. § 476. POWERS AND DUTIES OF THE COMMISSIONER. 1. THE COMMISSIONER MAY PROMULGATE REGULATIONS ESTABLISHING AN APPLICATION PROCESS AND ELIGIBIL- ITY CRITERIA, THAT WILL BE APPLIED CONSISTENT WITH THE PURPOSES OF THIS ARTICLE, SO AS NOT TO EXCEED THE ANNUAL CAP ON TAX CREDITS SET FORTH IN SECTION FOUR HUNDRED SEVENTY-NINE OF THIS ARTICLE WHICH, NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, MAY BE ADOPTED ON AN EMERGENCY BASIS. 2. THE COMMISSIONER SHALL, IN CONSULTATION WITH THE DEPARTMENT OF TAXATION AND FINANCE, DEVELOP A CERTIFICATE OF TAX CREDIT THAT SHALL BE ISSUED BY THE COMMISSIONER TO ELIGIBLE BUSINESSES. SUCH CERTIFICATE SHALL CONTAIN SUCH INFORMATION AS REQUIRED BY THE DEPARTMENT OF TAXATION AND FINANCE. 3. THE COMMISSIONER SHALL SOLELY DETERMINE THE ELIGIBILITY OF ANY APPLICANT APPLYING FOR ENTRY INTO THE PROGRAM AND SHALL REMOVE ANY BUSI- NESS ENTITY FROM THE PROGRAM FOR FAILING TO MEET ANY OF THE REQUIREMENTS SET FORTH IN SECTION FOUR HUNDRED SEVENTY-THREE OF THIS ARTICLE, OR FOR FAILING TO MEET THE REQUIREMENTS SET FORTH IN SUBDIVISION ONE OF SECTION FOUR HUNDRED SEVENTY-FOUR OF THIS ARTICLE. § 477. MAINTENANCE OF RECORDS. EACH BUSINESS ENTITY PARTICIPATING IN THE PROGRAM SHALL KEEP ALL RELEVANT RECORDS FOR THEIR DURATION OF PROGRAM PARTICIPATION FOR AT LEAST THREE YEARS. § 478. REPORTING. EACH BUSINESS ENTITY PARTICIPATING IN THIS PROGRAM MUST SUBMIT A PERFORMANCE REPORT TO THE DEPARTMENT AT A TIME PRESCRIBED IN REGULATIONS BY THE COMMISSIONER. THE COMMISSIONER SHALL ON OR BEFORE APRIL FIRST, TWO THOUSAND TWENTY-TWO AND EVERY QUARTER THEREAFTER, UNTIL S. 2509--C 96 A. 3009--C PROGRAM FUNDS ARE FULLY EXPENDED, SUBMIT A REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIR OF THE SENATE FINANCE COMMITTEE, AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, SETTING FORTH THE ACTIVITIES UNDERTAKEN BY THE PROGRAM. SUCH REPORT SHALL INCLUDE, BUT NOT NECESSARILY BE LIMITED TO, THE FOLLOWING IN EACH REPORTING PERIOD: TOTAL NUMBER OF PARTICIPANTS APPROVED AND THE ECONOMIC DEVELOPMENT REGION IN WHICH THE BUSINESS IS LOCATED; TOTAL AMOUNT OF ADVANCE PAYMENTS DISBURSED AND TAX CREDITS CLAIMED, AND AVERAGE AMOUNT OF ADVANCE PAYMENTS DISBURSED AND TAX CREDIT CLAIMED; NAMES OF ADVANCE PAYMENT RECIPIENTS AND TAX CREDITS CLAIMED; TOTAL NUMBER OF REHIRED JOBS CREATED; AND SUCH OTHER INFORMATION AS THE COMMISSIONER DETERMINES NECESSARY AND APPROPRIATE TO EFFECTUATE THE PURPOSE OF THE PROGRAM. SUCH REPORTS SHALL, AT THE SAME TIME, BE INCLUDED ON THE DEPARTMENT'S WEBSITE AND ANY OTHER PUBLICLY ACCESSIBLE DATABASE THAT LIST ECONOMIC DEVELOPMENT PROGRAMS AS DETERMINED BY THE DEPARTMENT. § 479. CAP ON TAX CREDIT. THE TOTAL AMOUNT OF TAX CREDITS LISTED ON CERTIFICATES OF TAX CREDIT ISSUED BY THE COMMISSIONER PURSUANT TO THIS ARTICLE MAY NOT EXCEED THIRTY-FIVE MILLION DOLLARS. § 2. The tax law is amended by adding a new section 46 to read as follows: § 46. RESTAURANT RETURN-TO-WORK TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP- TER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN SUBDIVISION (F) OF THIS SECTION. THE AMOUNT OF THE CREDIT IS EQUAL TO THE AMOUNT DETERMINED PURSUANT TO SECTION FOUR HUNDRED SEVENTY-FIVE OF THE ECONOMIC DEVELOPMENT LAW. NO COST OR EXPENSE PAID OR INCURRED BY THE TAXPAYER WHICH IS INCLUDED AS PART OF THE CALCU- LATION OF THIS CREDIT SHALL BE THE BASIS OF ANY OTHER TAX CREDIT ALLOWED UNDER THIS CHAPTER. (B) ELIGIBILITY. TO BE ELIGIBLE FOR THE RESTAURANT RETURN-TO-WORK TAX CREDIT, THE TAXPAYER SHALL HAVE BEEN ISSUED A CERTIFICATE OF TAX CREDIT BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO SUBDIVISION TWO OF SECTION FOUR HUNDRED SEVENTY-FOUR OF THE ECONOMIC DEVELOPMENT LAW, WHICH CERTIFICATE SHALL SET FORTH THE AMOUNT OF THE CREDIT THAT MAY BE CLAIMED FOR THE TAXABLE YEAR. THE TAXPAYER SHALL BE ALLOWED TO CLAIM ONLY THE AMOUNT LISTED ON THE CERTIFICATE OF TAX CREDIT FOR THAT TAXABLE YEAR. A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED LIABIL- ITY COMPANY OR SHAREHOLDER IN A SUBCHAPTER S CORPORATION THAT HAS RECEIVED A CERTIFICATE OF TAX CREDIT SHALL BE ALLOWED ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY OR SUBCHAPTER S CORPORATION. (C) TAX RETURN REQUIREMENT AND ADVANCE PAYMENT OPTION. (1) THE TAXPAY- ER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN IN THE FORM PRESCRIBED BY THE COMMISSIONER, PROOF OF RECEIPT OF ITS CERTIFICATE OF TAX CREDIT ISSUED BY THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT. (2) TAXPAYERS WHO CHOOSE TO USE AUGUST THIRTY-FIRST, TWO THOUSAND TWENTY-ONE AS THE LAST DATE TO CALCULATE THEIR AVERAGE ENDING FULL-TIME EMPLOYMENT AND HAVE RECEIVED THEIR CERTIFICATE OF TAX CREDIT BY NOVEMBER FIFTEENTH, TWO THOUSAND TWENTY-ONE SHALL HAVE THE OPTION TO REQUEST AN ADVANCE PAYMENT OF THE AMOUNT OF TAX CREDIT THEY ARE ALLOWED UNDER THIS SECTION. A TAXPAYER MUST SUBMIT SUCH REQUEST TO THE DEPARTMENT IN THE MANNER PRESCRIBED BY THE COMMISSIONER AFTER IT HAS BEEN ISSUED A CERTIF- ICATE OF TAX CREDIT BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO SUBDIVISION TWO OF SECTION FOUR HUNDRED SEVENTY-FOUR OF THE ECONOMIC DEVELOPMENT LAW (OR SUCH CERTIFICATE HAS BEEN ISSUED TO A PARTNERSHIP, S. 2509--C 97 A. 3009--C LIMITED LIABILITY COMPANY OR SUBCHAPTER S CORPORATION IN WHICH IT IS A PARTNER, MEMBER OR SHAREHOLDER, RESPECTIVELY), BUT SUCH REQUEST MUST BE SUBMITTED NO LATER THAN NOVEMBER FIFTEENTH, TWO THOUSAND TWENTY-ONE. FOR THOSE TAXPAYERS WHO HAVE REQUESTED AN ADVANCE PAYMENT AND FOR WHOM THE COMMISSIONER HAS DETERMINED ELIGIBLE FOR THIS CREDIT, THE COMMISSIONER SHALL ADVANCE A PAYMENT OF THE TAX CREDIT ALLOWED TO THE TAXPAYER. HOWEVER, IN THE CASE OF A TAXPAYER SUBJECT TO ARTICLE NINE-A OF THIS CHAPTER, SUCH PAYMENT SHALL BE EQUAL TO THE AMOUNT OF CREDIT ALLOWED TO THE TAXPAYER LESS TWENTY-FIVE DOLLARS. SUCH TWENTY-FIVE DOLLARS SHALL REPRESENT A PARTIAL PAYMENT OF TAX OWED BY THE TAXPAYER UNDER ARTICLE NINE-A, INCLUDING ANY FIXED DOLLAR MINIMUM OWED UNDER PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER. WHEN A TAXPAYER FILES ITS RETURN FOR THE TAXABLE YEAR, SUCH TAXPAYER SHALL PROPERLY RECONCILE THE ADVANCE PAYMENT AND ANY PARTIAL PAYMENT OF FIXED DOLLAR MINIMUM TAX, IF APPLICABLE, ON THE TAXPAYER'S RETURN. (D) INFORMATION SHARING. NOTWITHSTANDING ANY PROVISION OF THIS CHAP- TER, EMPLOYEES OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPART- MENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE: (1) INFORMATION DERIVED FROM TAX RETURNS OR REPORTS THAT IS RELEVANT TO A TAXPAYER'S ELIGIBILITY TO PARTICIPATE IN THE RESTAURANT RETURN-TO- WORK TAX CREDIT PROGRAM; (2) INFORMATION REGARDING THE CREDIT APPLIED FOR, ALLOWED OR CLAIMED PURSUANT TO THIS SECTION AND TAXPAYERS THAT ARE APPLYING FOR THE CREDIT OR THAT ARE CLAIMING THE CREDIT; AND (3) INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM FORMS SUBMITTED TO THE DEPARTMENT AND APPLICATIONS FOR ADMISSION INTO THE RESTAURANT RETURN-TO-WORK TAX CREDIT PROGRAM. EXCEPT AS PROVIDED IN PARAGRAPH TWO OF THIS SUBDIVISION, ALL INFORMATION EXCHANGED BETWEEN THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT SHALL NOT BE SUBJECT TO DISCLOSURE OR INSPECTION UNDER THE STATE'S FREEDOM OF INFOR- MATION LAW. (E) CREDIT RECAPTURE. IF A CERTIFICATE OF TAX CREDIT ISSUED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT UNDER ARTICLE TWENTY-FIVE OF THE ECONOMIC DEVELOPMENT LAW IS REVOKED BY SUCH DEPARTMENT, THE AMOUNT OF CREDIT DESCRIBED IN THIS SECTION AND CLAIMED BY THE TAXPAYER PRIOR TO THAT REVOCATION SHALL BE ADDED BACK TO TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCATION BECOMES FINAL. (F) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 56; (2) ARTICLE 22: SECTION 606, SUBSECTION (LLL). § 3. Section 210-B of the tax law is amended by adding a new subdivi- sion 56 to read as follows: 56. RESTAURANT RETURN-TO-WORK TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SIX OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS ARTICLE. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CRED- ITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOU- S. 2509--C 98 A. 3009--C SAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON. § 4. Section 606 of the tax law is amended by adding a new subsection (lll) to read as follows: (LLL) RESTAURANT RETURN-TO-WORK TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SIX OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI- CLE. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR THE TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT- ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE PAID THEREON. § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlvii) to read as follows: (XLVII) RESTAURANT RETURN-TO-WORK AMOUNT OF CREDIT UNDER TAX CREDIT SUBDIVISION FIFTY-SIX OF SECTION TWO HUNDRED TEN-B § 6. This act shall take effect immediately. SUBPART B Section 1. The tax law is amended by adding a new section 24-c to read as follows: § 24-C. NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION TAX CREDIT. (A) (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS A QUALIFIED NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION COMPANY, OR IS A SOLE PROPRIETOR OF OR A MEMBER OF A PARTNERSHIP THAT IS A QUALIFIED NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION COMPANY, AND THAT IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS REFERRED TO IN SUBDIVISION (D) OF THIS SECTION, AND TO BE COMPUTED AS PROVIDED IN THIS SECTION. (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 TWENTY-FIVE PERCENT AND THE SUM OF THE QUALIFIED PRODUCTION EXPENDITURES PAID FOR DURING THE QUALIFIED NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION'S CREDIT PERIOD. PROVIDED HOWEVER THAT THE AMOUNT OF THE CREDIT CANNOT EXCEED THREE MILLION DOLLARS PER QUALIFIED NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION FOR PRODUCTIONS WHOSE FIRST PERFORMANCE IS DURING THE FIRST YEAR IN WHICH APPLICATIONS ARE ACCEPTED. FOR PRODUCTIONS WHOSE FIRST PERFORMANCE IS DURING THE SECOND YEAR IN WHICH APPLICATIONS ARE ACCEPTED, SUCH CAP SHALL DECREASE TO ONE MILLION FIVE HUNDRED THOUSAND DOLLARS PER QUALIFIED NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION UNLESS THE NEW YORK CITY TOURISM ECONOMY HAS NOT SUFFICIENTLY RECOVERED, AS DETERMINED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT IN CONSULTATION WITH THE DIVISION OF THE BUDGET. IN DETERMINING WHETHER THE NEW YORK CITY TOURISM ECONOMY HAS SUFFICIENTLY RECOVERED, THE DEPARTMENT OF ECONOMIC DEVELOPMENT WILL PERFORM AN ANALYSIS OF KEY NEW YORK CITY ECONOMIC INDICATORS WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, HOTEL OCCUPANCY RATES AND TRAVEL METRICS. THE DEPARTMENT OF ECONOMIC DEVELOP- MENT'S ANALYSIS SHALL ALSO BE INFORMED BY THE STATUS OF ANY REMAINING COVID-19 RESTRICTIONS AFFECTING NEW YORK CITY MUSICAL AND THEATRICAL S. 2509--C 99 A. 3009--C PRODUCTIONS. IN NO EVENT SHALL A QUALIFIED NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION BE ELIGIBLE FOR MORE THAN ONE CREDIT UNDER THIS PROGRAM. (3) NO QUALIFIED PRODUCTION EXPENDITURES USED BY A TAXPAYER EITHER AS THE BASIS FOR THE ALLOWANCE OF THE CREDIT PROVIDED PURSUANT TO THIS SECTION OR USED IN THE CALCULATION OF THE CREDIT PROVIDED PURSUANT TO THIS SECTION SHALL BE USED BY SUCH TAXPAYER TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER. (B) DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (1) "QUALIFIED MUSICAL AND THEATRICAL PRODUCTION" MEANS A FOR-PROFIT LIVE, DRAMATIC STAGE PRESENTATION THAT, IN ITS ORIGINAL OR ADAPTIVE VERSION, IS PERFORMED IN A QUALIFIED NEW YORK CITY PRODUCTION FACILITY, WHETHER OR NOT SUCH PRODUCTION WAS PERFORMED IN A QUALIFIED NEW YORK CITY PRODUCTION FACILITY PRIOR TO THE STATE DISASTER EMERGENCY PURSUANT TO EXECUTIVE ORDER TWO HUNDRED TWO OF TWO THOUSAND TWENTY. (2) "QUALIFIED PRODUCTION EXPENDITURE" MEANS ANY COSTS FOR TANGIBLE PROPERTY USED AND SERVICES PERFORMED DIRECTLY AND PREDOMINANTLY IN THE PRODUCTION OF A QUALIFIED MUSICAL AND THEATRICAL PRODUCTION WITHIN THE STATE OF NEW YORK, INCLUDING: (I) EXPENDITURES FOR DESIGN, CONSTRUCTION AND OPERATION, INCLUDING SETS, SPECIAL AND VISUAL EFFECTS, COSTUMES, WARDROBES, MAKE-UP, ACCESSORIES AND COSTS ASSOCIATED WITH SOUND, LIGHT- ING, AND STAGING; (II) ALL SALARIES, WAGES, FEES, AND OTHER COMPENSATION INCLUDING RELATED BENEFITS FOR SERVICES PERFORMED OF WHICH THE TOTAL ALLOWABLE EXPENSE SHALL NOT EXCEED TWO HUNDRED THOUSAND DOLLARS PER WEEK; AND (III) TECHNICAL AND CREW PRODUCTION COSTS, SUCH AS EXPENDI- TURES FOR A QUALIFIED NEW YORK CITY PRODUCTION FACILITY, OR ANY PART THEREOF, PROPS, MAKE-UP, WARDROBE, COSTUMES, EQUIPMENT USED FOR SPECIAL AND VISUAL EFFECTS, SOUND RECORDING, SET CONSTRUCTION, AND LIGHTING. QUALIFIED PRODUCTION EXPENDITURE DOES NOT INCLUDE ANY COSTS INCURRED PRIOR TO THE CREDIT PERIOD OF A QUALIFIED NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION COMPANY. (3) "QUALIFIED NEW YORK CITY PRODUCTION FACILITY" MEANS A FACILITY LOCATED WITHIN THE CITY OF NEW YORK (I) IN WHICH LIVE THEATRICAL PRODUCTIONS ARE OR ARE INTENDED TO BE PRIMARILY PRESENTED, (II) THAT CONTAINS AT LEAST ONE STAGE, A SEATING CAPACITY OF FIVE HUNDRED OR MORE SEATS, AND DRESSING ROOMS, STORAGE AREAS, AND OTHER ANCILLARY AMENITIES NECESSARY FOR THE QUALIFIED MUSICAL AND THEATRICAL PRODUCTION, AND (III) FOR WHICH RECEIPTS ATTRIBUTABLE TO TICKET SALES CONSTITUTE SEVENTY-FIVE PERCENT OR MORE OF GROSS RECEIPTS OF THE FACILITY. (4) "QUALIFIED NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION COMPA- NY" IS A CORPORATION, PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL WHICH OR WHO IS PRINCIPALLY ENGAGED IN THE PRODUCTION OF A QUALIFIED MUSICAL OR THEATRICAL PRODUCTION THAT IS TO BE PERFORMED IN A QUALIFIED NEW YORK CITY PRODUCTION FACILITY. (5) (I) "THE CREDIT PERIOD OF A QUALIFIED NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION COMPANY" IS THE PERIOD STARTING ON THE PRODUCTION START DATE AND ENDING ON THE EARLIER OF THE DATE THE QUALIFIED MUSICAL AND THEATRICAL PRODUCTION HAS EXPENDED SUFFICIENT QUALIFIED PRODUCTION EXPENDITURES TO REACH ITS CREDIT CAP, MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-THREE OR THE DATE THE QUALIFIED MUSICAL AND THEATRICAL PRODUCTION CLOSES. (II) "THE PRODUCTION START DATE" IS THE DATE THAT IS UP TO TWELVE WEEKS PRIOR TO THE FIRST PERFORMANCE OF THE QUALIFIED MUSICAL AND THEAT- RICAL PRODUCTION. S. 2509--C 100 A. 3009--C (C) THE CREDIT SHALL BE ALLOWED FOR THE TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE BUT BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-FOUR. A QUALIFIED NEW YORK CITY MUSICAL AND THEAT- RICAL PRODUCTION COMPANY SHALL CLAIM THE CREDIT IN THE YEAR IN WHICH ITS CREDIT PERIOD ENDS. (D) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 57; (2) ARTICLE 22: SECTION 606: SUBSECTION (MMM). (E) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, (I) EMPLOYEES AND OFFICERS OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT SHALL BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE INFORMATION REGARDING THE CREDITS APPLIED FOR, ALLOWED, OR CLAIMED PURSUANT TO THIS SECTION AND TAXPAYERS WHO ARE APPLYING FOR CREDITS OR WHO ARE CLAIMING CREDITS, INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM FORMS SUBMITTED TO THE DEPARTMENT AND APPLICATIONS FOR CERTIFICATION SUBMITTED TO THE DEPARTMENT OF ECONOMIC DEVELOPMENT, AND (II) THE COMMISSIONER AND THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOP- MENT MAY RELEASE THE NAMES AND ADDRESSES OF ANY QUALIFIED NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION COMPANY ENTITLED TO CLAIM THIS CREDIT AND THE AMOUNT OF THE CREDIT EARNED BY SUCH COMPANY. (F) MAXIMUM AMOUNT OF CREDITS. (1) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED UNDER THIS SECTION, SUBDIVISION FIFTY-SEVEN OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (MMM) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER SHALL BE ONE HUNDRED MILLION DOLLARS. SUCH AGGREGATE AMOUNT OF CREDITS SHALL BE ALLOCATED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT AMONG TAXPAYERS BASED ON THE DATE OF FIRST PERFORMANCE OF THE QUALIFIED MUSICAL AND THEATRICAL PRODUCTION. (2) THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AFTER CONSULTING WITH THE COMMISSIONER, SHALL PROMULGATE REGULATIONS TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF TAX CREDITS AS REQUIRED BY THIS SECTION. SUCH RULES AND REGULATIONS SHALL INCLUDE PROVISIONS DESCRIBING THE APPLICA- TION PROCESS, THE DUE DATES FOR SUCH APPLICATIONS, THE STANDARDS THAT WILL BE USED TO EVALUATE THE APPLICATIONS, THE DOCUMENTATION THAT WILL BE PROVIDED BY APPLICANTS TO SUBSTANTIATE TO THE DEPARTMENT THE AMOUNT OF QUALIFIED PRODUCTION EXPENDITURES OF SUCH APPLICANTS, AND SUCH OTHER PROVISIONS AS DEEMED NECESSARY AND APPROPRIATE. NOTWITHSTANDING ANY OTHER PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, SUCH RULES AND REGULATIONS MAY BE ADOPTED ON AN EMERGENCY BASIS. IN NO EVENT SHALL A QUALIFIED NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION SUBMIT AN APPLICATION FOR THIS PROGRAM AFTER DECEMBER THIR- TY-FIRST, TWO THOUSAND TWENTY-TWO. (G) ANY QUALIFIED NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION COMPANY THAT PERFORMS IN A QUALIFIED NEW YORK CITY PRODUCTION FACILITY AND APPLIES TO RECEIVE A CREDIT UNDER THIS SECTION SHALL BE REQUIRED TO: (1) PARTICIPATE IN A NEW YORK STATE DIVERSITY AND ARTS JOB TRAINING PROGRAM; (2) CREATE AND IMPLEMENT A PLAN TO ENSURE THAT THEIR PRODUCTION IS AVAILABLE AND ACCESSIBLE FOR LOW-OR NO-COST TO LOW INCOME NEW YORK- ERS; AND (3) CONTRIBUTE TO THE NEW YORK STATE COUNCIL ON THE ARTS, CULTURAL PROGRAM FUND AN AMOUNT UP TO FIFTY PERCENT OF THE TOTAL CREDITS RECEIVED IF ITS PRODUCTION EARNS ONGOING REVENUE PROSPECTIVELY AFTER THE END OF THE CREDIT PERIOD THAT IS AT LEAST EQUAL TO TWO HUNDRED PERCENT OF ITS ONGOING PRODUCTION COSTS, WITH SUCH AMOUNT PAYABLE FROM TWENTY- FIVE PERCENT OF NET OPERATING PROFITS, SUCH AMOUNTS PAYABLE ON A MONTHLY BASIS, UP UNTIL SUCH FIFTY PERCENT OF THE TOTAL CREDIT AMOUNT IS S. 2509--C 101 A. 3009--C REACHED. ANY FUNDS DEPOSITED PURSUANT TO THIS SUBDIVISION MAY BE USED FOR ARTS AND CULTURAL EDUCATIONAL AND WORKFORCE DEVELOPMENT PROGRAMS. § 2. Section 210-B of the tax law is amended by adding a new subdivi- sion 57 to read as follows: 57. NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWENTY-FOUR-C OF THIS CHAPTER, AGAINST THE TAXES IMPOSED BY THIS ARTICLE. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR THE TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CRED- ITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOU- SAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. § 3. Section 606 of the tax law is amended by adding a new subsection (mmm) to read as follows: (MMM) NEW YORK CITY MUSICAL AND THEATRICAL PRODUCTION TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION TWENTY-FOUR-C OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR THE TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT- ED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlviii) to read as follows: (XLVIII) NEW YORK CITY MUSICAL AMOUNT OF CREDIT UNDER AND THEATRICAL PRODUCTION SUBDIVISION FIFTY-SEVEN OF TAX CREDIT SECTION TWO HUNDRED TEN-B § 5. The state finance law is amended by adding a new section 99-ll to read as follows: § 99-LL. NEW YORK STATE COUNCIL ON THE ARTS CULTURAL PROGRAMS FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMP- TROLLER AND COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE "NEW YORK STATE COUNCIL ON THE ARTS CULTURAL PROGRAM FUND". 2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE STATE, PURSUANT TO THE PROVISIONS OF SECTION TWENTY-FOUR-C OF THE TAX LAW AND ALL OTHER MONEYS APPROPRIATED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS SECTION SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW. 3. ON OR BEFORE THE FIRST DAY OF FEBRUARY TWO THOUSAND TWENTY-FOUR, THE EXECUTIVE DIRECTOR OF THE NEW YORK STATE COUNCIL ON THE ARTS SHALL PROVIDE A WRITTEN REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIR OF THE SENATE FINANCE COMMITTEE, THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE CHAIR OF THE SENATE S. 2509--C 102 A. 3009--C COMMITTEE ON HEALTH, THE CHAIR OF THE ASSEMBLY HEALTH COMMITTEE, THE STATE COMPTROLLER AND THE PUBLIC. SUCH REPORT SHALL INCLUDE HOW THE MONIES OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR, AND SHALL INCLUDE: (A) THE AMOUNT OF MONEY DISBURSED FROM THE FUND AND THE AWARD PROCESS USED FOR SUCH DISBURSEMENTS; (B) RECIPIENTS OF AWARDS FROM THE FUND; (C) THE AMOUNT AWARDED TO EACH; (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI- MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED- ING FISCAL YEARS, ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL YEAR. 4. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE EXECUTIVE DIRECTOR OF THE NEW YORK STATE COUNCIL ON THE ARTS. 5. THE MONEYS IN SUCH FUND SHALL BE EXPENDED FOR THE PURPOSE OF SUPPLEMENTING ART AND CULTURAL PROGRAMS FOR SECONDARY AND ELEMENTARY CHILDREN, INCLUDING PROGRAMS THAT INCREASE ACCESS TO ART AND CULTURAL PROGRAMS AND EVENTS FOR CHILDREN IN UNDERSERVED COMMUNITIES. § 6. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2021, and before January 1, 2024 and shall expire and be deemed repealed on January 1, 2024; provided, however that the obligations under paragraph 3 of subdivision g of section 24-c of the tax law, as added by section one of this act, shall remain in effect until December 31, 2025. § 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 Subparts A through B of this act shall be as specifically set forth in the last section of such Subparts. PART QQ Section 1. Paragraph 5 of subsection (a) of section 688 of the tax law, as amended by chapter 61 of the laws of 1989, is amended to read as follows: (5) Amounts of less than [one dollar] FIVE DOLLARS. No interest shall be allowed or paid if the amount thereof is less than [one dollar] FIVE DOLLARS. § 2. Paragraph 5 of subsection (a) of section 1088 of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: (5) Amounts of less than [one dollar] FIVE DOLLARS. No interest shall be allowed or paid if the amount thereof is less than [one dollar] FIVE DOLLARS. § 3. This act shall take effect immediately. PART RR S. 2509--C 103 A. 3009--C Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 44 to read as follows: (44) ANY DEATH BENEFIT, TO THE EXTENT INCLUDIBLE IN FEDERAL ADJUSTED GROSS INCOME, PAID TO THE TAXPAYER IN A LUMP SUM PURSUANT TO THE COVID- 19 FAMILY DEATH BENEFIT PROGRAM ESTABLISHED BY THE METROPOLITAN TRANS- PORTATION AUTHORITY IN TWO THOUSAND TWENTY; PROVIDED, HOWEVER, THIS SUBTRACTION SHALL NOT EXCEED FIVE HUNDRED THOUSAND DOLLARS AND SHALL NOT APPLY TO ANY BENEFIT PAYABLE UNDER SUCH PROGRAM OTHER THAN A LUMP SUM DEATH BENEFIT. § 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2020. PART SS Section 1. Subparagraph (B) of paragraph 1 of subdivision (a) of section 1115 of the tax law, as amended by section 1 of part CCC of chapter 59 of the laws of 2019, is amended to read as follows: (B) Until May thirty first, two thousand [twenty-one] TWENTY-TWO, the food and drink excluded from the exemption provided by clauses (i), (ii) and (iii) of subparagraph (A) of this paragraph, and bottled water, shall be exempt under this subparagraph when sold for one dollar and fifty cents or less through any vending machine that accepts coin or currency only or when sold for two dollars or less through any vending machine that accepts any form of payment other than coin or currency, whether or not it also accepts coin or currency. § 2. This act shall take effect immediately. PART TT Section 1. The restore mother nature bond act is enacted to read as follows: ENVIRONMENTAL BOND ACT OF 2022 "RESTORE MOTHER NATURE" Section 1. Short title. 2. Creation of state debt. 3. Bonds of the state. 4. Use of moneys received. § 1. Short title. This act shall be known and may be cited as the "environmental bond act of 2022 restore mother nature". § 2. Creation of state debt. The creation of state debt in an amount not exceeding in the aggregate three billion dollars ($3,000,000,000) is hereby authorized to provide moneys for the single purpose of making environmental improvements that preserve, enhance, and restore New York's natural resources and reduce the impact of climate change by funding capital projects for: restoration and flood risk reduction not less than one billion dollars ($1,000,000,000); open space land conser- vation and recreation up to five hundred fifty million dollars ($550,000,000); climate change mitigation up to seven hundred million dollars ($700,000,000); and, water quality improvement and resilient infrastructure not less than five hundred fifty million dollars ($550,000,000). § 3. Bonds of the state. The state comptroller is hereby authorized and empowered to issue and sell bonds of the state up to the aggregate amount of three billion dollars ($3,000,000,000) for the purposes of this act, subject to the provisions of article 5 of the state finance law. The aggregate principal amount of such bonds shall not exceed three S. 2509--C 104 A. 3009--C billion dollars ($3,000,000,000) excluding bonds issued to refund or otherwise repay bonds heretofore issued for such purpose; provided, however, that upon any such refunding or repayment, the total aggregate principal amount of outstanding bonds may be greater than three billion dollars ($3,000,000,000) only if the present value of the aggregate debt service of the refunding or repayment bonds to be issued shall not exceed the present value of the aggregate debt service of the bonds to be refunded or repaid. The method for calculating present value shall be determined by law. § 4. Use of moneys received. The moneys received by the state from the sale of bonds sold pursuant to this act shall be expended pursuant to appropriations for capital projects related to design, planning, site acquisition, demolition, construction, reconstruction, and rehabili- tation projects specified in section two of this act. § 2. This act shall take effect immediately, provided that the provisions of section one of this act shall not take effect unless and until this act shall have been submitted to the people at the general election to be held in November 2022 and shall have been approved by a majority of all votes cast for and against it at such general election. Upon approval by the people, section one of this act shall take effect immediately. The ballots to be furnished for the use of voters upon submission of this act shall be in the form prescribed by the election law and the proposition or question to be submitted shall be printed thereon in the following form, namely "To address and combat the impact of climate change and damage to the environment, the Environmental Bond Act of 2022 "Restore Mother Nature" authorizes the sale of state bonds up to three billion dollars to fund environmental protection, natural restoration, resiliency, and clean energy projects. Shall the Environ- mental Bond Act of 2022 be approved?". PART UU Section 1. The environmental conservation law is amended by adding a new article 58 to read as follows: ARTICLE 58 IMPLEMENTATION OF THE ENVIRONMENTAL BOND ACT OF 2022 "RESTORE MOTHER NATURE" TITLE 1. GENERAL PROVISIONS. 3. RESTORATION AND FLOOD RISK REDUCTION. 5. OPEN SPACE LAND CONSERVATION AND RECREATION. 7. CLIMATE CHANGE MITIGATION. 9. WATER QUALITY IMPROVEMENT AND RESILIENT INFRASTRUCTURE. 11. ENVIRONMENTAL JUSTICE AND REPORTING. TITLE 1 GENERAL PROVISIONS SECTION 58-0101. DEFINITIONS. 58-0103. ALLOCATION OF MONEYS. 58-0105. POWERS AND DUTIES. 58-0107. POWERS AND DUTIES OF A MUNICIPALITY. 58-0109. CONSISTENCY WITH FEDERAL TAX LAWS. 58-0111. COMPLIANCE WITH OTHER LAW. § 58-0101. DEFINITIONS. AS USED IN THIS ARTICLE THE FOLLOWING TERMS SHALL MEAN AND INCLUDE: S. 2509--C 105 A. 3009--C 1. "BONDS" SHALL MEAN GENERAL OBLIGATION BONDS ISSUED PURSUANT TO THE ENVIRONMENTAL BOND ACT OF 2022 "RESTORE MOTHER NATURE" IN ACCORDANCE WITH ARTICLE VII OF THE NEW YORK STATE CONSTITUTION AND ARTICLE FIVE OF THE STATE FINANCE LAW. 2. "COST" MEANS THE EXPENSE OF AN APPROVED PROJECT, WHICH SHALL INCLUDE BUT NOT BE LIMITED TO APPRAISAL, SURVEYING, PLANNING, ENGINEER- ING AND ARCHITECTURAL SERVICES, PLANS AND SPECIFICATIONS, CONSULTANT AND LEGAL SERVICES, SITE PREPARATION, DEMOLITION, CONSTRUCTION AND OTHER DIRECT EXPENSES INCIDENT TO SUCH PROJECT. 3. "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF ENVIRONMENTAL CONSERVA- TION. 4. "ENDANGERED OR THREATENED SPECIES PROJECT" MEANS A PROJECT TO RESTORE, RECOVER, OR REINTRODUCE AN ENDANGERED, THREATENED, OR SPECIES OF SPECIAL CONCERN PURSUANT TO A RECOVERY PLAN OR RESTORATION PLAN PREPARED AND ADOPTED BY THE DEPARTMENT, INCLUDING BUT NOT LIMITED TO THE STATE'S WILDLIFE ACTION PLAN. 5. "ENVIRONMENTAL JUSTICE COMMUNITY" MEANS A MINORITY OR LOW-INCOME COMMUNITY THAT MAY BEAR A DISPROPORTIONATE SHARE OF THE NEGATIVE ENVI- RONMENTAL CONSEQUENCES RESULTING FROM INDUSTRIAL, MUNICIPAL, AND COMMER- CIAL OPERATIONS OR THE EXECUTION OF FEDERAL, STATE, LOCAL, AND TRIBAL PROGRAMS AND POLICIES. 6. "FLOOD RISK REDUCTION PROJECT" MEANS PROJECTS THAT USE NATURE-BASED SOLUTIONS WHERE POSSIBLE TO REDUCE EROSION OR FLOODING, AND PROJECTS WHICH MITIGATE OR ADAPT TO FLOOD CONDITIONS. 7. "GREEN BUILDINGS PROJECT" MEANS (I) INSTALLING, UPGRADING, OR MODI- FYING A RENEWABLE ENERGY SOURCE AT A STATE-OWNED BUILDING OR FOR THE PURPOSE OF CONVERTING OR CONNECTING A STATE-OWNED BUILDING, OR PORTION THEREOF, TO A RENEWABLE ENERGY SOURCE; (II) REDUCING ENERGY USE OR IMPROVING ENERGY EFFICIENCY OR OCCUPANT HEALTH AT A STATE-OWNED BUILD- ING; (III) INSTALLING A GREEN ROOF AT A STATE-OWNED BUILDING; AND (IV) EMISSION REDUCTION PROJECTS. 8. "MUNICIPALITY" MEANS A LOCAL PUBLIC AUTHORITY OR PUBLIC BENEFIT CORPORATION, A COUNTY, CITY, TOWN, VILLAGE, SCHOOL DISTRICT, SUPERVISORY DISTRICT, DISTRICT CORPORATION, IMPROVEMENT DISTRICT WITHIN A COUNTY, CITY, TOWN OR VILLAGE, OR INDIAN NATION OR TRIBE RECOGNIZED BY THE STATE OR THE UNITED STATES WITH A RESERVATION WHOLLY OR PARTLY WITHIN THE BOUNDARIES OF NEW YORK STATE, OR ANY COMBINATION THEREOF. 9. "NATURE-BASED SOLUTION" MEANS PROJECTS THAT ARE SUPPORTED OR INSPIRED BY NATURE OR NATURAL PROCESSES AND FUNCTIONS AND THAT MAY ALSO OFFER ENVIRONMENTAL, ECONOMIC, AND SOCIAL BENEFITS, WHILE INCREASING RESILIENCE. NATURE-BASED SOLUTIONS INCLUDE BOTH GREEN AND NATURAL INFRASTRUCTURE. 10. "OPEN SPACE LAND CONSERVATION PROJECT" MEANS PURCHASE OF FEE TITLE OR CONSERVATION EASEMENTS FOR THE PURPOSE OF PROTECTING LANDS OR WATERS AND/OR PROVIDING RECREATIONAL OPPORTUNITIES FOR THE PUBLIC THAT (I) POSSESS ECOLOGICAL, HABITAT, RECREATIONAL OR SCENIC VALUES; (II) PROTECT THE QUALITY OF A DRINKING WATER SUPPLY; (III) PROVIDE FLOOD CONTROL OR FLOOD MITIGATION VALUES; (IV) CONSTITUTE A FLOODPLAIN; (V) PROVIDE OR HAVE THE POTENTIAL TO PROVIDE IMPORTANT HABITAT CONNECTIVITY; (VI) PROVIDE OPEN SPACE FOR THE USE AND ENJOYMENT OF THE PUBLIC; OR (VII) PROVIDE COMMUNITY GARDENS IN URBAN AREAS. 11. "RECREATIONAL INFRASTRUCTURE PROJECT" MEANS THE DEVELOPMENT OR IMPROVEMENT OF STATE AND MUNICIPAL PARKS, CAMPGROUNDS, NATURE CENTERS, FISH HATCHERIES, AND INFRASTRUCTURE ASSOCIATED WITH OPEN SPACE LAND CONSERVATION PROJECTS. S. 2509--C 106 A. 3009--C 12. "STATE ASSISTANCE PAYMENT" MEANS PAYMENT OF THE STATE SHARE OF THE COST OF PROJECTS AUTHORIZED BY THIS ARTICLE TO PRESERVE, ENHANCE, RESTORE AND IMPROVE THE QUALITY OF THE STATE'S ENVIRONMENT. 13. "STATE ENTITY" MEANS ANY STATE DEPARTMENT, DIVISION, AGENCY, OFFICE, PUBLIC AUTHORITY, OR PUBLIC BENEFIT CORPORATION. 14. "WATER QUALITY IMPROVEMENT PROJECT" FOR THE PURPOSES OF THIS TITLE, MEANS PROJECTS DESIGNED TO IMPROVE THE QUALITY OF DRINKING AND SURFACE WATERS. 15. "WETLAND AND STREAM RESTORATION PROJECT" MEANS ACTIVITIES DESIGNED TO RESTORE FRESHWATER AND TIDAL WETLANDS, AND STREAMS OF THE STATE, FOR THE PURPOSE OF ENHANCING HABITAT, INCREASING CONNECTIVITY, IMPROVING WATER QUALITY, AND FLOOD RISK REDUCTION. § 58-0103. ALLOCATION OF MONEYS. THE MONEYS RECEIVED BY THE STATE FROM THE SALE OF BONDS PURSUANT TO THE ENVIRONMENTAL BOND ACT OF 2022 SHALL BE DISBURSED IN THE FOLLOWING AMOUNTS PURSUANT TO APPROPRIATIONS AS SPECIFICALLY PROVIDED FOR IN TITLES THREE, FIVE, SEVEN, AND NINE OF THIS ARTICLE: 1. NOT LESS THAN ONE BILLION DOLLARS ($1,000,000,000) FOR RESTORATION AND FLOOD RISK REDUCTION AS SET FORTH IN TITLE THREE OF THIS ARTICLE. 2. UP TO FIVE HUNDRED FIFTY MILLION DOLLARS ($550,000,000) FOR OPEN SPACE LAND CONSERVATION AND RECREATION AS SET FORTH IN TITLE FIVE OF THIS ARTICLE. 3. UP TO SEVEN HUNDRED MILLION DOLLARS ($700,000,000) FOR CLIMATE CHANGE MITIGATION AS SET FORTH IN TITLE SEVEN OF THIS ARTICLE. 4. NOT LESS THAN FIVE HUNDRED FIFTY MILLION DOLLARS ($550,000,000) FOR WATER QUALITY IMPROVEMENT AND RESILIENT INFRASTRUCTURE AS SET FORTH IN TITLE NINE OF THIS ARTICLE. § 58-0105. POWERS AND DUTIES. IN IMPLEMENTING THE PROVISIONS OF THIS ARTICLE THE DEPARTMENT IS HERE- BY AUTHORIZED TO: 1. ADMINISTER FUNDS GENERATED PURSUANT TO THE ENVIRONMENTAL BOND ACT OF 2022 "RESTORE MOTHER NATURE". 2. IN THE NAME OF THE STATE, AS FURTHER PROVIDED WITHIN THIS ARTICLE, CONTRACT TO MAKE, WITHIN THE LIMITATIONS OF APPROPRIATIONS AVAILABLE THEREFOR, STATE ASSISTANCE PAYMENTS TOWARD THE COST OF A PROJECT APPROVED, AND TO BE UNDERTAKEN PURSUANT TO THIS ARTICLE. 3. APPROVE VOUCHERS FOR THE PAYMENTS PURSUANT TO AN APPROVED CONTRACT. 4. ENTER INTO CONTRACTS WITH ANY PERSON, FIRM, CORPORATION, NOT-FOR- PROFIT CORPORATION, AGENCY OR OTHER ENTITY, PRIVATE OR GOVERNMENTAL, FOR THE PURPOSE OF EFFECTUATING THE PROVISIONS OF THIS ARTICLE. 5. PROMULGATE SUCH RULES AND REGULATIONS AND TO DEVELOP SUCH FORMS AND PROCEDURES NECESSARY TO EFFECTUATE THE PROVISIONS OF THIS ARTICLE, INCLUDING BUT NOT LIMITED TO REQUIREMENTS FOR THE FORM, CONTENT, AND SUBMISSION OF APPLICATIONS BY MUNICIPALITIES FOR STATE FINANCIAL ASSIST- ANCE. 6. DELEGATE TO, OR COOPERATE WITH, ANY OTHER STATE ENTITY IN THE ADMINISTRATION OF THIS ARTICLE. 7. PERFORM SUCH OTHER AND FURTHER ACTS AS MAY BE NECESSARY, PROPER OR DESIRABLE TO CARRY OUT THE PROVISIONS OF THIS ARTICLE. § 58-0107. POWERS AND DUTIES OF A MUNICIPALITY. A MUNICIPALITY SHALL HAVE THE POWER AND AUTHORITY TO: 1. UNDERTAKE AND CARRY OUT ANY PROJECT FOR WHICH STATE ASSISTANCE PAYMENTS PURSUANT TO CONTRACT ARE RECEIVED OR ARE TO BE RECEIVED PURSU- ANT TO THIS ARTICLE AND MAINTAIN AND OPERATE SUCH PROJECT. 2. EXPEND MONEY RECEIVED FROM THE STATE PURSUANT TO THIS ARTICLE FOR COSTS INCURRED IN CONJUNCTION WITH THE APPROVED PROJECT. S. 2509--C 107 A. 3009--C 3. APPLY FOR AND RECEIVE MONEYS FROM THE STATE FOR THE PURPOSE OF ACCOMPLISHING PROJECTS UNDERTAKEN OR TO BE UNDERTAKEN PURSUANT TO THIS ARTICLE. 4. PERFORM SUCH OTHER AND FURTHER ACTS AS MAY BE NECESSARY, PROPER OR DESIRABLE TO CARRY OUT A PROJECT OR OBLIGATION, DUTY OR FUNCTION RELATED THERETO. § 58-0109. CONSISTENCY WITH FEDERAL TAX LAW. ALL ACTIONS UNDERTAKEN PURSUANT TO THIS ARTICLE SHALL BE REVIEWED FOR CONSISTENCY WITH PROVISIONS OF THE FEDERAL INTERNAL REVENUE CODE AND REGULATIONS THEREUNDER, IN ACCORDANCE WITH PROCEDURES ESTABLISHED IN CONNECTION WITH THE ISSUANCE OF ANY TAX EXEMPT BONDS PURSUANT TO THIS ARTICLE, TO PRESERVE THE TAX EXEMPT STATUS OF SUCH BONDS. § 58-0111. COMPLIANCE WITH OTHER LAW. EVERY RECIPIENT OF FUNDS TO BE MADE AVAILABLE PURSUANT TO THIS ARTICLE SHALL COMPLY WITH ALL APPLICABLE STATE, FEDERAL AND LOCAL LAWS. TITLE 3 RESTORATION AND FLOOD RISK REDUCTION SECTION 58-0301. ALLOCATION OF MONEYS. 58-0303.PROGRAMS, PLANS AND PROJECTS. § 58-0301. ALLOCATION OF MONEYS. OF THE MONEYS RECEIVED BY THE STATE FROM THE SALE OF BONDS PURSUANT TO THE ENVIRONMENTAL BOND ACT OF 2022, NOT LESS THAN ONE BILLION DOLLARS ($1,000,000,000) SHALL BE AVAILABLE FOR DISBURSEMENTS FOR RESTORATION AND FLOOD RISK REDUCTION PROJECTS DEVELOPED PURSUANT TO SECTION 58-0303 OF THIS TITLE. NOT MORE THAN TWO HUNDRED FIFTY MILLION DOLLARS ($250,000,000) OF THIS AMOUNT SHALL BE AVAILABLE FOR PROJECTS PURSUANT TO SUBDIVISION TWO OF SECTION 58-0303 OF THIS TITLE AND NOT LESS THAN ONE HUNDRED MILLION DOLLARS ($100,000,000) EACH SHALL BE AVAILABLE FOR COASTAL REHABILITATION AND SHORELINE RESTORATION PROJECTS AND PROJECTS WHICH ADDRESS INLAND FLOODING, PURSUANT TO PARAGRAPH A OF SUBDIVISION ONE OF SECTION 58-0303 OF THIS TITLE. § 58-0303. PROGRAMS, PLANS AND PROJECTS. 1. ELIGIBLE RESTORATION AND FLOOD RISK REDUCTION PROJECTS INCLUDE, BUT ARE NOT LIMITED TO COSTS ASSOCIATED WITH: A. (1) PROJECTS IDENTIFIED IN STATE AND REGIONAL MANAGEMENT AND RESTO- RATION PROGRAMS AND PLANS INCLUDING BUT NOT LIMITED TO THE GREAT LAKES ACTION AGENDA, MOHAWK RIVER BASIN ACTION AGENDA, OCEAN ACTION PLAN, HUDSON RIVER ESTUARY ACTION AGENDA, LONG ISLAND SOUND COMPREHENSIVE CONSERVATION AND MANAGEMENT PLAN, SOUTH SHORE ESTUARY RESERVE COMPREHEN- SIVE MANAGEMENT PLAN, PECONIC ESTUARY COMPREHENSIVE CONSERVATION AND MANAGEMENT PLAN, DELAWARE ACTION PLAN, SUSQUEHANNA ACTION PLAN, FOREST MANAGEMENT FRAMEWORK FOR NEW YORK CITY AND NEW YORK/NEW JERSEY HARBOR ESTUARY PLAN; (2) LOCAL WATERFRONT REVITALIZATION PLANS PREPARED PURSUANT TO ARTICLE FORTY-TWO OF THE EXECUTIVE LAW; AND (3) COASTAL REHABILITATION AND SHORELINE RESTORATION PROJECTS, INCLUD- ING NATURE-BASED SOLUTIONS; B. FLOOD RISK REDUCTION PROJECTS INCLUDING BUT NOT LIMITED TO: ACQUI- SITION OF REAL PROPERTY; MOVING, LIFTING OR RAISING OF EXISTING FLOOD- PRONE INFRASTRUCTURE OR STRUCTURES; RELOCATION, REPAIR, OR RAISING OF FLOOD-PRONE OR REPEATEDLY FLOODED ROADWAYS; AND PROJECTS TO REMOVE, ALTER, OR RIGHT-SIZE DAMS, BRIDGES, AND CULVERTS, BUT SHALL NOT INCLUDE ROUTINE CONSTRUCTION OR MAINTENANCE UNDERTAKEN BY THE STATE AND MUNICI- PALITIES WHICH DOES NOT PROVIDE FLOOD RISK REDUCTION BENEFITS; AND C. RESTORATION PROJECTS INCLUDING BUT NOT LIMITED TO: FLOODPLAIN, WETLAND AND STREAM RESTORATION PROJECTS; FOREST CONSERVATION; ENDANGERED S. 2509--C 108 A. 3009--C AND THREATENED SPECIES PROJECTS; AND HABITAT RESTORATION PROJECTS, INCLUDING ACQUISITION OF FEE TITLE AND EASEMENTS, INTENDED TO IMPROVE THE LANDS AND WATERS OF THE STATE OF ECOLOGICAL SIGNIFICANCE OR ANY PART THEREOF, INCLUDING, BUT NOT LIMITED TO FORESTS, PONDS, BOGS, WETLANDS, BAYS, SOUNDS, STREAMS, RIVERS, OR LAKES AND SHORELINES THEREOF, TO SUPPORT A SPAWNING, NURSERY, WINTERING, MIGRATORY, NESTING, BREEDING, FEEDING, OR FORAGING ENVIRONMENT FOR FISH AND WILDLIFE AND OTHER BIOTA. 2. THE COMMISSIONER AND THE COMMISSIONER OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL ARE AUTHORIZED PURSUANT TO PARAGRAPH B OF SUBDIVI- SION ONE OF THIS SECTION TO PURCHASE PRIVATE REAL PROPERTY IDENTIFIED AS AT-RISK TO FLOODING, FROM WILLING SELLERS. THE COMMISSIONER OF THE DIVI- SION OF HOUSING AND COMMUNITY RENEWAL SHALL BE AUTHORIZED TO TRANSFER TO ANY STATE AGENCY OR PUBLIC AUTHORITY ANY REAL PROPERTY IN ORDER TO CARRY OUT THE PURPOSES OF THIS ARTICLE. IN CONNECTION THEREWITH, THE HOUSING TRUST FUND CORPORATION SHALL BE AUTHORIZED TO CREATE A SUBSIDIARY CORPO- RATION TO CARRY OUT THE PROGRAM AUTHORIZED UNDER THIS SUBDIVISION. SUCH SUBSIDIARY CORPORATION SHALL HAVE ALL THE PRIVILEGES, IMMUNITIES, TAX EXEMPTION AND OTHER EXEMPTIONS OF THE AGENCY TO THE EXTENT THE SAME ARE NOT INCONSISTENT WITH THIS SECTION. A. THE COMMISSIONER AND THE COMMISSIONER OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OR ANY OTHER DEPARTMENT OR STATE AGENCY THAT HAS RECEIVED FUNDS SUBALLOCATED PURSUANT TO THIS SECTION MAY ENTER INTO AGREEMENTS WITH MUNICIPALITIES, AND NOT-FOR-PROFIT CORPORATIONS FOR THE PURPOSE OF IMPLEMENTING A PROGRAM PURSUANT TO THIS SECTION. B. THE DEPARTMENT AND THE DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL PRIORITIZE PROJECTS IN COMMUNITIES BASED ON PAST FLOOD RISK OR THOSE THAT PARTICIPATE IN THE FEDERAL EMERGENCY MANAGEMENT AGENCY'S (FEMA) COMMUNITY RATING SYSTEM. C. ANY STATE AGENCY OR AUTHORITY, MUNICIPALITY, OR NOT-FOR-PROFIT CORPORATION PURCHASING PRIVATE REAL PROPERTY MAY EXPEND COSTS ASSOCIATED WITH: (1) THE ACQUISITION OF REAL PROPERTY, BASED UPON THE PRE-FLOOD FAIR MARKET VALUE OF THE SUBJECT PROPERTY; (2) THE DEMOLITION AND REMOVAL OF STRUCTURES AND/OR INFRASTRUCTURE ON THE PROPERTY; AND (3) THE RESTORATION OF NATURAL RESOURCES TO FACILITATE BENEFICIAL OPEN SPACE, FLOOD MITIGATION, AND/OR SHORELINE STABILIZATION. D. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ANY STRUCTURE WHICH IS LOCATED ON REAL PROPERTY PURCHASED PURSUANT TO THIS PROGRAM SHALL BE DEMOLISHED OR REMOVED, PROVIDED THAT IT DOES NOT SERVE A USE OR PURPOSE CONSISTENT WITH PARAGRAPH F OF THIS SUBDIVISION. E. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, REAL PROPERTY PURCHASED WITH FUNDING PURSUANT TO THIS PROGRAM SHALL BE PROPERTY OF THE STATE, MUNICIPALITY, OR A NOT-FOR-PROFIT CORPORATION. F. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, REAL PROPERTY PURCHASED WITH FUNDING PURSUANT TO THIS PROGRAM SHALL BE RESTORED AND MAINTAINED IN PERPETUITY IN A MANNER THAT, AIMS TO INCREASE ECOSYSTEM FUNCTION, PROVIDE ADDITIONAL FLOOD DAMAGE MITIGATION FOR SURROUNDING PROPERTIES, PROTECT WILDLIFE HABITAT, AND WHEREVER PRACTICABLE AND SAFE, ALLOW FOR PASSIVE AND/OR RECREATIONAL COMMUNITY USE. MUNICIPAL FLOOD MITIGATION PLANS, RESILIENCE, WATERFRONT REVITALIZATION PLANS OR HAZARD MITIGATION PLANS, WHEN APPLICABLE, SHALL BE CONSULTED TO IDENTIFY THE APPROPRIATE RESTORATION AND END-USE OF THE PROPERTY. G. ALL OR A PORTION OF THE APPROPRIATION IN THIS SECTION MAY BE PROVIDED TO THE DEPARTMENT OR THE DIVISION OF HOUSING AND COMMUNITY S. 2509--C 109 A. 3009--C RENEWAL OR SUBALLOCATED TO ANY OTHER DEPARTMENT, STATE AGENCY OR STATE AUTHORITY. H. PRIVATE REAL PROPERTY IDENTIFIED AS AT-RISK TO FLOODING SHOULD GENERALLY BE LIMITED TO THOSE: (1) IDENTIFIED AS BEING WITHIN THE ONE HUNDRED-YEAR FLOODPLAIN ON THE MOST RECENT FEMA FLOOD INSURANCE MAPS; (2) FLOODED STRUCTURES THAT WOULD QUALIFY FOR BUYOUT UNDER CRITERIA GENERALLY APPLICABLE TO FEMA POST-EMERGENCY ACQUISITIONS; (3) STRUCTURES IDENTIFIED IN A STATE, FEDERAL, LOCAL OR REGIONAL TECHNICAL STUDY AS SUITABLE FOR THE LOCATION OF A FLOOD RISK MANAGEMENT OR ABATEMENT PROJECT IN AREAS IMMEDIATELY PROXIMATE TO INLAND OR COASTAL WATERWAYS; OR (4) STRUCTURES LOCATED IN COASTAL OR RIPARIAN AREAS THAT HAVE BEEN DETERMINED BY A STATE, FEDERAL, LOCAL OR REGIONAL TECHNICAL STUDY TO SIGNIFICANTLY EXACERBATE FLOODING IN OTHER LOCATIONS. 3. THE DEPARTMENT, THE OFFICE OF PARKS, RECREATION, AND HISTORIC PRES- ERVATION AND THE DEPARTMENT OF STATE ARE AUTHORIZED TO PROVIDE STATE ASSISTANCE PAYMENTS OR GRANTS TO MUNICIPALITIES AND NOT-FOR-PROFIT CORPORATIONS AND UNDERTAKE PROJECTS PURSUANT TO PARAGRAPH A OF SUBDIVI- SION ONE OF THIS SECTION. 4. THE DEPARTMENT AND THE OFFICE OF PARKS, RECREATION, AND HISTORIC PRESERVATION ARE AUTHORIZED TO PROVIDE STATE ASSISTANCE PAYMENTS OR GRANTS TO MUNICIPALITIES AND NOT-FOR-PROFIT CORPORATIONS AND UNDERTAKE PROJECTS PURSUANT TO PARAGRAPH B OF SUBDIVISION ONE OF THIS SECTION. CULVERT AND BRIDGE PROJECTS SHALL BE IN COMPLIANCE WITH THE DEPARTMENT'S STREAM CROSSING GUIDELINES AND BEST MANAGEMENT PRACTICES, AND ENGINEERED FOR STRUCTURAL INTEGRITY AND APPROPRIATE HYDRAULIC CAPACITY INCLUDING, WHERE AVAILABLE, PROJECTS FLOWS BASED ON FLOOD MODELING THAT INCORPO- RATES CLIMATE CHANGE PROJECTIONS AND SHALL NOT INCLUDE ROUTINE CONSTRUCTION OR MAINTENANCE UNDERTAKEN BY THE STATE OR MUNICIPALITIES. 5. THE DEPARTMENT AND THE OFFICE OF PARKS, RECREATION, AND HISTORIC PRESERVATION ARE AUTHORIZED TO PROVIDE STATE ASSISTANCE PAYMENTS OR GRANTS TO MUNICIPALITIES AND NOT-FOR-PROFIT CORPORATIONS AND UNDERTAKE PROJECTS PURSUANT TO PARAGRAPH C OF SUBDIVISION ONE OF THIS SECTION. 6. PROVIDED THAT FOR THE PURPOSES OF SELECTING PROJECTS FOR FUNDING UNDER PARAGRAPHS B AND C OF SUBDIVISION ONE OF THIS SECTION, THE RELE- VANT AGENCIES SHALL DEVELOP ELIGIBILITY GUIDELINES AND POST INFORMATION ON THE DEPARTMENT'S WEBSITE IN THE ENVIRONMENTAL NOTICE BULLETIN PROVID- ING FOR A THIRTY-DAY PUBLIC COMMENT PERIOD AND UPON ADOPTION POST SUCH ELIGIBILITY GUIDELINES ON THE RELEVANT AGENCY'S WEBSITE. TITLE 5 OPEN SPACE LAND CONSERVATION AND RECREATION SECTION 58-0501. ALLOCATION OF MONEYS. 58-0503. PROGRAMS, PLANS AND PROJECTS. § 58-0501. ALLOCATION OF MONEYS. OF THE MONEYS RECEIVED BY THE STATE FROM THE SALE OF BONDS PURSUANT TO THE ENVIRONMENTAL BOND ACT OF 2022 TO BE USED FOR OPEN SPACE LAND CONSERVATION AND RECREATION PROJECTS, UP TO FIVE HUNDRED FIFTY MILLION DOLLARS ($550,000,000) SHALL BE AVAILABLE FOR PROGRAMS, PLANS, AND PROJECTS DEVELOPED PURSUANT TO SECTION 58-0503 OF THIS TITLE, HOWEVER, NOT MORE THAN SEVENTY-FIVE MILLION DOLLARS ($75,000,000) SHALL BE MADE AVAILABLE FOR THE CREATION OF A FISH HATCHERY, OR THE IMPROVEMENT, EXPANSION, REPAIR OR MAINTENANCE OF EXISTING FISH HATCHERIES, NOT LESS THAN TWO HUNDRED MILLION DOLLARS ($200,000,000) SHALL BE MADE AVAILABLE FOR OPEN SPACE LAND CONSERVATION PROJECTS PURSUANT TO PARAGRAPH A OF SUBDIVISION ONE OF SECTION 58-0503 OF THIS TITLE AND NOT LESS THAN ONE HUNDRED MILLION DOLLARS ($100,000,000) SHALL BE MADE AVAILABLE FOR FARM- S. 2509--C 110 A. 3009--C LAND PROTECTION PURSUANT TO PARAGRAPH B OF SUBDIVISION ONE OF SECTION 58-0503 OF THIS TITLE. § 58-0503. PROGRAMS, PLANS AND PROJECTS. 1. ELIGIBLE OPEN SPACE WORKING LANDS CONSERVATION AND RECREATION PROJECTS INCLUDE, BUT ARE NOT LIMITED TO: A. COSTS ASSOCIATED WITH OPEN SPACE LAND CONSERVATION PROJECTS; B. COSTS ASSOCIATED WITH PURCHASING CONSERVATION EASEMENTS TO PROTECT FARMLAND PURSUANT TO ARTICLE TWENTY-FIVE-AAA OF THE AGRICULTURE AND MARKETS LAW; AND C. COSTS ASSOCIATED WITH RECREATIONAL INFRASTRUCTURE PROJECTS. 2. THE DEPARTMENT OR THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION ARE AUTHORIZED TO UNDERTAKE OPEN SPACE LAND CONSERVATION PROJECTS, IN COOPERATION WITH WILLING SELLERS PURSUANT TO SUBDIVISION ONE OF THIS SECTION AND MAY ENTER INTO AN AGREEMENT FOR PURCHASE OF REAL PROPERTY OR CONSERVATION EASEMENTS ON REAL PROPERTY BY A MUNICIPALITY OR A NOT-FOR-PROFIT CORPORATION. ANY SUCH AGREEMENT SHALL CONTAIN SUCH PROVISIONS AS SHALL BE NECESSARY TO ENSURE THAT THE PURCHASE IS CONSIST- ENT WITH, AND IN FURTHERANCE OF, THIS TITLE AND SHALL BE SUBJECT TO THE APPROVAL OF THE COMPTROLLER AND, AS TO FORM, THE ATTORNEY GENERAL. IN UNDERTAKING SUCH PROJECTS, SUCH COMMISSIONERS SHALL CONSIDER THE STATE LAND ACQUISITION PLAN PREPARED PURSUANT TO SECTION 49-0207 OF THIS CHAP- TER. FURTHER, THE DEPARTMENT OR THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION ARE AUTHORIZED TO PROVIDE STATE ASSISTANCE PAYMENTS TO MUNICIPALITIES FOR ELIGIBLE PROJECTS CONSISTENT WITH PARA- GRAPHS A AND C OF SUBDIVISION ONE OF THIS SECTION. 