S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 7509                                                  A. 9509
 
                       S E N A T E - A S S E M B L Y
 
                             January 18, 2018
                                ___________
 
 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 real property tax law, in relation to the annual
   growth in STAR benefits (Part A); to amend the real property tax  law,
   in  relation to making the STAR income verification program mandatory;
   to amend the tax law, in relation to the  calculation  of  income  for
   basic STAR purposes; to repeal subparagraphs (v) and (vi) of paragraph
   (b)  of  subdivision  4,  paragraphs  (b) and (c) of subdivision 5 and
   paragraph (c) of subdivision 6 of section 425 of the real property tax
   law relating to the school tax relief (STAR) exemption; and to  repeal
   section  171-o  of  the  tax law relating to income verification for a
   city with a population of one million or more (Part B); to  amend  the
   real property law, in relation to real property transfer reports (Part
   C); to amend the real property law, in relation to reports of manufac-
   tured  housing  park  owners  (Part D); to amend the general municipal
   law, the education law, the state finance law, the real  property  tax
   law  and  the  tax law, in relation to making technical corrections to
   various statutes impacting property taxes; and  to  repeal  subsection
   (bbb) of section 606 of the tax law, section 3-d of the general munic-
   ipal  law  and  section  2023-b of the education law, relating thereto
   (Part E); to amend the real property tax law, in relation  to  taxable
   state  land  (Part F); to amend the real property tax law, in relation
   to assessment ceilings; and to amend chapter 475 of the laws of  2013,
   amending the real property tax law relating to assessment ceilings for
   local public utility mass real property, in relation to the effective-
   ness  thereof  (Part  G);  to amend the tax law and the administrative
   code of the city of New York, in relation to extending the statute  of
   limitations  for  assessing  tax on amended returns (Part H); to amend
   the tax law, in relation to  providing  for  employee  wage  reporting
   consistency  between  the  department  of taxation and finance and the
   department of labor (Part I); to amend the tax  law,  in  relation  to
   sales and compensating use taxes imposed on food and beverages sold by
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12674-01-8

 S. 7509                             2                            A. 9509
 
   restaurants and similar establishments (Part J); to amend the tax law,
   in  relation  to  allowing  sharing  with  the comptroller information
   regarding unwarranted fixed and final debt  (Part  K);  to  amend  the
   social services law, in relation to the disclosure of certain informa-
   tion  relating  to a person receiving public assistance to the commis-
   sioner of taxation and finance (Part L); to  amend  the  tax  law,  in
   relation  to  establishing a conditional tax on carried interest (Part
   M); 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 N); to amend the tax law and  the  adminis-
   trative code of the city of New York, in relation to the definition of
   resident  for  tax  purposes  of  the personal income tax (Part O); to
   amend the tax law, in relation to the empire state child credit  (Part
   P);  to amend the tax law, in relation to extending the hire a veteran
   credit for an additional two years (Part Q); to amend  the  labor  law
   and  the  tax  law,  in  relation to enhancing the New York youth jobs
   program (Part R); to amend the tax law, in relation to  the  temporary
   deferral  of  certain  tax  credits (Part S); to amend the tax law, in
   relation to extending the real estate transfer tax statute of  limita-
   tions for refunds from two to three years and providing for consistent
   joint  liability  treatment  within the real estate transfer tax (Part
   T); to amend the tax law, in relation to the taxation of cigars  (Part
   U);  to  amend  the tax law and the administrative code of the city of
   New York, in relation to sales and  use  taxes  on  gas  and  electric
   service;  and repealing section 1105-C of the tax law relating thereto
   (Part V); to amend the tax law, in relation to  exempting  from  sales
   and  use  tax  certain veterinary drugs and medicines and removing the
   refund/credit therefor (Part W); to amend the tax law, in relation  to
   providing  relief  from  sales tax liability for certain partners of a
   limited partnership and members of a limited liability  company  (Part
   X);  to  amend the tax law, in relation to exempting items of food and
   drink when sold from certain  vending  machines  from  the  sales  and
   compensating  use  tax  (Part Y); to amend part A of chapter 61 of the
   laws of 2017, amending the tax law relating to the imposition of sales
   and compensating use taxes in certain counties, in relation to extend-
   ing the revenue distribution provisions for the  additional  rates  of
   sales  and  use  tax  of Genesee, Monroe, Onondaga and Orange counties
   (Part Z); to amend the tax law, in relation to  imposing  an  internet
   fairness  conformity  tax  and  requiring  non-collecting  sellers  to
   provide specified information  to  New  York  purchasers  and  to  the
   commissioner  of taxation and finance (Part AA); to amend the tax law,
   in relation to imposing a health tax on vapor products (Part  BB);  to
   amend the tax law, in relation to the imposition of an opioid epidemic
   surcharge;  and  to amend the state finance law, in relation to estab-
   lishing the opioid prevention, treatment and  recovery  account  (Part
   CC);  to  amend  the tax law, in relation to establishing a healthcare
   insurance windfall profit fee (Part DD); to amend the racing, pari-mu-
   tuel wagering and breeding law, in relation to adjusting the franchise
   payment, and authorizing  night  races  under  certain  circumstances;
   creating  an equine drug testing advisory committee; and providing for
   the repeal of certain provisions upon  the  expiration  thereof  (Part
   EE);  to  amend  the racing, pari-mutuel wagering and breeding law, in
   relation to providing funds for the aftercare of retired horses  (Part
   FF);  to  amend  the racing, pari-mutuel wagering and breeding law, in
   relation to licenses for simulcast facilities, sums relating to  track
   simulcast,  simulcast of out-of-state thoroughbred races, simulcasting

 S. 7509                             3                            A. 9509
 
   of races run by  out-of-state  harness  tracks  and  distributions  of
   wagers;  to amend chapter 281 of the laws of 1994 amending the racing,
   pari-mutuel wagering and breeding  law  and  other  laws  relating  to
   simulcasting  and chapter 346 of the laws of 1990 amending the racing,
   pari-mutuel wagering and breeding  law  and  other  laws  relating  to
   simulcasting  and  the  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 GG); to  amend  the  state  finance  law,  in
   relation to the commercial gaming revenue fund; and to repeal subdivi-
   sion  4  of  section 97-nnnn of the state finance law relating to base
   year gaming revenue (Part HH); and to amend the tax law,  in  relation
   to  commissions  paid  to the operator of a video lottery facility; to
   repeal certain provisions of such law relating thereto; and  providing
   for the repeal of certain provisions upon expiration thereof (Part II)

   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 2018-2019
 state  fiscal  year.  Each  component  is wholly contained within a Part
 identified as Parts A through II. The effective date for each particular
 provision contained within such Part is set forth in the last section of
 such Part. Any provision in any section contained within a Part, includ-
 ing the effective date of the Part, which makes a reference to a section
 "of this act", when used in connection with that  particular  component,
 shall  be  deemed  to mean and refer to the corresponding section of the
 Part in which it is found. Section three of  this  act  sets  forth  the
 general effective date of this act.

                                  PART A
 
   Section  1.  Subparagraph  (i)  of  paragraph  (a) of subdivision 2 of
 section 1306-a of the real property tax law, as amended by section 6  of
 part N of chapter 58 of the laws of 2011, is amended to read as follows:
   (i) The tax savings for each parcel receiving the exemption authorized
 by section four hundred twenty-five of this chapter shall be computed by
 subtracting  the  amount  actually  levied  against  the parcel from the
 amount that would have been levied if not for  the  exemption,  provided
 however,  that [beginning with] FOR the two thousand eleven-two thousand
 twelve THROUGH  TWO  THOUSAND  SEVENTEEN-TWO  THOUSAND  EIGHTEEN  school
 [year] YEARS, the tax savings applicable to any "portion" (which as used
 herein shall mean that part of an assessing unit located within a school
 district) shall not exceed the tax savings applicable to that portion in
 the  prior  school  year multiplied by one hundred two percent, with the
 result rounded to the nearest dollar; AND PROVIDED FURTHER  THAT  BEGIN-
 NING  WITH  THE TWO THOUSAND EIGHTEEN-TWO THOUSAND NINETEEN SCHOOL YEAR,
 THE TAX SAVINGS APPLICABLE TO ANY  PORTION  SHALL  NOT  EXCEED  THE  TAX
 SAVINGS  FOR  THE  PRIOR YEAR. The tax savings attributable to the basic
 and enhanced exemptions shall be calculated separately. It shall be  the
 responsibility  of the commissioner to calculate tax savings limitations
 for purposes of this subdivision.
   § 2. This act shall take effect immediately.

 S. 7509                             4                            A. 9509
 
                                  PART B
 
   Section  1.  Subparagraph  (ii)  of  paragraph (b) of subdivision 4 of
 section 425 of the real property tax law, as amended  by  section  3  of
 part E of chapter 83 of the laws of 2002, is amended to read as follows:
   (ii)  The  term "income" as used herein shall mean the "adjusted gross
 income" for federal income tax purposes as reported on  the  applicant's
 federal  or  state income tax return for the applicable income tax year,
 subject to any subsequent amendments or revisions, reduced  by  distrib-
 utions,  to  the  extent  included  in  federal  adjusted  gross income,
 received from an individual retirement account and an individual retire-
 ment annuity; provided that if no such return was filed for the applica-
 ble income tax year, "income" shall mean the adjusted gross income  that
 would  have  been so reported if such a return had been filed.  PROVIDED
 FURTHER, THAT EFFECTIVE WITH EXEMPTION APPLICATIONS FOR FINAL ASSESSMENT
 ROLLS TO BE COMPLETED IN TWO THOUSAND NINETEEN, WHERE  AN  INCOME-ELIGI-
 BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR
 MORE INDIVIDUALS WHO DID NOT FILE A RETURN FOR THE APPLICABLE INCOME TAX
 YEAR,  THEN IN ORDER FOR THE APPLICATION TO BE CONSIDERED COMPLETE, EACH
 SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE  DEPARTMENT  SHOWING  THE
 SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE
 AMOUNT  OR  AMOUNTS  THEREOF,  THAT  WOULD  HAVE BEEN REPORTED ON SUCH A
 RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT  SHALL  BE  FILED  AT  SUCH
 TIME,  AND  IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY THE DEPART-
 MENT, AND SHALL BE SUBJECT TO THE SECRECY PROVISIONS OF THE TAX  LAW  TO
 THE  SAME EXTENT THAT A PERSONAL INCOME TAX RETURN WOULD BE. THE DEPART-
 MENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAILABLE FOR THE FILING  OF
 SUCH STATEMENTS.
   §  2.  Subparagraph  (iv) of paragraph (b) of subdivision 4 of section
 425 of the real property tax law, as amended by chapter 451 of the  laws
 of 2015, is amended to read as follows:
   (iv)  (A)  Effective  with  applications for the enhanced exemption on
 final assessment rolls to be completed in two thousand [three] NINETEEN,
 the application form shall indicate that [the] ALL owners of the proper-
 ty and any owners' spouses residing on the premises [may  authorize  the
 assessor to] MUST have their income eligibility verified annually [ther-
 eafter]  by  the [state] department [of taxation and finance, in lieu of
 furnishing copies of the applicable income tax return  or  returns  with
 the  application.  If the owners of the property and any owners' spouses
 residing on the premises elect to participate  in  this  program,  which
 shall  be  known as the STAR income verification program, they] AND must
 furnish their taxpayer identification numbers  in  order  to  facilitate
 matching  with records of the department. [Thereafter, their] THE income
 eligibility  OF  SUCH  PERSONS  shall  be  verified  annually   by   the
 department, and the assessor shall not request income documentation from
 them[,  unless  such  department  advises  the assessor that they do not
 satisfy the applicable income eligibility requirements, or  that  it  is
 unable to determine whether they satisfy those requirements]. All APPLI-
 CANTS  FOR  THE  ENHANCED  EXEMPTION  AND  ALL  assessing units shall be
 required to participate in this program, WHICH SHALL  BE  KNOWN  AS  THE
 STAR INCOME VERIFICATION PROGRAM.
   (B) WHERE THE COMMISSIONER FINDS THAT THE ENHANCED EXEMPTION SHOULD BE
 REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE
 TO THE ENHANCED EXEMPTION HAS BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE
 PROPERTY  OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS-
 SIONER EVIDENCE TO THE CONTRARY. WHERE THE COMMISSIONER FINDS  THAT  THE

 S. 7509                             5                            A. 9509
 
 ENHANCED  EXEMPTION  SHOULD  BE REMOVED OR DENIED WITHOUT BEING REPLACED
 WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE  TO  THE
 BASIC  EXEMPTION  HAS  ALSO  BEEN  EXCEEDED, HE OR SHE SHALL PROVIDE THE
 PROPERTY  OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS-
 SIONER EVIDENCE TO THE CONTRARY.  IN EITHER CASE, IF THE OWNERS FAIL  TO
 RESPOND  TO SUCH NOTICE WITHIN FORTY-FIVE DAYS FROM THE MAILING THEREOF,
 OR IF THEIR RESPONSE DOES NOT SHOW TO  THE  COMMISSIONER'S  SATISFACTION
 THAT THE PROPERTY IS ELIGIBLE FOR THE EXEMPTION CLAIMED, THE COMMISSION-
 ER  SHALL  DIRECT THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL
 OF THE ASSESSMENT ROLL OR  TAX  ROLL  TO  EITHER  REPLACE  THE  ENHANCED
 EXEMPTION  WITH  A  BASIC  EXEMPTION,  OR TO REMOVE OR DENY THE ENHANCED
 EXEMPTION WITHOUT REPLACING IT WITH A BASIC EXEMPTION,  AS  APPROPRIATE.
 THE  COMMISSIONER  SHALL  FURTHER DIRECT SUCH PERSON TO CORRECT THE ROLL
 ACCORDINGLY. SUCH A DIRECTIVE SHALL BE  BINDING  UPON  THE  ASSESSOR  OR
 OTHER  PERSON  HAVING  CUSTODY  OR CONTROL OF THE ASSESSMENT ROLL OR TAX
 ROLL, AND SHALL BE IMPLEMENTED BY  SUCH  PERSON  WITHOUT  THE  NEED  FOR
 FURTHER DOCUMENTATION OR APPROVAL.
   (C)  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, NEITHER AN
 ASSESSOR NOR A BOARD OF ASSESSMENT REVIEW HAS THE AUTHORITY TO  CONSIDER
 AN  OBJECTION  TO  THE  REPLACEMENT OR REMOVAL OR DENIAL OF AN EXEMPTION
 PURSUANT TO THIS SUBDIVISION, NOR MAY SUCH AN ACTION BE  REVIEWED  IN  A
 PROCEEDING  TO  REVIEW  AN  ASSESSMENT PURSUANT TO TITLE ONE OR ONE-A OF
 ARTICLE SEVEN OF THIS CHAPTER. SUCH AN ACTION  MAY  ONLY  BE  CHALLENGED
 BEFORE  THE DEPARTMENT.   IF A TAXPAYER IS DISSATISFIED WITH THE DEPART-
 MENT'S FINAL DETERMINATION, THE TAXPAYER MAY APPEAL  THAT  DETERMINATION
 TO THE STATE BOARD OF REAL PROPERTY TAX SERVICES IN A FORM AND MANNER TO
 BE  PRESCRIBED  BY  THE  COMMISSIONER. SUCH APPEAL SHALL BE FILED WITHIN
 FORTY-FIVE DAYS FROM THE ISSUANCE OF  THE  DEPARTMENT'S  FINAL  DETERMI-
 NATION.  IF  DISSATISFIED  WITH  THE  STATE  BOARD'S  DETERMINATION, THE
 TAXPAYER MAY SEEK JUDICIAL REVIEW THEREOF PURSUANT TO  ARTICLE  SEVENTY-
 EIGHT OF THE CIVIL PRACTICE LAW AND RULES.  THE TAXPAYER SHALL OTHERWISE
 HAVE  NO  RIGHT TO CHALLENGE SUCH FINAL DETERMINATION IN A COURT ACTION,
 ADMINISTRATIVE PROCEEDING OR ANY OTHER FORM OF  LEGAL  RECOURSE  AGAINST
 THE  COMMISSIONER,  THE DEPARTMENT, THE STATE BOARD OF REAL PROPERTY TAX
 SERVICES, THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF  THE
 ASSESSMENT ROLL OR TAX ROLL REGARDING SUCH ACTION.
   §  3.  Subparagraphs (v) and (vi) of paragraph (b) of subdivision 4 of
 section 425 of the real property tax law are REPEALED.
   § 4. Paragraphs (b) and (c) of subdivision 5 of  section  425  of  the
 real property tax law are REPEALED.
   § 5. Paragraph (d) of subdivision 5 of section 425 of the real proper-
 ty  tax law, as amended by section 5 of part E of chapter 83 of the laws
 of 2002 and subparagraph (i) 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:
   (d) Third party notice. (i) A senior citizen eligible for the enhanced
 exemption may request that a notice be sent to  an  adult  third  party.
 Such  request shall be made on a form prescribed by the commissioner and
 shall be submitted to the assessor of the assessing unit  in  which  the
 eligible  taxpayer  resides  no  later  than sixty days before the first
 taxable status date to which it is to apply. Such form shall  provide  a
 section  whereby the designated third party shall consent to such desig-
 nation. Such request shall be effective upon receipt  by  the  assessor.
 The  assessor  shall maintain a list of all eligible property owners who
 have requested notices pursuant to this paragraph AND  SHALL  FURNISH  A
 COPY OF SUCH LIST TO THE DEPARTMENT UPON REQUEST.

 S. 7509                             6                            A. 9509
 
   (ii)  [In  the case of a senior citizen who has not elected to partic-
 ipate in the STAR income verification program, a notice shall be sent to
 the designated third party at least thirty days prior  to  each  ensuing
 taxable  status  date;  provided that no such notice need be sent in the
 first  year  if  the  request  was not received by the assessor at least
 sixty days before the applicable taxable status date. Such notice  shall
 read substantially as follows:
   "On  behalf  of (identify senior citizen or citizens), you are advised
 that his, her, or  their  renewal  application  for  the  enhanced  STAR
 exemption  must  be  filed with the assessor no later than (enter date).
 You are encouraged to remind him, her, or them  of  that  fact,  and  to
 offer  assistance  if needed, although you are under no legal obligation
 to do so. Your cooperation and assistance are greatly appreciated."
   (iii) In the case of a senior citizen who has elected  to  participate
 in  the  STAR  income verification program, a] A notice shall be sent to
 the designated third party whenever the assessor OR DEPARTMENT  sends  a
 notice  to  the  senior  citizen  regarding  the possible removal of the
 enhanced STAR exemption.  WHEN  THE  EXEMPTION  IS  SUBJECT  TO  REMOVAL
 BECAUSE  THE  COMMISSIONER  HAS  DETERMINED  THAT THE INCOME ELIGIBILITY
 REQUIREMENT IS NOT SATISFIED, SUCH NOTICE SHALL BE  SENT  TO  THE  THIRD
 PARTY  BY  THE  DEPARTMENT.  WHEN  THE  EXEMPTION  IS SUBJECT TO REMOVAL
 BECAUSE THE ASSESSOR HAS DETERMINED THAT ANY OTHER ELIGIBILITY  REQUIRE-
 MENT  IS  NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD PARTY BY
 THE ASSESSOR. Such notice shall read substantially as follows:
   "On behalf of (identify senior citizen or citizens), you  are  advised
 that  his,  her,  or  their  enhanced STAR exemption is at risk of being
 removed. You are encouraged to make sure that he, she or they are  aware
 of  that fact, and to offer assistance if needed, although you are under
 no legal obligation to do so. Your cooperation and assistance are great-
 ly appreciated."
   [(iv)] (III) The obligation to mail such notices shall  cease  if  the
 eligible  taxpayer  cancels  the  request  or  ceases to qualify for the
 enhanced STAR exemption.
   § 6. Paragraph (c) of subdivision 6 of section 425 of the real proper-
 ty tax law is REPEALED.
   § 7. Subdivision 9-b of section 425 of the real property tax  law,  as
 added by section 8 of part E of chapter 83 of the laws of 2002 and para-
 graph  (b)  as  amended  by  chapter 742 of the laws of 2005 and 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:
   9-b.  Duration  of  exemption; enhanced exemption. (a) [In the case of
 persons who have elected to participate in the STAR income  verification
 program,  the]  THE  enhanced  exemption,  once granted, shall remain in
 effect until discontinued in the manner provided in this section.
   (b) [In the case of persons who have not elected to participate in the
 STAR income verification program, the enhanced exemption shall apply for
 a term of one year. To continue receiving  such  enhanced  exemption,  a
 renewal  application  must  be  filed  annually  with the assessor on or
 before the applicable taxable status date on a form  prescribed  by  the
 commissioner. Provided, however, that if a renewal application is not so
 filed,  the  assessor shall discontinue the enhanced exemption but shall
 grant the basic exemption, subject  to  the  provisions  of  subdivision
 eleven of this section.
   (c)  Whether  or not the recipients of an enhanced STAR exemption have
 elected to participate in the STAR income verification program, the] THE
 assessor [may review their] SHALL REVIEW  THE  continued  compliance  OF

 S. 7509                             7                            A. 9509

 RECIPIENTS  OF  THE ENHANCED EXEMPTION with the applicable ownership and
 residency requirements to the same extent as if they  were  receiving  a
 basic STAR exemption.
   [(d) Notwithstanding the foregoing provisions of this subdivision, the
 enhanced  exemption  shall be continued without a renewal application as
 long as the property continues to be eligible for  the  senior  citizens
 exemption authorized by section four hundred sixty-seven of this title.]
   §  8.  Section 425 of the real property tax law is amended by adding a
 new subdivision 14-a to read as follows:
   14-A. IMPLEMENTATION OF CERTAIN  ELIGIBILITY  DETERMINATIONS.  WHEN  A
 TAXPAYER'S  ELIGIBILITY  FOR  EXEMPTION  UNDER THIS SECTION FOR A SCHOOL
 YEAR IS AFFECTED BY A DETERMINATION MADE IN ACCORDANCE WITH SUBPARAGRAPH
 (IV) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF THIS SECTION  OR  PARAGRAPH
 (C)  OR  (D)  OF  SUBDIVISION FOURTEEN OF THIS SECTION, AND THE DETERMI-
 NATION IS MADE AFTER THE SCHOOL DISTRICT TAXES FOR THAT SCHOOL YEAR HAVE
 BEEN LEVIED, THE PROVISIONS OF THIS SUBDIVISION SHALL BE APPLICABLE.
   (A)  IF  THE  DETERMINATION  RESTORES  OR  INCREASES  THE   TAXPAYER'S
 EXEMPTION  FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO REMIT
 THE EXCESS DIRECTLY TO THE PROPERTY OWNER  UPON  RECEIVING  CONFIRMATION
 THAT  THE TAXPAYER'S ORIGINAL SCHOOL TAX BILL HAS BEEN PAID IN FULL. THE
 AMOUNTS PAYABLE BY THE COMMISSIONER UNDER THIS PARAGRAPH SHALL  BE  PAID
 FROM  THE  ACCOUNT  ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE
 REGISTRANTS PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF  SUBDIVI-
 SION  FOURTEEN  OF  THIS  SECTION.  WHEN THE COMMISSIONER IMPLEMENTS THE
 DETERMINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND
 COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO  CORRECTION  SHALL
 BE  MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO
 REFUND SHALL BE ISSUED 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.
   (B) IF THE DETERMINATION REMOVES, DENIES OR DECREASES  THE  TAXPAYER'S
 EXEMPTION  FOR  THAT  SCHOOL  YEAR,  THE  COMMISSIONER  IS AUTHORIZED TO
 COLLECT THE SHORTFALL DIRECTLY FROM THE OWNERS OF THE PROPERTY, TOGETHER
 WITH INTEREST, BY UTILIZING ANY OF THE PROCEDURES FOR COLLECTION,  LEVY,
 AND  LIEN  OF PERSONAL INCOME TAX SET FORTH IN ARTICLE TWENTY-TWO OF THE
 TAX LAW,  AND  ANY  OTHER  RELEVANT  PROCEDURES  REFERENCED  WITHIN  THE
 PROVISIONS OF SUCH ARTICLE.  WHEN THE COMMISSIONER IMPLEMENTS THE DETER-
 MINATION  IN  THIS  MANNER,  HE  OR SHE SHALL SO NOTIFY THE ASSESSOR AND
 COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO  CORRECTION  SHALL
 BE  MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO
 CORRECTED SCHOOL TAX BILL SHALL BE SENT TO THE TAXPAYER FOR THAT  SCHOOL
 YEAR.
   § 9. Section 171-o of the tax law is REPEALED.
   §  10.  Subparagraph (B) of paragraph 1 of subsection (eee) of section
 606 of the tax law, as amended by section 8 of part A of chapter  73  of
 the laws of 2016, is amended to read as follows:
   (B)  "Affiliated  income"  shall  mean  for purposes of the basic STAR
 credit, the combined income of all of  the  owners  of  the  parcel  who
 resided  primarily  thereon  as  of December thirty-first of the taxable
 year, and of any owners' spouses residing primarily thereon as  of  such
 date,  and for purposes of the enhanced STAR credit, the combined income
 of all of the owners of the parcel as of December  thirty-first  of  the
 taxable  year,  and of any owners' spouses residing primarily thereon as
 of such date; provided that for  both  purposes  the  income  to  be  so
 combined  shall  be  the "adjusted gross income" for the taxable year as
 reported for federal income tax purposes, or that would be  reported  as

 S. 7509                             8                            A. 9509
 
 adjusted gross income if a federal income tax return were required to be
 filed,  reduced  by  distributions,  to  the  extent included in federal
 adjusted gross income, received from an  individual  retirement  account
 and  an  individual retirement annuity.   FOR TAXABLE YEARS BEGINNING ON
 AND AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, WHERE  AN  INCOME-ELIGI-
 BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR
 MORE  INDIVIDUALS  WHO  DID  NOT  FILE  A RETURN PURSUANT TO SECTION SIX
 HUNDRED FIFTY-ONE OF THIS ARTICLE FOR THE APPLICABLE  INCOME  TAX  YEAR,
 THEN  IN  ORDER  TO  BE  ELIGIBLE  FOR  THE  CREDIT  AUTHORIZED  BY THIS
 SUBSECTION, EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE  DEPART-
 MENT  SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME
 TAX YEAR, AND THE AMOUNT  OR  AMOUNTS  THEREOF,  THAT  WOULD  HAVE  BEEN
 REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE
 FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY
 THE  DEPARTMENT,  AND  SHALL BE SUBJECT TO THE PROVISIONS OF SECTION SIX
 HUNDRED NINETY-SEVEN OF THIS ARTICLE TO THE SAME EXTENT  THAT  A  RETURN
 WOULD  BE.  THE DEPARTMENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAIL-
 ABLE FOR THE FILING OF SUCH STATEMENTS. Provided further,  that  if  the
 qualified  taxpayer was an owner of the property during the taxable year
 but did not own it on December thirty-first of the  taxable  year,  then
 the  determination  as  to whether the income of an individual should be
 included in "affiliated income" shall be based upon the ownership and/or
 residency status of that individual as of the first  day  of  the  month
 during which the qualified taxpayer ceased to be an owner of the proper-
 ty, rather than as of December thirty-first of the taxable year.
   §  11.  No application for an enhanced exemption on a final assessment
 roll to be completed in 2019 may be approved if the applicants have  not
 enrolled in the STAR income verification program established by subpara-
 graph  (iv) of paragraph (b) of subdivision 4 of section 425 of the real
 property tax law as amended by section two of this  act,  regardless  of
 when  the  application  was filed. The assessor shall notify such appli-
 cants that participation in that program has become  mandatory  for  all
 applicants  and  that  their applications cannot be approved unless they
 enroll therein.  The commissioner of taxation and finance shall  provide
 a form for assessors to use, at their option, when making this notifica-
 tion.
   § 12. This act shall take effect immediately.
 
                                  PART C
 
   Section  1. Subdivision 1-e of section 333 of the real property law is
 amended by adding two new paragraphs ix and x to read as follows:
   IX. WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF  A  SHARE  OR
 SHARES  IN  A  COOPERATIVE HOUSING CORPORATION, AND SUCH SHARE OR SHARES
 COME WITH A RIGHT TO OCCUPY A UNIT  OR  APARTMENT  LOCATED  IN  PROPERTY
 OWNED BY SUCH CORPORATION, A TRANSFER REPORT MUST BE FILED BY THE TRANS-
 FEREE  OR  TRANSFEREES  DIRECTLY  WITH  THE  DEPARTMENT  OF TAXATION AND
 FINANCE,  REGARDLESS  OF  WHETHER  A  DEED  IS  PREPARED,  DELIVERED  OR
 RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE IMPOSED BY SUBDIVISION
 THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER REPORTS FILED DIRECTLY
 WITH  THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH.
 SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER  OF  TAXA-
 TION  AND  FINANCE, MUST CONTAIN THE INFORMATION REQUIRED TO BE INCLUDED
 BY THIS SUBDIVISION, AND IN ADDITION, MUST SPECIFY THE NUMBER OF  SHARES
 BEING TRANSFERRED OR ACQUIRED. WHEN A REAL ESTATE TRANSFER TAX RETURN IS
 FILED  WITH  SUCH COMMISSIONER PURSUANT TO SECTION FOURTEEN HUNDRED NINE

 S. 7509                             9                            A. 9509
 
 OF THE TAX LAW IN RELATION TO SUCH PROPERTY, THE REPORT REQUIRED BY THIS
 PARAGRAPH SHALL BE FILED CONCURRENTLY THEREWITH, BUT IN NO  EVENT  SHALL
 THE  REPORT  REQUIRED  BY  THIS PARAGRAPH BE DEEMED TO BE A PART OF SUCH
 REAL ESTATE TRANSFER TAX RETURN.
   X.  WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF A CONTROLLING
 INTEREST IN AN ENTITY WITH AN INTEREST  IN  REAL  PROPERTY,  A  TRANSFER
 REPORT  MUST BE FILED BY THE TRANSFEREE OR TRANSFEREES DIRECTLY WITH THE
 DEPARTMENT OF TAXATION AND FINANCE, REGARDLESS  OF  WHETHER  A  DEED  IS
 PREPARED, DELIVERED OR RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE
 IMPOSED BY SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER
 REPORTS  FILED  DIRECTLY  WITH  THE  DEPARTMENT  OF TAXATION AND FINANCE
 PURSUANT TO THIS PARAGRAPH. SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY
 THE COMMISSIONER OF TAXATION AND FINANCE, MUST CONTAIN  THE  INFORMATION
 REQUIRED TO BE INCLUDED BY THIS SUBDIVISION, AND IN ADDITION, MUST SPEC-
 IFY  THE  PERCENTAGE  OF  THE  OWNERSHIP  INTEREST  BEING TRANSFERRED OR
 ACQUIRED. THE TRANSFER REPORT SHALL INDICATE THE PERCENTAGE OF THE TRAN-
 SACTION THAT IS EXEMPT FROM THE REAL  ESTATE  TRANSFER  TAX  AS  A  MERE
 CHANGE  IN  IDENTITY OR FORM OF OWNERSHIP OR ORGANIZATION WHERE THERE IS
 NO CHANGE IN BENEFICIAL OWNERSHIP PURSUANT TO PARAGRAPH SIX OF  SUBDIVI-
 SION  (B) OF SECTION FOURTEEN HUNDRED FIVE OF THE TAX LAW, IF ANY.  WHEN
 A REAL ESTATE TRANSFER TAX RETURN IS FILED WITH SUCH COMMISSIONER PURSU-
 ANT TO SECTION FOURTEEN HUNDRED NINE OF THE TAX LAW IN RELATION TO  SUCH
 PROPERTY,  THE  REPORT REQUIRED BY THIS PARAGRAPH SHALL BE FILED CONCUR-
 RENTLY THEREWITH, BUT IN NO EVENT SHALL  THE  REPORT  REQUIRED  BY  THIS
 PARAGRAPH  BE  DEEMED  TO  BE  A  PART  OF SUCH REAL ESTATE TRANSFER TAX
 RETURN. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "CONTROLLING INTEREST"
 AND "INTEREST IN REAL PROPERTY" SHALL HAVE THE SAME MEANING AS SET FORTH
 IN SECTION FOURTEEN HUNDRED ONE OF THE TAX LAW, PROVIDED, HOWEVER,  THAT
 THE  TERM  "INTEREST  IN REAL PROPERTY" SHALL BE LIMITED TO INTERESTS IN
 REAL PROPERTY SUBJECT TO REAL PROPERTY TAX  ASSESSMENT  SUCH  AS  LANDS,
 BUILDINGS,  STRUCTURES,  AND  OTHER  IMPROVEMENTS, AND SHALL NOT INCLUDE
 DEVELOPMENT RIGHTS, AIR SPACE, OR AIR RIGHTS.
   § 2. This act shall take effect January 1, 2019  and  shall  apply  to
 transfers and acquisitions occurring on and after such date.
 
                                  PART D
 
   Section  1.  Subdivision v of section 233 of the real property law, as
 amended by chapter 566 of the laws  of  1996,  is  amended  to  read  as
 follows:
   v.  1.  On  and  after  April first, nineteen hundred eighty-nine, the
 commissioner of housing and community renewal shall have the  power  and
 duty  to  enforce  and  ensure  compliance  with  the provisions of this
 section. However, the commissioner shall not have the power or  duty  to
 enforce  manufactured  home park rules and regulations established under
 subdivision f of this section.
   2. On or before January  first,  nineteen  hundred  eighty-nine,  each
 manufactured  home  park  owner  or  operator  shall file a registration
 statement with the commissioner and  shall  thereafter  file  an  annual
 registration  statement  on  or  before January first of each succeeding
 year, UP TO AND INCLUDING TWO THOUSAND EIGHTEEN. THEREAFTER, EACH  MANU-
 FACTURED  HOME  PARK OWNER OR OPERATOR SHALL FILE QUARTERLY REGISTRATION
 STATEMENTS WITH THE COMMISSIONER NO LATER THAN TWENTY-ONE DAYS AFTER THE
 END OF EACH CALENDAR QUARTER. The  commissioner,  by  regulation,  shall
 provide  that such registration statement shall include [only] the names
 of all persons owning an interest in the park, the names of all  tenants

 S. 7509                            10                            A. 9509
 
 of the park, all services provided by the park owner to the tenants, and
 SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL PRESCRIBE BY REGULATION
 AFTER  CONSULTATION  WITH  THE  COMMISSIONER  OF  TAXATION  AND FINANCE;
 PROVIDED  THAT  IN  THE  CASE  OF A REGISTRATION STATEMENT FOR THE FIRST
 CALENDAR QUARTER OF A YEAR, SUCH STATEMENT SHALL ALSO INCLUDE a copy  of
 all  current  manufactured  home park rules and regulations. THE COMMIS-
 SIONER SHALL PROVIDE THE COMMISSIONER OF TAXATION  AND  FINANCE  WITH  A
 COMPLETE  COPY OF EACH QUARTERLY REPORT NO LATER THAN FIFTEEN DAYS AFTER
 THE RECEIPT THEREOF.
   3. Whenever there shall be a violation of this section, an application
 may be made by the commissioner of housing and community renewal in  the
 name of the people of the state of New York to a court or justice having
 jurisdiction  by  a  special proceeding to issue an injunction, and upon
 notice to the defendant of not  less  than  five  days,  to  enjoin  and
 restrain  the  continuance  of such violation; and if it shall appear to
 the satisfaction of the court or justice  that  the  defendant  has,  in
 fact,  violated  this section, an injunction may be issued by such court
 or justice, enjoining and restraining any  further  violation  and  with
 respect  to  this  subdivision,  directing  the filing of a registration
 statement. In any such proceeding, the court may make allowances to  the
 commissioner of housing and community renewal of a sum not exceeding two
 thousand  dollars against each defendant, and direct restitution.  When-
 ever the court shall determine that a  violation  of  this  section  has
 occurred,  the  court  may  impose  a civil penalty of not more than one
 thousand five hundred dollars for each violation. Such penalty shall  be
 deposited in the manufactured home cooperative fund, created pursuant to
 section  fifty-nine-h  of the private housing finance law. In connection
 with any such proposed application,  the  commissioner  of  housing  and
 community  renewal  is authorized to take proof and make a determination
 of the relevant facts and to issue  subpoenas  in  accordance  with  the
 civil  practice  law and rules. The provisions of this subdivision shall
 not impair the rights granted under subdivision u of this section.
   § 2. This act shall take effect immediately.
 
                                  PART E
 
   Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED.
   § 1-a. Section 3-d of the general municipal law is REPEALED.
   § 1-b. Section 2023-b of the education law is REPEALED.
   § 2. The general municipal law is amended by adding a new section  3-d
 to read as follows:
   §  3-D.  CERTIFICATION  OF COMPLIANCE WITH TAX LEVY LIMIT. 1. UPON THE
 ADOPTION OF THE BUDGET OF A LOCAL GOVERNMENT UNIT, THE  CHIEF  EXECUTIVE
 OFFICER OR BUDGET OFFICER OF SUCH LOCAL GOVERNMENT UNIT SHALL CERTIFY TO
 THE  STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE THAT
 THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT  PRESCRIBED  IN
 SECTION  THREE-C OF THIS ARTICLE AND, IF THE GOVERNING BODY OF THE LOCAL
 GOVERNMENT UNIT DID ENACT A LOCAL LAW OR APPROVE A RESOLUTION  TO  OVER-
 RIDE  THE  TAX  LEVY LIMIT, THAT SUCH LOCAL LAW OR RESOLUTION WAS SUBSE-
 QUENTLY REPEALED. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND  MANNER
 PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSION-
 ER OF TAXATION AND FINANCE.
   2.  NOTWITHSTANDING  ANY  OTHER LAW TO THE CONTRARY, IF SUCH A CERTIF-
 ICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF  THE  LOCAL  GOVERNMENT
 UNIT  EXCEEDS  THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT SHALL BE
 PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY  SUBDIVISION  SIX

 S. 7509                            11                            A. 9509
 
 OF  SECTION THREE-C OF THIS ARTICLE, EVEN IF A TAX LEVY IN EXCESS OF THE
 TAX LEVY LIMIT HAD BEEN AUTHORIZED FOR THE APPLICABLE FISCAL YEAR  BY  A
 DULY ADOPTED LOCAL LAW OR RESOLUTION.
   3.  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, EVERY LOCAL
 GOVERNMENT UNIT SHALL REPORT BOTH ITS PROPOSED BUDGET  AND  ITS  ADOPTED
 BUDGET  TO  THE  OFFICE  OF THE STATE COMPTROLLER AT THE TIME AND IN THE
 MANNER AS HE OR SHE MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET  HAS  BEEN
 OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION.
   §  3.  The  education law is amended by adding a new section 2023-b to
 read as follows:
   § 2023-B. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT.  1.    UPON
 THE  ADOPTION  OF  THE  BUDGET OF AN ELIGIBLE SCHOOL DISTRICT, THE CHIEF
 EXECUTIVE OFFICER OF SUCH SCHOOL DISTRICT SHALL  CERTIFY  TO  THE  STATE
 COMPTROLLER,  THE  COMMISSIONER  OF TAXATION AND FINANCE AND THE COMMIS-
 SIONER THAT THE BUDGET SO ADOPTED DOES NOT EXCEED  THE  TAX  LEVY  LIMIT
 PRESCRIBED  BY  SECTION  TWO THOUSAND TWENTY-THREE-A OF THIS PART.  SUCH
 CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE
 COMPTROLLER IN  CONSULTATION  WITH  THE  COMMISSIONER  OF  TAXATION  AND
 FINANCE AND THE COMMISSIONER.
   2.  IF  SUCH  A CERTIFICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF
 THE SCHOOL DISTRICT EXCEEDS THE APPLICABLE TAX LEVY  LIMIT,  THE  EXCESS
 AMOUNT  SHALL  BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY
 SUBDIVISION FIVE OF SECTION TWO THOUSAND TWENTY-THREE-A  OF  THIS  PART,
 EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN DULY AUTHOR-
 IZED FOR THE APPLICABLE FISCAL YEAR BY THE SCHOOL DISTRICT VOTERS.
   3.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY SCHOOL
 DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN-
 TY-THREE-A OF THIS PART SHALL REPORT BOTH ITS PROPOSED  BUDGET  AND  ITS
 ADOPTED  BUDGET  TO  THE OFFICE OF THE STATE COMPTROLLER AND THE COMMIS-
 SIONER AT THE TIME AND IN THE MANNER AS THEY MAY PRESCRIBE,  WHETHER  OR
 NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDI-
 VISION.
   §  4.  Subdivision  3  of  section 97-rrr of the state finance law, as
 amended by section 1 of part F of chapter 59 of the  laws  of  2015,  is
 amended to read as follows:
   3.  The  monies in such fund shall be appropriated for school property
 tax exemptions granted pursuant to the real property tax law and payable
 pursuant to section thirty-six hundred nine-e of the education law[, and
 for payments to the city of New York pursuant to section fifty-four-f of
 this chapter].
   § 5. Section 925-b of the real property tax law, as amended by chapter
 161 of the laws of 2006, is amended to read as follows:
   § 925-b. Extension; certain persons sixty-five years of age  or  over.
 Notwithstanding  any contrary provision of this chapter, or any general,
 special or local law, code or charter, the governing body of a municipal
 corporation other than a county may, by resolution adopted prior to  the
 levy  of any taxes on real property located within such municipal corpo-
 ration, authorize an extension of no more than five  business  days  for
 the payment of taxes without interest or penalty to any resident of such
 municipal corporation who has received an exemption pursuant to subdivi-
 sion four of section four hundred twenty-five or four hundred sixty-sev-
 en  of this chapter, OR A CREDIT PURSUANT TO SUBSECTION (EEE) OF SECTION
 SIX HUNDRED SIX OF THE TAX LAW, related to a principal residence located
 within such municipal corporation. If such an extension is granted,  and
 any  taxes are not paid by the final date so provided, those taxes shall

 S. 7509                            12                            A. 9509
 
 be subject to the same interest and penalties that would have applied if
 no extension had been granted.
   § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop-
 erty  tax law is relettered paragraph (f) and two new paragraphs (d) and
 (e) are added to read as follows:
   (D) IF THE TAXES OF A CITY,  TOWN,  VILLAGE  OR  SCHOOL  DISTRICT  ARE
 COLLECTED BY A COUNTY OFFICIAL, THE COUNTY SHALL HAVE THE SOLE AUTHORITY
 TO  ESTABLISH  A  PARTIAL  PAYMENT PROGRAM PURSUANT TO THIS SECTION WITH
 RESPECT TO THE TAXES SO COLLECTED.
   (E) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT  ARE  NOT
 COLLECTED  BY  A  COUNTY OFFICIAL, BUT ITS TAX BILLS ARE PREPARED BY THE
 COUNTY, OR ITS TAX COLLECTION ACCOUNTING SOFTWARE  IS  PROVIDED  BY  THE
 COUNTY,  THEN  BEFORE  THE  CITY,  TOWN,  VILLAGE OR SCHOOL DISTRICT MAY
 IMPLEMENT A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS  SECTION,  IT  MUST
 OBTAIN  WRITTEN APPROVAL OF THE CHIEF EXECUTIVE OFFICER OF THE COUNTY OR
 THE COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES.
   § 7. Subparagraph (B) of paragraph 7 of subsection  (eee)  of  section
 606  of  the tax law, as amended by section 1 of part G of chapter 59 of
 the laws of 2017, is amended to read as follows:
   (B) Notwithstanding any provision of law to the  contrary,  the  names
 and  addresses  of individuals who have applied for or are receiving the
 credit authorized by this  subsection  may  be  disclosed  to  assessors
 [and], county directors of real property tax services, AND MUNICIPAL TAX
 COLLECTING OFFICERS. In addition, where an agreement is in place between
 the  commissioner  and  the head of the tax department of another state,
 such information may be disclosed to such official or his or her  desig-
 nees. Such information shall be considered confidential and shall not be
 subject to further disclosure pursuant to the freedom of information law
 or otherwise.
   § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop-
 erty tax law, as added by section 1 of part B of chapter 389 of the laws
 of 1997 and as further amended by subdivision (b) of section 1 of part W
 of chapter 56 of the laws of 2010, is amended to read as follows:
   (g)  Computation  and  certification  by commissioner. It shall be the
 responsibility of the commissioner to compute the exempt amount for each
 assessing unit in each county in the  manner  provided  herein,  and  to
 certify the same to the assessor of each assessing unit and to the coun-
 ty  director  of real property tax services of each county. Such certif-
 ication shall be  made  at  least  twenty  days  before  the  last  date
 prescribed  by  law  for  the  filing  of the tentative assessment roll.
 PROVIDED, HOWEVER, THAT WHERE SCHOOL TAXES ARE LEVIED ON  A  PRIOR  YEAR
 ASSESSMENT  ROLL, OR ON A FINAL ASSESSMENT ROLL THAT WAS FILED MORE THAN
 ONE YEAR AFTER THE TENTATIVE ROLL WAS FILED, SUCH CERTIFICATION SHALL BE
 MADE NO LATER THAN FIFTEEN DAYS AFTER THE PUBLICATION OF THE DATA NEEDED
 TO COMPUTE THE BASE FIGURE FOR THE ENHANCED STAR EXEMPTION  PURSUANT  TO
 CLAUSE  (A)  OF  SUBPARAGRAPH (VI) OF PARAGRAPH (B) OF THIS SUBDIVISION,
 AND PROVIDED FURTHER, THAT  UPON  RECEIPT  OF  SUCH  CERTIFICATION,  THE
 ASSESSOR  SHALL  THEREUPON  BE  AUTHORIZED  AND  DIRECTED TO CORRECT THE
 ASSESSMENT ROLL TO REFLECT THE EXEMPT AMOUNT SO CERTIFIED, OR, IF ANOTH-
 ER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT  THAT
 PERSON TO MAKE THE APPROPRIATE CORRECTIONS.
   §  8. Paragraph 6 of subsection (eee) of section 606 of the tax law is
 amended by adding a new subparagraph (A) to read as follows:
   (A) A MARRIED COUPLE  MAY  NOT  RECEIVE  A  CREDIT  PURSUANT  TO  THIS
 SUBSECTION  ON  MORE  THAN  ONE RESIDENCE DURING ANY GIVEN TAXABLE YEAR,
 UNLESS LIVING APART DUE TO LEGAL SEPARATION. NOR MAY  A  MARRIED  COUPLE

 S. 7509                            13                            A. 9509
 
 RECEIVE  A  CREDIT  PURSUANT  TO  THIS SUBSECTION ON ONE RESIDENCE WHILE
 RECEIVING AN EXEMPTION PURSUANT TO SECTION FOUR HUNDRED  TWENTY-FIVE  OF
 THE  REAL PROPERTY TAX LAW ON ANOTHER RESIDENCE, UNLESS LIVING APART DUE
 TO LEGAL SEPARATION.
   §  9.  This act shall take effect immediately; provided, however, that
 section 3-d of the general municipal law, as added  by  section  two  of
 this  act,  shall  expire and be deemed repealed on the same date and in
 the same manner as section 1 of part A of chapter  97  of  the  laws  of
 2011,  expires  and is deemed repealed, and provided that section 2023-b
 of the education law, as added by  section  three  of  this  act,  shall
 expire and be deemed repealed on the same date and in the same manner as
 section  2  of  part A of chapter 97 of the laws of 2011, expires and is
 deemed repealed, and provided further that the amendments to paragraph 6
 of subsection (eee) of section 606 of the tax law made by section  eight
 of  this  act  shall  take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2016.
   REPEAL NOTE: Section 606(bbb) of the  Tax  Law,  section  3-d  of  the
 General  Municipal  Law  and section 2023-b of the Education Law collec-
 tively constituted the enabling legislation for the  tax  freeze  credit
 program.  By the terms of those statutes, the tax freeze credit was only
 applicable  to  taxable  years  2014,  2015  and  2016. Therefore, these
 provisions  no  longer  serve  a  purpose,  except  for  the   reporting
 provisions,  which  facilitate  the administration of the tax levy limit
 program and are being preserved in a reenacted section 3-d of the Gener-
 al Municipal Law and section 2023-b of the Education Law.
 
                                  PART F
 
   Section 1. Subdivision 1 of section 544 of the real property tax  law,
 as  amended  by  chapter  18  of  the laws of 2008, is amended and a new
 subdivision 3 is added to read as follows:
   1. The comptroller shall pay taxes levied on lands  of  the  state  in
 each  county  pursuant  to  the foregoing sections of this title, out of
 moneys appropriated by the legislature therefor, to the county treasurer
 for appropriate distribution upon submission  of  a  statement  of  such
 taxes  by  him  or  her  in such form and executed in such manner by the
 county treasurer as may be required by the comptroller. Provided, howev-
 er, that in the case of lands which are taxable pursuant to  subdivision
 (j)  of  section  five hundred thirty-two of this title, the comptroller
 shall pay such taxes. Such payment shall  be  requested,  processed  and
 paid  separately  from  all  other  taxes that are payable to the county
 treasurer pursuant to this section.  PROVIDED FURTHER, THAT ON AND AFTER
 APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA-
 BLE PARCEL OF STATE LAND PURSUANT TO THIS  SUBDIVISION,  THE  AMOUNT  OF
 TAXES  DUE  AND PAYABLE ON THAT PARCEL THEREAFTER SHALL BE CALCULATED BY
 THE COMPTROLLER IN ACCORDANCE WITH THE PROVISIONS OF  SUBDIVISION  THREE
 OF THIS SECTION.
   3.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ON AND AFTER
 APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA-
 BLE PARCEL OF STATE LAND PURSUANT TO SUBDIVISION ONE  OF  THIS  SECTION,
 THE  COMPTROLLER SHALL THEREAFTER CALCULATE THE TAXES DUE AND PAYABLE ON
 THAT PARCEL AS FOLLOWS:
   (A) IN THE CASE OF A LOCAL GOVERNMENT,  THE  TAXES  SO  PAYABLE  SHALL
 EQUAL  THE  TAXES  THAT  WERE PAYABLE ON THAT PARCEL IN THE PRIOR FISCAL
 YEAR OF THE LOCAL GOVERNMENT MULTIPLIED BY  THE  ALLOWABLE  LEVY  GROWTH
 FACTOR.  AS USED IN THIS PARAGRAPH, THE TERMS "LOCAL GOVERNMENT," "PRIOR

 S. 7509                            14                            A. 9509
 
 FISCAL YEAR" AND "ALLOWABLE LEVY GROWTH  FACTOR"  SHALL  HAVE  THE  SAME
 MEANINGS  AS  SET FORTH IN SECTION THREE-C OF THE GENERAL MUNICIPAL LAW,
 PROVIDED THAT IF SUCH SECTION IS NO LONGER IN EFFECT ON  THE  DATE  SUCH
 TAXES  ARE  PAID,  SUCH  TERMS  SHALL BE DEEMED TO HAVE THE MEANINGS SET
 FORTH IN SUCH SECTION AS IT READ ON THE LAST DATE ON  WHICH  IT  WAS  IN
 EFFECT.
   (B) IN THE CASE OF A SCHOOL DISTRICT, THE TAXES SO PAYABLE SHALL EQUAL
 THE  TAXES  THAT WERE PAYABLE ON THAT PARCEL IN THE PRIOR SCHOOL YEAR OF
 THE SCHOOL DISTRICT MULTIPLIED BY THE ALLOWABLE LEVY GROWTH  FACTOR.  AS
 USED IN THIS PARAGRAPH, THE TERMS "SCHOOL DISTRICT," "PRIOR SCHOOL YEAR"
 AND  "ALLOWABLE  LEVY GROWTH FACTOR" SHALL HAVE THE SAME MEANINGS AS SET
 FORTH IN SECTION TWO  THOUSAND  TWENTY-THREE-A  OF  THE  EDUCATION  LAW,
 PROVIDED  THAT  IF  SUCH SECTION IS NO LONGER IN EFFECT ON THE DATE SUCH
 TAXES ARE PAID, SUCH TERMS SHALL BE DEEMED  TO  HAVE  THE  MEANINGS  SET
 FORTH  IN  SUCH  SECTION  AS IT READ ON THE LAST DATE ON WHICH IT WAS IN
 EFFECT.
   (C) ON OR BEFORE JULY FIRST OF EACH YEAR, THE COMPTROLLER SHALL CALCU-
 LATE THE AMOUNTS OF TAXES THAT ARE DUE AND PAYABLE ON TAXABLE STATE LAND
 PURSUANT TO THIS SUBDIVISION, AND SHALL NOTIFY THE COMMISSIONER  OF  THE
 AMOUNTS  SO  CALCULATED.  THE COMMISSIONER SHALL THEREUPON TRANSMIT THAT
 INFORMATION TO THE AFFECTED LOCAL GOVERNMENTS AND SCHOOL DISTRICTS.  THE
 TAXES DUE ON SUCH LANDS SHALL BE PAID BY THE COMPTROLLER IN  THE  MANNER
 PROVIDED BY SUBDIVISION ONE OF THIS SECTION.
   (D)  THE  FOLLOWING  PROVISIONS  SHALL  APPLY  TO STATE LANDS THAT ARE
 SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION:
   (I) SUCH LANDS SHALL NOT BE INCLUDED ON THE  LISTS  OF  TAXABLE  STATE
 LANDS THAT MUST BE SUPPLIED BY THE COMMISSIONER PURSUANT TO SECTION FIVE
 HUNDRED FORTY OF THIS TITLE.
   (II)  THE  ASSESSMENTS  OF  SUCH  LANDS  SHALL  NOT BE REPORTED TO THE
 COMMISSIONER PURSUANT TO SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE.
   (III) THE ASSESSMENTS OF SUCH  LANDS  SHALL  NOT  BE  SUBJECT  TO  THE
 APPROVAL  OF THE COMMISSIONER PURSUANT TO SUCH SECTION, AND SHALL NOT BE
 TAKEN INTO ACCOUNT IN THE CALCULATION OF THE TAXES DUE ON SUCH LANDS.
   (IV) SUCH LANDS SHALL BE ENTERED ON THE EXEMPT PORTION OF THE  ASSESS-
 MENT  ROLL,  NOTWITHSTANDING  THE FACT THAT THEY ARE TAXABLE PURSUANT TO
 THIS TITLE. PROVIDED, THAT NO SUCH ENTRY SHALL BE MADE IN THE CASE OF AN
 ASSESSMENT ADJUSTMENT MADE BY THE COMMISSIONER PURSUANT TO PARAGRAPH (C)
 OF SUBDIVISION THREE OF SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE  OR
 SECTION 15-2115 OF THE ENVIRONMENTAL CONSERVATION LAW, OR IN THE CASE OF
 STATE  AID  PAYABLE  PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF THIS
 TITLE DUE TO A REDUCTION IN THE ASSESSMENT OF TAXABLE STATE LAND.
   (V) SUCH LANDS SHALL BE DISREGARDED WHEN CALCULATING  STATE  EQUALIZA-
 TION RATES AND TAX RATES.
   (VI)  WHEN A SCHOOL DISTRICT RECEIVES PAYMENTS OF TAXES ON STATE LANDS
 PURSUANT TO THIS SUBDIVISION, ANY ACTUAL  VALUATION  COMPUTED  FOR  SUCH
 SCHOOL  DISTRICT  PURSUANT  TO PARAGRAPH C OF SUBDIVISION ONE OF SECTION
 THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW  SHALL  INCLUDE  THE  ACTUAL
 VALUATION EQUIVALENT OF THOSE PAYMENTS. THE COMMISSIONER SHALL DETERMINE
 SUCH  ACTUAL  VALUATION  EQUIVALENT  BY  DIVIDING  THE  PAYMENT MADE, AS
 REPORTED TO SUCH COMMISSIONER BY THE COMPTROLLER, BY THE SCHOOL TAX RATE
 THAT WAS APPLIED TO REAL PROPERTY ON THAT YEAR'S ASSESSMENT ROLL OR,  IF
 APPLICABLE,  THE  SPECIAL  APPORTIONMENT  RATE  DETERMINED  PURSUANT  TO
 SECTION TWELVE HUNDRED TWENTY-SEVEN OF THIS CHAPTER  AND  DIVIDING  SUCH
 RESULT  BY  THE  FINAL STATE EQUALIZATION RATE FOR THAT ROLL. THE ACTUAL
 VALUATION EQUIVALENT SHALL BE REPORTED TO THE STATE COMPTROLLER AND  THE
 COMMISSIONER  OF  EDUCATION,  AND  SHALL  BE USED BY THE COMMISSIONER OF

 S. 7509                            15                            A. 9509
 
 EDUCATION IN THE DETERMINATION OF ANY STATE AVERAGE THAT USES REAL PROP-
 ERTY TAXES LEVIED AGAINST AND/OR ACTUAL VALUATION BASED UPON THE  CORRE-
 SPONDING  ASSESSMENT  ROLL.  EACH  SCHOOL DISTRICT RECEIVING PAYMENTS OF
 TAXES  ON STATE LANDS PURSUANT TO THIS SUBDIVISION SHALL ANNUALLY REPORT
 THOSE PAYMENTS TO THE COMMISSIONER OF EDUCATION,  WITH  A  COPY  TO  THE
 COMMISSIONER,  AS  A  CONDITION TO RECEIVING ANY AID PURSUANT TO SECTION
 THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW.
   (E) THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO THE  PAYMENT
 OF  STATE  AID PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF THIS TITLE
 IN RELATION TO PROPERTY THAT HAS BECOME EXEMPT FROM TAXATION DUE TO  ITS
 ACQUISITION BY THE STATE OR AN AGENCY OF THE STATE.
   § 2. This act shall take effect immediately.
 
                                  PART G
 
   Section  1. Section 4 of chapter 475 of the laws of 2013, amending the
 real property tax law relating to assessment ceilings for  local  public
 utility mass real property, is amended to read as follows:
   §  4. This act shall take effect on the first of January of the second
 calendar year commencing after this act shall  have  become  a  law  and
 shall  apply  to  assessment rolls with taxable status dates on or after
 such date; provided, however, that this act shall expire and  be  deemed
 repealed  [four]  EIGHT  years  after such effective date; and provided,
 further, that no assessment of local public utility mass  real  property
 appearing  on  the  municipal assessment roll with a taxable status date
 occurring in the first calendar year after this act shall have become  a
 law  shall  be  less  than  ninety  percent or more than one hundred ten
 percent of the assessment of the same property  on  the  date  this  act
 shall have become a law.
   §  2.  Subdivision 3 of section 499-kkkk of the real property tax law,
 as added by chapter 475 of the laws of  2013,  is  amended  to  read  as
 follows:
   3.  (A)  For assessment rolls with taxable status dates in each of the
 three calendar years including and following  the  year  in  which  this
 section  shall  take effect, the commissioner shall establish no assess-
 ment ceiling that is less than ninety percent or more than  one  hundred
 ten  percent  of  the  assessment of such local public utility mass real
 property appearing on the  municipal  assessment  roll  with  a  taxable
 status  date  occurring  in the second preceding calendar year from when
 this section shall take effect, except that the commissioner may  estab-
 lish assessment ceilings below the ninety percent level or above the one
 hundred  ten  percent  level to take into account any change in level of
 assessment and/or to take into account any additions or  retirements  to
 public  utility  mass real property or litigation affecting the value or
 taxable status of the local public utility mass real property  initiated
 prior to the effective date of this section.
   (B)  FOR  ASSESSMENT  ROLLS WITH TAXABLE STATUS DATES IN THE YEARS TWO
 THOUSAND EIGHTEEN, TWO THOUSAND NINETEEN AND TWO  THOUSAND  TWENTY,  THE
 COMMISSIONER  SHALL  ESTABLISH  NO  ASSESSMENT CEILING THAT IS BELOW THE
 LOWER LIMIT OR ABOVE THE UPPER LIMIT SPECIFIED IN THIS PARAGRAPH, EXCEPT
 THAT THE COMMISSIONER MAY ESTABLISH ASSESSMENT CEILINGS BELOW SUCH LOWER
 LIMIT OR ABOVE SUCH UPPER LIMIT TO TAKE INTO ACCOUNT ANY CHANGE IN LEVEL
 OF ASSESSMENT AND/OR TO TAKE INTO ACCOUNT ANY ADDITIONS  OR  RETIREMENTS
 TO  PUBLIC  UTILITY MASS REAL PROPERTY OR LITIGATION AFFECTING THE VALUE
 OR TAXABLE STATUS OF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY  INITI-
 ATED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.

 S. 7509                            16                            A. 9509

   (I)  FOR  ASSESSMENT  ROLLS  WITH TAXABLE STATUS DATES IN TWO THOUSAND
 EIGHTEEN, THE ASSESSMENT CEILING SHALL NOT  BE  LESS  THAN  SEVENTY-FIVE
 PERCENT  OR  MORE THAN ONE HUNDRED TWENTY-FIVE PERCENT OF THE ASSESSMENT
 OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI-
 PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO
 THOUSAND FOURTEEN.
   (II)  FOR  ASSESSMENT  ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND
 NINETEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN FIFTY PERCENT OR
 MORE THAN ONE HUNDRED FIFTY PERCENT OF  THE  ASSESSMENT  OF  SUCH  LOCAL
 PUBLIC  UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICIPAL ASSESSMENT
 ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND FOUR-
 TEEN.
   (III) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN  TWO  THOUSAND
 TWENTY,  THE  ASSESSMENT  CEILING  SHALL  NOT  BE  LESS THAN TWENTY-FIVE
 PERCENT OR MORE THAN ONE HUNDRED SEVENTY-FIVE PERCENT OF THE  ASSESSMENT
 OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI-
 PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO
 THOUSAND FOURTEEN.
   §  3.  This act shall take effect immediately, provided, however, that
 the amendments to subdivision three of  section  499-kkkk  of  the  real
 property  tax  law  made by section two of this act shall not affect the
 repeal of such section and shall be deemed to be repealed therewith.
 
                                  PART H

   Section 1. Subsection (c) of section 683 of the tax law is amended  by
 adding a new paragraph 12 to read as follows:
   (12)   EXCEPT  AS  OTHERWISE  PROVIDED  IN  PARAGRAPH  THREE  OF  THIS
 SUBSECTION, OR AS OTHERWISE PROVIDED IN  THIS  SECTION  WHERE  A  LONGER
 PERIOD  OF  TIME  MAY  APPLY,  IF A TAXPAYER FILES AN AMENDED RETURN, AN
 ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON  THE  FILING  OF
 THE  AMENDED  RETURN),  INCLUDING  RECOVERY OF A PREVIOUSLY PAID REFUND,
 ATTRIBUTABLE TO A CHANGE OR CORRECTION ON  THE  AMENDED  RETURN  FROM  A
 PRIOR  RETURN  MAY  BE  MADE  AT  ANY TIME WITHIN THREE YEARS AFTER SUCH
 AMENDED RETURN IS FILED.
   § 2. Subsection (c) of section 1083 of  the  tax  law  is  amended  by
 adding a new paragraph 12 to read as follows:
   (12)   EXCEPT  AS  OTHERWISE  PROVIDED  IN  PARAGRAPH  THREE  OF  THIS
 SUBSECTION, OR AS OTHERWISE PROVIDED IN  THIS  SECTION  WHERE  A  LONGER
 PERIOD  OF  TIME  MAY  APPLY,  IF A TAXPAYER FILES AN AMENDED RETURN, AN
 ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON  THE  FILING  OF
 THE  AMENDED  RETURN),  INCLUDING  RECOVERY OF A PREVIOUSLY PAID REFUND,
 ATTRIBUTABLE TO A CHANGE OR CORRECTION ON  THE  AMENDED  RETURN  FROM  A
 PRIOR  RETURN  MAY  BE  MADE  AT  ANY TIME WITHIN THREE YEARS AFTER SUCH
 AMENDED RETURN IS FILED.
   § 3. Subdivision (c) of section 11-1783 of the administrative code  of
 the  city  of New York is amended by adding a new paragraph 9 to read as
 follows:
   (9) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF  THIS  SUBDIVI-
 SION,  OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF
 TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT  OF
 TAX  (IF  NOT  DEEMED  TO  HAVE BEEN MADE UPON THE FILING OF THE AMENDED
 RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO
 A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY  BE
 MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED.

 S. 7509                            17                            A. 9509
 
   § 4. This act shall take effect immediately and shall apply to amended
 returns filed on or after the effective date of this act.
 
                                  PART I
 
   Section  1.  Paragraph  1 of subdivision (d) of section 658 of the tax
 law, as amended by chapter 166 of the laws of 1991, is amended  to  read
 as follows:
   (1) The commissioner of taxation and finance may prescribe regulations
 and  instructions  requiring returns of information to be made and filed
 on or before February twenty-eighth of each year as to  the  payment  or
 crediting in any calendar year of amounts of six hundred dollars or more
 to  any taxpayer under this article. Such returns may be required of any
 person, including lessees or mortgagors of real  or  personal  property,
 fiduciaries, employers, and all officers and employees of this state, or
 of  any  municipal  corporation  or political subdivision of this state,
 having the control, receipt, custody, disposal or payment  of  interest,
 rents,  salaries,  wages,  premiums, annuities, compensations, remunera-
 tions, emoluments or other  fixed  or  determinable  gains,  profits  or
 income,  except interest coupons payable to bearer. Information required
 to be furnished pursuant to paragraph four of subsection (a) of  section
 six  hundred  seventy-four  on a quarterly combined withholding and wage
 reporting return covering [the last] EACH calendar quarter of each  year
 and relating to tax withheld on wages paid by an employer to an employee
 for [the full] EACH calendar [year] QUARTER, shall constitute the return
 of  information  required  to be made under this section with respect to
 such wages.
   § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section  674
 of the tax law, as amended by section 1 of subpart E of part VI of chap-
 ter 57 of the laws of 2009, is amended to read as follows:
   (A)  All  employers  described  in  paragraph one of subsection (a) of
 section six hundred seventy-one of  this  part,  including  those  whose
 wages paid are not sufficient to require the withholding of tax from the
 wages  of  any of their employees, all employers required to provide the
 wage reporting information for the employees  described  in  subdivision
 one  of  section  one  hundred  seventy-one-a  of  this chapter, and all
 employers  liable  for  unemployment  insurance  contributions  or   for
 payments  in  lieu of such contributions pursuant to article eighteen of
 the labor law, shall file a quarterly combined withholding, wage report-
 ing and unemployment insurance return detailing the  preceding  calendar
 quarter's  withholding  tax  transactions, such quarter's wage reporting
 information, SUCH QUARTER'S WITHHOLDING RECONCILIATION INFORMATION, such
 quarter's unemployment insurance contributions, and such  other  related
 information  as  the commissioner of taxation and finance or the commis-
 sioner of labor, as applicable, may prescribe. [In addition, the  return
 covering the last calendar quarter of each year shall also include with-
 holding reconciliation information for such calendar year.] Such returns
 shall  be  filed  no  later than the last day of the month following the
 last day of each calendar quarter.
   § 3. Paragraph 3 of subsection (v) of section 685 of the tax  law,  as
 amended  by  chapter  477  of  the  laws  of 1998, 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 [annual] QUARTERLY withholding  information
 relating  to  individual  employees on a quarterly combined withholding,

 S. 7509                            18                            A. 9509
 
 wage reporting and unemployment insurance  return  covering  [the  last]
 EACH calendar quarter 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 dollars multiplied
 by the number of employees for whom such information  is  incomplete  or
 incorrect;  provided,  however,  that  if  the  number of such employees
 cannot be determined  from  the  quarterly  combined  withholding,  wage
 reporting  and  unemployment  insurance  return,  the  commissioner  may
 utilize any information 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 [the last] EACH calen-
 dar quarter of a year shall not exceed ten thousand dollars.
   § 4. This act shall take effect immediately and shall apply to  calen-
 dar quarters beginning on or after January 1, 2019.
 
                                  PART J
 
   Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax
 law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as
 amended  by  section 1 of part DD of chapter 407 of the laws of 1999, is
 amended to read as follows:
   (i) The receipts from every sale, OTHER  THAN  SALES  FOR  RESALE,  of
 beer,  wine  or  other  alcoholic  beverages  or  any other drink of any
 nature, or from every sale, OTHER THAN SALES FOR  RESALE,  of  food  and
 drink  of  any  nature or of food alone, when sold in or by restaurants,
 taverns or other establishments in this state, or by caterers, including
 in the amount of such receipts  any  cover,  minimum,  entertainment  or
 other  charge  made to patrons or customers (except those receipts taxed
 pursuant to subdivision (f) of this section):
   (1) in all instances where the sale is for consumption on the premises
 where sold;
   (2) in those instances where the vendor or any person  whose  services
 are  arranged for by the vendor, after the delivery of the food or drink
 by or on behalf of the vendor for consumption off the  premises  of  the
 vendor,  serves  or  assists  in serving, cooks, heats or provides other
 services with respect to the food or drink; and
   (3) in those instances where  the  sale  is  made  through  a  vending
 machine that is activated by use of coin, currency, credit card or debit
 card  (except  the  sale of drinks in a heated state made through such a
 vending machine) or is for consumption off the premises of  the  vendor,
 except  where food (other than sandwiches) or drink or both are (A) sold
 in an unheated state and, (B) are of a type commonly sold  for  consump-
 tion off the premises and in the same form and condition, quantities and
 packaging,  in  establishments  which  are  food stores other than those
 principally engaged in selling foods prepared and ready to be eaten.
   § 2. This act shall take effect June 1, 2018 and shall apply to  sales
 made on and after such date.
 
                                  PART K
 
   Section  1.  The  tax  law is amended by adding a new section 171-z to
 read as follows:
   § 171-Z. INFORMATION SHARING WITH THE COMPTROLLER REGARDING  UNCLAIMED
 FUNDS.  1. NOTWITHSTANDING ANY OTHER LAW, THE COMMISSIONER IS AUTHORIZED
 TO RELEASE TO THE COMPTROLLER  INFORMATION  REGARDING  FIXED  AND  FINAL
 UNWARRANTED  DEBTS  OF  TAXPAYERS  FOR  PURPOSES OF COLLECTING UNCLAIMED

 S. 7509                            19                            A. 9509
 
 FUNDS FROM THE COMPTROLLER TO SATISFY FIXED AND FINAL UNWARRANTED  DEBTS
 OWED  BY  TAXPAYERS. FOR PURPOSES OF THIS SECTION, THE TERM "UNWARRANTED
 DEBT" SHALL MEAN PAST-DUE TAX LIABILITIES, INCLUDING UNPAID TAX,  INTER-
 EST AND PENALTY, THAT THE COMMISSIONER IS REQUIRED BY LAW TO COLLECT AND
 THAT  HAVE  BECOME  FIXED AND FINAL SUCH THAT THE TAXPAYER NO LONGER HAS
 ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND  A  WARRANT  HAS  NOT
 BEEN  FILED;  AND  THE TERM "TAXPAYER" SHALL MEAN ANY INDIVIDUAL, CORPO-
 RATION, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP OR COMPANY,  PARTNER,
 MEMBER,  MANAGER, SOLE PROPRIETORSHIP, ESTATE, TRUST, FIDUCIARY OR ENTI-
 TY, WHO OR WHICH HAS BEEN IDENTIFIED AS OWING TAXES TO THE  STATE.  THIS
 SECTION  SHALL  NOT BE DEEMED TO ABROGATE OR LIMIT IN ANY WAY THE POWERS
 AND AUTHORITY OF THE COMPTROLLER TO SET OFF DEBTS OWED  THE  STATE  FROM
 UNCLAIMED FUNDS, UNDER THE CONSTITUTION OF THE STATE OR ANY OTHER LAW.
   2.  THE  COMPTROLLER SHALL KEEP ALL INFORMATION HE OR SHE OBTAINS FROM
 THE COMMISSIONER CONFIDENTIAL, AND ANY EMPLOYEE, AGENT OR REPRESENTATIVE
 OF THE COMPTROLLER IS PROHIBITED FROM DISCLOSING ANY  TAXPAYER  INFORMA-
 TION  RECEIVED  UNDER THIS SECTION TO ANYONE OTHER THAN THE COMMISSIONER
 OR STAFF OF THE DEPARTMENT OR STAFF  OF  THE  DEPARTMENT  OF  AUDIT  AND
 CONTROL FOR THE PURPOSES DESCRIBED IN THIS SECTION.
   § 2. This act shall take effect immediately.
 
                                  PART L
 
   Section 1. Subdivision 2 of section 136 of the social services law, as
 amended  by  section 24 of part B of chapter 436 of the laws of 1997, is
 amended to read as follows:
   2. All communications and information relating to a  person  receiving
 public  assistance  or  care  obtained  by any social services official,
 service officer, or employee in the course of his or her work  shall  be
 considered  confidential  and,  except  as  otherwise  provided  in this
 section, shall be disclosed only to the  commissioner,  or  his  or  her
 authorized  representative,  the  commissioner of labor, or   his or her
 authorized representative, the commissioner of health,  or  his  or  her
 authorized  representative, THE COMMISSIONER OF TAXATION AND FINANCE, OR
 HIS OR HER AUTHORIZED  REPRESENTATIVE  (OTHER  THAN  THE  DISCLOSURE  OF
 INFORMATION  THAT  HAS  BEEN  PROHIBITED  BY  FEDERAL  LAW), the welfare
 inspector general, or his or her authorized representative,  the  county
 board  of  supervisors,  city council, town board or other board or body
 authorized and required to appropriate funds for public  assistance  and
 care  in  and  for such county, city or town or its authorized represen-
 tative or, by authority of the county,  city  or  town  social  services
 official, to a person or agency considered entitled to such information.
 Nothing  herein shall preclude a   social services official from report-
 ing to an appropriate agency  or  official,  including  law  enforcement
 agencies  or  officials,  known  or   suspected instances of physical or
 mental injury, sexual abuse or exploitation, sexual contact with a minor
 or negligent treatment or maltreatment of a child of which the  official
 becomes  aware  in  the administration of public assistance and care nor
 shall it preclude communication with the federal immigration and  natur-
 alization service regarding the immigration status of any individual.
   § 2. This act shall take effect immediately.
 
