S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5344
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 7, 2023
                                ___________
 
 Introduced  by  M.  of  A.  CUNNINGHAM,  DILAN,  GIBBS  -- read once and
   referred to the Committee on Correction
 
 AN ACT to amend the correction law and  the  tax  law,  in  relation  to
   adjusting  the  earnings of formerly incarcerated individuals who were
   unjustly convicted

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The correction law is amended by adding a new section 188
 to read as follows:
   § 188. ADJUSTMENT OF  EARNINGS  OF  INCARCERATED  INDIVIDUALS;  UNJUST
 CONVICTION.  1. (A) ANY INCARCERATED INDIVIDUAL WHO IS EMPLOYED PURSUANT
 TO THE PROVISIONS OF THIS ARTICLE SHALL BE  ENTITLED  TO  A  RETROACTIVE
 ADJUSTMENT  IN  THEIR RATE OF COMPENSATION WHERE SUCH INCARCERATED INDI-
 VIDUAL IS SUBSEQUENTLY (I) PARDONED UPON THE GROUNDS OF INNOCENCE OF THE
 CRIME OR CRIMES FOR WHICH SUCH INCARCERATED INDIVIDUAL WAS SENTENCED AND
 WHICH ARE THE GROUNDS FOR THE FINE, RESTITUTION OR REPARATION;  OR  (II)
 SUCH  INCARCERATED  INDIVIDUAL'S  JUDGMENT OF CONVICTION WAS REVERSED OR
 VACATED, AND THE ACCUSATORY INSTRUMENT DISMISSED OR, IF A NEW TRIAL  WAS
 ORDERED, EITHER SUCH INCARCERATED INDIVIDUAL WAS FOUND NOT GUILTY AT THE
 NEW  TRIAL  OR SUCH DEFENDANT WAS NOT RETRIED AND THE ACCUSATORY INSTRU-
 MENT DISMISSED; PROVIDED THAT THE JUDGMENT OF CONVICTION WAS REVERSED OR
 VACATED, AND THE ACCUSATORY INSTRUMENT WAS  DISMISSED,  ON  ANY  OF  THE
 FOLLOWING  GROUNDS:  (1) PARAGRAPH (A), (B), (C), (E) OR (G) OF SUBDIVI-
 SION ONE OF SECTION 440.10 OF THE CRIMINAL PROCEDURE LAW; OR (2)  SUBDI-
 VISION  ONE  (WHERE  BASED  UPON GROUNDS SET FORTH IN CLAUSE ONE OF THIS
 SUBPARAGRAPH), TWO, THREE (WHERE THE COUNT DISMISSED WAS THE SOLE  BASIS
 FOR  THE  IMPRISONMENT  COMPLAINED  OF) OR FIVE OF SECTION 470.20 OF THE
 CRIMINAL PROCEDURE LAW; OR (3) COMPARABLE PROVISIONS OF THE FORMER  CODE
 OF CRIMINAL PROCEDURE OR SUBSEQUENT LAW; OR (4) THE STATUTE, OR APPLICA-
 TION  THEREOF, ON WHICH THE ACCUSATORY INSTRUMENT WAS BASED VIOLATED THE
 CONSTITUTION OF THE UNITED STATES OR THE STATE OF NEW YORK.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09600-01-3
              

 A. 5344                             2
 
   (B) SUCH COMPENSATION ADJUSTMENT SHALL BE THE GREATER OF:
   (I) THE CURRENT MINIMUM WAGE OF THE STATE;
   (II) THE CURRENT WAGE OR INDUSTRY STANDARD WAGE OF THE TRADE OR INDUS-
 TRY  THAT  SUCH  INCARCERATED  INDIVIDUAL  WAS  ACTIVELY  EMPLOYED IN OR
 TRAINED/CERTIFIED TO WORK IN; OR
   (III) THE WAGE EQUIVALENT OF THE INCARCERATED INDIVIDUAL'S  SALARY  AT
 THE TIME OF CONVICTION.
   2.  WITHIN  NINETY  DAYS FOLLOWING THE NOTICE OF ADJUDICATION FOR SUCH
 PARDON, REVERSAL OR VACATION PURSUANT TO SUBPARAGRAPHS (I) AND  (II)  OF
 PARAGRAPH  (A)  OF SUBDIVISION ONE OF THIS SECTION, THE DEPARTMENT SHALL
 NOTIFY SUCH FORMERLY INCARCERATED INDIVIDUAL OF THEIR RIGHT TO RECEIVE A
 COMPENSATION ADJUSTMENT PURSUANT TO THE PROVISIONS OF THIS SECTION.
   3. WITHIN NINETY DAYS OF PROVIDING NOTICE PURSUANT TO SUBDIVISION  TWO
 OF THIS SECTION, THE DEPARTMENT SHALL REMIT TO SUCH FORMERLY INCARCERAT-
 ED  INDIVIDUAL  ANY  MONEYS  OWED AS ADJUSTED COMPENSATION AS WELL AS AN
 ACCOUNTING, INCLUDING THE METHOD OF ACCOUNTING, FOR ALL SUCH MONEYS.
   4. NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  ANY  MONEYS
 REMITTED   TO   A  FORMERLY  INCARCERATED  INDIVIDUAL  PURSUANT  TO  THE
 PROVISIONS OF THIS SECTION SHALL NOT DIMINISH OR IMPAIR ANY COMPENSATION
 OR AWARD WHICH MAY BE AVAILABLE TO SUCH FORMERLY INCARCERATED INDIVIDUAL
 PURSUANT TO THE PROVISIONS OF SECTION EIGHT-B OF  THE  COURT  OF  CLAIMS
 ACT.
   §  2.  Subsection  (i)  of  section  601  of the tax law is relettered
 subsection (j) and a new subsection (i) is added to read as follows:
   (I)  ADJUSTED  COMPENSATION  OF  FORMERLY  INCARCERATED   INDIVIDUALS.
 NOTWITHSTANDING  THE  PROVISIONS OF SUBSECTIONS (A), (B), (C) AND (D) OF
 THIS SECTION AND ANY OTHER PROVISION OF THIS ARTICLE, FOR TAXABLE  YEARS
 BEGINNING  AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, THE INCOME OF AN
 INDIVIDUAL RECEIVED PURSUANT TO THE PROVISIONS OF  SECTION  ONE  HUNDRED
 EIGHTY-EIGHT  OF  THE CORRECTION LAW SHALL BE EXEMPT FROM TAX UNDER THIS
 ARTICLE REGARDLESS OF WHETHER SUCH INCOME IS SUBJECT TO  FEDERAL  INCOME
 TAXATION.
   §  3.  This  act shall take effect on the thirtieth day after it shall
 have become a law.