3. THE COST OF AN OPEN SPACE LAND CONSERVATION PROJECT SHALL INCLUDE THE COST OF PREPARING A MANAGEMENT PLAN FOR THE PRESERVATION AND BENEFI- CIAL PUBLIC ENJOYMENT OF THE LAND ACQUIRED PURSUANT TO THIS SECTION EXCEPT WHERE SUCH A MANAGEMENT PLAN ALREADY EXISTS FOR THE ACQUIRED LAND. 4. THE DEPARTMENT AND THE DEPARTMENT OF AGRICULTURE AND MARKETS ARE AUTHORIZED TO PROVIDE, PURSUANT TO PARAGRAPH B OF SUBDIVISION ONE OF THIS SECTION, FARMLAND PRESERVATION IMPLEMENTATION GRANTS TO COUNTY AGRICULTURAL AND FARMLAND PROTECTION BOARDS PURSUANT TO ARTICLE TWENTY- FIVE-AAA OF THE AGRICULTURE AND MARKETS LAW, OR TO MUNICIPALITIES, SOIL AND WATER CONSERVATION DISTRICTS OR NOT-FOR-PROFIT CORPORATIONS FOR IMPLEMENTATION OF PROJECTS. 5. THE DEPARTMENT IS AUTHORIZED TO EXPEND MONEYS TO PURCHASE EQUIP- MENT, DEVICES, AND OTHER NECESSARY MATERIALS AND TO ACQUIRE FEE TITLE OR CONSERVATION EASEMENTS IN LANDS FOR MONITORING, RESTORATION, RECOVERY, OR REINTRODUCTION PROJECTS FOR SPECIES LISTED AS ENDANGERED OR THREAT- ENED OR LISTED AS A SPECIES OF SPECIAL CONCERN PURSUANT TO SECTION 11-0535 OF THIS CHAPTER. 6. THE DEPARTMENT OR THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION ARE AUTHORIZED TO EXPEND MONEYS FOR THE PLANNING, DESIGN, AND CONSTRUCTION OF PROJECTS TO DEVELOP AND IMPROVE PARKS, CAMPGROUNDS, NATURE CENTERS, FISH HATCHERIES, AND OTHER RECREATIONAL FACILITIES. 7. THE COMMISSIONER AND A NOT-FOR-PROFIT CORPORATION MAY ENTER INTO A CONTRACT FOR THE UNDERTAKING BY THE NOT-FOR-PROFIT CORPORATION OF AN OPEN SPACE LAND ACQUISITION PROJECT. 8. REAL PROPERTY ACQUIRED, DEVELOPED, IMPROVED, RESTORED OR REHABILI- TATED BY OR THROUGH A MUNICIPALITY PURSUANT TO PARAGRAPH A OF SUBDIVI- SION ONE OF THIS SECTION OR UNDERTAKEN BY OR ON BEHALF OF A MUNICIPALITY WITH FUNDS MADE AVAILABLE PURSUANT TO THIS TITLE SHALL NOT BE SOLD, LEASED, EXCHANGED, DONATED OR OTHERWISE DISPOSED OF OR USED FOR OTHER THAN PUBLIC PARK PURPOSES WITHOUT THE EXPRESS AUTHORITY OF AN ACT OF THE S. 2509--C 111 A. 3009--C LEGISLATURE, WHICH SHALL PROVIDE FOR THE SUBSTITUTION OF OTHER LANDS OF EQUAL ENVIRONMENTAL VALUE AND FAIR MARKET VALUE AND REASONABLY EQUIV- ALENT USEFULNESS AND LOCATION TO THOSE TO BE DISCONTINUED, SOLD OR DISPOSED OF, AND SUCH OTHER REQUIREMENTS AS SHALL BE APPROVED BY THE COMMISSIONER. 9. PROVIDED THAT FOR THE PURPOSES OF SELECTING PROJECTS FOR FUNDING UNDER PARAGRAPHS A AND B OF SUBDIVISION ONE OF THIS SECTION, THE RELE- VANT AGENCIES SHALL DEVELOP ELIGIBILITY GUIDELINES AND POST INFORMATION ON THE DEPARTMENT'S WEBSITE IN THE ENVIRONMENTAL NOTICE BULLETIN PROVID- ING FOR A THIRTY DAY PUBLIC COMMENT PERIOD AND UPON ADOPTION POST SUCH ELIGIBILITY GUIDELINES ON THE RELEVANT AGENCY'S WEBSITE. TITLE 7 CLIMATE CHANGE MITIGATION SECTION 58-0701. ALLOCATION OF MONEYS. 58-0703. PROGRAMS, PLANS AND PROJECTS. § 58-0701. ALLOCATION OF MONEYS. OF THE MONEYS RECEIVED BY THE STATE FROM THE SALE OF BONDS PURSUANT TO THE ENVIRONMENTAL BOND ACT OF 2022, UP TO SEVEN HUNDRED MILLION DOLLARS ($700,000,000) SHALL BE MADE AVAILABLE FOR DISBURSEMENTS FOR CLIMATE CHANGE MITIGATION PROJECTS DEVELOPED PURSUANT TO SECTION 58-0703 OF THIS TITLE. NOT LESS THAN THREE HUNDRED FIFTY MILLION DOLLARS ($350,000,000) OF THIS AMOUNT SHALL BE AVAILABLE FOR GREEN BUILDINGS PROJECTS. § 58-0703. PROGRAMS, PLANS AND PROJECTS. 1. ELIGIBLE CLIMATE CHANGE MITIGATION PROJECTS INCLUDE, BUT ARE NOT LIMITED TO: A. COSTS ASSOCIATED WITH GREEN BUILDING PROJECTS, PROJECTS THAT INCREASE ENERGY EFFICIENCY OR THE USE OR SITING OF RENEWABLE ENERGY ON STATE-OWNED BUILDINGS OR PROPERTIES INCLUDING BUILDINGS OWNED BY THE STATE UNIVERSITY OF THE STATE OF NEW YORK, CITY UNIVERSITY OF THE STATE OF NEW YORK, AND COMMUNITY COLLEGES; B. COSTS ASSOCIATED WITH PROJECTS THAT UTILIZE NATURAL AND WORKING LANDS TO SEQUESTER CARBON AND MITIGATE METHANE EMISSIONS FROM AGRICUL- TURAL SOURCES, SUCH AS MANURE STORAGE THROUGH COVER AND METHANE REDUCTION TECHNOLOGIES; C. COSTS ASSOCIATED WITH IMPLEMENTING CLIMATE ADAPTATION AND MITI- GATION PROJECTS PURSUANT TO SECTION 54-1523 OF THIS CHAPTER; D. COSTS ASSOCIATED WITH URBAN FORESTRY PROJECTS SUCH AS FOREST AND HABITAT RESTORATION, FOR PURCHASE AND PLANTING OF STREET TREES AND FOR PROJECTS TO EXPAND THE EXISTING TREE CANOPY AND BOLSTER COMMUNITY HEALTH; E. COSTS ASSOCIATED WITH PROJECTS THAT REDUCE URBAN HEAT ISLAND EFFECT, SUCH AS INSTALLATION OF GREEN ROOFS, OPEN SPACE PROTECTION, COMMUNITY GARDENS, COOL PAVEMENT PROJECTS, PROJECTS THAT CREATE OR UPGRADE COMMUNITY COOLING CENTERS, AND THE INSTALLATION OF REFLECTIVE ROOFS WHERE INSTALLATION OF GREEN ROOFS IS NOT POSSIBLE; F. COSTS ASSOCIATED WITH PROJECTS TO REDUCE OR ELIMINATE AIR POLLUTION FROM STATIONARY OR MOBILE SOURCES OF AIR POLLUTION AFFECTING AN ENVIRON- MENTAL JUSTICE COMMUNITY; AND G. COSTS ASSOCIATED WITH PROJECTS WHICH WOULD REDUCE OR ELIMINATE WATER POLLUTION, WHETHER FROM POINT OR NON-POINT DISCHARGES, AFFECTING AN ENVIRONMENTAL JUSTICE COMMUNITY. 2. THE DEPARTMENT, THE DEPARTMENT OF AGRICULTURE AND MARKETS, THE OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION, THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY AND THE OFFICE OF GENER- AL SERVICES ARE AUTHORIZED TO PROVIDE STATE ASSISTANCE PAYMENTS OR S. 2509--C 112 A. 3009--C GRANTS TO MUNICIPALITIES AND NOT-FOR-PROFIT CORPORATIONS OR UNDERTAKE PROJECTS PURSUANT TO THIS SECTION. 3. PROVIDED THAT FOR THE PURPOSES OF SELECTING PROJECTS FOR FUNDING UNDER THIS SECTION, THE RELEVANT AGENCIES SHALL DEVELOP ELIGIBILITY GUIDELINES AND POST INFORMATION ON THE DEPARTMENT'S WEBSITE IN THE ENVI- RONMENTAL NOTICE BULLETIN PROVIDING FOR A THIRTY-DAY PUBLIC COMMENT PERIOD AND UPON ADOPTION POST SUCH ELIGIBILITY GUIDELINES ON THE RELE- VANT AGENCY'S WEBSITE. TITLE 9 WATER QUALITY IMPROVEMENT AND RESILIENT INFRASTRUCTURE SECTION 58-0901. ALLOCATION OF MONEYS. 58-0903. PROGRAMS, PLANS AND PROJECTS. § 58-0901. ALLOCATION OF MONEYS. OF THE MONEYS RECEIVED BY THE STATE FROM THE SALE OF BONDS PURSUANT TO THE ENVIRONMENTAL BOND ACT OF 2022 FOR DISBURSEMENTS FOR STATE ASSIST- ANCE FOR WATER QUALITY IMPROVEMENT PROJECTS AS DEFINED BY TITLE ONE OF THIS ARTICLE, NOT LESS THAN FIVE HUNDRED FIFTY MILLION DOLLARS ($550,000,000) SHALL BE AVAILABLE FOR WATER QUALITY IMPROVEMENT PROJECTS DEVELOPED PURSUANT TO SECTION 58-0903 OF THIS TITLE. NOT LESS THAN TWO HUNDRED MILLION DOLLARS ($200,000,000) OF THIS AMOUNT SHALL BE AVAILABLE FOR WASTEWATER INFRASTRUCTURE PROJECTS UNDERTAKEN PURSUANT TO THE NEW YORK STATE WATER INFRASTRUCTURE IMPROVEMENT ACT OF 2017 PURSUANT TO PARAGRAPH E OF SUBDIVISION ONE OF SECTION 58-0903 OF THIS TITLE, AND NOT LESS THAN ONE HUNDRED MILLION DOLLARS ($100,000,000) SHALL BE AVAILABLE FOR MUNICIPAL STORMWATER PROJECTS PURSUANT TO PARAGRAPH A OF SUBDIVISION ONE OF SECTION 58-0903 OF THIS TITLE. § 58-0903. PROGRAMS, PLANS AND PROJECTS. 1. ELIGIBLE WATER QUALITY IMPROVEMENT PROJECT COSTS INCLUDE, BUT ARE NOT LIMITED TO: A. COSTS ASSOCIATED WITH GRANTS TO MUNICIPALITIES FOR PROJECTS THAT REDUCE OR CONTROL STORM WATER RUNOFF, USING GREEN INFRASTRUCTURE WHERE PRACTICABLE; B. COSTS ASSOCIATED WITH PROJECTS THAT REDUCE AGRICULTURAL NUTRIENT RUNOFF AND PROMOTE SOIL HEALTH SUCH AS PROJECTS WHICH IMPLEMENT COMPRE- HENSIVE NUTRIENT MANAGEMENT PLANS, OTHER AGRICULTURAL NUTRIENT MANAGE- MENT PROJECTS, AND NON-POINT SOURCE ABATEMENT AND CONTROL PROGRAMS INCLUDING PROJECTS DEVELOPED PURSUANT TO SECTIONS ELEVEN-A AND ELEVEN-B OF THE SOIL AND WATER CONSERVATION DISTRICTS; C. COSTS ASSOCIATED WITH PROJECTS THAT ADDRESS HARMFUL ALGAL BLOOMS SUCH AS ABATEMENT PROJECTS AND PROJECTS FOCUSED ON ADDRESSING NUTRIENT REDUCTION IN FRESHWATER AND MARINE WATERS, WASTEWATER INFRASTRUCTURE SYSTEMS THAT TREAT NITROGEN AND PHOSPHORUS, AND LAKE TREATMENT SYSTEMS; D. COSTS ASSOCIATED WITH WASTEWATER INFRASTRUCTURE PROJECTS INCLUDING BUT NOT LIMITED TO EXTENDING OR ESTABLISHING SEWER LINES TO REPLACE FAILING SEPTIC SYSTEMS OR CESSPOOLS AND PROJECTS AS PROVIDED BY SECTION TWELVE HUNDRED EIGHTY-FIVE-U OF THE PUBLIC AUTHORITIES LAW; E. COSTS ASSOCIATED WITH PROJECTS TO REDUCE, AVOID OR ELIMINATE POINT AND NON-POINT SOURCE DISCHARGES TO WATER INCLUDING PROJECTS AUTHORIZED BY THE NEW YORK STATE WATER IMPROVEMENT INFRASTRUCTURE ACT OF 2017 AND SECTION TWELVE HUNDRED EIGHTY-FIVE-S OF THE PUBLIC AUTHORITIES LAW; F. COSTS ASSOCIATED WITH THE ESTABLISHMENT OF RIPARIAN BUFFERS TO PROVIDE DISTANCE BETWEEN FARM FIELDS AND STREAMS OR ABATE EROSION DURING HIGH FLOW EVENTS; AND G. COSTS ASSOCIATED WITH LEAD SERVICE LINE REPLACEMENT PURSUANT TO SECTION ELEVEN HUNDRED FOURTEEN OF THE PUBLIC HEALTH LAW. S. 2509--C 113 A. 3009--C 2. THE DEPARTMENT AND THE NEW YORK STATE ENVIRONMENTAL FACILITIES CORPORATION ARE AUTHORIZED TO PROVIDE STATE ASSISTANCE PAYMENTS OR GRANTS TO MUNICIPALITIES FOR PROJECTS AUTHORIZED PURSUANT TO PARAGRAPHS A, B, AND D OF SUBDIVISION ONE OF THIS SECTION. 3. THE DEPARTMENT OF AGRICULTURE AND MARKETS SHALL BE AUTHORIZED TO MAKE STATE ASSISTANCE PAYMENTS TO SOIL AND WATER CONSERVATION DISTRICTS FOR THE COST OF IMPLEMENTING AGRICULTURAL ENVIRONMENTAL MANAGEMENT PLANS, INCLUDING PURCHASE OF EQUIPMENT FOR MEASURING AND MONITORING SOIL HEALTH AND SOIL CONDITIONS. 4. THE DEPARTMENT IS AUTHORIZED TO MAKE GRANTS AVAILABLE TO NOT-FOR- PROFITS AND ACADEMIC INSTITUTIONS FOR PARAGRAPHS B, C, AND F OF SUBDIVI- SION ONE OF THIS SECTION, AND MAKE STATE ASSISTANCE PAYMENTS TO MUNICI- PALITIES AND UNDERTAKE PROJECTS PURSUANT TO THIS SECTION. 5. PROVIDED THAT FOR THE PURPOSES OF SELECTING PROJECTS FOR FUNDING OF THIS SECTION, THE RELEVANT AGENCIES SHALL DEVELOP ELIGIBILITY GUIDELINES AND POST INFORMATION ON THE DEPARTMENT'S WEBSITE IN THE ENVIRONMENTAL NOTICE BULLETIN PROVIDING FOR A THIRTY-DAY PUBLIC COMMENT PERIOD AND UPON ADOPTION POST SUCH ELIGIBILITY GUIDELINES ON THE RELEVANT AGENCY'S WEBSITE. TITLE 11 ENVIRONMENTAL JUSTICE AND REPORTING SECTION 58-1101. BENEFITS OF FUNDS. 58-1103. REPORTING. § 58-1101. BENEFITS OF FUNDS. THE DEPARTMENT SHALL MAKE EVERY EFFORT PRACTICABLE TO ENSURE THAT THIRTY-FIVE PERCENT OF THE FUNDS PURSUANT TO THIS ARTICLE BENEFIT ENVI- RONMENTAL JUSTICE COMMUNITIES. § 58-1103. REPORTING. 1. NO LATER THAN SIXTY DAYS FOLLOWING THE END OF EACH FISCAL YEAR, EACH DEPARTMENT, AGENCY, PUBLIC BENEFIT CORPORATION, AND PUBLIC AUTHORI- TY RECEIVING AN ALLOCATION OR ALLOCATIONS OF APPROPRIATION FINANCED FROM THE RESTORE MOTHER NATURE ENVIRONMENTAL BOND ACT OF 2022 SHALL SUBMIT TO THE COMMISSIONER IN A MANNER AND FORM PRESCRIBED BY THE DEPARTMENT, THE FOLLOWING INFORMATION AS OF MARCH THIRTY-FIRST OF SUCH FISCAL YEAR, WITHIN EACH CATEGORY LISTED IN THIS TITLE: THE TOTAL APPROPRIATION; TOTAL COMMITMENTS; YEAR-TO-DATE DISBURSEMENTS; REMAINING UNCOMMITTED BALANCES; AND A DESCRIPTION OF EACH PROJECT. 2. NO LATER THAN ONE HUNDRED TWENTY DAYS FOLLOWING THE END OF EACH FISCAL YEAR, THE DEPARTMENT SHALL SUBMIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY A REPORT THAT INCLUDES THE INFORMATION RECEIVED. A COPY OF THE REPORT SHALL BE POSTED ON THE DEPARTMENT'S WEBSITE. § 2. The state finance law is amended by adding a new section 97-tttt to read as follows: § 97-TTTT. RESTORE MOTHER NATURE BOND FUND. 1. THERE IS HEREBY ESTAB- LISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSION- ER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE "RESTORE MOTHER NATURE BOND FUND". 2. THE STATE COMPTROLLER SHALL DEPOSIT INTO THE RESTORE MOTHER NATURE BOND FUND ALL MONEYS RECEIVED BY THE STATE FROM THE SALE OF BONDS AND/OR NOTES FOR USES ELIGIBLE PURSUANT TO SECTION FOUR OF THE ENVIRONMENTAL BOND ACT OF 2022 "RESTORE MOTHER NATURE". 3. MONEYS IN THE RESTORE MOTHER NATURE BOND FUND, FOLLOWING APPROPRI- ATION BY THE LEGISLATURE AND ALLOCATION BY THE DIRECTOR OF THE BUDGET, SHALL BE AVAILABLE ONLY FOR REIMBURSEMENT OF EXPENDITURES MADE FROM APPROPRIATIONS FROM THE CAPITAL PROJECTS FUND FOR THE PURPOSE OF THE S. 2509--C 114 A. 3009--C RESTORE MOTHER NATURE BOND FUND, AS SET FORTH IN THE ENVIRONMENTAL BOND ACT OF 2022 "RESTORE MOTHER NATURE". 4. NO MONEYS RECEIVED BY THE STATE FROM THE SALE OF BONDS AND/OR NOTES SOLD PURSUANT TO THE ENVIRONMENTAL BOND ACT OF 2022 "RESTORE MOTHER NATURE" SHALL BE EXPENDED FOR ANY PROJECT UNTIL FUNDS THEREFOR HAVE BEEN ALLOCATED PURSUANT TO THE PROVISIONS OF THIS SECTION AND COPIES OF THE APPROPRIATE CERTIFICATES OF APPROVAL FILED WITH THE CHAIR OF THE SENATE FINANCE COMMITTEE, THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND THE STATE COMPTROLLER. § 3. Section 61 of the state finance law is amended by adding a new subdivision 32 to read as follows: 32. THIRTY YEARS. FOR THE PAYMENT OF "RESTORE MOTHER NATURE" PROJECTS, AS DEFINED IN ARTICLE FIFTY-EIGHT OF THE ENVIRONMENTAL CONSERVATION LAW AND UNDERTAKEN PURSUANT TO A CHAPTER OF THE LAWS OF TWO THOUSAND TWEN- TY-ONE, ENACTING AND CONSTITUTING THE ENVIRONMENTAL BOND ACT OF 2022 "RESTORE MOTHER NATURE". THIRTY YEARS FOR FLOOD CONTROL INFRASTRUCTURE, OTHER ENVIRONMENTAL INFRASTRUCTURE, WETLAND AND OTHER HABITAT RESTORA- TION, WATER QUALITY PROJECTS, ACQUISITION OF LAND, INCLUDING ACQUISITION OF REAL PROPERTY, AND RENEWABLE ENERGY PROJECTS. NOTWITHSTANDING THE FOREGOING, FOR THE PURPOSES OF CALCULATING ANNUAL DEBT SERVICE, THE STATE COMPTROLLER SHALL APPLY A WEIGHTED AVERAGE PERIOD OF PROBABLE LIFE OF RESTORE MOTHER NATURE PROJECTS, INCLUDING ANY OTHER WORKS OR PURPOSES TO BE FINANCED WITH STATE DEBT. WEIGHTED AVERAGE PERIOD OF PROBABLE LIFE SHALL BE DETERMINED BY COMPUTING THE SUM OF THE PRODUCTS DERIVED FROM MULTIPLYING THE DOLLAR VALUE OF THE PORTION OF THE DEBT CONTRACTED FOR EACH WORK OR PURPOSE (OR CLASS OF WORKS OR PURPOSES) BY THE PROBABLE LIFE OF SUCH WORK OR PURPOSE (OR CLASS OF WORKS OR PURPOSES) AND DIVID- ING THE RESULTING SUM BY THE DOLLAR VALUE OF THE ENTIRE DEBT AFTER TAKING INTO CONSIDERATION ANY ORIGINAL ISSUE PREMIUM OR DISCOUNT. § 4. If any clause, sentence, paragraph, 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 ther- eof, but shall be confined in its operation to the clause, sentence, paragraph, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. § 5. This act shall take effect only in the event that section 1 of part TT of the chapter of the laws of 2021 enacting the environmental bond act of 2022 "restore mother nature" is submitted to the people at the general election to be held in November 2022 and is approved by a majority of all votes cast for and against it at such election. Upon such approval, this act shall take effect immediately; provided that the commissioner of environmental conservation shall notify the legislative bill drafting commission upon the occurrence of the enactment of section 1 of part TT of the chapter of the laws of 2021 enacting the environ- mental bond act of 2022 "restore mother nature", in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law. Effective immediately, the addition, amendment, and/or repeal of any rule or regulation necessary for the implementation of the foregoing sections of this act are author- ized and directed to be made and completed on or before such effective date. PART VV S. 2509--C 115 A. 3009--C Section 1. Short title. This act shall be known and may be cited as the "COVID-19 pandemic small business recovery grant program". § 2. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 16-ff to read as follows: § 16-FF. COVID-19 PANDEMIC SMALL BUSINESS RECOVERY GRANT PROGRAM. 1. DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "SMALL BUSINESS" SHALL MEAN A BUSINESS WHICH IS RESIDENT IN THIS STATE, INDEPENDENTLY OWNED AND OPERATED, NOT DOMINANT IN ITS FIELD, AND EMPLOYS ONE HUNDRED OR LESS PERSONS. (B) "MICRO-BUSINESS" SHALL MEAN A BUSINESS WHICH IS A RESIDENT IN THIS STATE, INDEPENDENTLY OWNED AND OPERATED, NOT DOMINANT IN ITS FIELD, AND EMPLOYS TEN OR LESS PERSONS. (C) "THE PROGRAM" SHALL MEAN THE COVID-19 PANDEMIC SMALL BUSINESS RECOVERY GRANT PROGRAM ESTABLISHED PURSUANT TO SUBDIVISION TWO OF THIS SECTION. (D) "APPLICANT" SHALL MEAN A SMALL BUSINESS OR FOR-PROFIT INDEPENDENT ARTS AND CULTURAL ORGANIZATION SUBMITTING AN APPLICATION FOR A GRANT AWARD TO THE PROGRAM. (E) "COVID-19 HEALTH AND SAFETY PROTOCOLS" MEANS ANY RESTRICTIONS IMPOSED ON THE OPERATION OF BUSINESSES BY EXECUTIVE ORDER 202 OF 2020 ISSUED BY THE GOVERNOR, OR ANY EXTENSION OR SUBSEQUENT EXECUTIVE ORDER ISSUED IN RESPONSE TO THE NOVEL CORONAVIRUS (COVID-19) PANDEMIC, OR ANY OTHER STATUTE, RULE, OR REGULATION IMPOSING RESTRICTIONS ON THE OPERA- TION OF BUSINESSES IN RESPONSE TO THE NOVEL CORONAVIRUS (COVID-19) PANDEMIC. (F) "FOR-PROFIT INDEPENDENT ARTS AND CULTURAL ORGANIZATION" SHALL MEAN A SMALL OR MEDIUM SIZED PRIVATE FOR-PROFIT, INDEPENDENTLY OPERATED LIVE- PERFORMANCE VENUE, PROMOTER, PRODUCTION COMPANY, OR PERFORMANCE RELATED BUSINESS LOCATED IN NEW YORK STATE NEGATIVELY IMPACTED BY COVID-19 HEALTH AND SAFETY PROTOCOLS, AND HAVING ONE HUNDRED OR LESS FULL-TIME EMPLOYEES, EXCLUDING SEASONAL EMPLOYEES. THE QUALIFYING ORGANIZATIONS UNDER THIS DEFINITION MAY INCLUDE BUSINESSES ENGAGED IN A FIELD INCLUD- ING, BUT NOT LIMITED TO, ARCHITECTURE, DANCE, DESIGN, FILM, MUSIC, THEA- TER, OPERA, MEDIA, LITERATURE, MUSEUM ACTIVITIES, VISUAL ARTS, FOLK ARTS AND CASTING. 2. COVID-19 PANDEMIC SMALL BUSINESS RECOVERY GRANT PROGRAM ESTAB- LISHED. THE COVID-19 PANDEMIC SMALL BUSINESS RECOVERY GRANT PROGRAM IS HEREBY CREATED TO PROVIDE ASSISTANCE TO SMALL BUSINESSES AND FOR-PROFIT INDEPENDENT ARTS AND CULTURAL ORGANIZATIONS WHO HAVE EXPERIENCED ECONOM- IC HARDSHIP DURING THE COVID-19 PANDEMIC. 3. AUTHORIZATION. THE CORPORATION IS HEREBY AUTHORIZED, USING AVAIL- ABLE FUNDS, TO ISSUE GRANTS AND PROVIDE TECHNICAL ASSISTANCE AND OUTREACH TO SMALL BUSINESSES, FOR-PROFIT INDEPENDENT ARTS AND CULTURAL ORGANIZATIONS, AND TECHNICAL ASSISTANCE PARTNERS FOR THE PURPOSE OF AIDING THE RECOVERY OF THE NEW YORK STATE ECONOMY, AND MAY PROMULGATE GUIDELINES OR REGULATIONS TO EFFECTUATE THE PURPOSES HEREIN. 4. SELECTION CRITERIA AND APPLICATION PROCESS. (A) IN ORDER TO BE ELIGIBLE FOR A GRANT OR ADDITIONAL FORM OF SUPPORT UNDER THE PROGRAM, AN ELIGIBLE SMALL BUSINESS OR FOR-PROFIT INDEPENDENT ARTS AND CULTURAL ORGANIZATION SHALL: (I) BE INCORPORATED IN NEW YORK STATE OR LICENSED OR REGISTERED TO DO BUSINESS IN NEW YORK STATE; S. 2509--C 116 A. 3009--C (II) BE A CURRENTLY VIABLE SMALL BUSINESS OR FOR-PROFIT INDEPENDENT ARTS AND CULTURAL ORGANIZATION THAT HAS BEEN IN OPERATION SINCE BEFORE MARCH 1, 2019; (III) BE ABLE TO DEMONSTRATE LOST REVENUE OR OTHER ECONOMIC HARDSHIP DUE TO THE COVID-19 PANDEMIC OR COMPLIANCE WITH COVID-19 HEALTH AND SAFETY PROTOCOLS WHICH RESULTED IN BUSINESS MODIFICATIONS, INTER- RUPTIONS, OR CLOSURES. TO DEMONSTRATE LOST REVENUE OR OTHER ECONOMIC HARDSHIP, THE APPLICANT SHALL SHOW A LOSS IN YEAR-TO-DATE REVENUE AS OF DECEMBER 31, 2020, COMPARED WITH THE SAME PERIOD IN 2019; (IV) BE IN SUBSTANTIAL COMPLIANCE WITH APPLICABLE FEDERAL, STATE AND LOCAL LAWS, REGULATIONS, CODES AND REQUIREMENTS; AND (V) NOT OWE ANY FEDERAL, STATE OR LOCAL TAXES PRIOR TO JULY 15, 2020, OR HAVE AN APPROVED REPAYMENT, DEFERRAL PLAN, OR AGREEMENT WITH APPRO- PRIATE FEDERAL, STATE AND LOCAL TAXING AUTHORITIES. (B) GRANTS AWARDED FROM THIS PROGRAM SHALL BE AVAILABLE TO ELIGIBLE MICRO-BUSINESSES, SMALL BUSINESSES, AND FOR-PROFIT INDEPENDENT ARTS AND CULTURAL ORGANIZATIONS THAT DO NOT QUALIFY FOR BUSINESS ASSISTANCE GRANT PROGRAMS UNDER THE FEDERAL AMERICAN RESCUE PLAN ACT OF 2021 OR ANY OTHER AVAILABLE FEDERAL COVID-19 ECONOMIC RECOVERY OR BUSINESS ASSISTANCE GRANT PROGRAMS, INCLUDING LOANS FORGIVEN UNDER THE FEDERAL PAYCHECK PROTECTION PROGRAM, OR ARE UNABLE TO OBTAIN SUFFICIENT BUSINESS ASSIST- ANCE FROM SUCH FEDERAL PROGRAMS, WITH PRIORITY GIVEN TO SOCIALLY AND ECONOMICALLY DISADVANTAGED BUSINESS OWNERS INCLUDING, BUT NOT LIMITED TO, MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES, SERVICE-DISABLED VETERAN-OWNED BUSINESSES, AND VETERAN-OWNED BUSINESSES, OR BUSINESSES LOCATED IN COMMUNITIES THAT WERE ECONOMICALLY DISTRESSED PRIOR TO MARCH 1, 2020, AS DETERMINED BY THE MOST RECENT CENSUS DATA. 5. ELIGIBLE COSTS. (A) ELIGIBLE COSTS SHALL BE CONSIDERED FOR MICRO- BUSINESSES, SMALL BUSINESSES, AND FOR-PROFIT INDEPENDENT ARTS AND CULTURAL ORGANIZATIONS NEGATIVELY IMPACTED BY THE COVID-19 PANDEMIC OR BY THEIR COMPLIANCE WITH COVID-19 HEALTH AND SAFETY PROTOCOLS WHICH RESULTED IN LOST REVENUE, BUSINESS MODIFICATIONS, INTERRUPTIONS, OR CLOSURES. SUCH ELIGIBLE COSTS SHALL HAVE BEEN INCURRED BETWEEN MARCH 1, 2020 AND APRIL 1, 2021. (B) THE FOLLOWING COSTS INCURRED BY A MICRO-BUSINESS, SMALL BUSINESS, OR FOR-PROFIT INDEPENDENT ARTS AND CULTURAL ORGANIZATION SHALL BE CONSIDERED ELIGIBLE UNDER THE PROGRAM AT A MINIMUM: PAYROLL COSTS; COSTS OF RENT OR MORTGAGE AS PROVIDED FOR IN SUBPARAGRAPH (I) OF THIS PARA- GRAPH; COSTS OF REPAYMENT OF LOCAL PROPERTY OR SCHOOL TAXES ASSOCIATED WITH SUCH SMALL BUSINESS'S LOCATION AS PROVIDED FOR IN SUBPARAGRAPH (II) OF THIS PARAGRAPH; INSURANCE COSTS; UTILITY COSTS; COSTS OF PERSONAL PROTECTION EQUIPMENT (PPE) NECESSARY TO PROTECT WORKER AND CONSUMER HEALTH AND SAFETY; HEATING, VENTILATION, AND AIR CONDITIONING (HVAC) COSTS, OR OTHER MACHINERY OR EQUIPMENT COSTS, OR SUPPLIES AND MATERIALS NECESSARY FOR COMPLIANCE WITH COVID-19 HEALTH AND SAFETY PROTOCOLS, AND OTHER DOCUMENTED COVID-19 COSTS AS APPROVED BY THE CORPORATION. (I) MORTGAGE PAYMENTS OR COMMERCIAL RENT SHALL BE CONSIDERED ELIGIBLE COSTS. (II) PAYMENT OF LOCAL PROPERTY TAXES AND SCHOOL TAXES SHALL BE CONSID- ERED ELIGIBLE COSTS. (C) GRANTS AWARDED UNDER THE PROGRAM SHALL NOT BE USED TO RE-PAY OR PAY DOWN ANY PORTION OF A LOAN OBTAINED THROUGH A FEDERAL CORONAVIRUS RELIEF PACKAGE FOR BUSINESS ASSISTANCE OR ANY NEW YORK STATE BUSINESS ASSISTANCE PROGRAMS. 6. APPLICATION AND APPROVAL PROCESS. (A) AN ELIGIBLE MICRO-BUSINESS, SMALL BUSINESS, OR FOR-PROFIT INDEPENDENT ARTS AND CULTURAL ORGANIZATION S. 2509--C 117 A. 3009--C SHALL SUBMIT A COMPLETE APPLICATION IN A FORM AND MANNER PRESCRIBED BY THE CORPORATION. (B) THE CORPORATION SHALL ESTABLISH THE PROCEDURES AND TIME PERIOD FOR MICRO-BUSINESSES, SMALL BUSINESSES, OR FOR-PROFIT INDEPENDENT ARTS AND CULTURAL ORGANIZATIONS TO SUBMIT APPLICATIONS TO THE PROGRAM. AS PART OF THE APPLICATION EACH MICRO-BUSINESS, SMALL BUSINESS, OR FOR-PROFIT INDE- PENDENT ARTS AND CULTURAL ORGANIZATION SHALL PROVIDE SUFFICIENT DOCUMEN- TATION IN A MANNER PRESCRIBED BY THE CORPORATION TO DEMONSTRATE HARD- SHIP, AND PREVENT FRAUD, WASTE, AND ABUSE. 7. REPORTING. THE CORPORATION, ON A QUARTERLY BASIS BEGINNING SEPTEM- BER 30, 2021, AND ENDING WHEN ALL PROGRAM FUNDS ARE EXPENDED, SHALL SUBMIT A SEPARATE AND DISTINCT REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY SETTING FORTH THE ACTIVITIES UNDERTAKEN BY THE PROGRAM. SUCH QUARTERLY REPORT SHALL INCLUDE, BUT NEED NOT BE LIMITED TO: THE NUMBER OF APPLICANTS AND THEIR COUNTY LOCATIONS; THE NUMBER OF APPLICANTS APPROVED BY THE PROGRAM AND THEIR COUNTY LOCATION; THE TOTAL AMOUNT OF GRANTS AWARDED, AND THE AVER- AGE AMOUNT OF SUCH GRANTS AWARDED; AND SUCH OTHER INFORMATION AS THE CORPORATION DETERMINES NECESSARY AND APPROPRIATE. SUCH REPORT SHALL BE INCLUDED ON THE CORPORATION'S WEBSITE AND ANY OTHER PUBLICLY ACCESSIBLE STATE DATABASE THAT LIST ECONOMIC DEVELOPMENT PROGRAMS, AS DETERMINED BY THE COMMISSIONER. 8. TECHNICAL ASSISTANCE AND OUTREACH. THE CORPORATION MAY OFFER OR MAKE AVAILABLE TO ALL APPLICANTS, REGARDLESS OF APPROVAL STATUS, DIRECT OR INDIRECT ACCESS TO FINANCIAL AND BUSINESS PLANNING, LEGAL CONSULTA- TION, LANGUAGE ASSISTANCE SERVICES, MENTORING SERVICES FOR POST-PANDEMIC PLANNING, REOPENING PLANNING ASSISTANCE AND OTHER ASSISTANCE AND SUPPORT AS DETERMINED BY THE CORPORATION. ASSISTANCE, SUPPORT, OUTREACH AND OTHER SERVICES MAY BE PROVIDED BY OR THROUGH PARTNER ORGANIZATIONS, INCLUDING BUT NOT LIMITED TO CHAMBERS OF COMMERCE, LOCAL BUSINESS DEVEL- OPMENT CORPORATIONS, TRADE ASSOCIATIONS AND OTHER COMMUNITY ORGANIZA- TIONS THAT HAVE EXPERTISE AND BACKGROUND IN PROVIDING TECHNICAL ASSIST- ANCE, AT THE DISCRETION OF THE CORPORATION. § 3. 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. § 4. This act shall take effect immediately. PART WW Section 1. Subdivision (e) of section 532 of the real property tax law, as amended by chapter 660 of the laws of 1997, is amended to read as follows: (e) All lands in the counties of Rockland and Sullivan and in the towns of BLOOMING GROVE, CHESTER, Monroe, Warwick, Cornwall, Highlands, Tuxedo and Woodbury, Orange county, and in the towns of Gardiner, Rochester, Shawangunk and Wawarsing, Ulster county, acquired for a public use by the commissioners of the Palisades Interstate park, exclu- sive of the improvements erected thereon by the state; S. 2509--C 118 A. 3009--C § 2. This act shall take effect immediately and shall apply to assess- ment rolls prepared on the basis of taxable status dates occurring on and after the date on which this act shall have become a law. PART XX Section 1. Paragraph (f) of subdivision 2 of section 14-1 of the transportation law, as amended by section 1 of part HH of chapter 54 of the laws of 2016, is amended to read as follows: (f) No grant or loan to any eligible applicant shall exceed the sum of [one] TWO million five hundred thousand dollars, and no part of any such grant or loan shall be used for salaries or for services regularly provided by the applicant for administrative costs in connection with such grant or loan. § 2. This act shall take effect immediately. PART YY Section 1. Upon a determination by the Metropolitan Transportation Authority or the New York City Transit Authority that sufficient funds have been committed to it specifically for such purpose, the Metropolitan Transportation Authority, the public benefit corporation created by section 1263 of the public authorities law, and the New York City Transit Authority, the public benefit corporation created by section 1201 of the public authorities law, shall use such specif- ically committed funds to rename the Newkirk Avenue subway station on the IRT Nostrand Avenue line of the New York city subway to the Newkirk Avenue - Little Haiti station. The MTA shall ensure that all signs and any other items issued by the MTA are updated to accurately reflect the new name of the station within ten months. § 2. This act shall take effect immediately, and shall be deemed repealed after the signs and any other items are accurately updated. The chief executive officer of the Metropolitan Transportation Authority or president of the New York City Transit Authority shall notify the legislative bill drafting commission upon the completion of such updates in order that the commission may maintain an accurate and timely effec- tive data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law. PART ZZ Section 1. The second undesignated paragraph of subdivision 1 of section 370 of the vehicle and traffic law, as amended by chapter 408 of the laws of 2019, is amended to read as follows: For damages for and incident to death or injuries to persons and inju- ry to or destruction of property: For each motorcycle and for each motor vehicle engaged in the business of carrying or transporting passengers for hire, having a seating capacity of not more than seven passengers, a bond or insurance policy with a minimum liability of twenty-five thou- sand dollars and a maximum liability of fifty thousand dollars for bodi- ly injury, and a minimum liability of fifty thousand dollars and a maxi- mum liability of one hundred thousand dollars for death and a minimum liability of ten thousand dollars for injury to or destruction of prop- erty; for each motor vehicle engaged in the business of carrying or transporting passengers for hire, having a seating capacity of not less S. 2509--C 119 A. 3009--C than eight passengers, a bond or insurance policy with a combined single limit of at least one million five hundred thousand dollars for bodily injury or death to one or more persons, and because of injury to or destruction of property in any one accident; PROVIDED, FURTHER THAT FOR COMMUTER VANS THAT ARE ENGAGED IN THE BUSINESS OF CARRYING OR TRANSPORT- ING PASSENGERS FOR HIRE, HAVING A SEATING CAPACITY OF NOT LESS THAN EIGHT PASSENGERS, A BOND OR INSURANCE POLICY WITH A COMBINED SINGLE LIMIT OF AT LEAST FIVE HUNDRED THOUSAND DOLLARS FOR BODILY INJURY OR DEATH TO ONE OR MORE PERSONS, AND BECAUSE OF INJURY TO OR DESTRUCTION OF PROPERTY IN ANY ONE ACCIDENT. FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM "COMMUTER VAN" SHALL HAVE THE SAME MEANING AS SUCH TERM IS DEFINED IN SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK. § 2. This act shall take effect immediately. PART AAA Intentionally Omitted PART BBB Section 1. Short title. This act shall be known and may be cited as the "New York state professional policing act of 2021". § 2. Subdivision 1-a of section 53 of the executive law, as added by chapter 104 of the laws of 2020, is amended to read as follows: 1-a. receive and investigate complaints from any source, or upon his or her own initiative, concerning allegations of corruption, fraud, use of excessive force, criminal activity, conflicts of interest or abuse by any police officer in a covered agency AND PROMPTLY INFORM THE DIVISION OF CRIMINAL JUSTICE SERVICES, IN THE FORM AND MANNER AS PRESCRIBED BY THE DIVISION, OF SUCH ALLEGATIONS AND THE PROGRESS OF INVESTIGATIONS RELATED THERETO UNLESS SPECIAL CIRCUMSTANCES REQUIRE CONFIDENTIALITY. NOTHING IN THIS SUBDIVISION SHALL REQUIRE THE DIVISION OF CRIMINAL JUSTICE SERVICES TO PARTICIPATE IN THE INVESTIGATION OF SUCH ALLEGATIONS OR TAKE ACTION OR PREVENT THE DIVISION OF CRIMINAL JUSTICE SERVICES FROM TAKING ACTION AUTHORIZED PURSUANT TO SUBDIVISION THREE OF SECTION EIGHT HUNDRED FORTY-FIVE OF THIS CHAPTER IN THE TIME AND MANNER DETERMINED BY THE COMMISSIONER OF THE DIVISION OF CRIMINAL JUSTICE SERVICES. § 3. Subdivision 3 of section 75 of the executive law is amended by adding a new paragraph (b-1) to read as follows: (B-1) PROMPTLY INFORM THE DIVISION OF CRIMINAL JUSTICE SERVICES, IN THE FORM AND MANNER PRESCRIBED BY THE DIVISION, OF SUCH ALLEGATIONS AND THE PROGRESS OF INVESTIGATIONS RELATED THERETO UNLESS SPECIAL CIRCUM- STANCES REQUIRE CONFIDENTIALITY. NOTHING IN THIS PARAGRAPH SHALL REQUIRE THE DIVISION OF CRIMINAL JUSTICE SERVICES TO PARTICIPATE IN THE INVESTIGATION OF SUCH ALLEGATIONS OR TAKE ACTION OR PREVENT THE DIVISION OF CRIMINAL JUSTICE SERVICES FROM TAKING ACTION AUTHORIZED PURSUANT TO SUBDIVISION THREE OF SECTION EIGHT HUNDRED FORTY-FIVE OF THIS CHAPTER IN THE TIME AND MANNER DETERMINED BY THE COMMISSIONER OF THE DIVISION OF CRIMINAL JUSTICE SERVICES; § 4. Paragraph (c) of subdivision 5 of section 75 of the executive law, as added by chapter 104 of the laws of 2020, is amended to read as follows: (c) The head of any covered agency shall advise the governor, the temporary president of the senate, the speaker of the assembly, the minority leader of the senate [and], the minority leader of the assembly AND THE DIVISION OF CRIMINAL JUSTICE SERVICES within ninety days of the S. 2509--C 120 A. 3009--C issuance of a report by the law enforcement misconduct investigative office as to the remedial action that the agency has taken in response to any recommendation for such action contained in such report. § 5. Subdivision 4 of section 837 of the executive law is amended by adding a new paragraph (e-1) to read as follows: (E-1) COLLECT DEMOGRAPHIC DATA WITH RESPECT TO PERSONS APPOINTED AS A POLICE OFFICER, INCLUDING BUT NOT LIMITED TO RACIAL AND GENDER CHARAC- TERISTICS; AND § 6. Subdivisions 1 and 5 of section 839 of the executive law, subdi- vision 1 as added by chapter 399 of the laws of 1972, subdivision 5 as amended by chapter 459 of the laws of 1975 and such section as renum- bered by chapter 603 of the laws of 1973, are amended to read as follows: 1. There is hereby created within the division a municipal police training council composed of [eight] TEN members, who shall be selected as follows: (a) [three] ONE shall be appointed by the governor WHO SHALL BE A FULL-TIME FACULTY MEMBER OF A COLLEGE OR UNIVERSITY WHO TEACHES IN THE AREA OF CRIMINAL JUSTICE OR POLICE SCIENCE; (b) [two] ONE shall be appointed by the governor from a list of at least six nominees submitted by the New York state sheriffs' associ- ation, who shall be incumbent sheriffs in the state having at least two years of service on the law enforcement training committee of such asso- ciation or having other specialized experience in connection with police training which, in the opinion of the chairman of such law enforcement training committee, provides the sheriff with at least an equivalent background in the field of police training; and (c) [two] ONE shall be appointed by the governor from a list of at least six nominees submitted by the New York state association of chiefs of police, who shall be incumbent chiefs of police or commissioners of police of a municipality in the state having at least two years of service on the police training committee of such association or having other specialized experience in connection with police training which, in the opinion of the chairman of such training committee, provides the chief of police or commissioner of police with at least an equivalent background in the field of police training; and (d) one shall be the commissioner of police of the city of New York or a member of his department, designated by such commissioner and approved by the governor[.]; AND (E) ONE SHALL BE THE SUPERINTENDENT OF THE STATE POLICE; AND (F) ONE SHALL BE APPOINTED BY THE GOVERNOR WHO SHALL BE AN INCUMBENT CHIEF OF POLICE OR COMMISSIONER OF POLICE FROM A MUNICIPALITY IN THE STATE WITH A POLICE DEPARTMENT CONSISTING OF MORE THAN ONE HUNDRED OFFI- CERS; AND (G) ONE SHALL BE APPOINTED BY THE GOVERNOR WHO SHALL BE AN INCUMBENT SHERIFF IN THE STATE FROM AN AGENCY WITH MORE THAN ONE HUNDRED DEPUTY SHERIFFS; AND (H) ONE SHALL BE APPOINTED BY THE GOVERNOR WHO SHALL BE A REPRESEN- TATIVE OF VICTIMS OF CRIME; AND (I) ONE SHALL BE APPOINTED BY THE GOVERNOR WHO SHALL BE A REPRESEN- TATIVE FROM A COMMUNITY WITH HIGH NUMBERS OF POLICE AND COMMUNITY INTER- ACTIONS; AND (J) ONE SHALL BE APPOINTED BY THE GOVERNOR WHO SHALL BE AN INCUMBENT EXECUTIVE FROM A PEACE OFFICER EMPLOYING AGENCY OR MUNICIPALITY. 5. The council shall meet at least four times in each year. Special meetings may be called by the chairman and shall be called by him at the S. 2509--C 121 A. 3009--C request of the governor or upon the written request of [five] SIX members of the council. The council may establish its own requirements as to quorum and its own procedures with respect to the conduct of its meetings and other affairs; provided, however, that all recommendations made by the council to the governor pursuant to subdivision one of section eight hundred forty of this chapter shall require the affirma- tive vote of [five] SIX members of the council. § 7. Paragraph (h) of subdivision 1 of section 840 of the executive law is REPEALED. § 8. Subdivision 2 of section 840 of the executive law, as amended by chapter 66 of the laws of 1973, is amended to read as follows: 2. The council shall promulgate, and may from time to time amend, such rules and regulations prescribing height, weight [and], physical fitness AND PSYCHOLOGICAL requirements for eligibility of persons for provi- sional or permanent appointment in the competitive class of the civil service as police officers of any county, city, town, village or police district as it deems necessary and proper for the efficient performance of police duties. § 9. Section 840 of the executive law is amended by adding a new subdivision 2-b to read as follows: 2-B. THE COUNCIL SHALL PROMULGATE, AND MAY FROM TIME TO TIME AMEND, SUCH RULES AND REGULATIONS CONCERNING BACKGROUND INVESTIGATIONS FOR ELIGIBILITY OF PERSONS FOR PROVISIONAL OR PERMANENT APPOINTMENT IN THE COMPETITIVE CLASS OF THE CIVIL SERVICE AS POLICE OFFICERS OF ANY COUNTY, CITY, TOWN, VILLAGE OR POLICE DISTRICT AS IT DEEMS NECESSARY AND PROPER FOR THE EFFICIENT PERFORMANCE OF POLICE DUTIES, WHICH SHALL BE INCORPO- RATED BY THE LAW ENFORCEMENT AGENCY ACCREDITATION COUNCIL AS PART OF THE CERTIFICATION PROCESS IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-SIX-H OF THIS CHAPTER. § 10. Subdivisions 2 and 3 of section 845 of the executive law, as amended by chapter 491 of the laws of 2010, are amended to read as follows: 2. (A) Each head of a state or local agency, unit of local government, state or local commission, public authority or other organization which employs police officers or peace officers shall transmit to the divi- sion, no later than the fifteenth day of January annually, and in a form and manner prescribed by the division, a list containing the name of every police officer or peace officer employed by his or her agency, government, commission, authority or organization indicating with respect to each officer his or her date of birth, social security number, rank or title, employer, and whether he is employed full-time or part-time. In addition to such annual list, each such head, whenever officers have been newly appointed or have ceased to serve, shall imme- diately transmit to the division, in a form and manner prescribed by the division, a list containing the names of such officers which, in the instance of new appointees, shall include all the information required to be furnished in the annual listing. (B) WHENEVER OFFICERS HAVE CEASED TO SERVE, EACH SUCH HEAD SHALL IMME- DIATELY TRANSMIT TO THE DIVISION, IN A FORM AND MANNER PRESCRIBED BY THE DIVISION, NOTIFICATION THAT ANY SUCH OFFICER HAS CEASED TO SERVE DUE TO A LEAVE OF ABSENCE, RESIGNATION, REMOVAL, REMOVAL FOR CAUSE, OR REMOVAL DURING A PROBATIONARY PERIOD. 3. (A) The division shall establish rules and regulations to provide for a permanent system of identification for each police and peace offi- cer, which shall include procedures for updating the registry upon an S. 2509--C 122 A. 3009--C officer's failure to complete required training within the time limita- tions established in law or regulation. (B) SUCH RULES AND REGULATIONS SHALL ALSO ESTABLISH PROCEDURES, IN ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT, FOR A PROCESS AS DESCRIBED IN THIS PARAGRAPH. WHEN IT SHALL APPEAR TO THE COMMISSIONER OR THE COMMISSIONER'S DESIGNEE THAT A NOTIFICATION OF THE REASON SUCH AN OFFICER CEASED TO SERVE, RECEIVED BY THE COMMISSIONER PURSUANT TO PARA- GRAPH (B) OF SUBDIVISION TWO OF THIS SECTION, IS INACCURATE IN A MATERI- AL RESPECT, THE COMMISSIONER SHALL ATTEMPT TO RESOLVE SUCH DISCREPANCY BY CONTACTING THE HEAD OF THE OFFICE THAT SUBMITTED SUCH NOTIFICATION. IF SUCH INFORMAL EFFORTS DO NOT RESOLVE THE DISCREPANCY PROMPTLY, THE COMMISSIONER MAY ISSUE A NOTICE TO SUCH HEAD AND THE OFFICER WHO IS THE SUBJECT OF SUCH NOTIFICATION OF AN INQUIRY INTO THE ACCURACY OF SUCH RECORD. AFTER NOTICE AND AN OPPORTUNITY FOR EACH TO BE HEARD, IF THE COMMISSIONER FINDS SUCH RECORD TO BE INACCURATE WITH RESPECT TO SUCH MATTER IN A MATERIAL RESPECT, THE COMMISSIONER SHALL PROVIDE NOTICE OF SUCH DETERMINATION TO EACH OF THEM AND, PURSUANT TO SUCH DETERMINATION, MAY CORRECT SUCH RECORD. THE COMMISSIONER SHALL MAINTAIN A CLEAR DOCU- MENTARY RECORD OF BOTH THE ORIGINAL RECORD AND THE CORRECTION MADE. § 11. Subdivision 1 of section 846-h of the executive law is amended by adding two new paragraphs (d) and (e) to read as follows: (D) THE COUNCIL SHALL CREATE A MANDATORY CERTIFICATION PROCESS FOR AGENCIES EMPLOYING POLICE OFFICERS, AS DEFINED IN PARAGRAPHS (B), (C), (D), (E), (F), (J), (K), (L), (O), (P), (S) AND (U) OF SUBDIVISION THIR- TY-FOUR OF SECTION 1.20 OF THE CRIMINAL PROCEDURE LAW. SUCH CERTIF- ICATION PROCESS SHALL INCLUDE THE PROMULGATION OF MANDATORY STANDARDS FOR HIRING PRACTICES, WHICH SHALL INCORPORATE THE RULES AND REGULATIONS PROMULGATED BY THE MUNICIPAL POLICE TRAINING COUNCIL PURSUANT TO SUBDI- VISIONS TWO AND TWO-B OF SECTION EIGHT HUNDRED FORTY OF THIS CHAPTER, AS WELL AS THE REPORTING REQUIREMENTS UNDER SUBDIVISION TWO OF SECTION EIGHT HUNDRED FORTY-FIVE OF THIS CHAPTER AND SUBDIVISION FIVE OF SECTION SEVENTY-FIVE OF THIS CHAPTER, AS MAY BE APPLICABLE TO SUCH AGENCIES AND THEIR PERSONNEL. (E) THE COUNCIL MAY, ON ITS OWN OR UPON REFERRAL FROM THE COMMISSION- ER, REVOKE OR WITHHOLD THE GRANTING OF THE CERTIFICATION UNDER PARAGRAPH (D) OF THIS SUBDIVISION FOR AN AGENCY THAT FAILS TO ADHERE TO THE MANDA- TORY STANDARDS FOR HIRING PRACTICES OR REPORTING REQUIREMENTS OF SUCH PARAGRAPH. § 12. Subdivisions 2, 4 and 5 of section 846-h of the executive law, as added by chapter 521 of the laws of 1988, are amended to read as follows: 2. (a) The law enforcement agency accreditation council shall consist of: (i) [Three] TWO incumbent sheriffs of the state; (ii) [Three] TWO incumbent chiefs of police; (iii) One incumbent deputy sheriff; (iv) One incumbent police officer; (v) The superintendent of state police; (vi) The commissioner of police of the city of New York; (vii) One incumbent chief executive officer of a county of the state; (viii) One incumbent mayor of a city or village of the state; (ix) One incumbent chief executive officer of a town of the state; (x) One member of a statewide labor organization representing police officers as that term is defined in subdivision thirty-four of section 1.20 of the criminal procedure law; S. 2509--C 123 A. 3009--C (xi) One full-time faculty member of a college or university who teaches in the area of criminal justice or police science; [and] (xii) Two members appointed pursuant to subparagraph (ix) of paragraph (c) of this subdivision[.]; (XIII) ONE INCUMBENT CHIEF OF POLICE OR COMMISSIONER OF POLICE FROM A MUNICIPALITY IN THE STATE WITH A POLICE DEPARTMENT CONSISTING OF MORE THAN ONE HUNDRED OFFICERS; (XIV) ONE INCUMBENT SHERIFF IN THE STATE FROM AN AGENCY WITH MORE THAN ONE HUNDRED DEPUTY SHERIFFS; (XV) ONE REPRESENTATIVE OF VICTIMS OF CRIME; AND (XVI) ONE REPRESENTATIVE FROM A COMMUNITY WITH HIGH NUMBERS OF POLICE AN COMMUNITY INTERACTIONS. (b) With the exception of the superintendent of state police and the commissioner of police of the city of New York, each member of the coun- cil shall be appointed by the governor to serve a [two year] TWO-YEAR term. Any member appointed by the governor may be reappointed for addi- tional terms. (c) The governor shall make appointments to the council as follows: (i) Each member who is an incumbent sheriff of the state shall be chosen from a list of two eligible persons submitted by the New York state sheriffs' association; (ii) Each member who is an incumbent chief of police shall be chosen from a list of two eligible persons submitted by the New York state association of chiefs of police; (iii) The member who is an incumbent deputy sheriff shall be chosen from a list of two eligible persons submitted jointly by the New York state sheriffs' association and the New York state deputy sheriffs' association, inc.; (iv) The member who is an incumbent police officer shall be chosen from a list of two eligible persons submitted jointly by the New York state association of chiefs of police and a statewide labor organization representing police officers as that term is defined in subdivision thirty-four of section 1.20 of the criminal procedure law; (v) The member who is an incumbent chief executive officer of a county of the state shall be chosen from a list of two eligible persons submit- ted by the New York state association of counties; (vi) The member who is an incumbent mayor of a city or village of the state shall be chosen from a list of two eligible persons submitted by the New York state conference of mayors; (vii) The member who is an incumbent chief executive officer of a town of the state shall be chosen from a list of two eligible persons submit- ted by the association of towns of the state of New York; (viii) The governor may appoint any eligible person to be a member who is an active member of a statewide labor organization representing police officers; [and] (ix) The temporary president of the senate and the speaker of the assembly shall each nominate one member as provided in subparagraph (xii) of paragraph (a) of this subdivision[.]; AND (X) THE MEMBERS WHO ARE LISTED IN SUBPARAGRAPHS (XIII), (XIV), (XV), AND (XVI) OF PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE APPOINTED BY THE GOVERNOR. (d) In making such appointments, the governor shall select individuals from municipalities that are representative, to the extent possible, of the varying sizes of communities and law enforcement agencies in the state. S. 2509--C 124 A. 3009--C (e) Any member chosen to fill a vacancy, including a vacancy in the chairperson, created otherwise than by expiration of term shall be appointed by the governor for the unexpired term of the member he is to succeed. Any such vacancy shall be filled in the same manner as the original appointment. (f) Any member who shall cease to hold the position which qualified him for such appointment shall cease to be a member of the council. 4. The governor shall designate from among the members of the council a chairperson who shall serve at the pleasure of the governor. DURING A VACANCY OF THE CHAIRPERSON THE COMMISSIONER OF THE DIVISION OF CRIMINAL JUSTICE SERVICES SHALL SERVE AS THE TEMPORARY CHAIRPERSON. 