                                  PART M

   Section  1.  The tax law is amended by adding a new section 44 to read
 as follows:

 S. 7509                            20                            A. 9509
 
   § 44.  INVESTMENT  MANAGEMENT  SERVICES.  (A)  FOR  PURPOSES  OF  THIS
 SECTION,  THE  TERM "INVESTMENT MANAGEMENT SERVICES" TO A PARTNERSHIP, S
 CORPORATION OR ENTITY INCLUDES (1) RENDERING INVESTMENT ADVICE REGARDING
 THE PURCHASE OR SALE OF  SECURITIES  AS  DEFINED  IN  PARAGRAPH  TWO  OF
 SUBSECTION  (C)  OF  SECTION  FOUR  HUNDRED SEVENTY-FIVE OF THE INTERNAL
 REVENUE CODE WITHOUT REGARD TO THE LAST SENTENCE  THEREOF,  REAL  ESTATE
 HELD FOR RENTAL OR INVESTMENT, INTERESTS IN PARTNERSHIPS, COMMODITIES AS
 DEFINED  IN  PARAGRAPH  TWO  OF  SUBSECTION  (E) OF SECTION FOUR HUNDRED
 SEVENTY-FIVE OF THE INTERNAL REVENUE  CODE,  OR  OPTIONS  OR  DERIVATIVE
 CONTRACTS WITH RESPECT TO ANY OF THE FOREGOING; (2) MANAGING, ACQUIRING,
 OR  DISPOSING OF ANY SUCH ASSET; (3) ARRANGING FINANCING WITH RESPECT TO
 THE ACQUISITION OF ANY SUCH ASSET; AND (4) RELATED ACTIVITIES IN SUPPORT
 OF ANY SERVICE DESCRIBED IN PARAGRAPHS ONE, TWO, OR THREE OF THIS SUBDI-
 VISION.
   (B) SPECIAL RULE FOR PARTNERSHIPS AND S CORPORATIONS.  NOTWITHSTANDING
 ANY STATE OR FEDERAL LAW TO THE CONTRARY:
   (1)  WHERE  A  PARTNER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE
 PARTNERSHIP, THE PARTNER WILL NOT BE TREATED AS A PARTNER  FOR  PURPOSES
 OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE PARTNER'S DISTRIBUTIVE
 SHARE  OF  INCOME,  GAIN,  LOSS  AND DEDUCTION, INCLUDING ANY GUARANTEED
 PAYMENTS, THAT IS IN EXCESS OF THE AMOUNT SUCH DISTRIBUTIVE SHARE  WOULD
 HAVE BEEN IF THE PARTNER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES
 FOR  THE  PARTNERSHIP.  INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR
 PURPOSES OF ARTICLE NINE-A OF THIS CHAPTER AS  A  BUSINESS  RECEIPT  FOR
 SERVICES  AND  FOR  PURPOSES  OF  ARTICLE  TWENTY-TWO OF THIS CHAPTER AS
 INCOME ATTRIBUTABLE TO A  TRADE,  BUSINESS,  PROFESSION  OR  OCCUPATION.
 PROVIDED,  HOWEVER, THE AMOUNT OF THE DISTRIBUTIVE SHARE THAT WOULD HAVE
 BEEN DETERMINED  IF  THE  PARTNER  PERFORMED  NO  INVESTMENT  MANAGEMENT
 SERVICES SHALL NOT BE LESS THAN ZERO.
   (2)  WHERE  A  SHAREHOLDER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR
 THE S CORPORATION, THE SHAREHOLDER WILL NOT BE TREATED AS A  SHAREHOLDER
 FOR  PURPOSES  OF  THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE SHARE-
 HOLDER'S PRO RATA SHARE OF INCOME, GAIN, LOSS AND DEDUCTION THAT  IS  IN
 EXCESS  OF  THE AMOUNT SUCH PRO RATA SHARE WOULD HAVE BEEN IF THE SHARE-
 HOLDER HAD PERFORMED NO INVESTMENT MANAGEMENT  SERVICES.  INSTEAD,  SUCH
 EXCESS  AMOUNT  SHALL  BE  TREATED FOR PURPOSES OF ARTICLE TWENTY-TWO OF
 THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION  OR
 OCCUPATION.  PROVIDED,  HOWEVER,  THE  AMOUNT OF THE PRO RATA SHARE THAT
 WOULD HAVE BEEN DETERMINED IF  THE  SHAREHOLDER  PERFORMED  NO  SERVICES
 SHALL NOT BE LESS THAN ZERO.
   (3)  A  PARTNER  OR  SHAREHOLDER  WILL  NOT  BE DEEMED TO BE PROVIDING
 INVESTMENT MANAGEMENT SERVICES UNDER THIS SECTION  IF  AT  LEAST  EIGHTY
 PERCENT  OF  THE AVERAGE FAIR MARKET VALUE OF THE ASSETS OF THE PARTNER-
 SHIP OR S CORPORATION DURING THE TAXABLE YEAR  CONSIST  OF  REAL  ESTATE
 HELD FOR RENTAL OR INVESTMENT.
   (C)  IN  ADDITION TO ANY OTHER TAXES OR SURCHARGES IMPOSED PURSUANT TO
 ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, ANY  CORPORATION,  PARTNER
 OR SHAREHOLDER PROVIDING INVESTMENT MANAGEMENT SERVICES SHALL BE SUBJECT
 TO  AN  ADDITIONAL  TAX,  REFERRED  TO AS THE "CARRIED INTEREST FAIRNESS
 FEE".  SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE  EQUAL  TO  SEVENTEEN
 PERCENT  OF  THE EXCESS AMOUNT DETERMINED PURSUANT TO SUBDIVISION (B) OF
 THIS SECTION; PROVIDED, HOWEVER, (I) IN THE CASE  OF  A  CORPORATION  OR
 SHAREHOLDER  OF  AN  S  CORPORATION PROVIDING SUCH INVESTMENT MANAGEMENT
 SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN  PERCENT  OF  THE  EXCESS
 AMOUNT  APPORTIONED  TO  THE  STATE  BY  APPLYING THE CORPORATION'S OR S
 CORPORATION'S APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO  HUNDRED

 S. 7509                            21                            A. 9509
 
 TEN-A OF THIS CHAPTER; (II) IN THE CASE OF A NONRESIDENT PARTNER PROVID-
 ING  SUCH  INVESTMENT  MANAGEMENT  SERVICES,  SUCH FEE SHALL BE EQUAL TO
 SEVENTEEN PERCENT OF THE EXCESS AMOUNT DERIVED FROM NEW YORK SOURCES  AS
 DETERMINED  UNDER  SECTION  SIX HUNDRED THIRTY-TWO OF THIS CHAPTER. SUCH
 CARRIED INTEREST FAIRNESS FEE SHALL BE ADMINISTERED IN  ACCORDANCE  WITH
 ARTICLE  NINE-A OR TWENTY-TWO OF THIS CHAPTER, AS APPLICABLE, UNTIL SUCH
 TIME AS THE COMMISSIONER OF TAXATION AND FINANCE HAS NOTIFIED THE LEGIS-
 LATIVE BILL  DRAFTING  COMMISSION  THAT  FEDERAL  LEGISLATION  HAS  BEEN
 ENACTED  THAT TREATS THE PROVISION OF INVESTMENT MANAGEMENT SERVICES FOR
 FEDERAL TAX PURPOSES SUBSTANTIALLY THE SAME AS PROVIDED IN THIS SECTION.
   § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law,  as
 amended  by  section  5  of part T of chapter 59 of the laws of 2015, is
 amended to read as follows:
    (a) (i) The term "investment income" means income, including  capital
 gains  in  excess  of  capital  losses,  from investment capital, to the
 extent included in  computing  entire  net  income,  less,  (A)  in  the
 discretion  of  the  commissioner,  any interest deductions allowable in
 computing entire net income which are directly or  indirectly  attribut-
 able to investment capital or investment income, AND (B) ANY NET CAPITAL
 GAIN  INCLUDED IN FEDERAL TAXABLE INCOME THAT MUST BE RECHARACTERIZED AS
 A BUSINESS RECEIPT PURSUANT  TO  SECTION  FORTY-FOUR  OF  THIS  CHAPTER;
 provided, however, that in no case shall investment income exceed entire
 net  income.  (ii) If the amount of interest deductions subtracted under
 subparagraph (i) of this paragraph exceeds investment income, the excess
 of such amount over investment income must be added back to  entire  net
 income.  (iii)  If  the  taxpayer's investment income determined without
 regard to the interest deductions subtracted under subparagraph  (i)  of
 this  paragraph  comprises  more  than  eight  percent of the taxpayer's
 entire net income, investment income determined without regard  to  such
 interest deductions cannot exceed eight percent of the taxpayer's entire
 net income.
   § 3. Subsection (b) of section 617 of the tax law, as amended by chap-
 ter 606 of the laws of 1984, is amended to read as follows:
   (b)  Character  of  items. [Each] EXCEPT AS PROVIDED IN SECTION FORTY-
 FOUR OF THIS CHAPTER, EACH item of partnership and S corporation income,
 gain, loss, or deduction shall have the same character for a partner  or
 shareholder under this article as for federal income tax purposes. Where
 an  item  is not characterized for federal income tax purposes, it shall
 have the same character for a partner  or  shareholder  as  if  realized
 directly  from  the  source  from which realized by the partnership or S
 corporation or incurred in the same manner as incurred by  the  partner-
 ship or S corporation.
   § 4. Subsection (d) of section 631 of the tax law, as amended by chap-
 ter 28 of the laws of 1987, is amended to read as follows:
   (d)  Purchase  and sale for own account.-- A nonresident, other than a
 dealer holding property primarily for sale to customers in the  ordinary
 course  of  his  OR  HER  trade  or business OR A PARTNER OR SHAREHOLDER
 PERFORMING  INVESTMENT  MANAGEMENT  SERVICES  AS  DESCRIBED  IN  SECTION
 FORTY-FOUR  OF THIS CHAPTER, shall not be deemed to carry on a business,
 trade, profession or occupation in this state solely by  reason  of  the
 purchase  and sale of property or the purchase, sale or writing of stock
 option contracts, or both, for his own account.
   § 5. The opening paragraph of subsection (b) of section 632 of the tax
 law, as amended by chapter 28 of the laws of 1987, is amended to read as
 follows:

 S. 7509                            22                            A. 9509
 
   [In] EXCEPT AS OTHERWISE PROVIDED IN SECTION FORTY-FOUR OF THIS  CHAP-
 TER,  IN  determining  the sources of a nonresident partner's income, no
 effect shall be given  to  a  provision  in  the  partnership  agreement
 which--
   §  6.  For  taxable  years  beginning  on or after January 1, 2018 and
 before January 1, 2019, (i) no addition to tax under subsection  (c)  of
 section  685  or  subsection (c) of section 1085 of the tax law shall be
 imposed with respect to any underpayment attributable to the  amendments
 made  by  this  act  of any estimated taxes that are required to be paid
 prior to the effective date of this  act,  provided  that  the  taxpayer
 timely  made  those payments; and (ii) the required installment of esti-
 mated tax described in clause (ii) of subparagraph (B) of paragraph 3 of
 subsection (c) of section 685 of the tax law, and the exception to addi-
 tion for underpayment of estimated tax described in paragraph 1 or 2  of
 subsection  (d)  of  section  1085  of  the  tax law, in relation to the
 preceding year's return, shall be calculated as if the  amendments  made
 by this act had been in effect for that entire preceding year.
   §  7.  This  act  shall take effect upon the enactment into law by the
 states of Connecticut, New Jersey,  Massachusetts  and  Pennsylvania  of
 legislation  having  substantially  the  same effect as this act and the
 enactments by such states have taken effect  in  each  state  and  shall
 apply  for  taxable  years  beginning  on  or after such date; provided,
 however, if the states of Connecticut,  New  Jersey,  Massachusetts  and
 Pennsylvania  have already enacted such legislation, this act shall take
 effect immediately and shall apply for taxable  years  beginning  on  or
 after  January  1, 2018; provided further that the commissioner of taxa-
 tion and finance shall notify the legislative bill  drafting  commission
 upon the enactment of such legislation by the states of Connecticut, New
 Jersey, Massachusetts and Pennsylvania in order that such commission may
 maintain an accurate and timely effective data base of the official text
 of  the laws of the state of New York in furtherance of effectuating the
 provisions of section 44 of the legislative law and section 70-b of  the
 public officers law.
 
                                  PART N
 
   Section  1.  Section 2016 of the tax law, as amended by chapter 401 of
 the laws of 1987, is amended to read as follows:
   § 2016. Judicial review. A decision of the tax appeals tribunal, which
 is not subject to any further administrative review, shall  finally  and
 irrevocably  decide  all  the  issues  which  were raised in proceedings
 before the division of tax appeals upon which  such  decision  is  based
 unless,  within  four  months after notice of such decision is served by
 the tax appeals tribunal upon every party to the proceeding before  such
 tribunal  by  certified  mail  or  personal  service, the petitioner who
 commenced the proceeding [petitions] OR THE COMMISSIONER, OR BOTH, PETI-
 TION for judicial review in the manner provided by article seventy-eight
 of the civil practice law and rules, except  as  otherwise  provided  in
 this  [section]  CHAPTER.    Such  service  by  certified  mail shall be
 complete upon deposit of such notice, enclosed in a  post-paid  properly
 addressed  wrapper,  in  a  post office or official depository under the
 exclusive care and custody of the United States postal service.    [The]
 WHERE THE petitioner WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF
 TAX  APPEALS  FILES  A  PETITION FOR JUDICIAL REVIEW, THE PETITION shall
 designate the tax appeals tribunal and the commissioner [of taxation and
 finance] as respondents in the proceeding for judicial  review.    WHERE

 S. 7509                            23                            A. 9509
 
 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 O
 
   Section  1.  Subparagraph  (B)  of  paragraph  1  of subsection (b) of
 section 605 of the tax law, as amended by chapter  28  of  the  laws  of
 1987, is amended to read as follows:
   (B)  who  [is  not  domiciled in this state but] maintains a permanent
 place of abode in this state and spends in the aggregate more  than  one
 hundred  eighty-three days of the taxable year in this state, WHETHER OR
 NOT DOMICILED IN THIS STATE FOR ANY PORTION OF THE TAXABLE YEAR,  unless
 such  individual  is in active service in the armed forces of the United
 States.
   § 2. Paragraph 2 of subsection (a) of section 1305 of the tax law,  as
 amended  by  chapter  225  of  the  laws  of 1977, is amended to read as
 follows:
   (2) who [is not domiciled in such  city  but]  maintains  a  permanent
 place  of  abode  in such city and spends in the aggregate more than one
 hundred eighty-three days of the taxable year in such city,  WHETHER  OR
 NOT  DOMICILED  IN THIS CITY FOR ANY PORTION OF THE TAXABLE YEAR, unless
 such individual is in active service in the armed forces of  the  United
 States.
   §  3.  Subparagraph  (B)  of paragraph 1 of subdivision (b) of section
 11-1705 of the administrative code of the city of New York,  as  amended
 by chapter 333 of the laws of 1987, is amended to read as follows:
   (B)  who  [is  not  domiciled  in this city but] maintains a permanent
 place of abode in this city and spends in the aggregate  more  than  one
 hundred  eighty-three  days of the taxable year in this city, WHETHER OR
 NOT DOMICILED IN THIS CITY FOR ANY PORTION OF THE TAXABLE  YEAR,  unless
 such  individual  is in active service in the armed forces of the United
 States.
   § 4. This act shall take effect immediately and  shall  apply  to  all
 taxable  years for which the statute of limitations for seeking a refund
 or assessing additional tax is still open.
 
                                  PART P

 S. 7509                            24                            A. 9509
 
   Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax
 law, as amended by section 1 of part L1 of chapter 109 of  the  laws  of
 2006, is amended to read as follows:
   (1)  A  resident taxpayer shall be allowed a credit as provided herein
 equal to the greater of one hundred dollars times the number of qualify-
 ing children of the taxpayer or the applicable percentage of  the  child
 tax  credit allowed the taxpayer under section twenty-four of the inter-
 nal revenue code for the same taxable year for  each  qualifying  child.
 Provided,  however,  in  the  case  of a taxpayer whose federal adjusted
 gross income exceeds  the  applicable  threshold  amount  set  forth  by
 section  24(b)(2) of the Internal Revenue Code, the credit shall only be
 equal to the applicable percentage of the child tax credit  allowed  the
 taxpayer under section 24 of the Internal Revenue Code for each qualify-
 ing child. For the purposes of this subsection, a qualifying child shall
 be  a  child  who  meets the definition of qualified child under section
 24(c) of the internal revenue code and is at least four  years  of  age.
 The  applicable  percentage shall be thirty-three percent.  FOR PURPOSES
 OF THIS SUBSECTION, ANY REFERENCE TO SECTION 24 OF THE INTERNAL  REVENUE
 CODE  SHALL  BE  A  REFERENCE  TO SUCH SECTION AS IT EXISTED IMMEDIATELY
 PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97.
   § 2. This act shall take effect immediately and shall apply to taxable
 years commencing on or after January 1, 2018.
 
                                  PART Q
 
   Section 1. Paragraphs (a) and (b) of subdivision 29 of  section  210-B
 of  the  tax law, as amended by section 1 of part I of chapter 60 of the
 laws of 2016, 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
 [nineteen]  TWENTY-ONE,  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) Qualified veteran. A qualified veteran is an individual:
   (1) who served on active duty in the United  States  army,  navy,  air
 force,  marine corps, coast guard or the reserves thereof, or who served
 in active military service of the United States as a member of the  army
 national  guard,  air  national  guard, New York guard or New York naval
 militia; who was released from  active  duty  by  general  or  honorable
 discharge after September eleventh, two thousand one;
   (2)  who  commences  employment  by the qualified taxpayer on or after
 January first, two thousand fourteen,  and  before  January  first,  two
 thousand [eighteen] TWENTY; and
   (3)  who certifies by signed affidavit, under penalty of perjury, that
 he or she has not been employed for thirty-five or more hours during any
 week in the one hundred eighty day period immediately prior  to  his  or
 her employment by the taxpayer.

 S. 7509                            25                            A. 9509
 
   §  2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax
 law, as amended by section 2 of part I of chapter  60  of  the  laws  of
 2016, 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
 [nineteen] TWENTY-ONE, 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.
   (2) Qualified veteran. A qualified veteran is an individual:
   (A)  who  served  on  active duty in the United States army, navy, air
 force, marine corps, coast guard or the reserves thereof, or who  served
 in  active military service of the United States as a member of the army
 national guard, air national guard, New York guard  or  New  York  naval
 militia;  who  was  released  from  active  duty by general or honorable
 discharge after September eleventh, two thousand one;
   (B) who commences employment by the qualified  taxpayer  on  or  after
 January  first,  two  thousand  fourteen,  and before January first, two
 thousand [eighteen] TWENTY; and
   (C) who certifies by signed affidavit, under penalty of perjury,  that
 he or she has not been employed for thirty-five or more hours during any
 week  in  the  one hundred eighty day period immediately prior to his or
 her employment by the taxpayer.
   § 3. Paragraphs 1 and 2 of subdivision (g-1) of section  1511  of  the
 tax  law, as amended by section 3 of part I of chapter 60 of the laws of
 2016, 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
 [nineteen]  TWENTY-ONE,  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) Qualified veteran. A qualified veteran is an individual:
   (A) who served on active duty in the United  States  army,  navy,  air
 force,  marine corps, coast guard or the reserves thereof, or who served
 in active military service of the United States as a member of the  army
 national  guard,  air  national  guard, New York guard or New York naval
 militia; who was released from  active  duty  by  general  or  honorable
 discharge after September eleventh, two thousand one;
   (B)  who  commences  employment  by the qualified taxpayer on or after
 January first, two thousand fourteen,  and  before  January  first,  two
 thousand [eighteen] TWENTY; and
   (C)  who certifies by signed affidavit, under penalty of perjury, that
 he or she has not been employed for thirty-five or more hours during any

 S. 7509                            26                            A. 9509
 
 week in the one hundred eighty day period immediately prior  to  his  or
 her employment by the taxpayer.
   § 4. This act shall take effect immediately.
 
                                  PART R
 
   Section  1.  Subdivision  (c)  of  section  25-a  of the labor law, as
 amended by section 1 of part AA of chapter 56 of the laws  of  2015,  is
 amended to read as follows:
   (c)  A  qualified  employer shall be entitled to a tax credit equal to
 (1) [five] SEVEN hundred FIFTY dollars per month for up  to  six  months
 for  each  qualified employee the employer employs in a full-time job or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months for each qualified employee the employer employs in  a  part-time
 job  of  at  least  twenty hours per week or ten hours per week when the
 qualified employee is enrolled in high school full-time, (2) [one  thou-
 sand]  FIFTEEN  HUNDRED  dollars  for  each  qualified  employee  who is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied employer in a full-time job or [five] SEVEN hundred  FIFTY  dollars
 for  each  qualified employee who is employed for at least an additional
 six CONSECUTIVE months by the qualified employer in a part-time  job  of
 at  least twenty hours per week or ten hours per week when the qualified
 employee is enrolled in high school full-time,  and  (3)  an  additional
 [one  thousand]  FIFTEEN HUNDRED dollars for each qualified employee who
 is employed for at least an additional year after the [first year of the
 employee's employment] COMPLETION OF THE TIME PERIODS  AND  SATISFACTION
 OF  THE  CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVI-
 SION by the qualified employer  in  a  full-time  job  or  [five]  SEVEN
 hundred FIFTY dollars for each qualified employee who is employed for at
 least an additional year after the [first year of the employee's employ-
 ment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS
 SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION by the qualified
 employer in a part-time job of at least twenty hours  per  week  or  ten
 hours  per  week  when the qualified employee is enrolled in high school
 full time. The tax credits shall be claimed by the qualified employer as
 specified in subdivision thirty-six of section  two  hundred  ten-B  and
 subsection (tt) of section six hundred six of the tax law.
   §  2.  Subdivisions (d), (e) and (f) of section 25-a of the labor law,
 subdivisions (d) and (e) as amended by section 1 of subpart A of part  N
 of  chapter  59  of  the  laws of 2017 and subdivision (f) as amended by
 section 1 of part AA of chapter 56 of the laws of 2015, are  amended  to
 read as follows:
   (d)  To  participate in the program established under this section, an
 employer must submit an application (in a form prescribed by the commis-
 sioner) to the commissioner after January first, two thousand twelve but
 no later than November thirtieth, two thousand twelve for  program  one,
 after  January  first,  two thousand fourteen but no later than November
 thirtieth, two thousand fourteen for program two, after  January  first,
 two  thousand fifteen but no later than November thirtieth, two thousand
 fifteen for program three, after January first, two thousand sixteen but
 no later than November thirtieth, two thousand sixteen for program four,
 after January first, two thousand seventeen but no later  than  November
 thirtieth, two thousand seventeen for program five, after January first,
 two thousand eighteen but no later than November thirtieth, two thousand
 eighteen for program six, after January first, two thousand nineteen but
 no  later  than  November  thirtieth,  two thousand nineteen for program

 S. 7509                            27                            A. 9509
 
 seven, after January first, two thousand twenty but no later than Novem-
 ber thirtieth, two thousand twenty  for  program  eight,  after  January
 first, two thousand twenty-one but no later than November thirtieth, two
 thousand twenty-one for program nine, and after January first, two thou-
 sand twenty-two but no later than November thirtieth, two thousand twen-
 ty-two for program ten. The qualified employees must start their employ-
 ment  on  or  after January first, two thousand twelve but no later than
 December thirty-first, two thousand twelve for program one, on or  after
 January  first, two thousand fourteen but no later than December thirty-
 first, two thousand fourteen for program two, on or after January first,
 two thousand fifteen but no later than December thirty-first, two  thou-
 sand  fifteen for program three, on or after January first, two thousand
 sixteen but no later than December thirty-first,  two  thousand  sixteen
 for  program four, on or after January first, two thousand seventeen but
 no later than December thirty-first, two thousand seventeen for  program
 five, on or after January first, two thousand eighteen but no later than
 December  thirty-first,  two  thousand  eighteen  for program six, on or
 after January first, two thousand nineteen but no  later  than  December
 thirty-first, two thousand nineteen for program seven, on or after Janu-
 ary  first, two thousand twenty but no later than December thirty-first,
 two thousand twenty for program eight, on or after  January  first,  two
 thousand  twenty-one  but no later than December thirty-first, two thou-
 sand twenty-one for program nine, and on or  after  January  first,  two
 thousand  twenty-two  but no later than December thirty-first, two thou-
 sand twenty-two for  program  ten.  [The  commissioner  shall  establish
 guidelines  and  criteria  that  specify  requirements  for employers to
 participate in the program including criteria for  certifying  qualified
 employees, ensuring that the process established will minimize any undue
 delay  in  issuing  the certificate of eligibility. Any regulations that
 the commissioner determines are necessary may be adopted on an emergency
 basis notwithstanding anything to the contrary in  section  two  hundred
 two  of  the  state  administrative procedure act. Such requirements may
 include the types of industries that the employers are engaged  in.  The
 commissioner may give preference to employers that are engaged in demand
 occupations  or industries, or in regional growth sectors, including but
 not limited to those identified by  the  regional  economic  development
 councils,  such  as clean energy, healthcare, advanced manufacturing and
 conservation. In addition, the commissioner  shall  give  preference  to
 employers  who  offer  advancement  and employee benefit packages to the
 qualified individuals.] AS PART OF SUCH APPLICATION, AN EMPLOYER MUST:
   (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
 TAX INFORMATION WITH THE COMMISSIONER. HOWEVER, ANY  INFORMATION  SHARED
 AS  A  RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
 INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW, AND
   (2) ALLOW THE COMMISSIONER AND ITS AGENTS AND THE DEPARTMENT OF  TAXA-
 TION  AND FINANCE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS
 OF EMPLOYEES THE COMMISSIONER MAY REQUIRE TO MONITOR COMPLIANCE.
   (e) If, after reviewing the application submitted by an employer,  the
 commissioner determines that such employer is eligible to participate in
 the program established under this section, the commissioner shall issue
 the  employer  a PRELIMINARY certificate of eligibility that establishes
 the employer as a qualified employer.  The  PRELIMINARY  certificate  of
 eligibility  shall  specify  the  maximum  amount of tax credit that the
 employer [will] MAY be allowed to claim and the program year under which
 it [can] MAY be claimed. THE MAXIMUM AMOUNT OF TAX CREDIT  THE  EMPLOYER

 S. 7509                            28                            A. 9509
 
 IS  ALLOWED  TO CLAIM SHALL BE COMPUTED AS PRESCRIBED IN SUBDIVISION (C)
 OF THIS SECTION.
   (f) The commissioner shall annually publish a report. Such report must
 contain  the  names  and  addresses of any employer issued a PRELIMINARY
 certificate of eligibility  under  this  section,  [and]  the  [maximum]
 amount  of  New  York  youth  works  tax credit allowed to the QUALIFIED
 employer as specified on [such] AN ANNUAL FINAL certificate  of  [eligi-
 bility]  TAX  CREDIT  AND  ANY  OTHER  INFORMATION  AS DETERMINED BY THE
 COMMISSIONER.
   § 3. Section 25-a of the labor law is  amended  by  adding  three  new
 subdivisions (e-1), (e-2) and (e-3) to read as follows:
   (E-1)(1)  TO  RECEIVE  AN  ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE
 QUALIFIED EMPLOYER MUST ANNUALLY SUBMIT, ON OR  BEFORE  JANUARY  THIRTY-
 FIRST OF THE CALENDAR YEAR SUBSEQUENT TO THE PAYMENT OF WAGES PAID TO AN
 ELIGIBLE EMPLOYEE, A REPORT TO THE COMMISSIONER, IN A FORM PRESCRIBED BY
 THE  COMMISSIONER.  THE  REPORT  MUST  DEMONSTRATE THAT THE EMPLOYER HAS
 SATISFIED ALL ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE  INFORMATION
 NECESSARY  FOR  THE  COMMISSIONER  TO COMPUTE AN ACTUAL AMOUNT OF CREDIT
 ALLOWED.
   (2) AFTER REVIEWING THE REPORT AND FINDING IT SUFFICIENT, THE  COMMIS-
 SIONER  SHALL  ISSUE  AN  ANNUAL  FINAL  CERTIFICATE OF TAX CREDIT. SUCH
 CERTIFICATE SHALL INCLUDE, IN ADDITION  TO  ANY  OTHER  INFORMATION  THE
 COMMISSIONER DETERMINES IS NECESSARY, THE FOLLOWING INFORMATION:
   (I)  THE  NAME  AND  EMPLOYER  IDENTIFICATION  NUMBER OF THE QUALIFIED
 EMPLOYER;
   (II) THE PROGRAM YEAR FOR THE CORRESPONDING CREDIT AWARD;
   (III) THE ACTUAL AMOUNT OF CREDIT TO WHICH THE QUALIFIED  EMPLOYER  IS
 ENTITLED  FOR  THAT CALENDAR YEAR OR THE FISCAL YEAR IN WHICH THE ANNUAL
 FINAL CERTIFICATE IS ISSUED,  WHICH  ACTUAL  AMOUNT  CANNOT  EXCEED  THE
 AMOUNT  OF  CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY BE LESS
 THAN SUCH AMOUNT; AND
   (IV) A UNIQUE CERTIFICATE NUMBER IDENTIFYING THE ANNUAL FINAL  CERTIF-
 ICATE OF TAX CREDIT.
   (E-2)  IN  DETERMINING THE AMOUNT OF CREDIT FOR PURPOSES OF THE ANNUAL
 FINAL CERTIFICATE OF TAX CREDIT, THE PORTION OF THE CREDIT DESCRIBED  IN
 PARAGRAPH  ONE  OF  SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR
 THE CALENDAR YEAR IN WHICH THE WAGES ARE PAID TO THE QUALIFIED EMPLOYEE,
 THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION  (C)
 OF  THIS  SECTION  SHALL  BE  ALLOWED FOR THE CALENDAR YEAR IN WHICH THE
 ADDITIONAL SIX CONSECUTIVE MONTH PERIOD ENDS, AND  THE  PORTION  OF  THE
 CREDIT  DESCRIBED  IN PARAGRAPH THREE OF SUBDIVISION (C) OF THIS SECTION
 SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL  YEAR  OF
 CONSECUTIVE EMPLOYMENT ENDS AFTER THE COMPLETION OF THE TIME PERIODS AND
 SATISFACTION  OF  THE  CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF
 SUBDIVISION (C) OF THIS SECTION.   IF THE QUALIFIED  EMPLOYER'S  TAXABLE
 YEAR  IS  A  CALENDAR  YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE
 CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF  TAX  CREDIT  ON
 THE  CALENDAR  YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A  FISCAL
 YEAR,  THE  EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED
 ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT  ON  THE  RETURN  FOR  THE
 FISCAL  YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIF-
 ICATE OF TAX CREDIT IS ISSUED.
   (E-3) THE COMMISSIONER SHALL ESTABLISH GUIDELINES  AND  CRITERIA  THAT
 SPECIFY REQUIREMENTS FOR EMPLOYERS TO PARTICIPATE IN THE PROGRAM INCLUD-
 ING CRITERIA FOR CERTIFYING QUALIFIED EMPLOYEES, AND ISSUING THE PRELIM-

 S. 7509                            29                            A. 9509
 
 INARY  CERTIFICATE  OF  ELIGIBILITY  AND ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT.  ANY REGULATIONS THAT THE COMMISSIONER DETERMINES ARE  NECESSARY
 MAY  BE  ADOPTED  ON  AN EMERGENCY BASIS NOTWITHSTANDING ANYTHING TO THE
 CONTRARY  IN  SECTION TWO HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCE-
 DURE ACT. SUCH REQUIREMENTS MAY INCLUDE THE TYPES OF INDUSTRIES THAT THE
 EMPLOYERS ARE ENGAGED  IN.  THE  COMMISSIONER  MAY  GIVE  PREFERENCE  TO
 EMPLOYERS  THAT  ARE  ENGAGED IN DEMAND OCCUPATIONS OR INDUSTRIES, OR IN
 REGIONAL GROWTH SECTORS, INCLUDING BUT NOT LIMITED TO  THOSE  IDENTIFIED
 BY  THE  REGIONAL  ECONOMIC  DEVELOPMENT COUNCILS, SUCH AS CLEAN ENERGY,
 HEALTHCARE, ADVANCED MANUFACTURING AND CONSERVATION.  IN  ADDITION,  THE
 COMMISSIONER  SHALL  GIVE  PREFERENCE TO EMPLOYERS WHO OFFER ADVANCEMENT
 AND EMPLOYEE BENEFIT PACKAGES TO THE QUALIFIED INDIVIDUALS.
   § 4. Paragraph (a) of subdivision 36 of section 210-B of the tax  law,
 as amended by section 2 of part AA of chapter 56 of the laws of 2015, is
 amended to read as follows:
   (a) A taxpayer that has been certified by the commissioner of labor as
 a  qualified employer pursuant to section twenty-five-a of the labor law
 shall be allowed a credit against the tax imposed by this article  equal
 to (i) [five] SEVEN hundred FIFTY dollars per month for up to six months
 for  each  qualified employee the employer employs in a full-time job or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months for each qualified employee the employer employs in  a  part-time
 job  of  at  least  twenty hours per week or ten hours per week when the
 qualified employee is enrolled in high school full-time, (ii) [one thou-
 sand] FIFTEEN  HUNDRED  dollars  for  each  qualified  employee  who  is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied  employer  in a full-time job or [five] SEVEN hundred FIFTY dollars
 for each qualified employee who is employed for at least  an  additional
 six  CONSECUTIVE  months by the qualified employer in a part-time job of
 at least twenty hours per week or ten hours per week when the  qualified
 employee  is  enrolled in high school full-time, and (iii) an additional
 [one thousand] FIFTEEN HUNDRED dollars for each qualified  employee  who
 is employed for at least an additional year after the [first year of the
 employee's  employment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION
 OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS  PARA-
 GRAPH  by  the  qualified  employer  in  a full-time job or [five] SEVEN
 hundred FIFTY dollars for each qualified employee who is employed for at
 least an additional year after the [first year of the employee's employ-
 ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE  CONDITIONS
 SET  FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH by the quali-
 fied employer in a part-time job of at least twenty hours  per  week  or
 ten  hours  per  week  when  the  qualified employee is enrolled in high
 school full-time. For purposes of this subdivision, the term  "qualified
 employee" shall have the same meaning as set forth in subdivision (b) of
 section  twenty-five-a  of  the  labor  law.  The  portion of the credit
 described in subparagraph (i) of this paragraph shall be allowed for the
 taxable year in which the wages are paid to the qualified employee,  the
 portion  of  the credit described in subparagraph (ii) of this paragraph
 shall be allowed in the taxable year in which the additional  six  month
 period  ends,  and  the  portion of the credit described in subparagraph
 (iii) of this paragraph shall be allowed in the taxable  year  in  which
 the additional year after the first year of employment ends.
   §  5. Paragraph (a) of subdivision 36 of section 210-B of the tax law,
 as amended by section 4 of this act, is amended to read as follows:
   (a) A taxpayer that has been certified by the commissioner of labor as
 a qualified employer pursuant to section twenty-five-a of the labor  law

 S. 7509                            30                            A. 9509
 
 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS-
 SIONER shall be allowed a credit against the tax imposed by this article
 equal to [(i) seven hundred fifty dollars per month for up to six months
 for  each  qualified employee the employer employs in a full-time job or
 three hundred seventy-five dollars per month for up to  six  months  for
 each  qualified  employee  the employer employs in a part-time job of at
 least twenty hours per week or ten hours per  week  when  the  qualified
 employee  is  enrolled  in  high  school full-time, (ii) fifteen hundred
 dollars for each qualified employee who is  employed  for  at  least  an
 additional  six  consecutive months by the qualified employer in a full-
 time job or seven hundred fifty dollars for each qualified employee  who
 is  employed  for  at  least an additional six consecutive months by the
 qualified employer in a part-time job of at least twenty hours per  week
 or  ten  hours  per week when the qualified employee is enrolled in high
 school full-time, and (iii) an additional fifteen  hundred  dollars  for
 each  qualified employee who is employed for at least an additional year
 after the completion of the time periods and satisfaction of the  condi-
 tions  set  forth in subparagraphs (i) and (ii) of this paragraph by the
 qualified employer in a full-time job or seven hundred fifty dollars for
 each qualified employee who is employed for at least an additional  year
 after  the completion of the time periods and satisfaction of the condi-
 tions set forth in subparagraphs (i) and (ii) of this paragraph  by  the
 qualified  employer in a part-time job of at least twenty hours per week
 or ten hours per week when the qualified employee is  enrolled  in  high
 school  full-time. For purposes of this subdivision, the term "qualified
 employee" shall have the same meaning as set forth in subdivision (b) of
 section twenty-five-a of the  labor  law.  The  portion  of  the  credit
 described in subparagraph (i) of this paragraph shall be allowed for the
 taxable  year in which the wages are paid to the qualified employee, the
 portion of the credit described in subparagraph (ii) of  this  paragraph
 shall  be  allowed in the taxable year in which the additional six month
 period ends, and the portion of the  credit  described  in  subparagraph
 (iii)  of  this  paragraph shall be allowed in the taxable year in which
 the additional year after the first year of employment ends] THE  AMOUNT
 LISTED  ON  THE  ANNUAL  FINAL  CERTIFICATE  OF TAX CREDIT ISSUED BY THE
 COMMISSIONER OF LABOR PURSUANT TO SECTION  TWENTY-FIVE-A  OF  THE  LABOR
 LAW.    IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE
 EMPLOYER SHALL BE ENTITLED TO CLAIM THE  CREDIT  AS  CALCULATED  ON  THE
 ANNUAL  FINAL  CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR RETURN FOR
 WHICH THE ANNUAL FINAL CERTIFICATE OF TAX  CREDIT  WAS  ISSUED.  IF  THE
 QUALIFIED  EMPLOYER'S  TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL
 BE ENTITLED TO CLAIM THE  CREDIT  AS  CALCULATED  ON  THE  ANNUAL  FINAL
 CERTIFICATE  OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOM-
 PASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX  CREDIT  IS
 ISSUED.  FOR  THE  PURPOSES  OF  THIS  SUBDIVISION,  THE TERM "QUALIFIED
 EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF
 SECTION TWENTY-FIVE-A OF THE LABOR LAW.
   § 6. Paragraph (c) of subdivision 36 of section 210-B of the tax  law,
 as  added  by section 17 of part A of chapter 59 of the laws of 2014, is
 amended to read as follows:
   (c) The taxpayer [may] SHALL be required to attach to its  tax  return
 its  ANNUAL  FINAL certificate of [eligibility] TAX CREDIT issued by the
 commissioner of labor pursuant to section  twenty-five-a  of  the  labor
 law. In no event shall the taxpayer be allowed a credit greater than the
 amount  of  the credit listed on the ANNUAL FINAL certificate of [eligi-
 bility] TAX CREDIT.  Notwithstanding any provision of  this  chapter  to

 S. 7509                            31                            A. 9509
 
 the  contrary,  the  commissioner  and  the commissioner's designees may
 release the names and addresses of any taxpayer claiming this credit and
 the amount of the credit earned by the taxpayer.  Provided, however,  if
 a  taxpayer  claims  this  credit  because  it  is a member of a limited
 liability company or a partner in a  partnership,  only  the  amount  of
 credit  earned by the entity and not the amount of credit claimed by the
 taxpayer may be released.
   § 7. Paragraph 1 of subsection (tt) of section 606 of the tax law,  as
 amended  by  section  3 of part AA of chapter 56 of the laws of 2015, is
 amended to read as follows:
   (1) A taxpayer that has been certified by the commissioner of labor as
 a qualified employer pursuant to section twenty-five-a of the labor  law
 shall  be allowed a credit against the tax imposed by this article equal
 to (A) [five] SEVEN hundred FIFTY dollars per month for up to six months
 for each qualified employee the employer employs in a full-time  job  or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months  for  each qualified employee the employer employs in a part-time
 job of at least twenty hours per week or ten hours  per  week  when  the
 qualified  employee  is  enrolled in high school full-time, and (B) [one
 thousand] FIFTEEN HUNDRED dollars for each  qualified  employee  who  is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied  employer  in a full-time job or [five] SEVEN hundred FIFTY dollars
 for each qualified employee who is employed for at least  an  additional
 six  CONSECUTIVE  months by the qualified employer in a part-time job of
 at least twenty hours per week or ten hours per week when the  qualified
 employee  is  enrolled  in  high school full-time, and (C) an additional
 [one thousand] FIFTEEN HUNDRED dollars for each qualified  employee  who
 is employed for at least an additional year after the [first year of the
 employee's  employment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION
 OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS  SUBSECTION
 by  the  qualified  employer  in a full-time job or [five] SEVEN hundred
 FIFTY dollars for each qualified employee who is employed for  at  least
 an  additional  year after the [first year of the employee's employment]
 COMPLETION OF THE TIME PERIODS AND SATISFACTION OF  THE  CONDITIONS  SET
 FORTH  IN  SUBPARAGRAPHS  A  AND  B  OF THIS SUBSECTION by the qualified
 employer in a part-time job of at least twenty hours  per  week  or  ten
 hours  per  week  when the qualified employee is enrolled in high school
 full-time. A taxpayer that is a partner in a partnership,  member  of  a
 limited  liability  company  or shareholder in an S corporation that has
 been certified by the commissioner of  labor  as  a  qualified  employer
 pursuant  to section twenty-five-a of the labor law shall be allowed its
 pro rata share of the credit earned by the partnership, limited  liabil-
 ity  company or S corporation. For purposes of this subsection, the term
 "qualified employee" shall have the same meaning as set forth in  subdi-
 vision (b) of section twenty-five-a of the labor law. The portion of the
 credit  described in subparagraph (A) of this paragraph shall be allowed
 for the taxable year in which  the  wages  are  paid  to  the  qualified
 employee,  the  portion  of  the credit described in subparagraph (B) of
 this paragraph shall be allowed in the taxable year in which  the  addi-
 tional six month period ends, and the portion of the credit described in
 subparagraph  (C) of this paragraph shall be allowed in the taxable year
 in which the additional year after the first year of employment ends.
   § 8. Paragraph 1 of subsection (tt) of section 606 of the tax law,  as
 amended by section 7 of this act, is amended to read as follows:
   (1) A taxpayer that has been certified by the commissioner of labor as
 a  qualified employer pursuant to section twenty-five-a of the labor law

 S. 7509                            32                            A. 9509
 
 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS-
 SIONER shall be allowed a credit against the tax imposed by this article
 equal to [(A) seven hundred fifty dollars per month for up to six months
 for  each  qualified employee the employer employs in a full-time job or
 three hundred seventy-five dollars per month for up to  six  months  for
 each  qualified  employee  the employer employs in a part-time job of at
 least twenty hours per week or ten hours per  week  when  the  qualified
 employee  is  enrolled in high school full-time, and (B) fifteen hundred
 dollars for each qualified employee who is  employed  for  at  least  an
 additional  six  consecutive months by the qualified employer in a full-
 time job or seven hundred fifty dollars for each qualified employee  who
 is  employed  for  at  least an additional six consecutive months by the
 qualified employer in a part-time job of at least twenty hours per  week
 or  ten  hours  per week when the qualified employee is enrolled in high
 school full-time, and (C) an additional fifteen hundred dollars for each
 qualified employee who is employed for at least an additional year after
 the completion of the time periods and satisfaction  of  the  conditions
 set  forth  in subparagraphs A and B of this subsection by the qualified
 employer in a full-time job or seven  hundred  fifty  dollars  for  each
 qualified employee who is employed for at least an additional year after
 the  completion  of  the time periods and satisfaction of the conditions
 set forth in subparagraphs A and B of this subsection by  the  qualified
 employer  in  a  part-time  job of at least twenty hours per week or ten
 hours per week when the qualified employee is enrolled  in  high  school
 full-time]  THE  AMOUNT  LISTED  ON  THE ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO  SECTION  TWENTY-
 FIVE-A  OF THE LABOR LAW. A taxpayer that is a partner in a partnership,
 member of a limited liability company or shareholder in an S corporation
 that has [been certified by] RECEIVED ITS ANNUAL  FINAL  CERTIFICATE  OF
 TAX CREDIT FROM the commissioner of labor as a qualified employer pursu-
 ant  to  section twenty-five-a of the labor law shall be allowed its pro
 rata share of the credit earned by the  partnership,  limited  liability
 company  or  S  corporation.  [For purposes of this subsection, the term
 "qualified employee" shall have the same meaning as set forth in  subdi-
 vision (b) of section twenty-five-a of the labor law. The portion of the
 credit  described in subparagraph (A) of this paragraph shall be allowed
 for the taxable year in which  the  wages  are  paid  to  the  qualified
 employee,  the  portion  of  the credit described in subparagraph (B) of
 this paragraph shall be allowed in the taxable year in which  the  addi-
 tional six month period ends, and the portion of the credit described in
 subparagraph  (C) of this paragraph shall be allowed in the taxable year
 in which the additional year after the first year of  employment  ends.]
 IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOY-
 ER  SHALL  BE  ENTITLED  TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL
 FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR  RETURN  FOR  WHICH
 THE  ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED
 EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED
 TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES  THE  DATE  ON
 WHICH  THE  ANNUAL  FINAL  CERTIFICATE OF TAX CREDIT IS ISSUED.  FOR THE
 PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED  EMPLOYEE"  SHALL  HAVE
 THE   SAME   MEANING   AS  SET  FORTH  IN  SUBDIVISION  (B)  OF  SECTION
 TWENTY-FIVE-A OF THE LABOR LAW.
   § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law,  as
 added  by  section  3  of  part  D of chapter 56 of the laws of 2011, is
 amended to read as follows:

 S. 7509                            33                            A. 9509
 
   (3) The taxpayer [may] SHALL be required to attach to its  tax  return
 its  ANNUAL  FINAL certificate of [eligibility] TAX CREDIT issued by the
 commissioner of labor pursuant to section  twenty-five-a  of  the  labor
 law. In no event shall the taxpayer be allowed a credit greater than the
 amount  of  the credit listed on the ANNUAL FINAL certificate of [eligi-
 bility] TAX CREDIT. Notwithstanding any provision of this chapter to the
 contrary, the commissioner and the commissioner's designees may  release
 the  names  and  addresses  of any taxpayer claiming this credit and the
 amount of the credit earned by the taxpayer.   Provided, however,  if  a
 taxpayer  claims this credit because it is a member of a limited liabil-
 ity company, a partner in a partnership, or a shareholder in a  subchap-
 ter  S  corporation,  only the amount of credit earned by the entity and
 not the amount of credit claimed by the taxpayer may be released.
   § 10. This act shall take effect immediately,  provided  however  that
 (i)  section  one  of  this act shall apply to tax years beginning on or
 after January 1, 2018; (ii) sections four and seven of  this  act  shall
 apply  to  tax  years  beginning  on or after January 1, 2018 and before
 January 1, 2019; and (iii) sections two, three, five,  six,  eight,  and
 nine  of  this  act shall take effect January 1, 2019 and shall apply to
 tax years beginning on or after January 1, 2019.
 
                                  PART S
 
   Section 1. Section 33 of the tax law, as added by section 1 of part  Y
 of chapter 57 of the laws of 2010, is amended to read as follows:
   §  33.  Temporary  deferral of certain tax credits. 1. (a) For taxable
 years beginning on or after January first, two thousand  [ten]  EIGHTEEN
 and before January first, two thousand [thirteen] TWENTY-ONE, the excess
 over  two  million dollars of the total amount of the tax credits speci-
 fied in subdivision three of this section that in each of those  taxable
 years  would otherwise be used to reduce the taxpayer's tax liability to
 the amount otherwise specified in this chapter or be refunded or credit-
 ed as an overpayment will be deferred to and used or refunded in taxable
 years beginning on or after January first, two thousand [thirteen] TWEN-
 TY-ONE in accordance with the provisions of section thirty-four of  this
 article. Interest shall not be paid on the amounts of credit deferred.
   (b) To determine the amount of each tax credit allowed for the taxable
 year  to  be  used,  refunded or credited as an overpayment the taxpayer
 shall multiply the amount of each credit subject to deferral that  would
 have been used, refunded or credited as an overpayment in the absence of
 this  section  by  a  fraction,  the  numerator  of which is two million
 dollars, and the denominator of which is the total amount of the taxpay-
 er's credits subject to deferral pursuant to subdivision three  of  this
 section  that  would have been used, refunded or credited as an overpay-
 ment for the taxable year in the absence of this section. The product is
 the amount of such credit that is  not  subject  to  deferral  and  thus
 allowed to be used, refunded or credited as an overpayment for the taxa-
 ble year.
   2.  Taxpayers  shall  calculate  and  make  any estimated tax payments
 required to be made by taking  into  account  the  deferral  of  credits
 required  by this section. Taxpayers shall calculate any mandatory first
 installment payments made on or after the effective date of this section
 as if the deferral of credits required  by  this  section  had  been  in
 effect  for  the  taxable  year upon which that installment is based. In
 addition, for taxable years beginning on or  after  January  first,  two
 thousand  [ten] EIGHTEEN and before January first, two thousand [eleven]

 S. 7509                            34                            A. 9509
 
 NINETEEN, (a) no addition to tax under subsection  (c)  of  section  six
 hundred  eighty-five  of  this  chapter or subsection (c) of section one
 thousand eighty-five of this chapter shall be imposed  with  respect  to
 any  underpayment  attributable to the deferral required by this section
 of any estimated taxes that are required to be paid prior to the  enact-
 ment  of  this  section,  provided  that  the taxpayer timely made those
 payments; and (b) the required installment of estimated tax described in
 clause (ii) of subparagraph (B) of paragraph three of subsection (c)  of
 section  six  hundred  eighty-five of this chapter, and the exception to
 addition for underpayment of estimated tax described in paragraph one or
 two of subsection (d) of section one thousand eighty-five of this  chap-
 ter,  in relation to the preceding year's return, shall be calculated as
 if the deferral required by this section had been  in  effect  for  that
 entire preceding year.
   3.  (a)  This  section  shall  apply  to the credits allowed under the
 following provisions in article nine-a of this chapter and any  applica-
 ble  counterpart  provisions  in articles nine, twenty-two, [thirty-two]
 and thirty-three of this chapter:
   Section [210(12)] 210-B(1) investment tax credit
   Section [210(12-B)] 210-B(3) empire zone investment tax credit
   Section [210(12-C)] 210-B(4) empire zone employment incentive credit
   Section [210(12-D)] 210-B(2) employment incentive credit
   Section [210(12-E)] 210-B(7) QETC employment credit
   Section [210(12-F)] 210-B(8) QETC capital tax credit
   [Section 210(12-G) QETC facilities, operations, and training credit]
   Section [210(17)] 210-B(9) special additional mortgage  recording  tax
 credit
   [Section 210(19) empire zone wage tax credit
   Section 210(20) empire zone capital tax credit]
   Section [210(21-a)] 210-B(10) credit for servicing certain mortgages
   Section  [210(23)]  210-B(12)  credit  for  employment of persons with
 disabilities
   Section [210(24)] 210-B(30) alternative  fuels  AND  ELECTRIC  VEHICLE
 RECHARGING PROPERTY credit
   Section  [210(25)]  210-B(13)  credit  for  purchase  of  an automated
 external defibrillator
   Section [210(27)] 210-B(5) QEZE credit for real property taxes
   Section [210(28)] 210-B(6) QEZE tax reduction credit
   Section [210(30)] 210-B(15) low income housing credit
   Section [210(31)] 210-B(16) green building credit
   Section [210(33)] 210-B(17) brownfield redevelopment tax credit
   Section [210(34)] 210-B(18)  remediated  brownfield  credit  for  real
 property taxes for qualified sites
   Section [210(35)] 210-B(19) environmental remediation insurance credit
   Section [210(37)] 210-B(21) security training tax credit
   [Section  210(37)  credit  for fuel cell electric generating equipment
 expenditures]
   Section [210(38)] 210-B(22) conservation easement tax credit
   [Section 210(38) empire state commercial production credit]
   Section [210(38)] 210-B(24) biofuel production credit
   Section [210(39)] 210-B(25) clean heating fuel credit
   Section [210(40)] 210-B(26)  credit  for  rehabilitation  of  historic
 properties
   Section [210(40)] 210-B(38) credit for companies who provide transpor-
 tation to individuals with disabilities
   SECTION 210-B(11) AGRICULTURAL PROPERTY TAX CREDIT

 S. 7509                            35                            A. 9509
 
   SECTION  210-B(35)  ECONOMIC TRANSFORMATION AND FACILITY REDEVELOPMENT
 CREDIT
   SECTION 210-B(39) ALCOHOLIC BEVERAGE PRODUCTION CREDIT
   SECTION 210-B(40) MINIMUM WAGE REIMBURSEMENT CREDIT
   SECTION 210-B(41) THE TAX-FREE NY AREA TAX ELIMINATION CREDIT
   SECTION 210-B(43) REAL PROPERTY TAX CREDIT FOR MANUFACTURERS
   SECTION 210-B(44) THE TAX-FREE NY AREA EXCISE TAX ON TELECOMMUNICATION
 SERVICES CREDIT
   SECTION 210-B(47) MUSICAL AND THEATRICAL PRODUCTION CREDIT
   SECTION 210-B(48) WORKERS WITH DISABILITIES TAX CREDIT
   SECTION 210-B(51) FARM WORKFORCE RETENTION CREDIT
   (b)  This  section  shall  also  apply  to  the credits allowed by the
 following sections:
   [Section 186-a(9) power for jobs credit]
   Section 606(g-1) solar energy system equipment credit
   Section 606(pp) historic homeownership rehabilitation credit
   Section 1511(k) credit for certain investments  in  certified  capital
 companies
   §  2.  Subdivisions  1 and 2 of section 34 of the tax law, as added by
 section 2 of part Y of chapter 57 of the laws of 2010,  are  amended  to
 read as follows:
   1.  The amounts of nonrefundable credits that are deferred pursuant to
 section thirty-three of this article in taxable years  beginning  on  or
 after  January  first,  two  thousand  [ten] EIGHTEEN and before January
 first, two thousand  [thirteen]  TWENTY-ONE  shall  be  accumulated  and
 constitute  the taxpayer's temporary deferral nonrefundable payout cred-
 it. The taxpayer may first claim this credit in the taxable year  begin-
 ning  on  or after January first, two thousand [thirteen] TWENTY-ONE and
 before January first, two thousand [fourteen] TWENTY-TWO.  The  taxpayer
 shall  be allowed to claim this credit until the accumulated amounts are
 exhausted. The credit shall be allowed against  the  taxpayer's  tax  as
 provided  in  the  provisions referenced in paragraph (a) of subdivision
 three of this section.
   2. The amounts of refundable credits that  are  deferred  pursuant  to
 section  thirty-three  of  this article in taxable years beginning on or
 after January first, two thousand  [ten]  EIGHTEEN  and  before  January
 first,  two  thousand  [thirteen]  TWENTY-ONE  shall  be accumulated and
 constitute the taxpayer's temporary deferral refundable  payout  credit.
 In  the  taxable  year beginning on or after January first, two thousand
 [thirteen] TWENTY-ONE and before January first, two thousand  [fourteen]
 TWENTY-TWO,  the  taxpayer  shall  be allowed to claim a credit equal to
 fifty percent of the amount accumulated. In the taxable  year  beginning
 on or after January first, two thousand [fourteen] TWENTY-TWO and before
 January  first,  two thousand [fifteen] TWENTY-THREE, the taxpayer shall
 be allowed to claim a  credit  equal  to  seventy-five  percent  of  the
 balance  of  the amount accumulated. In the taxable year beginning on or
 after January first, two  thousand  [fifteen]  TWENTY-THREE  and  before
 January first, two thousand [sixteen] TWENTY-FOUR, the taxpayer shall be
 allowed  to  claim a credit equal to the remaining balance of the amount
 accumulated. The credit shall be allowed against the taxpayer's  tax  as
 provided  in  the  provisions referenced in paragraph (b) of subdivision
 three of this section.
   § 3. This act shall take effect immediately.
 
                                  PART T

 S. 7509                            36                            A. 9509
 
   Section 1. Subdivision (a) of section 1412 of the tax law, as added by
 chapter 61 of the laws of 1989, is amended to read as follows:
   (a)  A  grantor  or  grantee claiming to have erroneously paid the tax
 imposed by this article or some other person designated by such  grantor
 or  grantee  may file an application for refund within [two] THREE years
 from the date of payment. Such  application  shall  be  filed  with  the
 commissioner  [of  taxation  and  finance]  on  a  form  which  he shall
 prescribe.
   § 2. Subdivision (b) of section 1402-a of the tax  law,  as  added  by
 chapter 61 of the laws of 1989, is amended to read as follows:
   (b) Notwithstanding the provisions of subdivision (a) of section four-
 teen  hundred  four  of this article, the additional tax imposed by this
 section shall be paid by the grantee. If the  grantee  [is  exempt  from
 such  tax, the grantor shall have the duty to pay the tax] 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 GRANTEE IS EXEMPT FROM
 SUCH TAX, THE GRANTOR SHALL HAVE THE DUTY TO  PAY  THE  TAX.  WHERE  THE
 GRANTOR  HAS  THE  DUTY TO PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO
 PAY, SUCH TAX SHALL BE THE JOINT AND SEVERAL LIABILITY  OF  THE  GRANTOR
 AND THE GRANTEE.
   §  3.  This act shall take effect immediately; provided, however, that
 section two of this act shall apply to conveyances occurring on or after
 the fifteenth day after this act shall have become a law.
 
                                  PART U
 
   Section 1. Subdivision 6 of section 470 of the tax law,  as  added  by
 chapter 61 of the laws of 1989, is amended to read as follows:
   6.  "Wholesale  price."  The  [established]  INVOICE price for which a
 manufacturer OR OTHER PERSON sells tobacco products  to  a  distributor,
 INCLUDING  THE  FEDERAL  EXCISE  TAXES PAID BY THE MANUFACTURER OR OTHER
 PERSON, before the allowance of any discount, trade allowance, rebate or
 other reduction.
   [In the absence of such an established price, a manufacturer's invoice
 price of any tobacco product shall be presumptive evidence of the whole-
 sale price of such tobacco product, and in  its  absence  the  price  at
 which  such  tobacco products were purchased shall be presumed to be the
 wholesale price, unless evidence of a lower  wholesale  price  shall  be
 established or any industry standard of markups relating to the purchase
 price in relation to the wholesale price shall be established.]
   §  2.  This act shall take effect on September 1, 2018 and shall apply
 to all tobacco products possessed in this state for  sale  on  or  after
 such date.
 
                                  PART V
 
   Section  1.  Subparagraph  (A)  of  paragraph  1 of subdivision (b) of
 section 1105 of the tax law, as amended by section 9 of part S of  chap-
 ter 85 of the laws of 2002, is amended to read as follows:
   (A)  gas,  electricity,  refrigeration  and  steam, and gas, electric,
 refrigeration and steam service of whatever nature, INCLUDING THE TRANS-
 PORTATION, TRANSMISSION OR DISTRIBUTION OF GAS OR ELECTRICITY,  EVEN  IF
 SOLD SEPARATELY;
   § 2. Section 1105-C of the tax law is REPEALED.

 S. 7509                            37                            A. 9509

   §  3.  Subparagraph  (xi) of paragraph 4 of subdivision (a) of section
 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of
 the laws of 2016, is amended to read as follows:
   (xi) [shall provide that section eleven hundred five-C of this chapter
 does  not  apply to such taxes, and] shall tax receipts from every sale,
 other than sales for resale, of gas service or electric service of what-
 ever nature, including the transportation, transmission or  distribution
 of gas or electricity, even if sold separately, at the rate set forth in
 clause one of subparagraph (i) of the opening paragraph of this section;
   § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis-
 trative  code  of the city of New York, as amended by chapter 200 of the
 laws of 2009, is amended to read as follows:
   (8) [makes inapplicable section eleven hundred five-C of the tax  law,
 and]  imposes  tax  on  receipts  from  every sale, other than sales for
 resale, of gas service or electric service of whatever nature, including
 the transportation, transmission or distribution of gas or  electricity,
 even  if  sold  separately,  at the rate set forth in subdivision (a) of
 this section.
   § 5. This act shall take effect  immediately;  provided  however  that
 this  act  shall  apply to sales made and services rendered on and after
 June 1, 2018 whether or not such sales and services are rendered under a
 prior contract.
 
                                  PART W
 
   Section 1. Subdivision (f) of section 1115 of the tax law, as  amended
 by chapter 205 of the laws of 1968, is amended to read as follows:
   (f) (1) Services rendered by a veterinarian licensed and registered as
 required  by  the education law which constitute the practice of veteri-
 nary medicine as defined in  said  law,  including  hospitalization  for
 which  no  separate boarding charge is made, shall not be subject to tax
 under paragraph (3) of subdivision (c) of section eleven  hundred  five,
 but  the  exemption allowed by this subdivision shall not apply to other
 services provided by a veterinarian to pets and other  animals,  includ-
 ing,  but  not  limited to, boarding, grooming and clipping. Articles of
 tangible personal property designed for use in some manner  relating  to
 domestic animals or poultry, when sold by such a veterinarian, shall not
 be  subject  to tax under subdivision (a) of section eleven hundred five
 or under section eleven hundred ten. However, the sale of any such arti-
 cles of tangible personal property to a veterinarian shall not be deemed
 a sale for resale within the meaning  of  [pargraph]  PARAGRAPH  (4)  of
 subdivision  (b)  of  section eleven hundred one and shall not be exempt
 from retail sales tax.
   (2) DRUGS OR MEDICINE SOLD TO OR USED BY A  VETERINARIAN  FOR  USE  IN
 RENDERING  SERVICES  THAT  ARE  EXEMPT PURSUANT TO PARAGRAPH ONE OF THIS
 SUBDIVISION TO LIVESTOCK OR POULTRY USED IN THE PRODUCTION FOR  SALE  OF
 TANGIBLE  PERSONAL  PROPERTY  BY FARMING, OR SOLD TO A PERSON QUALIFYING
 FOR THE EXEMPTION PROVIDED FOR IN PARAGRAPH SIX OF  SUBDIVISION  (A)  OF
 THIS SECTION FOR USE BY SUCH PERSON ON SUCH LIVESTOCK OR POULTRY.
   §  2.  Subdivision  (a)  of section 1119 of the tax law, as amended by
 chapter 686 of the laws of 1986 and as further amended by section 15  of
 part  GG  of  chapter  63  of  the  laws  of 2000, is amended to read as
 follows:
   (a) Subject to the conditions and limitations provided for  herein,  a
 refund or credit shall be allowed for a tax paid pursuant to subdivision
 (a)  of section eleven hundred five or section eleven hundred ten (1) on

 S. 7509                            38                            A. 9509
 
 the sale or use of tangible personal property if the purchaser or  user,
 in  the  performance  of  a  contract,  later incorporates that tangible
 personal property into real property located outside this state, (2)  on
 the  sale or use of tangible personal property purchased in bulk, or any
 portion thereof, which is stored and not used by the purchaser  or  user
 within  this  state  if  that property is subsequently reshipped by such
 purchaser or user to a point outside this state  for  use  outside  this
 state,  (3)  on  the  sale to or use by a contractor or subcontractor of
 tangible personal property if that property is used by him solely in the
 performance of a  pre-existing  lump  sum  or  unit  price  construction
 contract,  (4) on the sale or use within this state of tangible personal
 property, not purchased for resale, if the use of such property in  this
 state  is restricted to fabricating such property (including incorporat-
 ing it into or assembling it with  other  tangible  personal  property),
 processing,  printing  or  imprinting such property and such property is
 then shipped to a point outside this state for use outside  this  state,
 [(5)  on  the  sale  to or use by a veterinarian of drugs or medicine if
 such drugs or medicine  are  used  by  such  veterinarian  in  rendering
 services, which are exempt pursuant to subdivision (f) of section eleven
 hundred  fifteen  of  this  chapter, to livestock or poultry used in the
 production for sale of tangible personal property by farming or if  such
 drugs  or  medicine  are  sold  to a person qualifying for the exemption
 provided for in paragraph (6)  of  subdivision  (a)  of  section  eleven
 hundred fifteen of this chapter for use by such person on such livestock
 or  poultry,] or (6) on the sale of tangible personal property purchased
 for use in  constructing,  expanding  or  rehabilitating  industrial  or
 commercial  real property (other than property used or to be used exclu-
 sively by one or more registered vendors primarily engaged in the retail
 sale of tangible personal property) located in an area designated as  an
 empire zone pursuant to article eighteen-B of the general municipal law,
 but  only to the extent that such property becomes an integral component
 part of the real property. (For the purpose of clause (3) of the preced-
 ing sentence, the term "pre-existing lump sum or unit price construction
 contract" shall mean a contract for the construction of improvements  to
 real  property  under  which  the  amount  payable  to the contractor or
 subcontractor is fixed without regard to the costs incurred  by  him  in
 the  performance  thereof,  and  which  (i) was irrevocably entered into
 prior to the date of the enactment of this article or the enactment of a
 law increasing the rate of tax  imposed  under  this  article,  or  (ii)
 resulted  from the acceptance by a governmental agency of a bid accompa-
 nied by a bond or  other  performance  guaranty  which  was  irrevocably
 submitted  prior to such date.) Where the tax on the sale or use of such
 tangible personal property has been paid to the vendor, to  qualify  for
 such  refund or credit, such tangible personal property must be incorpo-
 rated into real property as required in clause (1) above,  reshipped  as
 required  in  clause  (2) above, used in the manner described in clauses
 (3), (4)[, (5)] and (6) above within three years after the date such tax
 was payable to the tax commission by  the  vendor  pursuant  to  section
 eleven  hundred  thirty-seven.  Where the tax on the sale or use of such
 tangible personal property was paid by the applicant for the  credit  or
 refund  directly  to  the  tax commission, to qualify for such refund or
 credit, such tangible personal property must be incorporated  into  real
 property  as  required  in  clause  (1)  above, reshipped as required in
 clause (2) above, used in the manner described  in  clauses  (3),  (4)[,
 (5)]  and (6) above within three years after the date such tax was paya-
 ble to the tax commission by such applicant pursuant to this article. An

 S. 7509                            39                            A. 9509
 
 application for a refund or credit pursuant  to  this  section  must  be
 filed  with  such commission within the time provided by subdivision (a)
 of section eleven hundred thirty-nine. Such application shall be in such
 form as the tax commission may prescribe. Where an application for cred-
 it has been filed, the applicant may immediately take such credit on the
 return  which  is  due  coincident with or immediately subsequent to the
 time that he files his application for credit. However,  the  taking  of
 the  credit  on the return shall be deemed to be part of the application
 for credit and shall be subject to the provisions in respect to applica-
 tions for credit in section eleven hundred thirty-nine  as  provided  in
 subdivision (e) of such section. With respect to a sale or use described
 in  clause  (3)  above  where  a  pre-existing  lump  sum  or unit price
 construction contract was irrevocably entered into prior to the date  of
 the  enactment of this article or the bid accompanied by the performance
 guaranty was irrevocably submitted to the governmental agency  prior  to
 such date, the purchaser or user shall be entitled to a refund or credit
 only  of  the  amount by which the tax on such sale or use imposed under
 this article plus any tax imposed under the authority of  article  twen-
 ty-nine exceeds the amount computed by applying against such sale or use
 the  local  rate of tax, if any, in effect at the time such contract was
 entered into or such bid was submitted.
   In the case of the enactment of a  law  increasing  the  rate  of  tax
 imposed by this article, the purchaser or user shall be entitled only to
 a refund or credit of the amount by which the increased tax on such sale
 or use imposed under this article plus any tax imposed under the author-
 ity  of  article  twenty-nine  exceeds  the  amount computed by applying
 against such sale or use the state and local rates of tax in  effect  at
 the time such contract was entered into or such bid was submitted.
   § 3. This act shall take effect June 1, 2018, and shall apply to sales
 made and uses occurring on and after such date.

                                  PART X
 
   Section 1. Subdivision 1 of section 1131 of the tax law, as amended by
 chapter 576 of the laws of 1994, is amended to read as follows:
   (1)  "Persons  required to collect tax" or "person required to collect
 any tax imposed by this article" shall include: every vendor of tangible
 personal property or services; every recipient of amusement charges; and
 every operator of a hotel. 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 liabil-
 ity 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)  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.
   §  2.  Subdivision  (a)  of section 1133 of the tax law, as amended by
 chapter 621 of the laws of 1967, is amended to read as follows:

 S. 7509                            40                            A. 9509
 
   (a) (1) Except as otherwise provided in PARAGRAPH TWO OF THIS SUBDIVI-
 SION AND IN section eleven hundred  thirty-seven  OF  THIS  PART,  every
 person  required  to  collect  any  tax imposed by this article shall be
 personally liable for the tax  imposed,  collected  or  required  to  be
 collected  under this article. Any such person shall have the same right
 in respect to collecting the tax from his  customer  or  in  respect  to
 nonpayment  of  the tax by the customer as if the tax were a part of the
 purchase price of the property or service, amusement charge or rent,  as
 the  case  may be, and payable at the same time; provided, however, that
 the tax commission shall be joined as a party in any action or  proceed-
 ing brought to collect the tax.
   (2)  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  THIS ARTICLE: (I) THE
 COMMISSIONER SHALL GRANT THE RELIEF DESCRIBED IN SUBPARAGRAPH  (III)  OF
 THIS  PARAGRAPH TO A LIMITED PARTNER OF A LIMITED PARTNERSHIP (BUT NOT A
 PARTNER OF A LIMITED LIABILITY PARTNERSHIP) OR A  MEMBER  OF  A  LIMITED
 LIABILITY  COMPANY IF SUCH LIMITED PARTNER OR MEMBER DEMONSTRATES TO THE
 SATISFACTION OF THE COMMISSIONER THAT SUCH LIMITED PARTNER'S OR MEMBER'S
 OWNERSHIP INTEREST AND THE PERCENTAGE OF THE DISTRIBUTIVE SHARE  OF  THE
 PROFITS  AND  LOSSES  OF  SUCH  LIMITED PARTNERSHIP OR LIMITED LIABILITY
 COMPANY ARE EACH LESS THAN FIFTY PERCENT, AND SUCH  LIMITED  PARTNER  OR
 MEMBER  WAS  NOT  UNDER  A  DUTY  TO ACT FOR SUCH LIMITED PARTNERSHIP OR
 LIMITED LIABILITY COMPANY IN COMPLYING  WITH  ANY  REQUIREMENT  OF  THIS
 ARTICLE. PROVIDED, HOWEVER, THE COMMISSIONER MAY DENY AN APPLICATION FOR
 RELIEF  TO ANY SUCH LIMITED PARTNER OR MEMBER WHO THE COMMISSIONER FINDS
 HAS ACTED ON BEHALF OF SUCH LIMITED  PARTNERSHIP  OR  LIMITED  LIABILITY
 COMPANY  IN  COMPLYING  WITH ANY REQUIREMENT OF THIS ARTICLE OR HAS BEEN
 CONVICTED OF A CRIME PROVIDED IN THIS CHAPTER  OR  WHO  HAS  A  PAST-DUE
 LIABILITY,  AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V
 OF THIS CHAPTER.
   (II) SUCH LIMITED PARTNER OR MEMBER MUST  SUBMIT  AN  APPLICATION  FOR
 RELIEF,  ON  A  FORM PRESCRIBED BY THE COMMISSIONER, AND THE INFORMATION
 PROVIDED IN SUCH APPLICATION MUST BE TRUE AND COMPLETE IN  ALL  MATERIAL
 RESPECTS.  PROVIDING  MATERIALLY FALSE OR FRAUDULENT INFORMATION ON SUCH
 APPLICATION SHALL DISQUALIFY SUCH LIMITED  PARTNER  OR  MEMBER  FOR  THE
 RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, SHALL VOID ANY
 AGREEMENT  WITH  THE COMMISSIONER WITH RESPECT TO SUCH RELIEF, AND SHALL
 RESULT IN SUCH LIMITED PARTNER OR MEMBER BEARING  STRICT  LIABILITY  FOR
 THE  TOTAL  AMOUNT OF TAX, INTEREST AND PENALTY OWED BY THEIR RESPECTIVE
 LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY PURSUANT TO THIS SUBDI-
 VISION.
   (III) A LIMITED PARTNER OF A LIMITED PARTNERSHIP OR MEMBER OF A LIMIT-
 ED LIABILITY COMPANY, WHO MEETS THE REQUIREMENTS SET FORTH IN THIS PARA-
 GRAPH AND WHOSE APPLICATION FOR RELIEF IS APPROVED BY THE  COMMISSIONER,
 SHALL  BE  LIABLE  FOR  THE PERCENTAGE OF THE ORIGINAL SALES AND USE TAX
 LIABILITY OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR  LIMITED  LIABILITY
 COMPANY  THAT  REFLECTS  SUCH  LIMITED  PARTNER'S  OR MEMBER'S OWNERSHIP
 INTEREST OF DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED
 PARTNERSHIP OR LIMITED LIABILITY  COMPANY,  WHICHEVER  IS  HIGHER.  SUCH
 ORIGINAL  LIABILITY SHALL INCLUDE ANY INTEREST ACCRUED THEREON UP TO AND
 INCLUDING THE DATE OF PAYMENT BY SUCH LIMITED PARTNER OR MEMBER  AT  THE
 UNDERPAYMENT  RATE  SET  BY  THE COMMISSIONER PURSUANT TO SECTION ELEVEN
 HUNDRED FORTY-TWO OF THIS PART, AND SHALL BE REDUCED BY THE SUM  OF  ANY
 PAYMENTS MADE BY (A) THE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPA-
 NY;  (B) ANY PERSON REQUIRED TO COLLECT TAX NOT ELIGIBLE FOR RELIEF; AND
 (C) ANY PERSON REQUIRED TO COLLECT TAX WHO WAS ELIGIBLE FOR  RELIEF  BUT
 HAD  NOT  BEEN  APPROVED FOR RELIEF BY THE COMMISSIONER AT THE TIME SUCH

 S. 7509                            41                            A. 9509
 
 PAYMENT WAS MADE. PROVIDED, HOWEVER,  SUCH  LIMITED  PARTNER  OR  MEMBER
 SHALL  NOT BE LIABLE FOR ANY PENALTY OWED BY SUCH LIMITED PARTNERSHIP OR
 LIMITED LIABILITY COMPANY OR ANY OTHER PARTNER OR MEMBER OF SUCH LIMITED
 PARTNERSHIP  OR LIMITED LIABILITY COMPANY. ANY PAYMENT MADE BY A LIMITED
 PARTNER OR MEMBER PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH SHALL NOT
 BE CREDITED AGAINST THE LIABILITY OF OTHER LIMITED PARTNERS  OR  MEMBERS
 OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY WHO
 ARE  ELIGIBLE FOR THE SAME RELIEF; PROVIDED, HOWEVER THAT THE SUM OF THE
 AMOUNTS OWED BY ALL OF THE PERSONS REQUIRED TO COLLECT TAX OF A  LIMITED
 PARTNERSHIP  OR  LIMITED  LIABILITY  COMPANY  SHALL NOT EXCEED THE TOTAL
 LIABILITY OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY.
   § 3. This act shall take effect immediately.
 
                                  PART Y
 
   Section 1. Paragraph 1 of subdivision (a) of section 1115 of  the  tax
 law,  as  amended  by  section 1 of part II of chapter 59 of the laws of
 2014, is amended to read as follows:
   (1) (A) Food, food  products,  beverages,  dietary  foods  and  health
 supplements,  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 alcohol-
 ic beverages, 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.
   [The] (B) UNTIL MAY THIRTY FIRST, TWO THOUSAND TWENTY,  THE  food  and
 drink  excluded  from  the  exemption  provided by [this paragraph under
 subparagraphs] CLAUSES (i), (ii) and (iii) OF SUBPARAGRAPH (A)  of  this
 paragraph,  AND  BOTTLED  WATER,  shall be exempt under this [paragraph]
 SUBPARAGRAPH when sold for one dollar and fifty cents  or  less  through
 any  vending  machine  [activated by the use of] THAT ACCEPTS coin[,] OR
 currency[, credit card or debit card] ONLY OR WHEN SOLD FOR TWO  DOLLARS
 OR  LESS  THROUGH  ANY  VENDING MACHINE THAT ACCEPTS ANY FORM OF PAYMENT
 OTHER THAN COIN OR CURRENCY, WHETHER OR NOT  IT  ALSO  ACCEPTS  COIN  OR
 CURRENCY. [With the exception of the provision in this paragraph provid-
 ing  for  an exemption for certain food or drink sold for one dollar and
 fifty cents or less through vending machines, nothing  herein  shall  be
 construed as exempting food or drink from the tax imposed under subdivi-
 sion (d) of section eleven hundred five of this article.]
   § 2. This act shall take effect June 1, 2018, and shall apply to sales
 made and uses occurring on and after such date.
 
