The New York State Senate

 
                     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.

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   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.

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   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.

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   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.

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   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.