5. The law enforcement agency accreditation council shall meet at least four times in a year. Special meetings may be called by the chair- person and shall be called by him at the request of the governor or upon the written request of [nine] TEN members of the council. The council may establish its own QUORUM rules and procedures with respect to the conduct of its meetings and other affairs not inconsistent with law; PROVIDED, HOWEVER, THAT RECOMMENDATIONS MADE BY THE COUNCIL IN ACCORD- ANCE WITH PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, OR THE MANDATORY STANDARDS FOR HIRING PRACTICES PROMULGATED IN ACCORDANCE WITH PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION SHALL REQUIRE THE AFFIRMATIVE VOTE OF TEN MEMBERS OF THE COUNCIL. § 13. Paragraphs (b), (c), (d), (e), (f), (j), (k), (l), (o), (p), (s) and (u) of subdivision 34 of section 1.20 of the criminal procedure law, paragraph (e) as amended by chapter 662 of the laws of 1972, paragraph (j) as amended by chapter 858 of the laws of 1972, paragraph (k) as separately amended by chapters 282 and 877 of the laws of 1974, para- graph (f) as amended by chapter 22 of the laws of 1974, paragraph (l) as added by chapter 282 of the laws of 1974, paragraph (o) as amended by chapter 599 of the laws of 2000, paragraph (p) as amended by chapter 476 of the laws of 2018, paragraph (s) as added by chapter 424 of the laws of 1998 and paragraph (u) as added by chapter 558 of the laws of 2005, are amended to read as follows: (b) Sheriffs, under-sheriffs and deputy sheriffs of counties outside of New York City WHERE SUCH DEPARTMENT IS CERTIFIED IN ACCORDANCE WITH PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-SIX-H OF THE EXECUTIVE LAW; (c) A sworn officer of an authorized county or county parkway police department WHERE SUCH DEPARTMENT IS CERTIFIED IN ACCORDANCE WITH PARA- GRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-SIX-H OF THE EXECUTIVE LAW; (d) A sworn officer of an authorized police department or force of a city, town, village or police district WHERE SUCH DEPARTMENT OR FORCE IS CERTIFIED IN ACCORDANCE WITH PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-SIX-H OF THE EXECUTIVE LAW; (e) A sworn officer of an authorized police department of an authority or a sworn officer of the state regional park police in the office of parks and recreation WHERE SUCH DEPARTMENT OR FORCE IS CERTIFIED IN ACCORDANCE WITH PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-SIX-H OF THE EXECUTIVE LAW; (f) A sworn officer of the capital police force of the office of general services WHERE SUCH FORCE IS CERTIFIED IN ACCORDANCE WITH PARA- GRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-SIX-H OF THE EXECUTIVE LAW; (j) A sworn officer of the division of law enforcement in the depart- ment of environmental conservation WHERE SUCH DIVISION IS CERTIFIED IN S. 2509--C 125 A. 3009--C ACCORDANCE WITH PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-SIX-H OF THE EXECUTIVE LAW; (k) A sworn officer of a police force of a public authority created by an interstate compact WHERE SUCH FORCE IS CERTIFIED IN ACCORDANCE WITH PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-SIX-H OF THE EXECUTIVE LAW; (l) Long Island railroad police[.] WHERE SUCH DEPARTMENT OR FORCE IS CERTIFIED IN ACCORDANCE WITH PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-SIX-H OF THE EXECUTIVE LAW; (o) A sworn officer of the [water-supply police employed by the city of New York, appointed to protect the sources, works, and transmission of water supplied to the city of New York, and to protect persons on or in the vicinity of such water sources, works, and transmission.] NEW YORK CITY DEPARTMENT OF ENVIRONMENTAL PROTECTION POLICE, EMPLOYED BY THE CITY OF NEW YORK, APPOINTED TO PROTECT THE SOURCES, WORKS, AND TRANS- MISSION OF WATER SUPPLIED TO THE CITY OF NEW YORK, AND TO PROTECT PERSONS ON OR IN THE VICINITY OF SUCH WATER SOURCES, WORKS, AND TRANS- MISSION WHERE SUCH DEPARTMENT IS CERTIFIED IN ACCORDANCE WITH PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-SIX-H OF THE EXEC- UTIVE LAW; (p) Persons appointed as railroad police officers pursuant to section eighty-eight of the railroad law[.] WHERE SUCH DEPARTMENT OR FORCE IS CERTIFIED IN ACCORDANCE WITH PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-SIX-H OF THE EXECUTIVE LAW; (s) A university police officer appointed by the state university pursuant to paragraph 1 of subdivision two of section three hundred fifty-five of the education law[.] WHERE SUCH DEPARTMENT OR FORCE IS CERTIFIED IN ACCORDANCE WITH PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-SIX-H OF THE EXECUTIVE LAW; (u) Persons appointed as Indian police officers pursuant to section one hundred fourteen of the Indian law[.] WHERE SUCH DEPARTMENT OR FORCE IS CERTIFIED IN ACCORDANCE WITH PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED FORTY-SIX-H OF THE EXECUTIVE LAW; § 14. The opening paragraph of paragraph (b) of subdivision 1 and paragraph a of subdivision 2 of section 209-q of the general municipal law, the opening paragraph of paragraph (b) as amended by chapter 551 of the laws of 2001 and paragraph a of subdivision 2 as amended by chapter 435 of the laws of 1997, are amended and a new paragraph (b-1) is added to subdivision 1 to read as follows: [A] EXCEPT AS PROVIDED IN PARAGRAPH (B-1) OF THIS SUBDIVISION A certificate attesting to satisfactory completion of an approved munici- pal police basic training program awarded by the executive director of the municipal police training council pursuant to this subdivision shall remain valid: (B-1) A CERTIFICATE AWARDED UNDER PARAGRAPH (B) OF THIS SUBDIVISION MAY BE PERMANENTLY INVALIDATED UPON AN OFFICER'S REMOVAL FOR CAUSE IN ACCORDANCE WITH SUBDIVISIONS TWO AND THREE OF SECTION EIGHT HUNDRED FORTY-FIVE OF THE EXECUTIVE LAW. AN OFFICER WHOSE CERTIFICATE IS INVALI- DATED UNDER THIS PARAGRAPH MAY BE INELIGIBLE FOR ANY FUTURE CERTIF- ICATION. a. The term "police officer", as used in this section, shall mean a [member of a police force or other organization of a municipality or a detective or rackets investigator employed by the office of the district attorney in any county located in a city of one million or more persons who is responsible for the prevention or detection of crime and the enforcement of the general criminal laws of the state, but shall not S. 2509--C 126 A. 3009--C include any person serving as such solely by virtue of his occupying any other office or position, nor shall such term include a sheriff or under-sheriff, the sheriff or deputy sheriff of the city of New York, commissioner of police, deputy or assistant commissioner of police, chief of police, deputy or assistant chief of police or any person having an equivalent title who is appointed or employed by a county, city, town, village or police district to exercise equivalent superviso- ry authority] PERSON DEFINED AS A POLICE OFFICER PURSUANT TO SUBDIVISION THIRTY-FOUR OF SECTION 1.20 OF THE CRIMINAL PROCEDURE LAW WHO IS APPOINTED OR EMPLOYED BY A COUNTY, CITY, TOWN, VILLAGE OR POLICE DISTRICT. § 15. Paragraph (a-1) of subdivision 4 of section 1279 of the public authorities law, as added by chapter 104 of the laws of 2020, is amended to read as follows: (a-1) to receive and investigate complaints from any source, or upon his or her own initiative, concerning allegations of corruption, fraud, use of excessive force, criminal activity, conflicts of interest or abuse by any police officer under the jurisdiction of the office of the metropolitan transportation authority AND PROMPTLY INFORM THE DIVISION OF CRIMINAL JUSTICE SERVICES, IN THE FORM AND MANNER AS PRESCRIBED BY THE DIVISION, OF SUCH ALLEGATIONS AND THE PROGRESS OF INVESTIGATIONS RELATED THERETO UNLESS SPECIAL CIRCUMSTANCES REQUIRE CONFIDENTIALITY. NOTHING IN THIS PARAGRAPH SHALL REQUIRE THE DIVISION OF CRIMINAL JUSTICE SERVICES TO PARTICIPATE IN THE INVESTIGATION OF SUCH ALLEGATIONS OR TAKE ACTION OR PREVENT THE DIVISION OF CRIMINAL JUSTICE SERVICES FROM TAKING ACTION AUTHORIZED PURSUANT TO SUBDIVISION THREE OF SECTION EIGHT HUNDRED FORTY-FIVE OF THE EXECUTIVE LAW IN THE TIME AND MANNER DETERMINED BY THE COMMISSIONER OF THE DIVISION OF CRIMINAL JUSTICE SERVICES. § 16. Paragraphs (c) and (d) of subdivision 1 of section 58 of the civil service law, as amended by chapter 244 of the laws of 2013, are amended to read as follows: (c) he or she satisfies the height, weight [and], physical AND PSYCHO- LOGICAL fitness requirements prescribed by the municipal police training council pursuant to the provisions of section eight hundred forty of the executive law; and (d) he or she is of good moral character AS DETERMINED IN ACCORDANCE WITH THE BACKGROUND INVESTIGATION STANDARDS OF THE MUNICIPAL POLICE TRAINING COUNCIL PURSUANT TO THE PROVISIONS OF SECTION EIGHT HUNDRED FORTY OF THE EXECUTIVE LAW. § 17. Subdivision 5 of section 58 of the civil service law, as amended by chapter 560 of the laws of 1978, is amended to read as follows: 5. The provisions of this section shall not apply to [the police department of the city of New York or to] the investigatory personnel of the office of the district attorney in any county, including any county within the city of New York. § 18. This act shall take effect on the one hundred eightieth day after it shall have become a law; provided however the addition of para- graphs (d) and (e) of subdivision 1 of section 846-h of the executive law made by section eleven of this act and the amendments to subdivision 34 of section 1.20 of the criminal procedure law made by section thir- teen of this act pertaining to the required certification of police agencies, and the amendments to section fifty-eight of the civil service law made by section seventeen of this act shall take effect two years after such effective date. PART CCC S. 2509--C 127 A. 3009--C Section 1. Subparagraph (A) of paragraph 1 of subsection (oo) of section 606 of the tax law, as amended by section 1 of part RR of chap- ter 59 of the laws of 2018, is amended and a new paragraph 6 is added to read as follows: (A) For taxable years beginning on or after January first, two thou- sand ten and before January first, two thousand twenty-five, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to one hundred percent of the amount of credit allowed the taxpayer with respect to a certified historic structure, AND ONE HUNDRED FIFTY PERCENT OF THE AMOUNT OF CRED- IT ALLOWED THE TAXPAYER WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE THAT IS A SMALL PROJECT, under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47, with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed five million dollars. For taxable years beginning on or after January first, two thousand twenty- five, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to thirty percent of the amount of credit allowed the taxpayer with respect to a certified historic structure under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47, with respect to a certified historic structure located within the state; provided, however, the credit shall not exceed one hundred thou- sand dollars. (6) FOR PURPOSES OF THIS SUBSECTION THE TERM "SMALL PROJECT" MEANS QUALIFIED REHABILITATION EXPENDITURES TOTALING TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OR LESS. § 2. Subparagraph (i) of paragraph (a) of subdivision 26 of section 210-B of the tax law, as amended by section 2 of part RR of chapter 59 of the laws of 2018, is amended and a new paragraph (f) is added to read as follows: (i) For taxable years beginning on or after January first, two thou- sand ten, and before January first, two thousand twenty-five, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to one hundred percent of the amount of credit allowed the taxpayer for the same taxable year with respect to a certified historic structure, AND ONE HUNDRED FIFTY PERCENT OF THE AMOUNT OF CREDIT ALLOWED THE TAXPAYER WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE THAT IS A SMALL PROJECT, under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47, with respect to a certified historic structure located with- in the state. Provided, however, the credit shall not exceed five million dollars. (F) FOR PURPOSES OF THIS SUBDIVISION "SMALL PROJECT" MEANS QUALIFIED REHABILITATION EXPENDITURES TOTALING TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OR LESS. § 3. Subparagraph (A) of paragraph 1 of subdivision (y) of section 1511 of the tax law, as amended by section 3 of part RR of chapter 59 of the laws of 2018, is amended and a new paragraph 6 is added to read as follows: (A) For taxable years beginning on or after January first, two thou- sand ten and before January first, two thousand twenty-five, a taxpayer shall be allowed a credit as hereinafter provided, against the tax S. 2509--C 128 A. 3009--C imposed by this article, in an amount equal to one hundred percent of the amount of credit allowed the taxpayer with respect to a certified historic structure, AND ONE HUNDRED FIFTY PERCENT OF THE AMOUNT OF CRED- IT ALLOWED THE TAXPAYER WITH RESPECT TO A CERTIFIED HISTORIC STRUCTURE THAT IS A SMALL PROJECT, under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47, with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed five million dollars. For taxable years beginning on or after January first, two thousand twenty- five, a taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article, in an amount equal to thirty percent of the amount of credit allowed the taxpayer with respect to a certified historic structure under internal revenue code section 47(c)(3), determined without regard to ratably allocating the credit over a five year period as required by subsection (a) of such section 47 with respect to a certified historic structure located within the state. Provided, however, the credit shall not exceed one hundred thousand dollars. (6) FOR PURPOSES OF THIS SUBDIVISION "SMALL PROJECT" MEANS QUALIFIED REHABILITATION EXPENDITURES TOTALING TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OR LESS. § 4. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2022. PART DDD Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 21 to read as follows: (21) THE AMOUNT OF ANY GAIN ADDED BACK TO DETERMINE ENTIRE NET INCOME IN A PREVIOUS TAXABLE YEAR PURSUANT TO SUBPARAGRAPH TWENTY-SEVEN OF PARAGRAPH (B) OF SUBDIVISION NINE OF THIS SECTION THAT IS INCLUDED IN FEDERAL GROSS INCOME FOR THE TAXABLE YEAR. § 2. Paragraph (b) of subdivision 9 of section 208 of the tax law is amended by adding a new subparagraph 27 to read as follows: (27) THE AMOUNT OF ANY GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE TAXABLE YEAR BY SUBPARAGRAPH (A) OF PARAGRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE. § 3. Subsection (b) of section 612 of the tax law is amended by adding a new paragraph 42 to read as follows: (42) THE AMOUNT OF ANY GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE TAXABLE YEAR BY SUBPARAGRAPH (A) OF PARAGRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE. § 4. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 43 to read as follows: (43) THE AMOUNT OF ANY GAIN ADDED BACK TO FEDERAL ADJUSTED GROSS INCOME IN A PREVIOUS TAXABLE YEAR PURSUANT TO PARAGRAPH FORTY-TWO OF SUBDIVISION (B) OF THIS SECTION THAT IS INCLUDED IN FEDERAL GROSS INCOME FOR THE TAXABLE YEAR. § 5. Paragraph 1 of subdivision (b) of section 1503 of the tax law is amended by adding a new subparagraph (W) to read as follows: (W) THE AMOUNT OF ANY GAIN ADDED BACK TO DETERMINE ENTIRE NET INCOME IN A PREVIOUS TAXABLE YEAR PURSUANT TO SUBPARAGRAPH (Z) OF PARAGRAPH TWO OF THIS SUBDIVISION THAT IS INCLUDED IN FEDERAL GROSS INCOME FOR THE TAXABLE YEAR. S. 2509--C 129 A. 3009--C § 6. Paragraph 2 of subdivision (b) of section 1503 of the tax law is amended by adding a new subparagraph (Z) to read as follows: (Z) THE AMOUNT OF ANY GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE TAXABLE YEAR BY SUBPARAGRAPH (A) OF PARAGRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE. § 7. Paragraph (a) of subdivision 8 of section 11-602 of the adminis- trative code of the city of New York is amended by adding a new subpara- graph 15 to read as follows: (15) THE AMOUNT OF ANY GAIN ADDED BACK TO DETERMINE ENTIRE NET INCOME IN A PREVIOUS TAXABLE YEAR PURSUANT TO SUBPARAGRAPH TWENTY-TWO OF PARA- GRAPH (B) OF THIS SUBDIVISION THAT IS INCLUDED IN FEDERAL GROSS INCOME FOR THE TAXABLE YEAR. § 8. Paragraph (b) of subdivision 8 of section 11-602 of the adminis- trative code of the city of New York is amended by adding a new subpara- graph 22 to read as follows: (22) THE AMOUNT OF ANY GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE TAXABLE YEAR BY SUBPARAGRAPH (A) OF PARAGRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE. § 9. Paragraph (a) of subdivision 8 of section 11-652 of the adminis- trative code of the city of New York is amended by adding a new subpara- graph 16 to read as follows: (16) THE AMOUNT OF ANY GAIN ADDED BACK TO DETERMINE ENTIRE NET INCOME IN A PREVIOUS TAXABLE YEAR PURSUANT TO SUBPARAGRAPH TWENTY-THREE OF PARAGRAPH (B) OF SUBDIVISION EIGHT OF THIS SECTION IS INCLUDED IN FEDER- AL GROSS INCOME FOR THE TAXABLE YEAR. § 10. Paragraph (b) of subdivision 8 of section 11-652 of the adminis- trative code of the city of New York is amended by adding a new subpara- graph 23 to read as follows: (23) THE AMOUNT OF ANY GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE TAXABLE YEAR BY SUBPARAGRAPH (A) OF PARAGRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE. § 11. Subdivision (b) of section 11-1712 of the administrative code of the city of New York is amended by adding a new paragraph 39 to read as follows: (39) THE AMOUNT OF ANY GAIN EXCLUDED FROM FEDERAL GROSS INCOME FOR THE TAXABLE YEAR BY SUBPARAGRAPH (A) OF PARAGRAPH (1) OF SUBSECTION (A) OF SECTION 1400Z-2 OF THE INTERNAL REVENUE CODE. § 12. Subdivision (c) of section 11-1712 of the administrative code of the city of New York is amended by adding a new paragraph 38 to read as follows: (38) THE AMOUNT OF ANY GAIN ADDED BACK TO FEDERAL ADJUSTED GROSS INCOME IN A PREVIOUS TAXABLE YEAR PURSUANT TO PARAGRAPH THIRTY-NINE OF SUBDIVISION (B) OF THIS SECTION THAT IS INCLUDED IN FEDERAL GROSS INCOME FOR THE TAXABLE YEAR. § 13. This act shall take effect immediately and shall apply to taxa- ble years beginning on or after January 1, 2021. PART EEE Section 1. There is hereby created an excluded worker fund to be administered by the department of labor. § 2. 1. "Excluded worker" means an individual whose principal place of residence is in New York state, and, who: (a) does not meet the eligibility requirements: (i) for unemployment insurance benefits under article eighteen of the labor law, including benefits payable to federal civilian employees and S. 2509--C 130 A. 3009--C to ex-servicemen and servicewomen pursuant to chapter 85 of the United States Code, and benefits authorized to be used for the self-employment assistance program pursuant to the Federal-State Extended Unemployment Compensation Act of 1970, provided that such individual is also not eligible to receive unemployment insurance benefits under comparable laws in any other state and further provided that such ineligibility for unemployment insurance benefits is not pursuant to disqualification for benefits under section 593 of the labor law; (ii) for insurance or assistance payments under any programs provided for by Title II of the federal CARES Act; (iii) for insurance or assistance payments under any program provided for by the federal continued assistance for unemployed workers act of 2020 within the consolidated appropriations act, 2021; or (iv) for insurance or assistance payments under any programs provided for by title ix of the federal american rescue plan act of 2021. (b) has not actually received payments from any of the sources listed in paragraph (a) of this subsection, unless such received payments were made in error by the administering agency and such payments were or are to be recovered by the administering agency following a final order of the agency; and (c) suffered a loss of work-related earnings or household income of an amount determined by the commissioner of labor from the week beginning February twenty-third, two thousand twenty due to: (i) becoming or continuing status as unemployed, partially unemployed, unable to work, or unavailable to work due to the COVID-19 pandemic and during the state of emergency declared by executive order two hundred two of two thousand twenty, provided that for the purposes of this section, "partially unemployed" shall mean a reduction of earnings due to a reduction of hours of an amount determined by the commissioner of labor consistent with provisions of the labor law and applicable rules and regulations in effect as of the effective date of this act; or (ii) the individual has become the breadwinner or major source of income for a household because the head of the household has died or become disabled during the state of emergency declared by executive order two hundred two of two thousand twenty, provided that no other individual in the same household is receiving benefits under article two or nine of the workers' compensation law for the same reason. 2. Eligibility. Excluded workers as defined in this act shall be eligible for benefits upon the first full date of meeting such defi- nition, subject to the limitations as to maximum and minimum amounts and duration and other conditions and limitations in this act. The "benefit period" shall be retroactive from on or after March twenty-seventh, two thousand twenty but no later than April first, two thousand twenty-one. 3. Benefit computation. The benefit of the excluded worker shall be computed as follows: (a) The benefit for each excluded worker who filed a tax return for either tax years 2018, 2019, or 2020 with the department of taxation and finance using a valid United States individual taxpayer identification number (ITIN) and any other excluded worker who is deemed eligible by the commissioner of labor for benefits pursuant to paragraph (k) or paragraph (l) of subsection five of this section shall be fifteen thou- sand six hundred dollars minus an automatic deduction of seven hundred eighty dollars, which shall be remitted to the department of taxation and finance for the purposes of satisfying the provisions of part five of article twenty-two of the tax law. All such deductions received by the commissioner of the department of taxation and finance pursuant to S. 2509--C 131 A. 3009--C this paragraph shall be deposited and disposed of pursuant to section one hundred seventy-one-a of the tax law applicable to article twenty- two of the tax law. (b) The benefit for all other excluded workers deemed eligible by the commissioner of labor for benefits except those deemed eligible pursuant to paragraph (j), (k), or (l) of subsection five of this section shall be three thousand two hundred dollars minus an automatic deduction of one hundred sixty dollars, which shall be remitted to the department of taxation and finance for the purposes of satisfying the provisions of part five of article twenty-two of the tax law. All such deductions received by the commissioner of the department of taxation and finance pursuant to this paragraph shall be deposited and disposed of pursuant to section one hundred seventy-one-a of the tax law applicable to arti- cle twenty-two of the tax law. (c) When an excluded worker files a New York personal income tax return for tax year 2021, the excluded worker may reconcile any tax liability for such tax year and claim any refund to which the excluded worker is entitled. 4. Payment of benefits. (a) All payment of benefits pursuant to this act shall be subject to the appropriation of funds for the purpose of this act. (b) Benefits shall not be available to any excluded worker if such excluded worker's gross work-related earnings received in the previous twelve months prior to the effective date of this act were greater than twenty-six thousand two hundred and eight dollars. (c) The commissioner of labor shall ensure that all total benefits are paid pursuant to the provisions of this subsection provided that such beneficiary certifies his or her eligibility, lack of employment, and ability to work, in a manner determined by the commissioner of labor until all benefits made pursuant to this act are made to the excluded worker. 5. Application for benefits. Notwithstanding anything in this act to the contrary, each individual eligible for benefits pursuant to this act shall make an application to the commissioner of labor in such form and at such time as the commissioner of labor may prescribe, which applica- tion shall establish proof of identity, proof of residency within New York state, and proof of work-related eligibility as follows: (a) In order to establish identity, an applicant shall be required to produce one or more of the following documents to establish at least four points of proof of identity: (i) A non-expired New York state driver's license issued by the department of motor vehicles, which is worth four points; (ii) A non-expired New York state non-driver identification card issued by the department of motor vehicles, which is worth four points; (iii) A non-expired United States passport, which is worth four points; (iv) An IDNYC identification card, which is worth four points; (v) A non-expired passport issued by a country other than the United States that is machine readable, which is worth three points; (vi) A New York state inpatient photo identification card issued by the office of mental health, which is worth two points; (vii) A marriage certificate, which is worth one point; (viii) A divorce decree, which is worth one point; (ix) A non-expired New York city department of parks and recreation membership card, which is worth one point; S. 2509--C 132 A. 3009--C (x) A birth certificate issued by a foreign country, which is worth one point; (xi) A foreign issued identification card including but not limited to a consular identification card or any other photo identification card issued by another country to its citizens, which is worth one point; (xii) A diploma or transcript from a high school, college, or univer- sity in the United States, which is worth one point; and/or (xiii) Any other document the commissioner of labor deems relevant, which the commissioner of labor shall assign a reasonable point value less than four points. (b) In order to establish residency, an applicant shall be required to produce one or more of the following items each of which must show the applicant's name and residential address located within the state of New York, provided that all applicants must show both proof of residency prior to March twenty-seventh, two thousand twenty, as well as proof of ongoing or current residency. Proof of prior and ongoing or current residency may be established in the same document, if applicable. Docu- ments establishing proof of ongoing or current residency other than those specified in subparagraphs (i), (ii), and (iii) of this paragraph must be dated no earlier than thirty days prior to the effective date of this act: (i) A non-expired New York state driver's license issued by the department of motor vehicles; (ii) A non-expired New York state non-driver identification card issued by the department of motor vehicles; (iii) A non-expired IDNYC identification card; (iv) A copy of a utility bill; (v) A bank or credit card statement; (vi) A letter addressed to the applicant from the New York City Hous- ing Authority; (vii) A letter addressed to the applicant from a homeless shelter indicating that the applicant currently resides at the homeless shelter; (viii) A current lease, mortgage payment, or property tax statement; (ix) A letter addressed to the applicant from a non-profit organiza- tion that provides services to the homeless; or (x) Any other document the commissioner of labor deems acceptable. (c) Application forms prescribed by the commissioner of labor shall not state (i) the documents an applicant used to prove identity; (ii) an applicant's ineligibility for a social security number, where applica- ble; or (iii) an applicant's citizenship or immigration status. (d) An applicant may submit the same documents to establish identity and residency. (e) At least one of the documents submitted to establish identity and/or residency must have a photo of the applicant unless the applicant is accompanied by a caretaker who can demonstrate proof of relationship. (f) At least one of the documents submitted to establish identity and/or residency must have the applicant's date of birth. (g) All documents submitted by an applicant to establish identity and residency must be: (i) certified by the issuing agency; (ii) unexpired unless specifically noted; (iii) in English, or accompanied by a certi- fied English language translation; and (iv) not mutilated or damaged. (h) Applicants shall not be required to prove that they are lawfully present in the United States. (i) Applicants shall certify in a form and manner the commissioner of labor shall prescribe: S. 2509--C 133 A. 3009--C (i) that the applicant meets the definition of excluded worker under this act; (ii) the period of time within the benefit period that they were an excluded worker as defined by this act; and (iii) that the applicant was otherwise able to work and available for work during the benefit period except that the individual was unem- ployed, partially unemployed, unable to work, or unavailable to work during such period of time within the benefit period. (j) In order to establish work-related eligibility and qualify for the benefits described in paragraph (a) of subsection 3 of this section, an applicant may submit proof that the applicant filed a tax return for either tax years 2018, 2019, or 2020 with the department of taxation and finance using a valid United States individual taxpayer identification number (ITIN). (k) Notwithstanding paragraph (j) of this subsection, an applicant also may qualify for the benefits described in paragraph (a) of subsection 3 of this section by submitting: (i) a letter from an employer documenting the dates of work of the applicant and the reason the applicant is no longer employed by the employer; (ii) at least six weeks of pay stubs from the six month period prior to the date the applicant certifies he or she became eligible for bene- fits pursuant to this act; (iii) at least six weeks of wage statements from the six month period prior to the date the applicant certifies he or she became eligible for benefits pursuant to this act; (iv) a form W-2 or 1099 from tax year 2019 or 2020 demonstrating wages or income; or (v) a wage notice provided pursuant to section 195 of the labor law that documents employment for a period of time within six months prior to the date the applicant certifies he or she became eligible for bene- fits pursuant to this act. (l) The commissioner of labor may, by regulation, establish alterna- tive documents that sufficiently demonstrate an applicant's qualifica- tion for the benefits described in paragraph (a) of subsection 3 of this section, provided that such additional documents clearly demonstrate that the applicant was employed and received monetary earnings for a period of greater than six weeks in the six month period prior to the date the applicant certifies that he or she became eligible for benefits pursuant to this act. (m) If an applicant cannot demonstrate the proof of work-related eligibility described in paragraphs (j), (k), and (l) of this subsection, an applicant will not qualify for the benefits described in paragraph (a) of subsection 3 of this section. Such applicant may, however, qualify for the benefits described in paragraph (b) of subsection 3 of this section if the applicant otherwise meets the iden- tity and residency requirements described in paragraphs (a) and (b) of this subsection and submits proof of work-related eligibility as described in paragraph (n) of this subsection. (n) The commissioner of labor shall promulgate regulations in order to effectuate this section. Such regulations shall include the assignment of point values to each document that an applicant may provide to the commissioner of labor to prove work-related eligibility pursuant to paragraph (m) of this subsection. The commissioner of labor shall only make a determination that an applicant has demonstrated work-related eligibility pursuant to paragraph (m) of this subsection if the appli- S. 2509--C 134 A. 3009--C cant presents proof meeting the regulations. The following documents are examples of the types of documents to which the commissioner of labor may assign point values and review as part of determining an applicant's work-related eligibility for the benefits described in paragraph (b) of subsection 3 of this section: pay stubs, wage statements, wage notices provided pursuant to section 195 of the labor law, any other notice or acknowledgment of pay rate as provided by the department of labor, bank records demonstrating a pattern of payment or deposits, receipts or records from a pay card with verification of documentation demonstrating a pattern of deposits, and/or similar documents demonstrating a pattern of employment. (o) Prior to the commissioner of labor finalizing regulations required by this section, for purposes of ensuring the integrity of the process, the attorney general shall review, and the state comptroller may, in his or her sole discretion, review, such regulations and any other rules or guidance to implement this program in consultation with the department of labor, in order to ensure that state funds are adequately protected against fraud and abuse. The commissioner of labor shall not approve the payment of any benefits pursuant to this act until such regulations have been approved by the attorney general in a manner consistent with this paragraph, and which approval shall be published together with such regulations in the state register. Provided further that nothing herein shall be deemed in any way to diminish the existing jurisdiction of either official with respect to such program, and the comptroller may continue to audit and the attorney general may defend any action related thereto. 6. Review of denied application. Any individual claiming benefits under this act whose claim is rejected in whole or in part by the commissioner of labor shall be entitled to request a review of such claim. The review shall be conducted in a manner specified by the commissioner of labor. 7. Recoupment of benefits. The commissioner of labor may require repayment of any benefits paid to an excluded worker if the commissioner of labor determines that the payments were made in error provided that such excluded worker is notified of such error within one year of the provision of benefits. The department of labor shall offer such excluded worker the opportunity to enter into an installment payment plan or any other accommodation for repayment as provided by the commissioner. 8. Penalties for fraudulent practices. Any applicant or claimant who, knowingly and with intent to defraud presents, causes to be presented, or prepares with knowledge or belief that it will be presented to or by the commissioner of labor, or any agent thereof, any written statement as part of, or in support of, an application for the issuance of or claim for payment for excluded worker benefits, which the applicant or claimant knows to: (i) contain a false statement or representation concerning any fact material thereto; or (ii) omits any fact material thereto, shall be guilty of a class E felony. Upon conviction, the court in addition to any other authorized sentence, may order forfeiture of all rights to compensation or payments of any benefit, and may also require restitution of any amount received as a result of a violation of this subsection. Consistent with the provisions of the criminal proce- dure law, in any prosecution alleging a violation of this subsection in which the act or acts alleged may also constitute a violation of the penal or other law, the prosecuting official may charge a person pursu- ant to the provisions of this section and in the same accusatory instru- ment with a violation of such other law. Any penalty moneys shall be S. 2509--C 135 A. 3009--C deposited to the credit of the general fund of the state. The attorney general may prosecute every person charged with the commission of a criminal offense in violation of this act pursuant to section 214 of the labor law. 9. Prohibited use of funds. The commissioner of labor shall not use any money appropriated for the operation of the program created pursuant to this act in whole or in part for any purpose or in any manner which (a) would permit its substitution for, or a corresponding reduction in, federal funds that would be available in its absence to finance expenditures for the administration of this act; or (b) would cause the appropriate agency of the United States government to with- hold any part of an administrative grant which would otherwise be made. § 3. Confidentiality of excluded workers' records. 1. Restrictions on disclosure. (a) Except where necessary to comply with a lawful court order, judicial warrant signed by a judge appointed pursuant to article III of the United States constitution, or subpoena for individual records issued pursuant to the criminal procedure law or the civil prac- tice law and rules, or in accordance with subsection 2 or 3 of this section, no record or portion thereof relating to a claimant or worker who has filed a claim for benefits pursuant to this act is a public record and no such record shall be disclosed, redisclosed, released, disseminated or otherwise published or made available. (b) For purposes of this act: (i) "record" means a claim file, a file regarding a complaint or circumstances for which no claim has been made, and/or any records main- tained by the board in electronic databases in which individual claim- ants or workers are identifiable, or any other information relating to any person who has heretofore or hereafter filed a claim for benefits pursuant to this act, including a copy or oral description of a record which is or was in the possession or custody of the department of labor, its officers, members, employees or agents. (ii) "person" means any natural person, corporation, association, partnership, or other public or private entity. (iii) "individually identifiable information" means any data concern- ing any claim or potential claim that is linked to an identifiable work- er or other natural person, including but not limited to a photo image, social security number or tax identification number, telephone number, place of birth, country of origin, place of employment, school or educa- tional institution attended, source of income, status as a recipient of public benefits, a customer identification number associated with a public utilities account, or medical or disability information. 2. Authorized disclosure. Records which contain individually identifi- able information may, unless otherwise prohibited by law, be disclosed to: (a) those officers, members and employees of the department of labor if such disclosure is necessary to the performance of their official duties pursuant to a purpose of the department of labor required to be accomplished by statute or executive order or otherwise necessary to act upon an application for benefits submitted by the person who is the subject of the particular record; (b) officers or employees of another governmental unit, or agents and/or contractors of the governmental unit at the request and/or direc- tion of the governmental unit, if the information sought to be disclosed is necessary to act upon an application for benefits submitted by the person who is the subject of the particular record; S. 2509--C 136 A. 3009--C (c) a judicial or administrative officer or employee in connection with an administrative or judicial proceeding if the information sought to be disclosed is necessary to act upon an application for benefits submitted by the person who is the subject of the particular record; and (d) a person engaged in bona fide statistical research, including but not limited to actuarial studies and health and safety investigations, which are authorized by statute or regulation of the department of labor or other governmental agency. Individually identifiable information shall not be disclosed unless the researcher has entered into an agree- ment not to disclose any individually identifiable information which contains restrictions no less restrictive than the restrictions set forth in this section and which includes an agreement that any research findings will not disclose individually identifiable information. 3. Individual authorization. Notwithstanding the restrictions on disclosure set forth under subsection one of this section, an excluded worker may authorize the release, re-release or publication of his or her record to a specific person not otherwise authorized to receive such record, by submitting written authorization for such release to the department of labor on a form prescribed by the commissioner of labor or by a notarized original authorization specifically directing the depart- ment of labor to release the excluded worker's records to such person. However, no such authorization directing disclosure of records to a prospective employer shall be valid; nor shall an authorization permit- ting disclosure of records in connection with assessing fitness or capa- bility for employment be valid, and no disclosure of records shall be made pursuant thereto. It shall be unlawful for any person to consider for the purpose of assessing eligibility for a benefit, or as the basis for an employment-related action, an individual's failure to provide authorization under this subsection. 4. For the purposes of this act, whenever disclosure of records is sought pursuant to a lawful court order, judicial warrant signed by a judge pursuant to Article III of the U.S. Constitution, or subpoena for individual records properly issued pursuant to the criminal procedure law or the civil practice law and rules or pursuant to subsection two or three of this section, only those records, documents, and information specifically sought may be disclosed, and any such disclosure shall be limited to such records as are necessary to fulfill the purpose of such disclosure. 5. The commissioner of labor shall require any person or entity that receives or has access to records to certify to the commissioner of labor that, before such receipt or access, such person or entity shall not: (a) use such records or information for civil immigration purposes; or (b) disclose such records or information to any agency that primarily enforces immigration law or to any employee or agent of any such agency unless such disclosure is pursuant to a cooperative arrangement between city, state and federal agencies which arrangement does not enforce immigration law and which disclosure is limited to the specific records or information being sought pursuant to such arrangement. Violation of such certification shall be a class A misdemeanor. In addition to any records required to be kept pursuant to subdivision (c) of section 2721 of title 18 of the United States code, any person or entity certifying pursuant to this paragraph shall keep for a period of five years records of all uses and identifying each person or entity that primarily enforces immigration law that received department records or information from such certifying person or entity. Such records shall be maintained S. 2509--C 137 A. 3009--C in a manner and form prescribed by the commissioner of labor and shall be available for inspection by the commissioner of labor or his or her designee upon his or her request. (c) For purposes of this subsection, the term "agency that primarily enforces immigration law" shall include, but not be limited to, United States immigration and customs enforcement and United States customs and border protection, and any successor agencies having similar duties. (d) Failure to maintain records as required by this subsection shall be a class A misdemeanor. 6. Except as otherwise provided by this act, any person who knowingly and willfully obtains records which contain individually identifiable information under false pretenses or otherwise violates this section shall be guilty of a class E felony. 7. In addition to or in lieu of any criminal proceeding available under this section, whenever there shall be a violation of this section, application may be made by the attorney general in the name of the people of the state of New York to a court or justice having jurisdic- tion by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violations; and if it shall appear to the satisfac- tion of the court or justice that the defendant has, in fact, violated this section, an injunction may be issued by such court or justice, enjoining and restraining any further violation, without requiring proof that any person has, in fact, been injured or damaged thereby. In any such proceeding, the court may make allowances to the attorney general as provided in paragraph six of subdivision (a) of section 8303 of the civil practice law and rules, and direct restitution. Whenever the court shall determine that a violation of this section has occurred, the court may impose a civil penalty of not more than five hundred dollars for the first violation, and not more than one thousand dollars for the second or subsequent violation within a three-year period. In connection with any such proposed application, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules. § 4. Notwithstanding sections 112 and 163 of the state finance law, section 142 of the economic development law, and any other inconsistent provision of law to the contrary, the commissioner of labor is hereby authorized to enter into non-competitive contracts for any good, service, or technology for the purposes of administering the program, including paying the benefits, required by this act. § 5. This act shall take effect immediately. PART FFF Section 1. Subdivisions 3-b and 3-c of section 1 of part C of chapter 57 of the laws of 2006, relating to establishing a cost of living adjustment for designated human services programs, as amended by section 1 of part Y of chapter 57 of the laws of 2019, are amended to read as follows: 3-b. Notwithstanding any inconsistent provision of law, beginning April 1, 2009 and ending March 31, 2016 and beginning April 1, 2017 and ending March 31, [2020] 2021, the commissioners shall not include a COLA for the purpose of establishing rates of payments, contracts or any other form of reimbursement, provided that the commissioners of the office for people with developmental disabilities, the office of mental health, and the office of [alcoholism and substance abuse services] S. 2509--C 138 A. 3009--C ADDICTION SERVICES AND SUPPORTS shall not include a COLA beginning April 1, 2017 and ending March 31, 2021. 