                                  PART Z
 
   Section  1. Section 2 of subpart R of part A of chapter 61 of the laws
 of 2017, amending the tax law relating to extending  the  expiration  of
 the  authorization  to the county of Genesee to impose an additional one
 percent of sales and compensating use  taxes,  is  amended  to  read  as
 follows:
   §  2.  Notwithstanding any other provision of law to the contrary, the
 one percent increase in sales and compensating use taxes authorized  for
 the  county of Genesee until November 30, [2019] 2020 pursuant to clause

 S. 7509                            42                            A. 9509
 
 (20) of subparagraph (i) of the opening paragraph of section 1210 of the
 tax law, as amended by section one of this act, shall be divided in  the
 same  manner  and  proportion  as  the  existing three percent sales and
 compensating use taxes in such county are divided.
   §  2.  Section  2  of subpart Z of part A of chapter 61 of the laws of
 2017, amending the tax law relating  to  the  imposition  of  sales  and
 compensating  use  taxes  by the county of Monroe, is amended to read as
 follows:
   § 2. Notwithstanding the provisions of subdivisions  (b)  and  (c)  of
 section 1262 and section 1262-g of the tax law, net collections, as such
 term is defined in section 1262 of the tax law, derived from the imposi-
 tion  of sales and compensating use taxes by the county of Monroe at the
 additional rate of one percent as authorized pursuant to clause (25)  of
 subparagraph  (i)  of  the  opening paragraph of section 1210 of the tax
 law, as amended by section one of this act, which are in addition to the
 current net collections derived from the imposition of such taxes at the
 three percent rate authorized by the opening paragraph of  section  1210
 of  the  tax law, shall be distributed and allocated as follows: for the
 period of December 1, 2017 through November 30,  [2019]  2020  in  cash,
 five  percent  to the school districts in the area of the county outside
 the city of Rochester, three percent to the  towns  located  within  the
 county,  one  and one-quarter percent to the villages located within the
 county, and ninety and three-quarters percent to the city  of  Rochester
 and  county  of  Monroe.  The  amount  of  the ninety and three-quarters
 percent to be distributed and allocated to the  city  of  Rochester  and
 county  of Monroe shall be distributed and allocated to each so that the
 combined total distribution and allocation to each from  the  sales  tax
 revenues  pursuant  to  sections 1262 and 1262-g of the tax law and this
 section shall result in the same  total  amount  being  distributed  and
 allocated  to  the city of Rochester and county of Monroe. The amount so
 distributed and allocated  to  the  county  shall  be  used  for  county
 purposes.  The  foregoing cash payments to the school districts shall be
 allocated on the basis of the enrolled public school pupils, thereof, as
 such term is used in subdivision (b) of section 1262  of  the  tax  law,
 residing in the county of Monroe. The cash payments to the towns located
 within the county of Monroe shall be allocated on the basis of the ratio
 which  the  population  of each town, exclusive of the population of any
 village or portion thereof located within a town,  bears  to  the  total
 population  of  the  towns,  exclusive of the population of the villages
 located within such towns. The cash payments  to  the  villages  located
 within the county shall be allocated on the basis of the ratio which the
 population of each village bears to the total population of the villages
 located  within  the county. The term population as used in this section
 shall have the same meaning as used in subdivision (b) of  section  1262
 of the tax law.
   §  3.  Section  3 of subpart EE of part A of chapter 61 of the laws of
 2017, amending the tax law relating to extending  the  authorization  of
 the county of Onondaga to impose an additional rate of sales and compen-
 sating use taxes, is amended to read as follows:
   §  3.  Notwithstanding  any contrary provision of law, net collections
 from the additional one percent rate of sales and compensating use taxes
 which may be imposed  by  the  county  of  Onondaga  during  the  period
 commencing  December 1, 2018 and ending November 30, [2019] 2020, pursu-
 ant to the authority of section 1210  of  the  tax  law,  shall  not  be
 subject  to any revenue distribution agreement entered into under subdi-
 vision (c) of section 1262 of the tax law, but shall  be  allocated  and

 S. 7509                            43                            A. 9509
 
 distributed  or  paid,  at least quarterly, as follows: (i) 1.58% to the
 county of Onondaga for any county purpose; (ii) 97.79% to  the  city  of
 Syracuse;  and  (iii)  .63%  to  the school districts in accordance with
 subdivision (a) of section 1262 of the tax law.
   §  4.  Section  2 of subpart GG of part A of chapter 61 of the laws of
 2017, amending the tax law relating to extending the  authority  of  the
 county  of Orange to impose an additional rate of sales and compensating
 use taxes, is amended to read as follows:
   § 2. Notwithstanding subdivision (c) of section 1262 of the  tax  law,
 net  collections  from any additional rate of sales and compensating use
 taxes which may be imposed by the county of  Orange  during  the  period
 commencing December 1, 2017, and ending November 30, [2019] 2020, pursu-
 ant  to  the  authority of section 1210 of the tax law, shall be paid to
 the county of Orange and shall be used by such county solely for  county
 purposes  and shall not be subject to any revenue distribution agreement
 entered into pursuant to the authority of  subdivision  (c)  of  section
 1262 of the tax law.
   §  5.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on June 29, 2017.
 
                                  PART AA
 
   Section 1. Section 1101 of the tax law is  amended  by  adding  a  new
 subdivision (e) to read as follows:
   (E)  WHEN  USED  IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED
 UNDER SUBDIVISION (A) OF SECTION ELEVEN  HUNDRED  FIVE  AND  BY  SECTION
 ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL MEAN:
   (1)  MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH
 A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY
 SUCH MARKETPLACE SELLER OR SELLERS. A  PERSON  "FACILITATES  A  SALE  OF
 TANGIBLE  PERSONAL  PROPERTY"  FOR  PURPOSES  OF THIS PARAGRAPH WHEN THE
 PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (I) SUCH PERSON  PROVIDES
 THE  FORUM  IN  WHICH, OR BY MEANS OF WHICH, THE SALE TAKES PLACE OR THE
 OFFER OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, BOOTH,  CATALOG,  AN
 INTERNET WEBSITE, OR SIMILAR FORUM; AND (II) SUCH PERSON OR AN AFFILIATE
 OF SUCH PERSON COLLECTS THE RECEIPTS PAID BY A CUSTOMER TO A MARKETPLACE
 SELLER  FOR  A  SALE  OF TANGIBLE PERSONAL PROPERTY, OR CONTRACTS WITH A
 THIRD PARTY TO COLLECT SUCH RECEIPTS. FOR PURPOSES  OF  THIS  PARAGRAPH,
 TWO  PERSONS  ARE  AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF
 MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT,  IN  THE  OTHER,  OR
 WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR
 INDIRECT,  IS  HELD  IN  EACH  OF SUCH PERSONS BY ANOTHER PERSON OR BY A
 GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH RESPECT TO  EACH
 OTHER.  NOTWITHSTANDING ANYTHING IN THIS PARAGRAPH, A PERSON WHO FACILI-
 TATES SALES EXCLUSIVELY BY MEANS OF THE INTERNET IS  NOT  A  MARKETPLACE
 PROVIDER  FOR  A SALES TAX QUARTER WHEN SUCH PERSON CAN SHOW THAT IT HAS
 FACILITATED LESS THAN ONE HUNDRED MILLION DOLLARS OF SALES ANNUALLY  FOR
 EVERY CALENDAR YEAR AFTER TWO THOUSAND SIXTEEN.
   (2)  MARKETPLACE  SELLER.  ANY  PERSON,  WHETHER OR NOT SUCH PERSON IS
 REQUIRED TO OBTAIN A  CERTIFICATE  OF  AUTHORITY  UNDER  SECTION  ELEVEN
 HUNDRED THIRTY-FOUR OF THIS ARTICLE, WHO HAS AN AGREEMENT WITH A MARKET-
 PLACE  PROVIDER  UNDER  WHICH  THE  MARKETPLACE PROVIDER WILL FACILITATE
 SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH PERSON WITHIN THE MEANING OF
 PARAGRAPH ONE OF THIS SUBDIVISION.
   § 2. Subdivision 1 of section 1131 of the tax law, as amended by chap-
 ter 576 of the laws of 1994, is amended to read as follows:

 S. 7509                            44                            A. 9509
 
   (1) "Persons required to collect tax" or "person required  to  collect
 any tax imposed by this article" shall include: every vendor of tangible
 personal  property  or  services;  every recipient of amusement charges;
 [and] every operator of a hotel, AND  EVERY  MARKETPLACE  PROVIDER  WITH
 RESPECT  TO  SALES  OF  TANGIBLE  PERSONAL  PROPERTY  IT  FACILITATES AS
 DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN  HUNDRED
 ONE OF THIS ARTICLE. Said terms shall also include any officer, director
 or employee of a corporation or of a dissolved corporation, any employee
 of  a partnership, any employee or manager of a limited liability compa-
 ny, or any employee of an individual proprietorship who as such officer,
 director, employee or manager is under a duty to  act  for  such  corpo-
 ration, partnership, limited liability company or individual proprietor-
 ship  in  complying with any requirement of this article; and any member
 of a partnership or limited liability company.  Provided, however,  that
 any  person  who  is  a  vendor solely by reason of clause (D) or (E) of
 subparagraph (i) of paragraph (8) of subdivision (b) of  section  eleven
 hundred  one  shall not be a "person required to collect any tax imposed
 by this article" until twenty days after the date by which  such  person
 is  required  to  file a certificate of registration pursuant to section
 eleven hundred thirty-four OF THIS PART.
   § 3. Section 1132 of the tax law is amended by adding a  new  subdivi-
 sion (l) to read as follows:
   (L)(1)  A  MARKETPLACE  PROVIDER  WITH  RESPECT  TO A SALE OF TANGIBLE
 PERSONAL PROPERTY IT FACILITATES: (I) SHALL HAVE ALL THE OBLIGATIONS AND
 RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTICLE  TWENTY-NINE  OF  THIS
 CHAPTER  AND  UNDER ANY REGULATIONS ADOPTED PURSUANT THERETO, INCLUDING,
 BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIFICATE  OF  AUTHORITY,  TO
 COLLECT  TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIF-
 ICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION
 OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE  THE  REFUND  AUTHORIZED  BY
 SUBDIVISION  (E)  OF  THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION
 (F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT  TO  THE
 PROVISIONS  OF  SUCH  SUBDIVISIONS; AND (II) SHALL KEEP SUCH RECORDS AND
 INFORMATION AND COOPERATE WITH THE COMMISSIONER  TO  ENSURE  THE  PROPER
 COLLECTION  AND  REMITTANCE  OF TAX IMPOSED, COLLECTED OR REQUIRED TO BE
 COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER.
   (2) A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY  TO
 COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY
 SUBJECT  TO  TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF
 THIS ARTICLE AND SHALL NOT INCLUDE THE RECEIPTS FROM SUCH  SALE  IN  ITS
 TAXABLE  RECEIPTS  FOR  PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF
 THIS PART IF, IN REGARD TO SUCH SALE: (I)  THE  MARKETPLACE  SELLER  CAN
 SHOW  THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM
 SUCH SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED  CERTIFICATE
 OF  COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT
 THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT  SALES  TAX  AND  WILL
 COLLECT  SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY
 THE MARKETPLACE SELLER FACILITATED BY  SUCH  MARKETPLACE  PROVIDER,  AND
 WITH  SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (II)
 ANY FAILURE OF THE MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT  OF
 TAX IN REGARD TO SUCH SALE WAS NOT THE RESULT OF SUCH MARKETPLACE SELLER
 PROVIDING  THE  MARKETPLACE  PROVIDER  WITH  INCORRECT INFORMATION. THIS
 PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH
 (I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A  CERTIF-
 ICATE  OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES
 OF SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF  SUCH

 S. 7509                            45                            A. 9509
 
 CERTIFICATE  OF  COLLECTION  AND  THE  TIMING  OF  ITS ACCEPTANCE BY THE
 MARKETPLACE SELLER. PROVIDED THAT, WITH REGARD TO ANY SALES OF  TANGIBLE
 PERSONAL  PROPERTY  BY  A  MARKETPLACE  SELLER THAT ARE FACILITATED BY A
 MARKETPLACE  PROVIDER  WHO  IS  AFFILIATED  WITH SUCH MARKETPLACE SELLER
 WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN
 HUNDRED ONE OF THIS ARTICLE, THE  MARKETPLACE  SELLER  SHALL  BE  DEEMED
 LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH MARKETPLACE PROVIDER FOR
 PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS
 PART.
   (3)  THE  COMMISSIONER  MAY,  IN  HIS OR HER DISCRETION: (I) DEVELOP A
 STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED  BY  A  MARKETPLACE
 PROVIDER,  IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT
 THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR WHOM  SUCH  MARKET-
 PLACE  PROVIDER  FACILITATES  SALES  OF TANGIBLE PERSONAL PROPERTY, WITH
 RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY
 OCCURS IN THE STATE; AND (II) PROVIDE BY REGULATION  OR  OTHERWISE  THAT
 THE  INCLUSION  OF  SUCH  PROVISION  IN THE PUBLICLY-AVAILABLE AGREEMENT
 BETWEEN THE MARKETPLACE PROVIDER AND MARKETPLACE SELLER  WILL  HAVE  THE
 SAME  EFFECT  AS  A  MARKETPLACE SELLER'S ACCEPTANCE OF A CERTIFICATE OF
 COLLECTION FROM SUCH MARKETPLACE PROVIDER UNDER PARAGRAPH  TWO  OF  THIS
 SUBDIVISION.
   §  4.  Section 1133 of the tax law is amended by adding a new subdivi-
 sion (f) to read as follows:
   (F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION
 FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT  THE
 MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT INFOR-
 MATION  GIVEN  TO  THE  MARKETPLACE  PROVIDER BY THE MARKETPLACE SELLER.
 PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF  THE  MARKETPLACE
 SELLER AND THE MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF
 PARAGRAPH  ONE  OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS
 ARTICLE.
   § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as
 amended by section 46 of part K of chapter 61 of the laws  of  2011,  is
 amended to read as follows:
   (4)  The  return of a vendor of tangible personal property or services
 shall show such vendor's receipts from sales and the number  of  gallons
 of any motor fuel or diesel motor fuel sold and also the aggregate value
 of tangible personal property and services and number of gallons of such
 fuels  sold by the vendor, the use of which is subject to tax under this
 article,  and  the  amount  of  tax  payable  thereon  pursuant  to  the
 provisions  of  section  eleven  hundred  thirty-seven of this part. The
 return of a recipient of amusement charges shall show all  such  charges
 and the amount of tax thereon, and the return of an operator required to
 collect  tax  on  rents shall show all rents received or charged and the
 amount of tax thereon. THE RETURN OF A MARKETPLACE SELLER SHALL  EXCLUDE
 THE  RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A
 MARKETPLACE PROVIDER IF, IN REGARD TO SUCH  SALE:  (A)  THE  MARKETPLACE
 SELLER  HAS  TIMELY  RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF-
 ICATE OF COLLECTION FROM THE MARKETPLACE  PROVIDER  OR  THE  MARKETPLACE
 PROVIDER  HAS  INCLUDED  A PROVISION APPROVED BY THE COMMISSIONER IN THE
 PUBLICLY-AVAILABLE AGREEMENT BETWEEN  THEMSELVES  AND  SUCH  MARKETPLACE
 SELLER  AS  DESCRIBED IN SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIR-
 TY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE MARKETPLACE
 SELLER TO THE MARKETPLACE PROVIDER ABOUT SUCH TANGIBLE PERSONAL PROPERTY
 IS ACCURATE.

 S. 7509                            46                            A. 9509
 
   § 6. Section 1142 of the tax law is amended by adding two new subdivi-
 sions 15 and 16 to read as follows:
   15.  TO  PUBLISH  A  LIST  ON  THE DEPARTMENT'S WEBSITE OF MARKETPLACE
 PROVIDERS WHOSE CERTIFICATES OF  AUTHORITY  HAS  BEEN  REVOKED  AND,  IF
 NECESSARY  TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHER-
 WISE THAT A MARKETPLACE SELLER WHO IS A VENDOR WILL BE RELIEVED  OF  THE
 DUTY  TO COLLECT TAX FOR SALES OF TANGIBLE PERSONAL PROPERTY FACILITATED
 BY A MARKETPLACE  PROVIDER  ONLY  IF,  IN  ADDITION  TO  THE  CONDITIONS
 PRESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN HUNDRED
 THIRTY-TWO  OF  THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS NOT ON
 SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY.
   16. TO ENFORCE THE PENALTIES IMPOSED  ON  NON-COLLECTING  SELLERS  AND
 NON-COLLECTING  MARKETPLACE  PROVIDERS  PROVIDED  BY  SUBDIVISION (I) OF
 SECTION ELEVEN HUNDRED FORTY-FIVE OF THIS PART BY COMMENCING A  PROCEED-
 ING  UNDER ARTICLE SEVENTY-TWO OF THE CIVIL PRACTICE LAW AND RULES. THIS
 MEANS ENFORCING SUCH PENALTIES IS IN ADDITION TO ANY OTHER LAWFUL  MEANS
 THE  COMMISSIONER  MAY USE TO ENFORCE SUCH PENALTIES. THE VENUE FOR SUCH
 PROCEEDING SHALL BE ALBANY COUNTY.
   § 7. The tax law is amended by adding a new section 1135-a to read  as
 follows:
   §  1135-A.  REPORTING  REQUIREMENTS. (A) (1) THE FOLLOWING DEFINITIONS
 APPLY TO THE TAXES IMPOSED BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY
 OF ARTICLE TWENTY-NINE OF THIS CHAPTER:
   (A) NON-COLLECTING SELLER MEANS A PERSON WHO MAKES SALES  OF  TANGIBLE
 PERSONAL PROPERTY, THE USE OF WHICH IS TAXED BY THIS ARTICLE, BUT WHO IS
 NOT  REQUIRED  TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER SECTION ELEVEN
 HUNDRED THIRTY-FOUR OF THIS PART AND WHO DOES NOT COLLECT TAX  OR  MONEY
 PURPORTEDLY  AS  TAX  IMPOSED  BY  THIS  ARTICLE  IN  REGARD TO TANGIBLE
 PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE.
   (B) NON-COLLECTING MARKETPLACE PROVIDER MEANS A MARKETPLACE  PROVIDER,
 AS  DEFINED  BY  SECTION  ELEVEN HUNDRED ONE OF THIS ARTICLE, WHO IS NOT
 REQUIRED TO OBTAIN A  CERTIFICATE  OF  AUTHORITY  UNDER  SECTION  ELEVEN
 HUNDRED  THIRTY-FOUR  OF THIS PART AND WHO DOES NOT COLLECT TAX OR MONEY
 PURPORTEDLY AS TAX  IMPOSED  BY  THIS  ARTICLE  IN  REGARD  TO  TANGIBLE
 PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE.
   (C)  NEW  YORK  PURCHASER  MEANS  ANY  PERSON  WHO  PURCHASES TANGIBLE
 PERSONAL PROPERTY FOR DELIVERY TO A LOCATION IN THIS STATE.
   (D) LAST KNOWN ADDRESS OF A NEW YORK PURCHASER MEANS, FOR PURPOSES  OF
 THIS  SUBDIVISION,  SUBDIVISION SIXTEEN OF SECTION ELEVEN HUNDRED FORTY-
 TWO, AND SUBDIVISION (I) OF SECTION ELEVEN HUNDRED  FORTY-FIVE  OF  THIS
 PART,  THE  PURCHASER'S  BILLING ADDRESS OR, IF UNKNOWN, THE PURCHASER'S
 SHIPPING ADDRESS. IF NO BILLING OR SHIPPING ADDRESS IS KNOWN, THIS  TERM
 SHALL MEAN THE PURCHASER'S LAST KNOWN E-MAIL ADDRESS.
   (2) THE FOLLOWING REQUIREMENTS APPLY TO A NON-COLLECTING SELLER:
   (A)  A  NON-COLLECTING SELLER'S RECORDS SHALL BE MADE AVAILABLE TO THE
 COMMISSIONER UPON REQUEST. THESE RECORDS  SHALL  INCLUDE,  BUT  ARE  NOT
 LIMITED  TO,  EACH  NEW  YORK PURCHASER'S NAME AND LAST KNOWN ADDRESS AS
 DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH ONE OF  THIS  SUBDIVISION,  AND
 THE  TOTAL OF THE NON-COLLECTING SELLER'S RECEIPTS FROM THE PURCHASES OF
 THE NEW YORK PURCHASER.
   (B) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE  OF  THIS  SUBDIVI-
 SION,  A  NON-COLLECTING  SELLER SHALL FILE AN ANNUAL INFORMATION RETURN
 WITH THE COMMISSIONER. SUCH RETURN SHALL INCLUDE THE TOTAL OF  THE  NON-
 COLLECTING SELLER'S RECEIPTS FROM PURCHASES OF TANGIBLE PERSONAL PROPER-
 TY  THAT WAS DELIVERED TO A LOCATION IN THIS STATE FOR THE CALENDAR YEAR
 COVERED BY THE RETURN, TOGETHER WITH SUCH OTHER INFORMATION THE  COMMIS-

 S. 7509                            47                            A. 9509
 
 SIONER  MAY PRESCRIBE.   SUCH RETURN SHALL BE FILED ON OR BEFORE JANUARY
 THIRTY-FIRST OF EACH YEAR AND SHALL COVER THE PRIOR CALENDAR YEAR,  WITH
 THE  FIRST  SUCH RETURN DUE ON JANUARY THIRTY-FIRST, TWO THOUSAND TWENTY
 FOR THE CALENDAR YEAR TWO THOUSAND NINETEEN.
   (C)  EXCEPT  AS  PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI-
 SION, A NON-COLLECTING SELLER  SHALL  PROVIDE  AN  ANNUAL  STATEMENT  OF
 PURCHASES  TO EACH NEW YORK PURCHASER FOR PURCHASES OF TANGIBLE PERSONAL
 PROPERTY DELIVERED TO A LOCATION IN THIS STATE FROM SUCH  SELLER  DURING
 THE  CALENDAR YEAR COVERED BY THE STATEMENT. SUCH ANNUAL STATEMENT SHALL
 INCLUDE: (I) A STATEMENT THAT SALES OR USE TAX WAS NOT COLLECTED ON  THE
 PURCHASER'S  TRANSACTIONS  IN  THE  PRIOR  CALENDAR  YEAR  AND  THAT THE
 PURCHASER MAY BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE  COMMISSION-
 ER;  (II)  A LIST OF TRANSACTIONS ENTERED INTO DURING THE PRIOR CALENDAR
 YEAR BY SUCH PURCHASER FOR DELIVERY TO A LOCATION INTO THIS STATE  SHOW-
 ING,  THE  DATE  OF  EACH  PURCHASE,  A GENERAL DESCRIPTION OF EACH ITEM
 PURCHASED, AND THE AMOUNT PAID FOR EACH ITEM, INCLUDING ANY SHIPPING  OR
 DELIVERY  CHARGES;  (III) INSTRUCTIONS FOR OBTAINING ADDITIONAL INFORMA-
 TION REGARDING WHETHER AND HOW TO REMIT THE SALES  OR  USE  TAX  TO  THE
 COMMISSIONER;  AND (IV) A STATEMENT THAT SUCH SELLERS MAY BE REQUIRED TO
 ANNUALLY REPORT THE AGGREGATE DOLLAR VALUE OF THE PURCHASER'S  PURCHASES
 TO  THE  COMMISSIONER.  SUCH  STATEMENT  SHALL  BE SENT TO EACH NEW YORK
 PURCHASER ON OR BEFORE JANUARY THIRTY-FIRST OF EACH  YEAR,  STARTING  IN
 THE  YEAR TWO THOUSAND TWENTY, COVERING SALES MADE IN THE PRIOR CALENDAR
 YEAR. SUCH STATEMENT SHALL BE SENT BY MAIL IN AN  ENVELOPE  BEARING  THE
 STATEMENT  "IMPORTANT  TAX INFORMATION" TO THE NEW YORK PURCHASER'S LAST
 KNOWN ADDRESS AS DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH  ONE  OF  THIS
 SUBDIVISION,  UNLESS  THE  PURCHASER'S  LAST  KNOWN ADDRESS IS AN E-MAIL
 ADDRESS, IN WHICH CASE THE STATEMENT  IS  TO  BE  SENT  BY  E-MAIL,  THE
 SUBJECT LINE OF WHICH SHALL STATE "IMPORTANT TAX INFORMATION".
   (D)  EXCEPT  AS  PROVIDED IN PARAGRAPHS FOUR AND FIVE OF THIS SUBDIVI-
 SION, A NON-COLLECTING SELLER SHALL PROMINENTLY DISPLAY A NOTICE ON  ALL
 ORDER  FORMS,  AND  UPON  EACH  SALES RECEIPT OR OTHER MEMORANDUM OF THE
 PRICE, WHETHER ELECTRONIC OR ON PAPER, PROVIDED TO A NEW YORK  PURCHASER
 MAKING  A  PURCHASE  OF  TANGIBLE PERSONAL PROPERTY TO BE DELIVERED TO A
 LOCATION IN THIS STATE, INCLUDING ANY SCREEN THAT SUMMARIZES THE  TRANS-
 ACTION  PRIOR  TO THE COMPLETION OF THE SALE. SUCH NOTICE SHALL INDICATE
 THAT NEITHER NEW YORK STATE  AND  LOCAL  SALES  NOR  USE  TAX  IS  BEING
 COLLECTED  OR  REMITTED UPON THE TRANSACTION, AND THAT THE PURCHASER MAY
 BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE COMMISSIONER.
   (3) A NON-COLLECTING SELLER SHALL  KEEP  RECORDS  OF  THE  INFORMATION
 DESCRIBED  IN  SUBPARAGRAPHS  (A),  (B) AND (C) OF PARAGRAPH TWO OF THIS
 SUBDIVISION, ALONG WITH PROOF THAT IT HAS PROVIDED PURCHASERS  WITH  ANY
 PER-PURCHASE  NOTICES  OR  ANNUAL  STATEMENTS OF PURCHASES REQUIRED. THE
 NON-COLLECTING SELLER SHALL KEEP SUCH RECORDS FOR SUCH  PERIODS  AND  IN
 SUCH  MANNER  AS  PRESCRIBED FOR RECORDS REQUIRED TO BE MAINTAINED UNDER
 SUBDIVISIONS (A) AND (G) OF SECTION ELEVEN HUNDRED THIRTY-FIVE  OF  THIS
 PART,  OR  AS  THE COMMISSIONER MAY OTHERWISE REQUIRE BY REGULATION. THE
 NON-COLLECTING SELLER SHALL MAKE THOSE RECORDS AVAILABLE FOR  INSPECTION
 AND EXAMINATION AT ANY TIME UPON DEMAND BY THE COMMISSIONER.
   (4)  THE  REQUIREMENTS  IN SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH
 TWO OF THIS SUBDIVISION DO NOT APPLY TO A NON-COLLECTING SELLER FOR  ANY
 CALENDAR YEAR IN WHICH THE NON-COLLECTING SELLER'S RECEIPTS FROM ALL NEW
 YORK  PURCHASERS  ARE  LESS  THAN  FIVE MILLION DOLLARS DURING THE PRIOR
 CALENDAR YEAR.
   (5) THE REQUIREMENTS IN SUBPARAGRAPHS (B), (C) AND  (D)  OF  PARAGRAPH
 TWO  OF  THIS  SUBDIVISION  DO  NOT  APPLY TO A NON-COLLECTING SELLER IN

 S. 7509                            48                            A. 9509
 
 REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAX
 UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE IF,
 THE NON-COLLECTING SELLER CAN SHOW THAT SUCH SALE  WAS  FACILITATED  BY:
 (A)  A  MARKETPLACE  PROVIDER  FROM  WHOM SUCH NON-COLLECTING SELLER HAS
 RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION AS
 DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN  HUNDRED
 THIRTY-TWO  OF  THIS  PART; OR (B) A NON-COLLECTING MARKETPLACE PROVIDER
 WHO FULFILLED THE REQUIREMENTS OF SUBPARAGRAPHS  (B),  (C)  AND  (D)  OF
 PARAGRAPH TWO OF THIS SUBDIVISION ON ITS BEHALF.
   (B)  (1)  A  NON-COLLECTING  MARKETPLACE  PROVIDER  SHALL  PERFORM THE
 REQUIREMENTS IN PARAGRAPH TWO OF SUBDIVISION  (A)  OF  THIS  SECTION  ON
 BEHALF  OF A NON-COLLECTING SELLER FOR ALL SALES IT FACILITATES FOR SUCH
 NON-COLLECTING SELLER.
   (2) NON-COLLECTING MARKETPLACE PROVIDERS SHALL ALSO PROVIDE NOTICE  TO
 ALL  NON-COLLECTING  SELLERS  FOR WHOM THEY FACILITATE SALES OF TANGIBLE
 PERSONAL PROPERTY THAT IS DELIVERED TO A LOCATION IN  THIS  STATE,  SUCH
 NOTICE SHALL INCLUDE THE FOLLOWING INFORMATION:
   (A)  SUCH SELLERS MAY BE REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY
 UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART  AND  COLLECT  THE
 TAXES  IMPOSED  BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF ARTICLE
 TWENTY-NINE OF THIS CHAPTER, OR, WHERE SUCH SELLERS ARE NOT REQUIRED  TO
 OBTAIN  A CERTIFICATE AND COLLECT TAX, THAT SUCH SELLERS ARE REQUIRED TO
 COMPLY WITH THE REQUIREMENTS OF THIS PARAGRAPH;
   (B) THE NON-COLLECTING MARKETPLACE PROVIDER WILL PROVIDE EACH SELLER'S
 NAME, ADDRESS AND AGGREGATE AMOUNT OF SALES DELIVERED TO A  LOCATION  IN
 THIS STATE TO THE COMMISSIONER UPON REQUEST; AND
   (C)  THE NON-COLLECTING MARKETPLACE PROVIDER IS REPORTING THE INFORMA-
 TION AND SENDING THE NOTICES REQUIRED BY SUBPARAGRAPHS (B), (C) AND  (D)
 OF  PARAGRAPH  TWO  OF  SUBDIVISION (A) OF THIS SECTION ON BEHALF OF THE
 NON-COLLECTING SELLER FOR SUCH SALE IF IT WAS FACILITATED BY  SUCH  NON-
 COLLECTING MARKETPLACE PROVIDER.
   (C)  THE COMMISSIONER MAY, IN THEIR DISCRETION, MODIFY, WITHOUT ADDING
 TO, THE INFORMATION OTHERWISE REQUIRED TO BE INCLUDED IN THE INFORMATION
 RETURN, ANNUAL STATEMENT OF PURCHASES, OR PER-PURCHASE  NOTICE  REQUIRED
 BY  THIS  SUBDIVISION  IF  OTHER  STATES IMPOSE SIMILAR REQUIREMENTS, IN
 ORDER TO FACILITATE THE COMPLIANCE OF NON-COLLECTING SELLERS.
   § 8. Subdivision (i) of section 1145 of  the  tax  law,  as  added  by
 section 2 of subpart G of part V-1 of chapter 57 of the laws of 2009, is
 amended to read as follows:
   (i)(1)  Every person required to file an information return by SECTION
 ELEVEN HUNDRED  THIRTY-FIVE-A  OR  subdivision  (i)  of  section  eleven
 hundred  thirty-six  of  this  part,  OR  AN  ANNUAL STATEMENT OR NOTICE
 REQUIRED BY SECTION ELEVEN HUNDRED THIRTY-FIVE-A OF THIS PART who  [(A)]
 fails  to  provide  any of the information required [by paragraph one or
 two of subdivision (i) of section eleven hundred thirty-six of this part
 for a vendor, operator, or recipient] TO BE PROVIDED IN SUCH INFORMATION
 RETURN OR NOTICE, OR WHO FAILS TO PERFORM THE REQUIREMENTS OF  PARAGRAPH
 TWO  OF  SUBDIVISION (B) OF SECTION ELEVEN HUNDRED THIRTY-FIVE-A OF THIS
 PART, or who fails to include any such  information  that  is  true  and
 correct [(whether or not such a report is filed) for a vendor, operator,
 or  recipient, or (B) fails to provide the information required by para-
 graph four of subdivision (i) of section eleven  hundred  thirty-six  of
 this  part  to  a  vendor, operator, or recipient specified in paragraph
 four of subdivision (i) of section eleven  hundred  thirty-six  of  this
 part],  will,  in addition to any other penalty provided in this article
 or otherwise imposed by law, be subject to a  penalty  of  five  hundred

 S. 7509                            49                            A. 9509
 
 dollars  for  ten  or  fewer  failures, and up to fifty dollars for each
 additional failure.
   (2)  Every  person  failing  to file an information return required by
 SECTION ELEVEN HUNDRED THIRTY-FIVE-A OR subdivision (i) of section elev-
 en hundred thirty-six OF THIS PART OR AN ANNUAL STATEMENT OR  NOTICE  BY
 SECTION  ELEVEN  HUNDRED  THIRTY-FIVE-A  of  this  part  within the time
 required [by subdivision (i) of section  eleven  hundred  thirty-six  of
 this  part], will, in addition to any other penalty provided for in this
 article or otherwise imposed by law, be  subject  to  a  penalty  in  an
 amount  not  to  exceed  two  thousand  dollars  for  each such failure,
 provided that the minimum penalty under this paragraph is  five  hundred
 dollars.
   (3)  In  no  event  will  the penalty imposed by paragraph one of this
 subdivision, or the aggregate of the penalties imposed under  paragraphs
 one  and  two  of  this subdivision, exceed ten thousand dollars for any
 annual filing period [as described by paragraph three of subdivision (i)
 of section eleven hundred thirty-six of this part].
   (4) If the commissioner determines that any of the failures  that  are
 subject to penalty under this subdivision was entirely due to reasonable
 cause  and  not  due to willful neglect, the commissioner must remit the
 penalty imposed under this subdivision. These penalties will  be  deter-
 mined,  assessed,  collected, paid, disposed of and enforced in the same
 manner as taxes imposed by this article and all the provisions  of  this
 article  relating  thereto  will be deemed also to refer to these penal-
 ties.
   § 9. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section, or part of this act shall be adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation to the clause, sentence, paragraph, subdivision, section,
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provision had not been included herein.
   §  10. This act shall take effect immediately and shall apply to sales
 made on or after September 1, 2018; provided, however, that the require-
 ments in subparagraphs (B) and (C) of paragraph 2 of subdivision (a)  of
 section  1135-a as added by section two of this act shall apply to sales
 made on or after January 1, 2019.
 
                                  PART BB
 
   Section 1. Subdivision 2 of section 470 of the tax law, as amended  by
 section  15  of part D of chapter 134 of the laws of 2010, is amended to
 read as follows:
   2. "Tobacco products." Any cigar, including [a] little [cigar] CIGARS,
 VAPOR PRODUCTS, or tobacco, other than cigarettes, intended for consump-
 tion by smoking, chewing, INHALING VAPORS or as snuff.
   § 2. Subdivision 12 of section 470 of the tax law, as added by chapter
 61 of the laws of 1989, is amended to read as follows:
   12. "Distributor." Any person who imports or  causes  to  be  imported
 into this state any tobacco product (in excess of fifty cigars [or], one
 pound  of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT) for sale,
 or who manufactures any tobacco product in this state,  and  any  person
 within  or  without  the  state who is authorized by the commissioner of

 S. 7509                            50                            A. 9509
 
 taxation and finance to make returns and pay the tax on tobacco products
 sold, shipped or delivered by him to any person in the state.
   § 3. Section 470 of the tax law is amended by adding a new subdivision
 20 to read as follows:
   20.  "VAPOR  PRODUCT." ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS OF
 THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED INTO  A  FINISHED
 PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR, ELECTRONIC
 CIGARILLO,  ELECTRONIC  PIPE,  VAPING  PEN,  HOOKAH PEN OR OTHER SIMILAR
 DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY PRODUCT  APPROVED  BY  THE
 UNITED  STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL DEVICE,
 OR APPROVED FOR USE  PURSUANT  TO  SECTION  THREE  THIRTY-THREE  HUNDRED
 SIXTY-TWO OF THE PUBLIC HEALTH LAW.
   §  4.  Paragraph (a) of subdivision 1 of section 471-b of the tax law,
 as amended by section 18 of part D of chapter 134 of the laws  of  2010,
 is amended to read as follows:
   (a) Such tax on tobacco products other than snuff [and], little cigars
 AND  VAPOR  PRODUCTS shall be at the rate of seventy-five percent of the
 wholesale price, and is intended to be imposed only once upon  the  sale
 of  any tobacco products other than snuff [and], little cigars AND VAPOR
 PRODUCTS.
   § 5. Subdivision 1 of section 471-b of  the  tax  law  is  amended  by
 adding a new paragraph (d) to read as follows:
   (D)  SUCH  TAX  ON  VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER
 FLUID MILLILITER, OR PART THEREOF, OF THE VAPOR  PRODUCT.  ALL  INVOICES
 FOR VAPOR PRODUCTS ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE
 AMOUNT OF VAPOR PRODUCT IN MILLILITERS.
   §  6.  Subdivision  (a) of section 471-c of the tax law, as amended by
 section 2 of part I-1 of chapter 57 of the laws of 2009, paragraphs  (i)
 and  (ii)  as  amended  by  section  20  and paragraph (iii) as added by
 section 21 of part D of chapter 134 of the laws of 2010, is  amended  to
 read as follows:
   (a)  There  is  hereby  imposed and shall be paid a tax on all tobacco
 products used in the state by any person, except that no such tax  shall
 be imposed (1) if the tax provided in section four hundred seventy-one-b
 of this article is paid, or (2) on the use of tobacco products which are
 exempt  from  the  tax imposed by said section, or (3) on the use of two
 hundred fifty cigars or less, [or] five pounds or less of tobacco  other
 than roll-your-own tobacco, [or] thirty-six ounces or less of roll-your-
 own tobacco OR FIVE HUNDRED MILLILITERS OR LESS OF VAPOR PRODUCT brought
 into the state on, or in the possession of, any person.
   (i) Such tax on tobacco products other than snuff [and], little cigars
 AND  VAPOR  PRODUCTS shall be at the rate of seventy-five percent of the
 wholesale price.
   (ii) Such tax on snuff shall be at the rate of two dollars  per  ounce
 and  a  proportionate rate on any fractional parts of an ounce, provided
 that cans or packages of snuff with a net weight of less than one  ounce
 shall  be  taxed at the equivalent rate of cans or packages weighing one
 ounce. Such tax shall be computed based on the net weight as  listed  by
 the manufacturer.
   (iii)  Such  tax on little cigars shall be at the same rate imposed on
 cigarettes under this article and is intended to be  imposed  only  once
 upon the sale of any little cigars.
   (IV)  SUCH  TAX  ON VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER
 FLUID MILLILITER OF THE VAPOR PRODUCT. ALL INVOICES FOR  VAPOR  PRODUCTS
 ISSUED  BY  DISTRIBUTORS  AND WHOLESALERS MUST STATE THE AMOUNT OF VAPOR
 PRODUCT IN MILLILITERS.

 S. 7509                            51                            A. 9509
 
   § 7. Subdivision 2 of section 474 of the tax law, as amended by  chap-
 ter 552 of the laws of 2008, is amended to read as follows:
   2.  Every  person who shall possess or transport more than two hundred
 fifty cigars, [or] more than five pounds of  tobacco  other  than  roll-
 your-own  tobacco,  [or]  more  than  thirty-six ounces of roll-your-own
 tobacco OR MORE THAN FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT upon  the
 public  highways,  roads  or  streets of the state, shall be required to
 have in his actual possession invoices  or  delivery  tickets  for  such
 tobacco  products. Such invoices or delivery tickets shall show the name
 and address of the consignor or seller, the  name  and  address  of  the
 consignee  or purchaser, the quantity and brands of the tobacco products
 transported, and the name and address of the person  who  has  or  shall
 assume the payment of the tax and the wholesale price or the tax paid or
 payable. The absence of such invoices or delivery tickets shall be prima
 facie  evidence that such person is a dealer in tobacco products in this
 state and subject to the requirements of this article.
   § 8. Subdivision 3 of section 474 of the tax law, as added by  chapter
 61 of the laws of 1989, is amended to read as follows:
   3.  Every  dealer  or distributor or employee thereof, or other person
 acting on behalf of a dealer or distributor, who shall possess or trans-
 port more than fifty cigars [or], more than one pound of tobacco OR MORE
 THAN ONE HUNDRED MILLILITERS OF VAPOR PRODUCT upon the public  highways,
 roads  or  streets of the state, shall be required to have in his actual
 possession invoices or delivery tickets for such tobacco products.  Such
 invoices  or  delivery  tickets  shall  show the name and address of the
 consignor or seller, the name and address of the consignee or purchaser,
 the quantity and brands of the tobacco  products  transported,  and  the
 name  and  address  of the person who has or shall assume the payment of
 the tax and the wholesale price or the tax paid or payable. The  absence
 of  such invoices or delivery tickets shall be prima facie evidence that
 the tax imposed by this article on tobacco products has  not  been  paid
 and is due and owing.
   § 9. Subparagraph (i) of paragraph (b) of subdivision 1 of section 481
 of  the  tax law, as amended by section 1 of part O of chapter 59 of the
 laws of 2013, is amended to read as follows:
   (i) In addition to any other penalty  imposed  by  this  article,  the
 commissioner  may  (A)  impose  a  penalty  of not more than six hundred
 dollars for each two hundred cigarettes, or fraction thereof, in  excess
 of  one  thousand cigarettes in unstamped or unlawfully stamped packages
 in the possession or under the control of any person  or  (B)  impose  a
 penalty  of  not  more  than  two hundred dollars for each ten unaffixed
 false,  altered  or  counterfeit  cigarette  tax  stamps,  imprints   or
 impressions, or fraction thereof, in the possession or under the control
 of any person. In addition, the commissioner may impose a penalty of not
 more  than  seventy-five dollars for each fifty cigars [or] one pound of
 tobacco[,] OR ONE HUNDRED MILLILITERS  OF  VAPOR  PRODUCT,  or  fraction
 thereof,  in  excess  of  two  hundred fifty cigars [or], five pounds of
 tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT in  the  possession
 or  under  the  control of any person and a penalty of not more than one
 hundred fifty dollars for each fifty cigars [or], pound  of  tobacco  OR
 ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess
 of  five  hundred  cigars  [or],  ten  pounds of tobacco OR ONE THOUSAND
 MILLILITERS OF VAPOR PRODUCT in the possession or under the  control  of
 any  person, with respect to which the tobacco products tax has not been
 paid or assumed by a distributor or tobacco products  dealer;  provided,
 however,  that  any such penalty imposed shall not exceed seven thousand

 S. 7509                            52                            A. 9509
 
 five hundred dollars in the aggregate. The  commissioner  may  impose  a
 penalty  of  not  more  than  seventy-five dollars for each fifty cigars
 [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR  PRODUCT,
 or fraction thereof, in excess of fifty cigars [or], one pound of tobac-
 co  OR  ONE  HUNDRED  MILLILITERS  OF VAPOR PRODUCT in the possession or
 under  the  control  of  any  tobacco  products  dealer  or  distributor
 appointed  by  the  commissioner,  and  a  penalty  of not more than one
 hundred fifty dollars for each fifty cigars [or], pound of  tobacco,  OR
 ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess
 of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED
 MILLILITERS  OF  VAPOR PRODUCT in the possession or under the control of
 any such dealer or  distributor,  with  respect  to  which  the  tobacco
 products  tax has not been paid or assumed by a distributor or a tobacco
 products dealer; provided, however, that any such penalty imposed  shall
 not exceed fifteen thousand dollars in the aggregate.
   §  10.  Items  (I)  and  (II)  of clause (B) and items (I) and (II) of
 clause (C) of subparagraph (ii) of paragraph (b)  of  subdivision  1  of
 section 481 of the tax law, as added by chapter 262 of the laws of 2000,
 are amended to read as follows:
   (I)  not  less  than twenty-five dollars but not more than one hundred
 dollars for each fifty cigars [or], one pound of tobacco OR ONE  HUNDRED
 MILLILITERS  OF  VAPOR  PRODUCT,  or  fraction thereof, in excess of two
 hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLI-
 LITERS OF VAPOR PRODUCT knowingly in the possession or  knowingly  under
 the  control  of  any person, with respect to which the tobacco products
 tax has not been paid or assumed by a distributor  or  tobacco  products
 dealer;  and  (II)  not  less  than  fifty dollars but not more than two
 hundred dollars for each fifty cigars [or],  pound  of  tobacco  OR  ONE
 HUNDRED  MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of
 five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILI-
 TERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the
 control of any person, with respect to which the  tobacco  products  tax
 has  not been paid or assumed by a distributor or tobacco products deal-
 er; provided, however, that any such penalty imposed under  this  clause
 shall not exceed ten thousand dollars in the aggregate.
   (I)  not  less  than twenty-five dollars but not more than one hundred
 dollars for each fifty cigars [or], one pound of tobacco OR ONE  HUNDRED
 MILLILITERS  OF  VAPOR  PRODUCT, or fraction thereof, in excess of fifty
 cigars [or], one pound of tobacco OR ONE HUNDRED  MILLILITERS  OF  VAPOR
 PRODUCT  knowingly  in  the possession or knowingly under the control of
 any person, with respect to which the tobacco products tax has not  been
 paid  or  assumed  by a distributor or tobacco products dealer; and (II)
 not less than fifty dollars but not more than two  hundred  dollars  for
 each  fifty  cigars [or], pound of tobacco OR ONE HUNDRED MILLILITERS OF
 VAPOR PRODUCT, or fraction thereof,  in  excess  of  two  hundred  fifty
 cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR
 PRODUCT  knowingly  in  the possession or knowingly under the control of
 any person, with respect to which the tobacco products tax has not  been
 paid or assumed by a distributor or a tobacco products dealer; provided,
 however,  that  any  such  penalty  imposed  under this clause shall not
 exceed twenty thousand dollars in the aggregate.
   § 11. Paragraph (a) of subdivision 2 of section 481 of the tax law, as
 amended by chapter 552 of the laws  of  2008,  is  amended  to  read  as
 follows:
   (a)  The  possession within this state of more than four hundred ciga-
 rettes in unstamped or unlawfully stamped packages [or], more  than  two

 S. 7509                            53                            A. 9509
 
 hundred  fifty  cigars, [or] more than five pounds of tobacco other than
 roll-your-own tobacco, [or] more than thirty-six ounces of roll-your-own
 tobacco by any person other than an agent or distributor,  as  the  case
 may  be, OR FIVE HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT at any one
 time shall be presumptive  evidence  that  such  cigarettes  or  tobacco
 products are subject to tax as provided by this article.
   §  12.  Subdivisions  (a)  and  (h) of section 1814 of the tax law, as
 amended by section 28 of subpart I of part V-1 of chapter 57 of the laws
 of 2009, are amended to read as follows:
   (a) Any person who willfully attempts in any manner to evade or defeat
 the taxes imposed by article twenty of this chapter or  payment  thereof
 on  (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars
 or more, [or] (iii) four hundred forty pounds of tobacco or  more,  (IV)
 FORTY-FOUR  THOUSAND  MILLILITERS OF VAPOR PRODUCT OR MORE or has previ-
 ously been convicted two or more times of a violation of  paragraph  one
 of this subdivision shall be guilty of a class E felony.
   (h)  (1) Any dealer, other than a distributor appointed by the commis-
 sioner [of taxation and finance] under article twenty of  this  chapter,
 who  shall  knowingly  transport  or  have in his custody, possession or
 under his control more than ten pounds of tobacco [or], more  than  five
 hundred  cigars  OR  MORE THAN ONE THOUSAND MILLILITERS OF VAPOR PRODUCT
 upon which the taxes imposed by article twenty of this chapter have  not
 been  assumed or paid by a distributor appointed by the commissioner [of
 taxation and finance] under article twenty of  this  chapter,  or  other
 person  treated as a distributor pursuant to section four hundred seven-
 ty-one-d of this chapter, shall be guilty of a misdemeanor punishable by
 a fine of not more than five thousand dollars or by a term of  imprison-
 ment not to exceed thirty days.
   (2)  Any person, other than a dealer or a distributor appointed by the
 commissioner under article twenty of this chapter, who  shall  knowingly
 transport  or  have in his custody, possession or under his control more
 than fifteen pounds of tobacco  [or],  more  than  seven  hundred  fifty
 cigars OR MORE THAN FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT
 upon  which the taxes imposed by article twenty of this chapter have not
 been assumed or paid by a  distributor  appointed  by  the  commissioner
 under  article  twenty  of  this  chapter,  or other person treated as a
 distributor pursuant to section four hundred seventy-one-d of this chap-
 ter shall be guilty of a misdemeanor punishable by a fine  of  not  more
 than  five  thousand  dollars or by a term of imprisonment not to exceed
 thirty days.
   (3) Any person, other than a distributor appointed by the commissioner
 under article twenty of this chapter, who shall knowingly  transport  or
 have in his custody, possession or under his control twenty-five hundred
 or  more  cigars  [or],fifty  or more pounds of tobacco OR FIVE THOUSAND
 MILLILITERS OR MORE OF VAPOR PRODUCT upon which  the  taxes  imposed  by
 article  twenty  of  this  chapter  have  not  been assumed or paid by a
 distributor appointed by the commissioner under article twenty  of  this
 chapter,  or  other  person treated as a distributor pursuant to section
 four hundred seventy-one-d of this chapter shall be guilty of  a  misde-
 meanor.  Provided  further, that any person who has twice been convicted
 under this subdivision shall be guilty of  a  class  E  felony  for  any
 subsequent violation of this section, regardless of the amount of tobac-
 co products involved in such violation.
   (4)  For  purposes  of  this  subdivision, such person shall knowingly
 transport or have in his custody, possession or under his control tobac-
 co [or], cigars OR VAPOR PRODUCTS on which  such  taxes  have  not  been

 S. 7509                            54                            A. 9509
 
 assumed  paid  by a distributor appointed by the commissioner where such
 person has knowledge of the requirement of the tax on  tobacco  products
 and, where to his knowledge, such taxes have not been assumed or paid on
 such  tobacco products by a distributor appointed by the commissioner of
 taxation and finance.
   § 13. Subdivisions (a) and (b) of section 1814-a of the  tax  law,  as
 added by chapter 61 of the laws of 1989, are amended to read as follows:
   (a)  Any  person  who, while not appointed as a distributor of tobacco
 products pursuant to the provisions of article twenty of  this  chapter,
 imports  or  causes to be imported into the state more than fifty cigars
 [or], more than one pound of tobacco[,] OR MORE THAN ONE HUNDRED  MILLI-
 LITERS OF VAPOR PRODUCT for sale within the state, or produces, manufac-
 tures  or compounds tobacco products within the state shall be guilty of
 a misdemeanor punishable by a  fine  of  not  more  than  five  thousand
 dollars  or  by  a  term of imprisonment not to exceed thirty days.  If,
 within any ninety day period, one  thousand  or  more  cigars  [or  five
 hundred],  TWENTY  pounds or more of tobacco OR TWO THOUSAND MILLILITERS
 OR MORE OF VAPOR PRODUCT are imported or caused to be imported into  the
 state  for  sale  within  the  state  or  are  produced, manufactured or
 compounded within the state by any  person  while  not  appointed  as  a
 distributor of tobacco products, such person shall be guilty of a misde-
 meanor.  Provided  further, that any person who has twice been convicted
 under this section shall be guilty of a class E felony  for  any  subse-
 quent  violation  of  this  section, regardless of the amount of tobacco
 products involved in such violation.
   (b) For purposes of this section,  the  possession  or  transportation
 within this state by any person, other than a tobacco products distribu-
 tor  appointed  by  the commissioner of taxation and finance, at any one
 time of seven hundred fifty or more cigars [or], fifteen pounds or  more
 of tobacco OR FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT shall
 be  presumptive  evidence  that  such  tobacco products are possessed or
 transported for the purpose of sale and are subject to the  tax  imposed
 by  section  four hundred seventy-one-b of this chapter. With respect to
 such possession or transportation, any provisions of article  twenty  of
 this chapter providing for a time period during which the tax imposed by
 such article may be paid shall not apply.
   §  14. Subdivision (a) of section 1846-a of the tax law, as amended by
 chapter 556 of the laws of 2011, is amended to read as follows:
   (a) Whenever a police officer designated in section 1.20 of the crimi-
 nal procedure law or a peace officer designated in subdivision  four  of
 section  2.10  of such law, acting pursuant to his special duties, shall
 discover any tobacco products in excess of five hundred cigars [or], ten
 pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT which are
 being imported for sale in the state where the person importing or caus-
 ing such tobacco products to be imported has not  been  appointed  as  a
 distributor  pursuant  to section four hundred seventy-two of this chap-
 ter, such police officer or  peace  officer  is  hereby  authorized  and
 empowered  forthwith  to  seize  and  take  possession  of  such tobacco
 products. Such tobacco products seized by  a  police  officer  or  peace
 officer  shall  be  turned over to the commissioner. Such seized tobacco
 products shall be forfeited to the state. All tobacco products forfeited
 to the state shall be destroyed or used for  law  enforcement  purposes,
 except  that  tobacco products that violate, or are suspected of violat-
 ing, federal trademark laws or import laws shall not  be  used  for  law
 enforcement   purposes.  If  the  commissioner  determines  the  tobacco
 products may not be used for law enforcement purposes, the  commissioner

 S. 7509                            55                            A. 9509
 
 must, within a reasonable time thereafter, upon publication in the state
 registry  of  a  notice  to  such  effect before the day of destruction,
 destroy such forfeited tobacco products. The commissioner may, prior  to
 any  destruction  of  tobacco  products,  permit  the true holder of the
 trademark rights in the  tobacco  products  to  inspect  such  forfeited
 products  in order to assist in any investigation regarding such tobacco
 products.
   § 15. Subdivision (b) of section 1847 of the  tax  law,  as  added  by
 chapter 61 of the laws of 1989, is amended to read as follows:
   (b)  Any  peace officer designated in subdivision four of section 2.10
 of the criminal procedure law, acting pursuant to his special duties, or
 any police officer designated in section 1.20 of the criminal  procedure
 law  may  seize  any  vehicle  or  other means of transportation used to
 import tobacco products in excess  of  five  hundred  cigars  [or],  ten
 pounds  of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT for sale
 where the person importing  or  causing  such  tobacco  products  to  be
 imported  has  not been appointed a distributor pursuant to section four
 hundred seventy-two of this chapter, other than a vehicle or other means
 of transportation used by any person as a common carrier in  transaction
 of  business  as such common carrier, and such vehicle or other means of
 transportation shall be subject to forfeiture  as  hereinafter  in  this
 section provided.
   §  16.  This  act  shall  take effect on the one hundred eightieth day
 after it shall have become a law, and shall apply to vapor products that
 first become subject to taxation under article 20 of the tax law  on  or
 after such date.
 
                                  PART CC
 
   Section 1. The tax law is amended by adding a new article 20-C to read
 as follows:
                               ARTICLE 20-C
                         OPIOID EPIDEMIC SURCHARGE
 SECTION 492. DEFINITIONS.
         493. IMPOSITION OF SURCHARGE.
         494. RETURNS TO BE SECRET.
   §  492.  DEFINITIONS.  WHEN  USED IN THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "OPIOID" SHALL MEAN AN "OPIATE" AS DEFINED BY  SUBDIVISION  TWENTY-
 THREE  OF SECTION THIRTY-THREE HUNDRED TWO OF THE PUBLIC HEALTH LAW, AND
 ANY NATURAL, SYNTHETIC, OR SEMISYNTHETIC "NARCOTIC DRUG" AS  DEFINED  BY
 SUBDIVISION  TWENTY-TWO OF SUCH SECTION, THAT HAS AGONIST, PARTIAL AGON-
 IST, OR AGONIST/ANTAGONIST MORPHINE-LIKE ACTIVITIES OR  EFFECTS  SIMILAR
 TO  NATURAL OPIUM ALKALOIDS AND ANY DERIVATIVE, CONGENER, OR COMBINATION
 THEREOF, LISTED IN SCHEDULES II-IV OF SECTION THIRTY-THREE  HUNDRED  SIX
 OF THE PUBLIC HEALTH LAW.
   2.  "UNIT"  SHALL  MEAN  THE  DOSAGE FORM OF AN OPIOID-CONTAINING DRUG
 INCLUDING, BUT NOT LIMITED TO, TABLETS, CAPSULES, SUPPOSITORIES, TOPICAL
 (TRANSDERMAL), BUCCAL OR ANY  OTHER  DOSAGE  FORM,  SUCH  AS  WEIGHT  OR
 VOLUME.
   3. "UNIT STRENGTH" SHALL MEAN THE AMOUNT OF OPIOID IN A UNIT, AS MEAS-
 URED BY WEIGHT, VOLUME, CONCENTRATION OR OTHER METRIC.
   4.  "MORPHINE  MILLIGRAM EQUIVALENT CONVERSION FACTOR" SHALL MEAN THAT
 REFERENCE STANDARD OF A PARTICULAR OPIOID AS IT RELATES  IN  POTENCY  TO
 MORPHINE AS DETERMINED BY THE COMMISSIONER OF HEALTH.

 S. 7509                            56                            A. 9509
 
   5. "MORPHINE MILLIGRAM EQUIVALENT" SHALL MEAN A UNIT MULTIPLIED BY ITS
 UNIT STRENGTH MULTIPLIED BY THE MORPHINE MILLIGRAM EQUIVALENT CONVERSION
 FACTOR OF THE OPIOID CONTAINED IN SUCH UNIT.
   6. "ESTABLISHMENT" SHALL MEAN ANY PERSON, FIRM, CORPORATION OR ASSOCI-
 ATION  REQUIRED  TO BE REGISTERED WITH THE EDUCATION DEPARTMENT PURSUANT
 TO SECTION SIXTY-EIGHT HUNDRED  EIGHT  OR  SECTION  SIXTY-EIGHT  HUNDRED
 EIGHT-B  OF  THE EDUCATION LAW, AS WELL AS ANY PERSON, FIRM, CORPORATION
 OR ASSOCIATION THAT WOULD BE REQUIRED TO BE REGISTERED WITH  THE  EDUCA-
 TION DEPARTMENT PURSUANT TO SUCH SECTION SIXTY-EIGHT HUNDRED EIGHT-B BUT
 FOR THE EXCEPTION IN SUBDIVISION TWO OF SUCH SECTION.
   7.  "INVOICE"  SHALL MEAN THE INVOICE, SALES SLIP, MEMORANDUM OF SALE,
 OR OTHER DOCUMENT EVIDENCING A SALE OF AN OPIOID.
   § 493. IMPOSITION OF SURCHARGE. 1. THERE IS HEREBY IMPOSED A SURCHARGE
 ON THE SALE OF ANY OPIOID OF TWO CENTS PER MORPHINE MILLIGRAM EQUIVALENT
 SOLD.  SUCH SURCHARGE SHALL BE IMPOSED ON THE FIRST SALE OF SUCH  OPIOID
 IN  THE STATE, EXCEPT THAT SUCH SURCHARGE SHALL NOT APPLY WHEN SUCH SALE
 IS TO ANY PROGRAM OPERATED PURSUANT TO ARTICLE THIRTY-TWO OF THE  MENTAL
 HYGIENE  LAW.   THIS SURCHARGE SHALL BE CHARGED AGAINST, AND BE PAID BY,
 THE ESTABLISHMENT MAKING THE FIRST SALE OF SUCH OPIOID IN THE STATE, AND
 SHALL NOT BE ADDED AS A SEPARATE CHARGE OR  LINE  ITEM  ON  ANY  INVOICE
 GIVEN TO THE CUSTOMER OR OTHERWISE PASSED DOWN TO THE CUSTOMER. HOWEVER,
 AN  ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL
 CLEARLY NOTE ON THE INVOICE FOR THE FIRST SALE OF AN OPIOID IN THE STATE
 ITS LIABILITY FOR THE SURCHARGE,  ALONG  WITH  ITS  NAME,  ADDRESS,  AND
 TAXPAYER  IDENTIFICATION  NUMBER.  ALL  SALES OF AN OPIOID IN THIS STATE
 SHALL BE PRESUMED TO BE THE FIRST  SALE  OF  SUCH,  AND  SHALL  ALSO  BE
 PRESUMED  TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, UNLESS
 THE CONTRARY IS ESTABLISHED BY THE SELLER.
   2. EVERY ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS  ARTI-
 CLE  SHALL  FILE  WITH THE COMMISSIONER A RETURN, ON FORMS PRESCRIBED BY
 THE COMMISSIONER, INDICATING THE TOTAL MORPHINE MILLIGRAM EQUIVALENT  OF
 OPIOIDS IT SOLD IN THE STATE, THE TOTAL MORPHINE MILLIGRAM EQUIVALENT OF
 SUCH  OPIOIDS THAT ARE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE,
 THE AMOUNT OF SURCHARGE DUE THEREON, AND SUCH FURTHER INFORMATION AS THE
 COMMISSIONER MAY REQUIRE. SUCH RETURNS SHALL BE DUE  ON  OR  BEFORE  THE
 TWENTIETH  DAY  OF  EACH  MONTH, AND SHALL COVER ALL OPIOID SALES IN THE
 STATE MADE IN THE MONTH PRIOR, EXCEPT THAT THE FIRST RETURN REQUIRED  TO
 BE  FILED  PURSUANT  TO  THIS  SECTION SHALL BE DUE ON OR BEFORE JANUARY
 TWENTIETH, TWO THOUSAND NINETEEN AND SHALL COVER ALL OPIOID SALES OCCUR-
 RING IN THE PERIOD BETWEEN THE EFFECTIVE DATE OF THIS ARTICLE AND DECEM-
 BER THIRTY-FIRST, TWO THOUSAND EIGHTEEN.   EVERY ESTABLISHMENT  REQUIRED
 TO  FILE  A  RETURN UNDER THIS SECTION SHALL, AT THE TIME OF FILING SUCH
 RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF  SURCHARGE  DUE  FOR
 THE  PERIOD  COVERED BY SUCH RETURN.  IF A RETURN IS NOT FILED WHEN DUE,
 THE SURCHARGE SHALL BE DUE ON THE DAY ON WHICH THE RETURN IS REQUIRED TO
 BE FILED. THE COMMISSIONER MAY REQUIRE THAT  THE  RETURNS  AND  PAYMENTS
 REQUIRED BY THIS ARTICLE BE FILED OR PAID ELECTRONICALLY.
   3. ESTABLISHMENTS MAKING SALES OF OPIOIDS IN THIS STATE SHALL MAINTAIN
 ALL  INVOICES  PERTAINING  TO  SUCH SALES FOR SIX YEARS AFTER THE RETURN
 REPORTING SUCH SALES IS FILED WITH THE COMMISSIONER, UNLESS THE  COMMIS-
 SIONER  PROVIDES FOR A DIFFERENT RETENTION PERIOD BY RULE OR REGULATION.
 THE ESTABLISHMENT SHALL PRODUCE SUCH RECORDS UPON DEMAND BY THE  COMMIS-
 SIONER.
   4.  WHENEVER THE COMMISSIONER SHALL DETERMINE THAT ANY MONEYS RECEIVED
 UNDER THE PROVISIONS OF THIS ARTICLE WERE PAID IN ERROR, HE OR  SHE  MAY
 CAUSE  THE  SAME  TO BE REFUNDED, WITH INTEREST, EXCEPT THAT NO INTEREST

 S. 7509                            57                            A. 9509
 
 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 SURCHARGE, 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 SURCHARGE 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  THAT  THE  COMMIS-
 SIONER  SHALL DETERMINE WERE PAID IN ERROR, MAY BE REFUNDED OUT OF FUNDS
 IN THE CUSTODY OF THE COMPTROLLER  TO  THE  CREDIT  OF  SUCH  SURCHARGES
 PROVIDED  AN  APPLICATION THEREFOR IS FILED WITH THE COMMISSIONER WITHIN
 TWO YEARS FROM THE TIME THE ERRONEOUS PAYMENT WAS MADE.
   5. THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL  APPLY
 TO THE SURCHARGE IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE
 SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCOR-
 PORATED  IN  FULL  INTO  THIS  SECTION AND HAD EXPRESSLY REFERRED TO THE
 SURCHARGE 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.
   6. (A) THE SURCHARGES, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE
 AND COLLECTED OR RECEIVED BY THE COMMISSIONER SHALL BE  DEPOSITED  DAILY
 WITH  SUCH  RESPONSIBLE BANKS, BANKING HOUSES OR TRUST COMPANIES, AS MAY
 BE DESIGNATED BY THE STATE COMPTROLLER, TO  THE  CREDIT  OF  THE  OPIOID
 PREVENTION,  TREATMENT  AND  RECOVERY  ACCOUNT  ESTABLISHED  PURSUANT TO
 SECTION NINETY-SEVEN-AAAAA OF THE STATE FINANCE LAW. AN ACCOUNT  MAY  BE
 ESTABLISHED  IN  ONE OR MORE OF SUCH DEPOSITORIES. SUCH DEPOSITS WILL BE
 KEPT SEPARATE AND APART FROM ALL OTHER MONEY IN THE  POSSESSION  OF  THE
 STATE COMPTROLLER. THE STATE COMPTROLLER SHALL REQUIRE ADEQUATE SECURITY
 FROM  ALL  SUCH DEPOSITORIES. OF THE TOTAL REVENUE COLLECTED OR RECEIVED
 UNDER THIS ARTICLE, THE STATE COMPTROLLER SHALL RETAIN  SUCH  AMOUNT  AS
 THE  COMMISSIONER  MAY  DETERMINE TO BE NECESSARY FOR REFUNDS UNDER THIS
 ARTICLE. THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM  THE
 AMOUNTS  IT  RECEIVES  UNDER THIS ARTICLE, BEFORE DEPOSIT INTO THE TRUST
 ACCOUNTS DESIGNATED BY THE STATE COMPTROLLER, A REASONABLE AMOUNT NECES-
 SARY TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO  REIM-
 BURSE  THE  DEPARTMENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT AND
 DISTRIBUTE THE SURCHARGE IMPOSED BY THIS ARTICLE.
   (B) ON OR BEFORE THE TWELFTH AND TWENTY-SIXTH DAY OF  EACH  SUCCEEDING
 MONTH,  AFTER  RESERVING SUCH AMOUNT FOR SUCH REFUNDS AND DEDUCTING SUCH
 AMOUNTS FOR SUCH COSTS, AS PROVIDED FOR IN PARAGRAPH (A) OF THIS  SUBDI-
 VISION,  THE  COMMISSIONER  SHALL  CERTIFY  TO THE STATE COMPTROLLER THE
 AMOUNT OF ALL REVENUES SO RECEIVED DURING THE PRIOR MONTH BECAUSE OF THE
 SURCHARGES, INTEREST AND PENALTIES SO IMPOSED. THE AMOUNT OF REVENUES SO
 CERTIFIED SHALL BE PAID OVER BY THE FIFTEENTH AND THE FINAL BUSINESS DAY
 OF EACH SUCCEEDING MONTH FROM SUCH ACCOUNT INTO THE  OPIOID  PREVENTION,
 TREATMENT  AND  RECOVERY ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY-
 SEVEN-AAAAA OF THE STATE FINANCE LAW.
   7. THE COMMISSIONERS OF EDUCATION AND HEALTH SHALL COOPERATE WITH  THE
 COMMISSIONER IN ADMINISTERING THIS SURCHARGE, INCLUDING SHARING WITH THE
 COMMISSIONER PERTINENT INFORMATION ABOUT ESTABLISHMENTS UPON THE REQUEST
 OF THE COMMISSIONER.
   § 494. 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-

 S. 7509                            58                            A. 9509
 
 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 AN ESTABLISHMENT 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,  THE  STATE  DEPARTMENT  OF  EDUCATION 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 PROCEEDING
 INVOLVING THE COLLECTION OF A TAX DUE UNDER THIS CHAPTER  TO  WHICH  THE
 STATE  OR  THE COMMISSIONER IS A PARTY OR A CLAIMANT OR ON BEHALF OF ANY
 PARTY TO ANY ACTION OR 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, IN ANY OF WHICH EVENTS THE  COURT
 MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT IN EVIDENCE SO MUCH OF SAID
 RETURNS OR REPORTS OR OF THE FACTS SHOWN THEREBY AS ARE PERTINENT TO THE
 ACTION  OR  PROCEEDING AND NO MORE. NOTHING HEREIN SHALL BE CONSTRUED TO
 PROHIBIT THE COMMISSIONER, IN HIS OR HER DISCRETION, FROM  ALLOWING  THE
 INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED
 UNDER  THIS  ARTICLE, OR FROM PROVIDING ANY INFORMATION CONTAINED IN ANY
 SUCH RETURN OR REPORT, BY OR TO A DULY AUTHORIZED OFFICER OR EMPLOYEE OF
 THE STATE DEPARTMENT OF HEALTH OR THE STATE DEPARTMENT OF EDUCATION; NOR
 TO PROHIBIT THE INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN
 OR REPORT FILED UNDER THIS ARTICLE, OR THE PROVISION OF ANY  INFORMATION
 CONTAINED  THEREIN,  BY OR TO THE ATTORNEY GENERAL OR OTHER LEGAL REPRE-
 SENTATIVES 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;  NOR  TO  PROHIBIT  THE
 COMMISSIONER  FROM  PROVIDING OR CERTIFYING TO THE DIVISION OF BUDGET OR
 THE COMPTROLLER THE TOTAL NUMBER OF RETURNS OR REPORTS FILED UNDER  THIS
 ARTICLE IN ANY REPORTING PERIOD AND THE TOTAL COLLECTIONS RECEIVED THER-
 EFROM; NOR TO PROHIBIT 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 SURCHARGE PAID BY AN ESTABLISHMENT OR OTHER
 PERSON UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO AN ESTABLISH-
 MENT,  OR  A  DULY  AUTHORIZED  REPRESENTATIVE  OF SUCH ESTABLISHMENT, A
 CERTIFIED COPY OF ANY RETURN  OR  REPORT  FILED  BY  SUCH  ESTABLISHMENT
 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.
   2. (A) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
 PROVISIONS  OF  SUBDIVISION  ONE 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) A VIOLATION OF THIS ARTICLE SHALL BE  CONSIDERED  A  VIOLATION  OF
 SECRECY PROVISIONS UNDER ARTICLE THIRTY-SEVEN OF THIS CHAPTER.
   § 2. Section 1825 of the tax law, as amended by section 20 of part AAA
 of chapter 59 of the laws of 2017, is amended to read as follows:

 S. 7509                            59                            A. 9509
 
   §  1825.  Violation  of secrecy provisions of the tax law.--Any person
 who violates the provisions of [subdivision (b) of section  twenty-one,]
 subdivision one of section two hundred two, subdivision eight of section
 two  hundred  eleven, subdivision (a) of section three hundred fourteen,
 subdivision  one  or  two  of section four hundred thirty-seven, section
 four hundred eighty-seven, SECTION FOUR HUNDRED NINETY-FOUR, subdivision
 one or two of section five hundred fourteen, subsection (e)  of  section
 six  hundred  ninety-seven, subsection (a) of section nine hundred nine-
 ty-four, subdivision (a) of section eleven  hundred  forty-six,  section
 twelve hundred eighty-seven, section twelve hundred ninety-six, subdivi-
 sion  (a)  of  section  fourteen  hundred  eighteen,  subdivision (a) of
 section fifteen hundred eighteen, subdivision  (a)  of  section  fifteen
 hundred  fifty-five  of  this  chapter,  and  subdivision (e) of section
 11-1797 of the administrative code of the city  of  New  York  shall  be
 guilty of a misdemeanor.
   § 3. The state finance law is amended by adding a new section 97-aaaaa
 to read as follows:
   §  97-AAAAA.  OPIOID  PREVENTION,  TREATMENT  AND RECOVERY ACCOUNT. 1.
 THERE IS HEREBY ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMP-
 TROLLER  AND  THE COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT OF THE
 MISCELLANEOUS SPECIAL  REVENUE  ACCOUNT  TO  BE  KNOWN  AS  THE  "OPIOID
 PREVENTION, TREATMENT AND RECOVERY ACCOUNT".
   2.  MONEYS  IN  THE  OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT
 SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS
 IN THE CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION
 AND FINANCE.
   3. THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT SHALL CONSIST
 OF MONEYS APPROPRIATED FOR THE PURPOSE OF SUCH  ACCOUNT,  MONEYS  TRANS-
 FERRED  TO  SUCH  ACCOUNT  PURSUANT  TO LAW, CONTRIBUTIONS CONSISTING OF
 PROMISES OR GRANTS OF ANY MONEY OR PROPERTY OF ANY KIND OR VALUE, OR ANY
 OTHER THING OF VALUE, INCLUDING GRANTS  OR  OTHER  FINANCIAL  ASSISTANCE
 FROM  ANY  AGENCY OF GOVERNMENT AND MONEYS REQUIRED BY THE PROVISIONS OF
 THIS SECTION OR ANY OTHER LAW TO  BE  PAID  INTO  OR  CREDITED  TO  THIS
 ACCOUNT.  THE  ACCOUNT  SHALL  ALSO  CONSIST OF MONEYS RECEIVED FROM ANY
 LITIGATION OR ENFORCEMENT ACTIONS INITIATED  AGAINST  OPIOID  PHARMACEU-
 TICAL MANUFACTURERS, DISTRIBUTORS AND WHOLESALERS.
   4.  MONEYS  OF  THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT,
 WHEN ALLOCATED, SHALL BE AVAILABLE,  SUBJECT  TO  THE  APPROVAL  OF  THE
 DIRECTOR  OF  THE  BUDGET,  TO SUPPORT PROGRAMS OPERATED BY THE NEW YORK
 STATE OFFICE OF ALCOHOLISM AND  SUBSTANCE  ABUSE  SERVICES  OR  AGENCIES
 CERTIFIED,  AUTHORIZED,  APPROVED  OR  OTHERWISE  FUNDED BY THE NEW YORK
 STATE OFFICE OF ALCOHOLISM  AND  SUBSTANCE  ABUSE  SERVICES  TO  PROVIDE
 OPIOID TREATMENT, RECOVERY AND PREVENTION AND EDUCATION SERVICES; AND TO
 PROVIDE  SUPPORT  FOR  THE  PRESCRIPTION  MONITORING PROGRAM REGISTRY IF
 ESTABLISHED.
   5. AT THE REQUEST OF THE BUDGET DIRECTOR, THE STATE COMPTROLLER  SHALL
 TRANSFER  MONEYS  TO  SUPPORT  THE  COSTS OF OPIOID TREATMENT, RECOVERY,
 PREVENTION, EDUCATION SERVICES, AND OTHER  RELATED  PROGRAMS,  FROM  THE
 OPIOID  PREVENTION,  TREATMENT AND RECOVERY ACCOUNT TO ANY OTHER FUND OF
 THE STATE.
   6. NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL OR  SPECIAL  LAW,  NO
 MONEYS  SHALL  BE  AVAILABLE  FROM  THE OPIOID PREVENTION, TREATMENT AND
 RECOVERY ACCOUNT UNTIL A CERTIFICATE OF ALLOCATION  AND  A  SCHEDULE  OF
 AMOUNTS  TO BE AVAILABLE THEREFOR SHALL HAVE BEEN ISSUED BY THE DIRECTOR
 OF THE BUDGET, UPON THE RECOMMENDATION OF THE COMMISSIONER OF THE OFFICE
 OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES, AND A COPY OF  SUCH  CERTIF-

 S. 7509                            60                            A. 9509
 
 ICATE  FILED  WITH  THE  COMPTROLLER, THE CHAIRMAN OF THE SENATE FINANCE
 COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY  WAYS  AND  MEANS  COMMITTEE.
 SUCH CERTIFICATE MAY BE AMENDED FROM TIME TO TIME BY THE DIRECTOR OF THE
 BUDGET,  UPON  THE  RECOMMENDATION  OF THE COMMISSIONER OF THE OFFICE OF
 ALCOHOLISM AND SUBSTANCE ABUSE SERVICES, AND A COPY  OF  SUCH  AMENDMENT
 SHALL  BE FILED WITH THE COMPTROLLER, THE CHAIRMAN OF THE SENATE FINANCE
 COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
   7. THE MONEYS, WHEN  ALLOCATED,  SHALL  BE  PAID  OUT  OF  THE  OPIOID
 PREVENTION, TREATMENT AND RECOVERY ACCOUNT, PURSUANT TO SUBDIVISION FOUR
 OF  THIS  SECTION,  AND  SUBJECT  TO THE APPROVAL OF THE DIRECTOR OF THE
 BUDGET, ON THE AUDIT AND WARRANT OF THE COMPTROLLER ON  VOUCHERS  CERTI-
 FIED OR APPROVED BY (A) THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND
 SUBSTANCE ABUSE SERVICES OR HIS OR HER DESIGNEE; OR (B) THE COMMISSIONER
 OF THE DEPARTMENT OF HEALTH OR HIS OR HER DESIGNEE.
   § 4. This act shall take effect July 1, 2018.