3-c. Notwithstanding any inconsistent provision of law, beginning April 1, [2020] 2021 and [ending March 31, 2023] ENDING MARCH 31, 2022, the commissioners shall develop the COLA under this section using the actual U.S. consumer price index for all urban consumers (CPI-U) published by the United States department of labor, bureau of labor statistics for the twelve month period ending in July of the budget year prior to such state fiscal year, for the purpose of establishing rates of payments, contracts or any other form of reimbursement. § 2. Section 1 of part C of chapter 57 of the laws of 2006, relating to establishing a cost of living adjustment for designated human services programs, is amended by adding a new subdivision 3-g to read as follows: 3-G. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, AND SUBJECT TO AVAILABLE APPROPRIATIONS THEREFORE, FOR ALL ELIGIBLE PROGRAMS AS DETERMINED PURSUANT TO SUBDIVISION FOUR OF THIS SECTION, THE COMMIS- SIONERS SHALL PROVIDE FUNDING TO SUPPORT A ONE PERCENT (1.0%) COST OF LIVING ADJUSTMENT, AS DETERMINED PURSUANT TO SUBDIVISION THREE-C OF THIS SECTION, BEGINNING APRIL 1, 2021 AND ENDING MARCH 31, 2022. § 3. Section 4 of part C of chapter 57 of the laws of 2006, relating to establishing a cost of living adjustment for designated human services programs, as amended by section 1 of part I of chapter 60 of the laws of 2014, is amended to read as follows: § 4. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2006; provided section one of this act shall expire and be deemed repealed April 1, [2019] 2022; provided, further, that sections two and three of this act shall expire and be deemed repealed December 31, 2009. § 4. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2019; provided, however, that the amendments to section 1 of part C of chapter 57 of the laws of 2006, relating to establishing a cost of living adjustment for designated human services programs made by sections one and two of this act shall not affect the repeal of such section and shall be deemed repealed therewith. PART GGG Section 1. Paragraph b of subdivision 10 of section 54 of the state finance law is amended by adding a new subparagraph (vi) to read as follows: (VI) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, WITHIN AMOUNTS APPROPRIATED IN THE STATE FISCAL YEAR COMMENCING APRIL FIRST, TWO THOUSAND TWENTY-ONE, AND ANNUALLY THEREAFTER, THERE SHALL BE APPOR- TIONED AND PAID TO EACH MUNICIPALITY A BASE LEVEL GRANT IN AN AMOUNT EQUAL TO THE AID RECEIVED BY SUCH MUNICIPALITY IN THE STATE FISCAL YEAR COMMENCING APRIL FIRST, TWO THOUSAND NINETEEN; PROVIDED, HOWEVER, AND NOTWITHSTANDING ANY LAW TO THE CONTRARY, IN THE STATE FISCAL YEAR COMMENCING APRIL FIRST, TWO THOUSAND TWENTY-ONE, AND ANNUALLY THEREAFT- ER, THE TOWN OF PALM TREE SHALL RECEIVE A BASE LEVEL GRANT OF TWENTY- FOUR THOUSAND TWO HUNDRED THIRTEEN DOLLARS, AND THE VILLAGE OF SAGAPO- NACK SHALL RECEIVE A BASE LEVEL GRANT OF TWO THOUSAND DOLLARS, AND THE VILLAGE OF WOODBURY SHALL RECEIVE A BASE LEVEL GRANT OF TWENTY-SEVEN THOUSAND DOLLARS, AND THE VILLAGE OF SOUTH BLOOMING GROVE SHALL RECEIVE A BASE LEVEL GRANT OF NINETEEN THOUSAND DOLLARS. S. 2509--C 139 A. 3009--C § 2. This act shall take effect immediately. PART HHH Section 1. The opening paragraph of paragraph (a) of subdivision 1 of section 210 of the tax law, as amended by section 10 of part T of chap- ter 59 of the laws of 2015, is amended to read as follows: For taxable years beginning before January first, two thousand sixteen, the amount prescribed by this paragraph shall be computed at the rate of seven and one-tenth percent of the taxpayer's business income base. For taxable years beginning on or after January first, two thousand sixteen, the amount prescribed by this paragraph shall be six and one-half percent of the taxpayer's business income base. FOR TAXA- BLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-FOUR FOR ANY TAXPAYER WITH A BUSINESS INCOME BASE FOR THE TAXABLE YEAR OF MORE THAN FIVE MILLION DOLLARS, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH SHALL BE SEVEN AND ONE-QUARTER PERCENT OF THE TAXPAYER'S BUSINESS INCOME BASE. The taxpay- er's business income base shall mean the portion of the taxpayer's busi- ness income apportioned within the state as hereinafter provided. However, in the case of a small business taxpayer, as defined in para- graph (f) of this subdivision, the amount prescribed by this paragraph shall be computed pursuant to subparagraph (iv) of this paragraph and in the case of a manufacturer, as defined in subparagraph (vi) of this paragraph, the amount prescribed by this paragraph shall be computed pursuant to subparagraph (vi) of this paragraph, and, in the case of a qualified emerging technology company, as defined in subparagraph (vii) of this paragraph, the amount prescribed by this paragraph shall be computed pursuant to subparagraph (vii) of this paragraph. § 2. Subparagraph 1 of paragraph (b) of subdivision 1 of section 210 of the tax law, as amended by section 18 of part T of chapter 59 of the laws of 2015, is amended to read as follows: (1) (i) The amount prescribed by this paragraph shall be computed at .15 percent for each dollar of the taxpayer's total business capital, or the portion thereof apportioned within the state as hereinafter provided for taxable years beginning before January first, two thousand sixteen. However, in the case of a cooperative housing corporation as defined in the internal revenue code, the applicable rate shall be .04 percent until taxable years beginning on or after January first, two thousand twenty AND ZERO PERCENT FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE. The rate of tax for subsequent tax years shall be as follows: .125 percent for taxable years beginning on or after January first, two thousand sixteen and before January first, two thousand seventeen; .100 percent for taxable years beginning on or after January first, two thousand seventeen and before January first, two thousand eighteen; .075 percent for taxable years beginning on or after January first, two thousand eighteen and before January first, two thousand nineteen; .050 percent for taxable years beginning on or after January first, two thousand nineteen and before January first, two thousand twenty; .025 percent for taxable years beginning on or after January first, two thousand twenty and before January first, two thousand twenty-one; and [zero] .1875 percent for years beginning on or after January first, two thousand twenty-one AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, AND ZERO PERCENT FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-FOUR. PROVIDED HOWEVER, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO S. 2509--C 140 A. 3009--C THOUSAND TWENTY-ONE, THE RATE OF TAX FOR A SMALL BUSINESS AS DEFINED IN PARAGRAPH (F) OF THIS SUBDIVISION SHALL BE ZERO PERCENT. The rate of tax for a qualified New York manufacturer shall be .132 percent for taxable years beginning on or after January first, two thousand fifteen and before January first, two thousand sixteen, .106 percent for taxable years beginning on or after January first, two thousand sixteen and before January first, two thousand seventeen, .085 percent for taxable years beginning on or after January first, two thousand seventeen and before January first, two thousand eighteen; .056 percent for taxable years beginning on or after January first, two thousand eighteen and before January first, two thousand nineteen; .038 percent for taxable years beginning on or after January first, two thousand nineteen and before January first, two thousand twenty; .019 percent for taxable years beginning on or after January first, two thousand twenty and before January first, two thousand twenty-one; and zero percent for years beginning on or after January first, two thousand twenty-one. (ii) In no event shall the amount prescribed by this paragraph exceed three hundred fifty thousand dollars for qualified New York manufacturers and for all other taxpayers five million dollars. § 3. This act shall take effect immediately. PART III Section 1. Section 606 of the tax law is amended by adding a new subsection (e-2) to read as follows: (E-2) REAL PROPERTY TAX RELIEF CREDIT. (1) FOR PURPOSES OF THIS SUBSECTION: (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO OWNED AND PRIMARILY RESIDED FOR SIX MONTHS OR MORE OF THE TAXABLE YEAR IN REAL PROPERTY THAT EITHER RECEIVED THE STAR EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW OR THAT QUALIFIED THE TAXPAYER TO RECEIVE THE SCHOOL TAX RELIEF CREDIT AUTHOR- IZED BY SUBSECTION (EEE) OF THIS SECTION. (B) "QUALIFIED GROSS INCOME" MEANS THE ADJUSTED GROSS INCOME OF THE QUALIFIED TAXPAYER FOR THE TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES AND, FOR TAXABLE YEAR TWO THOUSAND TWENTY-ONE COMPUTED WITHOUT REGARD TO THE LAST SENTENCE OF SUBDIVISION (A) OF SECTION SIX HUNDRED SEVEN OF THIS ARTICLE. IN COMPUTING QUALIFIED GROSS INCOME, THE NET AMOUNT OF LOSS REPORTED ON FEDERAL SCHEDULE C, D, E, OR F SHALL NOT EXCEED THREE THOUSAND DOLLARS PER SCHEDULE. IN ADDITION, THE NET AMOUNT OF ANY OTHER SEPARATE CATEGORY OF LOSS SHALL NOT EXCEED THREE THOUSAND DOLLARS. THE AGGREGATE AMOUNT OF ALL LOSSES INCLUDED IN COMPUTING QUALIFIED GROSS INCOME SHALL NOT EXCEED FIFTEEN THOUSAND DOLLARS. (C) "RESIDENCE" MEANS A DWELLING IN THIS STATE OWNED BY THE TAXPAYER AND USED BY THE TAXPAYER AS HIS OR HER PRIMARY RESIDENCE, AND SO MUCH OF THE LAND ABUTTING IT, NOT EXCEEDING ONE ACRE, AS IS REASONABLY NECESSARY FOR USE OF THE DWELLING AS A HOME, AND MAY CONSIST OF A PART OF A MULTI-DWELLING OR MULTI-PURPOSE BUILDING INCLUDING A COOPERATIVE OR CONDOMINIUM. RESIDENCE INCLUDES A TRAILER OR MOBILE HOME, USED EXCLU- SIVELY FOR RESIDENTIAL PURPOSES AND DEFINED AS REAL PROPERTY PURSUANT TO PARAGRAPH (G) OF SUBDIVISION TWELVE OF SECTION ONE HUNDRED TWO OF THE REAL PROPERTY TAX LAW. (D) "QUALIFYING REAL PROPERTY TAXES" MEANS ALL REAL PROPERTY TAXES, SPECIAL AD VALOREM LEVIES AND SPECIAL ASSESSMENTS, EXCLUSIVE OF PENAL- TIES AND INTEREST, LEVIED BY A TAXING JURISDICTION ON THE RESIDENCE OWNED AND OCCUPIED BY A QUALIFIED TAXPAYER AND PAID BY THE QUALIFIED S. 2509--C 141 A. 3009--C TAXPAYER DURING THE TAXABLE YEAR, PROVIDED THAT TO THE EXTENT THE TOTAL AMOUNT OF REAL PROPERTY TAXES SO PAID INCLUDES SCHOOL DISTRICT TAXES, THE AMOUNT OF THE SCHOOL TAX RELIEF (STAR) CREDIT CLAIMED PURSUANT TO SUBSECTION (EEE) OF THIS SECTION, IF ANY, SHALL BE DEDUCTED FROM SUCH AMOUNT. A QUALIFIED TAXPAYER MAY ELECT TO INCLUDE ANY ADDITIONAL AMOUNT THAT WOULD HAVE BEEN LEVIED BY A TAXING JURISDICTION AND PAID BY THE QUALI- FIED TAXPAYER IN THE ABSENCE OF AN EXEMPTION FROM REAL PROPERTY TAXATION PURSUANT TO SECTION FOUR HUNDRED SIXTY-SEVEN OF THE REAL PROPERTY TAX LAW. IF TENANT-STOCKHOLDERS IN A COOPERATIVE HOUSING CORPORATION HAVE MET THE REQUIREMENTS OF SECTION TWO HUNDRED SIXTEEN OF THE INTERNAL REVENUE CODE BY WHICH THEY ARE ALLOWED A DEDUCTION FOR REAL ESTATE TAXES, THE AMOUNT OF TAXES SO ALLOWABLE, OR WHICH WOULD BE ALLOWABLE IF THE TAXPAYER HAD FILED RETURNS ON A CASH BASIS, SHALL BE QUALIFYING REAL PROPERTY TAXES. IF A RESIDENCE IS AN INTEGRAL PART OF A LARGER UNIT, QUALIFYING REAL PROPERTY TAXES SHALL BE LIMITED TO THAT AMOUNT OF SUCH TAXES PAID AS MAY BE REASONABLY APPORTIONED TO SUCH RESIDENCE. IF A TAXPAYER OWNED AND OCCUPIED TWO RESIDENCES IN THE STATE DURING DIFFERENT PERIODS IN THE SAME TAXABLE YEAR, QUALIFYING REAL PROPERTY TAXES SHALL BE THE SUM OF THE PRORATED QUALIFYING REAL PROPERTY TAXES ATTRIBUTABLE TO THE TAXPAYER DURING THE PERIODS SUCH TAXPAYER OCCUPIED EACH OF SUCH RESIDENCES. A TAXPAYER WHO OWNED AND OCCUPIED A RESIDENCE IN THE STATE FOR PART OF THE TAXABLE YEAR AND RENTED A RESIDENCE IN THE STATE FOR PART OF THE SAME TAXABLE YEAR, MAY INCLUDE THE PRORATION OF QUALIFYING REAL PROPERTY TAXES ON THE RESIDENCE OWNED. PROVIDED, HOWEVER, FOR PURPOSES OF THE CREDIT ALLOWED UNDER THIS SUBSECTION, QUALIFYING REAL PROPERTY TAXES MAY BE INCLUDED BY A QUALIFIED TAXPAYER ONLY TO THE EXTENT THAT SUCH TAXPAYER OR THE SPOUSE OF SUCH TAXPAYER OCCUPIED SUCH RESIDENCE FOR ONE HUNDRED EIGHTY-THREE DAYS OR MORE OF THE TAXABLE YEAR, OWNED THE RESIDENCE AND PAID SUCH TAXES. (E) "EXCESS REAL PROPERTY TAX" MEANS THE EXCESS OF QUALIFYING REAL PROPERTY TAXES OVER SIX PERCENT OF QUALIFIED GROSS INCOME. (2) FOR TAX YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, A QUALI- FIED TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION AGAINST THE TAXES IMPOSED BY THIS ARTICLE. IF THE CREDIT EXCEEDS THE TAX FOR SUCH YEAR UNDER THIS ARTICLE, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT, TO BE CREDITED OR REFUNDED, WITHOUT INTEREST. (3) DETERMINATION OF CREDIT. THE CREDIT AMOUNT ALLOWED UNDER THIS SUBSECTION SHALL BE THE PRODUCT OF THE EXCESS REAL PROPERTY TAX AND THE APPLICABLE PERCENTAGE OF THE EXCESS REAL PROPERTY TAX, CALCULATED AS FOLLOWS: (A) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS SEVENTY- FIVE THOUSAND DOLLARS OR LESS, THE APPLICABLE PERCENTAGE SHALL BE FOUR- TEEN PERCENT. (B) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER THAN SEVENTY-FIVE THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO ONE HUNDRED FIFTY THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE THE DIFFER- ENCE BETWEEN (I) FOURTEEN PERCENT AND (II) FIVE PERCENT MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AS DEFINED BY THIS SUBSECTION AND SEVENTY-FIVE THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS SEVENTY- FIVE THOUSAND DOLLARS. (C) FOR QUALIFIED TAXPAYERS WHOSE QUALIFIED GROSS INCOME IS GREATER THAN ONE HUNDRED FIFTY THOUSAND DOLLARS BUT LESS THAN OR EQUAL TO TWO S. 2509--C 142 A. 3009--C HUNDRED FIFTY THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE THE DIFFERENCE BETWEEN (I) NINE PERCENT AND (II) SIX PERCENT MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE DIFFERENCE BETWEEN THE QUALIFIED TAXPAYER'S QUALIFIED GROSS INCOME AND ONE HUNDRED FIFTY THOUSAND DOLLARS, AND THE DENOMINATOR OF WHICH IS ONE HUNDRED THOUSAND DOLLARS. (4) NO CREDIT SHALL BE ALLOWED UNDER THIS SUBSECTION IF THE AMOUNT DETERMINED PURSUANT TO PARAGRAPH THREE IS LESS THAN TWO HUNDRED FIFTY DOLLARS, PROVIDED FURTHER THAT IF THE AMOUNT DETERMINED PURSUANT TO PARAGRAPH THREE IS IN EXCESS OF THREE HUNDRED FIFTY DOLLARS THE TAXPAYER SHALL BE ALLOWED A CREDIT OF THREE HUNDRED FIFTY DOLLARS. (5) THE COMMISSIONER MAY PRESCRIBE THAT THE CREDIT UNDER THIS SUBSECTION SHALL BE DETERMINED IN WHOLE OR IN PART BY THE USE OF TABLES PRESCRIBED BY SUCH COMMISSIONER. SUCH TABLES SHALL SET FORTH THE CREDIT TO THE NEAREST DOLLAR. (6) NO CREDIT SHALL BE GRANTED UNDER THIS SUBSECTION: (A) TO A PROPERTY OWNER IF QUALIFIED GROSS INCOME FOR THE TAXABLE YEAR EXCEEDS TWO HUNDRED FIFTY THOUSAND DOLLARS. (B) TO A PROPERTY OWNER UNLESS: (I) THE PROPERTY IS USED FOR RESIDEN- TIAL PURPOSES; (II) NOT MORE THAN TWENTY PERCENT OF THE RENTAL INCOME, IF ANY, FROM THE PROPERTY IS FROM RENTAL FOR NONRESIDENTIAL PURPOSES; AND (III) THE PROPERTY IS OCCUPIED AS A RESIDENCE IN WHOLE OR IN PART BY ONE OR MORE OF THE OWNERS OF THE PROPERTY. (C) TO AN INDIVIDUAL WITH RESPECT TO WHOM A DEDUCTION UNDER SUBSECTION (C) OF SECTION ONE HUNDRED FIFTY-ONE OF THE INTERNAL REVENUE CODE IS ALLOWABLE TO ANOTHER TAXPAYER FOR THE TAXABLE YEAR. (D) WITH RESPECT TO A RESIDENCE THAT IS WHOLLY EXEMPTED FROM REAL PROPERTY TAXATION. (E) TO AN INDIVIDUAL WHO IS NOT A RESIDENT INDIVIDUAL OF THE STATE FOR THE ENTIRE TAXABLE YEAR. (7) IN THE CASE OF A TAXPAYER WHO HAS ITEMIZED DEDUCTIONS FROM FEDERAL ADJUSTED GROSS INCOME, AND WHOSE FEDERAL ITEMIZED DEDUCTIONS INCLUDE AN AMOUNT FOR REAL ESTATE TAXES PAID, THE NEW YORK ITEMIZED DEDUCTION OTHERWISE ALLOWABLE UNDER SECTION SIX HUNDRED FIFTEEN OF THIS CHAPTER SHALL BE REDUCED BY THE AMOUNT OF THE CREDIT CLAIMED UNDER THIS SUBSECTION. § 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2021. PART JJJ Section 1. The state comptroller is hereby authorized and directed to loan money in accordance with the provisions set forth in subdivision 5 of section 4 of the state finance law to the following funds and/or accounts: 1. DOL-Child performer protection account (20401). 2. Local government records management account (20501). 3. Child health plus program account (20810). 4. EPIC premium account (20818). 5. Education - New (20901). 6. VLT - Sound basic education fund (20904). 7. Sewage treatment program management and administration fund (21000). 8. Hazardous bulk storage account (21061). 9. Utility environmental regulatory account (21064). 10. Federal grants indirect cost recovery account (21065). 11. Low level radioactive waste account (21066). S. 2509--C 143 A. 3009--C 12. Recreation account (21067). 13. Public safety recovery account (21077). 14. Environmental regulatory account (21081). 15. Natural resource account (21082). 16. Mined land reclamation program account (21084). 17. Great lakes restoration initiative account (21087). 18. Environmental protection and oil spill compensation fund (21200). 19. Public transportation systems account (21401). 20. Metropolitan mass transportation (21402). 21. Operating permit program account (21451). 22. Mobile source account (21452). 23. Statewide planning and research cooperative system account (21902). 24. New York state thruway authority account (21905). 25. Mental hygiene program fund account (21907). 26. Mental hygiene patient income account (21909). 27. Financial control board account (21911). 28. Regulation of racing account (21912). 29. State university dormitory income reimbursable account (21937). 30. Criminal justice improvement account (21945). 31. Environmental laboratory reference fee account (21959). 32. Training, management and evaluation account (21961). 33. Clinical laboratory reference system assessment account (21962). 34. Indirect cost recovery account (21978). 35. Multi-agency training account (21989). 36. Bell jar collection account (22003). 37. Industry and utility service account (22004). 38. Real property disposition account (22006). 39. Parking account (22007). 40. Courts special grants (22008). 41. Asbestos safety training program account (22009). 42. Camp Smith billeting account (22017). 43. Batavia school for the blind account (22032). 44. Investment services account (22034). 45. Surplus property account (22036). 46. Financial oversight account (22039). 47. Regulation of Indian gaming account (22046). 48. Rome school for the deaf account (22053). 49. Seized assets account (22054). 50. Administrative adjudication account (22055). 51. Federal salary sharing account (22056). 52. New York City assessment account (22062). 53. Cultural education account (22063). 54. Local services account (22078). 55. DHCR mortgage servicing account (22085). 56. Housing indirect cost recovery account (22090). 57. DHCR-HCA application fee account (22100). 58. Low income housing monitoring account (22130). 59. Corporation administration account (22135). 60. New York State Home for Veterans in the Lower-Hudson Valley account (22144). 61. Deferred compensation administration account (22151). 62. Rent revenue other New York City account (22156). 63. Rent revenue account (22158). 64. Tax revenue arrearage account (22168). 65. New York state medical indemnity fund account (22240). S. 2509--C 144 A. 3009--C 66. Behavioral health parity compliance fund (22246). 67. State university general income offset account (22654). 68. Lake George park trust fund account (22751). 69. State police motor vehicle law enforcement account (22802). 70. Highway safety program account (23001). 71. DOH drinking water program account (23102). 72. NYCCC operating offset account (23151). 73. Commercial gaming regulation account (23702). 74. Highway use tax administration account (23801). 75. New York state secure choice administrative account (23806). 76. Fantasy sports administration account (24951). 77. Highway and bridge capital account (30051). 78. Aviation purpose account (30053). 79. State university residence hall rehabilitation fund (30100). 80. State parks infrastructure account (30351). 81. Clean water/clean air implementation fund (30500). 82. Hazardous waste remedial cleanup account (31506). 83. Youth facilities improvement account (31701). 84. Housing assistance fund (31800). 85. Housing program fund (31850). 86. Highway facility purpose account (31951). 87. Information technology capital financing account (32215). 88. New York racing account (32213). 89. Capital miscellaneous gifts account (32214). 90. New York environmental protection and spill remediation account (32219). 91. Mental hygiene facilities capital improvement fund (32300). 92. Correctional facilities capital improvement fund (32350). 93. New York State Storm Recovery Capital Fund (33000). 94. OGS convention center account (50318). 95. Empire Plaza Gift Shop (50327). 96. Centralized services fund (55000). 97. Archives records management account (55052). 98. Federal single audit account (55053). 99. Civil service administration account (55055). 100. Civil service EHS occupational health program account (55056). 101. Banking services account (55057). 102. Cultural resources survey account (55058). 103. Neighborhood work project account (55059). 104. Automation & printing chargeback account (55060). 105. OFT NYT account (55061). 106. Data center account (55062). 107. Intrusion detection account (55066). 108. Domestic violence grant account (55067). 109. Centralized technology services account (55069). 110. Labor contact center account (55071). 111. Human services contact center account (55072). 112. Tax contact center account (55073). 113. Department of law civil recoveries account (55074). 114. Executive direction internal audit account (55251). 115. CIO Information technology centralized services account (55252). 116. Health insurance internal service account (55300). 117. Civil service employee benefits division administrative account (55301). 118. Correctional industries revolving fund (55350). 119. Employees health insurance account (60201). S. 2509--C 145 A. 3009--C 120. Medicaid management information system escrow fund (60900). 121. New York state cannabis revenue fund. § 1-a. The state comptroller is hereby authorized and directed to loan money in accordance with the provisions set forth in subdivision 5 of section 4 of the state finance law to any account within the following federal funds, provided the comptroller has made a determination that sufficient federal grant award authority is available to reimburse such loans: 1. Federal USDA-food and nutrition services fund (25000). 2. Federal health and human services fund (25100). 3. Federal education fund (25200). 4. Federal block grant fund (25250). 5. Federal miscellaneous operating grants fund (25300). 6. Federal unemployment insurance administration fund (25900). 7. Federal unemployment insurance occupational training fund (25950). 8. Federal emergency employment act fund (26000). 9. Federal capital projects fund (31350). § 2. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget, on or before March 31, 2022, up to the unencumbered balance or the follow- ing amounts: Economic Development and Public Authorities: 1. $1,175,000 from the miscellaneous special revenue fund, underground facilities safety training account (22172), to the general fund. 2. An amount up to the unencumbered balance from the miscellaneous special revenue fund, business and licensing services account (21977), to the general fund. 3. $14,810,000 from the miscellaneous special revenue fund, code enforcement account (21904), to the general fund. 4. $3,000,000 from the general fund to the miscellaneous special revenue fund, tax revenue arrearage account (22168). Education: 1. $2,603,020,000 from the general fund to the state lottery fund, education account (20901), as reimbursement for disbursements made from such fund for supplemental aid to education pursuant to section 92-c of the state finance law that are in excess of the amounts deposited in such fund for such purposes pursuant to section 1612 of the tax law. 2. $755,000,000 from the general fund to the state lottery fund, VLT education account (20904), as reimbursement for disbursements made from such fund for supplemental aid to education pursuant to section 92-c of the state finance law that are in excess of the amounts deposited in such fund for such purposes pursuant to section 1612 of the tax law. 3. $132,800,000 from the general fund to the New York state commercial gaming fund, commercial gaming revenue account (23701), as reimbursement for disbursements made from such fund for supplemental aid to education pursuant to section 97-nnnn of the state finance law that are in excess of the amounts deposited in such fund for purposes pursuant to section 1352 of the racing, pari-mutuel wagering and breeding law. 4. $6,000,000 from the interactive fantasy sports fund, fantasy sports education account (24950), to the state lottery fund, education account (20901), as reimbursement for disbursements made from such fund for supplemental aid to education pursuant to section 92-c of the state finance law. 5. An amount up to the unencumbered balance from the charitable gifts trust fund, elementary and secondary education account (24901), to the S. 2509--C 146 A. 3009--C general fund, for payment of general support for public schools pursuant to section 3609-a of the education law. 6. Moneys from the state lottery fund (20900) up to an amount deposit- ed in such fund pursuant to section 1612 of the tax law in excess of the current year appropriation for supplemental aid to education pursuant to section 92-c of the state finance law. 7. $300,000 from the New York state local government records manage- ment improvement fund, local government records management account (20501), to the New York state archives partnership trust fund, archives partnership trust maintenance account (20351). 8. $900,000 from the general fund to the miscellaneous special revenue fund, Batavia school for the blind account (22032). 9. $900,000 from the general fund to the miscellaneous special revenue fund, Rome school for the deaf account (22053). 10. $343,400,000 from the state university dormitory income fund (40350) to the miscellaneous special revenue fund, state university dormitory income reimbursable account (21937). 11. $8,318,000 from the general fund to the state university income fund, state university income offset account (22654), for the state's share of repayment of the STIP loan. 12. $68,000,000 from the state university income fund, state universi- ty hospitals income reimbursable account (22656) to the general fund for hospital debt service for the period April 1, 2021 through March 31, 2022. 13. $7,850,000 from the miscellaneous special revenue fund, office of the professions account (22051), to the miscellaneous capital projects fund, office of the professions electronic licensing account (32222). 14. $24,000,000 from any of the state education department's special revenue and internal service funds to the miscellaneous special revenue fund, indirect cost recovery account (21978). 15. $4,200,000 from any of the state education department's special revenue or internal service funds to the capital projects fund (30000). 16. $12,500,000 from the School Capital Facilities Financing Reserve Fund to the Capital Projects Fund account (30000), for excess debt service reserve fund balances related to bonds that have been fully retired. Such excess funds shall be used to support the development of a modernized State aid data system for the education department. Environmental Affairs: 1. $16,000,000 from any of the department of environmental conserva- tion's special revenue federal funds, and/or federal capital funds, to the environmental conservation special revenue fund, federal indirect recovery account (21065). 2. $5,000,000 from any of the department of environmental conserva- tion's special revenue federal funds, and/or federal capital funds, to the conservation fund (21150) or Marine Resources Account (21151) as necessary to avoid diversion of conservation funds. 3. $3,000,000 from any of the office of parks, recreation and historic preservation capital projects federal funds and special revenue federal funds to the miscellaneous special revenue fund, federal grant indirect cost recovery account (22188). 4. $1,000,000 from any of the office of parks, recreation and historic preservation special revenue federal funds to the miscellaneous capital projects fund, I love NY water account (32212). 5. $28,000,000 from the general fund to the environmental protection fund, environmental protection fund transfer account (30451). S. 2509--C 147 A. 3009--C 6. $1,800,000 from the general fund to the hazardous waste remedial fund, hazardous waste oversight and assistance account (31505). 7. An amount up to or equal to the cash balance within the special revenue-other waste management & cleanup account (21053) to the capital projects fund (30000) for services and capital expenses related to the management and cleanup program as put forth in section 27-1915 of the environmental conservation law. 8. $5,400,000 from the miscellaneous special revenue fund, public service account (22011) to the miscellaneous special revenue fund, util- ity environmental regulatory account (21064). 9. $7,000,000 from the general fund to the enterprise fund, state fair account (50051). 10. $4,000,000 from the waste management & cleanup account (21053) to the general fund. 11. $3,000,000 from the waste management & cleanup account (21053) to the environmental protection fund transfer account (30451). 12. Up to $10,000,000 from the general fund to the miscellaneous special revenue fund, patron services account (22163). Family Assistance: 1. $7,000,000 from any of the office of children and family services, office of temporary and disability assistance, or department of health special revenue federal funds and the general fund, in accordance with agreements with social services districts, to the miscellaneous special revenue fund, office of human resources development state match account (21967). 2. $4,000,000 from any of the office of children and family services or office of temporary and disability assistance special revenue federal funds to the miscellaneous special revenue fund, family preservation and support services and family violence services account (22082). 3. $18,670,000 from any of the office of children and family services, office of temporary and disability assistance, or department of health special revenue federal funds and any other miscellaneous revenues generated from the operation of office of children and family services programs to the general fund. 4. $175,000,000 from any of the office of temporary and disability assistance or department of health special revenue funds to the general fund. 5. $2,500,000 from any of the office of temporary and disability assistance special revenue funds to the miscellaneous special revenue fund, office of temporary and disability assistance program account (21980). 6. $35,000,000 from any of the office of children and family services, office of temporary and disability assistance, department of labor, and department of health special revenue federal funds to the office of children and family services miscellaneous special revenue fund, multi- agency training contract account (21989). 7. $205,000,000 from the miscellaneous special revenue fund, youth facility per diem account (22186), to the general fund. 8. $621,850 from the general fund to the combined gifts, grants, and bequests fund, WB Hoyt Memorial account (20128). 9. $5,000,000 from the miscellaneous special revenue fund, state central registry (22028), to the general fund. General Government: 1. $1,566,000 from the miscellaneous special revenue fund, examination and miscellaneous revenue account (22065) to the general fund. S. 2509--C 148 A. 3009--C 2. $12,000,000 from the general fund to the health insurance revolving fund (55300). 3. $292,400,000 from the health insurance reserve receipts fund (60550) to the general fund. 4. $150,000 from the general fund to the not-for-profit revolving loan fund (20650). 5. $150,000 from the not-for-profit revolving loan fund (20650) to the general fund. 6. $3,000,000 from the miscellaneous special revenue fund, surplus property account (22036), to the general fund. 7. $19,000,000 from the miscellaneous special revenue fund, revenue arrearage account (22024), to the general fund. 8. $1,826,000 from the miscellaneous special revenue fund, revenue arrearage account (22024), to the miscellaneous special revenue fund, authority budget office account (22138). 9. $1,000,000 from the agencies enterprise fund, parking services account (22007), to the general fund, for the purpose of reimbursing the costs of debt service related to state parking facilities. 10. $3,435,000 from the general fund to the centralized services fund, COPS account (55013). 11. $11,460,000 from the general fund to the agencies internal service fund, central technology services account (55069), for the purpose of enterprise technology projects. 12. $10,000,000 from the general fund to the agencies internal service fund, state data center account (55062). 13. $12,000,000 from the agencies enterprise fund, parking services account (22007), to the centralized services, building support services account (55018). 14. $30,000,000 from the general fund to the internal service fund, business services center account (55022). 15. $8,000,000 from the general fund to the internal service fund, building support services account (55018). 16. $1,500,000 from the agencies enterprise fund, special events account (20120), to the general fund. 17. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget, amounts up to the unencumbered balance of the Special Revenue Other College Savings Account (22022) to the College Savings Fiduciary Fund. Health: 1. A transfer from the general fund to the combined gifts, grants and bequests fund, breast cancer research and education account (20155), up to an amount equal to the monies collected and deposited into that account in the previous fiscal year. 2. A transfer from the general fund to the combined gifts, grants and bequests fund, prostate cancer research, detection, and education account (20183), up to an amount equal to the moneys collected and deposited into that account in the previous fiscal year. 3. A transfer from the general fund to the combined gifts, grants and bequests fund, Alzheimer's disease research and assistance account (20143), up to an amount equal to the moneys collected and deposited into that account in the previous fiscal year. 4. $20,294,000 from the HCRA resources fund (20800) to the miscella- neous special revenue fund, empire state stem cell trust fund account (22161). S. 2509--C 149 A. 3009--C 5. $2,000,000 from the miscellaneous special revenue fund, certificate of need account (21920), to the miscellaneous capital projects fund, healthcare IT capital subfund (32216). 6. $2,000,000 from the miscellaneous special revenue fund, vital health records account (22103), to the miscellaneous capital projects fund, healthcare IT capital subfund (32216). 7. $6,000,000 from the miscellaneous special revenue fund, profes- sional medical conduct account (22088), to the miscellaneous capital projects fund, healthcare IT capital subfund (32216). 8. $106,500,000 from the HCRA resources fund (20800) to the capital projects fund (30000). 9. $6,550,000 from the general fund to the medical marihuana trust fund, health operation and oversight account (23755). 10. An amount up to the unencumbered balance from the charitable gifts trust fund, health charitable account (24900), to the general fund, for payment of general support for primary, preventive, and inpatient health care, dental and vision care, hunger prevention and nutritional assist- ance, and other services for New York state residents with the overall goal of ensuring that New York state residents have access to quality health care and other related services. 11. $500,000 from the miscellaneous special revenue fund, New York State cannabis revenue fund, to the miscellaneous special revenue fund, environmental laboratory fee account (21959). 12. An amount up to the unencumbered balance from the public health emergency charitable gifts trust fund to the general fund, for payment of goods and services necessary to respond to a public health disaster emergency or to assist or aid in responding to such a disaster. 13. $2,585,000 from the miscellaneous special revenue fund, patient safety center account (22140), to the general fund. 14. $1,000,000 from the miscellaneous special revenue fund, nursing home receivership account (21925), to the general fund. 15. $133,000 from the miscellaneous special revenue fund, quality of care account (21915), to the general fund. 16. $2,200,000 from the miscellaneous special revenue fund, adult home quality enhancement account (22091), to the general fund. Labor: 1. $600,000 from the miscellaneous special revenue fund, DOL fee and penalty account (21923), to the child performer's protection fund, child performer protection account (20401). 2. $11,700,000 from the unemployment insurance interest and penalty fund, unemployment insurance special interest and penalty account (23601), to the general fund. 3. $50,000,000 from the DOL fee and penalty account (21923), unemploy- ment insurance special interest and penalty account (23601), and public work enforcement account (21998), to the general fund. Mental Hygiene: 1. $10,000,000 from the general fund, to the miscellaneous special revenue fund, federal salary sharing account (22056). 2. $3,800,000 from the general fund, to the agencies internal service fund, civil service EHS occupational health program account (55056). 3. $3,000,000 from the chemical dependence service fund, substance abuse services fund account (22700), to the mental hygiene capital improvement fund (32305). Public Protection: 1. $1,350,000 from the miscellaneous special revenue fund, emergency management account (21944), to the general fund. S. 2509--C 150 A. 3009--C 2. $2,587,000 from the general fund to the miscellaneous special revenue fund, recruitment incentive account (22171). 3. $22,773,000 from the general fund to the correctional industries revolving fund, correctional industries internal service account (55350). 4. $2,000,000,000 from any of the division of homeland security and emergency services special revenue federal funds to the general fund. 5. $11,149,000 from the miscellaneous special revenue fund, criminal justice improvement account (21945), to the general fund. 6. $115,420,000 from the state police motor vehicle law enforcement and motor vehicle theft and insurance fraud prevention fund, state police motor vehicle enforcement account (22802), to the general fund for state operation expenses of the division of state police. 7. $131,500,000 from the general fund to the correctional facilities capital improvement fund (32350). 8. $5,000,000 from the general fund to the dedicated highway and bridge trust fund (30050) for the purpose of work zone safety activities provided by the division of state police for the department of transpor- tation. 9. $10,000,000 from the miscellaneous special revenue fund, statewide public safety communications account (22123), to the capital projects fund (30000). 10. $9,830,000 from the miscellaneous special revenue fund, legal services assistance account (22096), to the general fund. 11. $1,000,000 from the general fund to the agencies internal service fund, neighborhood work project account (55059). 12. $7,980,000 from the miscellaneous special revenue fund, finger- print identification & technology account (21950), to the general fund. 13. $1,100,000 from the state police motor vehicle law enforcement and motor vehicle theft and insurance fraud prevention fund, motor vehicle theft and insurance fraud account (22801), to the general fund. 14. $30,500,000 from the miscellaneous special revenue fund, statewide public safety communications account (22123), to the general fund. Transportation: 1. $20,000,000 from the general fund to the mass transportation oper- ating assistance fund, public transportation systems operating assist- ance account (21401), of which $12,000,000 constitutes the base need for operations. 2. $727,500,000 from the general fund to the dedicated highway and bridge trust fund (30050). 3. $244,250,000 from the general fund to the MTA financial assistance fund, mobility tax trust account (23651). 4. $5,000,000 from the miscellaneous special revenue fund, transporta- tion regulation account (22067) to the dedicated highway and bridge trust fund (30050), for disbursements made from such fund for motor carrier safety that are in excess of the amounts deposited in the dedi- cated highway and bridge trust fund (30050) for such purpose pursuant to section 94 of the transportation law. 5. $3,000,000 from the miscellaneous special revenue fund, traffic adjudication account (22055), to the general fund. 6. $8,557,000 from the mass transportation operating assistance fund, metropolitan mass transportation operating assistance account (21402), to the capital projects fund (30000). 7. $5,000,000 from the miscellaneous special revenue fund, transporta- tion regulation account (22067) to the general fund, for disbursements made from such fund for motor carrier safety that are in excess of the S. 2509--C 151 A. 3009--C amounts deposited in the general fund for such purpose pursuant to section 94 of the transportation law. Miscellaneous: 1. $250,000,000 from the general fund to any funds or accounts for the purpose of reimbursing certain outstanding accounts receivable balances. 2. $500,000,000 from the general fund to the debt reduction reserve fund (40000). 3. $450,000,000 from the New York state storm recovery capital fund (33000) to the revenue bond tax fund (40152). 4. $15,500,000 from the general fund, community projects account GG (10256), to the general fund, state purposes account (10050). 5. $100,000,000 from any special revenue federal fund to the general fund, state purposes account (10050). 6. $6,000,000,000 in fiscal year 2022 and $6,500,000,000 no sooner than April 1, 2022 from the special revenue federal fund established for the deposit of funds made available under the American Rescue Plan Act of 2021 Section 9901 "Coronavirus State and Local Fiscal Recovery Funds" to the general fund, state purposes account (10050) to cover eligible costs incurred by the State. § 3. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, on or before March 31, 2022: 1. Upon request of the commissioner of environmental conservation, up to $12,745,400 from revenues credited to any of the department of envi- ronmental conservation special revenue funds, including $4,000,000 from the environmental protection and oil spill compensation fund (21200), and $1,834,600 from the conservation fund (21150), to the environmental conservation special revenue fund, indirect charges account (21060). 2. Upon request of the commissioner of agriculture and markets, up to $3,000,000 from any special revenue fund or enterprise fund within the department of agriculture and markets to the general fund, to pay appro- priate administrative expenses. 3. Upon request of the commissioner of agriculture and markets, up to $2,000,000 from the state exposition special fund, state fair receipts account (50051) to the miscellaneous capital projects fund, state fair capital improvement account (32208). 4. Upon request of the commissioner of the division of housing and community renewal, up to $6,221,000 from revenues credited to any divi- sion of housing and community renewal federal or miscellaneous special revenue fund to the miscellaneous special revenue fund, housing indirect cost recovery account (22090). 5. Upon request of the commissioner of the division of housing and community renewal, up to $5,500,000 may be transferred from any miscel- laneous special revenue fund account, to any miscellaneous special revenue fund. 6. Upon request of the commissioner of health up to $13,225,000 from revenues credited to any of the department of health's special revenue funds, to the miscellaneous special revenue fund, administration account (21982). § 4. On or before March 31, 2022, the comptroller is hereby authorized and directed to deposit earnings that would otherwise accrue to the general fund that are attributable to the operation of section 98-a of the state finance law, to the agencies internal service fund, banking services account (55057), for the purpose of meeting direct payments from such account. S. 2509--C 152 A. 3009--C § 5. Notwithstanding any law to the contrary, upon the direction of the director of the budget and upon requisition by the state university of New York, the dormitory authority of the state of New York is directed to transfer, up to $22,000,000 in revenues generated from the sale of notes or bonds, the state university income fund general revenue account (22653) for reimbursement of bondable equipment for further transfer to the state's general fund. § 6. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget and upon consultation with the state university chancellor or his or her designee, on or before March 31, 2022, up to $16,000,000 from the state university income fund general revenue account (22653) to the state general fund for debt service costs related to campus supported capital project costs for the NY-SUNY 2020 challenge grant program at the University at Buffalo. § 7. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget and upon consultation with the state university chancellor or his or her designee, on or before March 31, 2022, up to $6,500,000 from the state university income fund general revenue account (22653) to the state general fund for debt service costs related to campus supported capital project costs for the NY-SUNY 2020 challenge grant program at the University at Albany. § 8. Notwithstanding any law to the contrary, the state university chancellor or his or her designee is authorized and directed to transfer estimated tuition revenue balances from the state university collection fund (61000) to the state university income fund, state university general revenue offset account (22655) on or before March 31, 2022. § 9. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget, up to $1,038,718,300 from the general fund to the state university income fund, state university general revenue offset account (22655) during the period of July 1, 2021 through June 30, 2022 to support operations at the state university. § 10. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget, up to $20,000,000 from the general fund to the state university income fund, state university general revenue offset account (22655) during the period of July 1, 2021 to June 30, 2022 to support operations at the state university in accordance with the maintenance of effort pursuant to subparagraph (4) of paragraph h of subdivision 2 of section 355 of the education law. § 11. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request of the state university chancel- lor or his or her designee, up to $55,000,000 from the state university income fund, state university hospitals income reimbursable account (22656), for services and expenses of hospital operations and capital expenditures at the state university hospitals; and the state university income fund, Long Island veterans' home account (22652) to the state university capital projects fund (32400) on or before June 30, 2022. S. 2509--C 153 A. 3009--C § 12. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller, after consultation with the state university chancellor or his or her designee, is hereby authorized and directed to transfer moneys, in the first instance, from the state university collection fund, Stony Brook hospital collection account (61006), Brooklyn hospital collection account (61007), and Syra- cuse hospital collection account (61008) to the state university income fund, state university hospitals income reimbursable account (22656) in the event insufficient funds are available in the state university income fund, state university hospitals income reimbursable account (22656) to permit the full transfer of moneys authorized for transfer, to the general fund for payment of debt service related to the SUNY hospitals. Notwithstanding any law to the contrary, the comptroller is also hereby authorized and directed, after consultation with the state university chancellor or his or her designee, to transfer moneys from the state university income fund to the state university income fund, state university hospitals income reimbursable account (22656) in the event insufficient funds are available in the state university income fund, state university hospitals income reimbursable account (22656) to pay hospital operating costs or to permit the full transfer of moneys authorized for transfer, to the general fund for payment of debt service related to the SUNY hospitals on or before March 31, 2022. § 13. Notwithstanding any law to the contrary, upon the direction of the director of the budget and the chancellor of the state university of New York or his or her designee, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer monies from the state university dormitory income fund (40350) to the state university residence hall rehabilitation fund (30100), and from the state university residence hall rehabilitation fund (30100) to the state university dormitory income fund (40350), in an amount not to exceed $80 million from each fund. § 14. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, at the request of the director of the budget, up to $700 million from the unencumbered balance of any special revenue fund or account, agency fund or account, internal service fund or account, enterprise fund or account, or any combination of such funds and accounts, to the general fund. The amounts transferred pursuant to this authorization shall be in addition to any other transfers expressly authorized in the 2021-22 budget. Transfers from federal funds, debt service funds, capital projects funds, the community projects fund, or funds that would result in the loss of eligibility for federal benefits or federal funds pursuant to federal law, rule, or regulation as assent- ed to in chapter 683 of the laws of 1938 and chapter 700 of the laws of 1951 are not permitted pursuant to this authorization. § 15. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, at the request of the director of the budget, up to $100 million from any non-general fund or account, or combination of funds and accounts, to the miscellaneous special revenue fund, tech- nology financing account (22207), the miscellaneous capital projects fund, the federal capital projects account (31350), information technol- ogy capital financing account (32215), or the centralized technology services account (55069), for the purpose of consolidating technology procurement and services. The amounts transferred to the miscellaneous special revenue fund, technology financing account (22207) pursuant to S. 2509--C 154 A. 3009--C this authorization shall be equal to or less than the amount of such monies intended to support information technology costs which are attributable, according to a plan, to such account made in pursuance to an appropriation by law. Transfers to the technology financing account shall be completed from amounts collected by non-general funds or accounts pursuant to a fund deposit schedule or permanent statute, and shall be transferred to the technology financing account pursuant to a schedule agreed upon by the affected agency commissioner. Transfers from funds that would result in the loss of eligibility for federal benefits or federal funds pursuant to federal law, rule, or regulation as assent- ed to in chapter 683 of the laws of 1938 and chapter 700 of the laws of 1951 are not permitted pursuant to this authorization. § 16. Notwithstanding any law to the contrary, and in accordance with section 4 of the state finance law, the comptroller is hereby authorized and directed to transfer, at the request of the director of the budget, up to $400 million from any non-general fund or account, or combination of funds and accounts, to the general fund for the purpose of consol- idating technology procurement and services. The amounts transferred pursuant to this authorization shall be equal to or less than the amount of such monies intended to support information technology costs which are attributable, according to a plan, to such account made in pursuance to an appropriation by law. Transfers to the general fund shall be completed from amounts collected by non-general funds or accounts pursu- ant to a fund deposit schedule. Transfers from funds that would result in the loss of eligibility for federal benefits or federal funds pursu- ant to federal law, rule, or regulation as assented to in chapter 683 of the laws of 1938 and chapter 700 of the laws of 1951 are not permitted pursuant to this authorization. § 17. Notwithstanding any provision of law to the contrary, as deemed feasible and advisable by its trustees, the power authority of the state of New York is authorized and directed to transfer to the state treasury to the credit of the general fund up to $20,000,000 for the state fiscal year commencing April 1, 2021, the proceeds of which will be utilized to support energy-related state activities. § 18. Notwithstanding any provision of law, rule or regulation to the contrary, the New York state energy research and development authority is authorized and directed to make the following contributions to the state treasury to the credit of the general fund on or before March 31, 2022: (a) $913,000; and (b) $23,000,000 from proceeds collected by the authority from the auction or sale of carbon dioxide emission allowances allocated by the department of environmental conservation. § 19. Notwithstanding any provision of law, rule or regulation to the contrary, the New York state energy research and development authority is authorized and directed to transfer five million dollars to the cred- it of the Environmental Protection Fund on or before March 31, 2022 from proceeds collected by the authority from the auction or sale of carbon dioxide emission allowances allocated by the department of environmental conservation. § 20. Subdivision 5 of section 97-rrr of the state finance law, as amended by section 20 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: 5. Notwithstanding the provisions of section one hundred seventy-one-a of the tax law, as separately amended by chapters four hundred eighty- one and four hundred eighty-four of the laws of nineteen hundred eight- y-one, and notwithstanding the provisions of chapter ninety-four of the laws of two thousand eleven, or any other provisions of law to the S. 2509--C 155 A. 3009--C contrary, during the fiscal year beginning April first, two thousand [twenty] TWENTY-ONE, the state comptroller is hereby authorized and directed to deposit to the fund created pursuant to this section from amounts collected pursuant to article twenty-two of the tax law and pursuant to a schedule submitted by the director of the budget, up to [$2,073,116,000] $1,979,457,000, as may be certified in such schedule as necessary to meet the purposes of such fund for the fiscal year begin- ning April first, two thousand [twenty] TWENTY-ONE. § 21. Notwithstanding any law to the contrary, the comptroller is hereby authorized and directed to transfer, upon request of the director of the budget, on or before March 31, 2022, the following amounts from the following special revenue accounts to the capital projects fund (30000), for the purposes of reimbursement to such fund for expenses related to the maintenance and preservation of state assets: 1. $43,000 from the miscellaneous special revenue fund, administrative program account (21982). 2. $1,478,000 from the miscellaneous special revenue fund, helen hayes hospital account (22140). 3. $392,000 from the miscellaneous special revenue fund, New York city veterans' home account (22141). 4. $570,000 from the miscellaneous special revenue fund, New York state home for veterans' and their dependents at oxford account (22142). 5. $170,000 from the miscellaneous special revenue fund, western New York veterans' home account (22143). 6. $323,000 from the miscellaneous special revenue fund, New York state for veterans in the lower-hudson valley account (22144). 7. $2,550,000 from the miscellaneous special revenue fund, patron services account (22163). 8. $7,502,241 from the miscellaneous special revenue fund, state university general income reimbursable account (22653). 9. $135,656,957 from the miscellaneous special revenue fund, state university revenue offset account (22655). 10. $49,329,802 from the state university dormitory income fund, state university dormitory income fund (40350). 11. $1,000,000 from the miscellaneous special revenue fund, litigation settlement and civil recovery account (22117). § 22. Intentionally omitted. § 22-a. Subdivision 8 of section 53 of the state finance law, as amended by chapter 58 of the laws of 1982, is amended to read as follows: 8. Notwithstanding the foregoing provisions of this section, in addi- tion to the restrictions set forth therein, the governor may authorize a transfer to the general fund, to a capital projects fund, or to a fund established to account for revenues from the federal government only after the approval of: (1) the temporary president of the senate or the chairman of the senate finance committee (THE "SENATE"); and (2) the speaker of the assembly or the chairman of the assembly ways and means committee (THE "ASSEMBLY"). PROVIDED HOWEVER, IF EITHER THE SENATE OR THE ASSEMBLY FAILS TO AFFIR- MATIVELY DENY OR APPROVE SUCH TRANSFER WITHIN TEN DAYS FROM THE DATE ON WHICH THE GOVERNOR PROVIDES NOTIFICATION OF SUCH TRANSFER, THEN THE TRANSFER SHALL BE DEEMED APPROVED BY BOTH THE SENATE AND THE ASSEMBLY. § 23. The opening paragraph of subdivision 3 of section 93-b of the state finance law, as amended by section 1 of part M of chapter 57 of the laws of 2016, is amended to read as follows: S. 2509--C 156 A. 3009--C Notwithstanding any other provisions of law to the contrary, commenc- ing on April first, two thousand [fifteen] TWENTY-ONE, and continuing through March thirty-first, two thousand [twenty-one] TWENTY-FIVE, the comptroller is hereby authorized to transfer monies from the dedicated infrastructure investment fund to the general fund, and from the general fund to the dedicated infrastructure investment fund, in an amount determined by the director of the budget to the extent moneys are avail- able in the fund; provided, however, that the comptroller is only authorized to transfer monies from the dedicated infrastructure invest- ment fund to the general fund in the event of an economic downturn as described in paragraph (a) of this subdivision; and/or to fulfill disal- lowances and/or settlements related to over-payments of federal medicare and medicaid revenues in excess of one hundred million dollars from anticipated levels, as determined by the director of the budget and described in paragraph (b) of this subdivision. § 24. Notwithstanding any other law, rule, or regulation to the contrary, the state comptroller is hereby authorized and directed to use any balance remaining in the mental health services fund debt service appropriation, after payment by the state comptroller of all obligations required pursuant to any lease, sublease, or other financing arrangement between the dormitory authority of the state of New York as successor to the New York state medical care facilities finance agency, and the facilities development corporation pursuant to chapter 83 of the laws of 1995 and the department of mental hygiene for the purpose of making payments to the dormitory authority of the state of New York for the amount of the earnings for the investment of monies deposited in the mental health services fund that such agency determines will or may have to be rebated to the federal government pursuant to the provisions of the internal revenue code of 1986, as amended, in order to enable such agency to maintain the exemption from federal income taxation on the interest paid to the holders of such agency's mental services facilities improvement revenue bonds. Annually on or before each June 30th, such agency shall certify to the state comptroller its determination of the amounts received in the mental health services fund as a result of the investment of monies deposited therein that will or may have to be rebated to the federal government pursuant to the provisions of the internal revenue code of 1986, as amended. § 25. Subdivision 1 of section 16 of part D of chapter 389 of the laws of 1997, relating to the financing of the correctional facilities improvement fund and the youth facility improvement fund, as amended by section 28 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: 1. Subject to the provisions of chapter 59 of the laws of 2000, but notwithstanding the provisions of section 18 of section 1 of chapter 174 of the laws of 1968, the New York state urban development corporation is hereby authorized to issue bonds, notes and other obligations in an aggregate principal amount not to exceed [eight billion eight hundred seventeen million two hundred ninety-nine thousand dollars $8,817,299,000] NINE BILLION ONE HUNDRED THIRTY-NINE MILLION SIX HUNDRED NINETEEN THOUSAND DOLLARS $9,139,619,000, and shall include all bonds, notes and other obligations issued pursuant to chapter 56 of the laws of 1983, as amended or supplemented. The proceeds of such bonds, notes or other obligations shall be paid to the state, for deposit in the correc- tional facilities capital improvement fund to pay for all or any portion of the amount or amounts paid by the state from appropriations or reap- propriations made to the department of corrections and community super- S. 2509--C 157 A. 3009--C vision from the correctional facilities capital improvement fund for capital projects. The aggregate amount of bonds, notes or other obli- gations authorized to be issued pursuant to this section shall exclude bonds, notes or other obligations issued to refund or otherwise repay bonds, notes or other obligations theretofore issued, the proceeds of which were paid to the state for all or a portion of the amounts expended by the state from appropriations or reappropriations made to the department of corrections and community supervision; provided, however, that upon any such refunding or repayment the total aggregate principal amount of outstanding bonds, notes or other obligations may be greater than [eight billion eight hundred seventeen million two hundred ninety-nine thousand dollars $8,817,299,000] NINE BILLION ONE HUNDRED THIRTY-NINE MILLION SIX HUNDRED NINETEEN THOUSAND DOLLARS $9,139,619,000, only if the present value of the aggregate debt service of the refunding or repayment bonds, notes or other obligations to be issued shall not exceed the present value of the aggregate debt service of the bonds, notes or other obligations so to be refunded or repaid. For the purposes hereof, the present value of the aggregate debt service of the refunding or repayment bonds, notes or other obligations and of the aggregate debt service of the bonds, notes or other obligations so refunded or repaid, shall be calculated by utilizing the effective interest rate of the refunding or repayment bonds, notes or other obli- gations, which shall be that rate arrived at by doubling the semi-annual interest rate (compounded semi-annually) necessary to discount the debt service payments on the refunding or repayment bonds, notes or other obligations from the payment dates thereof to the date of issue of the refunding or repayment bonds, notes or other obligations and to the price bid including estimated accrued interest or proceeds received by the corporation including estimated accrued interest from the sale ther- eof. § 26. Subdivision (a) of section 27 of part Y of chapter 61 of the laws of 2005, relating to providing for the administration of certain funds and accounts related to the 2005-2006 budget, as amended by section 29 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: (a) Subject to the provisions of chapter 59 of the laws of 2000, but notwithstanding any provisions of law to the contrary, the urban devel- opment corporation is hereby authorized to issue bonds or notes in one or more series in an aggregate principal amount not to exceed [three hundred twenty-three million one hundred thousand dollars $323,100,000] THREE HUNDRED SEVENTY-FOUR MILLION SIX HUNDRED THOUSAND DOLLARS $374,600,000, excluding bonds issued to finance one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previously issued, for the purpose of financing capital projects including IT initiatives for the division of state police, debt service and leases; and to reimburse the state general fund for disbursements made therefor. Such bonds and notes of such authorized issuer shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by the state to such authorized issuer for debt service and related expenses pursuant to any service contract executed pursuant to subdivision (b) of this section and such bonds and notes shall contain on the face thereof a statement to such effect. Except for purposes of complying with the internal revenue code, any interest income earned on bond proceeds shall only be used to pay debt service on such bonds. S. 2509--C 158 A. 3009--C § 27. Subdivision 3 of section 1285-p of the public authorities law, as amended by section 30 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: 3. The maximum amount of bonds that may be issued for the purpose of financing environmental infrastructure projects authorized by this section shall be [six billion three hundred seventy-four million ten thousand dollars $6,374,010,000] SEVEN BILLION ONE HUNDRED THIRTY MILLION TEN THOUSAND DOLLARS $7,130,010,000, exclusive of bonds issued to fund any debt service reserve funds, pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay bonds or notes previously issued. Such bonds and notes of the corporation shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by the state to the corporation for debt service and related expenses pursuant to any service contracts executed pursuant to subdivision one of this section, and such bonds and notes shall contain on the face thereof a statement to such effect. § 28. Subdivision (a) of section 48 of part K of chapter 81 of the laws of 2002, relating to providing for the administration of certain funds and accounts related to the 2002-2003 budget, as amended by section 31 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: (a) Subject to the provisions of chapter 59 of the laws of 2000 but notwithstanding the provisions of section 18 of the urban development corporation act, the corporation is hereby authorized to issue bonds or notes in one or more series in an aggregate principal amount not to exceed [three hundred fourteen million dollars $314,000,000] THREE HUNDRED FORTY-SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS $347,500,000, excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previously issued, for the purpose of financing capital costs related to homeland security and training facilities for the division of state police, the division of military and naval affairs, and any other state agency, including the reimbursement of any disbursements made from the state capital projects fund, and is hereby authorized to issue bonds or notes in one or more series in an aggregate principal amount not to exceed [$1,115,800,000 one billion one hundred fifteen million eight hundred thousand dollars] ONE BILLION THREE HUNDRED EIGHT MILLION SIX HUNDRED EIGHTY-SIX THOUSAND DOLLARS $1,308,686,000, excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previ- ously issued, for the purpose of financing improvements to State office buildings and other facilities located statewide, including the reimbursement of any disbursements made from the state capital projects fund. Such bonds and notes of the corporation shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by the state to the corporation for debt service and related expenses pursuant to any service contracts executed pursuant to subdivision (b) of this section, and such bonds and notes shall contain on the face thereof a statement to such effect. § 29. Paragraph (c) of subdivision 19 of section 1680 of the public authorities law, as amended by section 32 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: S. 2509--C 159 A. 3009--C (c) Subject to the provisions of chapter fifty-nine of the laws of two thousand, the dormitory authority shall not issue any bonds for state university educational facilities purposes if the principal amount of bonds to be issued when added to the aggregate principal amount of bonds issued by the dormitory authority on and after July first, nineteen hundred eighty-eight for state university educational facilities will exceed [fourteen billion seven hundred forty-one million eight hundred sixty-four thousand dollars $14,741,864,000] FIFTEEN BILLION FIVE HUNDRED FIFTY-FIVE MILLION EIGHT HUNDRED SIXTY-FOUR THOUSAND DOLLARS $15,555,864,000; provided, however, that bonds issued or to be issued shall be excluded from such limitation if: (1) such bonds are issued to refund state university construction bonds and state university construction notes previously issued by the housing finance agency; or (2) such bonds are issued to refund bonds of the authority or other obligations issued for state university educational facilities purposes and the present value of the aggregate debt service on the refunding bonds does not exceed the present value of the aggregate debt service on the bonds refunded thereby; provided, further that upon certification by the director of the budget that the issuance of refunding bonds or other obligations issued between April first, nineteen hundred ninety-two and March thirty-first, nineteen hundred ninety-three will generate long term economic benefits to the state, as assessed on a present value basis, such issuance will be deemed to have met the present value test noted above. For purposes of this subdivision, the present value of the aggregate debt service of the refunding bonds and the aggregate debt service of the bonds refunded, shall be calculated by utilizing the true interest cost of the refunding bonds, which shall be that rate arrived at by doubling the semi-annual interest rate (compounded semi-annually) necessary to discount the debt service payments on the refunding bonds from the payment dates thereof to the date of issue of the refunding bonds to the purchase price of the refunding bonds, including interest accrued thereon prior to the issuance thereof. The maturity of such bonds, other than bonds issued to refund outstanding bonds, shall not exceed the weighted average economic life, as certified by the state university construction fund, of the facilities in connection with which the bonds are issued, and in any case not later than the earlier of thirty years or the expiration of the term of any lease, sublease or other agreement relating thereto; provided that no note, including renewals thereof, shall mature later than five years after the date of issuance of such note. The legislature reserves the right to amend or repeal such limit, and the state of New York, the dormitory authority, the state university of New York, and the state university construction fund are prohibited from covenanting or making any other agreements with or for the benefit of bondholders which might in any way affect such right. § 30. Paragraph (c) of subdivision 14 of section 1680 of the public authorities law, as amended by section 33 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: (c) Subject to the provisions of chapter fifty-nine of the laws of two thousand, (i) the dormitory authority shall not deliver a series of bonds for city university community college facilities, except to refund or to be substituted for or in lieu of other bonds in relation to city university community college facilities pursuant to a resolution of the dormitory authority adopted before July first, nineteen hundred eighty- five or any resolution supplemental thereto, if the principal amount of bonds so to be issued when added to all principal amounts of bonds S. 2509--C 160 A. 3009--C previously issued by the dormitory authority for city university commu- nity college facilities, except to refund or to be substituted in lieu of other bonds in relation to city university community college facili- ties will exceed the sum of four hundred twenty-five million dollars and (ii) the dormitory authority shall not deliver a series of bonds issued for city university facilities, including community college facilities, pursuant to a resolution of the dormitory authority adopted on or after July first, nineteen hundred eighty-five, except to refund or to be substituted for or in lieu of other bonds in relation to city university facilities and except for bonds issued pursuant to a resolution supple- mental to a resolution of the dormitory authority adopted prior to July first, nineteen hundred eighty-five, if the principal amount of bonds so to be issued when added to the principal amount of bonds previously issued pursuant to any such resolution, except bonds issued to refund or to be substituted for or in lieu of other bonds in relation to city university facilities, will exceed [nine billion two hundred twenty-two million seven hundred thirty-two thousand dollars $9,222,732,000] NINE BILLION SIX HUNDRED SIXTY-ONE MILLION THIRTY THOUSAND DOLLARS $9,661,030,000. The legislature reserves the right to amend or repeal such limit, and the state of New York, the dormitory authority, the city university, and the fund are prohibited from covenanting or making any other agreements with or for the benefit of bondholders which might in any way affect such right. § 31. Subdivision 10-a of section 1680 of the public authorities law, as amended by section 34 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: 10-a. Subject to the provisions of chapter fifty-nine of the laws of two thousand, but notwithstanding any other provision of the law to the contrary, the maximum amount of bonds and notes to be issued after March thirty-first, two thousand two, on behalf of the state, in relation to any locally sponsored community college, shall be [one billion fifty-one million six hundred forty thousand dollars $1,051,640,000] ONE BILLION SIXTY-SIX MILLION TWO HUNDRED FIFTY-SEVEN THOUSAND DOLLARS $1,066,257,000. Such amount shall be exclusive of bonds and notes issued to fund any reserve fund or funds, costs of issuance and to refund any outstanding bonds and notes, issued on behalf of the state, relating to a locally sponsored community college. § 32. Subdivision 1 of section 17 of part D of chapter 389 of the laws of 1997, relating to the financing of the correctional facilities improvement fund and the youth facility improvement fund, as amended by section 35 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: 1. Subject to the provisions of chapter 59 of the laws of 2000, but notwithstanding the provisions of section 18 of section 1 of chapter 174 of the laws of 1968, the New York state urban development corporation is hereby authorized to issue bonds, notes and other obligations in an aggregate principal amount not to exceed [eight hundred forty million three hundred fifteen thousand dollars $840,315,000] EIGHT HUNDRED SEVENTY-SIX MILLION FIFTEEN THOUSAND DOLLARS $876,015,000, which author- ization increases the aggregate principal amount of bonds, notes and other obligations authorized by section 40 of chapter 309 of the laws of 1996, and shall include all bonds, notes and other obligations issued pursuant to chapter 211 of the laws of 1990, as amended or supplemented. The proceeds of such bonds, notes or other obligations shall be paid to the state, for deposit in the youth facilities improvement fund, to pay for all or any portion of the amount or amounts paid by the state from S. 2509--C 161 A. 3009--C appropriations or reappropriations made to the office of children and family services from the youth facilities improvement fund for capital projects. The aggregate amount of bonds, notes and other obligations authorized to be issued pursuant to this section shall exclude bonds, notes or other obligations issued to refund or otherwise repay bonds, notes or other obligations theretofore issued, the proceeds of which were paid to the state for all or a portion of the amounts expended by the state from appropriations or reappropriations made to the office of children and family services; provided, however, that upon any such refunding or repayment the total aggregate principal amount of outstand- ing bonds, notes or other obligations may be greater than [eight hundred forty million three hundred fifteen thousand dollars $840,315,000] EIGHT HUNDRED SEVENTY-SIX MILLION FIFTEEN THOUSAND DOLLARS $876,015,000, only if the present value of the aggregate debt service of the refunding or repayment bonds, notes or other obligations to be issued shall not exceed the present value of the aggregate debt service of the bonds, notes or other obligations so to be refunded or repaid. For the purposes hereof, the present value of the aggregate debt service of the refunding or repayment bonds, notes or other obligations and of the aggregate debt service of the bonds, notes or other obligations so refunded or repaid, shall be calculated by utilizing the effective interest rate of the refunding or repayment bonds, notes or other obligations, which shall be that rate arrived at by doubling the semi-annual interest rate (compounded semi-annually) necessary to discount the debt service payments on the refunding or repayment bonds, notes or other obligations from the payment dates thereof to the date of issue of the refunding or repayment bonds, notes or other obligations and to the price bid includ- ing estimated accrued interest or proceeds received by the corporation including estimated accrued interest from the sale thereof. § 33. Paragraph b of subdivision 2 of section 9-a of section 1 of chapter 392 of the laws of 1973, constituting the New York state medical care facilities finance agency act, as amended by section 36 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: b. The agency shall have power and is hereby authorized from time to time to issue negotiable bonds and notes in conformity with applicable provisions of the uniform commercial code in such principal amount as, in the opinion of the agency, shall be necessary, after taking into account other moneys which may be available for the purpose, to provide sufficient funds to the facilities development corporation, or any successor agency, for the financing or refinancing of or for the design, construction, acquisition, reconstruction, rehabilitation or improvement of mental health services facilities pursuant to paragraph a of this subdivision, the payment of interest on mental health services improve- ment bonds and mental health services improvement notes issued for such purposes, the establishment of reserves to secure such bonds and notes, the cost or premium of bond insurance or the costs of any financial mechanisms which may be used to reduce the debt service that would be payable by the agency on its mental health services facilities improve- ment bonds and notes and all other expenditures of the agency incident to and necessary or convenient to providing the facilities development corporation, or any successor agency, with funds for the financing or refinancing of or for any such design, construction, acquisition, recon- struction, rehabilitation or improvement and for the refunding of mental hygiene improvement bonds issued pursuant to section 47-b of the private housing finance law; provided, however, that the agency shall not issue mental health services facilities improvement bonds and mental health S. 2509--C 162 A. 3009--C services facilities improvement notes in an aggregate principal amount exceeding [nine billion nine hundred twenty-seven million two hundred seventy-six thousand dollars $9,927,276,000] TEN BILLION FOUR HUNDRED SEVENTY-SIX MILLION SEVEN HUNDRED SEVENTY-THREE THOUSAND DOLLARS $10,476,773,000, excluding mental health services facilities improvement bonds and mental health services facilities improvement notes issued to refund outstanding mental health services facilities improvement bonds and mental health services facilities improvement notes; provided, however, that upon any such refunding or repayment of mental health services facilities improvement bonds and/or mental health services facilities improvement notes the total aggregate principal amount of outstanding mental health services facilities improvement bonds and mental health facilities improvement notes may be greater than [nine billion nine hundred twenty-seven million two hundred seventy-six thou- sand dollars $9,927,276,000] TEN BILLION FOUR HUNDRED SEVENTY-SIX MILLION SEVEN HUNDRED SEVENTY-THREE THOUSAND DOLLARS $10,476,773,000, only if, except as hereinafter provided with respect to mental health services facilities bonds and mental health services facilities notes issued to refund mental hygiene improvement bonds authorized to be issued pursuant to the provisions of section 47-b of the private housing finance law, the present value of the aggregate debt service of the refunding or repayment bonds to be issued shall not exceed the present value of the aggregate debt service of the bonds to be refunded or repaid. For purposes hereof, the present values of the aggregate debt service of the refunding or repayment bonds, notes or other obligations and of the aggregate debt service of the bonds, notes or other obli- gations so refunded or repaid, shall be calculated by utilizing the effective interest rate of the refunding or repayment bonds, notes or other obligations, which shall be that rate arrived at by doubling the semi-annual interest rate (compounded semi-annually) necessary to discount the debt service payments on the refunding or repayment bonds, notes or other obligations from the payment dates thereof to the date of issue of the refunding or repayment bonds, notes or other obligations and to the price bid including estimated accrued interest or proceeds received by the authority including estimated accrued interest from the sale thereof. Such bonds, other than bonds issued to refund outstanding bonds, shall be scheduled to mature over a term not to exceed the aver- age useful life, as certified by the facilities development corporation, of the projects for which the bonds are issued, and in any case shall not exceed thirty years and the maximum maturity of notes or any renewals thereof shall not exceed five years from the date of the original issue of such notes. Notwithstanding the provisions of this section, the agency shall have the power and is hereby authorized to issue mental health services facilities improvement bonds and/or mental health services facilities improvement notes to refund outstanding mental hygiene improvement bonds authorized to be issued pursuant to the provisions of section 47-b of the private housing finance law and the amount of bonds issued or outstanding for such purposes shall not be included for purposes of determining the amount of bonds issued pursuant to this section. The director of the budget shall allocate the aggregate principal authorized to be issued by the agency among the office of mental health, office for people with developmental disabilities, and the office of addiction services and supports, in consultation with their respective commissioners to finance bondable appropriations previ- ously approved by the legislature. S. 2509--C 163 A. 3009--C § 34. Subdivision (a) of section 28 of part Y of chapter 61 of the laws of 2005, relating to providing for the administration of certain funds and accounts related to the 2005-2006 budget, as amended by section 37 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: (a) Subject to the provisions of chapter 59 of the laws of 2000, but notwithstanding any provisions of law to the contrary, one or more authorized issuers as defined by section 68-a of the state finance law are hereby authorized to issue bonds or notes in one or more series in an aggregate principal amount not to exceed [one hundred fifty-seven million dollars $157,000,000] ONE HUNDRED SEVENTY-TWO MILLION DOLLARS $172,000,000, excluding bonds issued to finance one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previously issued, for the purpose of financing capital projects for public protection facilities in the Division of Military and Naval Affairs, debt service and leases; and to reimburse the state general fund for disbursements made therefor. Such bonds and notes of such authorized issuer shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by the state to such authorized issuer for debt service and related expenses pursuant to any service contract executed pursuant to subdivision (b) of this section and such bonds and notes shall contain on the face thereof a statement to such effect. Except for purposes of complying with the internal revenue code, any interest income earned on bond proceeds shall only be used to pay debt service on such bonds. § 35. Section 53 of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, as amended by section 38 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: § 53. 1. Notwithstanding the provisions of any other law to the contrary, the dormitory authority and the urban development corporation are hereby authorized to issue bonds or notes in one or more series for the purpose of funding project costs for the acquisition of equipment, including but not limited to the creation or modernization of informa- tion technology systems and related research and development equipment, health and safety equipment, heavy equipment and machinery, the creation or improvement of security systems, and laboratory equipment and other state costs associated with such capital projects. The aggregate princi- pal amount of bonds authorized to be issued pursuant to this section shall not exceed [one hundred] TWO HUNDRED ninety-three million dollars [$193,000,000] $293,000,000, excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previously issued. Such bonds and notes of the dormitory authority and the urban development corporation shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by the state to the dormitory authority and the urban development corporation for principal, interest, and related expenses pursuant to a service contract and such bonds and notes shall contain on the face thereof a statement to such effect. Except for purposes of complying with the internal revenue code, any interest income earned on bond proceeds shall only be used to pay debt service on such bonds. S. 2509--C 164 A. 3009--C 2. Notwithstanding any other provision of law to the contrary, in order to assist the dormitory authority and the urban development corpo- ration in undertaking the financing for project costs for the acquisi- tion of equipment, including but not limited to the creation or modern- ization of information technology systems and related research and development equipment, health and safety equipment, heavy equipment and machinery, the creation or improvement of security systems, and labora- tory equipment and other state costs associated with such capital projects, the director of the budget is hereby authorized to enter into one or more service contracts with the dormitory authority and the urban development corporation, none of which shall exceed thirty years in duration, upon such terms and conditions as the director of the budget and the dormitory authority and the urban development corporation agree, so as to annually provide to the dormitory authority and the urban development corporation, in the aggregate, a sum not to exceed the prin- cipal, interest, and related expenses required for such bonds and notes. Any service contract entered into pursuant to this section shall provide that the obligation of the state to pay the amount therein provided shall not constitute a debt of the state within the meaning of any constitutional or statutory provision and shall be deemed executory only to the extent of monies available and that no liability shall be incurred by the state beyond the monies available for such purpose, subject to annual appropriation by the legislature. Any such contract or any payments made or to be made thereunder may be assigned and pledged by the dormitory authority and the urban development corporation as security for its bonds and notes, as authorized by this section. § 36. Subdivision (b) of section 11 of chapter 329 of the laws of 1991, amending the state finance law and other laws relating to the establishment of the dedicated highway and bridge trust fund, as amended by section 39 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: (b) Any service contract or contracts for projects authorized pursuant to sections 10-c, 10-f, 10-g and 80-b of the highway law and section 14-k of the transportation law, and entered into pursuant to subdivision (a) of this section, shall provide for state commitments to provide annually to the thruway authority a sum or sums, upon such terms and conditions as shall be deemed appropriate by the director of the budget, to fund, or fund the debt service requirements of any bonds or any obli- gations of the thruway authority issued to fund or to reimburse the state for funding such projects having a cost not in excess of [eleven billion three hundred forty-nine million eight hundred seventy-five thousand dollars $11,349,875,000] TWELVE BILLION TWO HUNDRED SIXTY MILLION FIVE HUNDRED TWENTY-EIGHT THOUSAND DOLLARS $12,260,528,000 cumulatively by the end of fiscal year [2020-21] 2021-22. § 37. Subdivision 1 of section 1689-i of the public authorities law, as amended by section 40 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: 1. The dormitory authority is authorized to issue bonds, at the request of the commissioner of education, to finance eligible library construction projects pursuant to section two hundred seventy-three-a of the education law, in amounts certified by such commissioner not to exceed a total principal amount of [two hundred sixty-five million dollars $265,000,000] TWO HUNDRED NINETY-NINE MILLION DOLLARS $299,000,000. § 38. Section 44 of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, as S. 2509--C 165 A. 3009--C amended by section 41 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: § 44. Issuance of certain bonds or notes. 