                                  PART DD
 
   Section 1. The tax law is amended by adding a new section 1521 to read
 as follows:
   §  1521.  HEALTHCARE INSURANCE WINDFALL PROFIT FEE. (A) IN ADDITION TO
 ALL TAXES, SURCHARGES, AND FEES IMPOSED UNDER THIS CHAPTER,  THE  INSUR-
 ANCE  LAW,  THE FINANCIAL SERVICES LAW, AND THE PUBLIC HEALTH LAW, THERE
 IS HEREBY IMPOSED FOR EACH TAXABLE YEAR BEGINNING AFTER  DECEMBER  THIR-
 TY-FIRST,  TWO  THOUSAND  SEVENTEEN, A FOURTEEN PERCENT SURCHARGE ON THE
 NET UNDERWRITING GAIN FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS
 LOCATED OR RESIDENT WITHIN THIS STATE OF EVERY CORPORATION  (1)  AUTHOR-
 IZED  TO  TRANSACT AN INSURANCE BUSINESS IN THIS STATE, OR (2) THAT IS A
 HEALTH MAINTENANCE ORGANIZATION REQUIRED  TO  OBTAIN  A  CERTIFICATE  OF
 AUTHORITY UNDER ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW.
   (B)  FOR  PURPOSES  OF THIS SECTION, THE TERM "HEALTH INSURANCE" SHALL
 MEAN COMPREHENSIVE HOSPITAL AND  MEDICAL  EXPENSE  INSURANCE  INCLUDING,
 WITHOUT  LIMITATION,  COMPREHENSIVE  COVERAGE ISSUED BY A HEALTH MAINTE-
 NANCE ORGANIZATION, DISABILITY  INCOME  INSURANCE,  ACCIDENT  INSURANCE,
 MEDICARE  SUPPLEMENT  INSURANCE,  SPECIFIED  DISEASE  INSURANCE,  DENTAL
 INSURANCE, VISION INSURANCE, STOP-LOSS INSURANCE, FIXED INDEMNITY INSUR-
 ANCE, AND HOSPITAL INDEMNITY INSURANCE.
   (C)(1) FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE SALE
 OF HEALTH INSURANCE WRITTEN ON RISKS LOCATED  OR  RESIDENT  WITHIN  THIS
 STATE"  SHALL  EQUAL  A  CORPORATION'S  GROSS  RECEIPTS FROM THE SALE OF
 HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT  WITHIN  NEW  YORK
 LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO THE
 GROSS  RECEIPTS.  THE  COMPUTATION  OF  "GROSS RECEIPTS FROM THE SALE OF
 HEALTH INSURANCE WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN  NEW  YORK"
 AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO GROSS RECEIPTS" SHALL
 BE MADE PURSUANT TO THE RULES SET FORTH IN REGULATIONS TO BE PROMULGATED
 BY THE SUPERINTENDENT OF FINANCIAL SERVICES.
   (2)  FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE OPERA-
 TION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT
 OF HEALTH" SHALL EQUAL A CORPORATION'S GROSS RECEIPTS FROM THE OPERATION
 OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE  DEPARTMENT  OF
 HEALTH LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED
 TO  SUCH  GROSS  RECEIPTS.  THE  COMPUTATION OF "GROSS RECEIPTS FROM THE
 OPERATION OF A MANAGED  CARE  ORGANIZATION  BUSINESS  REGULATED  BY  THE
 DEPARTMENT OF HEALTH" AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO

 S. 7509                            61                            A. 9509
 
 GROSS  RECEIPTS"  SHALL BE MADE PURSUANT TO THE RULES SET FORTH IN REGU-
 LATIONS TO BE PROMULGATED BY THE SUPERINTENDENT OF FINANCIAL SERVICES.
   (D)  NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED BY
 THIS SECTION SHALL NOT BE DEDUCTIBLE BY A CORPORATION IN DETERMINING ITS
 LIABILITY FOR ANY OTHER TAX, SURCHARGE, OR FEE IMPOSED UNDER ANY LAW.
   (E) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED  BY
 THIS  SECTION  SHALL NOT BE CONSIDERED BY ANY CORPORATION, AND SHALL NOT
 BE DEEMED TO BE AN EXPENSE, COST, OR LIABILITY, FOR PURPOSES  OF  ESTAB-
 LISHING OR SETTING THE RATE TO BE CHARGED FOR ANY HEALTH INSURANCE POLI-
 CY.
   (F)  THE SURCHARGE IMPOSED BY THIS SECTION SHALL BE CALCULATED BY EACH
 CORPORATION ON AN ANNUAL BASIS WITHOUT REGARD TO THE ITEMS  OF  GAIN  OR
 LOSS FROM ANY OTHER PERIOD.
   (G) (1) THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE POWER,
 DUTY  AND  RESPONSIBILITY TO EXAMINE RETURNS OF A CORPORATION FILED WITH
 HIM OR HER PURSUANT TO THIS SECTION AND, TOGETHER WITH ANY OTHER  INFOR-
 MATION  WITHIN  HIS  OR  HER POSSESSION OR THAT MAY COME INTO HIS OR HER
 POSSESSION, TO ASCERTAIN THE CORRECT AMOUNT OF SURCHARGE  IMPOSED  UNDER
 THIS  SECTION  OF  ANY  CORPORATION. FOR THE PURPOSE OF ASCERTAINING THE
 CORRECTNESS OF ANY SUCH SURCHARGE IMPOSED UNDER THIS SECTION OR FOR  THE
 PURPOSE  OF  MAKING  AN  ESTIMATE  OF THE SURCHARGE LIABILITY UNDER THIS
 SECTION OF ANY CORPORATION, THE  SUPERINTENDENT  OF  FINANCIAL  SERVICES
 SHALL  HAVE  THE POWER TO EXAMINE OR CAUSE TO HAVE EXAMINED BY ANY AGENT
 OR REPRESENTATIVE DESIGNATED BY HIM OR HER FOR THAT PURPOSE, ANY  BOOKS,
 PAPERS,  RECORDS  OR  MEMORANDA  BEARING UPON THE MATTERS REQUIRED TO BE
 INCLUDED IN THE RETURN.
   (2) IF THE SUPERINTENDENT OF FINANCIAL SERVICES  ASCERTAINS  THAT  THE
 AMOUNT OF SURCHARGE IMPOSED UNDER THIS SECTION AS SHOWN ON THE RETURN OF
 ANY CORPORATION IS LESS THAN THE AMOUNT OF SURCHARGE DISCLOSED BY HIS OR
 HER EXAMINATION, HE OR SHE SHALL PROPOSE, IN WRITING, TO THE COMMISSION-
 ER  THE  ISSUANCE  OF  A  NOTICE  OF DEFICIENCY FOR THE AMOUNT DUE. IF A
 CORPORATION FAILS TO FILE A RETURN WITH THE SUPERINTENDENT OF  FINANCIAL
 SERVICES  WITHIN  THE  TIME REQUIRED FOR THE FILING OF SUCH RETURN (WITH
 REGARD TO ANY EXTENSION OF TIME FOR THE FILING THEREOF), THE SUPERINTEN-
 DENT OF FINANCIAL SERVICES SHALL MAKE  AN  ESTIMATE  OF  THE  AMOUNT  OF
 SURCHARGE DUE FOR THE PERIOD IN RESPECT TO WHICH SUCH CORPORATION FAILED
 TO FILE THE RETURN. THE ESTIMATE SHALL BE MADE FROM ANY AVAILABLE INFOR-
 MATION WHICH IS IN THE POSSESSION OR MAY COME INTO THE POSSESSION OF THE
 SUPERINTENDENT  OF  FINANCIAL  SERVICES  AND HE OR SHE SHALL PROPOSE, IN
 WRITING, TO THE COMMISSIONER THE ISSUANCE OF A NOTICE OF DEFICIENCY  FOR
 THE  AMOUNT  OF  SUCH ESTIMATED SURCHARGE. ANY PROPOSAL PURSUANT TO THIS
 PARAGRAPH SHALL SET FORTH THE BASIS  THEREOF  AND  THE  DETAILS  OF  ITS
 COMPUTATION.
   (3)  THE  COMMISSIONER SHALL, ON RECEIPT OF A PROPOSAL FROM THE SUPER-
 INTENDENT OF FINANCIAL SERVICES PURSUANT TO PARAGRAPH TWO OF THIS SUBDI-
 VISION, TAKE APPROPRIATE ACTION UNDER THIS CHAPTER  FOR  THE  ASSESSMENT
 AND  COLLECTION  OF  THE AMOUNT OF SURCHARGE, TOGETHER WITH INTEREST AND
 PENALTIES, SHOWN BY SUCH PROPOSAL TO BE  DUE.    THE  SUPERINTENDENT  OF
 FINANCIAL  SERVICES  SHALL  BE  REQUIRED  TO  ASSIST THE COMMISSIONER IN
 DEFENDING THE CORRECTNESS OF THE AMOUNT ASSESSED AT  ANY  CONFERENCE  AT
 THE BUREAU OF CONCILIATION AND MEDIATION SERVICES AND AT THE DIVISION OF
 TAX APPEALS.
   (4) SUBJECT TO THE CONSENT OF THE SUPERINTENDENT OF FINANCIAL SERVICES
 AND  NOTWITHSTANDING  ANY  OTHER  PROVISIONS OF LAW TO THE CONTRARY, THE
 COMMISSIONER MAY DELEGATE SUCH OTHER OF HIS OR  HER  POWERS  AND  DUTIES
 WITH  RESPECT  TO THE ADMINISTRATION AND COLLECTION OF THE TAXES IMPOSED

 S. 7509                            62                            A. 9509
 
 UNDER THIS SECTION TO THE SUPERINTENDENT OF FINANCIAL SERVICES,  AS  THE
 COMMISSIONER  FINDS NECESSARY IN ORDER TO FACILITATE SUCH ADMINISTRATION
 AND COLLECTION.
   (5)  THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE AUTHORITY
 TO ISSUE SUCH RULES AND REGULATIONS THAT ARE NECESSARY TO IMPLEMENT  THE
 PROVISIONS OF THIS SECTION.
   (H)  (1) EVERY CORPORATION SUBJECT TO THE SURCHARGE IN SUBDIVISION (A)
 OF THIS SECTION, SHALL ANNUALLY, ON OR BEFORE THE FIFTEENTH DAY  OF  THE
 THIRD  MONTH  FOLLOWING  THE  CLOSE OF ITS TAXABLE YEAR, TRANSMIT TO THE
 SUPERINTENDENT OF FINANCIAL SERVICES A RETURN IN A  FORM  PRESCRIBED  BY
 THE  SUPERINTENDENT OF FINANCIAL SERVICES SETTING FORTH SUCH INFORMATION
 AS SUCH SUPERINTENDENT MAY PRESCRIBE AND EVERY CORPORATION WHICH  CEASES
 TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS SECTION SHALL TRANSMIT TO
 THE  SUPERINTENDENT  OF  FINANCIAL SERVICES A RETURN ON THE DATE OF SUCH
 CESSATION OR AT SUCH OTHER  TIME  AS  SUCH  SUPERINTENDENT  MAY  REQUIRE
 COVERING  EACH YEAR OR PERIOD FOR WHICH NO RETURN WAS THERETOFORE FILED.
 A COPY OF EACH RETURN REQUIRED UNDER  THIS  SUBDIVISION  SHALL  ALSO  BE
 TRANSMITTED  TO  THE  COMMISSIONER  AT OR BEFORE THE TIMES SPECIFIED FOR
 FILING SUCH RETURNS WITH THE COMMISSIONER.
   (2) EVERY CORPORATION SHALL ALSO TRANSMIT SUCH OTHER RETURNS AND  SUCH
 FACTS  AND  INFORMATION  AS THE SUPERINTENDENT OF FINANCIAL SERVICES MAY
 REQUIRE IN THE ADMINISTRATION OF THIS SECTION.
   (3) THE SUPERINTENDENT OF FINANCIAL SERVICES MAY  GRANT  A  REASONABLE
 EXTENSION  OF  TIME  FOR  FILING  RETURNS WHENEVER GOOD CAUSE EXISTS. AN
 AUTOMATIC EXTENSION OF FOUR MONTHS FOR THE FILING OF ITS RETURN SHALL BE
 ALLOWED ANY CORPORATION, IF WITHIN THE TIME PRESCRIBED BY PARAGRAPH  ONE
 OF  THIS  SUBDIVISION, SUCH CORPORATION FILES WITH THE SUPERINTENDENT OF
 FINANCIAL SERVICES AN APPLICATION FOR EXTENSION  IN  SUCH  FORM  AS  THE
 SUPERINTENDENT OF FINANCIAL SERVICES MAY PRESCRIBE AND PAYS ON OR BEFORE
 THE DATE OF SUCH FILING THE AMOUNT PROPERLY ESTIMATED AS ITS SURCHARGE.
   (4)  EVERY  RETURN  SHALL  HAVE ANNEXED THERETO A CERTIFICATION BY THE
 PRESIDENT,  VICE  PRESIDENT,  TREASURER,  ASSISTANT   TREASURER,   CHIEF
 ACCOUNTING  OFFICER OR ANY OTHER OFFICER OF THE CORPORATION DULY AUTHOR-
 IZED SO TO ACT TO THE EFFECT THAT THE STATEMENTS CONTAINED  THEREIN  ARE
 TRUE. THE FACT THAT AN INDIVIDUAL'S NAME IS SIGNED ON A CERTIFICATION OF
 THE RETURN SHALL BE PRIMA FACIE EVIDENCE THAT SUCH INDIVIDUAL IS AUTHOR-
 IZED TO SIGN AND CERTIFY THE RETURN ON BEHALF OF THE CORPORATION.
   (5)  EACH  CORPORATION  SUBJECT TO THE SURCHARGE IN SUBDIVISION (A) OF
 THIS SECTION SHALL FILE A SEPARATE RETURN FOR EACH YEAR SUCH CORPORATION
 IS SUBJECT TO THE SURCHARGE.
   (6) IN CASE  IT  SHALL  APPEAR  TO  THE  SUPERINTENDENT  OF  FINANCIAL
 SERVICES THAT ANY AGREEMENT, UNDERSTANDING OR ARRANGEMENT EXISTS BETWEEN
 THE  CORPORATION AND ANY OTHER ENTITY, PERSON OR FIRM WHEREBY THE ACTIV-
 ITY, BUSINESS, INCOME OR CAPITAL OF THE  CORPORATION  IS  IMPROPERLY  OR
 INACCURATELY  REFLECTED,  THE  SUPERINTENDENT  OF  FINANCIAL SERVICES IS
 AUTHORIZED AND EMPOWERED IN HIS OR HER DISCRETION AND IN SUCH MANNER  AS
 HE OR SHE MAY DETERMINE, TO ADJUST ITEMS OF INCOME, DEDUCTIONS AND CAPI-
 TAL  SO  AS  EQUITABLY  TO DETERMINE THE SURCHARGE. WHERE (A) ANY CORPO-
 RATION CONDUCTS ITS ACTIVITY OR BUSINESS UNDER ANY  AGREEMENT,  ARRANGE-
 MENT OR UNDERSTANDING IN SUCH MANNER AS EITHER DIRECTLY OR INDIRECTLY TO
 BENEFIT  ITS  MEMBERS  OR STOCKHOLDERS, OR ANY OF THEM, OR ANY PERSON OR
 PERSONS DIRECTLY OR INDIRECTLY INTERESTED IN SUCH ACTIVITY OR  BUSINESS,
 BY  ENTERING  INTO  ANY  TRANSACTION  AT  MORE OR LESS THAN A FAIR PRICE
 WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR UNDERSTANDING, MIGHT  HAVE
 BEEN  PAID  OR  RECEIVED THEREFOR, OR (B) ANY CORPORATION, A SUBSTANTIAL
 PORTION OF WHOSE CAPITAL STOCK IS OWNED EITHER DIRECTLY OR INDIRECTLY BY

 S. 7509                            63                            A. 9509
 
 ANOTHER CORPORATION, ENTERS INTO ANY TRANSACTION WITH SUCH OTHER  CORPO-
 RATION  ON  SUCH TERMS AS TO CREATE AN IMPROPER GAIN OR LOSS AMOUNT, THE
 SUPERINTENDENT OF FINANCIAL SERVICES MAY INCLUDE  IN  THE  CORPORATION'S
 GAIN  SUBJECT  TO  THE  SURCHARGE  THE FAIR AMOUNTS, WHICH, BUT FOR SUCH
 AGREEMENT, ARRANGEMENT OR  UNDERSTANDING,  THE  CORPORATION  MIGHT  HAVE
 DERIVED FROM SUCH TRANSACTION.
   (I)  (1) TO THE EXTENT THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT
 HAVE BEEN PREVIOUSLY PAID, THE SURCHARGE, OR THE BALANCE THEREOF,  SHALL
 BE  PAYABLE  TO  THE SUPERINTENDENT OF FINANCIAL SERVICES IN FULL AT THE
 TIME THE CORPORATION'S RETURN IS REQUIRED TO BE FILED.
   (2) IF THE CORPORATION, WITHIN THE TIME PRESCRIBED BY SUBDIVISION  (F)
 OF  THIS  SECTION, SHALL HAVE APPLIED FOR AN AUTOMATIC EXTENSION OF TIME
 TO FILE ITS ANNUAL RETURN AND SHALL HAVE PAID TO THE  SUPERINTENDENT  OF
 FINANCIAL  SERVICES  ON  OR BEFORE THE DATE SUCH APPLICATION IS FILED AN
 AMOUNT PROPERLY ESTIMATED AS PROVIDED  BY  SAID  SUBDIVISION,  THE  ONLY
 AMOUNT  PAYABLE  IN  ADDITION  TO THE SURCHARGE SHALL BE INTEREST AT THE
 UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBSECTION (E)  OF
 SECTION  ONE  THOUSAND NINETY-SIX OF THIS CHAPTER OR, IF NO RATE IS SET,
 AT THE RATE OF SIX PERCENT PER  ANNUM  UPON  THE  AMOUNT  BY  WHICH  THE
 SURCHARGE,  OR  PORTION THEREOF PAYABLE ON OR BEFORE THE DATE THE RETURN
 WAS REQUIRED TO BE FILED, EXCEEDS THE AMOUNT SO PAID. FOR  THE  PURPOSES
 OF THE PRECEDING SENTENCE:
   (A)  AN  AMOUNT  SO  PAID  SHALL BE DEEMED PROPERLY ESTIMATED IF IT IS
 EITHER (I) NOT LESS THAN NINETY PERCENT  OF  THE  SURCHARGE  AS  FINALLY
 DETERMINED,  OR  (II)  NOT  LESS  THAN THE SURCHARGE SHOWN ON THE CORPO-
 RATION'S RETURN FOR THE PRECEDING TAXABLE YEAR, IF SUCH  PRECEDING  YEAR
 WAS A TAXABLE YEAR OF TWELVE MONTHS; AND
   (B) THE TIME WHEN A RETURN IS REQUIRED TO BE FILED SHALL BE DETERMINED
 WITHOUT REGARD TO ANY EXTENSION OF TIME FOR FILING SUCH RETURN.
   (3)  THE  SUPERINTENDENT  OF FINANCIAL SERVICES MAY GRANT A REASONABLE
 EXTENSION OF TIME FOR PAYMENT OF ANY SURCHARGE IMPOSED BY  THIS  SECTION
 UNDER SUCH CONDITIONS AS HE OR SHE DEEMS JUST AND PROPER.
   (J)  ALL  SURCHARGES,  INTEREST AND PENALTIES COLLECTED OR RECEIVED BY
 THE SUPERINTENDENT OF FINANCIAL SERVICES UNDER  THIS  SECTION  SHALL  BE
 DEPOSITED INTO THE HEALTH CARE REFORM ACT (HCRA) RESOURCES FUND PURSUANT
 TO SECTION NINETY-TWO-DD OF THE STATE FINANCE LAW.
   (K) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY
 TO  THE  PROVISIONS OF THIS SECTION IN THE SAME MANNER AND WITH THE SAME
 FORCE AND EFFECT AS IF THE LANGUAGE OF  SUCH  ARTICLE  TWENTY-SEVEN  HAD
 BEEN  INCORPORATED  IN FULL INTO THIS ARTICLE AND HAD EXPRESSLY REFERRED
 TO THE SURCHARGE UNDER THIS SECTION, EXCEPT TO THE EXTENT THAT ANY  SUCH
 PROVISION  IS EITHER INCONSISTENT WITH A PROVISION OF THIS SECTION OR IS
 NOT RELEVANT TO THIS SECTION. THE SUPERINTENDENT OF  FINANCIAL  SERVICES
 SHALL  HAVE THE SAME POWER AND AUTHORITY THAT THE COMMISSIONER HAS UNDER
 ARTICLE TWENTY-SEVEN OF THIS CHAPTER.
   § 2. This act shall take effect immediately.
 
                                  PART EE
 
   Section 1. Subdivision 1 of Section 208  of  the  racing,  pari-mutuel
 wagering  and  breeding  law,  as  amended by chapter 140 of the laws of
 2008, is amended to read as follows:
   1. In consideration of the franchise and in accordance with its  fran-
 chise  agreement,  the  franchised corporation shall remit to the state,
 each year, no later than April fifth, a franchise fee payment. The fran-
 chise fee shall be calculated and equal to the lesser of  paragraph  (a)

 S. 7509                            64                            A. 9509
 
 or  (b) of this subdivision as follows: (a) adjusted net income, includ-
 ing all sources of audited generally accepted accounting principles  net
 income  as  of December thirty-first (i) plus the amount of depreciation
 and  amortization  for  such  year as set forth on the statement of cash
 flows (ii) less the amount received by the  franchised  corporation  for
 capital  expenditures  and  (iii)  less  principal payments made for the
 repayment of debt; or (b) operating cash which is defined as cash avail-
 able on December thirty-first (i) which  excludes  all  restricted  cash
 accounts,  segregated  accounts  as per audited financial statements and
 cash on hand needed to fund the on-track pari-mutuel operations  through
 the  vault,  (ii)  less  [forty-five]  NINETY days of operating expenses
 pursuant to generally accepted accounting principles which shall  be  an
 average  calculated  by dividing the current year's annual budget by the
 number of days in such year and multiplying that number by  [forty-five]
 NINETY.
   § 2. Section 203 of the racing, pari-mutuel wagering and breeding law,
 as  amended  by  chapter  18  of the laws of 2008, is amended to read as
 follows:
   § 203. Right to hold race meetings and  races.    1.  Any  corporation
 formed  under  the  provisions  of  this  article,  if so claimed in its
 certificate of organization,  and  if  it  shall  comply  with  all  the
 provisions  of  this  article, and any other corporation entitled to the
 benefits and privileges of this article as hereinafter  provided,  shall
 have  the  power and the right to hold one or more running race meetings
 in each year, and to hold, maintain and conduct running  races  at  such
 meetings.  At  such running race meetings the corporation, or the owners
 of horses engaged in such races, or others who are not  participants  in
 the  race,  may  contribute  purses,  prizes,  premiums  or stakes to be
 contested for, but no person or persons other than the owner  or  owners
 of  a  horse  or  horses  contesting  in a race shall have any pecuniary
 interest in a purse, prize, premium or stake contested for in such race,
 or be entitled to or receive any portion  thereof  after  such  race  is
 finished,  and the whole of such purse, prize, premium or stake shall be
 allotted in accordance with the terms and conditions of such race. Races
 conducted by a franchised corporation shall be  permitted  only  between
 sunrise and sunset.
   2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A FRAN-
 CHISED  CORPORATION  SHALL BE PERMITTED TO CONDUCT RACES AFTER SUNSET AT
 THE BELMONT PARK RACETRACK, ONLY  ON  THE  MAIN  TRACK  IN  ITS  CURRENT
 CONFIGURATION, ONLY IF SUCH RACES CONCLUDE BEFORE HALF PAST TEN O' CLOCK
 POST  MERIDIAN,  AND  ONLY  IF SUCH RACES OCCUR ON THURSDAYS, FRIDAYS OR
 SATURDAYS. THE FRANCHISED CORPORATION SHALL COORDINATE  WITH  A  HARNESS
 RACING  ASSOCIATION  OR CORPORATION AUTHORIZED TO OPERATE IN WESTCHESTER
 COUNTY TO ENSURE THAT THE STARTING TIMES OF ALL  SUCH  RACES  ARE  STAG-
 GERED.
   3.  A track first licensed after January first, nineteen hundred nine-
 ty, shall not conduct the  simulcasting  of  thoroughbred  races  within
 district  one,  in  accordance  with article ten of this chapter on days
 that a franchised corporation is not conducting a race  meeting.  In  no
 event shall thoroughbred races conducted by a track first licensed after
 January  first, nineteen hundred ninety be conducted after eight o'clock
 post meridian.
   § 3. An advisory  committee  shall  be  established  by  the  governor
 comprised  of  individuals with demonstrated interest in the performance
 of thoroughbred and standardbred  race  horses  to  review  the  present
 structure,  operations  and  funding of equine drug testing and research

 S. 7509                            65                            A. 9509
 
 conducted pursuant to article nine of the racing,  pari-mutuel  wagering
 and  breeding  law.  Recommendations shall be delivered to the temporary
 president of the Senate, speaker of the Assembly and Governor by  Decem-
 ber  1, 2018 regarding the future of such research, testing and funding.
 Members of the board shall not be considered policymakers.
   § 4. This act shall take effect immediately; provided,  however,  that
 the  amendments  to  section 203 of the racing, pari-mutuel wagering and
 breeding law made by section two of this act shall expire and be  deemed
 repealed  4 years after the first night of racing conducted after sunset
 pursuant to this act; provided that  the  New  York  Racing  Association
 shall  notify  the  legislative  bill drafting commission of the date of
 such night of racing in order that the commission may maintain an  accu-
 rate  and timely effective data base of the official text of the laws of
 the state of New York in furtherance of effectuating the  provisions  of
 section  44  of the legislative law and section 70-b of the public offi-
 cers law.
 
                                  PART FF
 
   Section 1. Subdivision 2 of section 254  of  the  racing,  pari-mutuel
 wagering and breeding law is amended by adding a new paragraph h to read
 as follows:
   H. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE
 THE  ONGOING  CARE  OF  RETIRED HORSES, PROVIDED, HOWEVER, THAT THE FUND
 SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES.
   § 2. Subdivision 1 of section 332 of the racing, pari-mutuel  wagering
 and  breeding  law  is  amended  by  adding a new paragraph j to read as
 follows:
   J. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE
 THE ONGOING CARE OF RETIRED HORSES, PROVIDED,  HOWEVER,  THAT  THE  FUND
 SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES.
   § 3. This act shall take effect immediately.
 
                                  PART GG
 
   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  OO  of  chapter  59 of the laws of 2017, 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

 S. 7509                            66                            A. 9509
 
 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 [eighteen] NINETEEN; 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 [eighteen] NINETEEN; and (iv) no in-home  simul-
 casting in the thoroughbred special betting district shall occur without
 the approval of the regional thoroughbred track.
   §  2.  Subparagraph  (iii)  of paragraph d of subdivision 3 of section
 1007 of the racing, pari-mutuel wagering and breeding law, as amended by
 section 2 of part OO of chapter 59 of the laws of 2017,  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 [eighteen] NINETEEN, the amount used exclusively
 for purses to be awarded at races  conducted  by  such  receiving  track
 shall  be computed as follows: of the sums so retained, two and one-half
 percent of the total pools. Such amount shall be increased or  decreased
 in  the  amount  of fifty percent of the difference in total commissions
 determined by comparing the total commissions available after July twen-
 ty-first, nineteen hundred ninety-five to  the  total  commissions  that
 would  have  been  available  to  such track prior to July twenty-first,
 nineteen hundred ninety-five.
   § 3. The opening paragraph of subdivision 1 of  section  1014  of  the
 racing,  pari-mutuel  wagering and breeding law, as amended by section 3

 S. 7509                            67                            A. 9509
 
 of part OO of chapter 59 of the laws of 2017,  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 [eighteen] NINETEEN and on any day regardless of
 whether or not a franchised corporation is conducting a race meeting  in
 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
 two  thousand  [eighteen]  NINETEEN.  On  any  day on which a franchised
 corporation has not scheduled a racing program but a thoroughbred racing
 corporation located within the state is conducting  racing,  every  off-
 track  betting corporation branch office and every simulcasting facility
 licensed in accordance  with  section  one  thousand  seven  (that  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 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 OO of  chapter  59  of
 the laws of 2017, 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 [eighteen] NINETEEN. This section  shall  super-
 sede all inconsistent provisions of this chapter.
   §  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  5
 of  part  OO  of  chapter  59 of the laws of 2017, is amended to read as
 follows:
   The provisions of this section shall govern the simulcasting of  races
 conducted  at thoroughbred tracks located in another state or country on
 any day during which a franchised corporation is not conducting  a  race
 meeting in Saratoga county at Saratoga thoroughbred racetrack until June
 thirtieth,  two  thousand  [eighteen]  NINETEEN. Every off-track betting
 corporation branch office and every simulcasting  facility  licensed  in
 accordance  with  section  one  thousand  seven that have entered into a
 written agreement with such facility's representative horsemen's  organ-
 ization  as  approved by the commission, one thousand eight or one thou-
 sand nine of this article shall  be  authorized  to  accept  wagers  and
 display  the  live  full-card  simulcast  signal  of thoroughbred tracks
 (which may include quarter horse or mixed  meetings  provided  that  all
 such wagering on such races shall be construed to be thoroughbred races)
 located  in  another  state or foreign country, subject to the following
 provisions; provided,  however,  no  such  written  agreement  shall  be
 required of a franchised corporation licensed in accordance with section
 one thousand seven of this article:
   §  6. The opening paragraph of section 1018 of the racing, pari-mutuel
 wagering and breeding law, as amended by section 6 of part OO of chapter
 59 of the laws of 2017, 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 [seventeen] EIGHTEEN, when a franchised corporation is conducting a
 race meeting within the state at Saratoga Race Course,  every  off-track

 S. 7509                            68                            A. 9509
 
 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 OO of chapter 59 of the
 laws of 2017, 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,  [2018]  2019;  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  OO of chapter 59 of the laws of 2017, 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, [2018] 2019; and section eighteen of this
 act shall take effect on July 1, 2008 and sections fifty-one and  fifty-
 two  of this act shall take effect as of the same date as chapter 772 of
 the laws of 1989 took effect.
   § 9. Paragraph (a) of subdivision 1 of  section  238  of  the  racing,
 pari-mutuel  wagering  and breeding law, as amended by section 9 of part
 OO of chapter 59 of the laws of 2017, is amended to read as follows:
   (a) The  franchised  corporation  authorized  under  this  chapter  to
 conduct pari-mutuel betting at a race meeting or races run thereat shall
 distribute  all sums deposited in any pari-mutuel pool to the holders of
 winning tickets therein, provided such tickets be presented for  payment
 before  April  first  of  the year following the year of their purchase,
 less an amount which shall be established and  retained  by  such  fran-
 chised  corporation  of  between  twelve  to seventeen per centum of the
 total deposits in pools resulting from on-track regular bets, and  four-
 teen  to  twenty-one per centum of the total deposits in pools resulting
 from on-track multiple bets and fifteen to twenty-five per centum of the
 total deposits in pools resulting from on-track exotic bets and  fifteen
 to  thirty-six  per centum of the total deposits in pools resulting from
 on-track super exotic bets, plus the breaks. The retention  rate  to  be
 established  is  subject to the prior approval of the gaming commission.

 S. 7509                            69                            A. 9509
 
 Such rate may not be changed more than once per calendar quarter  to  be
 effective  on  the  first day of the calendar quarter. "Exotic bets" and
 "multiple bets" shall have  the  meanings  set  forth  in  section  five
 hundred  nineteen  of  this  chapter. "Super exotic bets" shall have the
 meaning set forth in section three hundred  one  of  this  chapter.  For
 purposes  of  this  section, a "pick six bet" shall mean a single bet or
 wager on the outcomes of six races. The breaks are hereby defined as the
 odd cents over any multiple of five for payoffs greater than one  dollar
 five  cents  but  less  than  five dollars, over any multiple of ten for
 payoffs greater than five dollars but  less  than  twenty-five  dollars,
 over  any  multiple  of twenty-five for payoffs greater than twenty-five
 dollars but less than two hundred fifty dollars, or over any multiple of
 fifty for payoffs over two hundred fifty dollars. Out of the  amount  so
 retained  there  shall  be  paid  by  such franchised corporation to the
 commissioner of taxation and finance, as a reasonable tax by  the  state
 for  the privilege of conducting pari-mutuel betting on the races run at
 the race meetings held by such  franchised  corporation,  the  following
 percentages  of  the  total  pool for regular and multiple bets five per
 centum of regular bets and four per centum of multiple bets plus  twenty
 per  centum  of  the  breaks;  for  exotic wagers seven and one-half per
 centum plus twenty per centum of the breaks, and for super  exotic  bets
 seven  and  one-half per centum plus fifty per centum of the breaks. For
 the period June first, nineteen hundred  ninety-five  through  September
 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
 three  per  centum and such tax on multiple wagers shall be two and one-
 half per centum, plus twenty per centum of the breaks.  For  the  period
 September  tenth,  nineteen  hundred  ninety-nine  through March thirty-
 first, two thousand one, such tax on all wagers shall be  two  and  six-
 tenths  per  centum  and  for  the  period April first, two thousand one
 through December thirty-first, two thousand  [eighteen]  NINETEEN,  such
 tax  on all wagers shall be one and six-tenths per centum, plus, in each
 such period, twenty per centum of the breaks. Payment to  the  New  York
 state  thoroughbred  breeding  and  development  fund by such franchised
 corporation shall be one-half of one per centum of total daily  on-track
 pari-mutuel  pools  resulting from regular, multiple and exotic bets and
 three per centum of super exotic bets provided, however,  that  for  the
 period September tenth, nineteen hundred ninety-nine through March thir-
 ty-first,  two thousand one, such payment shall be six-tenths of one per
 centum of regular, multiple and exotic pools and for  the  period  April
 first,  two  thousand  one  through  December thirty-first, two thousand
 [eighteen] NINETEEN, such payment  shall  be  seven-tenths  of  one  per
 centum of such pools.
   § 10. This act shall take effect immediately.
 
                                  PART HH
 
   Section  1.  Subdivision 4 of section 97-nnnn of the state finance law
 is REPEALED.
   § 2. Subdivisions 5 and 6 of section 97-nnnn of the state finance  law
 are renumbered subdivisions 4 and 5.
   § 3. This act shall take effect April 1, 2018.
 
                                  PART II

 S. 7509                            70                            A. 9509
 
   Section  1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision
 b of section 1612 of the tax law are REPEALED  and  a  new  subparagraph
 (ii) is added to read as follows:
   (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING
 AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA-
 TOR  OF  ANY  OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO
 SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE:
   (A) WHEN A VENDOR TRACK IS LOCATED  WITHIN  DEVELOPMENT  ZONE  ONE  AS
 DEFINED  BY  SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (B) WHEN A VENDOR TRACK IS LOCATED  WITHIN  DEVELOPMENT  ZONE  TWO  AS
 DEFINED  BY  SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF FORTY-THREE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, AT A VENDOR  TRACK  LOCATED
 WITHIN  FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED
 PURSUANT TO ARTICLE THIRTEEN OF THE  RACING,  PARI-MUTUEL  WAGERING  AND
 BREEDING LAW OR THAT IS LOCATED MORE THAN FIFTEEN MILES BUT WITHIN FIFTY
 MILES  OF  A  NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25
 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE  AT  A  RATE  OF  FIFTY-ONE
 PERCENT  OF  THE  TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT
 FOR PRIZES PURSUANT TO THIS CHAPTER; AND THAT AT A VENDOR TRACK  LOCATED
 WITHIN  FIFTEEN  MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS
 DEFINED IN 25 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE  OF
 FIFTY-SIX PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER
 PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (C)  WHEN  A VIDEO LOTTERY FACILITY IS OPERATED AT AQUEDUCT RACETRACK,
 AT A RATE OF FORTY-SEVEN PERCENT OF THE TOTAL  REVENUE  WAGERED  AT  THE
 VIDEO  LOTTERY  GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS
 CHAPTER; PROVIDED, HOWEVER, UPON THE EARLIER OF THE DESIGNATION  OF  ONE
 THOUSAND  VIDEO  LOTTERY DEVICES AS HOSTED PURSUANT TO PARAGRAPH FOUR OF
 SUBDIVISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE  OR
 APRIL  FIRST, TWO THOUSAND NINETEEN, SUCH RATE SHALL BE FIFTY PERCENT OF
 THE TOTAL REVENUE WAGERED AT THE VIDEO  LOTTERY  GAMING  FACILITY  AFTER
 PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (D)  WHEN  A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU
 OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED  PURSU-
 ANT  TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND
 BREEDING LAW, AT A RATE OF  FORTY-FIVE  PERCENT  OF  THE  TOTAL  REVENUE
 WAGERED  AT  THE  VIDEO  LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (E) NOTWITHSTANDING ANY PROVISION OF  LAW  TO  THE  CONTRARY,  WHEN  A
 VENDOR  TRACK  IS  LOCATED  WITHIN REGION ONE OR TWO OF DEVELOPMENT ZONE
 TWO, AS SUCH ZONE IS DEFINED IN SECTION  THIRTEEN  HUNDRED  TEN  OF  THE
 RACING,  PARI-MUTUEL  WAGERING  AND  BREEDING  LAW, OR IS LOCATED WITHIN
 REGION SIX OF SUCH DEVELOPMENT ZONE TWO AND IS  LOCATED  WITHIN  ONTARIO
 COUNTY,  SUCH  VENDOR  TRACK  SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL
 COMMISSION. THE ADDITIONAL COMMISSION RECEIVED BY THE VENDOR TRACK SHALL
 BE THE ADJUSTED COMMISSION CALCULATED PURSUANT TO SUBCLAUSE (II) OF THIS
 CLAUSE; PROVIDED, HOWEVER, THE ADDITIONAL COMMISSION SHALL NOT EXCEED AN
 AMOUNT CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE.
   (I) THE MAXIMUM ADDITIONAL COMMISSION  PAYABLE  FOR  ANY  FISCAL  YEAR
 SHALL  BE  AN  AMOUNT  EQUAL  TO  THE  BASE VENDOR FEE LESS THE ADJUSTED
 CURRENT VENDOR FEE. THE ADJUSTED CURRENT VENDOR FEE IS CALCULATED AS THE

 S. 7509                            71                            A. 9509
 
 VENDOR FEE THAT THE FACILITY WOULD  HAVE  RECEIVED  DURING  THE  CURRENT
 FISCAL  YEAR UNDER THE PAYMENT SCHEDULE ESTABLISHED BY THIS PARAGRAPH AS
 IT EXISTED ON MARCH  THIRTY-FIRST,  TWO  THOUSAND  SEVENTEEN.  THE  BASE
 VENDOR  FEE  IS  CALCULATED AS THE VENDOR FEE THAT THE FACILITY RECEIVED
 DURING THE TWELVE-MONTH PERIOD IMMEDIATELY PRECEDING THE  OPENING  OF  A
 GAMING FACILITY IN THE SAME REGION AS THE VENDOR TRACK. FOR THE PURPOSES
 OF  THIS  CALCULATION,  A  VENDOR  FEE  SHALL  EXCLUDE ANY DISTRIBUTIONS
 REQUIRED BY PARAGRAPH TWO OF THIS SUBDIVISION. FOR THE PURPOSES OF  THIS
 CLAUSE,  SENECA  AND WAYNE COUNTIES SHALL BE DEEMED TO BE LOCATED WITHIN
 REGION SIX OF DEVELOPMENT ZONE TWO.
   (II) THE ADJUSTED COMMISSION IS A  PERCENTAGE  OF  THE  TOTAL  REVENUE
 WAGERED  AT  THE  VENDOR  TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS
 CHAPTER. THAT PERCENTAGE IS CALCULATED BY SUBTRACTING THE EFFECTIVE  TAX
 RATE  ON  ALL  GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN THE
 SAME REGION AS THE VENDOR  TRACK  FROM  THE  EDUCATION  PERCENTAGE.  THE
 EDUCATION PERCENTAGE IS NINETY PERCENT LESS THE PERCENTAGE OF THE VENDOR
 TRACK'S  VENDOR FEE. FOR PURPOSES OF THIS CLAUSE, SENECA AND WAYNE COUN-
 TIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE
 TWO.
   (III) THE ADDITIONAL COMMISSION PAID  PURSUANT  TO  THIS  SUBPARAGRAPH
 SHALL  COMMENCE WITH THE STATE FISCAL YEAR ENDING ON MARCH THIRTY-FIRST,
 TWO THOUSAND EIGHTEEN AND SHALL BE PAID TO A VENDOR TRACK NO LATER  THAN
 SIXTY DAYS AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL COMMISSION
 AUTHORIZED  BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED AT A
 VENDOR TRACK WHILE A GAMING FACILITY IN THE SAME REGION AS  THAT  VENDOR
 TRACK  IS OPEN AND OPERATING PURSUANT TO AN OPERATION CERTIFICATE ISSUED
 PURSUANT TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING,  PARI-MU-
 TUEL WAGERING AND BREEDING LAW.
   (F)  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, ANY OPERA-
 TORS OF A VENDOR TRACK OR THE  OPERATORS  OF  ANY  OTHER  VIDEO  LOTTERY
 GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR-
 TY-FIRST,  TWO  THOUSAND  SEVENTEEN  SHALL DEPOSIT FROM THEIR VENDOR FEE
 INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO FOUR PERCENT OF  THE  FIRST
 SIXTY-TWO  MILLION  FIVE  HUNDRED THOUSAND DOLLARS OF REVENUE WAGERED AT
 THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO  BE
 USED  EXCLUSIVELY  FOR  CAPITAL  INVESTMENTS, EXCEPT FOR AQUEDUCT, WHICH
 SHALL DEPOSIT INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO  ONE  PERCENT
 OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT
 FOR PRIZES PURSUANT TO THIS CHAPTER UNTIL THE EARLIER OF THE DESIGNATION
 OF  ONE  THOUSAND  VIDEO LOTTERY DEVICES AS HOSTED PURSUANT TO PARAGRAPH
 FOUR OF SUBDIVISION A OF SECTION SIXTEEN  HUNDRED  SEVENTEEN-A  OF  THIS
 ARTICLE  OR  APRIL  FIRST, TWO THOUSAND NINETEEN, WHEN AT SUCH TIME FOUR
 PERCENT OF ALL REVENUE WAGERED AT  THE  VIDEO  LOTTERY  GAMING  FACILITY
 AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO
 A  SEGREGATED  ACCOUNT  FOR CAPITAL INVESTMENTS. VENDOR TRACKS AND VIDEO
 LOTTERY GAMING FACILITIES SHALL  BE  PERMITTED  TO  WITHDRAW  FUNDS  FOR
 PROJECTS  APPROVED  BY  THE  COMMISSION TO IMPROVE THE FACILITIES OF THE
 VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY WHICH ENHANCE OR  MAINTAIN
 THE  VIDEO LOTTERY GAMING FACILITY INCLUDING, BUT NOT LIMITED TO HOTELS,
 OTHER LODGING FACILITIES, ENTERTAINMENT FACILITIES,  RETAIL  FACILITIES,
 DINING FACILITIES, EVENTS ARENAS, PARKING GARAGES AND OTHER IMPROVEMENTS
 AND  AMENITIES  CUSTOMARY  TO  A GAMING FACILITY, PROVIDED, HOWEVER, THE
 VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED  TO
 WITHDRAW  FUNDS  FOR  UNREIMBURSED  CAPITAL AWARDS APPROVED PRIOR TO THE
 EFFECTIVE DATE OF THIS SUBPARAGRAPH. ANY PROCEEDS FROM  THE  DIVESTITURE
 OF  ANY ASSETS ACQUIRED THROUGH THESE CAPITAL FUNDS OR ANY PRIOR CAPITAL

 S. 7509                            72                            A. 9509
 
 AWARD MUST BE DEPOSITED INTO THIS SEGREGATED ACCOUNT, PROVIDED  THAT  IF
 THE  VENDOR  TRACK  OR  VIDEO LOTTERY GAMING FACILITY CEASES USE OF SUCH
 ASSET FOR GAMING PURPOSES OR TRANSFERS THE ASSET  TO  A  RELATED  PARTY,
 SUCH  VENDOR  TRACK  OR  VIDEO  LOTTERY GAMING FACILITY SHALL DEPOSIT AN
 AMOUNT EQUAL TO THE FAIR MARKET VALUE OF THAT ASSET INTO THE ACCOUNT. IN
 THE EVENT A VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES  GAMING
 OPERATIONS, ANY BALANCE IN THE ACCOUNT ALONG WITH AN AMOUNT EQUAL TO THE
 VALUE  OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS FUND OR PRIOR CAPI-
 TAL AWARDS SHALL BE RETURNED TO THE STATE FOR  DEPOSIT  INTO  THE  STATE
 LOTTERY  FUND FOR EDUCATION AID, EXCEPT FOR AQUEDUCT, WHICH SHALL RETURN
 TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR  EDUCATION  AID
 ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A PROJECT PURSUANT TO
 AN  AGREEMENT WITH THE OPERATOR TO CONSTRUCT AN EXPANSION OF THE FACILI-
 TY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPI-
 TAL INVESTMENT OF THREE  HUNDRED  MILLION  DOLLARS  AND  ANY  SUBSEQUENT
 AMENDMENTS  TO SUCH AGREEMENT. THE COMPTROLLER OR HIS LEGALLY AUTHORIZED
 REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE  OUT
 OF  THESE  SEGREGATED CAPITAL ACCOUNTS. NOTWITHSTANDING THE PRECEDING, A
 VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP  TO  TWO  MILLION
 DOLLARS  FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF COURSE
 AT THE VENDOR TRACK.
   (G) NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  FREE  PLAY
 ALLOWANCE  CREDITS  AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F
 OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF  THIS  ARTICLE  SHALL  NOT  BE
 INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY
 GAMES,  THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES
 PAYABLE TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES  PAYA-
 BLE  TO  THE  DIVISION'S  VIDEO LOTTERY GAMING EQUIPMENT CONTRACTORS, OR
 RACING SUPPORT PAYMENTS.
   (H) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERATOR
 OF A VENDOR TRACK OR THE OPERATOR OF  ANY  OTHER  VIDEO  LOTTERY  GAMING
 FACILITY  SHALL  FUND  A  MARKETING  AND  PROMOTION  PROGRAM  OUT OF THE
 VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL  MARKETING  PLAN  FOR
 THE  REVIEW  AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU-
 MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE  COMMISSION.
 THE  COMMISSION  SHALL  HAVE  THE  RIGHT  TO REJECT ANY ADVERTISEMENT OR
 PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR  INTERESTS  OF
 THE LOTTERY OR ITS PROGRAMS.
   (I)  NOTWITHSTANDING  CLAUSE  (F) OF THIS SUBPARAGRAPH, THE COMMISSION
 SHALL BE ABLE TO AUTHORIZE A VENDOR TRACK LOCATED WITHIN ONEIDA  COUNTY,
 WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, AND
 WHO  HAS  MAINTAINED  AT  LEAST  NINETY  PERCENT OF FULL-TIME EQUIVALENT
 EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN, TO WITHDRAW
 FUNDS FROM THE SEGREGATED ACCOUNT ESTABLISHED  IN  CLAUSE  (F)  OF  THIS
 SUBPARAGRAPH  UP TO AN AMOUNT EQUAL TO FOUR PERCENT OF THE TOTAL REVENUE
 WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR  PRIZES  PURSUANT  TO  THIS
 CHAPTER EACH YEAR, FOR OPERATIONS.
   § 2. This act shall take effect immediately; provided, however, clause
 (I) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612
 of  the  tax law as added by section one of this act shall expire and be
 deemed repealed June 29, 2019.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation  to the clause, sentence, paragraph, subdivision, section

 S. 7509                            73                            A. 9509
 
 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 II of this act shall be
 as specifically set forth in the last section of such Parts.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 7509--A                                            A. 9509--A
 
                       S E N A T E - A S S E M B L Y
 
                             January 18, 2018
                                ___________
 
 IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
   cle seven of the Constitution -- read twice and ordered  printed,  and
   when  printed to be committed to the Committee on Finance -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 IN ASSEMBLY -- A BUDGET BILL, submitted  by  the  Governor  pursuant  to
   article  seven  of  the  Constitution -- read once and referred to the
   Committee on Ways and Means --  committee  discharged,  bill  amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN  ACT  to  amend  the real property tax law, in relation to the annual
   growth in STAR benefits (Part A); to amend the real property tax  law,
   in  relation to making the STAR income verification program mandatory;
   to amend the tax law, in relation to the  calculation  of  income  for
   basic STAR purposes; to repeal subparagraphs (v) and (vi) of paragraph
   (b)  of  subdivision  4,  paragraphs  (b) and (c) of subdivision 5 and
   paragraph (c) of subdivision 6 of section 425 of the real property tax
   law relating to the school tax relief (STAR) exemption; and to  repeal
   section  171-o  of  the  tax law relating to income verification for a
   city with a population of one million or more (Part B); to  amend  the
   real property law, in relation to real property transfer reports (Part
   C); to amend the real property law, in relation to reports of manufac-
   tured  housing  park  owners  (Part D); to amend the general municipal
   law, the education law, the state finance law, the real  property  tax
   law  and  the  tax law, in relation to making technical corrections to
   various statutes impacting property taxes; and  to  repeal  subsection
   (bbb) of section 606 of the tax law, section 3-d of the general munic-
   ipal  law  and  section  2023-b of the education law, relating thereto
   (Part E); to amend the real property tax law, in relation  to  taxable
   state  land  (Part F); to amend the real property tax law, in relation
   to assessment ceilings; and to amend chapter 475 of the laws of  2013,
   amending the real property tax law relating to assessment ceilings for
   local public utility mass real property, in relation to the effective-
   ness  thereof  (Part  G);  to amend the tax law and the administrative
   code of the city of New York, in relation to extending the statute  of
   limitations  for  assessing  tax on amended returns (Part H); to amend
   the tax law, in relation to  providing  for  employee  wage  reporting
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12674-04-8

 S. 7509--A                          2                         A. 9509--A
 
   consistency  between  the  department  of taxation and finance and the
   department of labor (Part I); to amend the tax  law,  in  relation  to
   sales and compensating use taxes imposed on food and beverages sold by
   restaurants and similar establishments (Part J); to amend the tax law,
   in  relation  to  allowing  sharing  with  the comptroller information
   regarding unwarranted fixed and final debt  (Part  K);  to  amend  the
   social services law, in relation to the disclosure of certain informa-
   tion  relating  to a person receiving public assistance to the commis-
   sioner of taxation and finance (Part L); to  amend  the  tax  law,  in
   relation  to  establishing a conditional tax on carried interest (Part
   M); 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 N); to amend the tax law and  the  adminis-
   trative code of the city of New York, in relation to the definition of
   resident  for  tax  purposes  of  the personal income tax (Part O); to
   amend the tax law, in relation to the empire state child credit  (Part
   P);  to amend the tax law, in relation to extending the hire a veteran
   credit for an additional two years (Part Q); to amend  the  labor  law
   and  the  tax  law,  in  relation to enhancing the New York youth jobs
   program (Part R); to amend the tax law, in relation to  the  temporary
   deferral  of  certain  tax  credits (Part S); to amend the tax law, in
   relation to extending the real estate transfer tax statute of  limita-
   tions for refunds from two to three years and providing for consistent
   joint  liability  treatment  within the real estate transfer tax (Part
   T); to amend the tax law, in relation to the taxation of cigars  (Part
   U);  to  amend  the tax law and the administrative code of the city of
   New York, in relation to sales and  use  taxes  on  gas  and  electric
   service;  and repealing section 1105-C of the tax law relating thereto
   (Part V); to amend the tax law, in relation to  exempting  from  sales
   and  use  tax  certain veterinary drugs and medicines and removing the
   refund/credit therefor (Part W); to amend the tax law, in relation  to
   providing  relief  from  sales tax liability for certain partners of a
   limited partnership and members of a limited liability  company  (Part
   X);  to  amend the tax law, in relation to exempting items of food and
   drink when sold from certain  vending  machines  from  the  sales  and
   compensating  use  tax  (Part Y); to amend part A of chapter 61 of the
   laws of 2017, amending the tax law relating to the imposition of sales
   and compensating use taxes in certain counties, in relation to extend-
   ing the revenue distribution provisions for the  additional  rates  of
   sales  and  use  tax  of Genesee, Monroe, Onondaga and Orange counties
   (Part Z); to amend the tax law, in relation to  imposing  an  internet
   fairness  conformity  tax  and  requiring  non-collecting  sellers  to
   provide specified information  to  New  York  purchasers  and  to  the
   commissioner  of taxation and finance (Part AA); to amend the tax law,
   in relation to imposing a health tax on vapor products (Part  BB);  to
   amend the tax law, in relation to the imposition of an opioid epidemic
   surcharge;  and  to amend the state finance law, in relation to estab-
   lishing the opioid prevention, treatment and  recovery  account  (Part
   CC);  to  amend  the tax law, in relation to establishing a healthcare
   insurance windfall profit fee (Part DD); to amend the racing, pari-mu-
   tuel wagering and breeding law, in relation to adjusting the franchise
   payment, and authorizing  night  races  under  certain  circumstances;
   creating  an equine drug testing advisory committee; and providing for
   the repeal of certain provisions upon  the  expiration  thereof  (Part
   EE);  to  amend  the racing, pari-mutuel wagering and breeding law, in
   relation to providing funds for the aftercare of retired horses  (Part

 S. 7509--A                          3                         A. 9509--A
 
   FF);  to  amend  the racing, pari-mutuel wagering and breeding law, in
   relation to licenses for simulcast facilities, sums relating to  track
   simulcast,  simulcast of out-of-state thoroughbred races, simulcasting
   of  races  run  by  out-of-state  harness  tracks and distributions of
   wagers; to amend chapter 281 of the laws of 1994 amending the  racing,
   pari-mutuel  wagering  and  breeding  law  and  other laws relating to
   simulcasting and chapter 346 of the laws of 1990 amending the  racing,
   pari-mutuel  wagering  and  breeding  law  and  other laws relating to
   simulcasting and the 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  GG);  to  amend  the state finance law, in
   relation to the commercial gaming revenue fund; and to repeal subdivi-
   sion 4 of section 97-nnnn of the state finance law  relating  to  base
   year  gaming  revenue (Part HH); and to amend the tax law, in relation
   to commissions paid to the operator of a video  lottery  facility;  to
   repeal  certain provisions of such law relating thereto; providing for
   the repeal of certain provisions upon expiration thereof (Part II); to
   amend the tax law and the administrative code of the city of New York,
   in relation to addressing changes made to the internal revenue code by
   Public Law 115-97 (Part JJ); to amend the  tax  law,  in  relation  to
   federal  gross  income  and federal deductions allowed pursuant to the
   internal revenue code (Part KK); to amend the state  finance  law,  in
   relation  to  establishing  the  charitable  gifts  trust fund and the
   health charitable account, and the elementary and secondary  education
   charitable  account;  to amend the tax law, in relation to credits for
   contributions to accounts in the charitable gifts trust fund; to amend
   the education law and  the  general  municipal  law,  in  relation  to
   authorizing  school districts, counties and New York city to establish
   charitable funds; and to amend the real property tax law, in  relation
   to  authorizing such localities to provide a credit against real prop-
   erty taxes for such contributions (Part LL); and to amend the tax  law
   and  state  finance  law, in relation to the imposition of an employer
   compensation expense tax (Part MM)
 
   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 2018-2019
 state fiscal year. Each component is  wholly  contained  within  a  Part
 identified as Parts A through MM. The effective date for each particular
 provision contained within such Part is set forth in the last section of
 such Part. Any provision in any section contained within a Part, includ-
 ing the effective date of the Part, which makes a reference to a section
 "of  this  act", when used in connection with that particular component,
 shall be deemed to mean and refer to the corresponding  section  of  the
 Part  in  which  it  is  found. Section three of this act sets forth the
 general effective date of this act.
 
                                  PART A
 
   Section 1. Subparagraph (i) of  paragraph  (a)  of  subdivision  2  of
 section  1306-a of the real property tax law, as amended by section 6 of
 part N of chapter 58 of the laws of 2011, is amended to read as follows:

 S. 7509--A                          4                         A. 9509--A
 
   (i) The tax savings for each parcel receiving the exemption authorized
 by section four hundred twenty-five of this chapter shall be computed by
 subtracting the amount actually  levied  against  the  parcel  from  the
 amount  that  would  have been levied if not for the exemption, provided
 however,  that [beginning with] FOR the two thousand eleven-two thousand
 twelve THROUGH  TWO  THOUSAND  SEVENTEEN-TWO  THOUSAND  EIGHTEEN  school
 [year] YEARS, the tax savings applicable to any "portion" (which as used
 herein shall mean that part of an assessing unit located within a school
 district) shall not exceed the tax savings applicable to that portion in
 the  prior  school  year multiplied by one hundred two percent, with the
 result rounded to the nearest dollar; AND PROVIDED FURTHER  THAT  BEGIN-
 NING  WITH  THE TWO THOUSAND EIGHTEEN-TWO THOUSAND NINETEEN SCHOOL YEAR,
 THE TAX SAVINGS APPLICABLE TO ANY  PORTION  SHALL  NOT  EXCEED  THE  TAX
 SAVINGS  FOR  THE  PRIOR YEAR. The tax savings attributable to the basic
 and enhanced exemptions shall be calculated separately. It shall be  the
 responsibility  of the commissioner to calculate tax savings limitations
 for purposes of this subdivision.
   § 2. This act shall take effect immediately.
 
                                  PART B
 
   Section 1. Subparagraph (ii) of paragraph  (b)  of  subdivision  4  of
 section  425  of  the  real property tax law, as amended by section 3 of
 part E of chapter 83 of the laws of 2002, is amended to read as follows:
   (ii) The term "income" as used herein shall mean the  "adjusted  gross
 income"  for  federal income tax purposes as reported on the applicant's
 federal or state income tax return for the applicable income  tax  year,
 subject  to  any subsequent amendments or revisions, reduced by distrib-
 utions, to  the  extent  included  in  federal  adjusted  gross  income,
 received from an individual retirement account and an individual retire-
 ment annuity; provided that if no such return was filed for the applica-
 ble  income tax year, "income" shall mean the adjusted gross income that
 would have been so reported if such a return had been filed.    PROVIDED
 FURTHER, THAT EFFECTIVE WITH EXEMPTION APPLICATIONS FOR FINAL ASSESSMENT
 ROLLS  TO  BE COMPLETED IN TWO THOUSAND NINETEEN, WHERE AN INCOME-ELIGI-
 BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR
 MORE INDIVIDUALS WHO DID NOT FILE A RETURN FOR THE APPLICABLE INCOME TAX
 YEAR, THEN IN ORDER FOR THE APPLICATION TO BE CONSIDERED COMPLETE,  EACH
 SUCH  INDIVIDUAL  MUST  FILE A STATEMENT WITH THE DEPARTMENT SHOWING THE
 SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE
 AMOUNT OR AMOUNTS THEREOF, THAT WOULD  HAVE  BEEN  REPORTED  ON  SUCH  A
 RETURN  IF  ONE  HAD  BEEN  FILED. SUCH STATEMENT SHALL BE FILED AT SUCH
 TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY  THE  DEPART-
 MENT,  AND  SHALL BE SUBJECT TO THE SECRECY PROVISIONS OF THE TAX LAW TO
 THE SAME EXTENT THAT A PERSONAL INCOME TAX RETURN WOULD BE. THE  DEPART-
 MENT  SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAILABLE FOR THE FILING OF
 SUCH STATEMENTS.
   § 2. Subparagraph (iv) of paragraph (b) of subdivision  4  of  section
 425  of the real property tax law, as amended by chapter 451 of the laws
 of 2015, is amended to read as follows:
   (iv) (A) Effective with applications for  the  enhanced  exemption  on
 final assessment rolls to be completed in two thousand [three] NINETEEN,
 the application form shall indicate that [the] ALL owners of the proper-
 ty  and  any owners' spouses residing on the premises [may authorize the
 assessor to] MUST have their income eligibility verified annually [ther-
 eafter] by the [state] department [of taxation and finance, in  lieu  of

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 furnishing  copies  of  the applicable income tax return or returns with
 the application. If the owners of the property and any  owners'  spouses
 residing  on  the  premises  elect to participate in this program, which
 shall  be  known as the STAR income verification program, they] AND must
 furnish their taxpayer identification numbers  in  order  to  facilitate
 matching  with records of the department. [Thereafter, their] THE income
 eligibility  OF  SUCH  PERSONS  shall  be  verified  annually   by   the
 department, and the assessor shall not request income documentation from
 them[,  unless  such  department  advises  the assessor that they do not
 satisfy the applicable income eligibility requirements, or  that  it  is
 unable to determine whether they satisfy those requirements]. All APPLI-
 CANTS  FOR  THE  ENHANCED  EXEMPTION  AND  ALL  assessing units shall be
 required to participate in this program, WHICH SHALL  BE  KNOWN  AS  THE
 STAR INCOME VERIFICATION PROGRAM.
   (B) WHERE THE COMMISSIONER FINDS THAT THE ENHANCED EXEMPTION SHOULD BE
 REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE
 TO THE ENHANCED EXEMPTION HAS BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE
 PROPERTY  OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS-
 SIONER EVIDENCE TO THE CONTRARY. WHERE THE COMMISSIONER FINDS  THAT  THE
 ENHANCED  EXEMPTION  SHOULD  BE REMOVED OR DENIED WITHOUT BEING REPLACED
 WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE  TO  THE
 BASIC  EXEMPTION  HAS  ALSO  BEEN  EXCEEDED, HE OR SHE SHALL PROVIDE THE
 PROPERTY OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE  COMMIS-
 SIONER  EVIDENCE TO THE CONTRARY.  IN EITHER CASE, IF THE OWNERS FAIL TO
 RESPOND TO SUCH NOTICE WITHIN FORTY-FIVE DAYS FROM THE MAILING  THEREOF,
 OR  IF  THEIR  RESPONSE DOES NOT SHOW TO THE COMMISSIONER'S SATISFACTION
 THAT THE PROPERTY IS ELIGIBLE FOR THE EXEMPTION CLAIMED, THE COMMISSION-
 ER SHALL DIRECT THE ASSESSOR OR OTHER PERSON HAVING CUSTODY  OR  CONTROL
 OF  THE  ASSESSMENT  ROLL  OR  TAX  ROLL  TO EITHER REPLACE THE ENHANCED
 EXEMPTION WITH A BASIC EXEMPTION, OR TO  REMOVE  OR  DENY  THE  ENHANCED
 EXEMPTION  WITHOUT  REPLACING IT WITH A BASIC EXEMPTION, AS APPROPRIATE.
 THE COMMISSIONER SHALL FURTHER DIRECT SUCH PERSON TO  CORRECT  THE  ROLL
 ACCORDINGLY.  SUCH  A  DIRECTIVE  SHALL  BE BINDING UPON THE ASSESSOR OR
 OTHER PERSON HAVING CUSTODY OR CONTROL OF THE  ASSESSMENT  ROLL  OR  TAX
 ROLL,  AND  SHALL  BE  IMPLEMENTED  BY  SUCH PERSON WITHOUT THE NEED FOR
 FURTHER DOCUMENTATION OR APPROVAL.
   (C) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  NEITHER  AN
 ASSESSOR  NOR A BOARD OF ASSESSMENT REVIEW HAS THE AUTHORITY TO CONSIDER
 AN OBJECTION TO THE REPLACEMENT OR REMOVAL OR  DENIAL  OF  AN  EXEMPTION
 PURSUANT  TO  THIS  SUBDIVISION, NOR MAY SUCH AN ACTION BE REVIEWED IN A
 PROCEEDING TO REVIEW AN ASSESSMENT PURSUANT TO TITLE  ONE  OR  ONE-A  OF
 ARTICLE  SEVEN  OF  THIS  CHAPTER. SUCH AN ACTION MAY ONLY BE CHALLENGED
 BEFORE THE DEPARTMENT.  IF A TAXPAYER IS DISSATISFIED WITH  THE  DEPART-
 MENT'S  FINAL  DETERMINATION, THE TAXPAYER MAY APPEAL THAT DETERMINATION
 TO THE STATE BOARD OF REAL PROPERTY TAX SERVICES IN A FORM AND MANNER TO
 BE PRESCRIBED BY THE COMMISSIONER. SUCH APPEAL  SHALL  BE  FILED  WITHIN
 FORTY-FIVE  DAYS  FROM  THE  ISSUANCE OF THE DEPARTMENT'S FINAL DETERMI-
 NATION. IF  DISSATISFIED  WITH  THE  STATE  BOARD'S  DETERMINATION,  THE
 TAXPAYER  MAY  SEEK JUDICIAL REVIEW THEREOF PURSUANT TO ARTICLE SEVENTY-
 EIGHT OF THE CIVIL PRACTICE LAW AND RULES.  THE TAXPAYER SHALL OTHERWISE
 HAVE NO RIGHT TO CHALLENGE SUCH FINAL DETERMINATION IN A  COURT  ACTION,
 ADMINISTRATIVE  PROCEEDING  OR  ANY OTHER FORM OF LEGAL RECOURSE AGAINST
 THE COMMISSIONER, THE DEPARTMENT, THE STATE BOARD OF REAL  PROPERTY  TAX
 SERVICES,  THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE
 ASSESSMENT ROLL OR TAX ROLL REGARDING SUCH ACTION.

 S. 7509--A                          6                         A. 9509--A
 
   § 3. Subparagraphs (v) and (vi) of paragraph (b) of subdivision  4  of
 section 425 of the real property tax law are REPEALED.
   §  4.  Paragraphs  (b)  and (c) of subdivision 5 of section 425 of the
 real property tax law are REPEALED.
   § 5. Paragraph (d) of subdivision 5 of section 425 of the real proper-
 ty tax law, as amended by section 5 of part E of chapter 83 of the  laws
 of  2002  and  subparagraph (i) 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:
   (d) Third party notice. (i) A senior citizen eligible for the enhanced
 exemption  may  request  that  a notice be sent to an adult third party.
 Such request shall be made on a form prescribed by the commissioner  and
 shall  be  submitted  to the assessor of the assessing unit in which the
 eligible taxpayer resides no later than  sixty  days  before  the  first
 taxable  status  date to which it is to apply. Such form shall provide a
 section whereby the designated third party shall consent to such  desig-
 nation.  Such  request  shall be effective upon receipt by the assessor.
 The assessor shall maintain a list of all eligible property  owners  who
 have  requested  notices  pursuant to this paragraph AND SHALL FURNISH A
 COPY OF SUCH LIST TO THE DEPARTMENT UPON REQUEST.
   (ii) [In the case of a senior citizen who has not elected  to  partic-
 ipate in the STAR income verification program, a notice shall be sent to
 the  designated  third  party at least thirty days prior to each ensuing
 taxable status date; provided that no such notice need be  sent  in  the
 first  year  if  the  request  was not received by the assessor at least
 sixty days before the applicable taxable status date. Such notice  shall
 read substantially as follows:
   "On  behalf  of (identify senior citizen or citizens), you are advised
 that his, her, or  their  renewal  application  for  the  enhanced  STAR
 exemption  must  be  filed with the assessor no later than (enter date).
 You are encouraged to remind him, her, or them  of  that  fact,  and  to
 offer  assistance  if needed, although you are under no legal obligation
 to do so. Your cooperation and assistance are greatly appreciated."
   (iii) In the case of a senior citizen who has elected  to  participate
 in  the  STAR  income verification program, a] A notice shall be sent to
 the designated third party whenever the assessor OR DEPARTMENT  sends  a
 notice  to  the  senior  citizen  regarding  the possible removal of the
 enhanced STAR exemption.  WHEN  THE  EXEMPTION  IS  SUBJECT  TO  REMOVAL
 BECAUSE  THE  COMMISSIONER  HAS  DETERMINED  THAT THE INCOME ELIGIBILITY
 REQUIREMENT IS NOT SATISFIED, SUCH NOTICE SHALL BE  SENT  TO  THE  THIRD
 PARTY  BY  THE  DEPARTMENT.  WHEN  THE  EXEMPTION  IS SUBJECT TO REMOVAL
 BECAUSE THE ASSESSOR HAS DETERMINED THAT ANY OTHER ELIGIBILITY  REQUIRE-
 MENT  IS  NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD PARTY BY
 THE ASSESSOR. Such notice shall read substantially as follows:
   "On behalf of (identify senior citizen or citizens), you  are  advised
 that  his,  her,  or  their  enhanced STAR exemption is at risk of being
 removed. You are encouraged to make sure that he, she or they are  aware
 of  that fact, and to offer assistance if needed, although you are under
 no legal obligation to do so. Your cooperation and assistance are great-
 ly appreciated."
   [(iv)] (III) The obligation to mail such notices shall  cease  if  the
 eligible  taxpayer  cancels  the  request  or  ceases to qualify for the
 enhanced STAR exemption.
   § 6. Paragraph (c) of subdivision 6 of section 425 of the real proper-
 ty tax law is REPEALED.

 S. 7509--A                          7                         A. 9509--A
 
   § 7. Subdivision 9-b of section 425 of the real property tax  law,  as
 added by section 8 of part E of chapter 83 of the laws of 2002 and para-
 graph  (b)  as  amended  by  chapter 742 of the laws of 2005 and 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:
   9-b.  Duration  of  exemption; enhanced exemption. (a) [In the case of
 persons who have elected to participate in the STAR income  verification
 program,  the]  THE  enhanced  exemption,  once granted, shall remain in
 effect until discontinued in the manner provided in this section.
   (b) [In the case of persons who have not elected to participate in the
 STAR income verification program, the enhanced exemption shall apply for
 a term of one year. To continue receiving  such  enhanced  exemption,  a
 renewal  application  must  be  filed  annually  with the assessor on or
 before the applicable taxable status date on a form  prescribed  by  the
 commissioner. Provided, however, that if a renewal application is not so
 filed,  the  assessor shall discontinue the enhanced exemption but shall
 grant the basic exemption, subject  to  the  provisions  of  subdivision
 eleven of this section.
   (c)  Whether  or not the recipients of an enhanced STAR exemption have
 elected to participate in the STAR income verification program, the] THE
 assessor [may review their] SHALL REVIEW  THE  continued  compliance  OF
 RECIPIENTS  OF  THE ENHANCED EXEMPTION with the applicable ownership and
 residency requirements to the same extent as if they  were  receiving  a
 basic STAR exemption.
   [(d) Notwithstanding the foregoing provisions of this subdivision, the
 enhanced  exemption  shall be continued without a renewal application as
 long as the property continues to be eligible for  the  senior  citizens
 exemption authorized by section four hundred sixty-seven of this title.]
   §  8.  Section 425 of the real property tax law is amended by adding a
 new subdivision 14-a to read as follows:
   14-A. IMPLEMENTATION OF CERTAIN  ELIGIBILITY  DETERMINATIONS.  WHEN  A
 TAXPAYER'S  ELIGIBILITY  FOR  EXEMPTION  UNDER THIS SECTION FOR A SCHOOL
 YEAR IS AFFECTED BY A DETERMINATION MADE IN ACCORDANCE WITH SUBPARAGRAPH
 (IV) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF THIS SECTION  OR  PARAGRAPH
 (C)  OR  (D)  OF  SUBDIVISION FOURTEEN OF THIS SECTION, AND THE DETERMI-
 NATION IS MADE AFTER THE SCHOOL DISTRICT TAXES FOR THAT SCHOOL YEAR HAVE
 BEEN LEVIED, THE PROVISIONS OF THIS SUBDIVISION SHALL BE APPLICABLE.
   (A)  IF  THE  DETERMINATION  RESTORES  OR  INCREASES  THE   TAXPAYER'S
 EXEMPTION  FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO REMIT
 THE EXCESS DIRECTLY TO THE PROPERTY OWNER  UPON  RECEIVING  CONFIRMATION
 THAT  THE TAXPAYER'S ORIGINAL SCHOOL TAX BILL HAS BEEN PAID IN FULL. THE
 AMOUNTS PAYABLE BY THE COMMISSIONER UNDER THIS PARAGRAPH SHALL  BE  PAID
 FROM  THE  ACCOUNT  ESTABLISHED FOR THE PAYMENT OF STAR BENEFITS TO LATE
 REGISTRANTS PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF  SUBDIVI-
 SION  FOURTEEN  OF  THIS  SECTION.  WHEN THE COMMISSIONER IMPLEMENTS THE
 DETERMINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND
 COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO  CORRECTION  SHALL
 BE  MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO
 REFUND SHALL BE ISSUED 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.
   (B) IF THE DETERMINATION REMOVES, DENIES OR DECREASES  THE  TAXPAYER'S
 EXEMPTION  FOR  THAT  SCHOOL  YEAR,  THE  COMMISSIONER  IS AUTHORIZED TO
 COLLECT THE SHORTFALL DIRECTLY FROM THE OWNERS OF THE PROPERTY, TOGETHER
 WITH INTEREST, BY UTILIZING ANY OF THE PROCEDURES FOR COLLECTION,  LEVY,
 AND  LIEN  OF PERSONAL INCOME TAX SET FORTH IN ARTICLE TWENTY-TWO OF THE

 S. 7509--A                          8                         A. 9509--A
 
 TAX LAW,  AND  ANY  OTHER  RELEVANT  PROCEDURES  REFERENCED  WITHIN  THE
 PROVISIONS OF SUCH ARTICLE.  WHEN THE COMMISSIONER IMPLEMENTS THE DETER-
 MINATION  IN  THIS  MANNER,  HE  OR SHE SHALL SO NOTIFY THE ASSESSOR AND
 COUNTY  DIRECTOR  OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL
 BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND  NO
 CORRECTED  SCHOOL TAX BILL SHALL BE SENT TO THE TAXPAYER FOR THAT SCHOOL
 YEAR.
   § 9. Section 171-o of the tax law is REPEALED.
   § 10. Subparagraph (B) of paragraph 1 of subsection (eee)  of  section
 606  of  the tax law, as amended by section 8 of part A of chapter 73 of
 the laws of 2016, is amended to read as follows:
   (B) "Affiliated income" shall mean for  purposes  of  the  basic  STAR
 credit,  the  combined  income  of  all  of the owners of the parcel who
 resided primarily thereon as of December  thirty-first  of  the  taxable
 year,  and  of any owners' spouses residing primarily thereon as of such
 date, and for purposes of the enhanced STAR credit, the combined  income
 of  all  of  the owners of the parcel as of December thirty-first of the
 taxable year, and of any owners' spouses residing primarily  thereon  as
 of  such  date;  provided  that  for  both  purposes the income to be so
 combined shall be the "adjusted gross income" for the  taxable  year  as
 reported  for  federal income tax purposes, or that would be reported as
 adjusted gross income if a federal income tax return were required to be
 filed, reduced by distributions,  to  the  extent  included  in  federal
 adjusted  gross  income,  received from an individual retirement account
 and an individual retirement annuity.   FOR TAXABLE YEARS  BEGINNING  ON
 AND  AFTER  JANUARY FIRST, TWO THOUSAND NINETEEN, WHERE AN INCOME-ELIGI-
 BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR
 MORE INDIVIDUALS WHO DID NOT FILE  A  RETURN  PURSUANT  TO  SECTION  SIX
 HUNDRED  FIFTY-ONE  OF  THIS ARTICLE FOR THE APPLICABLE INCOME TAX YEAR,
 THEN IN  ORDER  TO  BE  ELIGIBLE  FOR  THE  CREDIT  AUTHORIZED  BY  THIS
 SUBSECTION,  EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE DEPART-
 MENT SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT  INCOME
 TAX  YEAR,  AND  THE  AMOUNT  OR  AMOUNTS  THEREOF, THAT WOULD HAVE BEEN
 REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE
 FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY
 THE DEPARTMENT, AND SHALL BE SUBJECT TO THE PROVISIONS  OF  SECTION  SIX
 HUNDRED  NINETY-SEVEN  OF  THIS ARTICLE TO THE SAME EXTENT THAT A RETURN
 WOULD BE. THE DEPARTMENT SHALL MAKE SUCH FORMS AND  INSTRUCTIONS  AVAIL-
 ABLE  FOR  THE  FILING OF SUCH STATEMENTS. Provided further, that if the
 qualified taxpayer was an owner of the property during the taxable  year
 but  did  not  own it on December thirty-first of the taxable year, then
 the determination as to whether the income of an  individual  should  be
 included in "affiliated income" shall be based upon the ownership and/or
 residency  status  of  that  individual as of the first day of the month
 during which the qualified taxpayer ceased to be an owner of the proper-
 ty, rather than as of December thirty-first of the taxable year.
   § 11. No application for an enhanced exemption on a  final  assessment
 roll  to be completed in 2019 may be approved if the applicants have not
 enrolled in the STAR income verification program established by subpara-
 graph (iv) of paragraph (b) of subdivision 4 of section 425 of the  real
 property  tax  law  as amended by section two of this act, regardless of
 when the application was filed. The assessor shall  notify  such  appli-
 cants  that  participation  in that program has become mandatory for all
 applicants and that their applications cannot be  approved  unless  they
 enroll  therein.  The commissioner of taxation and finance shall provide

 S. 7509--A                          9                         A. 9509--A
 
 a form for assessors to use, at their option, when making this notifica-
 tion.
   § 12. This act shall take effect immediately.
 