1. Notwithstanding the provisions of any other law to the contrary, the dormitory authority and the corporation are hereby authorized to issue bonds or notes in one or more series for the purpose of funding project costs for the regional economic development council initiative, the economic transformation program, state university of New York college for nanoscale and science engineering, projects within the city of Buffalo or surrounding envi- rons, the New York works economic development fund, projects for the retention of professional football in western New York, the empire state economic development fund, the clarkson-trudeau partnership, the New York genome center, the cornell university college of veterinary medi- cine, the olympic regional development authority, projects at nano Utica, onondaga county revitalization projects, Binghamton university school of pharmacy, New York power electronics manufacturing consortium, regional infrastructure projects, high tech innovation and economic development infrastructure program, high technology manufacturing projects in Chautauqua and Erie county, an industrial scale research and development facility in Clinton county, upstate revitalization initi- ative projects, downstate revitalization initiative, market New York projects, fairground buildings, equipment or facilities used to house and promote agriculture, the state fair, the empire state trail, the moynihan station development project, the Kingsbridge armory project, strategic economic development projects, the cultural, arts and public spaces fund, water infrastructure in the city of Auburn and town of Owasco, a life sciences laboratory public health initiative, not-for- profit pounds, shelters and humane societies, arts and cultural facili- ties improvement program, restore New York's communities initiative, heavy equipment, economic development and infrastructure projects, Roosevelt Island operating corporation capital projects, Lake Ontario regional projects, Pennsylvania station and other transit projects and other state costs associated with such projects. The aggregate principal amount of bonds authorized to be issued pursuant to this section shall not exceed [ten billion three hundred thirty-four million eight hundred fifty-one thousand dollars $10,334,851,000] ELEVEN BILLION TWO HUNDRED SEVENTY-NINE MILLION TWO HUNDRED TWO THOUSAND DOLLARS $11,279,202,000, excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previously issued. Such bonds and notes of the dormitory authority and the corporation shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by the state to the dormitory authority and the corporation for principal, interest, and related expenses pursuant to a service contract and such bonds and notes shall contain on the face thereof a statement to such effect. Except for purposes of complying with the internal revenue code, any interest income earned on bond proceeds shall only be used to pay debt service on such bonds. 2. Notwithstanding any other provision of law to the contrary, in order to assist the dormitory authority and the corporation in undertak- ing the financing for project costs for the regional economic develop- ment council initiative, the economic transformation program, state university of New York college for nanoscale and science engineering, projects within the city of Buffalo or surrounding environs, the New York works economic development fund, projects for the retention of S. 2509--C 166 A. 3009--C professional football in western New York, the empire state economic development fund, the clarkson-trudeau partnership, the New York genome center, the cornell university college of veterinary medicine, the olym- pic regional development authority, projects at nano Utica, onondaga county revitalization projects, Binghamton university school of pharma- cy, New York power electronics manufacturing consortium, regional infrastructure projects, New York State Capital Assistance Program for Transportation, infrastructure, and economic development, high tech innovation and economic development infrastructure program, high tech- nology manufacturing projects in Chautauqua and Erie county, an indus- trial scale research and development facility in Clinton county, upstate revitalization initiative projects, downstate revitalization initiative, market New York projects, fairground buildings, equipment or facilities used to house and promote agriculture, the state fair, the empire state trail, the moynihan station development project, the Kingsbridge armory project, strategic economic development projects, the cultural, arts and public spaces fund, water infrastructure in the city of Auburn and town of Owasco, a life sciences laboratory public health initiative, not-for- profit pounds, shelters and humane societies, arts and cultural facili- ties improvement program, restore New York's communities initiative, heavy equipment, economic development and infrastructure projects, Roosevelt Island operating corporation capital projects, Lake Ontario regional projects, Pennsylvania station and other transit projects and other state costs associated with such projects the director of the budget is hereby authorized to enter into one or more service contracts with the dormitory authority and the corporation, none of which shall exceed thirty years in duration, upon such terms and conditions as the director of the budget and the dormitory authority and the corporation agree, so as to annually provide to the dormitory authority and the corporation, in the aggregate, a sum not to exceed the principal, inter- est, and related expenses required for such bonds and notes. Any service contract entered into pursuant to this section shall provide that the obligation of the state to pay the amount therein provided shall not constitute a debt of the state within the meaning of any constitutional or statutory provision and shall be deemed executory only to the extent of monies available and that no liability shall be incurred by the state beyond the monies available for such purpose, subject to annual appro- priation by the legislature. Any such contract or any payments made or to be made thereunder may be assigned and pledged by the dormitory authority and the corporation as security for its bonds and notes, as authorized by this section. § 39. Subdivision 1 of section 386-b of the public authorities law, as amended by section 42 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: 1. Notwithstanding any other provision of law to the contrary, the authority, the dormitory authority and the urban development corporation are hereby authorized to issue bonds or notes in one or more series for the purpose of financing peace bridge projects and capital costs of state and local highways, parkways, bridges, the New York state thruway, Indian reservation roads, and facilities, and transportation infrastruc- ture projects including aviation projects, non-MTA mass transit projects, and rail service preservation projects, including work appur- tenant and ancillary thereto. The aggregate principal amount of bonds authorized to be issued pursuant to this section shall not exceed [six billion nine hundred forty-two million four hundred sixty-three thousand dollars $6,942,463,000] EIGHT BILLION EIGHT HUNDRED THIRTY-NINE MILLION S. 2509--C 167 A. 3009--C NINE HUNDRED SIXTY-THREE THOUSAND DOLLARS $8,839,963,000, excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and to refund or otherwise repay such bonds or notes previously issued. Such bonds and notes of the authori- ty, the dormitory authority and the urban development corporation shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by the state to the authority, the dormitory authority and the urban development corporation for principal, interest, and related expenses pursuant to a service contract and such bonds and notes shall contain on the face thereof a statement to such effect. Except for purposes of complying with the internal revenue code, any interest income earned on bond proceeds shall only be used to pay debt service on such bonds. § 40. Paragraph (a) of subdivision 2 of section 47-e of the private housing finance law, as amended by section 43 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: (a) Subject to the provisions of chapter fifty-nine of the laws of two thousand, in order to enhance and encourage the promotion of housing programs and thereby achieve the stated purposes and objectives of such housing programs, the agency shall have the power and is hereby author- ized from time to time to issue negotiable housing program bonds and notes in such principal amount as shall be necessary to provide suffi- cient funds for the repayment of amounts disbursed (and not previously reimbursed) pursuant to law or any prior year making capital appropri- ations or reappropriations for the purposes of the housing program; provided, however, that the agency may issue such bonds and notes in an aggregate principal amount not exceeding [six billion five hundred thir- ty-one million five hundred twenty-three thousand dollars $6,531,523,000] SEVEN BILLION FIVE HUNDRED FORTY-FIVE MILLION ONE HUNDRED SEVEN THOUSAND DOLLARS $7,545,107,000, plus a principal amount of bonds issued to fund the debt service reserve fund in accordance with the debt service reserve fund requirement established by the agency and to fund any other reserves that the agency reasonably deems necessary for the security or marketability of such bonds and to provide for the payment of fees and other charges and expenses, including underwriters' discount, trustee and rating agency fees, bond insurance, credit enhancement and liquidity enhancement related to the issuance of such bonds and notes. No reserve fund securing the housing program bonds shall be entitled or eligible to receive state funds apportioned or appropriated to maintain or restore such reserve fund at or to a partic- ular level, except to the extent of any deficiency resulting directly or indirectly from a failure of the state to appropriate or pay the agreed amount under any of the contracts provided for in subdivision four of this section. § 41. Subdivision 1 of section 50 of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corpo- ration act, as amended by section 44 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: 1. Notwithstanding the provisions of any other law to the contrary, the dormitory authority and the urban development corporation are hereby authorized to issue bonds or notes in one or more series for the purpose of funding project costs undertaken by or on behalf of THE STATE EDUCA- TION DEPARTMENT, special act school districts, state-supported schools for the blind and deaf, approved private special education schools, non-public schools, community centers, day care facilities, residential camps, day camps, and other state costs associated with such capital S. 2509--C 168 A. 3009--C projects. The aggregate principal amount of bonds authorized to be issued pursuant to this section shall not exceed [one hundred fifty-five million dollars $155,000,000] TWO HUNDRED THIRTY-SIX MILLION DOLLARS $236,000,000, excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previously issued. Such bonds and notes of the dormitory authority and the urban development corporation shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by the state to the dormitory authority and the urban development corporation for principal, interest, and related expenses pursuant to a service contract and such bonds and notes shall contain on the face thereof a statement to such effect. Except for purposes of complying with the internal revenue code, any interest income earned on bond proceeds shall only be used to pay debt service on such bonds. § 42. Subdivision 1 of section 47 of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corpo- ration act, as amended by section 45 of part JJ of chapter 56 of the laws of 2020, is amended to read as follows: 1. Notwithstanding the provisions of any other law to the contrary, the dormitory authority and the corporation are hereby authorized to issue bonds or notes in one or more series for the purpose of funding project costs for the office of information technology services, depart- ment of law, and other state costs associated with such capital projects. The aggregate principal amount of bonds authorized to be issued pursuant to this section shall not exceed [eight hundred thirty million fifty-four thousand dollars, $830,054,000] NINE HUNDRED SEVEN- TY-FOUR MILLION TWO HUNDRED FIFTY-FOUR THOUSAND DOLLARS $974,254,000 excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previously issued. Such bonds and notes of the dormitory authority and the corporation shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by the state to the dormitory authority and the corporation for principal, interest, and related expenses pursuant to a service contract and such bonds and notes shall contain on the face thereof a statement to such effect. Except for purposes of complying with the internal revenue code, any interest income earned on bond proceeds shall only be used to pay debt service on such bonds. § 43. Paragraph (b) of subdivision 1 of section 385 of the public authorities law, as amended by section 1 of part G of chapter 60 of the laws of 2005, is amended to read as follows: (b) The authority is hereby authorized, as additional corporate purposes thereof solely upon the request of the director of the budget: (i) to issue special emergency highway and bridge trust fund bonds and notes for a term not to exceed thirty years and to incur obligations secured by the moneys appropriated from the dedicated highway and bridge trust fund established in section eighty-nine-b of the state finance law; (ii) to make available the proceeds in accordance with instructions provided by the director of the budget from the sale of such special emergency highway and bridge trust fund bonds, notes or other obli- gations, net of all costs to the authority in connection therewith, for the purposes of financing all or a portion of the costs of activities for which moneys in the dedicated highway and bridge trust fund estab- S. 2509--C 169 A. 3009--C lished in section eighty-nine-b of the state finance law are authorized to be utilized or for the financing of disbursements made by the state for the activities authorized pursuant to section eighty-nine-b of the state finance law; and (iii) to enter into agreements with the commis- sioner of transportation pursuant to section ten-e of the highway law with respect to financing for any activities authorized pursuant to section eighty-nine-b of the state finance law, or agreements with the commissioner of transportation pursuant to sections ten-f and ten-g of the highway law in connection with activities on state highways pursuant to these sections, and (iv) to enter into service contracts, contracts, agreements, deeds and leases with the director of the budget or the commissioner of transportation and project sponsors and others to provide for the financing by the authority of activities authorized pursuant to section eighty-nine-b of the state finance law, and each of the director of the budget and the commissioner of transportation are hereby authorized to enter into service contracts, contracts, agree- ments, deeds and leases with the authority, project sponsors or others to provide for such financing. The authority shall not issue any bonds or notes in an amount in excess of [$16.5 billion] EIGHTEEN BILLION ONE HUNDRED FIFTY MILLION DOLLARS $18,150,000,000, plus a principal amount of bonds or notes: (A) to fund capital reserve funds; (B) to provide capitalized interest; and, (C) to fund other costs of issuance. In computing for the purposes of this subdivision, the aggregate amount of indebtedness evidenced by bonds and notes of the authority issued pursu- ant to this section, as amended by a chapter of the laws of nineteen hundred ninety-six, there shall be excluded the amount of bonds or notes issued that would constitute interest under the United States Internal Revenue Code of 1986, as amended, and the amount of indebtedness issued to refund or otherwise repay bonds or notes. § 44. Subdivision 1 of section 386-a of the public authorities law, as amended by section 44 of part TTT of chapter 59 of the laws of 2019, is amended to read as follows: 1. Notwithstanding any other provision of law to the contrary, the authority, the dormitory authority and the urban development corporation are hereby authorized to issue bonds or notes in one or more series for the purpose of assisting the metropolitan transportation authority in the financing of transportation facilities as defined in subdivision seventeen of section twelve hundred sixty-one of this chapter or other capital projects. The aggregate principal amount of bonds authorized to be issued pursuant to this section shall not exceed [two billion one hundred seventy-nine million eight hundred fifty-six thousand dollars $2,179,856,000] TWELVE BILLION FIVE HUNDRED FIFTEEN MILLION EIGHT HUNDRED FIFTY-SIX THOUSAND DOLLARS $12,515,856,000, excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and to refund or otherwise repay such bonds or notes previously issued. Such bonds and notes of the authority, the dormitory authority and the urban development corporation shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by the state to the authority, the dormitory authority and the urban develop- ment corporation for principal, interest, and related expenses pursuant to a service contract and such bonds and notes shall contain on the face thereof a statement to such effect. Except for purposes of complying with the internal revenue code, any interest income earned on bond proceeds shall only be used to pay debt service on such bonds. NOTWITH- STANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, INCLUDING THE LIMI- S. 2509--C 170 A. 3009--C TATIONS CONTAINED IN SUBDIVISION FOUR OF SECTION SIXTY-SEVEN-B OF THE STATE FINANCE LAW, (A) ANY BONDS AND NOTES ISSUED PRIOR TO APRIL FIRST, TWO THOUSAND TWENTY-TWO PURSUANT TO THIS SECTION MAY BE ISSUED WITH A MAXIMUM MATURITY OF FIFTY YEARS, AND (B) ANY BONDS ISSUED TO REFUND SUCH BONDS AND NOTES MAY BE ISSUED WITH A MAXIMUM MATURITY OF FIFTY YEARS FROM THE RESPECTIVE DATE OF ORIGINAL ISSUANCE OF SUCH BONDS AND NOTES. § 45. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 57 to read as follows: § 57. 1. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW TO THE CONTRARY, THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION ARE HEREBY AUTHORIZED TO ISSUE BONDS OR NOTES IN ONE OR MORE SERIES FOR THE PURPOSE OF FUNDING PROJECT COSTS FOR THE EMPIRE STATION COMPLEX PROJECT, AND SUCH PROJECT SHALL BE DEEMED A CAPITAL WORK OR PURPOSE FOR PURPOSES OF SUBDIVISION 3 OF SECTION 67-B OF THE STATE FINANCE LAW. THE AGGREGATE PRINCIPAL AMOUNT OF BONDS AUTHORIZED TO BE ISSUED PURSUANT TO THIS SECTION SHALL NOT EXCEED ONE BILLION THREE HUNDRED MILLION DOLLARS $1,300,000,000, EXCLUDING BONDS ISSUED TO FUND ONE OR MORE DEBT SERVICE RESERVE FUNDS, TO PAY COSTS OF ISSUANCE OF SUCH BONDS, AND BONDS OR NOTES ISSUED TO REFUND OR OTHERWISE REPAY SUCH BONDS OR NOTES PREVIOUSLY ISSUED. SUCH BONDS AND NOTES OF THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION SHALL NOT BE A DEBT OF THE STATE, AND THE STATE SHALL NOT BE LIABLE THEREON, NOR SHALL THEY BE PAYABLE OUT OF ANY FUNDS OTHER THAN THOSE APPROPRIATED BY THE STATE TO THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION FOR PRINCIPAL, INTEREST, AND RELATED EXPENSES PURSUANT TO A SERVICE CONTRACT AND SUCH BONDS AND NOTES SHALL CONTAIN ON THE FACE THEREOF A STATEMENT TO SUCH EFFECT. EXCEPT FOR PURPOSES OF COMPLYING WITH THE INTERNAL REVENUE CODE, ANY INTEREST INCOME EARNED ON BOND PROCEEDS SHALL ONLY BE USED TO PAY DEBT SERVICE ON SUCH BONDS. 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, IN ORDER TO ASSIST THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPO- RATION IN UNDERTAKING THE FINANCING FOR PROJECT COSTS FOR THE EMPIRE STATION COMPLEX PROJECT, THE DIRECTOR OF THE BUDGET IS HEREBY AUTHORIZED TO ENTER INTO ONE OR MORE SERVICE CONTRACTS WITH THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION, NONE OF WHICH SHALL EXCEED THIRTY YEARS IN DURATION, UPON SUCH TERMS AND CONDITIONS AS THE DIRECTOR OF THE BUDGET AND THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION AGREE, SO AS TO ANNUALLY PROVIDE TO THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION, IN THE AGGREGATE, A SUM NOT TO EXCEED THE PRINCIPAL, INTEREST, AND RELATED EXPENSES REQUIRED FOR SUCH BONDS AND NOTES. ANY SERVICE CONTRACT ENTERED INTO PURSUANT TO THIS SECTION SHALL PROVIDE THAT THE OBLIGATION OF THE STATE TO PAY THE AMOUNT THEREIN PROVIDED SHALL NOT CONSTITUTE A DEBT OF THE STATE WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION AND SHALL BE DEEMED EXECUTORY ONLY TO THE EXTENT OF MONIES AVAILABLE AND THAT NO LIABILITY SHALL BE INCURRED BY THE STATE BEYOND THE MONIES AVAILABLE FOR SUCH PURPOSE, SUBJECT TO ANNUAL APPROPRIATION BY THE LEGISLATURE. ANY SUCH CONTRACT OR ANY PAYMENTS MADE OR TO BE MADE THEREUNDER MAY BE ASSIGNED AND PLEDGED BY THE DORMITORY AUTHORITY AND THE URBAN DEVELOPMENT CORPORATION AS SECURITY FOR ITS BONDS AND NOTES, AS AUTHORIZED BY THIS SECTION. § 46. Subdivision 1 of section 49 of section 1 of chapter 147 of the laws of 1968, constituting the New York state urban development corpo- ration act, as amended by section 6 of part K of chapter 39 of the laws of 2019, is amended to read as follows: S. 2509--C 171 A. 3009--C 1. Notwithstanding the provisions of any other law to the contrary, the dormitory authority and the corporation are hereby authorized to issue bonds or notes in one or more series for the purpose of funding project costs for the state and municipal facilities program and other state costs associated with such capital projects. The aggregate princi- pal amount of bonds authorized to be issued pursuant to this section shall not exceed [two billion seven hundred ninety-eight million five hundred thousand] THREE BILLION ONE HUNDRED EIGHTY-THREE MILLION FIVE HUNDRED THOUSAND dollars $3,183,500,000, excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previously issued. Such bonds and notes of the dormitory authority and the corporation shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by the state to the dormitory authority and the corporation for principal, interest, and related expenses pursuant to a service contract and such bonds and notes shall contain on the face thereof a statement to such effect. Except for purposes of complying with the internal revenue code, any interest income earned on bond proceeds shall only be used to pay debt service on such bonds. § 47. Subdivision 1 of section 1680-r of the public authorities law, as amended by section 47 of part BBB of chapter 59 of the laws of 2018, is amended to read as follows: 1. Notwithstanding the provisions of any other law to the contrary, the dormitory authority and the urban development corporation are hereby authorized to issue bonds or notes in one or more series for the purpose of funding project costs for the capital restructuring financing program for health care and related facilities licensed pursuant to the public health law or the mental hygiene law and other state costs associated with such capital projects, the health care facility transformation programs, [and] the essential health care provider program, AND OTHER HEALTH CARE CAPITAL PROJECT COSTS. The aggregate principal amount of bonds authorized to be issued pursuant to this section shall not exceed [three billion fifty million dollars] THREE BILLION FIFTY-THREE MILLION DOLLARS $3,053,000,000, excluding bonds issued to fund one or more debt service reserve funds, to pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay such bonds or notes previ- ously issued. Such bonds and notes of the dormitory authority and the urban development corporation shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by the state to the dormitory authority and the urban development corporation for principal, interest, and related expenses pursuant to a service contract and such bonds and notes shall contain on the face thereof a statement to such effect. Except for purposes of complying with the internal revenue code, any interest income earned on bond proceeds shall only be used to pay debt service on such bonds. § 48. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 54-a to read as follows: § 54-A. PERSONAL INCOME TAX NOTES; 2022. 1. FINDINGS AND DECLARATION OF NEED. (A) THE STATE OF NEW YORK FINDS AND DETERMINES THAT THE GLOBAL SPREAD OF THE COVID-19 PANDEMIC HAS HAD AND IS EXPECTED TO CONTINUE TO HAVE A SIGNIFICANT ADVERSE IMPACT ON THE HEALTH AND WELFARE OF INDIVID- UALS IN THE STATE AS WELL AS TO THE FINANCIAL CONDITION OF THE STATE S. 2509--C 172 A. 3009--C DURING THE STATE'S 2021 AND 2022 FISCAL YEARS AND BEYOND. THE ANTIC- IPATED SHORTFALLS AND DEFERRALS IN THE STATE'S FINANCIAL PLAN RECEIPTS CAUSED BY THE COVID-19 PANDEMIC HAS REQUIRED THE STATE TO ADOPT POLI- CIES, REGULATIONS AND PROCEDURES THAT SUSPEND VARIOUS LEGAL REQUIREMENTS AND ADDRESS STATE BUDGETARY PRESSURES, SOME OF WHICH REQUIRE CERTAIN FISCAL MANAGEMENT AUTHORIZATION MEASURES TO BE LEGISLATIVELY AUTHORIZED AND ESTABLISHED. (B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, INCLUDING, SPECIFICALLY, THE PROVISIONS OF CHAPTER 59 OF THE LAWS OF 2000 AND SECTION SIXTY-SEVEN-B OF THE STATE FINANCE LAW, THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND THE CORPORATION ARE HEREBY AUTHORIZED FOR THE STATE'S 2022 FISCAL YEAR, TO ISSUE UNTIL DECEMBER 31, 2021, NOTES WITH A MATURITY NO LATER THAN MARCH 31, 2022, TO BE DESIG- NATED AS PERSONAL INCOME TAX REVENUE ANTICIPATION NOTES, IN ONE OR MORE SERIES IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED THREE BILLION DOLLARS, EXCLUDING ANY SUCH NOTES ISSUED TO FINANCE ONE OR MORE DEBT SERVICE RESERVE FUNDS, AND TO PAY COSTS OF ISSUANCE OF SUCH NOTES, FOR THE PURPOSE OF TEMPORARILY FINANCING BUDGETARY NEEDS OF THE STATE. SUCH PURPOSE SHALL CONSTITUTE AN AUTHORIZED PURPOSE UNDER SUBDIVISION TWO OF SECTION SIXTY-EIGHT-A OF THE STATE FINANCE LAW FOR ALL PURPOSES OF ARTI- CLE FIVE-C OF THE STATE FINANCE LAW WITH RESPECT TO THE NOTES AUTHORIZED BY THIS PARAGRAPH. SUCH NOTES SHALL NOT BE RENEWED OR REFUNDED BEYOND MARCH 31, 2022. FOR SO LONG AS ANY NOTES AUTHORIZED BY THIS PARAGRAPH SHALL REMAIN OUTSTANDING, THE RESTRICTIONS, LIMITATIONS AND REQUIREMENTS CONTAINED IN ARTICLE FIVE-B OF THE STATE FINANCE LAW SHALL NOT APPLY, OTHER THAN SUBDIVISION FOUR OF SECTION SIXTY-SEVEN-B OF SUCH ARTICLE. (C) SUCH NOTES OF THE DORMITORY AUTHORITY AND THE CORPORATION SHALL NOT BE A DEBT OF THE STATE, AND THE STATE SHALL NOT BE LIABLE THEREON, NOR SHALL THEY BE PAYABLE OUT OF ANY FUNDS OTHER THAN THOSE APPROPRIATED BY THE STATE TO THE DORMITORY AUTHORITY AND THE CORPORATION FOR DEBT SERVICE AND RELATED EXPENSES PURSUANT TO ANY FINANCING AGREEMENT DESCRIBED IN PARAGRAPH (D) OF THIS SUBDIVISION, AND SUCH NOTES SHALL CONTAIN ON THE FACE THEREOF A STATEMENT TO SUCH EFFECT. SUCH NOTES SHALL BE ISSUED ON A SUBORDINATE BASIS AND SHALL BE SECURED BY SUBORDINATE PAYMENTS FROM THE REVENUE BOND TAX FUND ESTABLISHED PURSUANT TO SECTION NINETY-TWO-Z OF THE STATE FINANCE LAW. EXCEPT FOR PURPOSES OF COMPLYING WITH THE INTERNAL REVENUE CODE, ANY INTEREST INCOME EARNED ON NOTE PROCEEDS SHALL ONLY BE USED TO PAY DEBT SERVICE ON SUCH NOTES. ALL OF THE PROVISIONS OF THE STATE FINANCE LAW, THE DORMITORY AUTHORITY ACT AND THIS ACT RELATING TO NOTES AND BONDS WHICH ARE NOT INCONSISTENT WITH THE PROVISIONS OF THIS SECTION SHALL APPLY TO NOTES AUTHORIZED BY PARAGRAPH (B) OF THIS SUBDIVISION, INCLUDING BUT NOT LIMITED TO THE POWER TO ESTABLISH ADEQUATE RESERVES THEREFOR, SUBJECT TO THE FINAL MATURITY LIMITATION FOR SUCH NOTES SET FORTH IN PARAGRAPH (B) OF THIS SUBDIVI- SION. THE ISSUANCE OF ANY NOTES AUTHORIZED BY PARAGRAPH (B) OF THIS SUBDIVISION SHALL FURTHER BE SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE DIVISION OF THE BUDGET. (D) NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY BUT SUBJECT TO THE LIMITATIONS CONTAINED IN PARAGRAPH (B) OF THIS SUBDI- VISION, IN ORDER TO ASSIST THE DORMITORY AUTHORITY AND THE CORPORATION IN UNDERTAKING THE ADMINISTRATION AND FINANCING OF SUCH NOTES, THE DIRECTOR OF THE BUDGET IS HEREBY AUTHORIZED TO SUPPLEMENT ANY EXISTING FINANCING AGREEMENT WITH THE DORMITORY AUTHORITY AND THE CORPORATION, OR TO ENTER INTO A NEW FINANCING AGREEMENT WITH THE DORMITORY AUTHORITY AND THE CORPORATION, UPON SUCH TERMS AND CONDITIONS AS THE DIRECTOR OF THE BUDGET AND THE DORMITORY AUTHORITY AND THE CORPORATION SHALL AGREE, SO S. 2509--C 173 A. 3009--C AS TO PROVIDE TO THE DORMITORY AUTHORITY AND THE CORPORATION, A SUM NOT TO EXCEED THE DEBT SERVICE PAYMENTS AND RELATED EXPENSES REQUIRED FOR ANY NOTES ISSUED PURSUANT TO THIS SECTION. ANY FINANCING AGREEMENT SUPPLEMENTED OR ENTERED INTO PURSUANT TO THIS SECTION SHALL PROVIDE THAT THE OBLIGATION OF THE STATE TO PAY THE AMOUNT THEREIN PROVIDED SHALL NOT CONSTITUTE A DEBT OF THE STATE WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION AND SHALL BE DEEMED EXECUTORY ONLY TO THE EXTENT OF MONIES AVAILABLE AND THAT NO LIABILITY SHALL BE INCURRED BY THE STATE BEYOND THE MONIES AVAILABLE FOR SUCH PURPOSES, SUBJECT TO ANNUAL APPRO- PRIATION BY THE LEGISLATURE. ANY SUCH FINANCING AGREEMENT OR ANY PAYMENTS MADE OR TO BE MADE THEREUNDER MAY BE ASSIGNED OR PLEDGED BY THE DORMITORY AUTHORITY AND THE CORPORATION AS SECURITY FOR THE NOTES AUTHORIZED BY PARAGRAPH (B) OF THIS SUBDIVISION. (E) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, INCLUDING SPECIFICALLY THE PROVISIONS OF SUBDIVISION 3 OF SECTION 67-B OF THE STATE FINANCE LAW, NO CAPITAL WORK OR PURPOSE SHALL BE REQUIRED FOR ANY ISSUANCE OF PERSONAL INCOME TAX REVENUE ANTICIPATION NOTES ISSUED BY THE DORMITORY AUTHORITY AND THE CORPORATION PURSUANT TO THIS SECTION. (F) NOTWITHSTANDING ANY OTHER LAW, RULE, OR REGULATION TO THE CONTRA- RY, THE COMPTROLLER IS HEREBY AUTHORIZED AND DIRECTED TO DEPOSIT TO THE CREDIT OF THE GENERAL FUND, ALL PROCEEDS OF PERSONAL INCOME TAX REVENUE ANTICIPATION NOTES ISSUED BY THE DORMITORY AUTHORITY AND THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION PURSUANT TO THIS SECTION. 2. EFFECT OF INCONSISTENT PROVISIONS. INSOFAR AS THE PROVISIONS OF THIS SECTION ARE INCONSISTENT WITH THE PROVISIONS OF ANY OTHER LAW, GENERAL, SPECIAL, OR LOCAL, THE PROVISIONS OF THIS SECTION SHALL BE CONTROLLING. 3. SEVERABILITY; CONSTRUCTION. THE PROVISIONS OF THIS SECTION SHALL BE SEVERABLE, AND IF THE APPLICATION OF ANY CLAUSE, SENTENCE, PARAGRAPH, SUBDIVISION, SECTION OR PART OF THIS SECTION TO ANY PERSON OR CIRCUM- STANCE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURISDICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT NECESSARILY AFFECT, IMPAIR OR INVALI- DATE THE APPLICATION OF ANY SUCH CLAUSE, SENTENCE, PARAGRAPH, SUBDIVI- SION, SECTION, PART OF THIS SECTION OR REMAINDER THEREOF, AS THE CASE MAY BE, TO ANY OTHER PERSON OR CIRCUMSTANCE, BUT SHALL BE CONFINED IN ITS OPERATION TO THE CLAUSE, SENTENCE, PARAGRAPH, SUBDIVISION, SECTION OR PART THEREOF DIRECTLY INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDG- MENT SHALL HAVE BEEN RENDERED. § 49. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 55-a to read as follows: § 55-A. LINE OF CREDIT FACILITIES; 2022. 1. FINDINGS AND DECLARATION OF NEED. (A) THE STATE OF NEW YORK FINDS AND DETERMINES THAT THE GLOBAL SPREAD OF THE COVID-19 PANDEMIC HAS HAD AND IS EXPECTED TO CONTINUE TO HAVE A SIGNIFICANT ADVERSE IMPACT ON THE HEALTH AND WELFARE OF INDIVID- UALS IN THE STATE AS WELL AS TO THE FINANCIAL CONDITION OF THE STATE DURING THE STATE'S 2021 AND 2022 FISCAL YEARS AND BEYOND. THE ANTIC- IPATED SHORTFALLS AND DEFERRALS IN THE STATE'S FINANCIAL PLAN RECEIPTS CAUSED BY THE COVID-19 PANDEMIC HAS REQUIRED THE STATE, TO ADOPT POLI- CIES, REGULATIONS AND PROCEDURES THAT SUSPEND VARIOUS LEGAL REQUIREMENTS AND ADDRESS STATE BUDGETARY PRESSURES, SOME OF WHICH REQUIRE CERTAIN FISCAL MANAGEMENT AUTHORIZATION MEASURES TO BE LEGISLATIVELY AUTHORIZED AND ESTABLISHED. (B) DEFINITIONS. WHEN USED IN THIS SUBDIVISION "RELATED EXPENSES AND FEES" SHALL MEAN INTEREST COSTS, COMMITMENT FEES AND OTHER COSTS, S. 2509--C 174 A. 3009--C EXPENSES AND FEES INCURRED IN CONNECTION WITH A LINE OF CREDIT FACILITY AND/OR A SERVICE CONTRACT OR OTHER AGREEMENT OF THE STATE SECURING SUCH LINE OF CREDIT FACILITY THAT CONTRACTUALLY OBLIGATES THE STATE TO PAY DEBT SERVICE SUBJECT TO AN APPROPRIATION. (C) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, INCLUDING, SPECIFICALLY, THE PROVISIONS OF CHAPTER 59 OF THE LAWS OF 2000 AND SECTION 67-B OF THE STATE FINANCE LAW, THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND THE URBAN DEVELOPMENT CORPORATION ARE AUTHORIZED UNTIL MARCH 31, 2022 TO: (I) ENTER INTO COMMITMENTS WITH FINANCIAL INSTITUTIONS FOR THE ESTABLISHMENT OF ONE OR MORE LINE OF CREDIT FACILITIES AND OTHER SIMILAR REVOLVING FINANCING ARRANGEMENTS NOT IN EXCESS OF TWO BILLION DOLLARS IN AGGREGATE PRINCIPAL AMOUNT; (II) DRAW, AT ONE OR MORE TIMES AT THE DIRECTION OF THE DIRECTOR OF THE BUDG- ET, UPON SUCH LINE OF CREDIT FACILITIES AND PROVIDE TO THE STATE THE AMOUNTS SO DRAWN FOR THE PURPOSE OF ASSISTING THE STATE TO TEMPORARILY FINANCE ITS BUDGETARY NEEDS; PROVIDED, HOWEVER, THAT THE TOTAL AMOUNT OF SUCH DRAWS SHALL NOT EXCEED TWO BILLION DOLLARS; AND (III) SECURE REPAY- MENT OF SUCH DRAWS UNDER SUCH LINE OF CREDIT FACILITIES, TOGETHER WITH RELATED EXPENSES AND FEES, WHICH PAYMENT OBLIGATION THEREUNDER SHALL NOT CONSTITUTE A DEBT OF THE STATE WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION AND SHALL BE DEEMED EXECUTORY ONLY TO THE EXTENT MONEYS ARE AVAILABLE AND THAT NO LIABILITY SHALL BE INCURRED BY THE STATE BEYOND THE MONEYS AVAILABLE FOR SUCH PURPOSE, AND THAT SUCH PAYMENT OBLIGATION IS SUBJECT TO ANNUAL APPROPRIATION BY THE LEGISLA- TURE. ANY LINE OF CREDIT FACILITY AGREEMENTS ENTERED BY THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND/OR THE URBAN DEVELOPMENT CORPO- RATION WITH FINANCIAL INSTITUTIONS PURSUANT TO THIS SECTION MAY CONTAIN SUCH PROVISIONS THAT THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND/OR THE URBAN DEVELOPMENT CORPORATION DEEM NECESSARY OR DESIRABLE FOR THE ESTABLISHMENT OF SUCH CREDIT FACILITIES. THE MAXIMUM TERM OF ANY LINE OF CREDIT FACILITY SHALL BE ONE YEAR FROM THE DATE OF INCURRENCE; PROVIDED HOWEVER THAT NO DRAW ON ANY SUCH LINE OF CREDIT FACILITY SHALL OCCUR AFTER MARCH 31, 2022, AND PROVIDED FURTHER THAT ANY SUCH LINE OF CREDIT FACILITY WHOSE TERM EXTENDS BEYOND MARCH 31, 2022, SHALL BE SUPPORTED BY SUFFICIENT APPROPRIATION AUTHORITY ENACTED BY THE LEGISLA- TURE THAT PROVIDES FOR THE REPAYMENT OF ALL AMOUNTS DRAWN AND REMAINING UNPAID AS OF MARCH 31, 2022, TOGETHER WITH RELATED EXPENSES AND FEES INCURRED AND TO BECOME DUE AND PAYABLE BY THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND/OR THE URBAN DEVELOPMENT CORPORATION. (D) NOTWITHSTANDING ANY OTHER LAW, RULE, OR REGULATION TO THE CONTRA- RY, THE COMPTROLLER IS HEREBY AUTHORIZED AND DIRECTED TO DEPOSIT TO THE CREDIT OF THE GENERAL FUND, ALL AMOUNTS PROVIDED BY THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND/OR THE URBAN DEVELOPMENT CORPO- RATION TO THE STATE FROM DRAWS MADE ON ANY LINE OF CREDIT FACILITY AUTHORIZED BY PARAGRAPH (C) OF THIS SUBDIVISION. (E) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, INCLUDING SPECIFICALLY THE PROVISIONS OF SUBDIVISION 3 OF SECTION 67-B OF THE STATE FINANCE LAW, NO CAPITAL WORK OR PURPOSE SHALL BE REQUIRED FOR ANY INDEBTEDNESS INCURRED IN CONNECTION WITH ANY LINE OF CREDIT FACILITY AUTHORIZED BY PARAGRAPH (C) OF THIS SUBDIVISION, OR FOR ANY SERVICE CONTRACT OR OTHER AGREEMENT ENTERED INTO IN CONNECTION WITH ANY SUCH LINE OF CREDIT FACILITY, ALL IN ACCORDANCE WITH THIS SECTION. (F) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, FOR SO LONG AS ANY SUCH LINE OF CREDIT FACILITY SHALL REMAIN OUTSTANDING, THE RESTRICTIONS, LIMITATIONS AND REQUIREMENTS CONTAINED IN ARTICLE 5-B OF THE STATE FINANCE LAW SHALL NOT APPLY. ANY SUCH LINE OF CREDIT FACILITY S. 2509--C 175 A. 3009--C SHALL BE DEEMED TO BE INCURRED OR ISSUED FOR (I) AN AUTHORIZED PURPOSE WITHIN THE MEANING OF SUBDIVISION 2 OF SECTION 68-A OF THE STATE FINANCE LAW FOR ALL PURPOSES OF ARTICLE 5-C OF THE STATE FINANCE LAW AND SECTION 92-Z OF THE STATE FINANCE LAW, AND/OR (II) AN AUTHORIZED PURPOSE WITHIN THE MEANING OF SUBDIVISION 2 OF SECTION 69-M OF THE STATE FINANCE LAW FOR ALL PURPOSES OF ARTICLE 5-F OF THE STATE FINANCE LAW AND SECTION 92-H OF THE STATE FINANCE LAW, AS THE CASE MAY BE. AS APPLICABLE, ALL OF THE PROVISIONS OF THE STATE FINANCE LAW, THE DORMITORY AUTHORITY ACT AND THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION ACT RELATING TO NOTES AND BONDS WHICH ARE NOT INCONSISTENT WITH THE PROVISIONS OF THIS SECTION SHALL APPLY TO ANY LINE OF CREDIT FACILITY AND OTHER SIMILAR REVOLVING FINANCING ARRANGEMENT ESTABLISHED IN ACCORDANCE WITH THE AUTHORIZATION CONTAINED IN PARAGRAPH (C) OF THIS SUBDIVISION. (G) EACH DRAW ON A LINE OF CREDIT FACILITY AUTHORIZED BY PARAGRAPH (C) OF THIS SUBDIVISION SHALL ONLY BE MADE IF THE SERVICE CONTRACT OR OTHER AGREEMENT ENTERED INTO IN CONNECTION WITH SUCH LINE OF CREDIT FACILITY IS SUPPORTED BY SUFFICIENT APPROPRIATION AUTHORITY ENACTED BY THE LEGIS- LATURE TO REPAY THE AMOUNT OF THE DRAW, TOGETHER WITH RELATED EXPENSES AND FEES TO BECOME DUE AND PAYABLE. AMOUNTS REPAID UNDER A LINE OF CRED- IT FACILITY MAY BE RE-BORROWED UNDER THE SAME OR ANOTHER LINE OF CREDIT FACILITY AUTHORIZED BY PARAGRAPH (C) OF THIS SUBDIVISION PROVIDED THAT THE LEGISLATURE HAS ENACTED SUFFICIENT APPROPRIATION AUTHORITY THAT PROVIDES FOR THE REPAYMENT OF ANY SUCH RE-BORROWED AMOUNTS, TOGETHER WITH RELATED EXPENSES AND FEES TO BECOME DUE AND PAYABLE. NEITHER THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK NOR THE URBAN DEVELOPMENT CORPORATION SHALL HAVE ANY FINANCIAL LIABILITY FOR THE REPAYMENT OF DRAWS UNDER ANY LINE OF CREDIT FACILITY AUTHORIZED BY PARAGRAPH (C) OF THIS SUBDIVISION BEYOND THE MONEYS RECEIVED FOR SUCH PURPOSE UNDER ANY SERVICE CONTRACT OR OTHER AGREEMENT AUTHORIZED BY PARAGRAPH (H) OF THIS SUBDIVISION. (H) THE DIRECTOR OF THE BUDGET IS AUTHORIZED TO ENTER INTO ONE OR MORE SERVICE CONTRACTS OR OTHER AGREEMENTS, NONE OF WHICH SHALL EXCEED ONE YEAR IN DURATION, WITH THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND/OR THE URBAN DEVELOPMENT CORPORATION, UPON SUCH TERMS AND CONDITIONS AS THE DIRECTOR OF THE BUDGET AND DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND/OR THE URBAN DEVELOPMENT CORPORATION SHALL AGREE. ANY SERVICE CONTRACT OR OTHER AGREEMENT ENTERED INTO PURSUANT TO THIS PARA- GRAPH SHALL PROVIDE FOR STATE COMMITMENTS TO PROVIDE ANNUALLY TO THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND/OR THE URBAN DEVELOP- MENT CORPORATION A SUM OR SUMS, UPON SUCH TERMS AND CONDITIONS AS SHALL BE DEEMED APPROPRIATE BY THE DIRECTOR OF THE BUDGET AND THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND/OR THE URBAN DEVELOPMENT CORPO- RATION, TO FUND THE PAYMENT OF ALL AMOUNTS TO BECOME DUE AND PAYABLE UNDER ANY LINE OF CREDIT FACILITY. ANY SUCH SERVICE CONTRACT OR OTHER AGREEMENT SHALL PROVIDE THAT THE OBLIGATION OF THE DIRECTOR OF THE BUDG- ET OR OF THE STATE TO FUND OR TO PAY THE AMOUNTS THEREIN PROVIDED FOR SHALL NOT CONSTITUTE A DEBT OF THE STATE WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION AND SHALL BE DEEMED EXECUTORY ONLY TO THE EXTENT MONEYS ARE AVAILABLE AND THAT NO LIABILITY SHALL BE INCURRED BY THE STATE BEYOND THE MONEYS AVAILABLE FOR SUCH PURPOSE, AND THAT SUCH OBLIGATION IS SUBJECT TO ANNUAL APPROPRIATION BY THE LEGISLA- TURE. (I) ANY SERVICE CONTRACT OR OTHER AGREEMENT ENTERED INTO PURSUANT TO PARAGRAPH (H) OF THIS SUBDIVISION OR ANY PAYMENTS MADE OR TO BE MADE THEREUNDER MAY BE ASSIGNED AND PLEDGED BY THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND/OR THE URBAN DEVELOPMENT CORPORATION AS SECURITY S. 2509--C 176 A. 3009--C FOR ANY RELATED PAYMENT OBLIGATION IT MAY HAVE WITH ONE OR MORE FINAN- CIAL INSTITUTIONS IN CONNECTION WITH A LINE OF CREDIT FACILITY AUTHOR- IZED BY PARAGRAPH (C) OF THIS SUBDIVISION. (J) IN ADDITION TO THE FOREGOING, THE DIRECTOR OF THE BUDGET, THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND THE URBAN DEVELOPMENT CORPORATION SHALL EACH BE AUTHORIZED TO ENTER INTO SUCH OTHER AGREEMENTS AND TO TAKE OR CAUSE TO BE TAKEN SUCH ADDITIONAL ACTIONS AS ARE NECES- SARY OR DESIRABLE TO EFFECTUATE THE PURPOSES OF THE TRANSACTIONS CONTEM- PLATED BY A LINE OF CREDIT FACILITY AND THE RELATED SERVICE CONTRACT OR OTHER AGREEMENT. (K) NO LATER THAN SEVEN DAYS AFTER A DRAW OCCURS ON A LINE OF CREDIT FACILITY, THE DIRECTOR OF THE BUDGET SHALL PROVIDE NOTIFICATION OF SUCH DRAW TO THE PRESIDENT PRO TEMPORE OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY. (L) THE AUTHORIZATION, ESTABLISHMENT AND USE BY THE DORMITORY AUTHORI- TY OF THE STATE OF NEW YORK AND THE URBAN DEVELOPMENT CORPORATION OF A LINE OF CREDIT FACILITY AUTHORIZED BY PARAGRAPH (C) OF THIS SUBDIVISION SHALL NOT BE DEEMED AN ACTION, AS SUCH TERM IS DEFINED IN ARTICLE 8 OF THE ENVIRONMENTAL CONSERVATION LAW, FOR THE PURPOSES OF SUCH ARTICLE. SUCH EXEMPTION SHALL BE STRICTLY LIMITED IN ITS APPLICATION TO SUCH FINANCING ACTIVITIES OF THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND THE URBAN DEVELOPMENT CORPORATION UNDERTAKEN PURSUANT TO THIS SECTION AND DOES NOT EXEMPT ANY OTHER ENTITY FROM COMPLIANCE WITH SUCH ARTICLE. (M) NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE ABILITIES OF THE DIRECTOR OF THE BUDGET AND THE AUTHORIZED ISSUERS OF STATE PERSONAL INCOME TAX REVENUE BONDS, STATE SALES TAX REVENUE BONDS OR SERVICE CONTRACT BONDS TO PERFORM THEIR RESPECTIVE OBLIGATIONS WITH RESPECT TO EXISTING SERVICE CONTRACTS OR OTHER AGREEMENTS. 2. EFFECT OF INCONSISTENT PROVISIONS. INSOFAR AS THE PROVISIONS OF THIS SECTION ARE INCONSISTENT WITH THE PROVISIONS OF ANY OTHER LAW, GENERAL, SPECIAL, OR LOCAL, THE PROVISIONS OF THIS ACT SHALL BE CONTROL- LING. 3. SEVERABILITY; CONSTRUCTION. THE PROVISIONS OF THIS SECTION SHALL BE SEVERABLE, AND IF THE APPLICATION OF ANY CLAUSE, SENTENCE, PARAGRAPH, SUBDIVISION, SECTION OR PART OF THIS SECTION TO ANY PERSON OR CIRCUM- STANCE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURISDICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT NECESSARILY AFFECT, IMPAIR OR INVALI- DATE THE APPLICATION OF ANY SUCH CLAUSE, SENTENCE, PARAGRAPH, SUBDIVI- SION, SECTION, PART OF THIS SECTION OR REMAINDER THEREOF, AS THE CASE MAY BE, TO ANY OTHER PERSON OR CIRCUMSTANCE, BUT SHALL BE CONFINED IN ITS OPERATION TO THE CLAUSE, SENTENCE, PARAGRAPH, SUBDIVISION, SECTION OR PART THEREOF DIRECTLY INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDG- MENT SHALL HAVE BEEN RENDERED. § 50. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 56-a to read as follows: § 56-A. STATE-SUPPORTED DEBT; 2022. 1. IN LIGHT OF THE CONTINUING ADVERSE IMPACT THAT THE COVID-19 PANDEMIC IS EXPECTED TO HAVE ON THE HEALTH AND WELFARE OF INDIVIDUALS IN THE STATE AS WELL AS TO THE FINAN- CIAL CONDITION OF THE STATE DURING THE STATE'S 2022 FISCAL YEAR, AND NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE DORMITO- RY AUTHORITY OF THE STATE OF NEW YORK, THE URBAN DEVELOPMENT CORPO- RATION, AND THE NEW YORK STATE THRUWAY AUTHORITY ARE EACH AUTHORIZED TO ISSUE STATE-SUPPORTED DEBT PURSUANT TO ARTICLE 5-B, ARTICLE 5-C AND ARTICLE 5-F OF THE STATE FINANCE LAW TO ASSIST THE STATE TO MANAGE ITS S. 2509--C 177 A. 3009--C FINANCING NEEDS DURING ITS 2022 FISCAL YEAR, WITHOUT REGARD TO ANY RESTRICTIONS, LIMITATIONS AND REQUIREMENTS CONTAINED IN ARTICLE 5-B OF THE STATE FINANCE LAW, OTHER THAN SUBDIVISION 4 OF SECTION 67-B OF SUCH ARTICLE, AND SUCH STATE-SUPPORTED DEBT SHALL BE DEEMED TO BE ISSUED FOR (I) AN AUTHORIZED PURPOSE WITHIN THE MEANING OF SUBDIVISION 2 OF SECTION 68-A OF THE STATE FINANCE LAW FOR ALL PURPOSES OF ARTICLE 5-C OF THE STATE FINANCE LAW AND SECTION 92-Z OF THE STATE FINANCE LAW, OR (II) AN AUTHORIZED PURPOSE WITHIN THE MEANING OF SUBDIVISION 2 OF SECTION 69-M OF THE STATE FINANCE LAW FOR ALL PURPOSES OF ARTICLE 5-F OF THE STATE FINANCE LAW AND SECTION 92-H OF THE STATE FINANCE LAW, AS THE CASE MAY BE. FURTHERMORE, ANY BONDS ISSUED DIRECTLY BY THE STATE DURING THE STATE'S 2022 FISCAL YEAR SHALL BE ISSUED WITHOUT REGARD TO ANY RESTRICTIONS, LIMITATIONS AND REQUIREMENTS CONTAINED IN ARTICLE 5-B OF THE STATE FINANCE LAW, OTHER THAN SUBDIVISION 4 OF SECTION 67-B OF SUCH ARTICLE. FOR SO LONG AS ANY STATE-SUPPORTED DEBT ISSUED DURING THE STATE'S 2022 FISCAL YEAR SHALL REMAIN OUTSTANDING, INCLUDING ANY STATE- SUPPORTED DEBT ISSUED TO REFUND STATE-SUPPORTED DEBT ISSUED DURING SUCH FISCAL YEAR, THE RESTRICTIONS, LIMITATIONS AND REQUIREMENTS CONTAINED IN ARTICLE 5-B OF THE STATE FINANCE LAW, OTHER THAN SUBDIVISION 4 OF SECTION 67-B OF SUCH ARTICLE, SHALL NOT APPLY. 2. EFFECT OF INCONSISTENT PROVISIONS. INSOFAR AS THE PROVISIONS OF THIS SECTION ARE INCONSISTENT WITH THE PROVISIONS OF ANY OTHER LAW, GENERAL, SPECIAL, OR LOCAL, THE PROVISIONS OF THIS ACT SHALL BE CONTROL- LING. 3. SEVERABILITY; CONSTRUCTION. THE PROVISIONS OF THIS SECTION SHALL BE SEVERABLE, AND IF THE APPLICATION OF ANY CLAUSE, SENTENCE, PARAGRAPH, SUBDIVISION, SECTION OR PART OF THIS SECTION TO ANY PERSON OR CIRCUM- STANCE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURISDICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT NECESSARILY AFFECT, IMPAIR OR INVALI- DATE THE APPLICATION OF ANY SUCH CLAUSE, SENTENCE, PARAGRAPH, SUBDIVI- SION, SECTION, PART OF THIS SECTION OR REMAINDER THEREOF, AS THE CASE MAY BE, TO ANY OTHER PERSON OR CIRCUMSTANCE, BUT SHALL BE CONFINED IN ITS OPERATION TO THE CLAUSE, SENTENCE, PARAGRAPH, SUBDIVISION, SECTION OR PART THEREOF DIRECTLY INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDG- MENT SHALL HAVE BEEN RENDERED. § 51. Section 3238-a of the public authorities law, as amended by section 1 of part V of chapter 63 of the laws of 2003, is amended to read as follows: § 3238-a. Payment to city of New York. 1. Notwithstanding any incon- sistent provision of law, the corporation shall transfer to the city of New York one hundred seventy million dollars from the resources of the corporation pursuant to section thirty-two hundred thirty-nine of this title. Such payment shall be made during each city fiscal year; PROVIDED, HOWEVER, THAT ON AND AFTER JULY FIRST, TWO THOUSAND TWENTY, THE OBLIGATION OF THE CORPORATION TO MAKE SUCH PAYMENTS SHALL BE TERMI- NATED IF ALL OUTSTANDING BONDS OF THE SALES TAX ASSET RECEIVABLE CORPO- RATION THAT ARE SECURED BY THE CORPORATION'S PAYMENTS DESCRIBED IN THIS SUBDIVISION HAVE BEEN FULLY PAID AND DISCHARGED BY MEANS OF A LEGAL DEFEASANCE IN ACCORDANCE WITH THE TRUST INDENTURE UNDER WHICH THEY WERE ISSUED BEFORE JULY FIRST, TWO THOUSAND TWENTY-ONE, AND IN ADDITION THE CORPORATION HAS PAID TO THE CITY OF NEW YORK OR TO ITS ASSIGNEE IF SUCH PAYMENTS HAVE BEEN ASSIGNED PURSUANT TO THIS SUBDIVISION, THE SUM OF FORTY-SIX MILLION DOLLARS ON OR BEFORE JUNE THIRTIETH, TWO THOUSAND TWENTY-ONE. Such payments from the corporation shall be made from the fund established by section ninety-two-r of the state finance law and in accordance with the provisions thereof. S. 2509--C 178 A. 3009--C 2. The city of New York, acting by the mayor alone, may assign all or any portion of such amount to any not-for-profit corporation incorpo- rated pursuant to section fourteen hundred eleven of the not-for-profit corporation law and, upon such assignment, the amount so assigned shall be the property of such not-for-profit corporation for all purposes. Following notice from the city of New York to the corporation and the comptroller of such assignment, such payment shall be made directly to the city's assignee. If such not-for-profit corporation issues bonds and/or notes, the state does hereby pledge and agree with the holders of any issue of bonds and/or notes secured by such a pledge that the state will not limit or alter the rights vested in such not-for-profit corpo- ration to fulfill the terms of any agreements made with such holders or in any way impair the rights and remedies of such holders or the securi- ty for such bonds and/or notes until such bonds and/or notes, together with the interest thereon and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully paid and discharged. The foregoing pledge and agreement may be included in any agreement with the holders of such bonds or notes. Nothing contained in this section shall be deemed to restrict the right of the state to amend, modify, repeal or otherwise alter statutes imposing or relating to the taxes subject to such assignment, but such taxes shall in all events continue to be so payable, as assigned, so long as any such taxes are imposed. 3. PROCEEDS OF STATE SUPPORTED DEBT, AS DEFINED IN SUBDIVISION ONE OF SECTION SIXTY-SEVEN-A OF THE STATE FINANCE LAW, OR OTHER AVAILABLE MONIES, MAY BE PROVIDED TO THE TRUSTEE FOR THE BONDS OF THE SALES TAX ASSET RECEIVABLE CORPORATION SECURED BY THE CORPORATION'S PAYMENTS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION IN AN AMOUNT SUFFICIENT TO FULLY PAY AND DISCHARGE SUCH BONDS BY MEANS OF A LEGAL DEFEASANCE OF ALL SUCH OUTSTANDING BONDS IN ACCORDANCE WITH THE TRUST INDENTURE UNDER WHICH THEY WERE ISSUED. SO LONG AS SUCH BONDS ARE LEGALLY DEFEASED AND THE CORPORATION HAS PAID TO THE CITY OF NEW YORK OR TO ITS ASSIGNEE IF SUCH PAYMENTS HAVE BEEN ASSIGNED PURSUANT TO THIS SUBDIVISION, THE SUM OF FORTY-SIX MILLION DOLLARS ON OR BEFORE JUNE THIRTIETH, TWO THOUSAND TWENTY-ONE THE CORPORATION'S OBLIGATION CONTAINED IN SUBDIVISION ONE OF THIS SECTION TO TRANSFER FUNDS TO THE CITY OF NEW YORK SHALL BE DEEMED SATISFIED AND FULLY DISCHARGED. UPON ANY SUCH LEGAL DEFEASANCE OF SUCH BONDS, THE SALES TAX ASSET RECEIVABLE CORPORATION SHALL NO LONGER BE DEEMED A LOCAL AUTHORITY WITHIN THE MEANING OF SUBDIVISION TWO OF SECTION TWO OF THIS CHAPTER AND THE PROVISIONS OF THIS CHAPTER, INCLUD- ING, WITHOUT LIMITATION, THE PROVISIONS OF ARTICLE NINE OF THIS CHAPTER, SHALL NO LONGER BE APPLICABLE TO THE SALES TAX ASSET RECEIVABLE CORPO- RATION. 4. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW, THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND THE NEW YORK STATE URBAN DEVELOP- MENT CORPORATION ARE HEREBY AUTHORIZED TO ISSUE BONDS IN ONE OR MORE SERIES PURSUANT TO ARTICLE FIVE-C OR ARTICLE FIVE-F OF THE STATE FINANCE LAW IN AN AGGREGATE PRINCIPAL AMOUNT SUFFICIENT TO DIRECTLY OR INDIRECT- LY (I) FINANCE THE LEGAL DEFEASANCE OR PAYMENT OF ALL OF THE OUTSTANDING BONDS OF THE SALES TAX ASSET RECEIVABLE CORPORATION SECURED BY THE CORPORATION'S PAYMENTS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, (II) ONE OR MORE RELATED DEBT SERVICE RESERVE FUNDS, AND (III) COSTS OF ISSUANCE ATTRIBUTABLE TO SUCH BONDS, AND THE ISSUANCE OF SUCH BONDS IS HEREBY DETERMINED TO BE FOR AN "AUTHORIZED PURPOSE", AS DEFINED IN SUBDIVISION TWO OF SECTION SIXTY-EIGHT-A AND SUBDIVISION TWO OF SECTION SIXTY-NINE-M OF THE STATE FINANCE LAW, AS THE CASE MAY BE. S. 2509--C 179 A. 3009--C § 52. Paragraph a of subdivision 5 of section 89-b of the state finance law, as amended by section 11 of part C of chapter 57 of the laws of 2014, is amended to read as follows: a. Moneys in the dedicated highway and bridge trust fund shall, following appropriation by the legislature, be utilized for: recon- struction, replacement, reconditioning, restoration, rehabilitation and preservation of state, county, town, city and village roads, highways, parkways, and bridges thereon, to restore such facilities to their intended functions; construction, reconstruction, enhancement and improvement of state, county, town, city, and village roads, highways, parkways, and bridges thereon, to address current and projected capacity problems including costs for traffic mitigation activities; aviation projects authorized pursuant to section fourteen-j of the transportation law and for payments to the general debt service fund of amounts equal to amounts required for service contract payments related to aviation projects as provided and authorized by section three hundred eighty-six of the public authorities law; programs to assist small and minority and women-owned firms engaged in transportation construction and recon- struction projects, including a revolving fund for working capital loans, and a bonding guarantee assistance program in accordance with provisions of this chapter; matching federal grants or apportionments to the state for highway, parkway and bridge capital projects; the acquisi- tion of real property and interests therein required or expected to be required in connection with such projects; preventive maintenance activ- ities necessary to ensure that highways, parkways and bridges meet or exceed their optimum useful life; expenses of control of snow and ice on state highways by the department of transportation including but not limited to personal services, nonpersonal services and fringe benefits, payment of emergency aid for control of snow and ice in municipalities pursuant to section fifty-five of the highway law, expenses of control of snow and ice on state highways by municipalities pursuant to section twelve of the highway law, and for expenses of arterial maintenance agreements with cities pursuant to section three hundred forty-nine of the highway law; personal services, nonpersonal services, and fringe benefit costs of the department of transportation for bus safety inspection activities, rail safety inspection activities, and truck safety inspection activities; costs of the department of motor vehicles, including but not limited to personal and nonpersonal services; costs of engineering and administrative services of the department of transporta- tion, including but not limited to fringe benefits; the contract services provided by private firms in accordance with section fourteen of the transportation law; personal services and nonpersonal services, for activities including but not limited to the preparation of designs, plans, specifications and estimates; construction management and super- vision activities; costs of appraisals, surveys, testing and environ- mental impact statements for transportation projects; expenses in connection with buildings, equipment, materials and facilities used or useful in connection with the maintenance, operation, and repair of highways, parkways and bridges thereon; and project costs for: construction, reconstruction, improvement, reconditioning and preserva- tion of rail freight facilities and intercity rail passenger facilities and equipment; construction, reconstruction, improvement, reconditioning and preservation of state, municipal and privately owned ports; construction, reconstruction, improvement, reconditioning and preserva- tion of municipal airports; privately owned airports and aviation capi- tal facilities, excluding airports operated by the state or operated by S. 2509--C 180 A. 3009--C a bi-state municipal corporate instrumentality for which federal funding is not available provided the project is consistent with an approved airport layout plan; and construction, reconstruction, enhancement, improvement, replacement, reconditioning, restoration, rehabilitation and preservation of state, county, town, city and village roads, high- ways, parkways and bridges; and construction, reconstruction, improve- ment, reconditioning and preservation of fixed ferry facilities of municipal and privately owned ferry lines for transportation purposes, and the payment of debt service required on any bonds, notes or other obligations and related expenses for highway, parkway, bridge and project costs for: construction, reconstruction, improvement, recondi- tioning and preservation of rail freight facilities and intercity rail passenger facilities and equipment; construction, reconstruction, improvement, reconditioning and preservation of state, municipal and privately owned ports; construction, reconstruction, improvement, recon- ditioning and preservation of municipal airports; privately owned airports and aviation capital facilities, excluding airports operated by the state or operated by a bi-state municipal corporate instrumentality for which federal funding is not available provided the project is consistent with an approved airport layout plan; construction, recon- struction, enhancement, improvement, replacement, reconditioning, resto- ration, rehabilitation and preservation of state, county, town, city and village roads, highways, parkways and bridges; and construction, recon- struction, improvement, reconditioning and preservation of fixed ferry facilities of municipal and privately owned ferry lines for transporta- tion purposes, purposes authorized on or after the effective date of this section. Beginning with disbursements made on and after the first day of April, nineteen hundred ninety-three, moneys in such fund shall be available to pay such costs or expenses made pursuant to appropri- ations or reappropriations made during the state fiscal year which began on the first of April, nineteen hundred ninety-two. Beginning the first day of April, nineteen hundred ninety-three, moneys in such fund shall also be used for transfers to the general debt service fund and the [revenue bond tax] GENERAL fund of amounts equal to that respectively required for service contract and financing agreement payments as provided and authorized by section three hundred eighty of the public authorities law, section eleven of chapter three hundred twenty-nine of the laws of nineteen hundred ninety-one, as amended, and sections sixty-eight-c and sixty-nine-o of this chapter. § 53. Paragraph c of subdivision 5 of section 89-b of the state finance law is REPEALED. § 54. Subdivision 5 of section 97-f of the state finance law, as amended by section 49 of part TTT of chapter 59 of the laws of 2019, is amended to read as follows: 5. The comptroller shall from time to time, but in no event later than the fifteenth day of each month, pay over for deposit in the mental hygiene general fund state operations account, INCLUDING MONEYS PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION, all moneys in the mental health services fund in excess of the amount of money required to be maintained on deposit in the mental health services fund. Subject to subdivision nine of this section, the amount required to be maintained in such fund shall be (i) twenty percent of the amount of the next payment coming due relating to the mental health services facilities improvement program under any agreement between the facilities development corporation and the New York state medical care facilities finance agency multiplied by the number of months from the date of the last such payment with respect S. 2509--C 181 A. 3009--C to payments under any such agreement required to be made semi-annually, plus (ii) those amounts specified in any such agreement with respect to payments required to be made other than semi-annually, including for variable rate bonds, interest rate exchange or similar agreements or other financing arrangements permitted by law. Concurrently with the making of any such payment, the facilities development corporation shall deliver to the comptroller, the director of the budget and the New York state medical care facilities finance agency a certificate stating the aggregate amount to be maintained on deposit in the mental health services fund to comply in full with the provisions of this subdivision. § 55. Subdivision 8 of section 97-f of the state finance law, as amended by section 49 of part TTT of chapter 59 of the laws of 2019, is amended to read as follows: 8. [In addition to the amounts required to be maintained on deposit in the mental health services fund pursuant to subdivision five of this section and subject to subdivision nine of this section, the fund shall maintain on deposit an amount equal to the debt service and other cash requirements on mental health services facilities bonds issued by authorized issuers pursuant to sections sixty-eight-b and sixty-nine-n of this chapter. The amount required to be maintained in such fund shall be (i) twenty percent of the amount of the next payment coming due relating to mental health services facilities bonds issued by an author- ized issuer multiplied by the number of months from the date of the last such payment with respect to payments required to be made semi-annually, plus (ii) those amounts specified in any financing agreement between the issuer and the state, acting through the director of the budget, with respect to payments required to be made other than semi-annually, including for variable rate bonds, interest rate exchange or similar agreements or other financing arrangements permitted by law. Concur- rently with the making of any such payment, the facilities development corporation shall deliver to the comptroller, the director of the budget and the New York state medical care facilities finance agency a certif- icate stating the aggregate amount to be maintained on deposit in the mental health services fund to comply in full with the provisions of this subdivision. No later than five days prior to the payment to be made by the state comptroller on such mental health services facilities bonds pursuant to sections ninety-two-z and ninety-two-h of this article, the] THE amount of [such] payment ON SUCH MENTAL HEALTH SERVICES FACILITIES BONDS PURSU- ANT TO SECTIONS NINETY-TWO-Z AND NINETY-TWO-H OF THIS ARTICLE, shall be transferred by the state comptroller from the mental health services fund to the [revenue bond tax fund established by section ninety-two-z of this article and the sales tax revenue bond fund established by section ninety-two-h of this article] MENTAL HYGIENE GENERAL FUND STATE OPERATION ACCOUNT. The accumulation of moneys pursuant to this subdivi- sion and subsequent transfer to the [revenue bond tax fund and the sales tax revenue bond fund] MENTAL HYGIENE GENERAL FUND STATE OPERATION ACCOUNT shall be subordinate in all respects to payments to be made to the New York state medical care facilities finance agency and to any pledge or assignment pursuant to subdivision six of this section. § 56. Subdivision 9 of section 97-f of the state finance law, as added by section 49 of part TTT of chapter 59 of the laws of 2019, is amended to read as follows: 9. In determining the amounts required to be maintained in the mental health services fund under [subdivisions] SUBDIVISION five [and eight] of this section in each month, the amount of receipts associated with S. 2509--C 182 A. 3009--C loans, leases and other agreements with voluntary agencies accumulated and set aside in the mental hygiene facilities improvement fund income account under paragraph g of subdivision three of section nine of the facilities development corporation act shall be taken into account as a credit but only if such crediting does not result in the amounts required to be maintained in the mental health services fund exclusive of any credit to be less than the amount required under subdivision five of this section in each month. § 57. Subdivision (j) of section 92-dd of the state finance law is REPEALED. § 58. Subdivision 3-a of section 2872 of the public health law is REPEALED and a new subdivision 3-a is added to read as follows: 3-A. "SECURED HOSPITAL PROJECT BONDS" SHALL MEAN OUTSTANDING BONDS ISSUED ON BEHALF OF A NOT-FOR-PROFIT HOSPITAL CORPORATION ORGANIZED UNDER THE LAWS OF THIS STATE, WHICH HOSPITAL HAS PREVIOUSLY BEEN DESIG- NATED BY THE COMMISSIONER AND THE PUBLIC HEALTH COUNCIL TO BE ELIGIBLE TO RECEIVE DISTRIBUTIONS FROM THE REIMBURSEMENT POOLS ESTABLISHED PURSU- ANT TO PARAGRAPH (C) OF SUBDIVISION NINE OF SECTION TWENTY-EIGHT HUNDRED SEVEN-A OF THIS CHAPTER, OR ANY SUCCESSOR POOL OR POOLS ESTABLISHED TO SERVE A SUBSTANTIALLY SIMILAR PURPOSE TO SUCH POOLS. § 59. Section 2874 of the public health law is amended by adding a new subdivision 5 to read as follows: 5. THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK AND THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION ARE EACH HEREBY AUTHORIZED TO ISSUE BONDS IN ONE OR MORE SERIES PURSUANT TO ARTICLE 5-C OR ARTICLE 5-F OF THE STATE FINANCE LAW FOR THE PURPOSE OF REFUNDING OUTSTANDING SECURED HOSPITAL PROJECT BONDS, AS DEFINED IN SUBDIVISION THREE-A OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-TWO OF THIS ARTICLE, AND TO FINANCE ONE OR MORE RELATED DEBT SERVICE RESERVE FUNDS AND TO PAY COSTS OF ISSUANCE ATTRIBUTABLE TO SUCH REFUNDING BONDS. § 60. Subdivision 8 of section 68-b of the state finance law, as amended by section 24 of part I of chapter 60 of the laws of 2015, is amended to read as follows: 8. Revenue bonds may only be issued for authorized purposes, as defined in section sixty-eight-a of this article. Notwithstanding the foregoing, the dormitory authority of the state of New York, the urban development corporation and the New York state thruway authority may issue revenue bonds for any authorized purpose of any other such author- ized issuer through March thirty-first, two thousand [twenty] TWENTY- FIVE. Any such revenue bonds issued by the New York state thruway authority shall be subject to the approval of the New York state public authorities control board, pursuant to section fifty-one of the public authorities law. The authorized issuers shall not issue any revenue bonds in an amount in excess of statutory authorizations for such authorized purposes. Authorizations for such authorized purposes shall be reduced in an amount equal to the amount of revenue bonds issued for such authorized purposes under this article. Such reduction shall not be made in relation to revenue bonds issued to fund reserve funds, if any, and costs of issuance, if these items are not counted under existing authorizations, nor shall revenue bonds issued to refund bonds issued under existing authorizations reduce the amount of such authorizations. § 61. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2021; provided, however, that the provisions of sections one, one-a, two, three, four, five, six, seven, eight, twelve, thirteen, fourteen, fifteen, sixteen, seventeen, eighteen, nineteen, twenty-one, and twenty-two-a of this act S. 2509--C 183 A. 3009--C shall expire March 31, 2022 when upon such date the provisions of such sections shall be deemed repealed; provided further that sections forty-four and sixty of this act shall be deemed to have been in full force and effect on and after April 1, 2020; and provided further that the amendments to section 3238-a of the public authorities law made by section fifty-one of this act shall be subject to the repeal of such section and shall expire and be deemed repealed therewith. PART KKK Section 1. This act enacts into law components of legislation that would enable the city of New York and the board of education of the city of New York to offer a temporary retirement incentive to their employ- ees, as well as to provide an age 55/25 years temporary incentive for certain public employees. Each component is wholly contained within a Subpart identified as Subparts A and B. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Subpart in which it is found, unless noted otherwise. Section three of this act contains a severability clause for all provisions contained in each Subpart of this Part. Section four of this act sets forth the general effective date of this Part. § 2. Legislative findings. The legislature finds and declares that the retirement benefits provided for in this act are designed to achieve cost-savings for public employers and to avoid layoffs of public employ- ees in this time of fiscal need. Therefore, the retirement incentive benefit provided for in Subpart A of this act and the age 55/25 years retirement benefit provided for in Subpart B of this act are intended only to be temporary in nature for employees who are eligible to receive and qualify for the applicable benefit during the applicable time peri- ods specified within each Subpart. Further, nothing in this act shall be construed to create an expectation of a future or continuing retirement benefit for any public employee who is not eligible to receive and qual- ify for the retirement benefits in this act during the applicable time periods. SUBPART A Section 1. Definitions. As used in this act, unless the context clear- ly requires otherwise: a. "Retirement system" means the New York city teachers' retirement system, the New York city board of education retirement system or the New York city employees' retirement system, exclusive of the retirement plans established pursuant to sections 13-156 and 13-157 of the adminis- trative code of the city of New York. b. "Teachers' retirement system" means the New York city teachers' retirement system. c. (a) "Participating employer" means the city of New York or the board of education of the city of New York. (b) "Educational employer" means a participating employer which is the board of education of the city of New York. d. "Eligible employee" means a person who is a member of a retirement system who is an employee of the city of New York or the board of educa- S. 2509--C 184 A. 3009--C tion of the city of New York, but such term shall not include the following persons: (a) elected officials, judges or justices appointed to or serving in a court of record; (b) chief administrative officers of employers which participate in a teachers' retirement system; and (c) appointed members of boards or commissions any of whose members are appointed by the governor or by another public officer or body; e. "Eligible title" means any title where a certain number of posi- tions in that title, as identified by agency, department, work location or appointing authority, as the case may be, would otherwise be identi- fied for layoff but for this act because of economy, consolidation or abolition of functions, curtailment of activities or otherwise. However, an eligible title can also include a title as identified by an agency, department, work location or appointing authority in which positions would not be eliminated but into which employees in titles affected by layoff can be transferred or reassigned pursuant to the civil service law, rule or regulation. The determination of eligible titles shall be made by the chief executive officer of the city of New York or other comparable official of a participating employer. f. "Active service" means service while being paid on the payroll, provided that (a) a leave of absence with pay shall be deemed active service; (b) other approved leave without pay not to exceed twelve weeks prior to the commencement of the designated open period; and (c) the period of time subsequent to a June school term and on or before August 31 of the year for which an open period is designated for a teacher (or other employee employed on a school-year basis) who is otherwise in active service on the effective date of this act shall be deemed active service. g. "Open period" means the period beginning with the commencement date as defined in subdivision h of this section and shall not be more than ninety days nor less than thirty days in length, as specified by the participating employer; provided however that any such period shall not extend beyond October 31, 2021 for participating employers, and not beyond August 31, 2021 for educational employers. For the purposes of retirement pursuant to this act, a service retirement application must be filed with the appropriate retirement system not less than fourteen days prior to the effective date of retirement to become effective, unless a shorter period of time is permitted under law. h. "Commencement date" means the first day the retirement incentive authorized by this act shall be made available, which shall mean a date or dates on or after the effective date of this act to be determined by a participating employer. The chief executive officer or other compara- ble official of a participating employer shall notify the heads of the appropriate retirement systems of the dates of each open period prior to the commencement dates of such periods. § 2. The determination of whether a title shall be considered eligible shall consider whether the reduction of a specific number of positions within a title would unacceptably: a. Directly result in a reduction of the level of service required or mandated to protect and care for clients of a participating employer or to assure public health and safety; b. Endanger the health or safety of employees of a participating employer; or c. Clearly result in a loss of significant revenue to a participating employer or result in substantially increased overtime or contractual S. 2509--C 185 A. 3009--C costs. However, any title may be determined eligible if the vacancies created can be controlled by the use of transfer or reassignment provisions of the civil service law, rules or regulations or other deployment of employees. § 3. a. Eligibility for inclusion in the retirement incentive provided by section six of this act shall be determined by seniority for employ- ees of a participating employer; seniority shall mean the date of original permanent appointment in the civil service of the city adjusted to include veteran's credits for those entitled to receive such credits pursuant to sections 80, 80-a and 85, if applicable, of the civil service law, as established in the official records of the New York city department of citywide administrative services, regardless of the juris- dictional classification of the position or the status of the incumbent. b. All eligible employees serving in eligible titles desiring to avail themselves of the retirement incentive provided by section six of this act shall provide written notice to his or her employer on or before the twenty-first day preceding the end of the open period. Failure to provide such written notice shall render the employee ineligible for the retirement incentive provided by this act. § 4. a. On or before June 30, 2021, a participating employer may elect to provide its employees the retirement incentive authorized by this act by (a) the enactment of a local law, or (b) in the case of a participat- ing employer which is not so empowered to act by local law, by the resolution of its governing body; provided however, no local law or resolution enacted pursuant to this section shall in any manner super- sede any local charter, provided further that, for an educational employer such election must be made by May 31, 2021. The local law or resolution shall specify the commencement date of the program and the length of the open period or periods. A copy of such law or resolution shall be filed with the appropriate retirement system or systems, and, if applicable, on forms provided by such system. The local law or resol- ution shall be accompanied by the affidavit of the chief executive offi- cer or other comparable official certifying to the information contained in subdivision c of this section. b. The commencement date of an open period for eligible employees of a retirement system of the city of New York who elect retirement benefits pursuant to this section may be up to one hundred eighty days after the end of the open period for other eligible employees, if requested by such system. c. Notwithstanding any other provision of law, the benefits provided by this act shall not be made available to any person who (a) has received any retirement incentive authorized by any provision of state law, or (b) who receives, has received or is eligible to receive a payment in a lump sum or in another form from a retirement incentive pursuant to the provisions of a collective bargaining agreement or by other arrangement with his or her employer, unless such person files a written statement with his or her employer, a copy of which shall be forwarded to the appropriate retirement system, that he or she agrees to waive any right to such payment. If a participating employer has offered a retirement incentive pursuant to the provisions of a collective bargaining agreement or by other arrangement, such employer shall prepare, and file with each retirement system, a list containing the names and social security numbers of all persons described in this subdivision. The employer is authorized, however, to exempt persons in its employ from the provisions of paragraph (b) of this subdivision. S. 2509--C 186 A. 3009--C Such exemption shall be made part of the election made pursuant to this section. § 5. Notwithstanding any other provision of law, any eligible employee serving in an eligible title who: a. has been continuously in the active service of a participating employer prior to the commencement date of the applicable open period; b. files an application for service retirement that is effective during the open period; and c. is otherwise eligible for a service retirement as of the effective date of the application for retirement shall be entitled to the retire- ment incentive provided in section six of this act. If not otherwise eligible for a service retirement, the following person shall be deemed to satisfy the eligibility condition of this section: a person who is at least age fifty with ten or more years service as of the effective date of retirement (other than a member of a retirement plan which provides for half-pay pension upon completion of twenty-five years or less service without regard to age); or a member of a retirement plan which provides for half-pay pension upon completion of twenty-five years of service without regard to age who has not accrued, excluding additional credit granted pursuant to this act, the minimum number of years of service required to retire with an allowance equal to fifty percent of final average salary under such plan, but has, with the inclusion of the additional credit provided under this act, accrued such number of years of credit. § 6. Notwithstanding any other provision of law, an eligible employee serving in an eligible title who is a member of a retirement system and who is entitled to a retirement incentive pursuant to section five of this act shall receive a retirement incentive of one-twelfth of a year of additional retirement credit for each year of pension service credit- ed as of the date of retirement, up to a maximum of three years of retirement service credit at the time of retirement, provided, however, that service credit provided under the provisions of sections 902 and 911 of the retirement and social security law shall not be included when calculating the additional retirement credit awarded pursuant to this act. For the New York city teachers' retirement system, the New York city employees' retirement system and the New York city board of educa- tion retirement system such incentive shall be available for all purposes, including fulfilling the qualifying service requirements of plan A and C, if applicable. An eligible employee who is covered by the provisions of article 15 of the retirement and social security law shall retire under the provisions of article 15 of the retirement and social security law. The amount of such benefit for an eligible employee who is covered by article 15 of the retirement and social security law and retires under the provisions of this section (other than a member with thirty or more years of service in the New York city employees' retirement system, the New York city teachers' retirement system, or the New York city board of educa- tion retirement system) shall be reduced by six percent for each of the first two years by which retirement precedes age sixty-two, plus a further reduction of three percent for each year by which retirement precedes age sixty. Such reduction shall be prorated for partial years. The amount of such benefit for an eligible employee with thirty or more years of service who is a member of the New York city employees' retire- ment system, the New York city teachers' retirement system, or the New York city board of education retirement system, or an eligible employee who is a participant in the optional twenty-five year early retirement S. 2509--C 187 A. 3009--C program for certain New York city members governed by section 604-c of the retirement and social security law, as added by chapter 96 of the laws of 1995 or a twenty-five year participant in the age fifty-five retirement program governed by section 604-i of the retirement and social security law, with twenty-five or more years of service and who is covered by article 15 of the retirement and social security law shall be reduced by five percent for each year by which retirement pursuant to this section precedes age fifty-five. The amount of such benefit for an eligible New York city employee with five or more years of service and who is a participant in the age fifty-seven retirement program governed by section 604-d of the retirement and social security law shall be reduced by one-thirtieth for the first two years by which retirement precedes age fifty-seven plus a further reduction of one-twentieth for each year by which retirement precedes age fifty-five. Such reduction shall be prorated for partial years. There shall be no reduction for an eligible New York city employee in a physically taxing position with twenty-five or more years of service and who is a participant (i) in the optional twenty-five year early retirement program for certain members governed by section 604-c of the retirement and social security law, as added by chapter 96 of the laws of 1995, or (ii) in the age fifty-seven retirement program governed by section 604-d of the retirement and social security law. An eligible employee serving in an eligible title who is covered by article 11 of the retirement and social security law shall retire under the provisions of such article. There shall be no reduction in retire- ment benefit provided that such employee retires with thirty or more years of service at age fifty-five or older. The amount of such benefit for an eligible employee covered by article 11 of the retirement and social security law other than a member of a teachers' retirement system with thirty or more years of service, a participant in the optional age fifty-five improved benefit retirement program for certain New York city employees governed by section 445-d of the retirement and social securi- ty law, as added by chapter 96 of the laws of 1995, with twenty-five or more years of service, or a participant in the optional age fifty-five retirement program for New York city teachers and certain other members governed by section 445-i of the retirement and social security law, with twenty-five or more years of service, shall be reduced by six percent for each of the first two years by which retirement pursuant to this section precedes age sixty-two, plus a further reduction of three percent for each year by which retirement pursuant to this section precedes age sixty, provided, however, the foregoing reduction shall not apply in any case where an eligible employee can retire pursuant to a plan which permits retirement for service with immediate payability, exclusive of this act, prior to the age of fifty-five. Such reduction shall be prorated for partial years. The amount of such benefit for an eligible employee who is a member of a teachers' retirement system with thirty or more years of service, a participant in the optional age fifty-five improved benefit retirement program for certain New York city employees governed by section 445-d of the retirement and social securi- ty law, as added by chapter 96 of the laws of 1995, with twenty-five or more years of service, or a participant in the optional age fifty-five retirement program for New York city teachers and certain other members governed by section 445-i of the retirement and social security law, with twenty-five or more years of service and who is covered by article 11 of the retirement and social security law shall be reduced by five percent for each year by which retirement pursuant to this section S. 2509--C 188 A. 3009--C precedes age fifty-five. Such reduction shall be prorated for partial years. There shall be no reduction for an eligible New York city employ- ee in a physically taxing position and who is a participant in the optional age fifty-five improved benefit retirement program for certain New York city employees governed by section 445-d of the retirement and social security law, as added by chapter 96 of the laws of 1995, with twenty-five or more years of service. An eligible employee serving in an eligible title who is not covered by article 11 or 15 of the retirement and social security law shall retire under the provisions of the plan by which he or she is covered. The amount of such benefit shall be reduced by five percent for each year by which retirement pursuant to this section precedes age fifty- five, provided, however, the foregoing reduction shall not apply in any case where an eligible employee can retire pursuant to a plan which permits retirement for service with immediate payability, exclusive of this act, prior to the age of fifty-five. Such reduction shall be prorated for partial years. An eligible employee serving in an eligible title who participates in a retirement plan which provides for a retirement allowance equal to fifty percent of final average salary upon the completion of twenty-five years of service without regard to age and who is otherwise eligible to retire shall retire under the provisions of such plan. Such employee shall, at the time of retirement, be credited with one-twelfth of a year of additional retirement service credit for each year of service credit- ed under such plan as of the date of retirement, up to a maximum of three years of retirement service credit. If such employee has not accrued, excluding additional credit granted pursuant to this act, the minimum number of years of service required to retire with an allowance equal to fifty percent of final average salary under such plan, but has, with the inclusion of the additional credit provided under this act, accrued such number of years of credit, the benefit payable shall be the percentage of final average salary that would ordinarily be applicable to such individual upon retirement with such amount of credit (including incentive credit), reduced by five per centum per year for each year by which the number of years of service otherwise required to retire with an allowance equal to fifty percent of final average salary under such plan exceeds the amount of service credited to such employee under such plan at retirement (excluding the additional retirement incentive service credit provided pursuant to this act). Such reduction shall be prorated for partial years. § 7. a. Notwithstanding any other provision of law, any termination pay or leave arising from accrued sick leave or accrued annual leave for an eligible employee who has elected the retirement incentive provided by this act and who is a member of the New York city teachers' retire- ment system employed by the board of education of the city of New York shall be paid in three equal installments during a twenty-four month period commencing on such eligible employee's effective date of retire- ment. b. An employee of the city of New York who retires under the retire- ment incentive provided by this act, who is eligible for terminal leave pursuant to an applicable collective bargaining agreement or a personnel policy or rule or retirement leave pursuant to section 3107 of the education law or who has an accrued annual leave balance on the effec- tive date of retirement shall be paid in three equal installments two months, fourteen months and twenty-four months following such eligible employee's effective date of retirement. S. 2509--C 189 A. 3009--C § 8. a. A participating employer, if it elects the retirement incen- tive provided by this act shall be required to demonstrate the savings of their election by either eliminating positions vacated as a result of an eligible employee in an eligible title receiving the incentive provided by section six of this act or demonstrating a compensation savings such that the total amount of base salary paid for the two-year period subsequent to the effective date of retirement for such eligible employees in eligible titles to new hires, if any, who otherwise would not have been hired by such employer after the effective date of this act but for the retirement incentive provided herein shall be no more than one-half of the total amount of base salary that would have been paid to such eligible employees from their date of retirement for such two-year period. A participating employer may also demonstrate savings, however, by identifying a vacant position into which another employee can be appointed, transferred, or reassigned pursuant to the civil service law, rules or regulations, in which case the former position of the employee so appointed, transferred, or reassigned shall be elimi- nated. A participating employer shall make available its plans for achieving the savings described herein. b. The New York city department of citywide administrative services shall prepare a report designating the title, grade level, salary, and classification, according to appointing authority, (i) of each position which is eliminated pursuant to subdivision a of this section, (ii) of each position into which another employee was appointed, transferred, or reassigned and the former position of such employee, and (iii) of each position which is eliminated as a result of an appointment, transfer or reassignment referred to in paragraph (ii) of this subdivision. Such report shall be available no later than ninety days after the last date of the open period related to such positions. § 9. Nothing in this act shall be used to provide benefits that shall exceed the limits contained in section 415 of the internal revenue code. Provided, however, any service retirement benefit which has been reduced because of section 415 of the internal revenue code shall be increased when (and consistent with) the dollar limits in section 415 of the internal revenue code are adjusted by the internal revenue service for cost of living increases. Such increases shall not increase the benefit in excess of the service retirement benefit otherwise payable. § 10. Any eligible employee who retires pursuant to the provisions of this act and enters or reenters public service as defined in subdivision e of section 210 of the retirement and social security law and joins or rejoins any public retirement system of the state shall if the addi- tional benefit was provided pursuant to: (a) section six of this act, forfeit the additional benefit authorized by this act at the time of his or her subsequent retirement; or (b) repay to the participating employer such additional contribution together with the appropriate interest as determined by the appropriate retirement system. § 11. Notwithstanding any other provision of law, if the service retirement benefit of a member of a retirement system is subject to a maximum retirement benefit, the additional benefit authorized by this act will be computed by multiplying the final average salary times the number of years of service credit granted by section six of this act times the benefit fraction of the plan under which such member retires. § 12. The provisions of section 430 of the retirement and social secu- rity law shall not apply to any benefit or benefit improvement provided by this act. S. 2509--C 190 A. 3009--C § 13. The pension benefit costs of section six of this act shall be paid by participating employers as provided by applicable law for each retirement system covered by this act over a period not to exceed five years commencing in the fiscal year following the fiscal year in which this act shall have become a law. § 14. Where an employee is eligible to receive the benefit authorized under section six and the retirement benefit