                                  PART C
 
   Section  1. Subdivision 1-e of section 333 of the real property law is
 amended by adding two new paragraphs ix and x to read as follows:
   IX. WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF  A  SHARE  OR
 SHARES  IN  A  COOPERATIVE HOUSING CORPORATION, AND SUCH SHARE OR SHARES
 COME WITH A RIGHT TO OCCUPY A UNIT  OR  APARTMENT  LOCATED  IN  PROPERTY
 OWNED BY SUCH CORPORATION, A TRANSFER REPORT MUST BE FILED BY THE TRANS-
 FEREE  OR  TRANSFEREES  DIRECTLY  WITH  THE  DEPARTMENT  OF TAXATION AND
 FINANCE,  REGARDLESS  OF  WHETHER  A  DEED  IS  PREPARED,  DELIVERED  OR
 RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE IMPOSED BY SUBDIVISION
 THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER REPORTS FILED DIRECTLY
 WITH  THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO THIS PARAGRAPH.
 SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY THE COMMISSIONER  OF  TAXA-
 TION  AND  FINANCE, MUST CONTAIN THE INFORMATION REQUIRED TO BE INCLUDED
 BY THIS SUBDIVISION, AND IN ADDITION, MUST SPECIFY THE NUMBER OF  SHARES
 BEING TRANSFERRED OR ACQUIRED. WHEN A REAL ESTATE TRANSFER TAX RETURN IS
 FILED  WITH  SUCH COMMISSIONER PURSUANT TO SECTION FOURTEEN HUNDRED NINE
 OF THE TAX LAW IN RELATION TO SUCH PROPERTY, THE REPORT REQUIRED BY THIS
 PARAGRAPH SHALL BE FILED CONCURRENTLY THEREWITH, BUT IN NO  EVENT  SHALL
 THE  REPORT  REQUIRED  BY  THIS PARAGRAPH BE DEEMED TO BE A PART OF SUCH
 REAL ESTATE TRANSFER TAX RETURN.
   X. WHENEVER THERE HAS BEEN A TRANSFER OR ACQUISITION OF A  CONTROLLING
 INTEREST  IN  AN  ENTITY  WITH  AN INTEREST IN REAL PROPERTY, A TRANSFER
 REPORT MUST BE FILED BY THE TRANSFEREE OR TRANSFEREES DIRECTLY WITH  THE
 DEPARTMENT  OF  TAXATION  AND  FINANCE,  REGARDLESS OF WHETHER A DEED IS
 PREPARED, DELIVERED OR RECORDED, AS SET FORTH IN THIS PARAGRAPH. THE FEE
 IMPOSED BY SUBDIVISION THREE OF THIS SECTION SHALL NOT APPLY TO TRANSFER
 REPORTS FILED DIRECTLY WITH  THE  DEPARTMENT  OF  TAXATION  AND  FINANCE
 PURSUANT TO THIS PARAGRAPH. SUCH REPORT SHALL BE IN A FORM PRESCRIBED BY
 THE  COMMISSIONER  OF TAXATION AND FINANCE, MUST CONTAIN THE INFORMATION
 REQUIRED TO BE INCLUDED BY THIS SUBDIVISION, AND IN ADDITION, MUST SPEC-
 IFY THE PERCENTAGE  OF  THE  OWNERSHIP  INTEREST  BEING  TRANSFERRED  OR
 ACQUIRED. THE TRANSFER REPORT SHALL INDICATE THE PERCENTAGE OF THE TRAN-
 SACTION  THAT  IS  EXEMPT  FROM  THE  REAL ESTATE TRANSFER TAX AS A MERE
 CHANGE IN IDENTITY OR FORM OF OWNERSHIP OR ORGANIZATION WHERE  THERE  IS
 NO  CHANGE IN BENEFICIAL OWNERSHIP PURSUANT TO PARAGRAPH SIX OF SUBDIVI-
 SION (B) OF SECTION FOURTEEN HUNDRED FIVE OF THE TAX LAW, IF ANY.   WHEN
 A REAL ESTATE TRANSFER TAX RETURN IS FILED WITH SUCH COMMISSIONER PURSU-
 ANT  TO SECTION FOURTEEN HUNDRED NINE OF THE TAX LAW IN RELATION TO SUCH
 PROPERTY, THE REPORT REQUIRED BY THIS PARAGRAPH SHALL BE  FILED  CONCUR-
 RENTLY  THEREWITH,  BUT  IN  NO  EVENT SHALL THE REPORT REQUIRED BY THIS
 PARAGRAPH BE DEEMED TO BE A  PART  OF  SUCH  REAL  ESTATE  TRANSFER  TAX
 RETURN. FOR PURPOSES OF THIS PARAGRAPH, THE TERMS "CONTROLLING INTEREST"
 AND "INTEREST IN REAL PROPERTY" SHALL HAVE THE SAME MEANING AS SET FORTH
 IN  SECTION FOURTEEN HUNDRED ONE OF THE TAX LAW, PROVIDED, HOWEVER, THAT
 THE TERM "INTEREST IN REAL PROPERTY" SHALL BE LIMITED  TO  INTERESTS  IN
 REAL  PROPERTY  SUBJECT  TO  REAL PROPERTY TAX ASSESSMENT SUCH AS LANDS,
 BUILDINGS, STRUCTURES, AND OTHER IMPROVEMENTS,  AND  SHALL  NOT  INCLUDE
 DEVELOPMENT RIGHTS, AIR SPACE, OR AIR RIGHTS.
   §  2.  This  act  shall take effect January 1, 2019 and shall apply to
 transfers and acquisitions occurring on and after such date.

 S. 7509--A                         10                         A. 9509--A
 
                                  PART D
 
   Section  1.  Subdivision v of section 233 of the real property law, as
 amended by chapter 566 of the laws  of  1996,  is  amended  to  read  as
 follows:
   v.  1.  On  and  after  April first, nineteen hundred eighty-nine, the
 commissioner of housing and community renewal shall have the  power  and
 duty  to  enforce  and  ensure  compliance  with  the provisions of this
 section. However, the commissioner shall not have the power or  duty  to
 enforce  manufactured  home park rules and regulations established under
 subdivision f of this section.
   2. On or before January  first,  nineteen  hundred  eighty-nine,  each
 manufactured  home  park  owner  or  operator  shall file a registration
 statement with the commissioner and  shall  thereafter  file  an  annual
 registration  statement  on  or  before January first of each succeeding
 year, UP TO AND INCLUDING TWO THOUSAND EIGHTEEN. THEREAFTER, EACH  MANU-
 FACTURED  HOME  PARK OWNER OR OPERATOR SHALL FILE QUARTERLY REGISTRATION
 STATEMENTS WITH THE COMMISSIONER NO LATER THAN TWENTY-ONE DAYS AFTER THE
 END OF EACH CALENDAR QUARTER. The  commissioner,  by  regulation,  shall
 provide  that such registration statement shall include [only] the names
 of all persons owning an interest in the park, the names of all  tenants
 of the park, all services provided by the park owner to the tenants, and
 SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL PRESCRIBE BY REGULATION
 AFTER  CONSULTATION  WITH  THE  COMMISSIONER  OF  TAXATION  AND FINANCE;
 PROVIDED THAT IN THE CASE OF A  REGISTRATION  STATEMENT  FOR  THE  FIRST
 CALENDAR  QUARTER OF A YEAR, SUCH STATEMENT SHALL ALSO INCLUDE a copy of
 all current manufactured home park rules and  regulations.  THE  COMMIS-
 SIONER  SHALL  PROVIDE  THE  COMMISSIONER OF TAXATION AND FINANCE WITH A
 COMPLETE COPY OF EACH QUARTERLY REPORT NO LATER THAN FIFTEEN DAYS  AFTER
 THE RECEIPT THEREOF.
   3. Whenever there shall be a violation of this section, an application
 may  be made by the commissioner of housing and community renewal in the
 name of the people of the state of New York to a court or justice having
 jurisdiction by a special proceeding to issue an  injunction,  and  upon
 notice  to  the  defendant  of  not  less  than five days, to enjoin and
 restrain the continuance of such violation; and if it  shall  appear  to
 the  satisfaction  of  the  court  or justice that the defendant has, in
 fact, violated this section, an injunction may be issued by  such  court
 or  justice,  enjoining  and  restraining any further violation and with
 respect to this subdivision, directing  the  filing  of  a  registration
 statement.  In any such proceeding, the court may make allowances to the
 commissioner of housing and community renewal of a sum not exceeding two
 thousand dollars against each defendant, and direct restitution.   When-
 ever  the  court  shall  determine  that a violation of this section has
 occurred, the court may impose a civil penalty  of  not  more  than  one
 thousand  five hundred dollars for each violation. Such penalty shall be
 deposited in the manufactured home cooperative fund, created pursuant to
 section fifty-nine-h of the private housing finance law.  In  connection
 with  any  such  proposed  application,  the commissioner of housing and
 community renewal is authorized to take proof and make  a  determination
 of  the  relevant  facts  and  to issue subpoenas in accordance with the
 civil practice law and rules. The provisions of this  subdivision  shall
 not impair the rights granted under subdivision u of this section.
   § 2. This act shall take effect immediately.
 
                                  PART E

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

   Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED.
   § 1-a. Section 3-d of the general municipal law is REPEALED.
   § 1-b. Section 2023-b of the education law is REPEALED.
   §  2. The general municipal law is amended by adding a new section 3-d
 to read as follows:
   § 3-D. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT.  1.  UPON  THE
 ADOPTION  OF  THE BUDGET OF A LOCAL GOVERNMENT UNIT, THE CHIEF EXECUTIVE
 OFFICER OR BUDGET OFFICER OF SUCH LOCAL GOVERNMENT UNIT SHALL CERTIFY TO
 THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE  THAT
 THE  BUDGET  SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED IN
 SECTION THREE-C OF THIS ARTICLE AND, IF THE GOVERNING BODY OF THE  LOCAL
 GOVERNMENT  UNIT  DID ENACT A LOCAL LAW OR APPROVE A RESOLUTION TO OVER-
 RIDE THE TAX LEVY LIMIT, THAT SUCH LOCAL LAW OR  RESOLUTION  WAS  SUBSE-
 QUENTLY  REPEALED. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER
 PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSION-
 ER OF TAXATION AND FINANCE.
   2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, IF  SUCH  A  CERTIF-
 ICATION  HAS  BEEN  MADE AND THE ACTUAL TAX LEVY OF THE LOCAL GOVERNMENT
 UNIT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT  SHALL  BE
 PLACED  IN  RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION SIX
 OF SECTION THREE-C OF THIS ARTICLE, EVEN IF A TAX LEVY IN EXCESS OF  THE
 TAX  LEVY  LIMIT HAD BEEN AUTHORIZED FOR THE APPLICABLE FISCAL YEAR BY A
 DULY ADOPTED LOCAL LAW OR RESOLUTION.
   3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  EVERY  LOCAL
 GOVERNMENT  UNIT  SHALL  REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED
 BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AT THE  TIME  AND  IN  THE
 MANNER  AS  HE OR SHE MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN
 OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION.
   § 3. The education law is amended by adding a new  section  2023-b  to
 read as follows:
   §  2023-B.  CERTIFICATION  OF COMPLIANCE WITH TAX LEVY LIMIT. 1.  UPON
 THE ADOPTION OF THE BUDGET OF AN ELIGIBLE  SCHOOL  DISTRICT,  THE  CHIEF
 EXECUTIVE  OFFICER  OF  SUCH  SCHOOL DISTRICT SHALL CERTIFY TO THE STATE
 COMPTROLLER, THE COMMISSIONER OF TAXATION AND FINANCE  AND  THE  COMMIS-
 SIONER  THAT  THE  BUDGET  SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT
 PRESCRIBED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THIS  PART.    SUCH
 CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE
 COMPTROLLER  IN  CONSULTATION  WITH  THE  COMMISSIONER  OF  TAXATION AND
 FINANCE AND THE COMMISSIONER.
   2. IF SUCH A CERTIFICATION HAS BEEN MADE AND THE ACTUAL  TAX  LEVY  OF
 THE  SCHOOL  DISTRICT  EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS
 AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER  PRESCRIBED  BY
 SUBDIVISION  FIVE  OF  SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART,
 EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN DULY AUTHOR-
 IZED FOR THE APPLICABLE FISCAL YEAR BY THE SCHOOL DISTRICT VOTERS.
   3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY  SCHOOL
 DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN-
 TY-THREE-A  OF  THIS  PART SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS
 ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER  AND  THE  COMMIS-
 SIONER  AT  THE TIME AND IN THE MANNER AS THEY MAY PRESCRIBE, WHETHER OR
 NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDI-
 VISION.
   § 4. Subdivision 3 of section 97-rrr of  the  state  finance  law,  as
 amended  by  section  1  of part F of chapter 59 of the laws of 2015, is
 amended to read as follows:

 S. 7509--A                         12                         A. 9509--A
 
   3. The monies in such fund shall be appropriated for  school  property
 tax exemptions granted pursuant to the real property tax law and payable
 pursuant to section thirty-six hundred nine-e of the education law[, and
 for payments to the city of New York pursuant to section fifty-four-f of
 this chapter].
   § 5. Section 925-b of the real property tax law, as amended by chapter
 161 of the laws of 2006, is amended to read as follows:
   §  925-b.  Extension; certain persons sixty-five years of age or over.
 Notwithstanding any contrary provision of this chapter, or any  general,
 special or local law, code or charter, the governing body of a municipal
 corporation  other than a county may, by resolution adopted prior to the
 levy of any taxes on real property located within such municipal  corpo-
 ration,  authorize  an  extension of no more than five business days for
 the payment of taxes without interest or penalty to any resident of such
 municipal corporation who has received an exemption pursuant to subdivi-
 sion four of section four hundred twenty-five or four hundred sixty-sev-
 en of this chapter, OR A CREDIT PURSUANT TO SUBSECTION (EEE) OF  SECTION
 SIX HUNDRED SIX OF THE TAX LAW, related to a principal residence located
 within  such municipal corporation. If such an extension is granted, and
 any taxes are not paid by the final date so provided, those taxes  shall
 be subject to the same interest and penalties that would have applied if
 no extension had been granted.
   § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop-
 erty  tax law is relettered paragraph (f) and two new paragraphs (d) and
 (e) are added to read as follows:
   (D) IF THE TAXES OF A CITY,  TOWN,  VILLAGE  OR  SCHOOL  DISTRICT  ARE
 COLLECTED BY A COUNTY OFFICIAL, THE COUNTY SHALL HAVE THE SOLE AUTHORITY
 TO  ESTABLISH  A  PARTIAL  PAYMENT PROGRAM PURSUANT TO THIS SECTION WITH
 RESPECT TO THE TAXES SO COLLECTED.
   (E) IF THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT  ARE  NOT
 COLLECTED  BY  A  COUNTY OFFICIAL, BUT ITS TAX BILLS ARE PREPARED BY THE
 COUNTY, OR ITS TAX COLLECTION ACCOUNTING SOFTWARE  IS  PROVIDED  BY  THE
 COUNTY,  THEN  BEFORE  THE  CITY,  TOWN,  VILLAGE OR SCHOOL DISTRICT MAY
 IMPLEMENT A PARTIAL PAYMENT PROGRAM PURSUANT TO THIS  SECTION,  IT  MUST
 OBTAIN  WRITTEN APPROVAL OF THE CHIEF EXECUTIVE OFFICER OF THE COUNTY OR
 THE COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES.
   § 7. Subparagraph (B) of paragraph 7 of subsection  (eee)  of  section
 606  of  the tax law, as amended by section 1 of part G of chapter 59 of
 the laws of 2017, is amended to read as follows:
   (B) Notwithstanding any provision of law to the  contrary,  the  names
 and  addresses  of individuals who have applied for or are receiving the
 credit authorized by this  subsection  may  be  disclosed  to  assessors
 [and], county directors of real property tax services, AND MUNICIPAL TAX
 COLLECTING OFFICERS. In addition, where an agreement is in place between
 the  commissioner  and  the head of the tax department of another state,
 such information may be disclosed to such official or his or her  desig-
 nees. Such information shall be considered confidential and shall not be
 subject to further disclosure pursuant to the freedom of information law
 or otherwise.
   § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop-
 erty tax law, as added by section 1 of part B of chapter 389 of the laws
 of 1997 and as further amended by subdivision (b) of section 1 of part W
 of chapter 56 of the laws of 2010, is amended to read as follows:
   (g)  Computation  and  certification  by commissioner. It shall be the
 responsibility of the commissioner to compute the exempt amount for each
 assessing unit in each county in the  manner  provided  herein,  and  to

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

 certify the same to the assessor of each assessing unit and to the coun-
 ty  director  of real property tax services of each county. Such certif-
 ication shall be  made  at  least  twenty  days  before  the  last  date
 prescribed  by  law  for  the  filing  of the tentative assessment roll.
 PROVIDED, HOWEVER, THAT WHERE SCHOOL TAXES ARE LEVIED ON  A  PRIOR  YEAR
 ASSESSMENT  ROLL, OR ON A FINAL ASSESSMENT ROLL THAT WAS FILED MORE THAN
 ONE YEAR AFTER THE TENTATIVE ROLL WAS FILED, SUCH CERTIFICATION SHALL BE
 MADE NO LATER THAN FIFTEEN DAYS AFTER THE PUBLICATION OF THE DATA NEEDED
 TO COMPUTE THE BASE FIGURE FOR THE ENHANCED STAR EXEMPTION  PURSUANT  TO
 CLAUSE  (A)  OF  SUBPARAGRAPH (VI) OF PARAGRAPH (B) OF THIS SUBDIVISION,
 AND PROVIDED FURTHER, THAT  UPON  RECEIPT  OF  SUCH  CERTIFICATION,  THE
 ASSESSOR  SHALL  THEREUPON  BE  AUTHORIZED  AND  DIRECTED TO CORRECT THE
 ASSESSMENT ROLL TO REFLECT THE EXEMPT AMOUNT SO CERTIFIED, OR, IF ANOTH-
 ER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT  THAT
 PERSON TO MAKE THE APPROPRIATE CORRECTIONS.
   §  8. Paragraph 6 of subsection (eee) of section 606 of the tax law is
 amended by adding a new subparagraph (A) to read as follows:
   (A) A MARRIED COUPLE  MAY  NOT  RECEIVE  A  CREDIT  PURSUANT  TO  THIS
 SUBSECTION  ON  MORE  THAN  ONE RESIDENCE DURING ANY GIVEN TAXABLE YEAR,
 UNLESS LIVING APART DUE TO LEGAL SEPARATION. NOR MAY  A  MARRIED  COUPLE
 RECEIVE  A  CREDIT  PURSUANT  TO  THIS SUBSECTION ON ONE RESIDENCE WHILE
 RECEIVING AN EXEMPTION PURSUANT TO SECTION FOUR HUNDRED  TWENTY-FIVE  OF
 THE  REAL PROPERTY TAX LAW ON ANOTHER RESIDENCE, UNLESS LIVING APART DUE
 TO LEGAL SEPARATION.
   § 9. This act shall take effect immediately; provided,  however,  that
 section  3-d  of  the  general municipal law, as added by section two of
 this act, shall expire and be deemed repealed on the same  date  and  in
 the  same  manner  as  section  1 of part A of chapter 97 of the laws of
 2011, expires and is deemed repealed, and provided that  section  2023-b
 of  the  education  law,  as  added  by section three of this act, shall
 expire and be deemed repealed on the same date and in the same manner as
 section 2 of part A of chapter 97 of the laws of 2011,  expires  and  is
 deemed repealed, and provided further that the amendments to paragraph 6
 of  subsection (eee) of section 606 of the tax law made by section eight
 of this act shall take effect immediately and  shall  apply  to  taxable
 years beginning on or after January 1, 2016.
   REPEAL  NOTE:  Section  606(bbb)  of  the  Tax Law, section 3-d of the
 General Municipal Law and section 2023-b of the  Education  Law  collec-
 tively  constituted  the  enabling legislation for the tax freeze credit
 program.  By the terms of those statutes, the tax freeze credit was only
 applicable to taxable  years  2014,  2015  and  2016.  Therefore,  these
 provisions   no  longer  serve  a  purpose,  except  for  the  reporting
 provisions, which facilitate the administration of the  tax  levy  limit
 program and are being preserved in a reenacted section 3-d of the Gener-
 al Municipal Law and section 2023-b of the Education Law.
 
                                  PART F
 
   Section  1. Subdivision 1 of section 544 of the real property tax law,
 as amended by chapter 18 of the laws of  2008,  is  amended  and  a  new
 subdivision 3 is added to read as follows:
   1.  The  comptroller  shall  pay taxes levied on lands of the state in
 each county pursuant to the foregoing sections of  this  title,  out  of
 moneys appropriated by the legislature therefor, to the county treasurer
 for  appropriate  distribution  upon  submission  of a statement of such
 taxes by him or her in such form and executed  in  such  manner  by  the

 S. 7509--A                         14                         A. 9509--A
 
 county treasurer as may be required by the comptroller. Provided, howev-
 er,  that in the case of lands which are taxable pursuant to subdivision
 (j) of section five hundred thirty-two of this  title,  the  comptroller
 shall  pay  such  taxes.  Such payment shall be requested, processed and
 paid separately from all other taxes that  are  payable  to  the  county
 treasurer pursuant to this section.  PROVIDED FURTHER, THAT ON AND AFTER
 APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA-
 BLE  PARCEL  OF  STATE  LAND PURSUANT TO THIS SUBDIVISION, THE AMOUNT OF
 TAXES DUE AND PAYABLE ON THAT PARCEL THEREAFTER SHALL BE  CALCULATED  BY
 THE  COMPTROLLER  IN ACCORDANCE WITH THE PROVISIONS OF SUBDIVISION THREE
 OF THIS SECTION.
   3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ON AND  AFTER
 APRIL FIRST, TWO THOUSAND EIGHTEEN, ONCE TAXES HAVE BEEN PAID ON A TAXA-
 BLE  PARCEL  OF  STATE LAND PURSUANT TO SUBDIVISION ONE OF THIS SECTION,
 THE COMPTROLLER SHALL THEREAFTER CALCULATE THE TAXES DUE AND PAYABLE  ON
 THAT PARCEL AS FOLLOWS:
   (A)  IN  THE  CASE  OF  A LOCAL GOVERNMENT, THE TAXES SO PAYABLE SHALL
 EQUAL THE TAXES THAT WERE PAYABLE ON THAT PARCEL  IN  THE  PRIOR  FISCAL
 YEAR  OF  THE  LOCAL  GOVERNMENT MULTIPLIED BY THE ALLOWABLE LEVY GROWTH
 FACTOR. AS USED IN THIS PARAGRAPH, THE TERMS "LOCAL GOVERNMENT,"  "PRIOR
 FISCAL  YEAR"  AND  "ALLOWABLE  LEVY  GROWTH FACTOR" SHALL HAVE THE SAME
 MEANINGS AS SET FORTH IN SECTION THREE-C OF THE GENERAL  MUNICIPAL  LAW,
 PROVIDED  THAT  IF  SUCH SECTION IS NO LONGER IN EFFECT ON THE DATE SUCH
 TAXES ARE PAID, SUCH TERMS SHALL BE DEEMED  TO  HAVE  THE  MEANINGS  SET
 FORTH  IN  SUCH  SECTION  AS IT READ ON THE LAST DATE ON WHICH IT WAS IN
 EFFECT.
   (B) IN THE CASE OF A SCHOOL DISTRICT, THE TAXES SO PAYABLE SHALL EQUAL
 THE TAXES THAT WERE PAYABLE ON THAT PARCEL IN THE PRIOR SCHOOL  YEAR  OF
 THE  SCHOOL  DISTRICT MULTIPLIED BY THE ALLOWABLE LEVY GROWTH FACTOR. AS
 USED IN THIS PARAGRAPH, THE TERMS "SCHOOL DISTRICT," "PRIOR SCHOOL YEAR"
 AND "ALLOWABLE LEVY GROWTH FACTOR" SHALL HAVE THE SAME MEANINGS  AS  SET
 FORTH  IN  SECTION  TWO  THOUSAND  TWENTY-THREE-A  OF THE EDUCATION LAW,
 PROVIDED THAT IF SUCH SECTION IS NO LONGER IN EFFECT ON  THE  DATE  SUCH
 TAXES  ARE  PAID,  SUCH  TERMS  SHALL BE DEEMED TO HAVE THE MEANINGS SET
 FORTH IN SUCH SECTION AS IT READ ON THE LAST DATE ON  WHICH  IT  WAS  IN
 EFFECT.
   (C) ON OR BEFORE JULY FIRST OF EACH YEAR, THE COMPTROLLER SHALL CALCU-
 LATE THE AMOUNTS OF TAXES THAT ARE DUE AND PAYABLE ON TAXABLE STATE LAND
 PURSUANT  TO  THIS SUBDIVISION, AND SHALL NOTIFY THE COMMISSIONER OF THE
 AMOUNTS SO CALCULATED. THE COMMISSIONER SHALL  THEREUPON  TRANSMIT  THAT
 INFORMATION TO THE AFFECTED LOCAL GOVERNMENTS AND SCHOOL DISTRICTS.  THE
 TAXES  DUE  ON SUCH LANDS SHALL BE PAID BY THE COMPTROLLER IN THE MANNER
 PROVIDED BY SUBDIVISION ONE OF THIS SECTION.
   (D) THE FOLLOWING PROVISIONS SHALL  APPLY  TO  STATE  LANDS  THAT  ARE
 SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION:
   (I)  SUCH  LANDS  SHALL  NOT BE INCLUDED ON THE LISTS OF TAXABLE STATE
 LANDS THAT MUST BE SUPPLIED BY THE COMMISSIONER PURSUANT TO SECTION FIVE
 HUNDRED FORTY OF THIS TITLE.
   (II) THE ASSESSMENTS OF SUCH  LANDS  SHALL  NOT  BE  REPORTED  TO  THE
 COMMISSIONER PURSUANT TO SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE.
   (III)  THE  ASSESSMENTS  OF  SUCH  LANDS  SHALL  NOT BE SUBJECT TO THE
 APPROVAL OF THE COMMISSIONER PURSUANT TO SUCH SECTION, AND SHALL NOT  BE
 TAKEN INTO ACCOUNT IN THE CALCULATION OF THE TAXES DUE ON SUCH LANDS.
   (IV)  SUCH LANDS SHALL BE ENTERED ON THE EXEMPT PORTION OF THE ASSESS-
 MENT ROLL, NOTWITHSTANDING THE FACT THAT THEY ARE  TAXABLE  PURSUANT  TO
 THIS TITLE. PROVIDED, THAT NO SUCH ENTRY SHALL BE MADE IN THE CASE OF AN

 S. 7509--A                         15                         A. 9509--A
 
 ASSESSMENT ADJUSTMENT MADE BY THE COMMISSIONER PURSUANT TO PARAGRAPH (C)
 OF  SUBDIVISION THREE OF SECTION FIVE HUNDRED FORTY-TWO OF THIS TITLE OR
 SECTION 15-2115 OF THE ENVIRONMENTAL CONSERVATION LAW, OR IN THE CASE OF
 STATE  AID  PAYABLE  PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF THIS
 TITLE DUE TO A REDUCTION IN THE ASSESSMENT OF TAXABLE STATE LAND.
   (V) SUCH LANDS SHALL BE DISREGARDED WHEN CALCULATING  STATE  EQUALIZA-
 TION RATES AND TAX RATES.
   (VI)  WHEN A SCHOOL DISTRICT RECEIVES PAYMENTS OF TAXES ON STATE LANDS
 PURSUANT TO THIS SUBDIVISION, ANY ACTUAL  VALUATION  COMPUTED  FOR  SUCH
 SCHOOL  DISTRICT  PURSUANT  TO PARAGRAPH C OF SUBDIVISION ONE OF SECTION
 THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW  SHALL  INCLUDE  THE  ACTUAL
 VALUATION EQUIVALENT OF THOSE PAYMENTS. THE COMMISSIONER SHALL DETERMINE
 SUCH  ACTUAL  VALUATION  EQUIVALENT  BY  DIVIDING  THE  PAYMENT MADE, AS
 REPORTED TO SUCH COMMISSIONER BY THE COMPTROLLER, BY THE SCHOOL TAX RATE
 THAT WAS APPLIED TO REAL PROPERTY ON THAT YEAR'S ASSESSMENT ROLL OR,  IF
 APPLICABLE,  THE  SPECIAL  APPORTIONMENT  RATE  DETERMINED  PURSUANT  TO
 SECTION TWELVE HUNDRED TWENTY-SEVEN OF THIS CHAPTER  AND  DIVIDING  SUCH
 RESULT  BY  THE  FINAL STATE EQUALIZATION RATE FOR THAT ROLL. THE ACTUAL
 VALUATION EQUIVALENT SHALL BE REPORTED TO THE STATE COMPTROLLER AND  THE
 COMMISSIONER  OF  EDUCATION,  AND  SHALL  BE USED BY THE COMMISSIONER OF
 EDUCATION IN THE DETERMINATION OF ANY STATE AVERAGE THAT USES REAL PROP-
 ERTY TAXES LEVIED AGAINST AND/OR ACTUAL VALUATION BASED UPON THE  CORRE-
 SPONDING  ASSESSMENT  ROLL.  EACH  SCHOOL DISTRICT RECEIVING PAYMENTS OF
 TAXES ON STATE LANDS PURSUANT TO THIS SUBDIVISION SHALL ANNUALLY  REPORT
 THOSE  PAYMENTS  TO  THE  COMMISSIONER  OF EDUCATION, WITH A COPY TO THE
 COMMISSIONER, AS A CONDITION TO RECEIVING ANY AID  PURSUANT  TO  SECTION
 THIRTY-SIX HUNDRED TWO OF THE EDUCATION LAW.
   (E)  THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO THE PAYMENT
 OF STATE AID PURSUANT TO SECTION FIVE HUNDRED FORTY-FIVE OF  THIS  TITLE
 IN  RELATION TO PROPERTY THAT HAS BECOME EXEMPT FROM TAXATION DUE TO ITS
 ACQUISITION BY THE STATE OR AN AGENCY OF THE STATE.
   § 2. This act shall take effect immediately.
 
                                  PART G
 
   Section 1. Section 4 of chapter 475 of the laws of 2013, amending  the
 real  property  tax law relating to assessment ceilings for local public
 utility mass real property, is amended to read as follows:
   § 4. This act shall take effect on the first of January of the  second
 calendar  year  commencing  after  this  act shall have become a law and
 shall apply to assessment rolls with taxable status dates  on  or  after
 such  date;  provided, however, that this act shall expire and be deemed
 repealed [four] EIGHT years after such  effective  date;  and  provided,
 further,  that  no assessment of local public utility mass real property
 appearing on the municipal assessment roll with a  taxable  status  date
 occurring  in the first calendar year after this act shall have become a
 law shall be less than ninety percent  or  more  than  one  hundred  ten
 percent  of  the  assessment  of  the same property on the date this act
 shall have become a law.
   § 2. Subdivision 3 of section 499-kkkk of the real property  tax  law,
 as  added  by  chapter  475  of  the laws of 2013, is amended to read as
 follows:
   3. (A) For assessment rolls with taxable status dates in each  of  the
 three  calendar  years  including  and  following the year in which this
 section shall take effect, the commissioner shall establish  no  assess-
 ment  ceiling  that is less than ninety percent or more than one hundred

 S. 7509--A                         16                         A. 9509--A
 
 ten percent of the assessment of such local  public  utility  mass  real
 property  appearing  on  the  municipal  assessment  roll with a taxable
 status date occurring in the second preceding calendar  year  from  when
 this  section shall take effect, except that the commissioner may estab-
 lish assessment ceilings below the ninety percent level or above the one
 hundred ten percent level to take into account any change  in  level  of
 assessment  and/or  to take into account any additions or retirements to
 public utility mass real property or litigation affecting the  value  or
 taxable  status of the local public utility mass real property initiated
 prior to the effective date of this section.
   (B) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN  THE  YEARS  TWO
 THOUSAND  EIGHTEEN,  TWO  THOUSAND NINETEEN AND TWO THOUSAND TWENTY, THE
 COMMISSIONER SHALL ESTABLISH NO ASSESSMENT CEILING  THAT  IS  BELOW  THE
 LOWER LIMIT OR ABOVE THE UPPER LIMIT SPECIFIED IN THIS PARAGRAPH, EXCEPT
 THAT THE COMMISSIONER MAY ESTABLISH ASSESSMENT CEILINGS BELOW SUCH LOWER
 LIMIT OR ABOVE SUCH UPPER LIMIT TO TAKE INTO ACCOUNT ANY CHANGE IN LEVEL
 OF  ASSESSMENT  AND/OR TO TAKE INTO ACCOUNT ANY ADDITIONS OR RETIREMENTS
 TO PUBLIC UTILITY MASS REAL PROPERTY OR LITIGATION AFFECTING  THE  VALUE
 OR  TAXABLE STATUS OF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY INITI-
 ATED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.
   (I) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS  DATES  IN  TWO  THOUSAND
 EIGHTEEN,  THE  ASSESSMENT  CEILING  SHALL NOT BE LESS THAN SEVENTY-FIVE
 PERCENT OR MORE THAN ONE HUNDRED TWENTY-FIVE PERCENT OF  THE  ASSESSMENT
 OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI-
 PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO
 THOUSAND THIRTEEN.
   (II)  FOR  ASSESSMENT  ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND
 NINETEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN FIFTY PERCENT OR
 MORE THAN ONE HUNDRED FIFTY PERCENT OF  THE  ASSESSMENT  OF  SUCH  LOCAL
 PUBLIC  UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICIPAL ASSESSMENT
 ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIR-
 TEEN.
   (III) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN  TWO  THOUSAND
 TWENTY,  THE  ASSESSMENT  CEILING  SHALL  NOT  BE  LESS THAN TWENTY-FIVE
 PERCENT OR MORE THAN ONE HUNDRED SEVENTY-FIVE PERCENT OF THE  ASSESSMENT
 OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI-
 PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO
 THOUSAND THIRTEEN.
   §  3.  This act shall take effect immediately, provided, however, that
 the amendments to subdivision three of  section  499-kkkk  of  the  real
 property  tax  law  made by section two of this act shall not affect the
 repeal of such section and shall be deemed to be repealed therewith.
 
                                  PART H
 
   Section 1. Subsection (c) of section 683 of the tax law is amended  by
 adding a new paragraph 12 to read as follows:
   (12)   EXCEPT  AS  OTHERWISE  PROVIDED  IN  PARAGRAPH  THREE  OF  THIS
 SUBSECTION, OR AS OTHERWISE PROVIDED IN  THIS  SECTION  WHERE  A  LONGER
 PERIOD  OF  TIME  MAY  APPLY,  IF A TAXPAYER FILES AN AMENDED RETURN, AN
 ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON  THE  FILING  OF
 THE  AMENDED  RETURN),  INCLUDING  RECOVERY OF A PREVIOUSLY PAID REFUND,
 ATTRIBUTABLE TO A CHANGE OR CORRECTION ON  THE  AMENDED  RETURN  FROM  A
 PRIOR  RETURN  MAY  BE  MADE  AT  ANY TIME WITHIN THREE YEARS AFTER SUCH
 AMENDED RETURN IS FILED.

 S. 7509--A                         17                         A. 9509--A
 
   § 2. Subsection (c) of section 1083 of  the  tax  law  is  amended  by
 adding a new paragraph 12 to read as follows:
   (12)   EXCEPT  AS  OTHERWISE  PROVIDED  IN  PARAGRAPH  THREE  OF  THIS
 SUBSECTION, OR AS OTHERWISE PROVIDED IN  THIS  SECTION  WHERE  A  LONGER
 PERIOD  OF  TIME  MAY  APPLY,  IF A TAXPAYER FILES AN AMENDED RETURN, AN
 ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON  THE  FILING  OF
 THE  AMENDED  RETURN),  INCLUDING  RECOVERY OF A PREVIOUSLY PAID REFUND,
 ATTRIBUTABLE TO A CHANGE OR CORRECTION ON  THE  AMENDED  RETURN  FROM  A
 PRIOR  RETURN  MAY  BE  MADE  AT  ANY TIME WITHIN THREE YEARS AFTER SUCH
 AMENDED RETURN IS FILED.
   § 3. Subdivision (c) of section 11-1783 of the administrative code  of
 the  city  of New York is amended by adding a new paragraph 9 to read as
 follows:
   (9) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE OF  THIS  SUBDIVI-
 SION,  OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A LONGER PERIOD OF
 TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED RETURN, AN ASSESSMENT  OF
 TAX  (IF  NOT  DEEMED  TO  HAVE BEEN MADE UPON THE FILING OF THE AMENDED
 RETURN), INCLUDING RECOVERY OF A PREVIOUSLY PAID REFUND, ATTRIBUTABLE TO
 A CHANGE OR CORRECTION ON THE AMENDED RETURN FROM A PRIOR RETURN MAY  BE
 MADE AT ANY TIME WITHIN THREE YEARS AFTER SUCH AMENDED RETURN IS FILED.
   § 4. This act shall take effect immediately and shall apply to amended
 returns filed on or after the effective date of this act.
 
                                  PART I
 
   Section  1.  Paragraph  1 of subdivision (d) of section 658 of the tax
 law, as amended by chapter 166 of the laws of 1991, is amended  to  read
 as follows:
   (1) The commissioner of taxation and finance may prescribe regulations
 and  instructions  requiring returns of information to be made and filed
 on or before February twenty-eighth of each year as to  the  payment  or
 crediting in any calendar year of amounts of six hundred dollars or more
 to  any taxpayer under this article. Such returns may be required of any
 person, including lessees or mortgagors of real  or  personal  property,
 fiduciaries, employers, and all officers and employees of this state, or
 of  any  municipal  corporation  or political subdivision of this state,
 having the control, receipt, custody, disposal or payment  of  interest,
 rents,  salaries,  wages,  premiums, annuities, compensations, remunera-
 tions, emoluments or other  fixed  or  determinable  gains,  profits  or
 income,  except interest coupons payable to bearer. Information required
 to be furnished pursuant to paragraph four of subsection (a) of  section
 six  hundred  seventy-four  on a quarterly combined withholding and wage
 reporting return covering [the last] EACH calendar quarter of each  year
 and relating to tax withheld on wages paid by an employer to an employee
 for [the full] EACH calendar [year] QUARTER, shall constitute the return
 of  information  required  to be made under this section with respect to
 such wages.
   § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section  674
 of the tax law, as amended by section 1 of subpart E of part VI of chap-
 ter 57 of the laws of 2009, is amended to read as follows:
   (A)  All  employers  described  in  paragraph one of subsection (a) of
 section six hundred seventy-one of  this  part,  including  those  whose
 wages paid are not sufficient to require the withholding of tax from the
 wages  of  any of their employees, all employers required to provide the
 wage reporting information for the employees  described  in  subdivision
 one  of  section  one  hundred  seventy-one-a  of  this chapter, and all

 S. 7509--A                         18                         A. 9509--A
 
 employers  liable  for  unemployment  insurance  contributions  or   for
 payments  in  lieu of such contributions pursuant to article eighteen of
 the labor law, shall file a quarterly combined withholding, wage report-
 ing  and  unemployment insurance return detailing the preceding calendar
 quarter's withholding tax transactions, such  quarter's  wage  reporting
 information, SUCH QUARTER'S WITHHOLDING RECONCILIATION INFORMATION, such
 quarter's  unemployment  insurance contributions, and such other related
 information as the commissioner of taxation and finance or  the  commis-
 sioner  of labor, as applicable, may prescribe. [In addition, the return
 covering the last calendar quarter of each year shall also include with-
 holding reconciliation information for such calendar year.] Such returns
 shall be filed no later than the last day of  the  month  following  the
 last day of each calendar quarter.
   §  3.  Paragraph 3 of subsection (v) of section 685 of the tax law, as
 amended by chapter 477 of the laws  of  1998,  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 [annual] QUARTERLY withholding information
 relating to individual employees on a  quarterly  combined  withholding,
 wage  reporting  and  unemployment  insurance return covering [the last]
 EACH calendar quarter 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 dollars multiplied
 by the number of employees for whom such information  is  incomplete  or
 incorrect;  provided,  however,  that  if  the  number of such employees
 cannot be determined  from  the  quarterly  combined  withholding,  wage
 reporting  and  unemployment  insurance  return,  the  commissioner  may
 utilize any information 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 [the last] EACH calen-
 dar quarter of a year shall not exceed ten thousand dollars.
   § 4. This act shall take effect immediately and shall apply to  calen-
 dar quarters beginning on or after January 1, 2019.

                                  PART J
 
   Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax
 law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as
 amended  by  section 1 of part DD of chapter 407 of the laws of 1999, is
 amended to read as follows:
   (i) The receipts from every sale, OTHER  THAN  SALES  FOR  RESALE,  of
 beer,  wine  or  other  alcoholic  beverages  or  any other drink of any
 nature, or from every sale, OTHER THAN SALES FOR  RESALE,  of  food  and
 drink  of  any  nature or of food alone, when sold in or by restaurants,
 taverns or other establishments in this state, or by caterers, including
 in the amount of such receipts  any  cover,  minimum,  entertainment  or
 other  charge  made to patrons or customers (except those receipts taxed
 pursuant to subdivision (f) of this section):
   (1) in all instances where the sale is for consumption on the premises
 where sold;
   (2) in those instances where the vendor or any person  whose  services
 are  arranged for by the vendor, after the delivery of the food or drink
 by or on behalf of the vendor for consumption off the  premises  of  the
 vendor,  serves  or  assists  in serving, cooks, heats or provides other
 services with respect to the food or drink; and

 S. 7509--A                         19                         A. 9509--A
 
   (3) in those instances where  the  sale  is  made  through  a  vending
 machine that is activated by use of coin, currency, credit card or debit
 card  (except  the  sale of drinks in a heated state made through such a
 vending machine) or is for consumption off the premises of  the  vendor,
 except  where food (other than sandwiches) or drink or both are (A) sold
 in an unheated state and, (B) are of a type commonly sold  for  consump-
 tion off the premises and in the same form and condition, quantities and
 packaging,  in  establishments  which  are  food stores other than those
 principally engaged in selling foods prepared and ready to be eaten.
   § 2. This act shall take effect June 1, 2018 and shall apply to  sales
 made on and after such date.
 
                                  PART K
 
   Section  1.  The  tax  law is amended by adding a new section 171-z to
 read as follows:
   § 171-Z. INFORMATION SHARING WITH THE COMPTROLLER REGARDING  UNCLAIMED
 FUNDS.  1. NOTWITHSTANDING ANY OTHER LAW, THE COMMISSIONER IS AUTHORIZED
 TO RELEASE TO THE COMPTROLLER  INFORMATION  REGARDING  FIXED  AND  FINAL
 UNWARRANTED  DEBTS  OF  TAXPAYERS  FOR  PURPOSES OF COLLECTING UNCLAIMED
 FUNDS FROM THE COMPTROLLER TO SATISFY FIXED AND FINAL UNWARRANTED  DEBTS
 OWED  BY  TAXPAYERS. FOR PURPOSES OF THIS SECTION, THE TERM "UNWARRANTED
 DEBT" SHALL MEAN PAST-DUE TAX LIABILITIES, INCLUDING UNPAID TAX,  INTER-
 EST AND PENALTY, THAT THE COMMISSIONER IS REQUIRED BY LAW TO COLLECT AND
 THAT  HAVE  BECOME  FIXED AND FINAL SUCH THAT THE TAXPAYER NO LONGER HAS
 ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW AND  A  WARRANT  HAS  NOT
 BEEN  FILED;  AND  THE TERM "TAXPAYER" SHALL MEAN ANY INDIVIDUAL, CORPO-
 RATION, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP OR COMPANY,  PARTNER,
 MEMBER,  MANAGER, SOLE PROPRIETORSHIP, ESTATE, TRUST, FIDUCIARY OR ENTI-
 TY, WHO OR WHICH HAS BEEN IDENTIFIED AS OWING TAXES TO THE  STATE.  THIS
 SECTION  SHALL  NOT BE DEEMED TO ABROGATE OR LIMIT IN ANY WAY THE POWERS
 AND AUTHORITY OF THE COMPTROLLER TO SET OFF DEBTS OWED  THE  STATE  FROM
 UNCLAIMED FUNDS, UNDER THE CONSTITUTION OF THE STATE OR ANY OTHER LAW.
   2.  THE  COMPTROLLER SHALL KEEP ALL INFORMATION HE OR SHE OBTAINS FROM
 THE COMMISSIONER CONFIDENTIAL, AND ANY EMPLOYEE, AGENT OR REPRESENTATIVE
 OF THE COMPTROLLER IS PROHIBITED FROM DISCLOSING ANY  TAXPAYER  INFORMA-
 TION  RECEIVED  UNDER THIS SECTION TO ANYONE OTHER THAN THE COMMISSIONER
 OR STAFF OF THE DEPARTMENT OR STAFF  OF  THE  DEPARTMENT  OF  AUDIT  AND
 CONTROL FOR THE PURPOSES DESCRIBED IN THIS SECTION.
   § 2. This act shall take effect immediately.

                                  PART L
 
   Section 1. Subdivision 2 of section 136 of the social services law, as
 amended  by  section 24 of part B of chapter 436 of the laws of 1997, is
 amended to read as follows:
   2. All communications and information relating to a  person  receiving
 public  assistance  or  care  obtained  by any social services official,
 service officer, or employee in the course of his or her work  shall  be
 considered  confidential  and,  except  as  otherwise  provided  in this
 section, shall be disclosed only to the  commissioner,  or  his  or  her
 authorized  representative,  the  commissioner of labor, or   his or her
 authorized representative, the commissioner of health,  or  his  or  her
 authorized  representative, THE COMMISSIONER OF TAXATION AND FINANCE, OR
 HIS OR HER AUTHORIZED  REPRESENTATIVE  (OTHER  THAN  THE  DISCLOSURE  OF
 INFORMATION  THAT  HAS  BEEN  PROHIBITED  BY  FEDERAL  LAW), the welfare

 S. 7509--A                         20                         A. 9509--A
 
 inspector general, or his or her authorized representative,  the  county
 board  of  supervisors,  city council, town board or other board or body
 authorized and required to appropriate funds for public  assistance  and
 care  in  and  for such county, city or town or its authorized represen-
 tative or, by authority of the county,  city  or  town  social  services
 official, to a person or agency considered entitled to such information.
 Nothing  herein shall preclude a   social services official from report-
 ing to an appropriate agency  or  official,  including  law  enforcement
 agencies  or  officials,  known  or   suspected instances of physical or
 mental injury, sexual abuse or exploitation, sexual contact with a minor
 or negligent treatment or maltreatment of a child of which the  official
 becomes  aware  in  the administration of public assistance and care nor
 shall it preclude communication with the federal immigration and  natur-
 alization service regarding the immigration status of any individual.
   § 2. This act shall take effect immediately.
 
                                  PART M
 
   Section  1.  The tax law is amended by adding a new section 44 to read
 as follows:
   § 44.  INVESTMENT  MANAGEMENT  SERVICES.  (A)  FOR  PURPOSES  OF  THIS
 SECTION,  THE  TERM "INVESTMENT MANAGEMENT SERVICES" TO A PARTNERSHIP, S
 CORPORATION OR ENTITY INCLUDES (1) RENDERING INVESTMENT ADVICE REGARDING
 THE PURCHASE OR SALE OF  SECURITIES  AS  DEFINED  IN  PARAGRAPH  TWO  OF
 SUBSECTION  (C)  OF  SECTION  FOUR  HUNDRED SEVENTY-FIVE OF THE INTERNAL
 REVENUE CODE WITHOUT REGARD TO THE LAST SENTENCE  THEREOF,  REAL  ESTATE
 HELD FOR RENTAL OR INVESTMENT, INTERESTS IN PARTNERSHIPS, COMMODITIES AS
 DEFINED  IN  PARAGRAPH  TWO  OF  SUBSECTION  (E) OF SECTION FOUR HUNDRED
 SEVENTY-FIVE OF THE INTERNAL REVENUE  CODE,  OR  OPTIONS  OR  DERIVATIVE
 CONTRACTS WITH RESPECT TO ANY OF THE FOREGOING; (2) MANAGING, ACQUIRING,
 OR  DISPOSING OF ANY SUCH ASSET; (3) ARRANGING FINANCING WITH RESPECT TO
 THE ACQUISITION OF ANY SUCH ASSET; AND (4) RELATED ACTIVITIES IN SUPPORT
 OF ANY SERVICE DESCRIBED IN PARAGRAPHS ONE, TWO, OR THREE OF THIS SUBDI-
 VISION.
   (B) SPECIAL RULE FOR PARTNERSHIPS AND S CORPORATIONS.  NOTWITHSTANDING
 ANY STATE OR FEDERAL LAW TO THE CONTRARY:
   (1)  WHERE  A  PARTNER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR THE
 PARTNERSHIP, THE PARTNER WILL NOT BE TREATED AS A PARTNER  FOR  PURPOSES
 OF THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE PARTNER'S DISTRIBUTIVE
 SHARE  OF  INCOME,  GAIN,  LOSS  AND DEDUCTION, INCLUDING ANY GUARANTEED
 PAYMENTS, THAT IS IN EXCESS OF THE AMOUNT SUCH DISTRIBUTIVE SHARE  WOULD
 HAVE BEEN IF THE PARTNER HAD PERFORMED NO INVESTMENT MANAGEMENT SERVICES
 FOR  THE  PARTNERSHIP.  INSTEAD, SUCH EXCESS AMOUNT SHALL BE TREATED FOR
 PURPOSES OF ARTICLE NINE-A OF THIS CHAPTER AS  A  BUSINESS  RECEIPT  FOR
 SERVICES  AND  FOR  PURPOSES  OF  ARTICLE  TWENTY-TWO OF THIS CHAPTER AS
 INCOME ATTRIBUTABLE TO A  TRADE,  BUSINESS,  PROFESSION  OR  OCCUPATION.
 PROVIDED,  HOWEVER, THE AMOUNT OF THE DISTRIBUTIVE SHARE THAT WOULD HAVE
 BEEN DETERMINED  IF  THE  PARTNER  PERFORMED  NO  INVESTMENT  MANAGEMENT
 SERVICES SHALL NOT BE LESS THAN ZERO.
   (2)  WHERE  A  SHAREHOLDER PERFORMS INVESTMENT MANAGEMENT SERVICES FOR
 THE S CORPORATION, THE SHAREHOLDER WILL NOT BE TREATED AS A  SHAREHOLDER
 FOR  PURPOSES  OF  THIS CHAPTER WITH RESPECT TO THE AMOUNT OF THE SHARE-
 HOLDER'S PRO RATA SHARE OF INCOME, GAIN, LOSS AND DEDUCTION THAT  IS  IN
 EXCESS  OF  THE AMOUNT SUCH PRO RATA SHARE WOULD HAVE BEEN IF THE SHARE-
 HOLDER HAD PERFORMED NO INVESTMENT MANAGEMENT  SERVICES.  INSTEAD,  SUCH
 EXCESS  AMOUNT  SHALL  BE  TREATED FOR PURPOSES OF ARTICLE TWENTY-TWO OF

 S. 7509--A                         21                         A. 9509--A
 
 THIS CHAPTER AS INCOME ATTRIBUTABLE TO A TRADE, BUSINESS, PROFESSION  OR
 OCCUPATION.  PROVIDED,  HOWEVER,  THE  AMOUNT OF THE PRO RATA SHARE THAT
 WOULD HAVE BEEN DETERMINED IF  THE  SHAREHOLDER  PERFORMED  NO  SERVICES
 SHALL NOT BE LESS THAN ZERO.
   (3)  A  PARTNER  OR  SHAREHOLDER  WILL  NOT  BE DEEMED TO BE PROVIDING
 INVESTMENT MANAGEMENT SERVICES UNDER THIS SECTION  IF  AT  LEAST  EIGHTY
 PERCENT  OF  THE AVERAGE FAIR MARKET VALUE OF THE ASSETS OF THE PARTNER-
 SHIP OR S CORPORATION DURING THE TAXABLE YEAR  CONSIST  OF  REAL  ESTATE
 HELD FOR RENTAL OR INVESTMENT.
   (C)  IN  ADDITION TO ANY OTHER TAXES OR SURCHARGES IMPOSED PURSUANT TO
 ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER, ANY  CORPORATION,  PARTNER
 OR SHAREHOLDER PROVIDING INVESTMENT MANAGEMENT SERVICES SHALL BE SUBJECT
 TO  AN  ADDITIONAL  TAX,  REFERRED  TO AS THE "CARRIED INTEREST FAIRNESS
 FEE".  SUCH CARRIED INTEREST FAIRNESS FEE SHALL BE  EQUAL  TO  SEVENTEEN
 PERCENT  OF  THE EXCESS AMOUNT DETERMINED PURSUANT TO SUBDIVISION (B) OF
 THIS SECTION; PROVIDED, HOWEVER, (I) IN THE CASE  OF  A  CORPORATION  OR
 SHAREHOLDER  OF  AN  S  CORPORATION PROVIDING SUCH INVESTMENT MANAGEMENT
 SERVICES, SUCH FEE SHALL BE EQUAL TO SEVENTEEN  PERCENT  OF  THE  EXCESS
 AMOUNT  APPORTIONED  TO  THE  STATE  BY  APPLYING THE CORPORATION'S OR S
 CORPORATION'S APPORTIONMENT FACTOR DETERMINED UNDER SECTION TWO  HUNDRED
 TEN-A OF THIS CHAPTER; (II) IN THE CASE OF A NONRESIDENT PARTNER PROVID-
 ING  SUCH  INVESTMENT  MANAGEMENT  SERVICES,  SUCH FEE SHALL BE EQUAL TO
 SEVENTEEN PERCENT OF THE EXCESS AMOUNT DERIVED FROM NEW YORK SOURCES  AS
 DETERMINED  UNDER  SECTION  SIX HUNDRED THIRTY-TWO OF THIS CHAPTER. SUCH
 CARRIED INTEREST FAIRNESS FEE SHALL BE ADMINISTERED IN  ACCORDANCE  WITH
 ARTICLE  NINE-A OR TWENTY-TWO OF THIS CHAPTER, AS APPLICABLE, UNTIL SUCH
 TIME AS THE COMMISSIONER OF TAXATION AND FINANCE HAS NOTIFIED THE LEGIS-
 LATIVE BILL  DRAFTING  COMMISSION  THAT  FEDERAL  LEGISLATION  HAS  BEEN
 ENACTED  THAT TREATS THE PROVISION OF INVESTMENT MANAGEMENT SERVICES FOR
 FEDERAL TAX PURPOSES SUBSTANTIALLY THE SAME AS PROVIDED IN THIS SECTION.
   § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law,  as
 amended  by  section  5  of part T of chapter 59 of the laws of 2015, is
 amended to read as follows:
    (a) (i) The term "investment income" means income, including  capital
 gains  in  excess  of  capital  losses,  from investment capital, to the
 extent included in  computing  entire  net  income,  less,  (A)  in  the
 discretion  of  the  commissioner,  any interest deductions allowable in
 computing entire net income which are directly or  indirectly  attribut-
 able to investment capital or investment income, AND (B) ANY NET CAPITAL
 GAIN  INCLUDED IN FEDERAL TAXABLE INCOME THAT MUST BE RECHARACTERIZED AS
 A BUSINESS RECEIPT PURSUANT  TO  SECTION  FORTY-FOUR  OF  THIS  CHAPTER;
 provided, however, that in no case shall investment income exceed entire
 net  income.  (ii) If the amount of interest deductions subtracted under
 subparagraph (i) of this paragraph exceeds investment income, the excess
 of such amount over investment income must be added back to  entire  net
 income.  (iii)  If  the  taxpayer's investment income determined without
 regard to the interest deductions subtracted under subparagraph  (i)  of
 this  paragraph  comprises  more  than  eight  percent of the taxpayer's
 entire net income, investment income determined without regard  to  such
 interest deductions cannot exceed eight percent of the taxpayer's entire
 net income.
   § 3. Subsection (b) of section 617 of the tax law, as amended by chap-
 ter 606 of the laws of 1984, is amended to read as follows:
   (b)  Character  of  items. [Each] EXCEPT AS PROVIDED IN SECTION FORTY-
 FOUR OF THIS CHAPTER, EACH item of partnership and S corporation income,
 gain, loss, or deduction shall have the same character for a partner  or

 S. 7509--A                         22                         A. 9509--A
 
 shareholder under this article as for federal income tax purposes. Where
 an  item  is not characterized for federal income tax purposes, it shall
 have the same character for a partner  or  shareholder  as  if  realized
 directly  from  the  source  from which realized by the partnership or S
 corporation or incurred in the same manner as incurred by  the  partner-
 ship or S corporation.
   § 4. Subsection (d) of section 631 of the tax law, as amended by chap-
 ter 28 of the laws of 1987, is amended to read as follows:
   (d)  Purchase  and sale for own account.-- A nonresident, other than a
 dealer holding property primarily for sale to customers in the  ordinary
 course  of  his  OR  HER  trade  or business OR A PARTNER OR SHAREHOLDER
 PERFORMING  INVESTMENT  MANAGEMENT  SERVICES  AS  DESCRIBED  IN  SECTION
 FORTY-FOUR  OF THIS CHAPTER, shall not be deemed to carry on a business,
 trade, profession or occupation in this state solely by  reason  of  the
 purchase  and sale of property or the purchase, sale or writing of stock
 option contracts, or both, for his own account.
   § 5. The opening paragraph of subsection (b) of section 632 of the tax
 law, as amended by chapter 28 of the laws of 1987, is amended to read as
 follows:
   [In] EXCEPT AS OTHERWISE PROVIDED IN SECTION FORTY-FOUR OF THIS  CHAP-
 TER,  IN  determining  the sources of a nonresident partner's income, no
 effect shall be given  to  a  provision  in  the  partnership  agreement
 which--
   §  6.  For  taxable  years  beginning  on or after January 1, 2018 and
 before January 1, 2019, (i) no addition to tax under subsection  (c)  of
 section  685  or  subsection (c) of section 1085 of the tax law shall be
 imposed with respect to any underpayment attributable to the  amendments
 made  by  this  act  of any estimated taxes that are required to be paid
 prior to the effective date of this  act,  provided  that  the  taxpayer
 timely  made  those payments; and (ii) the required installment of esti-
 mated tax described in clause (ii) of subparagraph (B) of paragraph 3 of
 subsection (c) of section 685 of the tax law, and the exception to addi-
 tion for underpayment of estimated tax described in paragraph 1 or 2  of
 subsection  (d)  of  section  1085  of  the  tax law, in relation to the
 preceding year's return, shall be calculated as if the  amendments  made
 by this act had been in effect for that entire preceding year.
   §  7.  This  act  shall take effect upon the enactment into law by the
 states of Connecticut, New Jersey,  Massachusetts  and  Pennsylvania  of
 legislation  having  substantially  the  same effect as this act and the
 enactments by such states have taken effect  in  each  state  and  shall
 apply  for  taxable  years  beginning  on  or after such date; provided,
 however, if the states of Connecticut,  New  Jersey,  Massachusetts  and
 Pennsylvania  have already enacted such legislation, this act shall take
 effect immediately and shall apply for taxable  years  beginning  on  or
 after  January  1, 2018; provided further that the commissioner of taxa-
 tion and finance shall notify the legislative bill  drafting  commission
 upon the enactment of such legislation by the states of Connecticut, New
 Jersey, Massachusetts and Pennsylvania in order that such commission may
 maintain an accurate and timely effective data base of the official text
 of  the laws of the state of New York in furtherance of effectuating the
 provisions of section 44 of the legislative law and section 70-b of  the
 public officers law.
 
                                  PART N

 S. 7509--A                         23                         A. 9509--A
 
   Section  1.  Section 2016 of the tax law, as amended by chapter 401 of
 the laws of 1987, is amended to read as follows:
   § 2016. Judicial review. A decision of the tax appeals tribunal, which
 is  not  subject to any further administrative review, shall finally and
 irrevocably decide all the  issues  which  were  raised  in  proceedings
 before  the  division  of  tax appeals upon which such decision is based
 unless, within four months after notice of such decision  is  served  by
 the  tax appeals tribunal upon every party to the proceeding before such
 tribunal by certified mail  or  personal  service,  the  petitioner  who
 commenced the proceeding [petitions] OR THE COMMISSIONER, OR BOTH, PETI-
 TION for judicial review in the manner provided by article seventy-eight
 of  the  civil  practice  law and rules, except as otherwise provided in
 this [section] CHAPTER.    Such  service  by  certified  mail  shall  be
 complete  upon  deposit of such notice, enclosed in a post-paid properly
 addressed wrapper, in a post office or  official  depository  under  the
 exclusive  care  and custody of the United States postal service.  [The]
 WHERE THE petitioner WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF
 TAX APPEALS FILES A PETITION FOR JUDICIAL  REVIEW,  THE  PETITION  shall
 designate the tax appeals tribunal and the commissioner [of taxation and
 finance]  as  respondents  in the proceeding for judicial review.  WHERE
 THE COMMISSIONER FILES A PETITION  FOR  JUDICIAL  REVIEW,  THE  PETITION
 SHALL  DESIGNATE  THE  TAX  APPEALS  TRIBUNAL  AND  THE  PETITIONER  WHO
 COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS AS  RESPOND-
 ENTS  IN  THE  PROCEEDING  FOR JUDICIAL REVIEW. The tax appeals tribunal
 shall not participate in proceedings for judicial review  of  its  deci-
 sions and such proceedings for judicial review shall be commenced in the
 appellate  division of the supreme court, third department. In all other
 respects the provisions and standards of article  seventy-eight  of  the
 civil  practice law and rules shall apply.  The record to be reviewed in
 such proceedings for judicial review shall include the determination  of
 the  administrative law judge, the decision of the tax appeals tribunal,
 the stenographic transcript of the hearing before the administrative law
 judge, the transcript of any oral proceedings  before  the  tax  appeals
 tribunal  and  any  exhibit  or  document submitted into evidence at any
 proceeding in the division of tax appeals upon which  such  decision  is
 based.
   §  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 O
 
   Section  1.  Subparagraph  (B)  of  paragraph  1  of subsection (b) of
 section 605 of the tax law, as amended by chapter  28  of  the  laws  of
 1987, is amended to read as follows:
   (B)  who  [is  not  domiciled in this state but] maintains a permanent
 place of abode in this state and spends in the aggregate more  than  one
 hundred  eighty-three days of the taxable year in this state, WHETHER OR
 NOT DOMICILED IN THIS STATE FOR ANY PORTION OF THE TAXABLE YEAR,  unless
 such  individual  is in active service in the armed forces of the United
 States.
   § 2. Paragraph 2 of subsection (a) of section 1305 of the tax law,  as
 amended  by  chapter  225  of  the  laws  of 1977, is amended to read as
 follows:
   (2) who [is not domiciled in such  city  but]  maintains  a  permanent
 place  of  abode  in such city and spends in the aggregate more than one

 S. 7509--A                         24                         A. 9509--A
 
 hundred eighty-three days of the taxable year in such city,  WHETHER  OR
 NOT  DOMICILED  IN THIS CITY FOR ANY PORTION OF THE TAXABLE YEAR, unless
 such individual is in active service in the armed forces of  the  United
 States.
   §  3.  Subparagraph  (B)  of paragraph 1 of subdivision (b) of section
 11-1705 of the administrative code of the city of New York,  as  amended
 by chapter 333 of the laws of 1987, is amended to read as follows:
   (B)  who  [is  not  domiciled  in this city but] maintains a permanent
 place of abode in this city and spends in the aggregate  more  than  one
 hundred  eighty-three  days of the taxable year in this city, WHETHER OR
 NOT DOMICILED IN THIS CITY FOR ANY PORTION OF THE TAXABLE  YEAR,  unless
 such  individual  is in active service in the armed forces of the United
 States.
   § 4. This act shall take effect immediately and  shall  apply  to  all
 taxable  years for which the statute of limitations for seeking a refund
 or assessing additional tax is still open.
 
                                  PART P

   Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax
 law, as amended by section 1 of part L1 of chapter 109 of  the  laws  of
 2006, is amended to read as follows:
   (1)  A  resident taxpayer shall be allowed a credit as provided herein
 equal to the greater of one hundred dollars times the number of qualify-
 ing children of the taxpayer or the applicable percentage of  the  child
 tax  credit allowed the taxpayer under section twenty-four of the inter-
 nal revenue code for the same taxable year for  each  qualifying  child.
 Provided,  however,  in  the  case  of a taxpayer whose federal adjusted
 gross income exceeds  the  applicable  threshold  amount  set  forth  by
 section  24(b)(2) of the Internal Revenue Code, the credit shall only be
 equal to the applicable percentage of the child tax credit  allowed  the
 taxpayer under section 24 of the Internal Revenue Code for each qualify-
 ing child. For the purposes of this subsection, a qualifying child shall
 be  a  child  who  meets the definition of qualified child under section
 24(c) of the internal revenue code and is at least four  years  of  age.
 The  applicable  percentage shall be thirty-three percent.  FOR PURPOSES
 OF THIS SUBSECTION, ANY REFERENCE TO SECTION 24 OF THE INTERNAL  REVENUE
 CODE  SHALL  BE  A  REFERENCE  TO SUCH SECTION AS IT EXISTED IMMEDIATELY
 PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97.
   § 2. This act shall take effect immediately and shall apply to taxable
 years commencing on or after January 1, 2018.
 
                                  PART Q
 
   Section 1. Paragraphs (a) and (b) of subdivision 29 of  section  210-B
 of  the  tax law, as amended by section 1 of part I of chapter 60 of the
 laws of 2016, 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
 [nineteen]  TWENTY-ONE,  a  taxpayer  shall  be  allowed a credit, to be
 computed as provided in this subdivision, against  the  tax  imposed  by
 this  article,  for hiring and employing, for not less than one year and
 for not less than thirty-five hours each week, a qualified veteran with-
 in the state.  The taxpayer may claim the credit in the  year  in  which
 the  qualified veteran completes one year of employment by the taxpayer.
 If the taxpayer claims the credit allowed under  this  subdivision,  the

 S. 7509--A                         25                         A. 9509--A
 
 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) Qualified veteran. A qualified veteran is an individual:
   (1)  who  served  on  active duty in the United States army, navy, air
 force, marine corps, coast guard or the reserves thereof, or who  served
 in  active military service of the United States as a member of the army
 national guard, air national guard, New York guard  or  New  York  naval
 militia;  who  was  released  from  active  duty by general or honorable
 discharge after September eleventh, two thousand one;
   (2) who commences employment by the qualified  taxpayer  on  or  after
 January  first,  two  thousand  fourteen,  and before January first, two
 thousand [eighteen] TWENTY; and
   (3) who certifies by signed affidavit, under penalty of perjury,  that
 he or she has not been employed for thirty-five or more hours during any
 week  in  the  one hundred eighty day period immediately prior to his or
 her employment by the taxpayer.
   § 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the  tax
 law,  as  amended  by  section  2 of part I of chapter 60 of the laws of
 2016, 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
 [nineteen]  TWENTY-ONE,  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.
   (2) Qualified veteran. A qualified veteran is an individual:
   (A) who served on active duty in the United  States  army,  navy,  air
 force,  marine corps, coast guard or the reserves thereof, or who served
 in active military service of the United States as a member of the  army
 national  guard,  air  national  guard, New York guard or New York naval
 militia; who was released from  active  duty  by  general  or  honorable
 discharge after September eleventh, two thousand one;
   (B)  who  commences  employment  by the qualified taxpayer on or after
 January first, two thousand fourteen,  and  before  January  first,  two
 thousand [eighteen] TWENTY; and
   (C)  who certifies by signed affidavit, under penalty of perjury, that
 he or she has not been employed for thirty-five or more hours during any
 week in the one hundred eighty day period immediately prior  to  his  or
 her employment by the taxpayer.
   §  3.  Paragraphs  1 and 2 of subdivision (g-1) of section 1511 of the
 tax law, as amended by section 3 of part I of chapter 60 of the laws  of
 2016, 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
 [nineteen] TWENTY-ONE, 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

 S. 7509--A                         26                         A. 9509--A
 
 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) Qualified veteran. A qualified veteran is an individual:
   (A) who served on active duty in the United  States  army,  navy,  air
 force,  marine corps, coast guard or the reserves thereof, or who served
 in active military service of the United States as a member of the  army
 national  guard,  air  national  guard, New York guard or New York naval
 militia; who was released from  active  duty  by  general  or  honorable
 discharge after September eleventh, two thousand one;
   (B)  who  commences  employment  by the qualified taxpayer on or after
 January first, two thousand fourteen,  and  before  January  first,  two
 thousand [eighteen] TWENTY; and
   (C)  who certifies by signed affidavit, under penalty of perjury, that
 he or she has not been employed for thirty-five or more hours during any
 week in the one hundred eighty day period immediately prior  to  his  or
 her employment by the taxpayer.
   § 4. This act shall take effect immediately.
 
                                  PART R
 
   Section  1.  Subdivision  (c)  of  section  25-a  of the labor law, as
 amended by section 1 of part AA of chapter 56 of the laws  of  2015,  is
 amended to read as follows:
   (c)  A  qualified  employer shall be entitled to a tax credit equal to
 (1) [five] SEVEN hundred FIFTY dollars per month for up  to  six  months
 for  each  qualified employee the employer employs in a full-time job or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months for each qualified employee the employer employs in  a  part-time
 job  of  at  least  twenty hours per week or ten hours per week when the
 qualified employee is enrolled in high school full-time, (2) [one  thou-
 sand]  FIFTEEN  HUNDRED  dollars  for  each  qualified  employee  who is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied employer in a full-time job or [five] SEVEN hundred  FIFTY  dollars
 for  each  qualified employee who is employed for at least an additional
 six CONSECUTIVE months by the qualified employer in a part-time  job  of
 at  least twenty hours per week or ten hours per week when the qualified
 employee is enrolled in high school full-time,  and  (3)  an  additional
 [one  thousand]  FIFTEEN HUNDRED dollars for each qualified employee who
 is employed for at least an additional year after the [first year of the
 employee's employment] COMPLETION OF THE TIME PERIODS  AND  SATISFACTION
 OF  THE  CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVI-
 SION by the qualified employer  in  a  full-time  job  or  [five]  SEVEN
 hundred FIFTY dollars for each qualified employee who is employed for at
 least an additional year after the [first year of the employee's employ-
 ment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS
 SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION by the qualified
 employer in a part-time job of at least twenty hours  per  week  or  ten
 hours  per  week  when the qualified employee is enrolled in high school
 full time. The tax credits shall be claimed by the qualified employer as
 specified in subdivision thirty-six of section  two  hundred  ten-B  and
 subsection (tt) of section six hundred six of the tax law.
   §  2.  Subdivisions (d), (e) and (f) of section 25-a of the labor law,
 subdivisions (d) and (e) as amended by section 1 of subpart A of part  N

 S. 7509--A                         27                         A. 9509--A
 
 of  chapter  59  of  the  laws of 2017 and subdivision (f) as amended by
 section 1 of part AA of chapter 56 of the laws of 2015, are  amended  to
 read as follows:
   (d)  To  participate in the program established under this section, an
 employer must submit an application (in a form prescribed by the commis-
 sioner) to the commissioner after January first, two thousand twelve but
 no later than November thirtieth, two thousand twelve for  program  one,
 after  January  first,  two thousand fourteen but no later than November
 thirtieth, two thousand fourteen for program two, after  January  first,
 two  thousand fifteen but no later than November thirtieth, two thousand
 fifteen for program three, after January first, two thousand sixteen but
 no later than November thirtieth, two thousand sixteen for program four,
 after January first, two thousand seventeen but no later  than  November
 thirtieth, two thousand seventeen for program five, after January first,
 two thousand eighteen but no later than November thirtieth, two thousand
 eighteen for program six, after January first, two thousand nineteen but
 no  later  than  November  thirtieth,  two thousand nineteen for program
 seven, after January first, two thousand twenty but no later than Novem-
 ber thirtieth, two thousand twenty  for  program  eight,  after  January
 first, two thousand twenty-one but no later than November thirtieth, two
 thousand twenty-one for program nine, and after January first, two thou-
 sand twenty-two but no later than November thirtieth, two thousand twen-
 ty-two for program ten. The qualified employees must start their employ-
 ment  on  or  after January first, two thousand twelve but no later than
 December thirty-first, two thousand twelve for program one, on or  after
 January  first, two thousand fourteen but no later than December thirty-
 first, two thousand fourteen for program two, on or after January first,
 two thousand fifteen but no later than December thirty-first, two  thou-
 sand  fifteen for program three, on or after January first, two thousand
 sixteen but no later than December thirty-first,  two  thousand  sixteen
 for  program four, on or after January first, two thousand seventeen but
 no later than December thirty-first, two thousand seventeen for  program
 five, on or after January first, two thousand eighteen but no later than
 December  thirty-first,  two  thousand  eighteen  for program six, on or
 after January first, two thousand nineteen but no  later  than  December
 thirty-first, two thousand nineteen for program seven, on or after Janu-
 ary  first, two thousand twenty but no later than December thirty-first,
 two thousand twenty for program eight, on or after  January  first,  two
 thousand  twenty-one  but no later than December thirty-first, two thou-
 sand twenty-one for program nine, and on or  after  January  first,  two
 thousand  twenty-two  but no later than December thirty-first, two thou-
 sand twenty-two for  program  ten.  [The  commissioner  shall  establish
 guidelines  and  criteria  that  specify  requirements  for employers to
 participate in the program including criteria for  certifying  qualified
 employees, ensuring that the process established will minimize any undue
 delay  in  issuing  the certificate of eligibility. Any regulations that
 the commissioner determines are necessary may be adopted on an emergency
 basis notwithstanding anything to the contrary in  section  two  hundred
 two  of  the  state  administrative procedure act. Such requirements may
 include the types of industries that the employers are engaged  in.  The
 commissioner may give preference to employers that are engaged in demand
 occupations  or industries, or in regional growth sectors, including but
 not limited to those identified by  the  regional  economic  development
 councils,  such  as clean energy, healthcare, advanced manufacturing and
 conservation. In addition, the commissioner  shall  give  preference  to

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

 employers  who  offer  advancement  and employee benefit packages to the
 qualified individuals.] AS PART OF SUCH APPLICATION, AN EMPLOYER MUST:
   (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
 TAX  INFORMATION  WITH THE COMMISSIONER. HOWEVER, ANY INFORMATION SHARED
 AS A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR  DISCLOSURE  OR
 INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW, AND
   (2)  ALLOW THE COMMISSIONER AND ITS AGENTS AND THE DEPARTMENT OF TAXA-
 TION AND FINANCE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND  RECORDS
 OF EMPLOYERS THE COMMISSIONER MAY REQUIRE TO MONITOR COMPLIANCE.
   (e)  If, after reviewing the application submitted by an employer, the
 commissioner determines that such employer is eligible to participate in
 the program established under this section, the commissioner shall issue
 the employer a PRELIMINARY certificate of eligibility  that  establishes
 the  employer  as  a  qualified employer. The PRELIMINARY certificate of
 eligibility shall specify the maximum amount  of  tax  credit  that  the
 employer [will] MAY be allowed to claim and the program year under which
 it  [can]  MAY be claimed. THE MAXIMUM AMOUNT OF TAX CREDIT THE EMPLOYER
 IS ALLOWED TO CLAIM SHALL BE COMPUTED AS PRESCRIBED IN  SUBDIVISION  (C)
 OF THIS SECTION.
   (f) The commissioner shall annually publish a report. Such report must
 contain  the  names  and  addresses of any employer issued a PRELIMINARY
 certificate of eligibility  under  this  section,  [and]  the  [maximum]
 amount  of  New  York  youth  works  tax credit allowed to the QUALIFIED
 employer as specified on [such] AN ANNUAL FINAL certificate  of  [eligi-
 bility]  TAX  CREDIT  AND  ANY  OTHER  INFORMATION  AS DETERMINED BY THE
 COMMISSIONER.
   § 3. Section 25-a of the labor law is  amended  by  adding  three  new
 subdivisions (e-1), (e-2) and (e-3) to read as follows:
   (E-1)(1)  TO  RECEIVE  AN  ANNUAL FINAL CERTIFICATE OF TAX CREDIT, THE
 QUALIFIED EMPLOYER MUST ANNUALLY SUBMIT, ON OR  BEFORE  JANUARY  THIRTY-
 FIRST OF THE CALENDAR YEAR SUBSEQUENT TO THE PAYMENT OF WAGES PAID TO AN
 ELIGIBLE EMPLOYEE, A REPORT TO THE COMMISSIONER, IN A FORM PRESCRIBED BY
 THE  COMMISSIONER.  THE  REPORT  MUST  DEMONSTRATE THAT THE EMPLOYER HAS
 SATISFIED ALL ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE  INFORMATION
 NECESSARY  FOR  THE  COMMISSIONER  TO COMPUTE AN ACTUAL AMOUNT OF CREDIT
 ALLOWED.
   (2) AFTER REVIEWING THE REPORT AND FINDING IT SUFFICIENT, THE  COMMIS-
 SIONER  SHALL  ISSUE  AN  ANNUAL  FINAL  CERTIFICATE OF TAX CREDIT. SUCH
 CERTIFICATE SHALL INCLUDE, IN ADDITION  TO  ANY  OTHER  INFORMATION  THE
 COMMISSIONER DETERMINES IS NECESSARY, THE FOLLOWING INFORMATION:
   (I)  THE  NAME  AND  EMPLOYER  IDENTIFICATION  NUMBER OF THE QUALIFIED
 EMPLOYER;
   (II) THE PROGRAM YEAR FOR THE CORRESPONDING CREDIT AWARD;
   (III) THE ACTUAL AMOUNT OF CREDIT TO WHICH THE QUALIFIED  EMPLOYER  IS
 ENTITLED  FOR  THAT CALENDAR YEAR OR THE FISCAL YEAR IN WHICH THE ANNUAL
 FINAL CERTIFICATE IS ISSUED,  WHICH  ACTUAL  AMOUNT  CANNOT  EXCEED  THE
 AMOUNT  OF  CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY BE LESS
 THAN SUCH AMOUNT; AND
   (IV) A UNIQUE CERTIFICATE NUMBER IDENTIFYING THE ANNUAL FINAL  CERTIF-
 ICATE OF TAX CREDIT.
   (E-2)  IN  DETERMINING THE AMOUNT OF CREDIT FOR PURPOSES OF THE ANNUAL
 FINAL CERTIFICATE OF TAX CREDIT, THE PORTION OF THE CREDIT DESCRIBED  IN
 PARAGRAPH  ONE  OF  SUBDIVISION (C) OF THIS SECTION SHALL BE ALLOWED FOR
 THE CALENDAR YEAR IN WHICH THE WAGES ARE PAID TO THE QUALIFIED EMPLOYEE,
 THE PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION  (C)
 OF  THIS  SECTION  SHALL  BE  ALLOWED FOR THE CALENDAR YEAR IN WHICH THE

 S. 7509--A                         29                         A. 9509--A
 
 ADDITIONAL SIX CONSECUTIVE MONTH PERIOD ENDS, AND  THE  PORTION  OF  THE
 CREDIT  DESCRIBED  IN PARAGRAPH THREE OF SUBDIVISION (C) OF THIS SECTION
 SHALL BE ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL  YEAR  OF
 CONSECUTIVE EMPLOYMENT ENDS AFTER THE COMPLETION OF THE TIME PERIODS AND
 SATISFACTION  OF  THE  CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF
 SUBDIVISION (C) OF THIS SECTION.   IF THE QUALIFIED  EMPLOYER'S  TAXABLE
 YEAR  IS  A  CALENDAR  YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE
 CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF  TAX  CREDIT  ON
 THE  CALENDAR  YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A  FISCAL
 YEAR,  THE  EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT AS CALCULATED
 ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT  ON  THE  RETURN  FOR  THE
 FISCAL  YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIF-
 ICATE OF TAX CREDIT IS ISSUED.
   (E-3) THE COMMISSIONER SHALL ESTABLISH GUIDELINES  AND  CRITERIA  THAT
 SPECIFY REQUIREMENTS FOR EMPLOYERS TO PARTICIPATE IN THE PROGRAM INCLUD-
 ING CRITERIA FOR CERTIFYING QUALIFIED EMPLOYEES, AND ISSUING THE PRELIM-
 INARY  CERTIFICATE  OF  ELIGIBILITY  AND ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT.  ANY REGULATIONS THAT THE COMMISSIONER DETERMINES ARE  NECESSARY
 MAY  BE  ADOPTED  ON  AN EMERGENCY BASIS NOTWITHSTANDING ANYTHING TO THE
 CONTRARY IN SECTION TWO HUNDRED TWO OF THE STATE  ADMINISTRATIVE  PROCE-
 DURE ACT. SUCH REQUIREMENTS MAY INCLUDE THE TYPES OF INDUSTRIES THAT THE
 EMPLOYERS  ARE  ENGAGED  IN.  THE  COMMISSIONER  MAY  GIVE PREFERENCE TO
 EMPLOYERS THAT ARE ENGAGED IN DEMAND OCCUPATIONS OR  INDUSTRIES,  OR  IN
 REGIONAL  GROWTH  SECTORS, INCLUDING BUT NOT LIMITED TO THOSE IDENTIFIED
 BY THE REGIONAL ECONOMIC DEVELOPMENT COUNCILS,  SUCH  AS  CLEAN  ENERGY,
 HEALTHCARE,  ADVANCED  MANUFACTURING  AND CONSERVATION. IN ADDITION, THE
 COMMISSIONER SHALL GIVE PREFERENCE TO EMPLOYERS  WHO  OFFER  ADVANCEMENT
 AND EMPLOYEE BENEFIT PACKAGES TO THE QUALIFIED INDIVIDUALS.
   §  4. Paragraph (a) of subdivision 36 of section 210-B of the tax law,
 as amended by section 2 of part AA of chapter 56 of the laws of 2015, is
 amended to read as follows:
   (a) A taxpayer that has been certified by the commissioner of labor as
 a qualified employer pursuant to section twenty-five-a of the labor  law
 shall  be allowed a credit against the tax imposed by this article equal
 to (i) [five] SEVEN hundred FIFTY dollars per month for up to six months
 for each qualified employee the employer employs in a full-time  job  or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months  for  each qualified employee the employer employs in a part-time
 job of at least twenty hours per week or ten hours  per  week  when  the
 qualified employee is enrolled in high school full-time, (ii) [one thou-
 sand]  FIFTEEN  HUNDRED  dollars  for  each  qualified  employee  who is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied employer in a full-time job or [five] SEVEN hundred  FIFTY  dollars
 for  each  qualified employee who is employed for at least an additional
 six CONSECUTIVE months by the qualified employer in a part-time  job  of
 at  least twenty hours per week or ten hours per week when the qualified
 employee is enrolled in high school full-time, and (iii)  an  additional
 [one  thousand]  FIFTEEN HUNDRED dollars for each qualified employee who
 is employed for at least an additional year after the [first year of the
 employee's employment] COMPLETION OF THE TIME PERIODS  AND  SATISFACTION
 OF  THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARA-
 GRAPH by the qualified employer in  a  full-time  job  or  [five]  SEVEN
 hundred FIFTY dollars for each qualified employee who is employed for at
 least an additional year after the [first year of the employee's employ-
 ment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS

 S. 7509--A                         30                         A. 9509--A
 
 SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH by the  quali-
 fied  employer  in  a part-time job of at least twenty hours per week or
 ten hours per week when the  qualified  employee  is  enrolled  in  high
 school  full-time. For purposes of this subdivision, the term "qualified
 employee" shall have the same meaning as set forth in subdivision (b) of
 section twenty-five-a of the  labor  law.  The  portion  of  the  credit
 described in subparagraph (i) of this paragraph shall be allowed for the
 taxable  year in which the wages are paid to the qualified employee, the
 portion of the credit described in subparagraph (ii) of  this  paragraph
 shall  be  allowed in the taxable year in which the additional six month
 period ends, and the portion of the  credit  described  in  subparagraph
 (iii)  of  this  paragraph shall be allowed in the taxable year in which
 the additional year after the first year of employment ends.
   § 5. Paragraph (a) of subdivision 36 of section 210-B of the tax  law,
 as amended by section 4 of this act, is amended to read as follows:
   (a) A taxpayer that has been certified by the commissioner of labor as
 a  qualified employer pursuant to section twenty-five-a of the labor law
 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS-
 SIONER shall be allowed a credit against the tax imposed by this article
 equal to [(i) seven hundred fifty dollars per month for up to six months
 for each qualified employee the employer employs in a full-time  job  or
 three  hundred  seventy-five  dollars per month for up to six months for
 each qualified employee the employer employs in a part-time  job  of  at
 least  twenty  hours  per  week or ten hours per week when the qualified
 employee is enrolled in high  school  full-time,  (ii)  fifteen  hundred
 dollars  for  each  qualified  employee  who is employed for at least an
 additional six consecutive months by the qualified employer in  a  full-
 time  job or seven hundred fifty dollars for each qualified employee who
 is employed for at least an additional six  consecutive  months  by  the
 qualified  employer in a part-time job of at least twenty hours per week
 or ten hours per week when the qualified employee is  enrolled  in  high
 school  full-time,  and  (iii) an additional fifteen hundred dollars for
 each qualified employee who is employed for at least an additional  year
 after  the completion of the time periods and satisfaction of the condi-
 tions set forth in subparagraphs (i) and (ii) of this paragraph  by  the
 qualified employer in a full-time job or seven hundred fifty dollars for
 each  qualified employee who is employed for at least an additional year
 after the completion of the time periods and satisfaction of the  condi-
 tions  set  forth in subparagraphs (i) and (ii) of this paragraph by the
 qualified employer in a part-time job of at least twenty hours per  week
 or  ten  hours  per week when the qualified employee is enrolled in high
 school full-time. For purposes of this subdivision, the term  "qualified
 employee" shall have the same meaning as set forth in subdivision (b) of
 section  twenty-five-a  of  the  labor  law.  The  portion of the credit
 described in subparagraph (i) of this paragraph shall be allowed for the
 taxable year in which the wages are paid to the qualified employee,  the
 portion  of  the credit described in subparagraph (ii) of this paragraph
 shall be allowed in the taxable year in which the additional  six  month
 period  ends,  and  the  portion of the credit described in subparagraph
 (iii) of this paragraph shall be allowed in the taxable  year  in  which
 the  additional year after the first year of employment ends] THE AMOUNT
 LISTED ON THE ANNUAL FINAL CERTIFICATE  OF  TAX  CREDIT  ISSUED  BY  THE
 COMMISSIONER  OF  LABOR  PURSUANT  TO SECTION TWENTY-FIVE-A OF THE LABOR
 LAW.  IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR  YEAR,  THE
 EMPLOYER  SHALL  BE  ENTITLED  TO  CLAIM THE CREDIT AS CALCULATED ON THE
 ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR  RETURN  FOR

 S. 7509--A                         31                         A. 9509--A
 
 WHICH  THE  ANNUAL  FINAL  CERTIFICATE  OF TAX CREDIT WAS ISSUED. IF THE
 QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE  EMPLOYER  SHALL
 BE  ENTITLED  TO  CLAIM  THE  CREDIT  AS  CALCULATED ON THE ANNUAL FINAL
 CERTIFICATE  OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOM-
 PASSES THE DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX  CREDIT  IS
 ISSUED.  FOR  THE  PURPOSES  OF  THIS  SUBDIVISION,  THE TERM "QUALIFIED
 EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF
 SECTION TWENTY-FIVE-A OF THE LABOR LAW.
   § 6. Paragraph (c) of subdivision 36 of section 210-B of the tax  law,
 as  added  by section 17 of part A of chapter 59 of the laws of 2014, is
 amended to read as follows:
   (c) The taxpayer [may] SHALL be required to attach to its  tax  return
 its  ANNUAL  FINAL certificate of [eligibility] TAX CREDIT issued by the
 commissioner of labor pursuant to section  twenty-five-a  of  the  labor
 law. In no event shall the taxpayer be allowed a credit greater than the
 amount  of  the credit listed on the ANNUAL FINAL certificate of [eligi-
 bility] TAX CREDIT.  Notwithstanding any provision of  this  chapter  to
 the  contrary,  the  commissioner  and  the commissioner's designees may
 release the names and addresses of any taxpayer claiming this credit and
 the amount of the credit earned by the taxpayer.  Provided, however,  if
 a  taxpayer  claims  this  credit  because  it  is a member of a limited
 liability company or a partner in a  partnership,  only  the  amount  of
 credit  earned by the entity and not the amount of credit claimed by the
 taxpayer may be released.
   § 7. Paragraph 1 of subsection (tt) of section 606 of the tax law,  as
 amended  by  section  3 of part AA of chapter 56 of the laws of 2015, is
 amended to read as follows:
   (1) A taxpayer that has been certified by the commissioner of labor as
 a qualified employer pursuant to section twenty-five-a of the labor  law
 shall  be allowed a credit against the tax imposed by this article equal
 to (A) [five] SEVEN hundred FIFTY dollars per month for up to six months
 for each qualified employee the employer employs in a full-time  job  or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months  for  each qualified employee the employer employs in a part-time
 job of at least twenty hours per week or ten hours  per  week  when  the
 qualified  employee  is  enrolled in high school full-time, and (B) [one
 thousand] FIFTEEN HUNDRED dollars for each  qualified  employee  who  is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied  employer  in a full-time job or [five] SEVEN hundred FIFTY dollars
 for each qualified employee who is employed for at least  an  additional
 six  CONSECUTIVE  months by the qualified employer in a part-time job of
 at least twenty hours per week or ten hours per week when the  qualified
 employee  is  enrolled  in  high school full-time, and (C) an additional
 [one thousand] FIFTEEN HUNDRED dollars for each qualified  employee  who
 is employed for at least an additional year after the [first year of the
 employee's  employment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION
 OF THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS  SUBSECTION
 by  the  qualified  employer  in a full-time job or [five] SEVEN hundred
 FIFTY dollars for each qualified employee who is employed for  at  least
 an  additional  year after the [first year of the employee's employment]
 COMPLETION OF THE TIME PERIODS AND SATISFACTION OF  THE  CONDITIONS  SET
 FORTH  IN  SUBPARAGRAPHS  A  AND  B  OF THIS SUBSECTION by the qualified
 employer in a part-time job of at least twenty hours  per  week  or  ten
 hours  per  week  when the qualified employee is enrolled in high school
 full-time. A taxpayer that is a partner in a partnership,  member  of  a
 limited  liability  company  or shareholder in an S corporation that has

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 been certified by the commissioner of  labor  as  a  qualified  employer
 pursuant  to section twenty-five-a of the labor law shall be allowed its
 pro rata share of the credit earned by the partnership, limited  liabil-
 ity  company or S corporation. For purposes of this subsection, the term
 "qualified employee" shall have the same meaning as set forth in  subdi-
 vision (b) of section twenty-five-a of the labor law. The portion of the
 credit  described in subparagraph (A) of this paragraph shall be allowed
 for the taxable year in which  the  wages  are  paid  to  the  qualified
 employee,  the  portion  of  the credit described in subparagraph (B) of
 this paragraph shall be allowed in the taxable year in which  the  addi-
 tional six month period ends, and the portion of the credit described in
 subparagraph  (C) of this paragraph shall be allowed in the taxable year
 in which the additional year after the first year of employment ends.
   § 8. Paragraph 1 of subsection (tt) of section 606 of the tax law,  as
 amended by section 7 of this act, is amended to read as follows:
   (1) A taxpayer that has been certified by the commissioner of labor as
 a  qualified employer pursuant to section twenty-five-a of the labor law
 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS-
 SIONER shall be allowed a credit against the tax imposed by this article
 equal to [(A) seven hundred fifty dollars per month for up to six months
 for each qualified employee the employer employs in a full-time  job  or
 three  hundred  seventy-five  dollars per month for up to six months for
 each qualified employee the employer employs in a part-time  job  of  at
 least  twenty  hours  per  week or ten hours per week when the qualified
 employee is enrolled in high school full-time, and (B)  fifteen  hundred
 dollars  for  each  qualified  employee  who is employed for at least an
 additional six consecutive months by the qualified employer in  a  full-
 time  job or seven hundred fifty dollars for each qualified employee who
 is employed for at least an additional six  consecutive  months  by  the
 qualified  employer in a part-time job of at least twenty hours per week
 or ten hours per week when the qualified employee is  enrolled  in  high
 school full-time, and (C) an additional fifteen hundred dollars for each
 qualified employee who is employed for at least an additional year after
 the  completion  of  the time periods and satisfaction of the conditions
 set forth in subparagraphs A and B of this subsection by  the  qualified
 employer  in  a  full-time  job  or seven hundred fifty dollars for each
 qualified employee who is employed for at least an additional year after
 the completion of the time periods and satisfaction  of  the  conditions
 set  forth  in subparagraphs A and B of this subsection by the qualified
 employer in a part-time job of at least twenty hours  per  week  or  ten
 hours  per  week  when the qualified employee is enrolled in high school
 full-time] THE AMOUNT LISTED ON THE  ANNUAL  FINAL  CERTIFICATE  OF  TAX
 CREDIT  ISSUED  BY THE COMMISSIONER OF LABOR PURSUANT TO SECTION TWENTY-
 FIVE-A OF THE LABOR LAW. A taxpayer that is a partner in a  partnership,
 member of a limited liability company or shareholder in an S corporation
 that  has  [been  certified by] RECEIVED ITS ANNUAL FINAL CERTIFICATE OF
 TAX CREDIT FROM the commissioner of labor as a qualified employer pursu-
 ant to section twenty-five-a of the labor law shall be allowed  its  pro
 rata  share  of  the credit earned by the partnership, limited liability
 company or S corporation. [For purposes of  this  subsection,  the  term
 "qualified  employee" shall have the same meaning as set forth in subdi-
 vision (b) of section twenty-five-a of the labor law. The portion of the
 credit described in subparagraph (A) of this paragraph shall be  allowed
 for  the  taxable  year  in  which  the  wages are paid to the qualified
 employee, the portion of the credit described  in  subparagraph  (B)  of
 this  paragraph  shall be allowed in the taxable year in which the addi-

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 tional six month period ends, and the portion of the credit described in
 subparagraph (C) of this paragraph shall be allowed in the taxable  year
 in  which  the additional year after the first year of employment ends.]
 IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOY-
 ER  SHALL  BE  ENTITLED  TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL
 FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR  RETURN  FOR  WHICH
 THE  ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED
 EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED
 TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES  THE  DATE  ON
 WHICH  THE  ANNUAL  FINAL  CERTIFICATE OF TAX CREDIT IS ISSUED.  FOR THE
 PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED  EMPLOYEE"  SHALL  HAVE
 THE   SAME   MEANING   AS  SET  FORTH  IN  SUBDIVISION  (B)  OF  SECTION
 TWENTY-FIVE-A OF THE LABOR LAW.
   § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law,  as
 added  by  section  3  of  part  D of chapter 56 of the laws of 2011, is
 amended to read as follows:
   (3) The taxpayer [may] SHALL be required to attach to its  tax  return
 its  ANNUAL  FINAL certificate of [eligibility] TAX CREDIT issued by the
 commissioner of labor pursuant to section  twenty-five-a  of  the  labor
 law. In no event shall the taxpayer be allowed a credit greater than the
 amount  of  the credit listed on the ANNUAL FINAL certificate of [eligi-
 bility] TAX CREDIT. Notwithstanding any provision of this chapter to the
 contrary, the commissioner and the commissioner's designees may  release
 the  names  and  addresses  of any taxpayer claiming this credit and the
 amount of the credit earned by the taxpayer.   Provided, however,  if  a
 taxpayer  claims this credit because it is a member of a limited liabil-
 ity company, a partner in a partnership, or a shareholder in a  subchap-
 ter  S  corporation,  only the amount of credit earned by the entity and
 not the amount of credit claimed by the taxpayer may be released.
   § 10. This act shall take effect immediately,  provided  however  that
 (i)  section  one  of  this act shall apply to tax years beginning on or
 after January 1, 2018; (ii) sections four and seven of  this  act  shall
 apply  to  tax  years  beginning  on or after January 1, 2018 and before
 January 1, 2019; and (iii) sections two, three, five,  six,  eight,  and
 nine  of  this  act shall take effect January 1, 2019 and shall apply to
 tax years beginning on or after January 1, 2019.
 
                                  PART S
 
   Section 1. Section 33 of the tax law, as added by section 1 of part  Y
 of chapter 57 of the laws of 2010, is amended to read as follows:
   §  33.  Temporary  deferral of certain tax credits. 1. (a) For taxable
 years beginning on or after January first, two thousand  [ten]  EIGHTEEN
 and before January first, two thousand [thirteen] TWENTY-ONE, the excess
 over  two  million dollars of the total amount of the tax credits speci-
 fied in subdivision three of this section that in each of those  taxable
 years  would otherwise be used to reduce the taxpayer's tax liability to
 the amount otherwise specified in this chapter or be refunded or credit-
 ed as an overpayment will be deferred to and used or refunded in taxable
 years beginning on or after January first, two thousand [thirteen] TWEN-
 TY-ONE in accordance with the provisions of section thirty-four of  this
 article. Interest shall not be paid on the amounts of credit deferred.
   (b) To determine the amount of each tax credit allowed for the taxable
 year  to  be  used,  refunded or credited as an overpayment the taxpayer
 shall multiply the amount of each credit subject to deferral that  would

 S. 7509--A                         34                         A. 9509--A
 
 have been used, refunded or credited as an overpayment in the absence of
 this  section  by  a  fraction,  the  numerator  of which is two million
 dollars, and the denominator of which is the total amount of the taxpay-
 er's  credits  subject to deferral pursuant to subdivision three of this
 section that would have been used, refunded or credited as  an  overpay-
 ment for the taxable year in the absence of this section. The product is
 the  amount  of  such  credit  that  is not subject to deferral and thus
 allowed to be used, refunded or credited as an overpayment for the taxa-
 ble year.
   2. Taxpayers shall calculate  and  make  any  estimated  tax  payments
 required  to  be  made  by  taking  into account the deferral of credits
 required by this section. Taxpayers shall calculate any mandatory  first
 installment payments made on or after the effective date of this section
 as  if  the  deferral  of  credits  required by this section had been in
 effect for the taxable year upon which that  installment  is  based.  In
 addition,  for  taxable  years  beginning on or after January first, two
 thousand [ten] EIGHTEEN and before January first, two thousand  [eleven]
 NINETEEN,  (a)  no  addition  to tax under subsection (c) of section six
 hundred eighty-five of this chapter or subsection  (c)  of  section  one
 thousand  eighty-five  of  this chapter shall be imposed with respect to
 any underpayment attributable to the deferral required by  this  section
 of  any estimated taxes that are required to be paid prior to the enact-
 ment of this section, provided  that  the  taxpayer  timely  made  those
 payments; and (b) the required installment of estimated tax described in
 clause  (ii) of subparagraph (B) of paragraph three of subsection (c) of
 section six hundred eighty-five of this chapter, and  the  exception  to
 addition for underpayment of estimated tax described in paragraph one or
 two  of subsection (d) of section one thousand eighty-five of this chap-
 ter, in relation to the preceding year's return, shall be calculated  as
 if  the  deferral  required  by this section had been in effect for that
 entire preceding year.
   3. (a) This section shall apply  to  the  credits  allowed  under  the
 following  provisions in article nine-a of this chapter and any applica-
 ble counterpart provisions in articles  nine,  twenty-two,  [thirty-two]
 and thirty-three of this chapter:
   Section [210(12)] 210-B(1) investment tax credit
   Section [210(12-B)] 210-B(3) empire zone investment tax credit
   Section [210(12-C)] 210-B(4) empire zone employment incentive credit
   Section [210(12-D)] 210-B(2) employment incentive credit
   Section [210(12-E)] 210-B(7) QETC employment credit
   Section [210(12-F)] 210-B(8) QETC capital tax credit
   [Section 210(12-G) QETC facilities, operations, and training credit]
   Section  [210(17)]  210-B(9) special additional mortgage recording tax
 credit
   [Section 210(19) empire zone wage tax credit
   Section 210(20) empire zone capital tax credit]
   Section [210(21-a)] 210-B(10) credit for servicing certain mortgages
   Section [210(23)] 210-B(12) credit  for  employment  of  persons  with
 disabilities
   Section  [210(24)]  210-B(30)  alternative  fuels AND ELECTRIC VEHICLE
 RECHARGING PROPERTY credit
   Section [210(25)]  210-B(13)  credit  for  purchase  of  an  automated
 external defibrillator
   Section [210(27)] 210-B(5) QEZE credit for real property taxes
   Section [210(28)] 210-B(6) QEZE tax reduction credit
   Section [210(30)] 210-B(15) low income housing credit

 S. 7509--A                         35                         A. 9509--A
 
   Section [210(31)] 210-B(16) green building credit
   Section [210(33)] 210-B(17) brownfield redevelopment tax credit
   Section  [210(34)]  210-B(18)  remediated  brownfield  credit for real
 property taxes for qualified sites
   Section [210(35)] 210-B(19) environmental remediation insurance credit
   Section [210(37)] 210-B(21) security training tax credit
   [Section 210(37) credit for fuel cell  electric  generating  equipment
 expenditures]
   Section [210(38)] 210-B(22) conservation easement tax credit
   [Section 210(38) empire state commercial production credit]
   Section [210(38)] 210-B(24) biofuel production credit
   Section [210(39)] 210-B(25) clean heating fuel credit
   Section  [210(40)]  210-B(26)  credit  for  rehabilitation of historic
 properties
   Section [210(40)] 210-B(38) credit for companies who provide transpor-
 tation to individuals with disabilities
   SECTION 210-B(11) AGRICULTURAL PROPERTY TAX CREDIT
   SECTION 210-B(35) ECONOMIC TRANSFORMATION AND  FACILITY  REDEVELOPMENT
 CREDIT
   SECTION 210-B(39) ALCOHOLIC BEVERAGE PRODUCTION CREDIT
   SECTION 210-B(40) MINIMUM WAGE REIMBURSEMENT CREDIT
   SECTION 210-B(41) THE TAX-FREE NY AREA TAX ELIMINATION CREDIT
   SECTION 210-B(43) REAL PROPERTY TAX CREDIT FOR MANUFACTURERS
   SECTION 210-B(44) THE TAX-FREE NY AREA EXCISE TAX ON TELECOMMUNICATION
 SERVICES CREDIT
   SECTION 210-B(47) MUSICAL AND THEATRICAL PRODUCTION CREDIT
   SECTION 210-B(48) WORKERS WITH DISABILITIES TAX CREDIT
   SECTION 210-B(51) FARM WORKFORCE RETENTION CREDIT
   (b)  This  section  shall  also  apply  to  the credits allowed by the
 following sections:
   [Section 186-a(9) power for jobs credit]
   Section 606(g-1) solar energy system equipment credit
   Section 606(pp) historic homeownership rehabilitation credit
   Section 1511(k) credit for certain investments  in  certified  capital
 companies
   §  2.  Subdivisions  1 and 2 of section 34 of the tax law, as added by
 section 2 of part Y of chapter 57 of the laws of 2010,  are  amended  to
 read as follows:
   1.  The amounts of nonrefundable credits that are deferred pursuant to
 section thirty-three of this article in taxable years  beginning  on  or
 after  January  first,  two  thousand  [ten] EIGHTEEN and before January
 first, two thousand  [thirteen]  TWENTY-ONE  shall  be  accumulated  and
 constitute  the taxpayer's temporary deferral nonrefundable payout cred-
 it. The taxpayer may first claim this credit in the taxable year  begin-
 ning  on  or after January first, two thousand [thirteen] TWENTY-ONE and
 before January first, two thousand [fourteen] TWENTY-TWO.  The  taxpayer
 shall  be allowed to claim this credit until the accumulated amounts are
 exhausted. The credit shall be allowed against  the  taxpayer's  tax  as
 provided  in  the  provisions referenced in paragraph (a) of subdivision
 three of this section.
   2. The amounts of refundable credits that  are  deferred  pursuant  to
 section  thirty-three  of  this article in taxable years beginning on or
 after January first, two thousand  [ten]  EIGHTEEN  and  before  January
 first,  two  thousand  [thirteen]  TWENTY-ONE  shall  be accumulated and
 constitute the taxpayer's temporary deferral refundable  payout  credit.
 In  the  taxable  year beginning on or after January first, two thousand

 S. 7509--A                         36                         A. 9509--A
 
 [thirteen] TWENTY-ONE and before January first, two thousand  [fourteen]
 TWENTY-TWO,  the  taxpayer  shall  be allowed to claim a credit equal to
 fifty percent of the amount accumulated. In the taxable  year  beginning
 on or after January first, two thousand [fourteen] TWENTY-TWO and before
 January  first,  two thousand [fifteen] TWENTY-THREE, the taxpayer shall
 be allowed to claim a  credit  equal  to  seventy-five  percent  of  the
 balance  of  the amount accumulated. In the taxable year beginning on or
 after January first, two  thousand  [fifteen]  TWENTY-THREE  and  before
 January first, two thousand [sixteen] TWENTY-FOUR, the taxpayer shall be
 allowed  to  claim a credit equal to the remaining balance of the amount
 accumulated. The credit shall be allowed against the taxpayer's  tax  as
 provided  in  the  provisions referenced in paragraph (b) of subdivision
 three of this section.
   § 3. This act shall take effect immediately.
 
                                  PART T
 
   Section 1. Subdivision (a) of section 1412 of the tax law, as added by
 chapter 61 of the laws of 1989, is amended to read as follows:
   (a) A grantor or grantee claiming to have  erroneously  paid  the  tax
 imposed  by this article or some other person designated by such grantor
 or grantee may file an application for refund within [two]  THREE  years
 from  the  date  of  payment.  Such  application shall be filed with the
 commissioner [of  taxation  and  finance]  on  a  form  which  he  shall
 prescribe.
   §  2.  Subdivision  (b)  of section 1402-a of the tax law, as added by
 chapter 61 of the laws of 1989, is amended to read as follows:
   (b) Notwithstanding the provisions of subdivision (a) of section four-
 teen hundred four of this article, the additional tax  imposed  by  this
 section  shall  be  paid  by the grantee. If the grantee [is exempt from
 such tax, the grantor shall have the duty to pay the tax] 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 GRANTEE  IS  EXEMPT  FROM
 SUCH  TAX,  THE  GRANTOR  SHALL  HAVE THE DUTY TO PAY THE TAX. WHERE THE
 GRANTOR HAS THE DUTY TO PAY THE TAX BECAUSE THE GRANTEE  HAS  FAILED  TO
 PAY,  SUCH  TAX  SHALL BE THE JOINT AND SEVERAL LIABILITY OF THE GRANTOR
 AND THE GRANTEE.
   § 3. This act shall take effect immediately; provided,  however,  that
 section two of this act shall apply to conveyances occurring on or after
 the fifteenth day after this act shall have become a law.
 
                                  PART U
 
   Section  1.  Subdivision  6 of section 470 of the tax law, as added by
 chapter 61 of the laws of 1989, is amended to read as follows:
   6. "Wholesale price." The [established]  INVOICE  price  for  which  a
 manufacturer  OR  OTHER  PERSON sells tobacco products to a distributor,
 INCLUDING THE FEDERAL EXCISE TAXES PAID BY  THE  MANUFACTURER  OR  OTHER
 PERSON, before the allowance of any discount, trade allowance, rebate or
 other reduction.
   [In the absence of such an established price, a manufacturer's invoice
 price of any tobacco product shall be presumptive evidence of the whole-
 sale  price  of  such  tobacco  product, and in its absence the price at
 which such tobacco products were purchased shall be presumed to  be  the
 wholesale  price,  unless  evidence  of a lower wholesale price shall be

 S. 7509--A                         37                         A. 9509--A

 established or any industry standard of markups relating to the purchase
 price in relation to the wholesale price shall be established.]
   §  2.  This act shall take effect on September 1, 2018 and shall apply
 to all tobacco products possessed in this state for  sale  on  or  after
 such date.

                                  PART V
 
   Section  1.  Subparagraph  (A)  of  paragraph  1 of subdivision (b) of
 section 1105 of the tax law, as amended by section 9 of part S of  chap-
 ter 85 of the laws of 2002, is amended to read as follows:
   (A)  gas,  electricity,  refrigeration  and  steam, and gas, electric,
 refrigeration and steam service of whatever nature, INCLUDING THE TRANS-
 PORTATION, TRANSMISSION OR DISTRIBUTION OF GAS OR ELECTRICITY,  EVEN  IF
 SOLD SEPARATELY;
   § 2. Section 1105-C of the tax law is REPEALED.
   §  3.  Subparagraph  (xi) of paragraph 4 of subdivision (a) of section
 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of
 the laws of 2016, is amended to read as follows:
   (xi) [shall provide that section eleven hundred five-C of this chapter
 does not apply to such taxes, and] shall tax receipts from  every  sale,
 other than sales for resale, of gas service or electric service of what-
 ever  nature, including the transportation, transmission or distribution
 of gas or electricity, even if sold separately, at the rate set forth in
 clause one of subparagraph (i) of the opening paragraph of this section;
   § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis-
 trative code of the city of New York, as amended by chapter 200  of  the
 laws of 2009, is amended to read as follows:
   (8)  [makes inapplicable section eleven hundred five-C of the tax law,
 and] imposes tax on receipts from  every  sale,  other  than  sales  for
 resale, of gas service or electric service of whatever nature, including
 the  transportation, transmission or distribution of gas or electricity,
 even if sold separately, at the rate set forth  in  subdivision  (a)  of
 this section.
   §  5.  This  act  shall take effect immediately; provided however that
 this act shall apply to sales made and services rendered  on  and  after
 June 1, 2018 whether or not such sales and services are rendered under a
 prior contract.
 
                                  PART W
 
   Section  1. Subdivision (f) of section 1115 of the tax law, as amended
 by chapter 205 of the laws of 1968, is amended to read as follows:
   (f) (1) Services rendered by a veterinarian licensed and registered as
 required by the education law which constitute the practice  of  veteri-
 nary  medicine  as  defined  in  said law, including hospitalization for
 which no separate boarding charge is made, shall not be subject  to  tax
 under  paragraph  (3) of subdivision (c) of section eleven hundred five,
 but the exemption allowed by this subdivision shall not apply  to  other
 services  provided  by a veterinarian to pets and other animals, includ-
 ing, but not limited to, boarding, grooming and  clipping.  Articles  of
 tangible  personal  property designed for use in some manner relating to
 domestic animals or poultry, when sold by such a veterinarian, shall not
 be subject to tax under subdivision (a) of section eleven  hundred  five
 or under section eleven hundred ten. However, the sale of any such arti-
 cles of tangible personal property to a veterinarian shall not be deemed

 S. 7509--A                         38                         A. 9509--A
 
 a  sale  for  resale  within  the meaning of [pargraph] PARAGRAPH (4) of
 subdivision (b) of section eleven hundred one and shall  not  be  exempt
 from retail sales tax.
   (2)  DRUGS  OR  MEDICINE  SOLD TO OR USED BY A VETERINARIAN FOR USE IN
 RENDERING SERVICES THAT ARE EXEMPT PURSUANT TO  PARAGRAPH  ONE  OF  THIS
 SUBDIVISION  TO  LIVESTOCK OR POULTRY USED IN THE PRODUCTION FOR SALE OF
 TANGIBLE PERSONAL PROPERTY BY FARMING, OR SOLD TO  A  PERSON  QUALIFYING
 FOR  THE  EXEMPTION  PROVIDED FOR IN PARAGRAPH SIX OF SUBDIVISION (A) OF
 THIS SECTION FOR USE BY SUCH PERSON ON SUCH LIVESTOCK OR POULTRY.
   § 2. Subdivision (a) of section 1119 of the tax  law,  as  amended  by
 chapter  686 of the laws of 1986 and as further amended by section 15 of
 part GG of chapter 63 of the  laws  of  2000,  is  amended  to  read  as
 follows:
   (a)  Subject  to the conditions and limitations provided for herein, a
 refund or credit shall be allowed for a tax paid pursuant to subdivision
 (a) of section eleven hundred five or section eleven hundred ten (1)  on
 the  sale or use of tangible personal property if the purchaser or user,
 in the performance of  a  contract,  later  incorporates  that  tangible
 personal  property into real property located outside this state, (2) on
 the sale or use of tangible personal property purchased in bulk, or  any
 portion  thereof,  which is stored and not used by the purchaser or user
 within this state if that property is  subsequently  reshipped  by  such
 purchaser  or  user  to  a point outside this state for use outside this
 state, (3) on the sale to or use by a  contractor  or  subcontractor  of
 tangible personal property if that property is used by him solely in the
 performance  of  a  pre-existing  lump  sum  or  unit price construction
 contract, (4) on the sale or use within this state of tangible  personal
 property,  not purchased for resale, if the use of such property in this
 state is restricted to fabricating such property (including  incorporat-
 ing  it  into  or  assembling it with other tangible personal property),
 processing, printing or imprinting such property and  such  property  is
 then  shipped  to a point outside this state for use outside this state,
 [(5) on the sale to or use by a veterinarian of  drugs  or  medicine  if
 such  drugs  or  medicine  are  used  by  such veterinarian in rendering
 services, which are exempt pursuant to subdivision (f) of section eleven
 hundred fifteen of this chapter, to livestock or  poultry  used  in  the
 production  for sale of tangible personal property by farming or if such
 drugs or medicine are sold to a  person  qualifying  for  the  exemption
 provided  for  in  paragraph  (6)  of  subdivision (a) of section eleven
 hundred fifteen of this chapter for use by such person on such livestock
 or poultry,] or (6) on the sale of tangible personal property  purchased
 for  use  in  constructing,  expanding  or  rehabilitating industrial or
 commercial real property (other than property used or to be used  exclu-
 sively by one or more registered vendors primarily engaged in the retail
 sale  of tangible personal property) located in an area designated as an
 empire zone pursuant to article eighteen-B of the general municipal law,
 but only to the extent that such property becomes an integral  component
 part of the real property. (For the purpose of clause (3) of the preced-
 ing sentence, the term "pre-existing lump sum or unit price construction
 contract"  shall mean a contract for the construction of improvements to
 real property under which  the  amount  payable  to  the  contractor  or
 subcontractor  is  fixed  without regard to the costs incurred by him in
 the performance thereof, and which  (i)  was  irrevocably  entered  into
 prior to the date of the enactment of this article or the enactment of a
 law  increasing  the  rate  of  tax  imposed under this article, or (ii)
 resulted from the acceptance by a governmental agency of a bid  accompa-

 S. 7509--A                         39                         A. 9509--A
 
 nied  by  a  bond  or  other  performance guaranty which was irrevocably
 submitted prior to such date.) Where the tax on the sale or use of  such
 tangible  personal  property has been paid to the vendor, to qualify for
 such  refund or credit, such tangible personal property must be incorpo-
 rated into real property as required in clause (1) above,  reshipped  as
 required  in  clause  (2) above, used in the manner described in clauses
 (3), (4)[, (5)] and (6) above within three years after the date such tax
 was payable to the tax commission by  the  vendor  pursuant  to  section
 eleven  hundred  thirty-seven.  Where the tax on the sale or use of such
 tangible personal property was paid by the applicant for the  credit  or
 refund  directly  to  the  tax commission, to qualify for such refund or
 credit, such tangible personal property must be incorporated  into  real
 property  as  required  in  clause  (1)  above, reshipped as required in
 clause (2) above, used in the manner described  in  clauses  (3),  (4)[,
 (5)]  and (6) above within three years after the date such tax was paya-
 ble to the tax commission by such applicant pursuant to this article. An
 application for a refund or credit pursuant  to  this  section  must  be
 filed  with  such commission within the time provided by subdivision (a)
 of section eleven hundred thirty-nine. Such application shall be in such
 form as the tax commission may prescribe. Where an application for cred-
 it has been filed, the applicant may immediately take such credit on the
 return which is due coincident with or  immediately  subsequent  to  the
 time  that  he  files his application for credit. However, the taking of
 the credit on the return shall be deemed to be part of  the  application
 for credit and shall be subject to the provisions in respect to applica-
 tions  for  credit  in section eleven hundred thirty-nine as provided in
 subdivision (e) of such section. With respect to a sale or use described
 in clause (3)  above  where  a  pre-existing  lump  sum  or  unit  price
 construction  contract was irrevocably entered into prior to the date of
 the enactment of this article or the bid accompanied by the  performance
 guaranty  was  irrevocably submitted to the governmental agency prior to
 such date, the purchaser or user shall be entitled to a refund or credit
 only of the amount by which the tax on such sale or  use  imposed  under
 this  article  plus any tax imposed under the authority of article twen-
 ty-nine exceeds the amount computed by applying against such sale or use
 the local rate of tax, if any, in effect at the time such  contract  was
 entered into or such bid was submitted.
   In  the  case  of  the  enactment  of a law increasing the rate of tax
 imposed by this article, the purchaser or user shall be entitled only to
 a refund or credit of the amount by which the increased tax on such sale
 or use imposed under this article plus any tax imposed under the author-
 ity of article twenty-nine  exceeds  the  amount  computed  by  applying
 against  such  sale or use the state and local rates of tax in effect at
 the time such contract was entered into or such bid was submitted.
   § 3. This act shall take effect June 1, 2018, and shall apply to sales
 made and uses occurring on and after such date.
 
                                  PART X
 
   Section 1. Subdivision 1 of section 1131 of the tax law, as amended by
 chapter 576 of the laws of 1994, is amended to read as follows:
   (1) "Persons required to collect tax" or "person required  to  collect
 any tax imposed by this article" shall include: every vendor of tangible
 personal property or services; every recipient of amusement charges; and
 every  operator  of  a hotel. Said terms shall also include any officer,
 director or employee of a corporation or of a dissolved corporation, any

 S. 7509--A                         40                         A. 9509--A
 
 employee of a partnership, any employee or manager of a limited  liabil-
 ity 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)  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.
   §  2.  Subdivision  (a)  of section 1133 of the tax law, as amended by
 chapter 621 of the laws of 1967, is amended to read as follows:
   (a) (1) Except as otherwise provided in PARAGRAPH TWO OF THIS SUBDIVI-
 SION AND IN section eleven hundred  thirty-seven  OF  THIS  PART,  every
 person  required  to  collect  any  tax imposed by this article shall be
 personally liable for the tax  imposed,  collected  or  required  to  be
 collected  under this article. Any such person shall have the same right
 in respect to collecting the tax from his  customer  or  in  respect  to
 nonpayment  of  the tax by the customer as if the tax were a part of the
 purchase price of the property or service, amusement charge or rent,  as
 the  case  may be, and payable at the same time; provided, however, that
 the tax commission shall be joined as a party in any action or  proceed-
 ing brought to collect the tax.
   (2)  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  THIS ARTICLE: (I) THE
 COMMISSIONER SHALL GRANT THE RELIEF DESCRIBED IN SUBPARAGRAPH  (III)  OF
 THIS  PARAGRAPH TO A LIMITED PARTNER OF A LIMITED PARTNERSHIP (BUT NOT A
 PARTNER OF A LIMITED LIABILITY PARTNERSHIP) OR A  MEMBER  OF  A  LIMITED
 LIABILITY  COMPANY IF SUCH LIMITED PARTNER OR MEMBER DEMONSTRATES TO THE
 SATISFACTION OF THE COMMISSIONER THAT SUCH LIMITED PARTNER'S OR MEMBER'S
 OWNERSHIP INTEREST AND THE PERCENTAGE OF THE DISTRIBUTIVE SHARE  OF  THE
 PROFITS  AND  LOSSES  OF  SUCH  LIMITED PARTNERSHIP OR LIMITED LIABILITY
 COMPANY ARE EACH LESS THAN FIFTY PERCENT, AND SUCH  LIMITED  PARTNER  OR
 MEMBER  WAS  NOT  UNDER  A  DUTY  TO ACT FOR SUCH LIMITED PARTNERSHIP OR
 LIMITED LIABILITY COMPANY IN COMPLYING  WITH  ANY  REQUIREMENT  OF  THIS
 ARTICLE. PROVIDED, HOWEVER, THE COMMISSIONER MAY DENY AN APPLICATION FOR
 RELIEF  TO ANY SUCH LIMITED PARTNER OR MEMBER WHO THE COMMISSIONER FINDS
 HAS ACTED ON BEHALF OF SUCH LIMITED  PARTNERSHIP  OR  LIMITED  LIABILITY
 COMPANY  IN  COMPLYING  WITH ANY REQUIREMENT OF THIS ARTICLE OR HAS BEEN
 CONVICTED OF A CRIME PROVIDED IN THIS CHAPTER  OR  WHO  HAS  A  PAST-DUE
 LIABILITY,  AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED SEVENTY-ONE-V
 OF THIS CHAPTER.
   (II) SUCH LIMITED PARTNER OR MEMBER MUST  SUBMIT  AN  APPLICATION  FOR
 RELIEF,  ON  A  FORM PRESCRIBED BY THE COMMISSIONER, AND THE INFORMATION
 PROVIDED IN SUCH APPLICATION MUST BE TRUE AND COMPLETE IN  ALL  MATERIAL
 RESPECTS.  PROVIDING  MATERIALLY FALSE OR FRAUDULENT INFORMATION ON SUCH
 APPLICATION SHALL DISQUALIFY SUCH LIMITED  PARTNER  OR  MEMBER  FOR  THE
 RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, SHALL VOID ANY
 AGREEMENT  WITH  THE COMMISSIONER WITH RESPECT TO SUCH RELIEF, AND SHALL
 RESULT IN SUCH LIMITED PARTNER OR MEMBER BEARING  STRICT  LIABILITY  FOR
 THE  TOTAL  AMOUNT OF TAX, INTEREST AND PENALTY OWED BY THEIR RESPECTIVE
 LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY PURSUANT TO THIS SUBDI-
 VISION.

 S. 7509--A                         41                         A. 9509--A
 
   (III) A LIMITED PARTNER OF A LIMITED PARTNERSHIP OR MEMBER OF A LIMIT-
 ED LIABILITY COMPANY, WHO MEETS THE REQUIREMENTS SET FORTH IN THIS PARA-
 GRAPH AND WHOSE APPLICATION FOR RELIEF IS APPROVED BY THE  COMMISSIONER,
 SHALL  BE  LIABLE  FOR  THE PERCENTAGE OF THE ORIGINAL SALES AND USE TAX
 LIABILITY  OF  THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY
 COMPANY THAT REFLECTS  SUCH  LIMITED  PARTNER'S  OR  MEMBER'S  OWNERSHIP
 INTEREST OF DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED
 PARTNERSHIP  OR  LIMITED  LIABILITY  COMPANY,  WHICHEVER IS HIGHER. SUCH
 ORIGINAL LIABILITY SHALL INCLUDE ANY INTEREST ACCRUED THEREON UP TO  AND
 INCLUDING  THE  DATE OF PAYMENT BY SUCH LIMITED PARTNER OR MEMBER AT THE
 UNDERPAYMENT RATE SET BY THE COMMISSIONER  PURSUANT  TO  SECTION  ELEVEN
 HUNDRED  FORTY-TWO  OF THIS PART, AND SHALL BE REDUCED BY THE SUM OF ANY
 PAYMENTS MADE BY (A) THE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPA-
 NY; (B) ANY PERSON REQUIRED TO COLLECT TAX NOT ELIGIBLE FOR RELIEF;  AND
 (C)  ANY  PERSON REQUIRED TO COLLECT TAX WHO WAS ELIGIBLE FOR RELIEF BUT
 HAD NOT BEEN APPROVED FOR RELIEF BY THE COMMISSIONER AT  THE  TIME  SUCH
 PAYMENT  WAS  MADE.  PROVIDED,  HOWEVER,  SUCH LIMITED PARTNER OR MEMBER
 SHALL NOT BE LIABLE FOR ANY PENALTY OWED BY SUCH LIMITED PARTNERSHIP  OR
 LIMITED LIABILITY COMPANY OR ANY OTHER PARTNER OR MEMBER OF SUCH LIMITED
 PARTNERSHIP  OR LIMITED LIABILITY COMPANY. ANY PAYMENT MADE BY A LIMITED
 PARTNER OR MEMBER PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH SHALL NOT
 BE CREDITED AGAINST THE LIABILITY OF OTHER LIMITED PARTNERS  OR  MEMBERS
 OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY WHO
 ARE  ELIGIBLE FOR THE SAME RELIEF; PROVIDED, HOWEVER THAT THE SUM OF THE
 AMOUNTS OWED BY ALL OF THE PERSONS REQUIRED TO COLLECT TAX OF A  LIMITED
 PARTNERSHIP  OR  LIMITED  LIABILITY  COMPANY  SHALL NOT EXCEED THE TOTAL
 LIABILITY OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY.
   § 3. This act shall take effect immediately.
 
                                  PART Y
 
   Section 1. Paragraph 1 of subdivision (a) of section 1115 of  the  tax
 law,  as  amended  by  section 1 of part II of chapter 59 of the laws of
 2014, is amended to read as follows:
   (1) (A) Food, food  products,  beverages,  dietary  foods  and  health
 supplements,  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 alcohol-
 ic beverages, 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.
   [The] (B) UNTIL MAY THIRTY FIRST, TWO THOUSAND TWENTY,  THE  food  and
 drink  excluded  from  the  exemption  provided by [this paragraph under
 subparagraphs] CLAUSES (i), (ii) and (iii) OF SUBPARAGRAPH (A)  of  this
 paragraph,  AND  BOTTLED  WATER,  shall be exempt under this [paragraph]
 SUBPARAGRAPH when sold for one dollar and fifty cents  or  less  through
 any  vending  machine  [activated by the use of] THAT ACCEPTS coin[,] OR
 currency[, credit card or debit card] ONLY OR WHEN SOLD FOR TWO  DOLLARS
 OR  LESS  THROUGH  ANY  VENDING MACHINE THAT ACCEPTS ANY FORM OF PAYMENT
 OTHER THAN COIN OR CURRENCY, WHETHER OR NOT  IT  ALSO  ACCEPTS  COIN  OR
 CURRENCY. [With the exception of the provision in this paragraph provid-
 ing  for  an exemption for certain food or drink sold for one dollar and

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

 fifty cents or less through vending machines, nothing  herein  shall  be
 construed as exempting food or drink from the tax imposed under subdivi-
 sion (d) of section eleven hundred five of this article.]
   § 2. This act shall take effect June 1, 2018, and shall apply to sales
 made and uses occurring on and after such date.
 
                                  PART Z
 
   Section  1. Section 2 of subpart R of part A of chapter 61 of the laws
 of 2017, amending the tax law relating to extending  the  expiration  of
 the  authorization  to the county of Genesee to impose an additional one
 percent of sales and compensating use  taxes,  is  amended  to  read  as
 follows:
   §  2.  Notwithstanding any other provision of law to the contrary, the
 one percent increase in sales and compensating use taxes authorized  for
 the  county of Genesee until November 30, [2019] 2020 pursuant to clause
 (20) of subparagraph (i) of the opening paragraph of section 1210 of the
 tax law, as amended by section one of this act, shall be divided in  the
 same  manner  and  proportion  as  the  existing three percent sales and
 compensating use taxes in such county are divided.
   § 2. Section 2 of subpart Z of part A of chapter 61  of  the  laws  of
 2017,  amending  the  tax  law  relating  to the imposition of sales and
 compensating use taxes by the county of Monroe, is amended  to  read  as
 follows:
   §  2.  Notwithstanding  the  provisions of subdivisions (b) and (c) of
 section 1262 and section 1262-g of the tax law, net collections, as such
 term is defined in section 1262 of the tax law, derived from the imposi-
 tion of sales and compensating use taxes by the county of Monroe at  the
 additional  rate of one percent as authorized pursuant to clause (25) of
 subparagraph (i) of the opening paragraph of section  1210  of  the  tax
 law, as amended by section one of this act, which are in addition to the
 current net collections derived from the imposition of such taxes at the
 three  percent  rate authorized by the opening paragraph of section 1210
 of the tax law, shall be distributed and allocated as follows:  for  the
 period  of  December  1,  2017 through November 30, [2019] 2020 in cash,
 five percent to the school districts in the area of the  county  outside
 the  city  of  Rochester,  three percent to the towns located within the
 county, one and one-quarter percent to the villages located  within  the
 county,  and  ninety and three-quarters percent to the city of Rochester
 and county of Monroe.  The  amount  of  the  ninety  and  three-quarters
 percent  to  be  distributed  and allocated to the city of Rochester and
 county of Monroe shall be distributed and allocated to each so that  the
 combined  total  distribution  and allocation to each from the sales tax
 revenues pursuant to sections 1262 and 1262-g of the tax  law  and  this
 section  shall  result  in  the  same total amount being distributed and
 allocated to the city of Rochester and county of Monroe. The  amount  so
 distributed  and  allocated  to  the  county  shall  be  used for county
 purposes. The foregoing cash payments to the school districts  shall  be
 allocated on the basis of the enrolled public school pupils, thereof, as
 such  term  is  used  in subdivision (b) of section 1262 of the tax law,
 residing in the county of Monroe. The cash payments to the towns located
 within the county of Monroe shall be allocated on the basis of the ratio
 which the population of each town, exclusive of the  population  of  any
 village  or  portion  thereof  located within a town, bears to the total
 population of the towns, exclusive of the  population  of  the  villages
 located  within  such  towns.  The cash payments to the villages located

 S. 7509--A                         43                         A. 9509--A
 
 within the county shall be allocated on the basis of the ratio which the
 population of each village bears to the total population of the villages
 located within the county. The term population as used in  this  section
 shall  have  the same meaning as used in subdivision (b) of section 1262
 of the tax law.
   § 3. Section 3 of subpart EE of part A of chapter 61 of  the  laws  of
 2017,  amending  the  tax law relating to extending the authorization of
 the county of Onondaga to impose an additional rate of sales and compen-
 sating use taxes, is amended to read as follows:
   § 3. Notwithstanding any contrary provision of  law,  net  collections
 from the additional one percent rate of sales and compensating use taxes
 which  may  be  imposed  by  the  county  of  Onondaga during the period
 commencing December 1, 2018 and ending November 30, [2019] 2020,  pursu-
 ant  to  the  authority  of  section  1210  of the tax law, shall not be
 subject to any revenue distribution agreement entered into under  subdi-
 vision  (c)  of  section 1262 of the tax law, but shall be allocated and
 distributed or paid, at least quarterly, as follows: (i)  1.58%  to  the
 county  of  Onondaga  for any county purpose; (ii) 97.79% to the city of
 Syracuse; and (iii) .63% to the  school  districts  in  accordance  with
 subdivision (a) of section 1262 of the tax law.
   §  4.  Section  2 of subpart GG of part A of chapter 61 of the laws of
 2017, amending the tax law relating to extending the  authority  of  the
 county  of Orange to impose an additional rate of sales and compensating
 use taxes, is amended to read as follows:
   § 2. Notwithstanding subdivision (c) of section 1262 of the  tax  law,
 net  collections  from any additional rate of sales and compensating use
 taxes which may be imposed by the county of  Orange  during  the  period
 commencing December 1, 2017, and ending November 30, [2019] 2020, pursu-
 ant  to  the  authority of section 1210 of the tax law, shall be paid to
 the county of Orange and shall be used by such county solely for  county
 purposes  and shall not be subject to any revenue distribution agreement
 entered into pursuant to the authority of  subdivision  (c)  of  section
 1262 of the tax law.
   §  5.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on June 29, 2017.
 
                                  PART AA
 
   Section 1. Section 1101 of the tax law is  amended  by  adding  a  new
 subdivision (e) to read as follows:
   (E)  WHEN  USED  IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED
 UNDER SUBDIVISION (A) OF SECTION ELEVEN  HUNDRED  FIVE  AND  BY  SECTION
 ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL MEAN:
   (1)  MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH
 A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY
 SUCH MARKETPLACE SELLER OR SELLERS. A  PERSON  "FACILITATES  A  SALE  OF
 TANGIBLE  PERSONAL  PROPERTY"  FOR  PURPOSES  OF THIS PARAGRAPH WHEN THE
 PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (I) SUCH PERSON  PROVIDES
 THE  FORUM  IN  WHICH, OR BY MEANS OF WHICH, THE SALE TAKES PLACE OR THE
 OFFER OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, BOOTH,  CATALOG,  AN
 INTERNET WEBSITE, OR SIMILAR FORUM; AND (II) SUCH PERSON OR AN AFFILIATE
 OF SUCH PERSON COLLECTS THE RECEIPTS PAID BY A CUSTOMER TO A MARKETPLACE
 SELLER  FOR  A  SALE  OF TANGIBLE PERSONAL PROPERTY, OR CONTRACTS WITH A
 THIRD PARTY TO COLLECT SUCH RECEIPTS. FOR PURPOSES  OF  THIS  PARAGRAPH,
 TWO  PERSONS  ARE  AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF
 MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT,  IN  THE  OTHER,  OR

 S. 7509--A                         44                         A. 9509--A
 
 WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR
 INDIRECT,  IS  HELD  IN  EACH  OF SUCH PERSONS BY ANOTHER PERSON OR BY A
 GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH RESPECT TO  EACH
 OTHER.  NOTWITHSTANDING ANYTHING IN THIS PARAGRAPH, A PERSON WHO FACILI-
 TATES SALES EXCLUSIVELY BY MEANS OF THE INTERNET IS  NOT  A  MARKETPLACE
 PROVIDER  FOR  A SALES TAX QUARTER WHEN SUCH PERSON CAN SHOW THAT IT HAS
 FACILITATED LESS THAN ONE HUNDRED MILLION DOLLARS OF SALES ANNUALLY  FOR
 EVERY CALENDAR YEAR AFTER TWO THOUSAND SIXTEEN.
   (2)  MARKETPLACE  SELLER.  ANY  PERSON,  WHETHER OR NOT SUCH PERSON IS
 REQUIRED TO OBTAIN A  CERTIFICATE  OF  AUTHORITY  UNDER  SECTION  ELEVEN
 HUNDRED THIRTY-FOUR OF THIS ARTICLE, WHO HAS AN AGREEMENT WITH A MARKET-
 PLACE  PROVIDER  UNDER  WHICH  THE  MARKETPLACE PROVIDER WILL FACILITATE
 SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH PERSON WITHIN THE MEANING OF
 PARAGRAPH ONE OF THIS SUBDIVISION.
   § 2. Subdivision 1 of section 1131 of the tax law, as amended by chap-
 ter 576 of the laws of 1994, is amended to read as follows:
   (1) "Persons required to collect tax" or "person required  to  collect
 any tax imposed by this article" shall include: every vendor of tangible
 personal  property  or  services;  every recipient of amusement charges;
 [and] every operator of a hotel, AND  EVERY  MARKETPLACE  PROVIDER  WITH
 RESPECT  TO  SALES  OF  TANGIBLE  PERSONAL  PROPERTY  IT  FACILITATES AS
 DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN  HUNDRED
 ONE OF THIS ARTICLE. Said terms shall also include any officer, director
 or employee of a corporation or of a dissolved corporation, any employee
 of  a partnership, any employee or manager of a limited liability compa-
 ny, or any employee of an individual proprietorship who as such officer,
 director, employee or manager is under a duty to  act  for  such  corpo-
 ration, partnership, limited liability company or individual proprietor-
 ship  in  complying with any requirement of this article; and any member
 of a partnership or limited liability company.  Provided, however,  that
 any  person  who  is  a  vendor solely by reason of clause (D) or (E) of
 subparagraph (i) of paragraph (8) of subdivision (b) of  section  eleven
 hundred  one  shall not be a "person required to collect any tax imposed
 by this article" until twenty days after the date by which  such  person
 is  required  to  file a certificate of registration pursuant to section
 eleven hundred thirty-four OF THIS PART.
   § 3. Section 1132 of the tax law is amended by adding a  new  subdivi-
 sion (l) to read as follows:
   (L)(1)  A  MARKETPLACE  PROVIDER  WITH  RESPECT  TO A SALE OF TANGIBLE
 PERSONAL PROPERTY IT FACILITATES: (I) SHALL HAVE ALL THE OBLIGATIONS AND
 RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTICLE  TWENTY-NINE  OF  THIS
 CHAPTER  AND  UNDER ANY REGULATIONS ADOPTED PURSUANT THERETO, INCLUDING,
 BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIFICATE  OF  AUTHORITY,  TO
 COLLECT  TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIF-
 ICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION
 OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE  THE  REFUND  AUTHORIZED  BY
 SUBDIVISION  (E)  OF  THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION
 (F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT  TO  THE
 PROVISIONS  OF  SUCH  SUBDIVISIONS; AND (II) SHALL KEEP SUCH RECORDS AND
 INFORMATION AND COOPERATE WITH THE COMMISSIONER  TO  ENSURE  THE  PROPER
 COLLECTION  AND  REMITTANCE  OF TAX IMPOSED, COLLECTED OR REQUIRED TO BE
 COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER.
   (2) A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY  TO
 COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY
 SUBJECT  TO  TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF
 THIS ARTICLE AND SHALL NOT INCLUDE THE RECEIPTS FROM SUCH  SALE  IN  ITS

 S. 7509--A                         45                         A. 9509--A
 
 TAXABLE  RECEIPTS  FOR  PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF
 THIS PART IF, IN REGARD TO SUCH SALE: (I)  THE  MARKETPLACE  SELLER  CAN
 SHOW  THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM
 SUCH  SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE
 OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING  THAT
 THE  MARKETPLACE  PROVIDER  IS  REGISTERED TO COLLECT SALES TAX AND WILL
 COLLECT SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY  BY
 THE  MARKETPLACE  SELLER  FACILITATED  BY SUCH MARKETPLACE PROVIDER, AND
 WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND  (II)
 ANY  FAILURE OF THE MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF
 TAX IN REGARD TO SUCH SALE WAS NOT THE RESULT OF SUCH MARKETPLACE SELLER
 PROVIDING THE MARKETPLACE  PROVIDER  WITH  INCORRECT  INFORMATION.  THIS
 PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH
 (I)  OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A CERTIF-
 ICATE OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR  PURPOSES
 OF  SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH
 CERTIFICATE OF COLLECTION AND  THE  TIMING  OF  ITS  ACCEPTANCE  BY  THE
 MARKETPLACE  SELLER. PROVIDED THAT, WITH REGARD TO ANY SALES OF TANGIBLE
 PERSONAL PROPERTY BY A MARKETPLACE SELLER  THAT  ARE  FACILITATED  BY  A
 MARKETPLACE  PROVIDER  WHO  IS  AFFILIATED  WITH SUCH MARKETPLACE SELLER
 WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN
 HUNDRED ONE OF THIS ARTICLE, THE  MARKETPLACE  SELLER  SHALL  BE  DEEMED
 LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH MARKETPLACE PROVIDER FOR
 PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS
 PART.
   (3)  THE  COMMISSIONER  MAY,  IN  HIS OR HER DISCRETION: (I) DEVELOP A
 STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED  BY  A  MARKETPLACE
 PROVIDER,  IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT
 THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR WHOM  SUCH  MARKET-
 PLACE  PROVIDER  FACILITATES  SALES  OF TANGIBLE PERSONAL PROPERTY, WITH
 RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY
 OCCURS IN THE STATE; AND (II) PROVIDE BY REGULATION  OR  OTHERWISE  THAT
 THE  INCLUSION  OF  SUCH  PROVISION  IN THE PUBLICLY-AVAILABLE AGREEMENT
 BETWEEN THE MARKETPLACE PROVIDER AND MARKETPLACE SELLER  WILL  HAVE  THE
 SAME  EFFECT  AS  A  MARKETPLACE SELLER'S ACCEPTANCE OF A CERTIFICATE OF
 COLLECTION FROM SUCH MARKETPLACE PROVIDER UNDER PARAGRAPH  TWO  OF  THIS
 SUBDIVISION.
   §  4.  Section 1133 of the tax law is amended by adding a new subdivi-
 sion (f) to read as follows:
   (F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION
 FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT  THE
 MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT INFOR-
 MATION  GIVEN  TO  THE  MARKETPLACE  PROVIDER BY THE MARKETPLACE SELLER.
 PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF  THE  MARKETPLACE
 SELLER AND THE MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF
 PARAGRAPH  ONE  OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE OF THIS
 ARTICLE.
   § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as
 amended by section 46 of part K of chapter 61 of the laws  of  2011,  is
 amended to read as follows:
   (4)  The  return of a vendor of tangible personal property or services
 shall show such vendor's receipts from sales and the number  of  gallons
 of any motor fuel or diesel motor fuel sold and also the aggregate value
 of tangible personal property and services and number of gallons of such
 fuels  sold by the vendor, the use of which is subject to tax under this
 article,  and  the  amount  of  tax  payable  thereon  pursuant  to  the

 S. 7509--A                         46                         A. 9509--A
 
 provisions  of  section  eleven  hundred  thirty-seven of this part. The
 return of a recipient of amusement charges shall show all  such  charges
 and the amount of tax thereon, and the return of an operator required to
 collect  tax  on  rents shall show all rents received or charged and the
 amount of tax thereon. THE RETURN OF A MARKETPLACE SELLER SHALL  EXCLUDE
 THE  RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A
 MARKETPLACE PROVIDER IF, IN REGARD TO SUCH  SALE:  (A)  THE  MARKETPLACE
 SELLER  HAS  TIMELY  RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF-
 ICATE OF COLLECTION FROM THE MARKETPLACE  PROVIDER  OR  THE  MARKETPLACE
 PROVIDER  HAS  INCLUDED  A PROVISION APPROVED BY THE COMMISSIONER IN THE
 PUBLICLY-AVAILABLE AGREEMENT BETWEEN  THEMSELVES  AND  SUCH  MARKETPLACE
 SELLER  AS  DESCRIBED IN SUBDIVISION (L) OF SECTION ELEVEN HUNDRED THIR-
 TY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE MARKETPLACE
 SELLER TO THE MARKETPLACE PROVIDER ABOUT SUCH TANGIBLE PERSONAL PROPERTY
 IS ACCURATE.
   § 6. Section 1142 of the tax law is amended by adding two new subdivi-
 sions 15 and 16 to read as follows:
   15. TO PUBLISH A LIST  ON  THE  DEPARTMENT'S  WEBSITE  OF  MARKETPLACE
 PROVIDERS  WHOSE  CERTIFICATES  OF  AUTHORITY  HAS  BEEN REVOKED AND, IF
 NECESSARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR  OTHER-
 WISE  THAT  A MARKETPLACE SELLER WHO IS A VENDOR WILL BE RELIEVED OF THE
 DUTY TO COLLECT TAX FOR SALES OF TANGIBLE PERSONAL PROPERTY  FACILITATED
 BY  A  MARKETPLACE  PROVIDER  ONLY  IF,  IN  ADDITION  TO THE CONDITIONS
 PRESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN HUNDRED
 THIRTY-TWO OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS  NOT  ON
 SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED THEREBY.
   16.  TO  ENFORCE  THE  PENALTIES IMPOSED ON NON-COLLECTING SELLERS AND
 NON-COLLECTING MARKETPLACE PROVIDERS  PROVIDED  BY  SUBDIVISION  (I)  OF
 SECTION  ELEVEN HUNDRED FORTY-FIVE OF THIS PART BY COMMENCING A PROCEED-
 ING UNDER ARTICLE SEVENTY-TWO OF THE CIVIL PRACTICE LAW AND RULES.  THIS
 MEANS  ENFORCING SUCH PENALTIES IS IN ADDITION TO ANY OTHER LAWFUL MEANS
 THE COMMISSIONER MAY USE TO ENFORCE SUCH PENALTIES. THE VENUE  FOR  SUCH
 PROCEEDING SHALL BE ALBANY COUNTY.
   §  7. The tax law is amended by adding a new section 1135-a to read as
 follows:
   § 1135-A. REPORTING REQUIREMENTS. (A) (1)  THE  FOLLOWING  DEFINITIONS
 APPLY TO THE TAXES IMPOSED BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY
 OF ARTICLE TWENTY-NINE OF THIS CHAPTER:
   (A)  NON-COLLECTING  SELLER MEANS A PERSON WHO MAKES SALES OF TANGIBLE
 PERSONAL PROPERTY, THE USE OF WHICH IS TAXED BY THIS ARTICLE, BUT WHO IS
 NOT REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER  SECTION  ELEVEN
 HUNDRED  THIRTY-FOUR  OF THIS PART AND WHO DOES NOT COLLECT TAX OR MONEY
 PURPORTEDLY AS TAX  IMPOSED  BY  THIS  ARTICLE  IN  REGARD  TO  TANGIBLE
 PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE.
   (B)  NON-COLLECTING MARKETPLACE PROVIDER MEANS A MARKETPLACE PROVIDER,
 AS DEFINED BY SECTION ELEVEN HUNDRED ONE OF THIS  ARTICLE,  WHO  IS  NOT
 REQUIRED  TO  OBTAIN  A  CERTIFICATE  OF  AUTHORITY UNDER SECTION ELEVEN
 HUNDRED THIRTY-FOUR OF THIS PART AND WHO DOES NOT COLLECT TAX  OR  MONEY
 PURPORTEDLY  AS  TAX  IMPOSED  BY  THIS  ARTICLE  IN  REGARD TO TANGIBLE
 PERSONAL PROPERTY DELIVERED TO A LOCATION IN THIS STATE.
   (C) NEW  YORK  PURCHASER  MEANS  ANY  PERSON  WHO  PURCHASES  TANGIBLE
 PERSONAL PROPERTY FOR DELIVERY TO A LOCATION IN THIS STATE.
   (D)  LAST KNOWN ADDRESS OF A NEW YORK PURCHASER MEANS, FOR PURPOSES OF
 THIS SUBDIVISION, SUBDIVISION SIXTEEN OF SECTION ELEVEN  HUNDRED  FORTY-
 TWO,  AND  SUBDIVISION  (I) OF SECTION ELEVEN HUNDRED FORTY-FIVE OF THIS
 PART, THE PURCHASER'S BILLING ADDRESS OR, IF  UNKNOWN,  THE  PURCHASER'S

 S. 7509--A                         47                         A. 9509--A
 
 SHIPPING  ADDRESS. IF NO BILLING OR SHIPPING ADDRESS IS KNOWN, THIS TERM
 SHALL MEAN THE PURCHASER'S LAST KNOWN E-MAIL ADDRESS.
   (2) THE FOLLOWING REQUIREMENTS APPLY TO A NON-COLLECTING SELLER:
   (A)  A  NON-COLLECTING SELLER'S RECORDS SHALL BE MADE AVAILABLE TO THE
 COMMISSIONER UPON REQUEST. THESE RECORDS  SHALL  INCLUDE,  BUT  ARE  NOT
 LIMITED  TO,  EACH  NEW  YORK PURCHASER'S NAME AND LAST KNOWN ADDRESS AS
 DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH ONE OF  THIS  SUBDIVISION,  AND
 THE  TOTAL OF THE NON-COLLECTING SELLER'S RECEIPTS FROM THE PURCHASES OF
 THE NEW YORK PURCHASER.
   (B) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE  OF  THIS  SUBDIVI-
 SION,  A  NON-COLLECTING  SELLER SHALL FILE AN ANNUAL INFORMATION RETURN
 WITH THE COMMISSIONER. SUCH RETURN SHALL INCLUDE THE TOTAL OF  THE  NON-
 COLLECTING SELLER'S RECEIPTS FROM PURCHASES OF TANGIBLE PERSONAL PROPER-
 TY  THAT WAS DELIVERED TO A LOCATION IN THIS STATE FOR THE CALENDAR YEAR
 COVERED BY THE RETURN, TOGETHER WITH SUCH OTHER INFORMATION THE  COMMIS-
 SIONER  MAY PRESCRIBE.   SUCH RETURN SHALL BE FILED ON OR BEFORE JANUARY
 THIRTY-FIRST OF EACH YEAR AND SHALL COVER THE PRIOR CALENDAR YEAR,  WITH
 THE  FIRST  SUCH RETURN DUE ON JANUARY THIRTY-FIRST, TWO THOUSAND TWENTY
 FOR THE CALENDAR YEAR TWO THOUSAND NINETEEN.
   (C) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE  OF  THIS  SUBDIVI-
 SION,  A  NON-COLLECTING  SELLER  SHALL  PROVIDE  AN ANNUAL STATEMENT OF
 PURCHASES TO EACH NEW YORK PURCHASER FOR PURCHASES OF TANGIBLE  PERSONAL
 PROPERTY  DELIVERED  TO A LOCATION IN THIS STATE FROM SUCH SELLER DURING
 THE CALENDAR YEAR COVERED BY THE STATEMENT. SUCH ANNUAL STATEMENT  SHALL
 INCLUDE:  (I) A STATEMENT THAT SALES OR USE TAX WAS NOT COLLECTED ON THE
 PURCHASER'S TRANSACTIONS  IN  THE  PRIOR  CALENDAR  YEAR  AND  THAT  THE
 PURCHASER  MAY BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE COMMISSION-
 ER; (II) A LIST OF TRANSACTIONS ENTERED INTO DURING THE  PRIOR  CALENDAR
 YEAR  BY SUCH PURCHASER FOR DELIVERY TO A LOCATION INTO THIS STATE SHOW-
 ING, THE DATE OF EACH PURCHASE,  A  GENERAL  DESCRIPTION  OF  EACH  ITEM
 PURCHASED,  AND THE AMOUNT PAID FOR EACH ITEM, INCLUDING ANY SHIPPING OR
 DELIVERY CHARGES; (III) INSTRUCTIONS FOR OBTAINING  ADDITIONAL  INFORMA-
 TION  REGARDING  WHETHER  AND  HOW  TO REMIT THE SALES OR USE TAX TO THE
 COMMISSIONER; AND (IV) A STATEMENT THAT SUCH SELLERS MAY BE REQUIRED  TO
 ANNUALLY  REPORT THE AGGREGATE DOLLAR VALUE OF THE PURCHASER'S PURCHASES
 TO THE COMMISSIONER. SUCH STATEMENT SHALL  BE  SENT  TO  EACH  NEW  YORK
 PURCHASER  ON  OR  BEFORE JANUARY THIRTY-FIRST OF EACH YEAR, STARTING IN
 THE YEAR TWO THOUSAND TWENTY, COVERING SALES MADE IN THE PRIOR  CALENDAR
 YEAR.  SUCH  STATEMENT  SHALL BE SENT BY MAIL IN AN ENVELOPE BEARING THE
 STATEMENT "IMPORTANT TAX INFORMATION" TO THE NEW YORK  PURCHASER'S  LAST
 KNOWN  ADDRESS  AS  DEFINED BY SUBPARAGRAPH (D) OF PARAGRAPH ONE OF THIS
 SUBDIVISION, UNLESS THE PURCHASER'S LAST  KNOWN  ADDRESS  IS  AN  E-MAIL
 ADDRESS,  IN  WHICH  CASE  THE  STATEMENT  IS  TO BE SENT BY E-MAIL, THE
 SUBJECT LINE OF WHICH SHALL STATE "IMPORTANT TAX INFORMATION".
   (D) EXCEPT AS PROVIDED IN PARAGRAPHS FOUR AND FIVE  OF  THIS  SUBDIVI-
 SION,  A NON-COLLECTING SELLER SHALL PROMINENTLY DISPLAY A NOTICE ON ALL
 ORDER FORMS, AND UPON EACH SALES RECEIPT  OR  OTHER  MEMORANDUM  OF  THE
 PRICE,  WHETHER ELECTRONIC OR ON PAPER, PROVIDED TO A NEW YORK PURCHASER
 MAKING A PURCHASE OF TANGIBLE PERSONAL PROPERTY TO  BE  DELIVERED  TO  A
 LOCATION  IN THIS STATE, INCLUDING ANY SCREEN THAT SUMMARIZES THE TRANS-
 ACTION PRIOR TO THE COMPLETION OF THE SALE. SUCH NOTICE  SHALL  INDICATE
 THAT  NEITHER  NEW  YORK  STATE  AND  LOCAL  SALES  NOR USE TAX IS BEING
 COLLECTED OR REMITTED UPON THE TRANSACTION, AND THAT THE  PURCHASER  MAY
 BE REQUIRED TO REMIT SUCH TAX DIRECTLY TO THE COMMISSIONER.
   (3)  A  NON-COLLECTING  SELLER  SHALL  KEEP RECORDS OF THE INFORMATION
 DESCRIBED IN SUBPARAGRAPHS (A), (B) AND (C) OF  PARAGRAPH  TWO  OF  THIS

 S. 7509--A                         48                         A. 9509--A
 
 SUBDIVISION,  ALONG  WITH PROOF THAT IT HAS PROVIDED PURCHASERS WITH ANY
 PER-PURCHASE NOTICES OR ANNUAL STATEMENTS  OF  PURCHASES  REQUIRED.  THE
 NON-COLLECTING  SELLER  SHALL  KEEP SUCH RECORDS FOR SUCH PERIODS AND IN
 SUCH  MANNER  AS  PRESCRIBED FOR RECORDS REQUIRED TO BE MAINTAINED UNDER
 SUBDIVISIONS (A) AND (G) OF SECTION ELEVEN HUNDRED THIRTY-FIVE  OF  THIS
 PART,  OR  AS  THE COMMISSIONER MAY OTHERWISE REQUIRE BY REGULATION. THE
 NON-COLLECTING SELLER SHALL MAKE THOSE RECORDS AVAILABLE FOR  INSPECTION
 AND EXAMINATION AT ANY TIME UPON DEMAND BY THE COMMISSIONER.
   (4)  THE  REQUIREMENTS  IN SUBPARAGRAPHS (B), (C) AND (D) OF PARAGRAPH
 TWO OF THIS SUBDIVISION DO NOT APPLY TO A NON-COLLECTING SELLER FOR  ANY
 CALENDAR YEAR IN WHICH THE NON-COLLECTING SELLER'S RECEIPTS FROM ALL NEW
 YORK  PURCHASERS  ARE  LESS  THAN  FIVE MILLION DOLLARS DURING THE PRIOR
 CALENDAR YEAR.
   (5) THE REQUIREMENTS IN SUBPARAGRAPHS (B), (C) AND  (D)  OF  PARAGRAPH
 TWO  OF  THIS  SUBDIVISION  DO  NOT  APPLY TO A NON-COLLECTING SELLER IN
 REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY SUBJECT TO TAX
 UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE IF,
 THE NON-COLLECTING SELLER CAN SHOW THAT SUCH SALE  WAS  FACILITATED  BY:
 (A)  A  MARKETPLACE  PROVIDER  FROM  WHOM SUCH NON-COLLECTING SELLER HAS
 RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE OF COLLECTION AS
 DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (L) OF SECTION ELEVEN  HUNDRED
 THIRTY-TWO  OF  THIS  PART; OR (B) A NON-COLLECTING MARKETPLACE PROVIDER
 WHO FULFILLED THE REQUIREMENTS OF SUBPARAGRAPHS  (B),  (C)  AND  (D)  OF
 PARAGRAPH TWO OF THIS SUBDIVISION ON ITS BEHALF.
   (B)  (1)  A  NON-COLLECTING  MARKETPLACE  PROVIDER  SHALL  PERFORM THE
 REQUIREMENTS IN PARAGRAPH TWO OF SUBDIVISION  (A)  OF  THIS  SECTION  ON
 BEHALF  OF A NON-COLLECTING SELLER FOR ALL SALES IT FACILITATES FOR SUCH
 NON-COLLECTING SELLER.
   (2) NON-COLLECTING MARKETPLACE PROVIDERS SHALL ALSO PROVIDE NOTICE  TO
 ALL  NON-COLLECTING  SELLERS  FOR WHOM THEY FACILITATE SALES OF TANGIBLE
 PERSONAL PROPERTY THAT IS DELIVERED TO A LOCATION IN  THIS  STATE,  SUCH
 NOTICE SHALL INCLUDE THE FOLLOWING INFORMATION:
   (A)  SUCH SELLERS MAY BE REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY
 UNDER SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS PART  AND  COLLECT  THE
 TAXES  IMPOSED  BY THIS ARTICLE AND PURSUANT TO THE AUTHORITY OF ARTICLE
 TWENTY-NINE OF THIS CHAPTER, OR, WHERE SUCH SELLERS ARE NOT REQUIRED  TO
 OBTAIN  A CERTIFICATE AND COLLECT TAX, THAT SUCH SELLERS ARE REQUIRED TO
 COMPLY WITH THE REQUIREMENTS OF THIS PARAGRAPH;
   (B) THE NON-COLLECTING MARKETPLACE PROVIDER WILL PROVIDE EACH SELLER'S
 NAME, ADDRESS AND AGGREGATE AMOUNT OF SALES DELIVERED TO A  LOCATION  IN
 THIS STATE TO THE COMMISSIONER UPON REQUEST; AND
   (C)  THE NON-COLLECTING MARKETPLACE PROVIDER IS REPORTING THE INFORMA-
 TION AND SENDING THE NOTICES REQUIRED BY SUBPARAGRAPHS (B), (C) AND  (D)
 OF  PARAGRAPH  TWO  OF  SUBDIVISION (A) OF THIS SECTION ON BEHALF OF THE
 NON-COLLECTING SELLER FOR SUCH SALE IF IT WAS FACILITATED BY  SUCH  NON-
 COLLECTING MARKETPLACE PROVIDER.
   (C)  THE COMMISSIONER MAY, IN THEIR DISCRETION, MODIFY, WITHOUT ADDING
 TO, THE INFORMATION OTHERWISE REQUIRED TO BE INCLUDED IN THE INFORMATION
 RETURN, ANNUAL STATEMENT OF PURCHASES, OR PER-PURCHASE  NOTICE  REQUIRED
 BY  THIS  SUBDIVISION  IF  OTHER  STATES IMPOSE SIMILAR REQUIREMENTS, IN
 ORDER TO FACILITATE THE COMPLIANCE OF NON-COLLECTING SELLERS.
   § 8. Subdivision (i) of section 1145 of  the  tax  law,  as  added  by
 section 2 of subpart G of part V-1 of chapter 57 of the laws of 2009, is
 amended to read as follows:
   (i)(1)  Every person required to file an information return by SECTION
 ELEVEN HUNDRED  THIRTY-FIVE-A  OR  subdivision  (i)  of  section  eleven

 S. 7509--A                         49                         A. 9509--A
 
 hundred  thirty-six  of  this  part,  OR  AN  ANNUAL STATEMENT OR NOTICE
 REQUIRED BY SECTION ELEVEN HUNDRED THIRTY-FIVE-A OF THIS PART who  [(A)]
 fails  to  provide  any of the information required [by paragraph one or
 two of subdivision (i) of section eleven hundred thirty-six of this part
 for a vendor, operator, or recipient] TO BE PROVIDED IN SUCH INFORMATION
 RETURN  OR NOTICE, OR WHO FAILS TO PERFORM THE REQUIREMENTS OF PARAGRAPH
 TWO OF SUBDIVISION (B) OF SECTION ELEVEN HUNDRED THIRTY-FIVE-A  OF  THIS
 PART,  or  who  fails  to  include any such information that is true and
 correct [(whether or not such a report is filed) for a vendor, operator,
 or recipient, or (B) fails to provide the information required by  para-
 graph  four  of  subdivision (i) of section eleven hundred thirty-six of
 this part to a vendor, operator, or  recipient  specified  in  paragraph
 four  of  subdivision  (i)  of section eleven hundred thirty-six of this
 part], will, in addition to any other penalty provided in  this  article
 or  otherwise  imposed  by  law, be subject to a penalty of five hundred
 dollars for ten or fewer failures, and up  to  fifty  dollars  for  each
 additional failure.
   (2)  Every  person  failing  to file an information return required by
 SECTION ELEVEN HUNDRED THIRTY-FIVE-A OR subdivision (i) of section elev-
 en hundred thirty-six OF THIS PART OR AN ANNUAL STATEMENT OR  NOTICE  BY
 SECTION  ELEVEN  HUNDRED  THIRTY-FIVE-A  of  this  part  within the time
 required [by subdivision (i) of section  eleven  hundred  thirty-six  of
 this  part], will, in addition to any other penalty provided for in this
 article or otherwise imposed by law, be  subject  to  a  penalty  in  an
 amount  not  to  exceed  two  thousand  dollars  for  each such failure,
 provided that the minimum penalty under this paragraph is  five  hundred
 dollars.
   (3)  In  no  event  will  the penalty imposed by paragraph one of this
 subdivision, or the aggregate of the penalties imposed under  paragraphs
 one  and  two  of  this subdivision, exceed ten thousand dollars for any
 annual filing period [as described by paragraph three of subdivision (i)
 of section eleven hundred thirty-six of this part].
   (4) If the commissioner determines that any of the failures  that  are
 subject to penalty under this subdivision was entirely due to reasonable
 cause  and  not  due to willful neglect, the commissioner must remit the
 penalty imposed under this subdivision. These penalties will  be  deter-
 mined,  assessed,  collected, paid, disposed of and enforced in the same
 manner as taxes imposed by this article and all the provisions  of  this
 article  relating  thereto  will be deemed also to refer to these penal-
 ties.
   § 9. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section, or part of this act shall be adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its  operation to the clause, sentence, paragraph, subdivision, section,
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the legislature that this act would  have  been  enacted  even  if  such
 invalid provision had not been included herein.
   §  10. This act shall take effect immediately and shall apply to sales
 made on or after September 1, 2018; provided, however, that the require-
 ments in subparagraphs (B) and (C) of paragraph 2 of subdivision (a)  of
 section  1135-a as added by section two of this act shall apply to sales
 made on or after January 1, 2019.
 