provided for under section five of subpart B of this act, such employee may elect a section under which he or she will participate. In no event shall the benefits provided for in section six of this act be received by any employee in conjunction with the benefits of section five of subpart B of this act. § 15. This act shall take effect immediately. SUBPART B Section 1. Definitions. As used in this act, unless the context clear- ly requires otherwise: a. "Retirement system" means the New York city teachers' retirement system, the New York city board of education retirement system or the New York city employees' retirement system, exclusive of the retirement plans established pursuant to sections 13-156 and 13-157 of the adminis- trative code of the city of New York. b. "Teachers' retirement system" means the New York city teachers' retirement system. c. (a) "Participating employer" means the city of New York or the board of education of the city of New York. (b) "Educational employer" means a participating employer which is the board of education of the city of New York. d. "Eligible employee" means a person who is a member of a retirement system of the city of New York and who is an employee of the city of New York or the board of education of the city of New York who has attained age fifty-five and has at least twenty-five years of creditable service in a retirement system, but such term shall not include the following persons: (a) elected officials, judges or justices appointed to or serving in court of record; (b) chief administrative officers of employers which participate in a teachers' retirement system; and (c) appointed members of boards or commissions any of whose members are appointed by the governor or by another public officer or body. e. "Active service" means service while being paid on the payroll, provided that (a) a leave of absence with pay shall be deemed active service; (b) other approved leave without pay not to exceed twelve weeks prior to the commencement of the designated open period; and (c) the period of time subsequent to a June school term and on or before August 31 of the year for which an open period is designated for a teacher (or other employee employed on a school-year basis) who is otherwise in active service on the effective date of this act shall be deemed active service. f. "Open period" means the period beginning with the commencement date as defined in subdivision g of this section and shall be ninety days in length; provided however that there shall be only one such open period and any such period shall not extend beyond October 31, 2021 for partic- ipating employers. For educational employers who make election after April 1, 2021, the open period shall begin immediately after such election, and shall not extend beyond August 31, 2021. For the purposes S. 2509--C 191 A. 3009--C of retirement pursuant to this act, a service retirement application must be filed with the appropriate retirement system not less than four- teen days prior to the effective date of retirement to become effective, unless a shorter period of time is permitted under law. g. "Commencement date" means the first day the retirement benefit mandated by this act shall be made available, which shall mean a date or dates on or after the effective date of this act for participating employers. The chief executive officer or other comparable official of a participating employer shall notify the head of the appropriate retirement system of the date of the open periods prior to the commence- ment dates of such periods. § 2. A participating employer, if it elects to participate pursuant to section three of this act shall establish a commencement date for the retirement benefit established under section five of this act in the following manner: (a) for participating employers that are not the city of New York, its governing body shall adopt a resolution establishing a commencement date; and (b) for the city of New York the chief executive officer shall issue an executive order establishing such commencement date, provided, however, no executive order shall in any manner super- sede any local charter. A copy of any such executive order or resolution establishing a commencement date shall be filed with the appropriate retirement system or systems, and, if applicable, on forms provided by such system. The executive order or resolution shall be accompanied by the affidavit of the chief executive officer or other comparable offi- cial of a participating employer certifying the commencement date. § 3. a. On or before June 30, 2021, a participating employer may elect to provide its employees the retirement incentive authorized by this act by the enactment of a local law or adoption of a resolution provided however, no local law or resolution enacted or adopted pursuant to this section shall in any manner supersede any local charter, provided further that, for an educational employer such election must be made by May 31, 2021. A copy of such law or resolution shall be filed with the appropriate retirement system or systems, and, if applicable, on forms provided by such system. The local law shall be accompanied by the affi- davit of the chief executive officer or other comparable official of a participating employer certifying the validity of such law. b. The commencement date of an open period for eligible employees of a retirement system of the city of New York who elect retirement benefits pursuant to this section may be up to one hundred eighty days after the end of the open period for other eligible employees, if requested by such system. § 4. Notwithstanding any other provision of law, any eligible employee who (a) has been continuously in the active service of a participating employer prior to the commencement date of the applicable open period, (b) files an application for service retirement that is effective during the open period, and (c) is otherwise eligible for a service retirement as of the effective date of the application for retirement shall be entitled to the retirement benefit provided in section five of this act. § 5. a. Notwithstanding any other provision of law, an eligible employee who is: (a) a member of a retirement system and (b) who is entitled to a retirement benefit pursuant to section four of this act may retire during the open period without the reduction of his or her retirement benefit that would otherwise be imposed by article 11 or 15 of the retirement and social security law if he or she has attained the age of fifty-five and has completed at least twenty-five or more years of creditable service. An eligible employee who is covered by the S. 2509--C 192 A. 3009--C provisions of articles 11 and 15 of the retirement and social security law shall retire under the provisions of articles 11 and 15 of the retirement and social security law. b. A participating employer may deny participation in the retirement benefit provided by subdivision a of this section if such employer makes a determination that the employee holds a position that is deemed crit- ical to the maintenance of public health and safety. c. Where an employee is eligible for the retirement benefit under this section and the retirement incentive authorized pursuant to section six of subpart A of this act, such employee shall elect a section under which he or she will participate. The benefits provided by subdivision a of this section shall not be conditioned upon a participating employer making the benefits of section six of subpart A of this act available to employees in their employ. Further, the benefits provided by subdivision a of this section shall not be available in conjunction with the bene- fits of section six of subpart A of this act. d. The action of a participating employer in denying the retirement benefit provided for in subdivision a of this section to any individual shall be subject to review in the manner provided for in article 78 of the civil practice law and rules. Such action for review pursuant to article 78 of the civil practice law and rules shall only be commenced by the individual that was denied the retirement benefit provided by subdivision a of this section. e. After making any such determination under subdivision b of this section the participating employer shall notify the appropriate retire- ment system or teachers' retirement system of its determination. § 6. The pension benefit costs of section five of this act shall be paid by participating employers as provided by applicable law for each retirement system covered by this act over a period not to exceed five years commencing in the fiscal year following the fiscal year in which this act shall have become a law. § 7. This act shall take effect immediately. § 3. 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. § 4. This act shall take effect immediately; provided, however, that the applicable effective date of Subparts A and B of this act shall be as specifically set forth in the last section of such Subparts. FISCAL NOTE.--Pursuant to Legislative Law, Section 50: SUMMARY OF BILL: This proposed legislation, as it relates to the New York City Retirement Systems and Pension Funds (NYCRS), would provide for a temporary Early Retirement Incentive Program (ERI Program) to allow certain members of the New York City Employees' Retirement System (NYCERS), the New York City Teachers' Retirement System (TRS), and the New York City Board of Education Retirement System (BERS), who are employees of the City of New York (City) or the New York City Department of Education (DOE) and meet enumerated criteria, to elect immediate retirement with enhanced benefits. The ERI Program consists of two parts and is contingent upon the employer's election to participate in the Program. Part A would provide S. 2509--C 193 A. 3009--C to eligible members, determined by title, seniority, and enumerated policy considerations, an additional service credit. Part B would remove the application of early retirement reduction factors for qualifying members. The benefits of the respective Parts cannot be combined. Eligible NYCRS members would have anywhere from 30 to 90 days in an open period to elect and retire under Part A or within a 90-day open period following the commencement date to retire under Part B of the ERI Program. Multiple open periods, not to exceed 180 days from the end of an open period for other employees, may be requested by NYCRS. Should the City or the DOE elect to participate in the ERI Program provided by this Act, it would be required to demonstrate the savings related to the election. A member is eligible to participate in Part A of the ERI Program if he or she: * Is otherwise eligible for service retirement; * Is at least age 50 with 10 or more years of service and is not in a plan which permits retirement at half-pay with 25 or fewer years of service without regard to age; or * Is in a plan that permits retirement at half-pay at 25 years of service without regard to age and would reach 25 years of service considering the additional service credit provided in Part A. A member is eligible to participate in Part B of the ERI Program if he or she is age 55 or older and has at least 25 years of service. In addition to the eligibility conditions above, members must also: * Be in continuous active service preceding the commencement date of the open period; * For Part A - provide timely written notice of the intent to avail himself or herself of the ERI and file for service retirement that is effective within the open period; * For Part B - file for service retirement that is effective within the open period and otherwise be eligible to retire for service as of the effective date of retirement. Effective Date: Upon enactment and as determined by the respective open periods contained in Parts A and B. IMPACT ON BENEFITS: Part A would provide one-twelfth of a year of additional retirement service credit for each year of pension service, up to a maximum of three years of additional retirement service credit. Some benefits provided under Part A could be subject to Early Retirement Factors (ERF) as specified in the proposed legislation. Part B would allow members to retire with an unreduced benefit if they are at least age 55 with 25 or more years of service. FINANCIAL IMPACT - OVERVIEW: There is no credible data available to estimate the number of members who will retire under the current ERI Program and potentially benefit from this proposed legislation. There- fore, the estimated financial impact has been calculated on a per event basis equal to the average increase in the Present Value of future employer contributions and in the annual employer contributions for members who would benefit from the proposed legislation. The Present Value of future employer contributions is the net result of the increase in the Present Value of Future Benefits (PVFB) and the decrease in the Present Value of member contributions. For the purposes of this Fiscal Note, the increase in Present Value of future employer contributions was amortized over a five-year period (four payments under the One-Year Lag Methodology (OYLM)) using level dollar payments, the maximum allowable period under the proposed legis- S. 2509--C 194 A. 3009--C lation. This amortized value is the estimated increase in annual employ- er contributions. There will also be future savings in Employer Contributions assuming that these members are not replaced. This additional savings is not included here. With respect to an individual member, the additional cost of this proposed legislation could vary greatly depending on the member's length of service, age, and salary history. FINANCIAL IMPACT - SUMMARY: Based on the census data and the actuarial assumptions and methods described herein, the enactment of this proposed legislation would result in an increase in the Present Value of Employer Contributions and annual employer contributions. The estimated pension financial impact has been calculated as the average increase per person. A breakdown of the financial impact by NYCRS is shown in the table below: Additional Present Value of Estimated NYCRS Future Employer Annual Employer Contributions Contributions ($ Per Person) ($ Per Person) Part A Only NYCERS $80,700 $24,600 TRS 84,800 25,900 BERS 37,900 11,600 Average $77,900 $23,800 Part B Only NYCERS $113,600 $34,700 TRS 68,000 20,800 BERS 98,400 30,100 Average $109,200 $33,300 Both A & B NYCERS $96,500 $29,500 TRS 85,000 26,000 BERS 43,700 13,400 Average $87,700 $26,800 CONTRIBUTION TIMING: For the purposes of this Fiscal Note, it is assumed that the changes in the Present Value of future employer contributions and annual employer contributions would be reflected for the first time in the Final June 30, 2020 actuarial valuations of NYCERS, TRS, and BERS. In accordance with the OYLM used to determine employer contributions, the increase in employer contributions would first be reflected in Fiscal Year 2022. CENSUS DATA: For purposes of this Fiscal Note, it was assumed that the census data had the same age, gender, and service characteristics as the census data used in the Preliminary June 30, 2019 (Lag) actuarial valu- ations of NYCERS, TRS, and BERS to determine the Preliminary Fiscal Year 2021 employer contributions. Active members' salaries have been adjusted to reflect estimated salary increases from June 30, 2019 to June 30, 2020. The table below contains the census data for members who meet the eligibility requirements and would be impacted by the proposed legis- S. 2509--C 195 A. 3009--C lation (Potential Elections), and for a subset of those members who would benefit actuarially (Assumed to Elect). NYCRS Potential Elections Part A Only Count Avg Age Avg Svc Avg Salary NYCERS 34,147 58.5 22.3 $83,900 TRS 31,727 57.7 21.2 101,300 BERS 9,736 60.2 15.8 49,900 Total 75,610 58.4 21.0 $86,800 Part B Only Count Avg Age Avg Svc Avg Salary NYCERS 5,990 58.2 30.2 $88,600 TRS 569 58.0 26.9 110,100 BERS 430 58.6 29.5 72,700 Total 6,989 58.2 29.9 $89,400 Both A & B Count Avg Age Avg Svc Avg Salary NYCERS 34,147 58.5 22.3 $83,900 TRS 31,727 57.7 21.2 101,300 BERS 9,736 60.2 15.8 49,900 Total 75,610 58.4 21.0 $86,800 NYCRS Assumed to Elect Part A Only Count Avg Age Avg Svc Avg Salary NYCERS 19,259 60.4 26.3 $87,600 TRS 11,436 61.3 27.0 109,000 BERS 3,318 63.6 21.6 51,600 Total 34,013 61.0 26.1 $91,300 Part B Only Count Avg Age Avg Svc Avg Salary NYCERS 5,941 58.2 30.2 $88,400 TRS 530 57.9 26.9 109,900 BERS 423 58.6 29.5 71,500 Total 6,894 58.2 29.9 $89,000 BOTH A & B Count Avg Age Avg Svc Avg Salary NYCERS 20,204 60.2 26.4 $88,000 TRS 11,588 61.2 27.0 109,000 BERS 3,331 63.6 21.6 51,900 Total 35,123 60.9 26.2 $91,500 ACTUARIAL ASSUMPTIONS AND METHODS: The changes in the Present Value of future employer contributions and annual employer contributions presented herein have been calculated based on the actuarial assumptions and methods in effect for the June 30, 2019 (Lag) actuarial valuations used to determine the Preliminary Fiscal Year 2021 employer contrib- utions of NYCERS, TRS, and BERS. S. 2509--C 196 A. 3009--C The Actuary is proposing a set of changes for use in the June 30, 2019 (Lag) actuarial valuations of NYCRS to determine the Final Fiscal Year 2021 Employer Contributions (2021 A&M). If the 2021 A&M is enacted it is estimated that it would produce increases in the Present Value of Employer Contributions and annual employer contributions that are approximately 1% larger than the results shown above. To determine the impact of the elective nature of the proposed legis- lation, a subgroup based on who could potentially benefit actuarially was used. The Present Value of future employer costs (i.e. the PVFB less the Present Value of future member contributions) of each member's bene- fit was determined under their current plan and as if retiring imme- diately under the ERI Program. If the Present Value of future employer cost under the ERI Program was greater than or equal to the Present Value of future employer cost under the member's current plan, then the member was deemed to benefit actuarially. Based on this analysis, the costs presented in this Fiscal Note are borne only from current NYCERS, TRS, and BERS members who are employed by the City and assumed to benefit from, and thus opt to retire under, the ERI Program. RISK AND UNCERTAINTY: The costs presented in this Fiscal Note depend highly on the realization of the actuarial assumptions used, as well as certain demographic characteristics of NYCERS, TRS, and BERS, and other exogenous factors such as investment, contribution, and other risks. If actual experience deviates from actuarial assumptions, the actual costs could differ from those presented herein. Costs are also dependent on the actuarial methods used, and therefore different actuarial methods could produce different results. Quantifying these risks is beyond the scope of this Fiscal Note. Not measured in this Fiscal Note are the following: * The offsetting reduction in salary due to retirements earlier than expected. * The impact of potential new hires replacing members who retire due to the ERI Program. * The initial, additional administrative costs to implement the proposed legislation. * The impact of this proposed legislation on Other Postemployment Benefit (OPEB) costs. STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu- ary for, and independent of, the New York City Retirement Systems and Pension Funds. I am a Fellow of the Society of Actuaries, an Enrolled Actuary under the Employee Retirement Income and Security Act of 1974, a Member of the American Academy of Actuaries, and a Fellow of the Confer- ence of Consulting Actuaries. I meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. To the best of my knowledge, the results contained herein have been prepared in accordance with generally accepted actuarial principles and procedures and with the Actuarial Standards of Practice issued by the Actuarial Standards Board. FISCAL NOTE IDENTIFICATION: This Fiscal Note 2021-19 dated April 5, 2021 was prepared by the Chief Actuary for the New York City Employees' Retirement System, the New York City Teachers' Retirement System, and the New York City Board of Education Retirement System. This estimate is intended for use only during the 2021 Legislative Session. PART LLL S. 2509--C 197 A. 3009--C Section 1. Section 509-a of the racing, pari-mutuel wagering and breeding law, as added by chapter 681 of the laws of 1989, the opening paragraph as amended by chapter 346 of the laws of 1990, is amended to read as follows: § 509-a. Capital acquisition fund. 1. The corporation may create and establish a capital acquisition fund for the purpose of financing the acquisition, construction or equipping of offices, facilities or prem- ises of the corporation. Such capital acquisition fund shall consist of (i) the amounts specified pursuant to subdivision three-a of section five hundred thirty-two of this chapter; and (ii) contributions from the corporation's pari-mutuel wagering pools, subject to the following limi- tations: [(1)] A. no contribution shall exceed the amount of one percent of the total pari-mutuel wagering pools for the quarter in which the contrib- ution is made; [(2)] B. no contribution shall reduce the amount of quarterly net revenues, exclusive of surcharge revenues, to an amount less than fifty percent of such net revenues; and [(3)] C. the balance of the fund shall not exceed the lesser of one percent of total pari-mutuel wagering pools for the previous twelve months or the undepreciated value of the corporation's offices, facili- ties and premises. 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW OR REGULATION TO THE CONTRARY, TWENTY-THREE PERCENT OF THE FUNDS, NOT TO EXCEED TWO AND ONE- HALF MILLION DOLLARS, IN THE CATSKILL OFF-TRACK BETTING CORPORATION'S CAPITAL ACQUISITION FUND AND TWENTY-THREE PERCENT OF THE FUNDS, NOT TO EXCEED FOUR HUNDRED FORTY THOUSAND DOLLARS, IN THE CAPITAL OFF-TRACK BETTING CORPORATION'S CAPITAL ACQUISITION FUND ESTABLISHED PURSUANT TO THIS SECTION SHALL ALSO BE AVAILABLE TO SUCH OFF-TRACK BETTING CORPO- RATION FOR THE PURPOSES OF STATUTORY OBLIGATIONS, PAYROLL, AND EXPENDI- TURES NECESSARY TO ACCEPT AUTHORIZED WAGERS. 3. THE CATSKILL OFF-TRACK BETTING CORPORATION AND THE CAPITAL OFF- TRACK BETTING CORPORATION SHALL MAKE A REPORT TO THE GOVERNOR, SPEAKER OF THE ASSEMBLY, TEMPORARY PRESIDENT OF THE SENATE AND THE COMMISSION DETAILING THE ACTUAL USE OF THE FUNDS MADE AVAILABLE IN THE CAPITAL ACQUISITION FUND. SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, ANY IMPACT ON EMPLOYMENT LEVELS SINCE UTILIZING THE FUNDS, THE STATUS OF ANY STATUTORY OBLIGATIONS, AN ACCOUNTING OF THE USE OF SUCH FUNDS, AND ANY OTHER INFORMATION AS DEEMED NECESSARY BY THE COMMISSION. SUCH REPORT SHALL BE DUE NO LATER THAN THE FIRST DAY OF APRIL TWO THOUSAND TWENTY- TWO. § 2. This act shall take effect immediately and shall expire and be deemed repealed one year after such date. PART MMM Section 1. Section 13 of chapter 141 of the laws of 1994, amending the legislative law and the state finance law relating to the operation and administration of the legislature, as amended by section 1 of part LLL of chapter 56 of the laws of 2020, is amended to read as follows: § 13. This act shall take effect immediately and shall be deemed to have been in full force and effect as of April 1, 1994, provided that, the provisions of section 5-a of the legislative law as amended by sections two and two-a of this act shall take effect on January 1, 1995, and provided further that, the provisions of article 5-A of the legisla- tive law as added by section eight of this act shall expire June 30, S. 2509--C 198 A. 3009--C [2021] 2022 when upon such date the provisions of such article shall be deemed repealed; and provided further that section twelve of this act shall be deemed to have been in full force and effect on and after April 10, 1994. § 2. This act shall not supersede the findings and determinations made by the compensation committee as authorized pursuant to part HHH of chapter 59 of the laws of 2018 unless a court of competent jurisdiction determines that such findings and determinations are invalid or other- wise not applicable or in force. § 3. This act shall take effect immediately, provided, however, if this act shall take effect on or after June 30, 2021, this act shall be deemed to have been in full force and effect on and after June 30, 2021. PART NNN Section 1. Clauses (A) and (E) of subparagraph (ii) of paragraph (d) of subdivision 6 of section 137 of the correction law, as amended by a chapter of the laws of 2021, amending the correction law relating to restricting the use of segregated confinement and creating alternative therapeutic and rehabilitative confinement options, as proposed in legislative bills numbers S. 2836 and A. 2277-A, are amended to read as follows: (A) Upon placement of an inmate into segregated confinement or a resi- dential rehabilitation unit at a level one or level two facility, a suicide prevention screening instrument shall be administered by staff from the department or the office of mental health who has been trained for that purpose. If such a screening instrument reveals that the inmate is at risk of suicide, a mental health clinician shall be consulted and appropriate safety precautions shall be taken. Additionally, within one business day of the placement of such an inmate into segregated confine- ment at a level one or level two facility OR A RESIDENTIAL REHABILI- TATION UNIT, the inmate shall be assessed by a mental health clinician. (E) A recommendation or determination whether to remove an inmate from segregated confinement or a residential rehabilitation unit shall take into account the assessing mental health clinicians' opinions as to the inmate's mental condition and treatment needs, and shall also take into account any safety and security concerns that would be posed by the inmate's removal, even if additional restrictions were placed on the inmate's access to treatment, property, services or privileges in a residential mental health treatment unit. A recommendation or determi- nation shall direct the inmate's removal from segregated confinement or a residential rehabilitation unit except in the following exceptional circumstances: (1) when the reviewer finds that removal would pose a substantial risk to the safety of the inmate or other persons, or a substantial threat to the security of the facility, even if additional restrictions were placed on the inmate's access to treatment, property, services or privileges in a residential mental health treatment unit; or (2) when the assessing mental health clinician determines that such placement is in the inmate's best interests based on his or her mental condition and that removing such inmate to a residential mental health treatment unit would be detrimental to his or her mental condition. Any determination not to remove an inmate with serious mental illness from [segregated confinement or] a residential rehabilitation unit shall be documented in writing and include the reasons for the determination. § 2. Subparagraph (iv) of paragraph (d) of subdivision 6 of section 137 of the correction law, as amended by a chapter of the laws of 2021 S. 2509--C 199 A. 3009--C amending the correction law relating to restricting the use of segre- gated confinement and creating alternative therapeutic and rehabilita- tive confinement options, as proposed in legislative bills numbers S. 2836 and A. 2277-A, is amended to read as follows: (iv) All inmates in segregated confinement in a level one or level two facility OR A RESIDENTIAL REHABILITATION UNIT who are not assessed with a serious mental illness at the initial assessment shall be offered at least one interview with a mental health clinician within seven days of their initial mental health assessment, unless the mental health clini- cian at the most recent interview recommends an earlier interview or assessment. All inmates in a residential rehabilitation unit in a level three or level four facility who are not assessed with a serious mental illness at the initial assessment shall be offered at least one inter- view with a mental health clinician within thirty days of their initial mental health assessment, and additional interviews at least every nine- ty days thereafter, unless the mental health clinician at the most recent interview recommends an earlier interview or assessment. § 3. Paragraph (i) of subdivision 6 of section 137 of the correction law, as added by a chapter of the laws of 2021 amending the correction law relating to restricting the use of segregated confinement and creat- ing alternative therapeutic and rehabilitative confinement options, as proposed in legislative bills numbers S. 2836 and A. 2277-A, is amended to read as follows: (i) (I) No person may be placed in segregated confinement for longer than necessary and no more than fifteen consecutive days [or]. NOR SHALL ANY PERSON BE PLACED IN SEGREGATED CONFINEMENT FOR MORE THAN twenty total days within any sixty day period EXCEPT AS OTHERWISE PROVIDED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH. At these limits, he or she must be released from segregated confinement or diverted to a separate residen- tial rehabilitation unit. If placement of such person in segregated confinement would exceed the twenty-day limit and the department estab- lishes that the person committed an act defined in subparagraph (ii) of paragraph (k) of this subdivision, the department may place the person in segregated confinement until admission to a residential rehabili- tation unit can be effectuated. Such admission to a residential rehabil- itation unit shall occur as expeditiously as possible and in no case take longer than forty-eight hours from the time such person is placed in segregated confinement. (II) FOR OFFENSES DETERMINED PURSUANT TO PARAGRAPH (L) OF THIS SUBDI- VISION TO CONSTITUTE A VIOLENT FELONY ACT DEFINED IN SUBPARAGRAPH (II) OF PARAGRAPH (K) OF THIS SUBDIVISION, IF OCCURRING MORE THAN ONE TIME WITHIN ANY SIXTY DAY PERIOD, UP TO AN ADDITIONAL FIFTEEN CONSECUTIVE DAYS IN SEGREGATED CONFINEMENT MAY OCCUR FOR EACH SUCH ADDITIONAL INCI- DENT. IF SUCH SUBSEQUENT INCIDENT TAKES PLACE IN A RESIDENTIAL REHABILI- TATION UNIT OR GENERAL POPULATION, THE PERSON MAY BE RETURNED TO SEGRE- GATED CONFINEMENT FOR UP TO FIFTEEN CONSECUTIVE DAYS. IF SUCH SUBSEQUENT INCIDENT TAKES PLACE IN SEGREGATED CONFINEMENT AND CAUSES PHYSICAL INJU- RY TO ANOTHER PERSON, THE PERSON MAY RECEIVE UP TO AN ADDITIONAL FIFTEEN CONSECUTIVE DAYS IN SEGREGATED CONFINEMENT, PROVIDED HOWEVER THAT THE PERSON MUST SPEND AT LEAST FIFTEEN DAYS IN A RESIDENTIAL REHABILITATION UNIT IN BETWEEN EACH PLACEMENT OF UP TO FIFTEEN CONSECUTIVE DAYS IN SEGREGATED CONFINEMENT. CUSTODY UNDER THIS SUBPARAGRAPH SHALL OTHERWISE BE IN ACCORDANCE WITH THIS CHAPTER. § 4. Subparagraphs (ii) and (v) of paragraph (j) of subdivision 6 of section 137 of the correction law, as added by a chapter of the laws of 2021 amending the correction law relating to restricting the use of S. 2509--C 200 A. 3009--C segregated confinement and creating alternative therapeutic and rehabi- litative confinement options, as proposed in legislative bills numbers S. 2836 and A. 2277-A, are amended to read as follows: (ii) Persons in segregated confinement shall be offered out-of-cell programming at least four hours per day, including at least one hour for recreation. Persons admitted to residential rehabilitation units shall be offered at least six hours of daily out-of-cell congregate program- ming, services, treatment, RECREATION, ACTIVITIES and/or meals, with an additional minimum of one hour for recreation. Recreation in all resi- dential rehabilitation units shall take place in a congregate setting, unless exceptional circumstances mean doing so would create a signif- icant and unreasonable risk to the safety and security of other incar- cerated persons, staff, or the facility. PERSONS IN SEGREGATED CONFINE- MENT AND RESIDENTIAL REHABILITATION UNITS SHALL BE OFFERED PROGRAMMING LED BY PROGRAM OR THERAPEUTIC STAFF FIVE DAYS PER WEEK, EXCEPT ON RECOG- NIZED STATE LEGAL HOLIDAYS. ALL OTHER OUT-OF-CELL TIME MAY INCLUDE PEER- LED PROGRAMS, TIME IN A DAY ROOM OR OUT-OF-CELL RECREATION AREA WITH OTHER PEOPLE, CONGREGATE MEALS, VOLUNTEER PROGRAMS, OR OTHER CONGREGATE ACTIVITIES. (v) An incarcerated person in a residential rehabilitation unit shall have access to programs and work assignments comparable to core programs and TYPES OF work assignments in general population. Such incarcerated persons shall also have access to additional out-of-cell, trauma-in- formed therapeutic programming aimed at promoting personal development, addressing underlying causes of problematic behavior resulting in place- ment in a residential rehabilitation unit, and helping prepare for discharge from the unit and to the community. § 5. Clause (F) of subparagraph (ii) of paragraph (k) of subdivision 6 of section 137 of the correction law, as added by a chapter of the laws of 2021 amending the correction law relating to restricting the use of segregated confinement and creating alternative therapeutic and rehabi- litative confinement options, as proposed in legislative bills numbers S. 2836 and A. 2277-A, is amended to read as follows: (F) procuring A deadly [weapons] WEAPON or other dangerous contraband that poses a serious threat to the security of the institution; or § 6. Paragraphs (n) and (o) of subdivision 6 of section 137 of the correction law, as added by a chapter of the laws of 2021 amending the correction law relating to restricting the use of segregated confinement and creating alternative therapeutic and rehabilitative confinement options, as proposed in legislative bills numbers S. 2836 and A. 2277-A, are amended to read as follows: (n) All special housing unit, keeplock unit and residential rehabili- tation unit staff and their supervisors shall undergo [a minimum of thirty-seven hours and thirty minutes of] SPECIALIZED training prior to assignment to such unit, and [twenty-one hours of additional training annually] REGULAR SPECIALIZED TRAINING thereafter, on substantive content developed in consultation with relevant experts, on topics including, but not limited to, the purpose and goals of the non-punitive therapeutic environment, trauma-informed care, restorative justice, and dispute resolution methods. Prior to presiding over any hearings, all hearing officers shall undergo a minimum of thirty-seven hours [and thirty minutes] of training, with one additional day of training annual- ly thereafter, on relevant topics, including but not limited to, the physical and psychological effects of segregated confinement, procedural and due process rights of the accused, and restorative justice remedies. S. 2509--C 201 A. 3009--C (o) The department shall publish monthly reports on its website, with semi-annual and annual cumulative reports, of the total number of people who are in segregated confinement and the total number of people who are in residential rehabilitation units on the first day of each month. The reports shall provide a breakdown of the number of people in segregated confinement and in residential rehabilitation units by: (i) age; (ii) race; (iii) gender; (iv) mental health treatment level; (v) special health accommodations or needs; (vi) need for and participation in substance [abuse] USE DISORDER programs; (vii) pregnancy status; (viii) continuous length of stay in residential treatment units as well as length of stay in the past sixty days; (ix) number of days in segregated confinement; (x) a list of all incidents resulting in sanctions of segregated confinement by facility and date of occurrence; (xi) the number of incarcerated persons in segregated confinement by facility; and (xii) the number of incarcerated persons in residential rehabili- tation units by facility. § 7. Subdivision 7 of section 138 of the correction law, as added by a chapter of the laws of 2021 amending the correction law relating to restricting the use of segregated confinement and creating alternative therapeutic and rehabilitative confinement options, as proposed in legislative bills numbers S. 2836 and A. 2277-A, is amended to read as follows: 7. De-escalation, intervention, informational reports[,] and the with- drawal of incentives shall be the preferred methods of responding to misbehavior unless the department determines that non-disciplinary interventions have failed, or that non-disciplinary interventions would not succeed and the misbehavior involved an act listed in subparagraph (ii) of paragraph (k) of subdivision six of section one hundred thirty- seven of this article, in which case, as a last resort, the department shall have the authority to issue misbehavior reports, pursue discipli- nary charges, or impose new or additional segregated confinement sanc- tions. § 8. Subparagraph (i) of paragraph (a) of subdivision 2 of section 401 of the correction law, as amended by a chapter of the laws of 2021 amending the correction law relating to restricting the use of segre- gated confinement and creating alternative therapeutic and rehabilita- tive confinement options, as proposed in legislative bills numbers S. 2836 and A. 2277-A, is amended to read as follows: (i) In exceptional circumstances, a mental health clinician, or the highest ranking facility security supervisor in consultation with a mental health clinician who has interviewed the inmate, may determine that an inmate's access to out-of-cell therapeutic programming and/or mental health treatment in a residential mental health treatment unit presents an unacceptable risk to the safety of inmates or staff. Such determination shall be documented in writing and such inmate [shall] MAY be removed to a residential rehabilitation unit that is not a residen- tial mental health treatment unit where alternative mental health treat- ment and/or other therapeutic programming, as determined by a mental health clinician, shall be provided. § 9. Subdivision 6 of section 401 of the correction law, as amended by a chapter of the laws of 2021 amending the correction law relating to restricting the use of segregated confinement and creating alternative therapeutic and rehabilitative confinement options, as proposed in legislative bills numbers S. 2836 and A. 2277-A, is amended to read as follows: S. 2509--C 202 A. 3009--C 6. The department shall ensure that the curriculum for new correction officers, and other new department staff who will regularly work in programs providing mental health treatment for inmates, shall include at least eight hours of training about the types and symptoms of mental illnesses, the goals of mental health treatment, the prevention of suicide and training in how to effectively and safely manage inmates with mental illness. Such training may be provided by the office of mental health or the justice center for the protection of people with special needs. All department staff who are transferring into a residen- tial mental health treatment unit shall receive a minimum of eight addi- tional hours of such training, and eight hours of annual training as long as they work in such a unit. All security, program services, mental health and medical staff with direct inmate contact shall receive train- ing each year regarding identification of, and care for, inmates with mental illnesses. The department shall provide additional training on these topics on an ongoing basis as it deems appropriate. All staff working in a residential mental health treatment unit shall also receive [all] THE training mandated in paragraph (n) of subdivision six of section one hundred thirty-seven of this chapter. § 10. This act shall take effect on the same date and in the same manner as a chapter of the laws of 2021, amending the correction law relating to restricting the use of segregated confinement and creating alternative therapeutic and rehabilitative confinement options, as proposed in legislative bills numbers S. 2836 and A. 2277-A, takes effect. PART OOO Section 1. Subdivision 1 of section 1351 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: 1. (A) For a gaming facility in zone two, there is hereby imposed a tax on gross gaming revenues. The amount of such tax imposed shall be as follows; provided, however, should a licensee have agreed within its application to supplement the tax with a binding supplemental fee payment exceeding the aforementioned tax rate, such tax and supplemental fee shall apply for a gaming facility: [(a)] (1) in region two, forty-five percent of gross gaming revenue from slot machines and ten percent of gross gaming revenue from all other sources. [(b)] (2) in region one, thirty-nine percent of gross gaming revenue from slot machines and ten percent of gross gaming revenue from all other sources. [(c)] (3) in region five, thirty-seven percent of gross gaming revenue from slot machines and ten percent of gross gaming revenue from all other sources. (B) (1) NOTWITHSTANDING THE RATES IN PARAGRAPH (A) OF THIS SUBDIVI- SION, A GAMING FACILITY MAY PETITION THE COMMISSION TO LOWER THE TAX RATE APPLICABLE TO ITS SLOT MACHINES TO NO LOWER THAN THIRTY PERCENT. IN ANALYZING SUCH REQUEST, THE COMMISSION SHALL EVALUATE THE PETITION USING THE FOLLOWING CRITERIA: (I) THE ABILITY OF THE LICENSEE TO SATISFY THE LICENSE CRITERION OF FINANCIAL STABILITY ABSENT THE TAX RATE REDUCTION; (II) A COMPLETE EXAMINATION OF ALL FINANCIAL PROJECTIONS, AS WELL AS GAMING REVENUES GENERATED FOR THE PRIOR ANNUAL PERIOD; S. 2509--C 203 A. 3009--C (III) THE LICENSEE'S INTENDED USE OF THE FUNDS RESULTING FROM A TAX ADJUSTMENT; (IV) THE INABILITY OF THE OPERATOR TO REMAIN COMPETITIVE UNDER THE CURRENT TAX STRUCTURE; (V) POSITIONS ADVANCED BY OTHER GAMING OPERATORS IN THE STATE IN RESPONSE TO THE PETITION; (VI) THE IMPACT ON THE COMPETITIVE LANDSCAPE; (VII) OTHER ECONOMIC FACTORS SUCH AS EMPLOYMENT AND THE POTENTIAL IMPACT UPON OTHER BUSINESSES IN THE REGION; AND (VIII) THE PUBLIC INTEREST TO BE SERVED BY A TAX ADJUSTMENT, INCLUDING THE IMPACT UPON THE STATE IN THE EVENT THE OPERATOR IS UNABLE TO REMAIN FINANCIALLY VIABLE. (2) THE COMMISSION SHALL REPORT THEIR RECOMMENDATION SOLELY BASED ON THE CRITERIA LISTED IN SUBPARAGRAPH ONE OF THIS PARAGRAPH TO THE DIREC- TOR OF THE DIVISION OF BUDGET WHO WILL MAKE A FINAL APPROVAL. (3) (I) AS A CONDITION OF THE LOWER SLOT MACHINE TAX RATE, SUCH GAMING FACILITY SHALL PROVIDE AN INITIAL REPORT TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE COMMISSION DETAILING THE PROJECTED USE OF FUNDS RESULTING FROM SUCH TAX ADJUSTMENT AND A PLAN THAT PRESCRIBES THE MANNER IN WHICH THE LICENSED GAMING FACILITY POTENTIALLY RECEIVING THE REDUCTION IN ITS SLOT MACHINE TAX RATE WILL REBUILD THEIR ECONOMIC INFRASTRUCTURE THROUGH THE REHIRING OF LAID-OFF EMPLOYEES OR THE CREATION OF NEW JOBS. SUCH PLAN SHALL ALSO CLEARLY ESTABLISH QUARTERLY AND ANNUAL EMPLOYMENT GOALS OF INCREASING FULL-TIME EMPLOYEES. SUCH INITIAL REPORT AND ACCOMPANYING PLAN SHALL BE DUE AT THE TIME A FACILITY IS GRANTED A TAX ADJUSTMENT. THEREAFTER, AN ANNUAL REPORT SHALL BE MADE TO THE GOVERNOR, THE SPEAKER OF THE ASSEM- BLY, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE COMMISSION DETAILING ACTUAL USE OF THE FUNDS RESULTING FROM SUCH TAX ADJUSTMENT. SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, ANY IMPACT ON EMPLOYMENT LEVELS SINCE RECEIVING THE FUNDS, AN ACCOUNTING OF THE USE OF SUCH FUNDS, ANY OTHER MEASURES IMPLEMENTED TO IMPROVE THE FINANCIAL STABILITY OF THE GAMING FACILITY, ANY RELEVANT INFORMATION THAT HELPED IN THE DETERMI- NATION OF SUCH SLOT TAX RATE REDUCTION, AND ANY OTHER INFORMATION AS DEEMED NECESSARY BY THE COMMISSION. SUCH REPORT SHALL BE DUE NO LATER THAN THE FIRST DAY OF THE FOURTH QUARTER AFTER SUCH TAX RATE HAS BEEN GRANTED. (II) (A) AT THE CONCLUSION OF EACH YEAR, A LICENSED GAMING FACILITY SHALL PROVIDE AN AFFIRMATION IN WRITING TO THE COMMISSION STATING THE EMPLOYMENT GOAL IN CLAUSE (I) OF THIS SUBPARAGRAPH WAS EITHER MET OR NOT MET AS DESCRIBED IN THE INITIAL REPORT. IF THE LICENSED GAMING FACILITY IS FOUND TO HAVE NOT ADHERED TO THE PLAN BY THE COMMISSION, THEN THE APPLICABLE SLOT TAX RATE SHALL BE ADJUSTED AT THE DISCRETION OF THE COMMISSION AS FOLLOWS: 1. IF THE ACTUAL EMPLOYMENT NUMBER IS MORE THAN FIFTY PERCENT LESS THAN THE EMPLOYMENT GOAL, THEN THE SLOT TAX RATE SHALL BE INCREASED BY TEN PERCENTAGE POINTS. 2. IF THE ACTUAL EMPLOYMENT NUMBER IS MORE THAN FORTY PERCENT LESS THAN THE EMPLOYMENT GOAL, THEN THE SLOT TAX RATE SHALL BE INCREASED BY EIGHT PERCENTAGE POINTS. 3. IF THE ACTUAL EMPLOYMENT NUMBER IS MORE THAN THIRTY PERCENT LESS THAN THE EMPLOYMENT GOAL, THEN THE SLOT TAX RATE SHALL BE INCREASED BY SIX PERCENTAGE POINTS. 4. IF THE ACTUAL EMPLOYMENT NUMBER IS MORE THAN TWENTY PERCENT LESS THAN THE EMPLOYMENT GOAL, THEN THE SLOT TAX RATE SHALL BE INCREASED BY FOUR PERCENTAGE POINTS. S. 2509--C 204 A. 3009--C 5. IF THE ACTUAL EMPLOYMENT NUMBER IS MORE THAN TEN PERCENT LESS THAN THE EMPLOYMENT GOAL, THEN THE SLOT TAX RATE SHALL BE INCREASED BY TWO PERCENTAGE POINTS. (B) SUCH FINDING AND THE REASONING THEREOF SHALL OCCUR NO LATER THAN THIRTY DAYS FOLLOWING SUBMISSION OF THE WRITTEN AFFIRMATION. (III) A LICENSED GAMING FACILITY MAY PETITION THE COMMISSION TO LOWER THE TAX RATE APPLICABLE TO ITS SLOT MACHINES TO NO LOWER THAN THIRTY PERCENT NO MORE THAN ONCE ANNUALLY AFTER THE EFFECTIVE DATE OF THE CHAP- TER OF THE LAWS OF TWO THOUSAND TWENTY-ONE WHICH AMENDED THIS SUBDIVI- SION. A LICENSED GAMING FACILITY MAY REQUEST A REVISION TO ITS PLAN IN ITS INITIAL REPORT DUE TO UNFORESEEN CIRCUMSTANCES. § 2. This act shall take effect immediately and shall expire and be deemed repealed five years after such date. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Parts A through OOO of this act shall be as specifically set forth in the last section of such Parts.
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