                                  PART BB

 S. 7509--A                         50                         A. 9509--A
 
   Section 1. Subdivision 2 of section 470 of the tax law, as amended  by
 section  15  of part D of chapter 134 of the laws of 2010, is amended to
 read as follows:
   2. "Tobacco products." Any cigar, including [a] little [cigar] CIGARS,
 VAPOR PRODUCTS, or tobacco, other than cigarettes, intended for consump-
 tion by smoking, chewing, INHALING VAPORS or as snuff.
   § 2. Subdivision 12 of section 470 of the tax law, as added by chapter
 61 of the laws of 1989, is amended to read as follows:
   12.  "Distributor."  Any  person  who imports or causes to be imported
 into this state any tobacco product (in excess of fifty cigars [or], one
 pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT) for  sale,
 or  who  manufactures  any tobacco product in this state, and any person
 within or without the state who is authorized  by  the  commissioner  of
 taxation and finance to make returns and pay the tax on tobacco products
 sold, shipped or delivered by him to any person in the state.
   § 3. Section 470 of the tax law is amended by adding a new subdivision
 20 to read as follows:
   20.  "VAPOR  PRODUCT." ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARDLESS OF
 THE PRESENCE OF NICOTINE THEREIN, THAT IS MANUFACTURED INTO  A  FINISHED
 PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR, ELECTRONIC
 CIGARILLO,  ELECTRONIC  PIPE,  VAPING  PEN,  HOOKAH PEN OR OTHER SIMILAR
 DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY PRODUCT  APPROVED  BY  THE
 UNITED  STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL DEVICE,
 OR APPROVED FOR USE  PURSUANT  TO  SECTION  THREE  THIRTY-THREE  HUNDRED
 SIXTY-TWO OF THE PUBLIC HEALTH LAW.
   §  4.  Paragraph (a) of subdivision 1 of section 471-b of the tax law,
 as amended by section 18 of part D of chapter 134 of the laws  of  2010,
 is amended to read as follows:
   (a) Such tax on tobacco products other than snuff [and], little cigars
 AND  VAPOR  PRODUCTS shall be at the rate of seventy-five percent of the
 wholesale price, and is intended to be imposed only once upon  the  sale
 of  any tobacco products other than snuff [and], little cigars AND VAPOR
 PRODUCTS.
   § 5. Subdivision 1 of section 471-b of  the  tax  law  is  amended  by
 adding a new paragraph (d) to read as follows:
   (D)  SUCH  TAX  ON  VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER
 FLUID MILLILITER, OR PART THEREOF, OF THE VAPOR  PRODUCT.  ALL  INVOICES
 FOR VAPOR PRODUCTS ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE
 AMOUNT OF VAPOR PRODUCT IN MILLILITERS.
   §  6.  Subdivision  (a) of section 471-c of the tax law, as amended by
 section 2 of part I-1 of chapter 57 of the laws of 2009, paragraphs  (i)
 and  (ii)  as  amended  by  section  20  and paragraph (iii) as added by
 section 21 of part D of chapter 134 of the laws of 2010, is  amended  to
 read as follows:
   (a)  There  is  hereby  imposed and shall be paid a tax on all tobacco
 products used in the state by any person, except that no such tax  shall
 be imposed (1) if the tax provided in section four hundred seventy-one-b
 of this article is paid, or (2) on the use of tobacco products which are
 exempt  from  the  tax imposed by said section, or (3) on the use of two
 hundred fifty cigars or less, [or] five pounds or less of tobacco  other
 than roll-your-own tobacco, [or] thirty-six ounces or less of roll-your-
 own tobacco OR FIVE HUNDRED MILLILITERS OR LESS OF VAPOR PRODUCT brought
 into the state on, or in the possession of, any person.
   (i) Such tax on tobacco products other than snuff [and], little cigars
 AND  VAPOR  PRODUCTS shall be at the rate of seventy-five percent of the
 wholesale price.

 S. 7509--A                         51                         A. 9509--A
 
   (ii) Such tax on snuff shall be at the rate of two dollars  per  ounce
 and  a  proportionate rate on any fractional parts of an ounce, provided
 that cans or packages of snuff with a net weight of less than one  ounce
 shall  be  taxed at the equivalent rate of cans or packages weighing one
 ounce.  Such  tax shall be computed based on the net weight as listed by
 the manufacturer.
   (iii) Such tax on little cigars shall be at the same rate  imposed  on
 cigarettes  under  this  article and is intended to be imposed only once
 upon the sale of any little cigars.
   (IV) SUCH TAX ON VAPOR PRODUCTS SHALL BE AT A RATE OF  TEN  CENTS  PER
 FLUID  MILLILITER  OF THE VAPOR PRODUCT. ALL INVOICES FOR VAPOR PRODUCTS
 ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE  AMOUNT  OF  VAPOR
 PRODUCT IN MILLILITERS.
   §  7. Subdivision 2 of section 474 of the tax law, as amended by chap-
 ter 552 of the laws of 2008, is amended to read as follows:
   2. Every person who shall possess or transport more than  two  hundred
 fifty  cigars,  [or]  more  than five pounds of tobacco other than roll-
 your-own tobacco, [or] more  than  thirty-six  ounces  of  roll-your-own
 tobacco  OR MORE THAN FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT upon the
 public highways, roads or streets of the state,  shall  be  required  to
 have  in  his  actual  possession  invoices or delivery tickets for such
 tobacco products. Such invoices or delivery tickets shall show the  name
 and  address  of  the  consignor  or seller, the name and address of the
 consignee or purchaser, the quantity and brands of the tobacco  products
 transported,  and  the  name  and address of the person who has or shall
 assume the payment of the tax and the wholesale price or the tax paid or
 payable. The absence of such invoices or delivery tickets shall be prima
 facie evidence that such person is a dealer in tobacco products in  this
 state and subject to the requirements of this article.
   §  8. Subdivision 3 of section 474 of the tax law, as added by chapter
 61 of the laws of 1989, is amended to read as follows:
   3. Every dealer or distributor or employee thereof,  or  other  person
 acting on behalf of a dealer or distributor, who shall possess or trans-
 port more than fifty cigars [or], more than one pound of tobacco OR MORE
 THAN  ONE HUNDRED MILLILITERS OF VAPOR PRODUCT upon the public highways,
 roads or streets of the state, shall be required to have in  his  actual
 possession  invoices or delivery tickets for such tobacco products. Such
 invoices or delivery tickets shall show the  name  and  address  of  the
 consignor or seller, the name and address of the consignee or purchaser,
 the  quantity  and  brands  of the tobacco products transported, and the
 name and address of the person who has or shall assume  the  payment  of
 the  tax and the wholesale price or the tax paid or payable. The absence
 of such invoices or delivery tickets shall be prima facie evidence  that
 the  tax  imposed  by this article on tobacco products has not been paid
 and is due and owing.
   § 9. Subparagraph (i) of paragraph (b) of subdivision 1 of section 481
 of the tax law, as amended by section 1 of part O of chapter 59  of  the
 laws of 2013, is amended to read as follows:
   (i)  In  addition  to  any  other penalty imposed by this article, the
 commissioner may (A) impose a penalty  of  not  more  than  six  hundred
 dollars  for each two hundred cigarettes, or fraction thereof, in excess
 of one thousand cigarettes in unstamped or unlawfully  stamped  packages
 in  the  possession  or  under the control of any person or (B) impose a
 penalty of not more than two hundred  dollars  for  each  ten  unaffixed
 false,   altered  or  counterfeit  cigarette  tax  stamps,  imprints  or
 impressions, or fraction thereof, in the possession or under the control

 S. 7509--A                         52                         A. 9509--A
 
 of any person. In addition, the commissioner may impose a penalty of not
 more than seventy-five dollars for each fifty cigars [or] one  pound  of
 tobacco[,]  OR  ONE  HUNDRED  MILLILITERS  OF VAPOR PRODUCT, or fraction
 thereof,  in  excess  of  two  hundred fifty cigars [or], five pounds of
 tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT in  the  possession
 or  under  the  control of any person and a penalty of not more than one
 hundred fifty dollars for each fifty cigars [or], pound  of  tobacco  OR
 ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess
 of  five  hundred  cigars  [or],  ten  pounds of tobacco OR ONE THOUSAND
 MILLILITERS OF VAPOR PRODUCT in the possession or under the  control  of
 any  person, with respect to which the tobacco products tax has not been
 paid or assumed by a distributor or tobacco products  dealer;  provided,
 however,  that  any such penalty imposed shall not exceed seven thousand
 five hundred dollars in the aggregate. The  commissioner  may  impose  a
 penalty  of  not  more  than  seventy-five dollars for each fifty cigars
 [or], one pound of tobacco OR ONE HUNDRED MILLILITERS OF VAPOR  PRODUCT,
 or fraction thereof, in excess of fifty cigars [or], one pound of tobac-
 co  OR  ONE  HUNDRED  MILLILITERS  OF VAPOR PRODUCT in the possession or
 under  the  control  of  any  tobacco  products  dealer  or  distributor
 appointed  by  the  commissioner,  and  a  penalty  of not more than one
 hundred fifty dollars for each fifty cigars [or], pound of  tobacco,  OR
 ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess
 of two hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED
 MILLILITERS  OF  VAPOR PRODUCT in the possession or under the control of
 any such dealer or  distributor,  with  respect  to  which  the  tobacco
 products  tax has not been paid or assumed by a distributor or a tobacco
 products dealer; provided, however, that any such penalty imposed  shall
 not exceed fifteen thousand dollars in the aggregate.
   §  10.  Items  (I)  and  (II)  of clause (B) and items (I) and (II) of
 clause (C) of subparagraph (ii) of paragraph (b)  of  subdivision  1  of
 section 481 of the tax law, as added by chapter 262 of the laws of 2000,
 are amended to read as follows:
   (I)  not  less  than twenty-five dollars but not more than one hundred
 dollars for each fifty cigars [or], one pound of tobacco OR ONE  HUNDRED
 MILLILITERS  OF  VAPOR  PRODUCT,  or  fraction thereof, in excess of two
 hundred fifty cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLI-
 LITERS OF VAPOR PRODUCT knowingly in the possession or  knowingly  under
 the  control  of  any person, with respect to which the tobacco products
 tax has not been paid or assumed by a distributor  or  tobacco  products
 dealer;  and  (II)  not  less  than  fifty dollars but not more than two
 hundred dollars for each fifty cigars [or],  pound  of  tobacco  OR  ONE
 HUNDRED  MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of
 five hundred cigars [or], ten pounds of tobacco OR ONE THOUSAND MILLILI-
 TERS OF VAPOR PRODUCT knowingly in the possession or knowingly under the
 control of any person, with respect to which the  tobacco  products  tax
 has  not been paid or assumed by a distributor or tobacco products deal-
 er; provided, however, that any such penalty imposed under  this  clause
 shall not exceed ten thousand dollars in the aggregate.
   (I)  not  less  than twenty-five dollars but not more than one hundred
 dollars for each fifty cigars [or], one pound of tobacco OR ONE  HUNDRED
 MILLILITERS  OF  VAPOR  PRODUCT, or fraction thereof, in excess of fifty
 cigars [or], one pound of tobacco OR ONE HUNDRED  MILLILITERS  OF  VAPOR
 PRODUCT  knowingly  in  the possession or knowingly under the control of
 any person, with respect to which the tobacco products tax has not  been
 paid  or  assumed  by a distributor or tobacco products dealer; and (II)
 not less than fifty dollars but not more than two  hundred  dollars  for

 S. 7509--A                         53                         A. 9509--A
 
 each  fifty  cigars [or], pound of tobacco OR ONE HUNDRED MILLILITERS OF
 VAPOR PRODUCT, or fraction thereof,  in  excess  of  two  hundred  fifty
 cigars [or], five pounds of tobacco OR FIVE HUNDRED MILLILITERS OF VAPOR
 PRODUCT  knowingly  in  the possession or knowingly under the control of
 any person, with respect to which the tobacco products tax has not  been
 paid or assumed by a distributor or a tobacco products dealer; provided,
 however,  that  any  such  penalty  imposed  under this clause shall not
 exceed twenty thousand dollars in the aggregate.
   § 11. Paragraph (a) of subdivision 2 of section 481 of the tax law, as
 amended by chapter 552 of the laws  of  2008,  is  amended  to  read  as
 follows:
   (a)  The  possession within this state of more than four hundred ciga-
 rettes in unstamped or unlawfully stamped packages [or], more  than  two
 hundred  fifty  cigars, [or] more than five pounds of tobacco other than
 roll-your-own tobacco, [or] more than thirty-six ounces of roll-your-own
 tobacco by any person other than an agent or distributor,  as  the  case
 may  be, OR FIVE HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT at any one
 time shall be presumptive  evidence  that  such  cigarettes  or  tobacco
 products are subject to tax as provided by this article.
   §  12.  Subdivisions  (a)  and  (h) of section 1814 of the tax law, as
 amended by section 28 of subpart I of part V-1 of chapter 57 of the laws
 of 2009, are amended to read as follows:
   (a) Any person who willfully attempts in any manner to evade or defeat
 the taxes imposed by article twenty of this chapter or  payment  thereof
 on  (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars
 or more, [or] (iii) four hundred forty pounds of tobacco or  more,  (IV)
 FORTY-FOUR  THOUSAND  MILLILITERS OF VAPOR PRODUCT OR MORE or has previ-
 ously been convicted two or more times of a violation of  paragraph  one
 of this subdivision shall be guilty of a class E felony.
   (h)  (1) Any dealer, other than a distributor appointed by the commis-
 sioner [of taxation and finance] under article twenty of  this  chapter,
 who  shall  knowingly  transport  or  have in his custody, possession or
 under his control more than ten pounds of tobacco [or], more  than  five
 hundred  cigars  OR  MORE THAN ONE THOUSAND MILLILITERS OF VAPOR PRODUCT
 upon which the taxes imposed by article twenty of this chapter have  not
 been  assumed or paid by a distributor appointed by the commissioner [of
 taxation and finance] under article twenty of  this  chapter,  or  other
 person  treated as a distributor pursuant to section four hundred seven-
 ty-one-d of this chapter, shall be guilty of a misdemeanor punishable by
 a fine of not more than five thousand dollars or by a term of  imprison-
 ment not to exceed thirty days.
   (2)  Any person, other than a dealer or a distributor appointed by the
 commissioner under article twenty of this chapter, who  shall  knowingly
 transport  or  have in his custody, possession or under his control more
 than fifteen pounds of tobacco  [or],  more  than  seven  hundred  fifty
 cigars OR MORE THAN FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT
 upon  which the taxes imposed by article twenty of this chapter have not
 been assumed or paid by a  distributor  appointed  by  the  commissioner
 under  article  twenty  of  this  chapter,  or other person treated as a
 distributor pursuant to section four hundred seventy-one-d of this chap-
 ter shall be guilty of a misdemeanor punishable by a fine  of  not  more
 than  five  thousand  dollars or by a term of imprisonment not to exceed
 thirty days.
   (3) Any person, other than a distributor appointed by the commissioner
 under article twenty of this chapter, who shall knowingly  transport  or
 have in his custody, possession or under his control twenty-five hundred

 S. 7509--A                         54                         A. 9509--A
 
 or  more  cigars  [or],fifty  or more pounds of tobacco OR FIVE THOUSAND
 MILLILITERS OR MORE OF VAPOR PRODUCT upon which  the  taxes  imposed  by
 article  twenty  of  this  chapter  have  not  been assumed or paid by a
 distributor  appointed  by the commissioner under article twenty of this
 chapter, or other person treated as a distributor  pursuant  to  section
 four  hundred  seventy-one-d of this chapter shall be guilty of a misde-
 meanor. Provided further, that any person who has twice  been  convicted
 under  this  subdivision  shall  be  guilty  of a class E felony for any
 subsequent violation of this section, regardless of the amount of tobac-
 co products involved in such violation.
   (4) For purposes of this  subdivision,  such  person  shall  knowingly
 transport or have in his custody, possession or under his control tobac-
 co  [or],  cigars  OR  VAPOR  PRODUCTS on which such taxes have not been
 assumed paid by a distributor appointed by the commissioner  where  such
 person  has  knowledge of the requirement of the tax on tobacco products
 and, where to his knowledge, such taxes have not been assumed or paid on
 such tobacco products by a distributor appointed by the commissioner  of
 taxation and finance.
   §  13.  Subdivisions  (a) and (b) of section 1814-a of the tax law, as
 added by chapter 61 of the laws of 1989, are amended to read as follows:
   (a) Any person who, while not appointed as a  distributor  of  tobacco
 products  pursuant  to the provisions of article twenty of this chapter,
 imports or causes to be imported into the state more than  fifty  cigars
 [or],  more than one pound of tobacco[,] OR MORE THAN ONE HUNDRED MILLI-
 LITERS OF VAPOR PRODUCT for sale within the state, or produces, manufac-
 tures or compounds tobacco products within the state shall be guilty  of
 a  misdemeanor  punishable  by  a  fine  of  not more than five thousand
 dollars or by a term of imprisonment not to exceed  thirty  days.    If,
 within  any  ninety  day  period,  one  thousand or more cigars [or five
 hundred], TWENTY pounds or more of tobacco OR TWO  THOUSAND  MILLILITERS
 OR  MORE OF VAPOR PRODUCT are imported or caused to be imported into the
 state for sale  within  the  state  or  are  produced,  manufactured  or
 compounded  within  the  state  by  any  person while not appointed as a
 distributor of tobacco products, such person shall be guilty of a misde-
 meanor. Provided further, that any person who has twice  been  convicted
 under  this  section  shall be guilty of a class E felony for any subse-
 quent violation of this section, regardless of  the  amount  of  tobacco
 products involved in such violation.
   (b)  For  purposes  of  this section, the possession or transportation
 within this state by any person, other than a tobacco products distribu-
 tor appointed by the commissioner of taxation and finance,  at  any  one
 time  of seven hundred fifty or more cigars [or], fifteen pounds or more
 of tobacco OR FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR PRODUCT shall
 be presumptive evidence that such  tobacco  products  are  possessed  or
 transported  for  the purpose of sale and are subject to the tax imposed
 by section four hundred seventy-one-b of this chapter. With  respect  to
 such  possession  or transportation, any provisions of article twenty of
 this chapter providing for a time period during which the tax imposed by
 such article may be paid shall not apply.
   § 14. Subdivision (a) of section 1846-a of the tax law, as amended  by
 chapter 556 of the laws of 2011, is amended to read as follows:
   (a) Whenever a police officer designated in section 1.20 of the crimi-
 nal  procedure  law or a peace officer designated in subdivision four of
 section 2.10 of such law, acting pursuant to his special  duties,  shall
 discover any tobacco products in excess of five hundred cigars [or], ten
 pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT which are

 S. 7509--A                         55                         A. 9509--A
 
 being imported for sale in the state where the person importing or caus-
 ing  such  tobacco  products  to be imported has not been appointed as a
 distributor pursuant to section four hundred seventy-two of  this  chap-
 ter,  such  police  officer  or  peace  officer is hereby authorized and
 empowered forthwith  to  seize  and  take  possession  of  such  tobacco
 products.  Such  tobacco  products  seized  by a police officer or peace
 officer shall be turned over to the commissioner.  Such  seized  tobacco
 products shall be forfeited to the state. All tobacco products forfeited
 to  the  state  shall be destroyed or used for law enforcement purposes,
 except that tobacco products that violate, or are suspected  of  violat-
 ing,  federal  trademark  laws  or import laws shall not be used for law
 enforcement  purposes.  If  the  commissioner  determines  the   tobacco
 products  may not be used for law enforcement purposes, the commissioner
 must, within a reasonable time thereafter, upon publication in the state
 registry of a notice to such  effect  before  the  day  of  destruction,
 destroy  such forfeited tobacco products. The commissioner may, prior to
 any destruction of tobacco products,  permit  the  true  holder  of  the
 trademark  rights  in  the  tobacco  products  to inspect such forfeited
 products in order to assist in any investigation regarding such  tobacco
 products.
   §  15.  Subdivision  (b)  of  section 1847 of the tax law, as added by
 chapter 61 of the laws of 1989, is amended to read as follows:
   (b) Any peace officer designated in subdivision four of  section  2.10
 of the criminal procedure law, acting pursuant to his special duties, or
 any  police officer designated in section 1.20 of the criminal procedure
 law may seize any vehicle or  other  means  of  transportation  used  to
 import  tobacco  products  in  excess  of  five hundred cigars [or], ten
 pounds of tobacco OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT for  sale
 where  the  person  importing  or  causing  such  tobacco products to be
 imported has not been appointed a distributor pursuant to  section  four
 hundred seventy-two of this chapter, other than a vehicle or other means
 of  transportation used by any person as a common carrier in transaction
 of business as such common carrier, and such vehicle or other  means  of
 transportation  shall  be  subject  to forfeiture as hereinafter in this
 section provided.
   § 16. This act shall take effect on  the  one  hundred  eightieth  day
 after it shall have become a law, and shall apply to vapor products that
 first  become  subject to taxation under article 20 of the tax law on or
 after such date.
 
                                  PART CC

   Section 1. The tax law is amended by adding a new article 20-C to read
 as follows:
                               ARTICLE 20-C
                         OPIOID EPIDEMIC SURCHARGE
 SECTION 492. DEFINITIONS.
         493. IMPOSITION OF SURCHARGE.
         494. RETURNS TO BE SECRET.
   § 492. DEFINITIONS. WHEN USED IN THIS  ARTICLE,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "OPIOID"  SHALL MEAN AN "OPIATE" AS DEFINED BY SUBDIVISION TWENTY-
 THREE OF SECTION THIRTY-THREE HUNDRED TWO OF THE PUBLIC HEALTH LAW,  AND
 ANY  NATURAL,  SYNTHETIC, OR SEMISYNTHETIC "NARCOTIC DRUG" AS DEFINED BY
 SUBDIVISION TWENTY-TWO OF SUCH SECTION, THAT HAS AGONIST, PARTIAL  AGON-
 IST,  OR  AGONIST/ANTAGONIST MORPHINE-LIKE ACTIVITIES OR EFFECTS SIMILAR

 S. 7509--A                         56                         A. 9509--A
 
 TO NATURAL OPIUM ALKALOIDS AND ANY DERIVATIVE, CONGENER, OR  COMBINATION
 THEREOF,  LISTED  IN SCHEDULES II-IV OF SECTION THIRTY-THREE HUNDRED SIX
 OF THE PUBLIC HEALTH LAW.
   2.  "UNIT"  SHALL  MEAN  THE  DOSAGE FORM OF AN OPIOID-CONTAINING DRUG
 INCLUDING, BUT NOT LIMITED TO, TABLETS, CAPSULES, SUPPOSITORIES, TOPICAL
 (TRANSDERMAL), BUCCAL OR ANY  OTHER  DOSAGE  FORM,  SUCH  AS  WEIGHT  OR
 VOLUME.
   3. "UNIT STRENGTH" SHALL MEAN THE AMOUNT OF OPIOID IN A UNIT, AS MEAS-
 URED BY WEIGHT, VOLUME, CONCENTRATION OR OTHER METRIC.
   4.  "MORPHINE  MILLIGRAM EQUIVALENT CONVERSION FACTOR" SHALL MEAN THAT
 REFERENCE STANDARD OF A PARTICULAR OPIOID AS IT RELATES  IN  POTENCY  TO
 MORPHINE AS DETERMINED BY THE COMMISSIONER OF HEALTH.
   5. "MORPHINE MILLIGRAM EQUIVALENT" SHALL MEAN A UNIT MULTIPLIED BY ITS
 UNIT STRENGTH MULTIPLIED BY THE MORPHINE MILLIGRAM EQUIVALENT CONVERSION
 FACTOR OF THE OPIOID CONTAINED IN SUCH UNIT.
   6. "ESTABLISHMENT" SHALL MEAN ANY PERSON, FIRM, CORPORATION OR ASSOCI-
 ATION  REQUIRED  TO BE REGISTERED WITH THE EDUCATION DEPARTMENT PURSUANT
 TO SECTION SIXTY-EIGHT HUNDRED  EIGHT  OR  SECTION  SIXTY-EIGHT  HUNDRED
 EIGHT-B  OF  THE EDUCATION LAW, AS WELL AS ANY PERSON, FIRM, CORPORATION
 OR ASSOCIATION THAT WOULD BE REQUIRED TO BE REGISTERED WITH  THE  EDUCA-
 TION DEPARTMENT PURSUANT TO SUCH SECTION SIXTY-EIGHT HUNDRED EIGHT-B BUT
 FOR THE EXCEPTION IN SUBDIVISION TWO OF SUCH SECTION.
   7.  "INVOICE"  SHALL MEAN THE INVOICE, SALES SLIP, MEMORANDUM OF SALE,
 OR OTHER DOCUMENT EVIDENCING A SALE OF AN OPIOID.
   § 493. IMPOSITION OF SURCHARGE. 1. THERE IS HEREBY IMPOSED A SURCHARGE
 ON THE SALE OF ANY OPIOID OF TWO CENTS PER MORPHINE MILLIGRAM EQUIVALENT
 SOLD.  SUCH SURCHARGE SHALL BE IMPOSED ON THE FIRST SALE OF SUCH  OPIOID
 IN  THE STATE, EXCEPT THAT SUCH SURCHARGE SHALL NOT APPLY WHEN SUCH SALE
 IS TO ANY PROGRAM OPERATED PURSUANT TO ARTICLE THIRTY-TWO OF THE  MENTAL
 HYGIENE  LAW.   THIS SURCHARGE SHALL BE CHARGED AGAINST, AND BE PAID BY,
 THE ESTABLISHMENT MAKING THE FIRST SALE OF SUCH OPIOID IN THE STATE, AND
 SHALL NOT BE ADDED AS A SEPARATE CHARGE OR  LINE  ITEM  ON  ANY  INVOICE
 GIVEN TO THE CUSTOMER OR OTHERWISE PASSED DOWN TO THE CUSTOMER. HOWEVER,
 AN  ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE SHALL
 CLEARLY NOTE ON THE INVOICE FOR THE FIRST SALE OF AN OPIOID IN THE STATE
 ITS LIABILITY FOR THE SURCHARGE,  ALONG  WITH  ITS  NAME,  ADDRESS,  AND
 TAXPAYER  IDENTIFICATION  NUMBER.  ALL  SALES OF AN OPIOID IN THIS STATE
 SHALL BE PRESUMED TO BE THE FIRST  SALE  OF  SUCH,  AND  SHALL  ALSO  BE
 PRESUMED  TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE, UNLESS
 THE CONTRARY IS ESTABLISHED BY THE SELLER.
   2. EVERY ESTABLISHMENT LIABLE FOR THE SURCHARGE IMPOSED BY THIS  ARTI-
 CLE  SHALL  FILE  WITH THE COMMISSIONER A RETURN, ON FORMS PRESCRIBED BY
 THE COMMISSIONER, INDICATING THE TOTAL MORPHINE MILLIGRAM EQUIVALENT  OF
 OPIOIDS IT SOLD IN THE STATE, THE TOTAL MORPHINE MILLIGRAM EQUIVALENT OF
 SUCH  OPIOIDS THAT ARE SUBJECT TO THE SURCHARGE IMPOSED BY THIS ARTICLE,
 THE AMOUNT OF SURCHARGE DUE THEREON, AND SUCH FURTHER INFORMATION AS THE
 COMMISSIONER MAY REQUIRE. SUCH RETURNS SHALL BE DUE  ON  OR  BEFORE  THE
 TWENTIETH  DAY  OF  EACH  MONTH, AND SHALL COVER ALL OPIOID SALES IN THE
 STATE MADE IN THE MONTH PRIOR, EXCEPT THAT THE FIRST RETURN REQUIRED  TO
 BE  FILED  PURSUANT  TO  THIS  SECTION SHALL BE DUE ON OR BEFORE JANUARY
 TWENTIETH, TWO THOUSAND NINETEEN AND SHALL COVER ALL OPIOID SALES OCCUR-
 RING IN THE PERIOD BETWEEN THE EFFECTIVE DATE OF THIS ARTICLE AND DECEM-
 BER THIRTY-FIRST, TWO THOUSAND EIGHTEEN.   EVERY ESTABLISHMENT  REQUIRED
 TO  FILE  A  RETURN UNDER THIS SECTION SHALL, AT THE TIME OF FILING SUCH
 RETURN, PAY TO THE COMMISSIONER THE TOTAL AMOUNT OF  SURCHARGE  DUE  FOR
 THE  PERIOD  COVERED BY SUCH RETURN.  IF A RETURN IS NOT FILED WHEN DUE,

 S. 7509--A                         57                         A. 9509--A
 
 THE SURCHARGE SHALL BE DUE ON THE DAY ON WHICH THE RETURN IS REQUIRED TO
 BE FILED. THE COMMISSIONER MAY REQUIRE THAT  THE  RETURNS  AND  PAYMENTS
 REQUIRED BY THIS ARTICLE BE FILED OR PAID ELECTRONICALLY.
   3. ESTABLISHMENTS MAKING SALES OF OPIOIDS IN THIS STATE SHALL MAINTAIN
 ALL  INVOICES  PERTAINING  TO  SUCH SALES FOR SIX YEARS AFTER THE RETURN
 REPORTING SUCH SALES IS FILED WITH THE COMMISSIONER, UNLESS THE  COMMIS-
 SIONER  PROVIDES FOR A DIFFERENT RETENTION PERIOD BY RULE OR REGULATION.
 THE ESTABLISHMENT SHALL PRODUCE SUCH RECORDS UPON DEMAND BY THE  COMMIS-
 SIONER.
   4.  WHENEVER THE COMMISSIONER SHALL DETERMINE THAT ANY MONEYS RECEIVED
 UNDER THE PROVISIONS OF THIS ARTICLE WERE PAID IN ERROR, HE OR  SHE  MAY
 CAUSE  THE  SAME  TO BE REFUNDED, WITH INTEREST, 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 SURCHARGE, 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 SURCHARGE 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 THAT THE COMMIS-
 SIONER SHALL DETERMINE WERE PAID IN ERROR, MAY BE REFUNDED OUT OF  FUNDS
 IN  THE  CUSTODY  OF  THE  COMPTROLLER  TO THE CREDIT OF SUCH SURCHARGES
 PROVIDED AN APPLICATION THEREFOR IS FILED WITH THE  COMMISSIONER  WITHIN
 TWO YEARS FROM THE TIME THE ERRONEOUS PAYMENT WAS MADE.
   5.  THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY
 TO THE SURCHARGE IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE
 SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCOR-
 PORATED IN FULL INTO THIS SECTION AND  HAD  EXPRESSLY  REFERRED  TO  THE
 SURCHARGE  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.
   6. (A) THE SURCHARGES, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE
 AND  COLLECTED  OR RECEIVED BY THE COMMISSIONER SHALL BE DEPOSITED DAILY
 WITH SUCH RESPONSIBLE BANKS, BANKING HOUSES OR TRUST COMPANIES,  AS  MAY
 BE  DESIGNATED  BY  THE  STATE  COMPTROLLER, TO THE CREDIT OF THE OPIOID
 PREVENTION, TREATMENT  AND  RECOVERY  ACCOUNT  ESTABLISHED  PURSUANT  TO
 SECTION  NINETY-SEVEN-AAAAA  OF THE STATE FINANCE LAW. AN ACCOUNT MAY BE
 ESTABLISHED IN ONE OR MORE OF SUCH DEPOSITORIES. SUCH DEPOSITS  WILL  BE
 KEPT  SEPARATE  AND  APART FROM ALL OTHER MONEY IN THE POSSESSION OF THE
 STATE COMPTROLLER. THE STATE COMPTROLLER SHALL REQUIRE ADEQUATE SECURITY
 FROM ALL SUCH DEPOSITORIES. OF THE TOTAL REVENUE COLLECTED  OR  RECEIVED
 UNDER  THIS  ARTICLE,  THE STATE COMPTROLLER SHALL RETAIN SUCH AMOUNT AS
 THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR  REFUNDS  UNDER  THIS
 ARTICLE.  THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE
 AMOUNTS IT RECEIVES UNDER THIS ARTICLE, BEFORE DEPOSIT  INTO  THE  TRUST
 ACCOUNTS DESIGNATED BY THE STATE COMPTROLLER, A REASONABLE AMOUNT NECES-
 SARY  TO EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIM-
 BURSE THE DEPARTMENT FOR THE COSTS INCURRED TO ADMINISTER,  COLLECT  AND
 DISTRIBUTE THE SURCHARGE IMPOSED BY THIS ARTICLE.
   (B)  ON  OR BEFORE THE TWELFTH AND TWENTY-SIXTH DAY OF EACH SUCCEEDING
 MONTH, AFTER RESERVING SUCH AMOUNT FOR SUCH REFUNDS AND  DEDUCTING  SUCH
 AMOUNTS  FOR SUCH COSTS, AS PROVIDED FOR IN PARAGRAPH (A) OF THIS SUBDI-
 VISION, THE COMMISSIONER SHALL CERTIFY  TO  THE  STATE  COMPTROLLER  THE
 AMOUNT OF ALL REVENUES SO RECEIVED DURING THE PRIOR MONTH BECAUSE OF THE

 S. 7509--A                         58                         A. 9509--A
 
 SURCHARGES, INTEREST AND PENALTIES SO IMPOSED. THE AMOUNT OF REVENUES SO
 CERTIFIED SHALL BE PAID OVER BY THE FIFTEENTH AND THE FINAL BUSINESS DAY
 OF  EACH  SUCCEEDING MONTH FROM SUCH ACCOUNT INTO THE OPIOID PREVENTION,
 TREATMENT  AND  RECOVERY ACCOUNT ESTABLISHED PURSUANT TO SECTION NINETY-
 SEVEN-AAAAA OF THE STATE FINANCE LAW.
   7. THE COMMISSIONERS OF EDUCATION AND HEALTH SHALL COOPERATE WITH  THE
 COMMISSIONER IN ADMINISTERING THIS SURCHARGE, INCLUDING SHARING WITH THE
 COMMISSIONER PERTINENT INFORMATION ABOUT ESTABLISHMENTS UPON THE REQUEST
 OF THE COMMISSIONER.
   § 494. 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 AN ESTABLISHMENT 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,  THE  STATE  DEPARTMENT  OF  EDUCATION 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 PROCEEDING
 INVOLVING THE COLLECTION OF A TAX DUE UNDER THIS CHAPTER  TO  WHICH  THE
 STATE  OR  THE COMMISSIONER IS A PARTY OR A CLAIMANT OR ON BEHALF OF ANY
 PARTY TO ANY ACTION OR 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, IN ANY OF WHICH EVENTS THE  COURT
 MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT IN EVIDENCE SO MUCH OF SAID
 RETURNS OR REPORTS OR OF THE FACTS SHOWN THEREBY AS ARE PERTINENT TO THE
 ACTION  OR  PROCEEDING AND NO MORE. NOTHING HEREIN SHALL BE CONSTRUED TO
 PROHIBIT THE COMMISSIONER, IN HIS OR HER DISCRETION, FROM  ALLOWING  THE
 INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED
 UNDER  THIS  ARTICLE, OR FROM PROVIDING ANY INFORMATION CONTAINED IN ANY
 SUCH RETURN OR REPORT, BY OR TO A DULY AUTHORIZED OFFICER OR EMPLOYEE OF
 THE STATE DEPARTMENT OF HEALTH OR THE STATE DEPARTMENT OF EDUCATION; NOR
 TO PROHIBIT THE INSPECTION OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN
 OR REPORT FILED UNDER THIS ARTICLE, OR THE PROVISION OF ANY  INFORMATION
 CONTAINED  THEREIN,  BY OR TO THE ATTORNEY GENERAL OR OTHER LEGAL REPRE-
 SENTATIVES 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;  NOR  TO  PROHIBIT  THE
 COMMISSIONER  FROM  PROVIDING OR CERTIFYING TO THE DIVISION OF BUDGET OR
 THE COMPTROLLER THE TOTAL NUMBER OF RETURNS OR REPORTS FILED UNDER  THIS
 ARTICLE IN ANY REPORTING PERIOD AND THE TOTAL COLLECTIONS RECEIVED THER-
 EFROM; NOR TO PROHIBIT 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 SURCHARGE PAID BY AN ESTABLISHMENT OR OTHER
 PERSON UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO AN ESTABLISH-
 MENT,  OR  A  DULY  AUTHORIZED  REPRESENTATIVE  OF SUCH ESTABLISHMENT, A

 S. 7509--A                         59                         A. 9509--A
 
 CERTIFIED COPY OF ANY RETURN  OR  REPORT  FILED  BY  SUCH  ESTABLISHMENT
 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.
   2. (A) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
 PROVISIONS  OF  SUBDIVISION  ONE 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) A VIOLATION OF THIS ARTICLE SHALL BE  CONSIDERED  A  VIOLATION  OF
 SECRECY PROVISIONS UNDER ARTICLE THIRTY-SEVEN OF THIS CHAPTER.
   § 2. Section 1825 of the tax law, as amended by section 20 of part AAA
 of chapter 59 of the laws of 2017, is amended to read as follows:
   §  1825.  Violation  of secrecy provisions of the tax law.--Any person
 who violates the provisions of [subdivision (b) of section  twenty-one,]
 subdivision one of section two hundred two, subdivision eight of section
 two  hundred  eleven, subdivision (a) of section three hundred fourteen,
 subdivision one or two of section  four  hundred  thirty-seven,  section
 four hundred eighty-seven, SECTION FOUR HUNDRED NINETY-FOUR, subdivision
 one  or  two of section five hundred fourteen, subsection (e) of section
 six hundred ninety-seven, subsection (a) of section nine  hundred  nine-
 ty-four,  subdivision  (a)  of section eleven hundred forty-six, section
 twelve hundred eighty-seven, section twelve hundred ninety-six, subdivi-
 sion (a) of  section  fourteen  hundred  eighteen,  subdivision  (a)  of
 section  fifteen  hundred  eighteen,  subdivision (a) of section fifteen
 hundred fifty-five of this  chapter,  and  subdivision  (e)  of  section
 11-1797  of  the  administrative  code  of the city of New York shall be
 guilty of a misdemeanor.
   § 3. The state finance law is amended by adding a new section 97-aaaaa
 to read as follows:
   § 97-AAAAA. OPIOID PREVENTION,  TREATMENT  AND  RECOVERY  ACCOUNT.  1.
 THERE  IS  HEREBY  ESTABLISHED  IN  THE JOINT CUSTODY OF THE STATE COMP-
 TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE AN ACCOUNT  OF  THE
 MISCELLANEOUS  SPECIAL  REVENUE  ACCOUNT  TO  BE  KNOWN  AS  THE "OPIOID
 PREVENTION, TREATMENT AND RECOVERY ACCOUNT".
   2. MONEYS IN THE OPIOID PREVENTION,  TREATMENT  AND  RECOVERY  ACCOUNT
 SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS
 IN THE CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION
 AND FINANCE.
   3. THE OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT SHALL CONSIST
 OF  MONEYS  APPROPRIATED  FOR THE PURPOSE OF SUCH ACCOUNT, MONEYS TRANS-
 FERRED TO SUCH ACCOUNT PURSUANT  TO  LAW,  CONTRIBUTIONS  CONSISTING  OF
 PROMISES OR GRANTS OF ANY MONEY OR PROPERTY OF ANY KIND OR VALUE, OR ANY
 OTHER  THING  OF  VALUE,  INCLUDING GRANTS OR OTHER FINANCIAL ASSISTANCE
 FROM ANY AGENCY OF GOVERNMENT AND MONEYS REQUIRED BY THE  PROVISIONS  OF
 THIS  SECTION  OR  ANY  OTHER  LAW  TO  BE PAID INTO OR CREDITED TO THIS
 ACCOUNT. THE ACCOUNT SHALL ALSO CONSIST  OF  MONEYS  RECEIVED  FROM  ANY
 LITIGATION  OR  ENFORCEMENT  ACTIONS INITIATED AGAINST OPIOID PHARMACEU-
 TICAL MANUFACTURERS, DISTRIBUTORS AND WHOLESALERS.
   4. MONEYS OF THE OPIOID PREVENTION, TREATMENT  AND  RECOVERY  ACCOUNT,
 WHEN  ALLOCATED,  SHALL  BE  AVAILABLE,  SUBJECT  TO THE APPROVAL OF THE
 DIRECTOR OF THE BUDGET, TO SUPPORT PROGRAMS OPERATED  BY  THE  NEW  YORK
 STATE  OFFICE  OF  ALCOHOLISM  AND  SUBSTANCE ABUSE SERVICES OR AGENCIES
 CERTIFIED, AUTHORIZED, APPROVED OR OTHERWISE  FUNDED  BY  THE  NEW  YORK
 STATE  OFFICE  OF  ALCOHOLISM  AND  SUBSTANCE  ABUSE SERVICES TO PROVIDE
 OPIOID TREATMENT, RECOVERY AND PREVENTION AND EDUCATION SERVICES; AND TO

 S. 7509--A                         60                         A. 9509--A

 PROVIDE SUPPORT FOR THE  PRESCRIPTION  MONITORING  PROGRAM  REGISTRY  IF
 ESTABLISHED.
   5.  AT THE REQUEST OF THE BUDGET DIRECTOR, THE STATE COMPTROLLER SHALL
 TRANSFER MONEYS TO SUPPORT THE  COSTS  OF  OPIOID  TREATMENT,  RECOVERY,
 PREVENTION,  EDUCATION  SERVICES,  AND  OTHER RELATED PROGRAMS, FROM THE
 OPIOID PREVENTION, TREATMENT AND RECOVERY ACCOUNT TO ANY OTHER  FUND  OF
 THE STATE.
   6.  NOTWITHSTANDING  THE  PROVISIONS OF ANY GENERAL OR SPECIAL LAW, NO
 MONEYS SHALL BE AVAILABLE FROM  THE  OPIOID  PREVENTION,  TREATMENT  AND
 RECOVERY  ACCOUNT  UNTIL  A  CERTIFICATE OF ALLOCATION AND A SCHEDULE OF
 AMOUNTS TO BE AVAILABLE THEREFOR SHALL HAVE BEEN ISSUED BY THE  DIRECTOR
 OF THE BUDGET, UPON THE RECOMMENDATION OF THE COMMISSIONER OF THE OFFICE
 OF  ALCOHOLISM  AND SUBSTANCE ABUSE SERVICES, AND A COPY OF SUCH CERTIF-
 ICATE FILED WITH THE COMPTROLLER, THE CHAIRMAN  OF  THE  SENATE  FINANCE
 COMMITTEE  AND  THE  CHAIRMAN  OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
 SUCH CERTIFICATE MAY BE AMENDED FROM TIME TO TIME BY THE DIRECTOR OF THE
 BUDGET, UPON THE RECOMMENDATION OF THE COMMISSIONER  OF  THE  OFFICE  OF
 ALCOHOLISM  AND  SUBSTANCE  ABUSE SERVICES, AND A COPY OF SUCH AMENDMENT
 SHALL BE FILED WITH THE COMPTROLLER, THE CHAIRMAN OF THE SENATE  FINANCE
 COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
   7.  THE  MONEYS,  WHEN  ALLOCATED,  SHALL  BE  PAID  OUT OF THE OPIOID
 PREVENTION, TREATMENT AND RECOVERY ACCOUNT, PURSUANT TO SUBDIVISION FOUR
 OF THIS SECTION, AND SUBJECT TO THE APPROVAL  OF  THE  DIRECTOR  OF  THE
 BUDGET,  ON  THE AUDIT AND WARRANT OF THE COMPTROLLER ON VOUCHERS CERTI-
 FIED OR APPROVED BY (A) THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND
 SUBSTANCE ABUSE SERVICES OR HIS OR HER DESIGNEE; OR (B) THE COMMISSIONER
 OF THE DEPARTMENT OF HEALTH OR HIS OR HER DESIGNEE.
   § 4. This act shall take effect July 1, 2018.
 
                                  PART DD
 
   Section 1. The tax law is amended by adding a new section 1521 to read
 as follows:
   § 1521. HEALTHCARE INSURANCE WINDFALL PROFIT FEE. (A) IN  ADDITION  TO
 ALL  TAXES,  SURCHARGES, AND FEES IMPOSED UNDER THIS CHAPTER, THE INSUR-
 ANCE LAW, THE FINANCIAL SERVICES LAW, AND THE PUBLIC HEALTH  LAW,  THERE
 IS  HEREBY  IMPOSED FOR EACH TAXABLE YEAR BEGINNING AFTER DECEMBER THIR-
 TY-FIRST, TWO THOUSAND SEVENTEEN, A FOURTEEN PERCENT  SURCHARGE  ON  THE
 NET UNDERWRITING GAIN FROM THE SALE OF HEALTH INSURANCE WRITTEN ON RISKS
 LOCATED OR RESIDENT WITHIN THIS STATE AND THE NET UNDERWRITING GAIN FROM
 THE OPERATION OF A MEDICAID MANAGED CARE ORGANIZATION BUSINESS REGULATED
 BY THE DEPARTMENT OF HEALTH OF EVERY CORPORATION (1) AUTHORIZED TO TRAN-
 SACT  AN INSURANCE BUSINESS IN THIS STATE, OR (2) THAT IS A HEALTH MAIN-
 TENANCE ORGANIZATION REQUIRED TO OBTAIN A CERTIFICATE OF AUTHORITY UNDER
 ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW.
   (B) FOR PURPOSES OF THIS SECTION, THE TERM  "HEALTH  INSURANCE"  SHALL
 MEAN  COMPREHENSIVE  HOSPITAL  AND  MEDICAL EXPENSE INSURANCE INCLUDING,
 WITHOUT LIMITATION, COMPREHENSIVE COVERAGE ISSUED BY  A  HEALTH  MAINTE-
 NANCE  ORGANIZATION,  DISABILITY  INCOME  INSURANCE, ACCIDENT INSURANCE,
 MEDICARE  SUPPLEMENT  INSURANCE,  SPECIFIED  DISEASE  INSURANCE,  DENTAL
 INSURANCE, VISION INSURANCE, STOP-LOSS INSURANCE, FIXED INDEMNITY INSUR-
 ANCE, AND HOSPITAL INDEMNITY INSURANCE.
   (C)(1) FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE SALE
 OF  HEALTH  INSURANCE  WRITTEN  ON RISKS LOCATED OR RESIDENT WITHIN THIS
 STATE" SHALL EQUAL A CORPORATION'S  GROSS  RECEIPTS  FROM  THE  SALE  OF
 HEALTH  INSURANCE  WRITTEN  ON RISKS LOCATED OR RESIDENT WITHIN NEW YORK

 S. 7509--A                         61                         A. 9509--A
 
 LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO THE
 GROSS RECEIPTS. THE COMPUTATION OF "GROSS  RECEIPTS  FROM  THE  SALE  OF
 HEALTH  INSURANCE  WRITTEN ON RISKS LOCATED OR RESIDENT WITHIN NEW YORK"
 AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO GROSS RECEIPTS" SHALL
 BE MADE PURSUANT TO THE RULES SET FORTH IN REGULATIONS TO BE PROMULGATED
 BY THE SUPERINTENDENT OF FINANCIAL SERVICES.
   (2)  FOR EACH TAXABLE YEAR, THE "NET UNDERWRITING GAIN FROM THE OPERA-
 TION OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE DEPARTMENT
 OF HEALTH" SHALL EQUAL A CORPORATION'S GROSS RECEIPTS FROM THE OPERATION
 OF A MANAGED CARE ORGANIZATION BUSINESS REGULATED BY THE  DEPARTMENT  OF
 HEALTH LESS THE CORPORATION'S CLAIMS AND ADMINISTRATIVE EXPENSES RELATED
 TO  SUCH  GROSS  RECEIPTS.  THE  COMPUTATION OF "GROSS RECEIPTS FROM THE
 OPERATION OF A MANAGED  CARE  ORGANIZATION  BUSINESS  REGULATED  BY  THE
 DEPARTMENT OF HEALTH" AND "CLAIMS AND ADMINISTRATIVE EXPENSES RELATED TO
 GROSS  RECEIPTS"  SHALL BE MADE PURSUANT TO THE RULES SET FORTH IN REGU-
 LATIONS TO BE PROMULGATED BY THE SUPERINTENDENT OF FINANCIAL SERVICES.
   (D) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED  BY
 THIS SECTION SHALL NOT BE DEDUCTIBLE BY A CORPORATION IN DETERMINING ITS
 LIABILITY FOR ANY OTHER TAX, SURCHARGE, OR FEE IMPOSED UNDER ANY LAW.
   (E)  NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SURCHARGE IMPOSED BY
 THIS SECTION SHALL NOT BE CONSIDERED BY ANY CORPORATION, AND  SHALL  NOT
 BE  DEEMED  TO BE AN EXPENSE, COST, OR LIABILITY, FOR PURPOSES OF ESTAB-
 LISHING OR SETTING THE RATE TO BE CHARGED FOR ANY HEALTH INSURANCE POLI-
 CY.
   (F) THE SURCHARGE IMPOSED BY THIS SECTION SHALL BE CALCULATED BY  EACH
 CORPORATION  ON  AN  ANNUAL BASIS WITHOUT REGARD TO THE ITEMS OF GAIN OR
 LOSS FROM ANY OTHER PERIOD.
   (G) (1) THE SUPERINTENDENT OF FINANCIAL SERVICES SHALL, ON  BEHALF  OF
 THE  COMMISSIONER,  HAVE  THE  POWER, DUTY AND RESPONSIBILITY TO EXAMINE
 RETURNS OF A CORPORATION FILED WITH HIM OR HER PURSUANT TO THIS  SECTION
 AND, TOGETHER WITH ANY OTHER INFORMATION WITHIN HIS OR HER POSSESSION OR
 THAT  MAY  COME  INTO  HIS  OR  HER POSSESSION, TO ASCERTAIN THE CORRECT
 AMOUNT OF SURCHARGE IMPOSED UNDER THIS SECTION OF ANY  CORPORATION.  FOR
 THE  PURPOSE  OF  ASCERTAINING  THE  CORRECTNESS  OF  ANY SUCH SURCHARGE
 IMPOSED UNDER THIS SECTION OR FOR THE PURPOSE OF MAKING AN  ESTIMATE  OF
 THE  SURCHARGE  LIABILITY  UNDER  THIS  SECTION  OF ANY CORPORATION, THE
 SUPERINTENDENT OF FINANCIAL SERVICES SHALL HAVE THE POWER TO EXAMINE  OR
 CAUSE  TO HAVE EXAMINED BY ANY AGENT OR REPRESENTATIVE DESIGNATED BY HIM
 OR HER FOR THAT PURPOSE, ANY BOOKS, PAPERS, RECORDS OR MEMORANDA BEARING
 UPON THE MATTERS REQUIRED TO BE INCLUDED IN THE RETURN.
   (2) IF THE SUPERINTENDENT OF FINANCIAL SERVICES  ASCERTAINS  THAT  THE
 AMOUNT OF SURCHARGE IMPOSED UNDER THIS SECTION AS SHOWN ON THE RETURN OF
 ANY CORPORATION IS LESS THAN THE AMOUNT OF SURCHARGE DISCLOSED BY HIS OR
 HER EXAMINATION, HE OR SHE SHALL PROPOSE, IN WRITING, TO THE COMMISSION-
 ER  THE  ISSUANCE  OF  A  NOTICE  OF DEFICIENCY FOR THE AMOUNT DUE. IF A
 CORPORATION FAILS TO FILE A RETURN WITH THE SUPERINTENDENT OF  FINANCIAL
 SERVICES  WITHIN  THE  TIME REQUIRED FOR THE FILING OF SUCH RETURN (WITH
 REGARD TO ANY EXTENSION OF TIME FOR THE FILING THEREOF), THE SUPERINTEN-
 DENT OF FINANCIAL SERVICES SHALL MAKE  AN  ESTIMATE  OF  THE  AMOUNT  OF
 SURCHARGE DUE FOR THE PERIOD IN RESPECT TO WHICH SUCH CORPORATION FAILED
 TO FILE THE RETURN. THE ESTIMATE SHALL BE MADE FROM ANY AVAILABLE INFOR-
 MATION WHICH IS IN THE POSSESSION OR MAY COME INTO THE POSSESSION OF THE
 SUPERINTENDENT  OF  FINANCIAL  SERVICES  AND HE OR SHE SHALL PROPOSE, IN
 WRITING, TO THE COMMISSIONER THE ISSUANCE OF A NOTICE OF DEFICIENCY  FOR
 THE  AMOUNT  OF  SUCH ESTIMATED SURCHARGE. ANY PROPOSAL PURSUANT TO THIS

 S. 7509--A                         62                         A. 9509--A
 
 PARAGRAPH SHALL SET FORTH THE BASIS  THEREOF  AND  THE  DETAILS  OF  ITS
 COMPUTATION.
   (3)  THE  COMMISSIONER SHALL, ON RECEIPT OF A PROPOSAL FROM THE SUPER-
 INTENDENT OF FINANCIAL SERVICES PURSUANT TO PARAGRAPH TWO OF THIS SUBDI-
 VISION, TAKE APPROPRIATE ACTION UNDER THIS CHAPTER  FOR  THE  ASSESSMENT
 AND  COLLECTION  OF  THE AMOUNT OF SURCHARGE, TOGETHER WITH INTEREST AND
 PENALTIES, SHOWN BY SUCH PROPOSAL TO BE  DUE.    THE  SUPERINTENDENT  OF
 FINANCIAL  SERVICES  SHALL  BE  REQUIRED  TO  ASSIST THE COMMISSIONER IN
 DEFENDING THE CORRECTNESS OF THE AMOUNT ASSESSED AT  ANY  CONFERENCE  AT
 THE BUREAU OF CONCILIATION AND MEDIATION SERVICES AND AT THE DIVISION OF
 TAX APPEALS.
   (4) SUBJECT TO THE CONSENT OF THE SUPERINTENDENT OF FINANCIAL SERVICES
 AND  NOTWITHSTANDING  ANY  OTHER  PROVISIONS OF LAW TO THE CONTRARY, THE
 COMMISSIONER MAY DELEGATE SUCH OTHER OF HIS OR  HER  POWERS  AND  DUTIES
 WITH  RESPECT  TO  THE  ADMINISTRATION  AND  COLLECTION OF THE SURCHARGE
 IMPOSED UNDER THIS SECTION TO THE SUPERINTENDENT OF FINANCIAL  SERVICES,
 AS THE COMMISSIONER FINDS NECESSARY IN ORDER TO FACILITATE SUCH ADMINIS-
 TRATION AND COLLECTION.
   (5)  THE  SUPERINTENDENT  OF  FINANCIAL  SERVICES AND THE COMMISSIONER
 SHALL EACH HAVE THE AUTHORITY TO ISSUE SUCH RULES AND  REGULATIONS  THAT
 ARE NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
   (6)  THE PROVISIONS OF THIS SUBDIVISION SHALL NOT IN ANY WAY BE DEEMED
 TO LIMIT THE POWER OF THE COMMISSIONER  TO  CONDUCT  AN  EXAMINATION  OR
 INVESTIGATION  AS HE OR SHE DEEMS NECESSARY IN ORDER TO CARRY OUT HIS OR
 HER DUTIES WITH RESPECT TO THE SURCHARGE IMPOSED UNDER THIS SECTION.
   (H) (1) EVERY CORPORATION SUBJECT TO THE SURCHARGE IN SUBDIVISION  (A)
 OF  THIS  SECTION, SHALL ANNUALLY, ON OR BEFORE THE FIFTEENTH DAY OF THE
 THIRD MONTH FOLLOWING THE CLOSE OF ITS TAXABLE  YEAR,  TRANSMIT  TO  THE
 COMMISSIONER  A  RETURN IN A FORM PRESCRIBED BY THE COMMISSIONER SETTING
 FORTH SUCH INFORMATION AS  THE  COMMISSIONER  MAY  PRESCRIBE  AND  EVERY
 CORPORATION  WHICH CEASES TO BE SUBJECT TO THE SURCHARGE IMPOSED BY THIS
 SECTION SHALL TRANSMIT TO THE COMMISSIONER A RETURN ON THE DATE OF  SUCH
 CESSATION OR AT SUCH OTHER TIME AS THE COMMISSIONER MAY REQUIRE COVERING
 EACH YEAR OR PERIOD FOR WHICH NO RETURN WAS THERETOFORE FILED. A COPY OF
 EACH RETURN REQUIRED UNDER THIS SUBDIVISION SHALL ALSO BE TRANSMITTED TO
 THE  SUPERINTENDENT  OF FINANCIAL SERVICES AT OR BEFORE THE TIMES SPECI-
 FIED FOR FILING SUCH RETURNS WITH THE COMMISSIONER.
   (2) EVERY CORPORATION SHALL ALSO TRANSMIT SUCH OTHER RETURNS AND  SUCH
 FACTS  AND  INFORMATION  AS THE COMMISSIONER MAY REQUIRE IN THE ADMINIS-
 TRATION OF THIS SECTION.
   (3) THE COMMISSIONER MAY GRANT A  REASONABLE  EXTENSION  OF  TIME  FOR
 FILING  RETURNS  WHENEVER  GOOD  CAUSE EXISTS. AN AUTOMATIC EXTENSION OF
 FOUR MONTHS FOR THE FILING OF ITS RETURN SHALL  BE  ALLOWED  ANY  CORPO-
 RATION,  IF WITHIN THE TIME PRESCRIBED BY PARAGRAPH ONE OF THIS SUBDIVI-
 SION, SUCH CORPORATION FILES WITH THE COMMISSIONER  AN  APPLICATION  FOR
 EXTENSION  IN SUCH FORM AS THE COMMISSIONER MAY PRESCRIBE AND PAYS ON OR
 BEFORE THE DATE OF SUCH FILING THE  AMOUNT  PROPERLY  ESTIMATED  AS  ITS
 SURCHARGE.
   (4)  EVERY  RETURN  SHALL  HAVE ANNEXED THERETO A CERTIFICATION BY THE
 PRESIDENT,  VICE  PRESIDENT,  TREASURER,  ASSISTANT   TREASURER,   CHIEF
 ACCOUNTING  OFFICER OR ANY OTHER OFFICER OF THE CORPORATION DULY AUTHOR-
 IZED SO TO ACT TO THE EFFECT THAT THE STATEMENTS CONTAINED  THEREIN  ARE
 TRUE. THE FACT THAT AN INDIVIDUAL'S NAME IS SIGNED ON A CERTIFICATION OF
 THE RETURN SHALL BE PRIMA FACIE EVIDENCE THAT SUCH INDIVIDUAL IS AUTHOR-
 IZED TO SIGN AND CERTIFY THE RETURN ON BEHALF OF THE CORPORATION.

 S. 7509--A                         63                         A. 9509--A

   (5)  EACH  CORPORATION  SUBJECT TO THE SURCHARGE IN SUBDIVISION (A) OF
 THIS SECTION SHALL FILE A SEPARATE RETURN FOR EACH YEAR SUCH CORPORATION
 IS SUBJECT TO THE SURCHARGE.
   (6)  IN  CASE  IT SHALL APPEAR TO THE COMMISSIONER THAT ANY AGREEMENT,
 UNDERSTANDING OR ARRANGEMENT EXISTS  BETWEEN  THE  CORPORATION  AND  ANY
 OTHER  ENTITY,  PERSON OR FIRM WHEREBY THE ACTIVITY, BUSINESS, INCOME OR
 CAPITAL OF THE CORPORATION IS IMPROPERLY OR INACCURATELY REFLECTED,  THE
 COMMISSIONER IS AUTHORIZED AND EMPOWERED IN HIS OR HER DISCRETION AND IN
 SUCH  MANNER  AS  HE  OR  SHE  MAY DETERMINE, TO ADJUST ITEMS OF INCOME,
 DEDUCTIONS AND CAPITAL SO AS EQUITABLY TO DETERMINE THE SURCHARGE. WHERE
 (A) ANY CORPORATION CONDUCTS ITS ACTIVITY OR BUSINESS UNDER  ANY  AGREE-
 MENT,  ARRANGEMENT OR UNDERSTANDING IN SUCH MANNER AS EITHER DIRECTLY OR
 INDIRECTLY TO BENEFIT ITS MEMBERS OR STOCKHOLDERS, OR ANY  OF  THEM,  OR
 ANY PERSON OR PERSONS DIRECTLY OR INDIRECTLY INTERESTED IN SUCH ACTIVITY
 OR  BUSINESS,  BY  ENTERING  INTO ANY TRANSACTION AT MORE OR LESS THAN A
 FAIR PRICE WHICH, BUT FOR SUCH AGREEMENT, ARRANGEMENT OR  UNDERSTANDING,
 MIGHT  HAVE  BEEN  PAID  OR RECEIVED THEREFOR, OR (B) ANY CORPORATION, A
 SUBSTANTIAL PORTION OF WHOSE CAPITAL STOCK IS OWNED EITHER  DIRECTLY  OR
 INDIRECTLY BY ANOTHER CORPORATION, ENTERS INTO ANY TRANSACTION WITH SUCH
 OTHER  CORPORATION  ON  SUCH TERMS AS TO CREATE AN IMPROPER GAIN OR LOSS
 AMOUNT, THE COMMISSIONER MAY INCLUDE IN THE CORPORATION'S  GAIN  SUBJECT
 TO  THE  SURCHARGE  THE  FAIR  AMOUNTS,  WHICH,  BUT FOR SUCH AGREEMENT,
 ARRANGEMENT OR UNDERSTANDING, THE CORPORATION MIGHT  HAVE  DERIVED  FROM
 SUCH TRANSACTION.
   (I)  (1) TO THE EXTENT THE SURCHARGE IMPOSED BY THIS SECTION SHALL NOT
 HAVE BEEN PREVIOUSLY PAID, THE SURCHARGE, OR THE BALANCE THEREOF,  SHALL
 BE  PAYABLE  TO  THE  COMMISSIONER IN FULL AT THE TIME THE CORPORATION'S
 RETURN IS REQUIRED TO BE FILED.
   (2) IF THE CORPORATION, WITHIN THE TIME PRESCRIBED BY SUBDIVISION  (F)
 OF  THIS  SECTION, SHALL HAVE APPLIED FOR AN AUTOMATIC EXTENSION OF TIME
 TO FILE ITS ANNUAL RETURN AND SHALL HAVE PAID TO THE  SUPERINTENDENT  OF
 FINANCIAL  SERVICES  ON  OR BEFORE THE DATE SUCH APPLICATION IS FILED AN
 AMOUNT PROPERLY ESTIMATED AS PROVIDED  BY  SAID  SUBDIVISION,  THE  ONLY
 AMOUNT  PAYABLE  IN  ADDITION  TO THE SURCHARGE SHALL BE INTEREST AT THE
 UNDERPAYMENT RATE SET BY THE COMMISSIONER PURSUANT TO SUBSECTION (E)  OF
 SECTION  ONE  THOUSAND NINETY-SIX OF THIS CHAPTER OR, IF NO RATE IS SET,
 AT THE RATE OF SIX PERCENT PER  ANNUM  UPON  THE  AMOUNT  BY  WHICH  THE
 SURCHARGE,  OR  PORTION THEREOF PAYABLE ON OR BEFORE THE DATE THE RETURN
 WAS REQUIRED TO BE FILED, EXCEEDS THE AMOUNT SO PAID. FOR  THE  PURPOSES
 OF THE PRECEDING SENTENCE:
   (A)  AN  AMOUNT  SO  PAID  SHALL BE DEEMED PROPERLY ESTIMATED IF IT IS
 EITHER (I) NOT LESS THAN NINETY PERCENT  OF  THE  SURCHARGE  AS  FINALLY
 DETERMINED,  OR  (II)  NOT  LESS  THAN THE SURCHARGE SHOWN ON THE CORPO-
 RATION'S RETURN FOR THE PRECEDING TAXABLE YEAR, IF SUCH  PRECEDING  YEAR
 WAS A TAXABLE YEAR OF TWELVE MONTHS; AND
   (B) THE TIME WHEN A RETURN IS REQUIRED TO BE FILED SHALL BE DETERMINED
 WITHOUT REGARD TO ANY EXTENSION OF TIME FOR FILING SUCH RETURN.
   (3)  THE  COMMISSIONER  MAY  GRANT  A REASONABLE EXTENSION OF TIME FOR
 PAYMENT OF ANY SURCHARGE IMPOSED BY THIS SECTION UNDER  SUCH  CONDITIONS
 AS HE OR SHE DEEMS JUST AND PROPER.
   (J)  ALL  SURCHARGES,  INTEREST AND PENALTIES COLLECTED OR RECEIVED BY
 THE COMMISSIONER UNDER THIS SECTION SHALL BE DEPOSITED INTO  THE  HEALTH
 CARE  REFORM ACT (HCRA) RESOURCES FUND PURSUANT TO SECTION NINETY-TWO-DD
 OF THE STATE FINANCE LAW.
   (K) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY
 TO THE PROVISIONS OF THIS SECTION IN THE SAME MANNER AND WITH  THE  SAME

 S. 7509--A                         64                         A. 9509--A
 
 FORCE  AND  EFFECT  AS  IF THE LANGUAGE OF SUCH ARTICLE TWENTY-SEVEN HAD
 BEEN INCORPORATED IN FULL INTO THIS ARTICLE AND HAD  EXPRESSLY  REFERRED
 TO  THE SURCHARGE UNDER THIS SECTION, EXCEPT TO THE EXTENT THAT ANY SUCH
 PROVISION  IS EITHER INCONSISTENT WITH A PROVISION OF THIS SECTION OR IS
 NOT RELEVANT TO THIS SECTION.
   § 2. This act shall take effect immediately.
 
                                  PART EE
 
   Section 1. Subdivision 1 of Section 208  of  the  racing,  pari-mutuel
 wagering  and  breeding  law,  as  amended by chapter 140 of the laws of
 2008, is amended to read as follows:
   1. In consideration of the franchise and in accordance with its  fran-
 chise  agreement,  the  franchised corporation shall remit to the state,
 each year, no later than April fifth, a franchise fee payment. The fran-
 chise fee shall be calculated and equal to the lesser of  paragraph  (a)
 or  (b) of this subdivision as follows: (a) adjusted net income, includ-
 ing all sources of audited generally accepted accounting principles  net
 income  as  of December thirty-first (i) plus the amount of depreciation
 and amortization for such year as set forth on  the  statement  of  cash
 flows  (ii)  less  the amount received by the franchised corporation for
 capital expenditures and (iii) less  principal  payments  made  for  the
 repayment of debt; or (b) operating cash which is defined as cash avail-
 able  on  December  thirty-first  (i) which excludes all restricted cash
 accounts, segregated accounts as per audited  financial  statements  and
 cash  on hand needed to fund the on-track pari-mutuel operations through
 the vault, (ii) less [forty-five]  NINETY  days  of  operating  expenses
 pursuant  to  generally accepted accounting principles which shall be an
 average calculated by dividing the current year's annual budget  by  the
 number  of days in such year and multiplying that number by [forty-five]
 NINETY.
   § 2. Section 203 of the racing, pari-mutuel wagering and breeding law,
 as amended by chapter 18 of the laws of 2008,  is  amended  to  read  as
 follows:
   §  203.  Right  to  hold race meetings and races.   1. Any corporation
 formed under the provisions of  this  article,  if  so  claimed  in  its
 certificate  of  organization,  and  if  it  shall  comply  with all the
 provisions of this article, and any other corporation  entitled  to  the
 benefits  and  privileges of this article as hereinafter provided, shall
 have the power and the right to hold one or more running  race  meetings
 in  each  year,  and to hold, maintain and conduct running races at such
 meetings. At such running race meetings the corporation, or  the  owners
 of  horses  engaged in such races, or others who are not participants in
 the race, may contribute  purses,  prizes,  premiums  or  stakes  to  be
 contested  for,  but no person or persons other than the owner or owners
 of a horse or horses contesting in  a  race  shall  have  any  pecuniary
 interest in a purse, prize, premium or stake contested for in such race,
 or  be  entitled  to  or  receive any portion thereof after such race is
 finished, and the whole of such purse, prize, premium or stake shall  be
 allotted in accordance with the terms and conditions of such race. Races
 conducted  by  a  franchised corporation shall be permitted only between
 sunrise and sunset.
   2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A FRAN-
 CHISED CORPORATION SHALL BE PERMITTED TO CONDUCT RACES AFTER  SUNSET  AT
 THE  BELMONT  PARK  RACETRACK,  ONLY  ON  THE  MAIN TRACK IN ITS CURRENT
 CONFIGURATION, ONLY IF SUCH RACES CONCLUDE BEFORE HALF PAST TEN O' CLOCK

 S. 7509--A                         65                         A. 9509--A

 POST MERIDIAN, AND ONLY IF SUCH RACES OCCUR  ON  THURSDAYS,  FRIDAYS  OR
 SATURDAYS.  THE  FRANCHISED  CORPORATION SHALL COORDINATE WITH A HARNESS
 RACING ASSOCIATION OR CORPORATION AUTHORIZED TO OPERATE  IN  WESTCHESTER
 COUNTY  TO  ENSURE  THAT  THE STARTING TIMES OF ALL SUCH RACES ARE STAG-
 GERED.
   3. A track first licensed after January first, nineteen hundred  nine-
 ty,  shall  not  conduct  the  simulcasting of thoroughbred races within
 district one, in accordance with article ten of  this  chapter  on  days
 that  a  franchised  corporation is not conducting a race meeting. In no
 event shall thoroughbred races conducted by a track first licensed after
 January first, nineteen hundred ninety be conducted after eight  o'clock
 post meridian.
   §  3.  An  advisory  committee  shall  be  established by the governor
 comprised of individuals with demonstrated interest in  the  performance
 of  thoroughbred  and  standardbred  race  horses  to review the present
 structure, operations and funding of equine drug  testing  and  research
 conducted  pursuant  to article nine of the racing, pari-mutuel wagering
 and breeding law. Recommendations shall be delivered  to  the  temporary
 president  of the Senate, speaker of the Assembly and Governor by Decem-
 ber 1, 2018 regarding the future of such research, testing and  funding.
 Members of the board shall not be considered policymakers.
   §  4.  This act shall take effect immediately; provided, however, that
 the amendments to section 203 of the racing,  pari-mutuel  wagering  and
 breeding  law made by section two of this act shall expire and be deemed
 repealed 4 years after the first night of racing conducted after  sunset
 pursuant  to  this  act;  provided  that the New York Racing Association
 shall notify the legislative bill drafting commission  of  the  date  of
 such  night of racing in order that the commission may maintain an accu-
 rate and timely effective data base of the official text of the laws  of
 the  state  of New York in furtherance of effectuating the provisions of
 section 44 of the legislative law and section 70-b of the  public  offi-
 cers law.
 
                                  PART FF
 
   Section  1.  Subdivision  2  of section 254 of the racing, pari-mutuel
 wagering and breeding law is amended by adding a new paragraph h to read
 as follows:
   H. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE
 THE ONGOING CARE OF RETIRED HORSES, PROVIDED,  HOWEVER,  THAT  THE  FUND
 SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES.
   §  2. Subdivision 1 of section 332 of the racing, pari-mutuel wagering
 and breeding law is amended by adding a  new  paragraph  j  to  read  as
 follows:
   J. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND TO SUPPORT AND PROMOTE
 THE  ONGOING  CARE  OF  RETIRED HORSES, PROVIDED, HOWEVER, THAT THE FUND
 SHALL NOT BE REQUIRED TO MAKE ANY ALLOCATION FOR SUCH PURPOSES.
   § 3. This act shall take effect immediately.
 
                                  PART GG
 
   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 OO of chapter 59 of the laws of 2017,  is  amended  to  read  as
 follows:

 S. 7509--A                         66                         A. 9509--A
 
   (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 [eighteen] NINETEEN; 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 [eighteen] NINETEEN; and (iv) no in-home simul-
 casting in the thoroughbred special betting district shall occur without
 the approval of the regional thoroughbred track.
   § 2. Subparagraph (iii) of paragraph d of  subdivision  3  of  section
 1007 of the racing, pari-mutuel wagering and breeding law, as amended by

 S. 7509--A                         67                         A. 9509--A

 section  2  of  part OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN, the amount used exclusively
 for purses to be awarded at races  conducted  by  such  receiving  track
 shall  be computed as follows: of the sums so retained, two and one-half
 percent of the total pools. Such amount shall be increased or  decreased
 in  the  amount  of fifty percent of the difference in total commissions
 determined by comparing the total commissions available after July twen-
 ty-first, nineteen hundred ninety-five to  the  total  commissions  that
 would  have  been  available  to  such track prior to July twenty-first,
 nineteen hundred ninety-five.
   § 3. The opening paragraph of subdivision 1 of  section  1014  of  the
 racing,  pari-mutuel  wagering and breeding law, as amended by section 3
 of part OO of chapter 59 of the laws of 2017,  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 [eighteen] NINETEEN and on any day regardless of
 whether or not a franchised corporation is conducting a race meeting  in
 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
 two  thousand  [eighteen]  NINETEEN.  On  any  day on which a franchised
 corporation has not scheduled a racing program but a thoroughbred racing
 corporation located within the state is conducting  racing,  every  off-
 track  betting corporation branch office and every simulcasting facility
 licensed in accordance  with  section  one  thousand  seven  (that  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 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 OO of  chapter  59  of
 the laws of 2017, 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 [eighteen] NINETEEN. This section  shall  super-
 sede all inconsistent provisions of this chapter.
   §  5.  The  opening  paragraph of subdivision 1 of section 1016 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  5
 of  part  OO  of  chapter  59 of the laws of 2017, is amended to read as
 follows:
   The provisions of this section shall govern the simulcasting of  races
 conducted  at thoroughbred tracks located in another state or country on
 any day during which a franchised corporation is not conducting  a  race
 meeting in Saratoga county at Saratoga thoroughbred racetrack until June
 thirtieth,  two  thousand  [eighteen]  NINETEEN. Every off-track betting
 corporation branch office and every simulcasting  facility  licensed  in
 accordance  with  section  one  thousand  seven that have entered into a
 written agreement with such facility's representative horsemen's  organ-

 S. 7509--A                         68                         A. 9509--A
 
 ization  as  approved by the commission, one thousand eight or one thou-
 sand nine of this article shall  be  authorized  to  accept  wagers  and
 display  the  live  full-card  simulcast  signal  of thoroughbred tracks
 (which  may  include  quarter  horse or mixed meetings provided that all
 such wagering on such races shall be construed to be thoroughbred races)
 located in another state or foreign country, subject  to  the  following
 provisions;  provided,  however,  no  such  written  agreement  shall be
 required of a franchised corporation licensed in accordance with section
 one thousand seven of this article:
   § 6. The opening paragraph of section 1018 of the racing,  pari-mutuel
 wagering and breeding law, as amended by section 6 of part OO of chapter
 59 of the laws of 2017, 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 [seventeen] EIGHTEEN, 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 OO of chapter  59  of  the
 laws of 2017, 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,  [2018]  2019;  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 OO of chapter 59 of the laws of 2017, 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, [2018] 2019; and section eighteen of  this
 act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
 two of this act shall take effect as of the same date as chapter 772  of
 the laws of 1989 took effect.

 S. 7509--A                         69                         A. 9509--A
 
   §  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
 pari-mutuel wagering and breeding law, as amended by section 9  of  part
 OO of chapter 59 of the laws of 2017, is amended to read as follows:
   (a)  The  franchised  corporation  authorized  under  this  chapter to
 conduct pari-mutuel betting at a race meeting or races run thereat shall
 distribute all sums deposited in any pari-mutuel pool to the holders  of
 winning  tickets therein, provided such tickets be presented for payment
 before April first of the year following the  year  of  their  purchase,
 less  an  amount  which  shall be established and retained by such fran-
 chised corporation of between twelve to  seventeen  per  centum  of  the
 total  deposits in pools resulting from on-track regular bets, and four-
 teen to twenty-one per centum of the total deposits in  pools  resulting
 from on-track multiple bets and fifteen to twenty-five per centum of the
 total  deposits in pools resulting from on-track exotic bets and fifteen
 to thirty-six per centum of the total deposits in pools  resulting  from
 on-track  super  exotic  bets, plus the breaks. The retention rate to be
 established is subject to the prior approval of the  gaming  commission.
 Such  rate  may not be changed more than once per calendar quarter to be
 effective on the first day of the calendar quarter.  "Exotic  bets"  and
 "multiple  bets"  shall  have  the  meanings  set  forth in section five
 hundred nineteen of this chapter. "Super exotic  bets"  shall  have  the
 meaning  set  forth  in  section  three hundred one of this chapter. For
 purposes of this section, a "pick six bet" shall mean a  single  bet  or
 wager on the outcomes of six races. The breaks are hereby defined as the
 odd  cents over any multiple of five for payoffs greater than one dollar
 five cents but less than five dollars, over  any  multiple  of  ten  for
 payoffs  greater  than  five  dollars but less than twenty-five dollars,
 over any multiple of twenty-five for payoffs  greater  than  twenty-five
 dollars but less than two hundred fifty dollars, or over any multiple of
 fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
 retained there shall be paid  by  such  franchised  corporation  to  the
 commissioner  of  taxation and finance, as a reasonable tax by the state
 for the privilege of conducting pari-mutuel betting on the races run  at
 the  race  meetings  held  by such franchised corporation, the following
 percentages of the total pool for regular and  multiple  bets  five  per
 centum  of regular bets and four per centum of multiple bets plus twenty
 per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
 centum  plus  twenty per centum of the breaks, and for super exotic bets
 seven and one-half per centum plus fifty per centum of the  breaks.  For
 the  period  June  first, nineteen hundred ninety-five through September
 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
 three per centum and such tax on multiple wagers shall be two  and  one-
 half  per  centum,  plus twenty per centum of the breaks. For the period
 September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
 first,  two  thousand  one, such tax on all wagers shall be two and six-
 tenths per centum and for the  period  April  first,  two  thousand  one
 through  December  thirty-first,  two thousand [eighteen] NINETEEN, such
 tax on all wagers shall be one and six-tenths per centum, plus, in  each
 such  period,  twenty  per centum of the breaks. Payment to the New York
 state thoroughbred breeding and  development  fund  by  such  franchised
 corporation  shall be one-half of one per centum of total daily on-track
 pari-mutuel pools resulting from regular, multiple and exotic  bets  and
 three  per  centum  of super exotic bets provided, however, that for the
 period September tenth, nineteen hundred ninety-nine through March thir-
 ty-first, two thousand one, such payment shall be six-tenths of one  per
 centum  of  regular,  multiple and exotic pools and for the period April

 S. 7509--A                         70                         A. 9509--A
 
 first, two thousand one  through  December  thirty-first,  two  thousand
 [eighteen]  NINETEEN,  such  payment  shall  be  seven-tenths of one per
 centum of such pools.
   § 10. This act shall take effect immediately.
 
                                  PART HH
 
   Section  1.  Subdivision 4 of section 97-nnnn of the state finance law
 is REPEALED.
   § 2. Subdivisions 5 and 6 of section 97-nnnn of the state finance  law
 are renumbered subdivisions 4 and 5.
   § 3. This act shall take effect April 1, 2018.
 
                                  PART II
 
   Section  1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision
 b of section 1612 of the tax law are REPEALED  and  a  new  subparagraph
 (ii) is added to read as follows:
   (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING
 AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA-
 TOR  OF  ANY  OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO
 SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE:
   (A) WHEN A VENDOR TRACK IS LOCATED  WITHIN  DEVELOPMENT  ZONE  ONE  AS
 DEFINED  BY  SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (B) WHEN A VENDOR TRACK IS LOCATED  WITHIN  DEVELOPMENT  ZONE  TWO  AS
 DEFINED  BY  SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF FORTY-THREE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, AT A VENDOR  TRACK  LOCATED
 WITHIN  FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED
 PURSUANT TO ARTICLE THIRTEEN OF THE  RACING,  PARI-MUTUEL  WAGERING  AND
 BREEDING LAW OR THAT IS LOCATED MORE THAN FIFTEEN MILES BUT WITHIN FIFTY
 MILES  OF  A  NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25
 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE  AT  A  RATE  OF  FIFTY-ONE
 PERCENT  OF  THE  TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT
 FOR PRIZES PURSUANT TO THIS CHAPTER; AND THAT AT A VENDOR TRACK  LOCATED
 WITHIN  FIFTEEN  MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS
 DEFINED IN 25 U.S.C. § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE  OF
 FIFTY-SIX PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER
 PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (C)  WHEN  A VIDEO LOTTERY FACILITY IS OPERATED AT AQUEDUCT RACETRACK,
 AT A RATE OF FORTY-SEVEN PERCENT OF THE TOTAL  REVENUE  WAGERED  AT  THE
 VIDEO  LOTTERY  GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS
 CHAPTER; PROVIDED, HOWEVER, UPON THE EARLIER OF THE DESIGNATION  OF  ONE
 THOUSAND  VIDEO  LOTTERY DEVICES AS HOSTED PURSUANT TO PARAGRAPH FOUR OF
 SUBDIVISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE  OR
 APRIL  FIRST, TWO THOUSAND NINETEEN, SUCH RATE SHALL BE FIFTY PERCENT OF
 THE TOTAL REVENUE WAGERED AT THE VIDEO  LOTTERY  GAMING  FACILITY  AFTER
 PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;
   (D)  WHEN  A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU
 OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED  PURSU-
 ANT  TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND
 BREEDING LAW, AT A RATE OF  FORTY-FIVE  PERCENT  OF  THE  TOTAL  REVENUE

 S. 7509--A                         71                         A. 9509--A
 
 WAGERED  AT  THE  VIDEO  LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (E)  NOTWITHSTANDING  ANY  PROVISION  OF  LAW  TO THE CONTRARY, WHEN A
 VENDOR TRACK IS LOCATED WITHIN REGION ONE OR  TWO  OF  DEVELOPMENT  ZONE
 TWO,  AS  SUCH  ZONE  IS  DEFINED IN SECTION THIRTEEN HUNDRED TEN OF THE
 RACING, PARI-MUTUEL WAGERING AND BREEDING  LAW,  OR  IS  LOCATED  WITHIN
 REGION  SIX  OF  SUCH DEVELOPMENT ZONE TWO AND IS LOCATED WITHIN ONTARIO
 COUNTY, SUCH VENDOR TRACK SHALL BE ENTITLED  TO  RECEIVE  AN  ADDITIONAL
 COMMISSION. THE ADDITIONAL COMMISSION RECEIVED BY THE VENDOR TRACK SHALL
 BE THE ADJUSTED COMMISSION CALCULATED PURSUANT TO SUBCLAUSE (II) OF THIS
 CLAUSE; PROVIDED, HOWEVER, THE ADDITIONAL COMMISSION SHALL NOT EXCEED AN
 AMOUNT CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE.
   (I)  THE  MAXIMUM  ADDITIONAL  COMMISSION  PAYABLE FOR ANY FISCAL YEAR
 SHALL BE AN AMOUNT EQUAL TO  THE  BASE  VENDOR  FEE  LESS  THE  ADJUSTED
 CURRENT VENDOR FEE. THE ADJUSTED CURRENT VENDOR FEE IS CALCULATED AS THE
 VENDOR  FEE  THAT  THE  FACILITY  WOULD HAVE RECEIVED DURING THE CURRENT
 FISCAL YEAR UNDER THE PAYMENT SCHEDULE ESTABLISHED BY THIS PARAGRAPH  AS
 IT  EXISTED  ON  MARCH  THIRTY-FIRST,  TWO  THOUSAND SEVENTEEN. THE BASE
 VENDOR FEE IS CALCULATED AS THE VENDOR FEE THAT  THE  FACILITY  RECEIVED
 DURING  THE  TWELVE-MONTH  PERIOD IMMEDIATELY PRECEDING THE OPENING OF A
 GAMING FACILITY IN THE SAME REGION AS THE VENDOR TRACK. FOR THE PURPOSES
 OF THIS CALCULATION,  A  VENDOR  FEE  SHALL  EXCLUDE  ANY  DISTRIBUTIONS
 REQUIRED  BY PARAGRAPH TWO OF THIS SUBDIVISION. FOR THE PURPOSES OF THIS
 CLAUSE, SENECA AND WAYNE COUNTIES SHALL BE DEEMED TO BE  LOCATED  WITHIN
 REGION SIX OF DEVELOPMENT ZONE TWO.
   (II)  THE  ADJUSTED  COMMISSION  IS  A PERCENTAGE OF THE TOTAL REVENUE
 WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR  PRIZES  PURSUANT  TO  THIS
 CHAPTER.  THAT PERCENTAGE IS CALCULATED BY SUBTRACTING THE EFFECTIVE TAX
 RATE ON ALL GROSS GAMING REVENUE PAID BY A GAMING  FACILITY  WITHIN  THE
 SAME  REGION  AS  THE  VENDOR  TRACK  FROM THE EDUCATION PERCENTAGE. THE
 EDUCATION PERCENTAGE IS NINETY PERCENT LESS THE PERCENTAGE OF THE VENDOR
 TRACK'S VENDOR FEE. FOR PURPOSES OF THIS CLAUSE, SENECA AND WAYNE  COUN-
 TIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE
 TWO.
   (III)  THE  ADDITIONAL  COMMISSION  PAID PURSUANT TO THIS SUBPARAGRAPH
 SHALL COMMENCE WITH THE STATE FISCAL YEAR ENDING ON MARCH  THIRTY-FIRST,
 TWO  THOUSAND EIGHTEEN AND SHALL BE PAID TO A VENDOR TRACK NO LATER THAN
 SIXTY DAYS AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL COMMISSION
 AUTHORIZED BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED AT  A
 VENDOR  TRACK  WHILE A GAMING FACILITY IN THE SAME REGION AS THAT VENDOR
 TRACK IS OPEN AND OPERATING PURSUANT TO AN OPERATION CERTIFICATE  ISSUED
 PURSUANT  TO SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MU-
 TUEL WAGERING AND BREEDING LAW.
   (F) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  ANY  OPERA-
 TORS  OF  A  VENDOR  TRACK  OR  THE OPERATORS OF ANY OTHER VIDEO LOTTERY
 GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR-
 TY-FIRST, TWO THOUSAND SEVENTEEN SHALL DEPOSIT  FROM  THEIR  VENDOR  FEE
 INTO  A  SEGREGATED ACCOUNT AN AMOUNT EQUAL TO FOUR PERCENT OF THE FIRST
 SIXTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OF  REVENUE  WAGERED  AT
 THE  VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO BE
 USED EXCLUSIVELY FOR CAPITAL INVESTMENTS,  EXCEPT  FOR  AQUEDUCT,  WHICH
 SHALL  DEPOSIT  INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO ONE PERCENT
 OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT
 FOR PRIZES PURSUANT TO THIS CHAPTER UNTIL THE EARLIER OF THE DESIGNATION
 OF ONE THOUSAND VIDEO LOTTERY DEVICES AS HOSTED  PURSUANT  TO  PARAGRAPH
 FOUR  OF  SUBDIVISION  A  OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS

 S. 7509--A                         72                         A. 9509--A
 
 ARTICLE OR APRIL FIRST, TWO THOUSAND NINETEEN, WHEN AT  SUCH  TIME  FOUR
 PERCENT  OF  ALL  REVENUE  WAGERED  AT THE VIDEO LOTTERY GAMING FACILITY
 AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO
 A  SEGREGATED  ACCOUNT  FOR CAPITAL INVESTMENTS. VENDOR TRACKS AND VIDEO
 LOTTERY GAMING FACILITIES SHALL  BE  PERMITTED  TO  WITHDRAW  FUNDS  FOR
 PROJECTS  APPROVED  BY  THE  COMMISSION TO IMPROVE THE FACILITIES OF THE
 VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY WHICH ENHANCE OR  MAINTAIN
 THE  VIDEO LOTTERY GAMING FACILITY INCLUDING, BUT NOT LIMITED TO HOTELS,
 OTHER LODGING FACILITIES, ENTERTAINMENT FACILITIES,  RETAIL  FACILITIES,
 DINING FACILITIES, EVENTS ARENAS, PARKING GARAGES AND OTHER IMPROVEMENTS
 AND  AMENITIES  CUSTOMARY  TO  A GAMING FACILITY, PROVIDED, HOWEVER, THE
 VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED  TO
 WITHDRAW  FUNDS  FOR  UNREIMBURSED  CAPITAL AWARDS APPROVED PRIOR TO THE
 EFFECTIVE DATE OF THIS SUBPARAGRAPH. ANY PROCEEDS FROM  THE  DIVESTITURE
 OF  ANY ASSETS ACQUIRED THROUGH THESE CAPITAL FUNDS OR ANY PRIOR CAPITAL
 AWARD MUST BE DEPOSITED INTO THIS SEGREGATED ACCOUNT, PROVIDED  THAT  IF
 THE  VENDOR  TRACK  OR  VIDEO LOTTERY GAMING FACILITY CEASES USE OF SUCH
 ASSET FOR GAMING PURPOSES OR TRANSFERS THE ASSET  TO  A  RELATED  PARTY,
 SUCH  VENDOR  TRACK  OR  VIDEO  LOTTERY GAMING FACILITY SHALL DEPOSIT AN
 AMOUNT EQUAL TO THE FAIR MARKET VALUE OF THAT ASSET INTO THE ACCOUNT. IN
 THE EVENT A VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES  GAMING
 OPERATIONS, ANY BALANCE IN THE ACCOUNT ALONG WITH AN AMOUNT EQUAL TO THE
 VALUE  OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS FUND OR PRIOR CAPI-
 TAL AWARDS SHALL BE RETURNED TO THE STATE FOR  DEPOSIT  INTO  THE  STATE
 LOTTERY  FUND FOR EDUCATION AID, EXCEPT FOR AQUEDUCT, WHICH SHALL RETURN
 TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR  EDUCATION  AID
 ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A PROJECT PURSUANT TO
 AN  AGREEMENT WITH THE OPERATOR TO CONSTRUCT AN EXPANSION OF THE FACILI-
 TY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPI-
 TAL INVESTMENT OF THREE  HUNDRED  MILLION  DOLLARS  AND  ANY  SUBSEQUENT
 AMENDMENTS  TO SUCH AGREEMENT. THE COMPTROLLER OR HIS LEGALLY AUTHORIZED
 REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE  OUT
 OF  THESE  SEGREGATED CAPITAL ACCOUNTS. NOTWITHSTANDING THE PRECEDING, A
 VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP  TO  TWO  MILLION
 DOLLARS  FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF COURSE
 AT THE VENDOR TRACK.
   (G) NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  FREE  PLAY
 ALLOWANCE  CREDITS  AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F
 OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF  THIS  ARTICLE  SHALL  NOT  BE
 INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY
 GAMES,  THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES
 PAYABLE TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES  PAYA-
 BLE  TO  THE  DIVISION'S  VIDEO LOTTERY GAMING EQUIPMENT CONTRACTORS, OR
 RACING SUPPORT PAYMENTS.
   (H) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERATOR
 OF A VENDOR TRACK OR THE OPERATOR OF  ANY  OTHER  VIDEO  LOTTERY  GAMING
 FACILITY  SHALL  FUND  A  MARKETING  AND  PROMOTION  PROGRAM  OUT OF THE
 VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL  MARKETING  PLAN  FOR
 THE  REVIEW  AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU-
 MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE  COMMISSION.
 THE  COMMISSION  SHALL  HAVE  THE  RIGHT  TO REJECT ANY ADVERTISEMENT OR
 PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR  INTERESTS  OF
 THE LOTTERY OR ITS PROGRAMS.
   (I)  NOTWITHSTANDING  CLAUSE  (F) OF THIS SUBPARAGRAPH, THE COMMISSION
 SHALL BE ABLE TO AUTHORIZE A VENDOR TRACK LOCATED WITHIN ONEIDA  COUNTY,
 WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, AND

 S. 7509--A                         73                         A. 9509--A
 
 WHO  HAS  MAINTAINED  AT  LEAST  NINETY  PERCENT OF FULL-TIME EQUIVALENT
 EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN, TO WITHDRAW
 FUNDS FROM THE SEGREGATED ACCOUNT ESTABLISHED  IN  CLAUSE  (F)  OF  THIS
 SUBPARAGRAPH  UP TO AN AMOUNT EQUAL TO FOUR PERCENT OF THE TOTAL REVENUE
 WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR  PRIZES  PURSUANT  TO  THIS
 CHAPTER EACH YEAR, FOR OPERATIONS.
   § 2. This act shall take effect immediately; provided, however, clause
 (I) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612
 of  the  tax law as added by section one of this act shall expire and be
 deemed repealed June 29, 2019.
 
                                  PART JJ
 
   Section 1. Subsection (a) of section 614 of the tax law, as amended by
 chapter 170 of the laws of 1994, is amended to read as follows:
   (a) Unmarried individual. For taxable years beginning  after  nineteen
 hundred  ninety-six, the New York standard deduction of a resident indi-
 vidual who is not married nor the head of a household  nor  a  surviving
 spouse nor an individual [whose federal exemption amount is zero] WHO IS
 CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven
 thousand  five  hundred dollars; for taxable years beginning in nineteen
 hundred ninety-six, such standard deduction shall be seven thousand four
 hundred dollars; for taxable years beginning in nineteen  hundred  nine-
 ty-five,  such  standard  deduction  shall  be  six thousand six hundred
 dollars; and for taxable years beginning after nineteen hundred  eighty-
 nine  and  before  nineteen hundred ninety-five, such standard deduction
 shall be six thousand dollars.
   § 2. Section 612  of  the  tax  law  is  amended  by  adding  two  new
 subsections (w) and (x) to read as follows:
   (W)  ALIMONY  MODIFICATIONS.  (1) IN THE CASE OF APPLICABLE ALIMONY OR
 SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS  INCOME  ANY
 APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER
 DURING THE TAXABLE YEAR.
   (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA-
 BLE  ALIMONY  OR  SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER
 DURING THE TAXABLE YEAR.
   (2) (A) THE TERM "ALIMONY  OR  SEPARATE  MAINTENANCE  PAYMENTS"  MEANS
 PAYMENTS  AS  DEFINED  UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE
 CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97.
   (B) THE TERM "APPLICABLE ALIMONY  OR  SEPARATE  MAINTENANCE  PAYMENTS"
 MEANS  PAYMENTS  MADE  UNDER  AN  ALIMONY  OR  SEPARATION INSTRUMENT (AS
 DEFINED IN SECTION SEVENTY-ONE OF THE INTERNAL REVENUE  CODE  IN  EFFECT
 IMMEDIATELY  PRIOR  TO  THE  ENACTMENT  OF  PUBLIC  LAW 115-97) THAT WAS
 EXECUTED AFTER DECEMBER THIRTY-FIRST, TWO  THOUSAND  EIGHTEEN,  AND  ANY
 DIVORCE  OR  SEPARATION  INSTRUMENT  EXECUTED ON OR BEFORE SUCH DATE AND
 MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE
 AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION.
   (X) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN
 THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING
 EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS  INCOME  ANY
 APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  RECEIVED  BY  THE
 TAXPAYER DURING THE TAXABLE YEAR.
   (B) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS  INCOME  ANY
 APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR.

 S. 7509--A                         74                         A. 9509--A
 
   (2)  APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  AND MOVING
 EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH  (G)  OF  SECTIONS
 ONE  HUNDRED THIRTY-TWO AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY,
 OF THE INTERNAL REVENUE CODE  IMMEDIATELY  PRIOR  TO  THE  ENACTMENT  OF
 PUBLIC LAW 115-97.
   §  3.  Subsection  (a)  of  section  615 of the tax law, as amended by
 section 1 of part HH of chapter 57 of the laws of 2010,  is  amended  to
 read as follows:
   (a)  General.  If  federal  taxable income of a resident individual is
 determined by itemizing deductions  OR  CLAIMING  THE  FEDERAL  STANDARD
 DEDUCTION  from  his OR HER federal adjusted gross income, he OR SHE may
 elect to deduct his OR HER New York itemized deduction [in lieu  of]  OR
 CLAIM  his  OR  HER  New  York standard deduction. The New York itemized
 deduction of a resident individual means the total amount of his OR  HER
 deductions from federal adjusted gross income ALLOWED, other than feder-
 al  deductions  for  personal exemptions, as provided in the laws of the
 United States for the taxable year,  AS SUCH  DEDUCTIONS  EXISTED  IMME-
 DIATELY  PRIOR  TO THE ENACTMENT OF PUBLIC LAW 115-97 with the modifica-
 tions  specified  in  this  section,  except  as  provided   for   under
 subsections (f) and (g) of this section.
   §  4. Subdivision (a) of section 11-1714 of the administrative code of
 the city of New York, as amended by chapter 170 of the laws of 1994,  is
 amended to read as follows:
   (a)  Unmarried  individual. For taxable years beginning after nineteen
 hundred ninety-six, the city standard deduction of a city resident indi-
 vidual who is not married nor the head of a household  nor  a  surviving
 spouse nor an individual [whose federal exemption amount is zero] WHO IS
 CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven
 thousand  five  hundred dollars; for taxable years beginning in nineteen
 hundred ninety-six, such standard deduction shall be seven thousand four
 hundred dollars; for taxable years beginning in nineteen  hundred  nine-
 ty-five,  such  standard  deduction  shall  be  six thousand six hundred
 dollars; and for taxable years beginning after nineteen hundred  eighty-
 nine  and  before  nineteen hundred ninety-five, such standard deduction
 shall be six thousand dollars.
   § 5. Section 11-1712 of the administrative code of  the  city  of  New
 York  is  amended  by adding two new subdivisions (u) and (v) to read as
 follows:
   (U) ALIMONY MODIFICATIONS. (1) IN THE CASE OF  APPLICABLE  ALIMONY  OR
 SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A)  THERE  SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY
 APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER
 DURING THE TAXABLE YEAR.
   (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA-
 BLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS RECEIVED  BY  THE  TAXPAYER
 DURING THE TAXABLE YEAR.
   (2)  (A)  THE  TERM  "ALIMONY  OR SEPARATE MAINTENANCE PAYMENTS" MEANS
 PAYMENTS AS DEFINED UNDER SECTION SEVENTY-ONE OF  THE  INTERNAL  REVENUE
 CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97.
   (B)  THE  TERM  "APPLICABLE  ALIMONY OR SEPARATE MAINTENANCE PAYMENTS"
 MEANS PAYMENTS MADE  UNDER  AN  ALIMONY  OR  SEPARATION  INSTRUMENT  (AS
 DEFINED  IN  SECTION  SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT
 IMMEDIATELY PRIOR TO THE  ENACTMENT  OF  PUBLIC  LAW  115-97)  THAT  WAS
 EXECUTED  AFTER  DECEMBER  THIRTY-FIRST,  TWO THOUSAND EIGHTEEN, AND ANY
 DIVORCE OR SEPARATION INSTRUMENT EXECUTED ON OR  BEFORE  SUCH  DATE  AND

 S. 7509--A                         75                         A. 9509--A
 
 MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE
 AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION.
   (V) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN
 THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING
 EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A)  THERE  SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY
 APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  RECEIVED  BY  THE
 TAXPAYER DURING THE TAXABLE YEAR.
   (B)  THERE  SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY
 APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR.
   (2) APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  AND  MOVING
 EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTION ONE
 HUNDRED  THIRTY-TWO  AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY, OF
 THE INTERNAL REVENUE CODE IMMEDIATELY PRIOR TO THE ENACTMENT  OF  PUBLIC
 LAW 115-97.
   §  6. Subdivision (a) of section 11-1715 of the administrative code of
 the city of New York, as amended by section 5 of part HH of  chapter  57
 of the laws of 2010, is amended to read as follows:
   (a)  General.  If federal taxable income of a city resident individual
 is determined by itemizing deductions OR CLAIMING THE  FEDERAL  STANDARD
 DEDUCTION  from  his OR HER federal adjusted gross income, such resident
 individual may elect to deduct his OR HER city  itemized  deduction  [in
 lieu  of] OR CLAIM his OR HER city standard deduction. The city itemized
 deduction of a city resident individual means the total amount of his OR
 HER deductions from federal adjusted gross income  ALLOWED,  other  than
 federal  deductions  for personal exemptions, as provided in the laws of
 the United States for the taxable year, AS SUCH DEDUCTIONS EXISTED IMME-
 DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with  the  modifica-
 tions  specified  in this section, except as provided for under subdivi-
 sions (f) and (g) of this section.
   § 7. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART KK
 
   Section 1. Paragraph (b) of subdivision 6-a of section 208 of the  tax
 law,  as  amended  by section 5-a of part T of chapter 59 of the laws of
 2015, is amended to read as follows:
   (b) "Exempt CFC income" means (I) the income required to  be  included
 in  the  taxpayer's  federal  gross income pursuant to subsection (a) of
 section 951 of the internal revenue code, received  from  a  corporation
 that  is  conducting  a  unitary  business  with the taxpayer but is not
 included in a combined report with the taxpayer, AND (II) TO THE  EXTENT
 NOT INCLUDED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH, SUCH INCOME REQUIRED
 TO  BE  INCLUDED  IN  THE  TAXPAYER'S  FEDERAL  GROSS INCOME PURSUANT TO
 SUBSECTION (A) OF SUCH SECTION 951  OF  THE  INTERNAL  REVENUE  CODE  BY
 REASON OF SUBSECTION (A) OF SECTION 965 OF THE INTERNAL REVENUE CODE, AS
 ADJUSTED  BY SUBSECTION (B) OF SECTION 965 OF THE INTERNAL REVENUE CODE,
 AND WITHOUT REGARD TO SUBSECTION (C) OF SUCH SECTION,  RECEIVED  FROM  A
 CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER,
 less,  (III)  in  the  discretion  of  the  commissioner,  any  interest
 deductions directly or indirectly attributable to that income.  In  lieu
 of  subtracting  from its exempt CFC income the amount of those interest
 deductions, the taxpayer may make a revocable  election  to  reduce  its
 total  exempt  CFC  income  by forty percent. If the taxpayer makes this
 election, the taxpayer must also make  the  elections  provided  for  in

 S. 7509--A                         76                         A. 9509--A
 
 paragraph  (b)  of  subdivision six of this section and paragraph (c) of
 this subdivision. If the taxpayer subsequently  revokes  this  election,
 the  taxpayer must revoke the elections provided for in paragraph (b) of
 subdivision six of this section and paragraph (c) of this subdivision. A
 taxpayer  which does not make this election because it has no exempt CFC
 income will not be precluded from making those other elections.
   § 2. Subparagraph 6 of paragraph (a) of subdivision 9 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:
   (6) any amount treated as dividends pursuant to section  seventy-eight
 of  the  internal revenue code TO THE EXTENT THAT SUCH DIVIDENDS ARE NOT
 INCLUDED IN THE COMPUTATION OF THE DEDUCTION ALLOWED UNDER  SECTION  TWO
 HUNDRED FIFTY OF SUCH CODE;
   §  3.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
 amended by adding a new subparagraph 23 to read as follow:
   (23)  THE  AMOUNT  OF  ANY  FEDERAL  DEDUCTION  ALLOWED  PURSUANT   TO
 SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE.
   §  4. Paragraph 1 of subsection (c) of section 1085 of the tax law, as
 amended by section 13-a of part Q of chapter 60 of the laws of 2016,  is
 amended to read as follows:
   (1) If any taxpayer fails to file a declaration of estimated tax under
 article  nine-A  of  this chapter, or fails to pay all or any part of an
 amount which is applied as an installment against such estimated tax, it
 shall be deemed to have made an underpayment  of  estimated  tax.  There
 shall  be  added to the tax for the taxable year an amount at the under-
 payment rate set by the commissioner pursuant to  section  one  thousand
 ninety-six  of  this article, or if no rate is set, at the rate of seven
 and one-half percent per annum upon the amount of the  underpayment  for
 the  period  of the underpayment but not beyond the fifteenth day of the
 [third] FOURTH month following the close of the taxable year.  PROVIDED,
 HOWEVER,  THAT,  FOR  TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,
 TWO THOUSAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND  EIGHTEEN,
 NO  AMOUNT SHALL BE ADDED TO THE TAX WITH RESPECT TO THE PORTION OF SUCH
 TAX RELATED TO THE AMOUNT OF ANY INTEREST DEDUCTIONS DIRECTLY  OR  INDI-
 RECTLY ATTRIBUTABLE TO THE AMOUNT INCLUDED IN EXEMPT CFC INCOME PURSUANT
 TO  SUBPARAGRAPH  (II)  OF PARAGRAPH (B) OF SUBDIVISION SIX-A OF SECTION
 TWO HUNDRED EIGHT OF THIS CHAPTER OR THE FORTY PERCENT REDUCTION OF SUCH
 EXEMPT CFC INCOME IN  LIEU  OF  INTEREST  ATTRIBUTION  IF  THE  ELECTION
 DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION SIX-A OF SUCH SECTION IS MADE.
 The amount of the underpayment shall be, with respect to any installment
 of  estimated  tax  computed on the basis of either the preceding year's
 tax or the second  preceding  year's  tax,  the  excess  of  the  amount
 required  to be paid over the amount, if any, paid on or before the last
 day prescribed for such payment or, with respect to any  other  install-
 ment of estimated tax, the excess of the amount of the installment which
 would  be required to be paid if the estimated tax were equal to ninety-
 one percent of the tax shown on the return for the taxable year  (or  if
 no  return  was filed, ninety-one percent of the tax for such year) over
 the amount, if any, of the installment paid on or before  the  last  day
 prescribed  for  such  payment.  In  any case in which there would be no
 underpayment  if  "eighty  percent"  were  substituted  for  "ninety-one
 percent"  each  place it appears in this subsection, the addition to the
 tax shall be equal to  seventy-five  percent  of  the  amount  otherwise
 determined.  No  underpayment shall be deemed to exist with respect to a
 declaration or installment otherwise due on or after the termination  of
 existence of the taxpayer.

 S. 7509--A                         77                         A. 9509--A
 
   § 5. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2017.
 
                                  PART LL
 
   Section  1.  The  state finance law is amended by adding a new section
 92-gg to read as follows:
   § 92-GG. CHARITABLE GIFTS TRUST FUND. 1. THERE IS  HEREBY  ESTABLISHED
 IN THE JOINT CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE
 STATE  COMPTROLLER  A  SPECIAL  FUND  PURSUANT TO SECTION ELEVEN OF THIS
 CHAPTER TO BE KNOWN AS THE "CHARITABLE GIFTS TRUST FUND".
   2. MONEYS IN THE CHARITABLE GIFTS TRUST FUND SHALL  BE  KEPT  SEPARATE
 FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF
 THE  COMPTROLLER  OR THE COMMISSIONER OF TAXATION AND FINANCE. PROVIDED,
 HOWEVER THAT ANY MONEYS 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,
 NO MONEYS FROM THE CHARITABLE GIFTS TRUST FUND SHALL BE  TRANSFERRED  TO
 ANY  OTHER FUND, NOR SHALL MONEYS FROM THE FUND BE USED TO MAKE PAYMENTS
 FOR ANY PURPOSE OTHER THAN THE PURPOSES SET FORTH  IN  SUBDIVISIONS  TWO
 AND FOUR OF THIS SECTION.
   4.  THE  CHARITABLE  GIFTS  TRUST  FUND  SHALL  HAVE  TWO SEPARATE AND
 DISTINCT ACCOUNTS, AS SET FORTH IN PARAGRAPHS A AND B OF  THIS  SUBDIVI-
 SION.  MONEYS  IN  EACH  OF THE ACCOUNTS SHALL BE KEPT SEPARATE FROM AND
 SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS OF ANY OTHER ACCOUNT WITH-
 IN THE FUND.
   A. THE "HEALTH CHARITABLE ACCOUNT" SHALL CONSIST OF GRANTS,  GIFTS  OR
 BEQUESTS  RECEIVED BY THE STATE, AND ALL OTHER MONEYS CREDITED OR TRANS-
 FERRED THERETO FROM ANY OTHER FUND OR SOURCE.  MONEYS  OF  SUCH  ACCOUNT
 SHALL  ONLY BE EXPENDED FOR THE SUPPORT OF SERVICES RELATING TO PRIMARY,
 PREVENTIVE, AND INPATIENT HEALTH CARE, ROUTINE DENTAL AND  VISION  CARE,
 HUNGER   PREVENTION  AND  NUTRITIONAL  ASSISTANCE,  AND  OTHER  SERVICES
 PROVIDED TO NEW YORK STATE RESIDENTS WITH THE OVERALL GOAL  OF  ENSURING
 THAT  NEW  YORK  STATE  RESIDENTS HAVE ACCESS TO QUALITY HEALTH CARE AND
 OTHER RELATED SERVICES.
   B. THE "ELEMENTARY AND SECONDARY EDUCATION CHARITABLE  ACCOUNT"  SHALL
 CONSIST  OF  GRANTS,  GIFTS  OR  BEQUESTS  RECEIVED BY THE STATE FOR THE
 SUPPORT OF ELEMENTARY AND SECONDARY EDUCATION FOR CHILDREN IN THE  STATE
 AND ALL OTHER MONEYS CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND
 OR  SOURCE.  MONEYS  OF  SUCH  ACCOUNT  SHALL  ONLY  BE EXPENDED FOR THE
 PROVISION OF ELEMENTARY AND SECONDARY  EDUCATION  FOR  CHILDREN  IN  THE
 STATE.
   § 2.  Section 606 of the tax law is amended by adding a new subsection
 (iii) to read as follows:
   (III)  CREDIT  FOR  CONTRIBUTIONS  TO CERTAIN FUNDS. FOR TAXABLE YEARS
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, AN  INDIVID-
 UAL  TAXPAYER  SHALL  BE  ALLOWED A CREDIT AGAINST THE TAX IMPOSED UNDER
 THIS ARTICLE FOR AN AMOUNT EQUAL TO EIGHTY-FIVE PERCENT  OF  THE  AMOUNT
 CONTRIBUTED  BY  THE  TAXPAYER  DURING THE IMMEDIATELY PRECEDING TAXABLE
 YEAR TO ANY OR ALL OF THE FOLLOWING ACCOUNTS WITHIN THE CHARITABLE GIFTS
 TRUST FUND SET FORTH IN SECTION NINETY-TWO-GG OF THE STATE FINANCE  LAW:
 THE  HEALTH CHARITABLE ACCOUNT ESTABLISHED BY PARAGRAPH A OF SUBDIVISION
 FOUR OF SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW, OR THE ELEMENTA-

 S. 7509--A                         78                         A. 9509--A
 
 RY AND SECONDARY EDUCATION CHARITABLE ACCOUNT ESTABLISHED BY PARAGRAPH B
 OF SUBDIVISION FOUR OF SECTION NINETY-TWO-GG OF THE STATE FINANCE LAW.
   §  3.  Section  1604  of  the education law is amended by adding a new
 subdivision 44 to read as follows:
   44. TO ESTABLISH A CHARITABLE FUND, BY RESOLUTION OF THE TRUSTEES,  TO
 RECEIVE  CHARITABLE  MONETARY DONATIONS MADE TO SUCH FUND FOR USE BY THE
 DISTRICT FOR GENERAL EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE
 FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER  PROVIDED  BY  SECTION
 TEN OF THE GENERAL MUNICIPAL LAW. THE MONIES OF SUCH CHARITABLE FUND MAY
 BE  INVESTED  IN  THE  MANNER  PROVIDED BY SECTION ELEVEN OF THE GENERAL
 MUNICIPAL LAW.   ANY INTEREST EARNED OR CAPITAL  GAIN  REALIZED  ON  THE
 MONEY  SO INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT SUCH
 TIME AND IN SUCH AMOUNTS AS DETERMINED BY THE TRUSTEES,  THE  MONIES  OF
 SUCH  CHARITABLE  FUND  SHALL  BE  TRANSFERRED  TO THE SCHOOL DISTRICT'S
 GENERAL FUND FOR EXPENDITURE CONSISTENT WITH THE CHARITABLE PURPOSES  OF
 THE  FUND,  PROVIDED THAT THE AMOUNT OF TAXES TO BE LEVIED BY THE SCHOOL
 DISTRICT FOR ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD  TO  ANY
 SUCH  TRANSFER.  THE SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING OF ALL
 SUCH DEPOSITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES.
   § 4. Section 1709 of the education law is  amended  by  adding  a  new
 subdivision 12-b to read as follows:
   12-B.  TO  ESTABLISH A CHARITABLE FUND, BY RESOLUTION OF THE BOARD, TO
 RECEIVE CHARITABLE MONETARY DONATIONS MADE TO SUCH FUND FOR USE  BY  THE
 DISTRICT FOR GENERAL EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE
 FUND  SHALL  BE  DEPOSITED AND SECURED IN THE MANNER PROVIDED BY SECTION
 TEN OF THE GENERAL MUNICIPAL LAW. THE MONIES OF SUCH CHARITABLE FUND MAY
 BE INVESTED IN THE MANNER PROVIDED BY  SECTION  ELEVEN  OF  THE  GENERAL
 MUNICIPAL  LAW.    ANY  INTEREST  EARNED OR CAPITAL GAIN REALIZED ON THE
 MONEY SO INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT  SUCH
 TIME  AND IN SUCH AMOUNTS AS DETERMINED BY THE BOARD, THE MONIES OF SUCH
 CHARITABLE FUND SHALL BE TRANSFERRED TO THE  SCHOOL  DISTRICT'S  GENERAL
 FUND  FOR  EXPENDITURE  CONSISTENT  WITH  THE CHARITABLE PURPOSES OF THE
 FUND, PROVIDED THAT THE AMOUNT OF TAXES  TO  BE  LEVIED  BY  THE  SCHOOL
 DISTRICT  FOR  ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD TO ANY
 SUCH TRANSFER. THE SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING  OF  ALL
 SUCH DEPOSITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES.
   §  5.  Section  2590-h of the education law is amended by adding a new
 subdivision 54 to read as follows:
   54. TO ESTABLISH A CHARITABLE  FUND  TO  RECEIVE  CHARITABLE  MONETARY
 DONATIONS  MADE  TO  SUCH  FUND  FOR USE BY THE CITY SCHOOL DISTRICT FOR
 GENERAL EDUCATIONAL PURPOSES. THE MONIES OF SUCH CHARITABLE  FUND  SHALL
 BE  DEPOSITED  AND  SECURED IN THE MANNER PROVIDED BY SECTION TEN OF THE
 GENERAL MUNICIPAL LAW.  THE  MONIES  OF  SUCH  CHARITABLE  FUND  MAY  BE
 INVESTED IN THE MANNER PROVIDED BY SECTION ELEVEN OF THE GENERAL MUNICI-
 PAL  LAW.  ANY  INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO
 INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND. AT SUCH TIME  AND
 IN  SUCH  AMOUNTS  AS  DETERMINED  BY THE CHANCELLOR, THE MONIES OF SUCH
 CHARITABLE FUND SHALL BE  TRANSFERRED  TO  THE  CITY  SCHOOL  DISTRICT'S
 GENERAL  FUND FOR EXPENDITURE CONSISTENT WITH THE CHARITABLE PURPOSES OF
 THE FUND, PROVIDED THAT THE AMOUNT OF TAXES TO BE LEVIED BY THE CITY FOR
 ANY SCHOOL YEAR SHALL BE DETERMINED WITHOUT REGARD TO ANY SUCH TRANSFER.
 THE CITY SCHOOL DISTRICT SHALL MAINTAIN AN ACCOUNTING OF ALL SUCH DEPOS-
 ITS, INTEREST OR CAPITAL GAIN, TRANSFERS, AND EXPENDITURES.
   § 6. The general municipal law is amended by adding two  new  sections
 6-t and 6-u to read as follows:

 S. 7509--A                         79                         A. 9509--A
 
   §  6-T.  CHARITABLE GIFTS RESERVE FUND.  1. THE GOVERNING BOARD OF ANY
 COUNTY OR NEW YORK CITY MAY ESTABLISH A RESERVE FUND TO BE  KNOWN  AS  A
 CHARITABLE  GIFTS  RESERVE  FUND, THE MONEYS OF WHICH ARE TO BE USED FOR
 THE PAYMENT OF HEALTH CARE EXPENSES AND MAY BE USED TO DEFRAY THE  LOCAL
 SOCIAL  SERVICES  DISTRICT'S  YEARLY  NET  SHARE  OF  MEDICAL ASSISTANCE
 EXPENDITURES.
   2. SUCH FUND MAY RECEIVE CHARITABLE CONTRIBUTIONS FROM PROPERTY OWNERS
 OF THE COUNTY OR NEW YORK CITY.
   3. THE MONEYS IN SUCH FUND SHALL  BE  DEPOSITED  AND  SECURED  IN  THE
 MANNER  PROVIDED BY SECTION TEN OF THIS ARTICLE. THE GOVERNING BOARD, OR
 THE CHIEF FISCAL OFFICER OF SUCH  COUNTY,  OR  NEW  YORK  CITY,  IF  THE
 GOVERNING  BOARD  SHALL DELEGATE SUCH DUTY TO HIM OR HER, MAY INVEST THE
 MONEYS IN SUCH FUND IN THE MANNER PROVIDED BY  SECTION  ELEVEN  OF  THIS
 ARTICLE.  ANY  INTEREST  EARNED OR CAPITAL GAIN REALIZED ON THE MONEY SO
 DEPOSITED OR INVESTED SHALL ACCRUE TO AND BECOME PART OF SUCH FUND.  THE
 SEPARATE  IDENTITY  OF  SUCH FUND SHALL BE MAINTAINED WHETHER ITS ASSETS
 CONSIST OF CASH OR INVESTMENTS OR BOTH.
   4. AT THE END OF THE FISCAL YEAR, THE GOVERNING BOARD OF THE COUNTY OR
 NEW YORK CITY, WITHIN SIXTY DAYS OF THE CLOSE OF THE FISCAL YEAR,  SHALL
 TRANSFER  THE  FUNDS  TO THE GENERAL FUND OR OTHER FUND OF THE MUNICIPAL
 CORPORATION FOR THE PURPOSE OF PAYING HEALTH  CARE  EXPENSES,  INCLUDING
 THE LOCAL SOCIAL SERVICES DISTRICT'S YEARLY NET SHARE OF MEDICAL ASSIST-
 ANCE EXPENDITURES.
   5. THE GOVERNING BOARD SHALL ESTABLISH A PROCEDURE FOR PROPERTY OWNERS
 OF  THE  COUNTY OR NEW YORK CITY TO MAKE CONTRIBUTIONS TO THE CHARITABLE
 GIFTS RESERVE FUND, WHICH SHALL  INCLUDE  THE  PROVISION  OF  A  WRITTEN
 ACKNOWLEDGMENT OF THE GIFT TO THE CONTRIBUTOR.
   6.  NOTHING  IN  THIS  SECTION SHALL RELIEVE THE LOCAL SOCIAL SERVICES
 DISTRICT OF ITS ONGOING OBLIGATION  TO  PAY  THE  YEARLY  NET  SHARE  OF
 MEDICAL  ASSISTANCE EXPENDITURES, NOR RELIEVE A LOCAL DISTRICT OF SOCIAL
 SERVICES OF ITS STATUTORY  AND  REGULATORY  FUNCTIONS  IN  THE  ADMINIS-
 TRATION,  SUPERVISION AND OPERATION OF THE MEDICAL ASSISTANCE PROGRAM IN
 ITS LOCALITY.
   § 6-U. CHARITABLE GIFTS RESERVE FUND. 1. THE GOVERNING  BOARD  OF  ANY
 CITY WITH A POPULATION LESS THAN ONE MILLION, TOWN OR VILLAGE MAY ESTAB-
 LISH A RESERVE FUND TO BE KNOWN AS A CHARITABLE GIFTS RESERVE FUND.
   2. SUCH FUND MAY RECEIVE CHARITABLE CONTRIBUTIONS FROM PROPERTY OWNERS
 OF THE TOWN, VILLAGE OR CITY.
   3.  THE  MONEYS  IN  SUCH  FUND  SHALL BE DEPOSITED AND SECURED IN THE
 MANNER PROVIDED BY SECTION TEN OF THIS ARTICLE. THE GOVERNING BOARD,  OR
 THE CHIEF FISCAL OFFICER OF SUCH TOWN, VILLAGE OR CITY, IF THE GOVERNING
 BOARD  SHALL  DELEGATE SUCH DUTY TO HIM OR HER, MAY INVEST THE MONEYS IN
 SUCH FUND IN THE MANNER PROVIDED BY SECTION ELEVEN OF THIS ARTICLE.  ANY
 INTEREST EARNED OR CAPITAL GAIN REALIZED ON THE MONEY  SO  DEPOSITED  OR
 INVESTED  SHALL  ACCRUE  TO  AND  BECOME PART OF SUCH FUND. THE SEPARATE
 IDENTITY OF SUCH FUND SHALL BE MAINTAINED WHETHER ITS ASSETS CONSIST  OF
 CASH OR INVESTMENTS OR BOTH.
   4.  AT  THE  END  OF THE FISCAL YEAR, THE GOVERNING BOARD OF THE TOWN,
 VILLAGE OR CITY, WITHIN SIXTY DAYS OF THE CLOSE OF THE FISCAL YEAR,  MAY
 TRANSFER  THE  FUNDS  TO THE GENERAL FUND OR OTHER FUND OF THE MUNICIPAL
 CORPORATION, SO THAT THE FUNDS MAY BE USED FOR CHARITABLE PURPOSES.
   5. THE GOVERNING BOARD SHALL ESTABLISH A PROCEDURE FOR PROPERTY OWNERS
 OF THE TOWN, VILLAGE OR CITY TO MAKE  CONTRIBUTIONS  TO  THE  CHARITABLE
 GIFTS  RESERVE  FUND,  WHICH  SHALL  INCLUDE  THE PROVISION OF A WRITTEN
 ACKNOWLEDGMENT OF THE GIFT TO THE CONTRIBUTOR.

 S. 7509--A                         80                         A. 9509--A

   § 7. The real property tax law is amended  by  adding  a  new  section
 980-a to read as follows:
   §  980-A.  TAX  CREDITS  FOR  CONTRIBUTIONS TO CERTAIN FUNDS. 1. (A) A
 MUNICIPAL CORPORATION THAT HAS ESTABLISHED A FUND PURSUANT  TO  SUBDIVI-
 SION  FORTY-FOUR  OF  SECTION SIXTEEN HUNDRED FOUR OF THE EDUCATION LAW,
 SUBDIVISION TWELVE-B OF SECTION SEVENTEEN HUNDRED NINE OF THE  EDUCATION
 LAW,  SUBDIVISION  FIFTY-FOUR OF SECTION TWENTY-FIVE HUNDRED NINETY-H OF
 THE EDUCATION LAW, OR SECTION SIX-T OR SIX-U OF  THE  GENERAL  MUNICIPAL
 LAW,  MAY  ADOPT  A  LOCAL  LAW,  OR IN THE CASE OF A SCHOOL DISTRICT, A
 RESOLUTION, AUTHORIZING A TAX CREDIT TO BE  PROVIDED  PURSUANT  TO  THIS
 SECTION  FOR CONTRIBUTIONS TO SUCH FUND. FOR PURPOSES OF THIS SECTION, A
 MUNICIPAL CORPORATION THAT HAS ESTABLISHED SUCH A  FUND  AND  AUTHORIZED
 SUCH A CREDIT SHALL BE REFERRED TO AS A "PARTICIPATING" MUNICIPAL CORPO-
 RATION.
   (B)  ON  AND AFTER DECEMBER FIRST, TWO THOUSAND EIGHTEEN, THE OWNER OR
 OWNERS OF REAL PROPERTY SHALL BE ALLOWED A CREDIT AGAINST THE REAL PROP-
 ERTY TAXES OF A  PARTICIPATING  MUNICIPAL  CORPORATION  THAT  HAVE  BEEN
 IMPOSED  UPON SUCH PROPERTY. THE AMOUNT OF SUCH CREDIT SHALL EQUAL NINE-
 TY-FIVE PERCENT OF THE AMOUNT CONTRIBUTED BY ONE OR MORE OF  THE  OWNERS
 OF  SUCH PROPERTY DURING THE "ASSOCIATED CREDIT YEAR" AS DEFINED IN THIS
 SECTION, TO ANY OR ALL OF THE FUNDS ESTABLISHED BY SUCH MUNICIPAL CORPO-
 RATION, SUBJECT TO THE LIMIT ESTABLISHED PURSUANT TO  PARAGRAPH  (C)  OF
 THIS SUBDIVISION, IF ANY.
   (C) THE PARTICIPATING MUNICIPAL CORPORATION MAY ESTABLISH A LIMIT UPON
 THE  AMOUNT  OF  SUCH  CREDIT TO BE ALLOWED IN ANY GIVEN FISCAL YEAR, IN
 WHICH CASE THE AMOUNT OF SUCH CREDIT  SHALL  NOT  EXCEED  THE  LIMIT  SO
 ESTABLISHED.    ANY  SUCH LIMIT SHALL BE ADOPTED BY LOCAL LAW, OR IN THE
 CASE OF A SCHOOL DISTRICT, BY RESOLUTION, WHICH LOCAL LAW OR  RESOLUTION
 MAY  EITHER  BE THE SAME AS OR SEPARATE FROM THE LOCAL LAW OR RESOLUTION
 THAT INITIALLY AUTHORIZED  THE  CREDIT.  ONCE  SUCH  A  LIMIT  HAS  BEEN
 ADOPTED,  IT  MAY  BE AMENDED OR REPEALED THEREAFTER BY LOCAL LAW, OR IN
 THE CASE OF A SCHOOL DISTRICT, BY RESOLUTION,  PROVIDED  THAT  ANY  SUCH
 AMENDMENT  OR  REPEAL  SHALL  ONLY  APPLY  TO TAXES OF THE PARTICIPATING
 MUNICIPAL CORPORATION FOR FISCAL YEARS COMMENCING AFTER THE ADOPTION  OF
 SUCH  LOCAL  LAW  OR  RESOLUTION.  A COPY OF ANY LOCAL LAW OR RESOLUTION
 ESTABLISHING, AMENDING OR REPEALING SUCH A LIMIT SHALL  BE  PROVIDED  TO
 THE  COLLECTING  OFFICER  WHO  COLLECTS  THE  TAXES OF THE PARTICIPATING
 MUNICIPAL CORPORATION.
   2. FOR PURPOSES OF THIS SECTION, THE "ASSOCIATED CREDIT YEAR" SHALL BE
 THE TWELVE-MONTH PERIOD DURING WHICH THE OWNER OF THE PROPERTY HAS  MADE
 A CONTRIBUTION DESCRIBED IN SUBDIVISION ONE OF THIS SECTION THAT ENDS ON
 THE  LAST  DAY PRESCRIBED BY LAW ON WHICH THE TAXES OF THE PARTICIPATING
 MUNICIPAL CORPORATION MAY BE PAID WITHOUT INTEREST OR PENALTIES, SUBJECT
 TO THE FOLLOWING:
   (A) WHERE SUCH TAXES ARE PAYABLE IN  INSTALLMENTS,  SUCH  TWELVE-MONTH
 PERIOD  SHALL  END  ON THE LAST DAY PRESCRIBED BY LAW ON WHICH THE FIRST
 INSTALLMENT OF SUCH TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES.
   (B) WHERE A PARTICIPATING  MUNICIPAL  CORPORATION  IS  A  CITY  SCHOOL
 DISTRICT THAT IS SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, SUCH
 TWELVE-MONTH PERIOD SHALL END ON THE LAST DAY PRESCRIBED BY LAW ON WHICH
 CITY  TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES, OR IF APPLICABLE,
 ON THE LAST DAY PRESCRIBED BY LAW ON WHICH THE FIRST INSTALLMENT OF SUCH
 TAXES MAY BE PAID WITHOUT INTEREST OR PENALTIES.
   (C) EACH SUCH TWELVE-MONTH PERIOD SHALL BE DETERMINED  WITHOUT  REGARD
 TO  THE  POSSIBILITY  THAT  THE PERIOD PRESCRIBED BY LAW FOR PAYING SUCH
 TAXES WITHOUT INTEREST OR PENALTIES MAY BE EXTENDED DUE TO  A  DELAY  IN

 S. 7509--A                         81                         A. 9509--A
 
 THE  FIRST PUBLICATION OF THE COLLECTING OFFICER'S NOTICE AS PROVIDED BY
 SECTIONS THIRTEEN HUNDRED TWENTY-TWO OR THIRTEEN HUNDRED TWENTY-FOUR  OF
 THIS CHAPTER OR A COMPARABLE LAW, OR DUE TO AN EXECUTIVE ORDER ISSUED IN
 CONNECTION  WITH  A  STATE DISASTER EMERGENCY AS PROVIDED BY SUBDIVISION
 TWO OF SECTION NINE HUNDRED TWENTY-FIVE-A OF THIS CHAPTER.
   3. THE CREDIT AUTHORIZED BY THIS  SECTION  SHALL  BE  ADMINISTERED  AS
 FOLLOWS:
   (A)  THE  ADMINISTRATOR  OF THE ACCOUNT OR ITS DESIGNATED AGENT SHALL,
 UPON RECEIVING A CONTRIBUTION TO AN ACCOUNT SPECIFIED IN SUBDIVISION ONE
 OF THIS SECTION DURING A CREDIT YEAR, FURNISH THE PROPERTY OWNER WITH AN
 ACKNOWLEDGEMENT IN DUPLICATE. SUCH ACKNOWLEDGEMENT SHALL BE PROVIDED  ON
 A  FORM  PRESCRIBED  BY THE COMMISSIONER AND SHALL SPECIFY THE AMOUNT OF
 THE CONTRIBUTION, THE NAME AND  ADDRESS  OF  THE  DONOR,  THE  DATE  THE
 CONTRIBUTION WAS RECEIVED, THE AUTHORIZED SIGNATURE OF THE ADMINISTRATOR
 OR AGENT, AND SUCH OTHER INFORMATION AS THE COMMISSIONER SHALL REQUIRE.
   (B)  AFTER  RECEIVING  SUCH AN ACKNOWLEDGEMENT, THE PROPERTY OWNER MAY
 PRESENT IT TO THE APPROPRIATE COLLECTING OFFICER ON OR BEFORE  THE  LAST
 DAY  PRESCRIBED  BY  LAW  ON WHICH TAXES MAY BE PAID WITHOUT INTEREST OR
 PENALTY, TOGETHER WITH A CREDIT  CLAIM  ON  A  FORM  PRESCRIBED  BY  THE
 COMMISSIONER.    SUCH  CREDIT  CLAIM  FORM SHALL CONTAIN THE NAME OF THE
 PROPERTY OWNER OR OWNERS, THE DATE AND AMOUNT OF THE CONTRIBUTIONS  MADE
 TO  THE  ACCOUNT  DURING  THE ASSOCIATED CREDIT YEAR, THE ADDRESS OF THE
 PROPERTY TO WHICH THE CREDIT CLAIM RELATES, AND SUCH  OTHER  INFORMATION
 AS THE COMMISSIONER SHALL REQUIRE.  NOTWITHSTANDING ANY PROVISION OF LAW
 TO  THE  CONTRARY,  THE COLLECTING OFFICER SHALL THEREUPON BE AUTHORIZED
 AND DIRECTED TO GRANT THE PROPERTY OWNER A TAX CREDIT EQUAL  TO  NINETY-
 FIVE  PERCENT OF THE AMOUNT OF THE CONTRIBUTIONS MADE DURING THE ASSOCI-
 ATED CREDIT YEAR AS SPECIFIED ON THE ACKNOWLEDGEMENT, AND TO REDUCE  THE
 TAX  LIABILITY  ON THE PARCEL ACCORDINGLY, PROVIDED THAT SUCH CREDIT MAY
 NOT EXCEED THE LIMIT ESTABLISHED BY THE PARTICIPATING  MUNICIPAL  CORPO-
 RATION  PURSUANT TO PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, IF
 SUCH A LIMIT HAS BEEN ESTABLISHED. WHERE TAXES ARE PAYABLE  IN  INSTALL-
 MENTS,  IF  THE  CREDIT EXCEEDS THE AMOUNT OF THE FIRST INSTALLMENT, THE
 EXCESS SHALL BE APPLIED TO FUTURE INSTALLMENTS UNTIL EXHAUSTED.
   (C) IF THE PROPERTY OWNER FAILS  TO  PRESENT  THE  ACKNOWLEDGMENT  AND
 CREDIT  CLAIM  FORM  TO THE COLLECTING OFFICER ON OR BEFORE THE LAST DAY
 PRESCRIBED BY LAW ON WHICH TAXES MAY BE PAID WITHOUT INTEREST OR  PENAL-
 TY,  HE OR SHE MAY PRESENT THE SAME TO THE CHIEF FISCAL OFFICER OR CHIEF
 FINANCIAL OFFICER OF THE PARTICIPATING MUNICIPAL CORPORATION,  OR  TO  A
 MEMBER  OF  HIS OR HER STAFF. SUCH OFFICER SHALL THEREUPON BE AUTHORIZED
 AND DIRECTED TO GRANT THE PROPERTY OWNER A  REFUND  OF  SCHOOL  DISTRICT
 TAXES  IN THE AMOUNT OF THE CREDIT, WHICH AMOUNT SHALL BE EQUAL TO NINE-
 TY-FIVE PERCENT OF THE TOTAL CONTRIBUTIONS MADE  DURING  THE  ASSOCIATED
 CREDIT  YEAR,  PROVIDED  THAT  SUCH  REFUND  SHALL NOT EXCEED THE SCHOOL
 DISTRICT TAXES THAT HAVE BEEN PAID ON THE PROPERTY OR THE  LIMIT  ESTAB-
 LISHED  PURSUANT TO PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, IF
 ANY. PROVIDED FURTHER, THAT NO INTEREST SHALL BE PAYABLE ON SUCH  REFUND
 IF  PAID WITHIN FORTY-FIVE DAYS OF THE RECEIPT OF THE ACKNOWLEDGMENT AND
 CREDIT CLAIM FORM. THE OWNER OF THE PROPERTY MAY FILE SUCH REFUND  CLAIM
 WITH  THE  AUTHORIZED  OFFICER  AT ANY TIME DURING THE THREE YEAR PERIOD
 BEGINNING IMMEDIATELY AFTER THE LAST DAY SUCH TAXES WERE PAYABLE WITHOUT
 INTEREST OR PENALTY.
   4. THE AMOUNT OF THE ITEMIZED DEDUCTION  THAT  MAY  BE  CLAIMED  BY  A
 TAXPAYER  UNDER  SECTION SIX HUNDRED FIFTEEN OF THE TAX LAW WITH RESPECT
 TO THE TAXES PAID ON SUCH PROPERTY MAY NOT  EXCEED  THE  AMOUNT  OF  THE
 TAXES  OF  A  PARTICIPATING MUNICIPAL CORPORATION THAT HAVE BEEN IMPOSED

 S. 7509--A                         82                         A. 9509--A
 
 UPON SUCH PROPERTY MINUS THE AMOUNT OF THE CREDIT PROVIDED  PURSUANT  TO
 THIS SECTION.
   §  8.  This act shall take effect immediately; provided, however, that
 the amendments to section 2590-h of the education law  made  by  section
 five  of  this act shall not affect the expiration and reversion of such
 section and shall expire and be deemed repealed therewith; and  provided
 further  that  if  section  2590-h  of  the  education law expires or is
 repealed and is reverted prior  to  the  effective  date  of  this  act,
 section five of this act shall not take effect.
 
                                  PART MM
 
   Section  1.  The tax law is amended by adding a new article 24 to read
 as follows:
                                 ARTICLE 24
                     EMPLOYER COMPENSATION EXPENSE TAX
 SECTION 850. DEFINITIONS.
         851. EMPLOYER ELECTION.
         852. IMPOSITION AND RATE OF TAX.
         853. PASS THROUGH OF TAX.
         854. PAYMENT OF TAX.
         855. EMPLOYEE CREDIT.
         856. DEPOSIT AND DISPOSITION OF REVENUE.
         857. PROCEDURAL PROVISIONS.
   § 850. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   (A) EMPLOYER. EMPLOYER MEANS AN EMPLOYER THAT IS REQUIRED  BY  SECTION
 SIX  HUNDRED SEVENTY-ONE OF THIS CHAPTER TO DEDUCT AND WITHHOLD TAX FROM
 WAGES.
   (B) ELECTING EMPLOYER. ELECTING EMPLOYER IS AN EMPLOYER THAT HAS  MADE
 THE  ELECTION  PROVIDED  FOR  IN SECTION EIGHT HUNDRED FIFTY-ONE OF THIS
 ARTICLE.
   (C) PAYROLL EXPENSE. PAYROLL EXPENSE MEANS WAGES AND  COMPENSATION  AS
 DEFINED  IN SECTIONS 3121 AND 3231 OF THE INTERNAL REVENUE CODE (WITHOUT
 REGARD TO SECTION 3121(A)(1) AND SECTION 3231(E)(2)(A)(I)), PAID TO  ALL
 COVERED EMPLOYEES.
   (D)  COVERED EMPLOYEE. COVERED EMPLOYEE MEANS AN EMPLOYEE OF AN ELECT-
 ING EMPLOYER WHO IS REQUIRED TO HAVE AMOUNTS WITHHELD UNDER SECTION  SIX
 HUNDRED  SEVENTY-ONE  OF  THIS  CHAPTER  AND  RECEIVES  ANNUAL WAGES AND
 COMPENSATION FROM HIS OR  HER  EMPLOYER  OF  MORE  THAN  FORTY  THOUSAND
 DOLLARS ANNUALLY.
   § 851. EMPLOYER ELECTION. (A) ANY EMPLOYER WHO EMPLOYS COVERED EMPLOY-
 EES  IN THE STATE SHALL BE ALLOWED TO MAKE AN ELECTION TO BE TAXED UNDER
 THIS ARTICLE.
   (B) IN ORDER TO BE EFFECTIVE, THE ELECTION MUST BE MADE BY (1)  UNANI-
 MOUS  CONSENT  OF ALL OWNERS OF THE EMPLOYER AT THE TIME THE ELECTION IS
 MADE IF THE EMPLOYER IS NOT A CORPORATION; OR (2) IF THE EMPLOYER  IS  A
 FOR-PROFIT  OR  NOT-FOR-PROFIT CORPORATION, BY ANY OFFICER OR MANAGER OF
 THE EMPLOYER WHO IS AUTHORIZED UNDER THE LAW  OF  THE  STATE  WHERE  THE
 CORPORATION IS INCORPORATED OR UNDER THE EMPLOYER'S ORGANIZATIONAL DOCU-
 MENTS  TO  MAKE  THE ELECTION AND WHO REPRESENTS TO HAVING SUCH AUTHORI-
 ZATION UNDER PENALTY OF PERJURY; OR (3) IF THE EMPLOYER IS A  TRUST,  BY
 THE  UNANIMOUS  CONSENT  OF  ALL  TRUSTEES;  OR (4) IF THE EMPLOYER IS A
 GOVERNMENTAL ENTITY, BY THE CHIEF EXECUTIVE OFFICER OF SUCH GOVERNMENTAL
 ENTITY.
   (C) THE ELECTION MUST BE MADE BY OCTOBER FIRST OF A CALENDAR YEAR  AND
 WILL  TAKE  EFFECT  FOR  THE IMMEDIATELY SUCCEEDING CALENDAR YEAR. IF AN

 S. 7509--A                         83                         A. 9509--A
 
 ELECTION IS MADE AFTER OCTOBER FIRST OF A CALENDAR YEAR, IT  WILL  FIRST
 TAKE EFFECT IN THE SECOND SUCCEEDING CALENDAR YEAR.
   §  852.  IMPOSITION  AND  RATE  OF TAX. A TAX IS HEREBY IMPOSED ON THE
 PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES. FOR TWO
 THOUSAND NINETEEN, THE TAX SHALL BE EQUAL TO ONE AND ONE-HALF PERCENT OF
 THE PAYROLL EXPENSE PAID BY  ELECTING  EMPLOYERS  TO  COVERED  EMPLOYEES
 DURING  THE  CALENDAR QUARTER. FOR TWO THOUSAND TWENTY, THE TAX SHALL BE
 EQUAL TO THREE PERCENT OF THE PAYROLL EXPENSE PAID BY ELECTING EMPLOYERS
 TO COVERED EMPLOYEES DURING THE CALENDAR QUARTER. FOR TWO THOUSAND TWEN-
 TY-ONE AND THEREAFTER, THE TAX SHALL BE EQUAL TO  FIVE  PERCENT  OF  THE
 PAYROLL  EXPENSE  PAID BY ELECTING EMPLOYERS TO COVERED EMPLOYEES DURING
 THE CALENDAR QUARTER. AN ELECTING EMPLOYER SHALL ONLY BE SUBJECT TO  THE
 TAX  IMPOSED  UNDER  THIS  ARTICLE  ON  THE  PAYROLL EXPENSE PAID TO ANY
 COVERED EMPLOYEE DURING THE CALENDAR YEAR IN EXCESS  OF  FORTY  THOUSAND
 DOLLARS.
   §  853.  PASS THROUGH OF TAX. AN EMPLOYER CANNOT DEDUCT FROM THE WAGES
 OR COMPENSATION OF AN EMPLOYEE ANY AMOUNT THAT  REPRESENTS  ALL  OR  ANY
 PORTION OF THE TAX IMPOSED ON THE EMPLOYER UNDER THIS ARTICLE.
   §  854.  PAYMENT  OF  TAX. (A) EMPLOYERS WITH PAYROLL EXPENSE. THE TAX
 IMPOSED ON THE PAYROLL EXPENSE OF ELECTING EMPLOYERS UNDER SECTION EIGHT
 HUNDRED FIFTY-TWO OF THIS ARTICLE MUST BE PAID  AT  THE  SAME  TIME  THE
 ELECTING  EMPLOYER  IS  REQUIRED  TO  REMIT  PAYMENTS  UNDER SECTION SIX
 HUNDRED SEVENTY-FOUR OF THIS CHAPTER; PROVIDED  HOWEVER,  THAT  ELECTING
 EMPLOYERS SUBJECT TO THE PROVISIONS IN SECTION NINE OF THIS CHAPTER MUST
 PAY  THE  TAX ON THE PAYROLL EXPENSE AT THE SAME TIME AS THE WITHHOLDING
 TAX REMITTED UNDER THE ELECTRONIC PAYMENT REPORTING SYSTEM AND THE ELEC-
 TRONIC FUNDS TRANSFER SYSTEM AUTHORIZED BY SECTION NINE OF THIS CHAPTER.
   (B) RESPONSIBLE PERSON LIABILITY. ANY OFFICER, DIRECTOR OR EMPLOYEE OF
 A CORPORATION OR OF A DISSOLVED CORPORATION, ANY EMPLOYEE OF A  PARTNER-
 SHIP,  ANY EMPLOYEE OR MANAGER OF A LIMITED LIABILITY COMPANY, ANY TRUS-
 TEE OF A TRUST, OR ANY EMPLOYEE OF  AN  INDIVIDUAL  PROPRIETORSHIP,  ANY
 PARTNER  OF  A PARTNERSHIP OR ANY MEMBER OF A LIMITED LIABILITY COMPANY,
 WHO AS SUCH OFFICER, DIRECTOR, EMPLOYEE, MANAGER, PARTNER OR  MEMBER  IS
 UNDER A DUTY TO ACT FOR SUCH CORPORATION, PARTNERSHIP, LIMITED LIABILITY
 COMPANY  OR  INDIVIDUAL PROPRIETORSHIP IN COMPLYING WITH ANY REQUIREMENT
 OF THIS ARTICLE, SHALL BE JOINTLY AND SEVERALLY LIABLE WITH THE ELECTING
 EMPLOYER FOR ANY TAX, PENALTY OR INTEREST OWED UNDER THIS ARTICLE.
   § 855. EMPLOYEE CREDIT. A COVERED EMPLOYEE SHALL BE ALLOWED  A  CREDIT
 AGAINST  THE  TAX  IMPOSED  UNDER  ARTICLE  TWENTY-TWO  OF THIS CHAPTER,
 COMPUTED PURSUANT TO THE PROVISIONS OF SUBSECTION (AAAA) OF SECTION  SIX
 HUNDRED SIX OF THIS CHAPTER.
   § 856. DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, INTEREST, PENAL-
 TIES,  AND  FEES  COLLECTED  OR  RECEIVED BY THE COMMISSIONER UNDER THIS
 ARTICLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF
 SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER.
   § 857. 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 UNDER THIS ARTICLE.

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   (B) NOTWITHSTANDING THE PROVISIONS OF SECTION SIX HUNDRED NINETY-SEVEN
 OF THIS CHAPTER, IF THE COMMISSIONER DETERMINES THAT A PERSON IS  LIABLE
 FOR  ANY  TAX,  PENALTY  OR  INTEREST  UNDER  THIS  ARTICLE  PURSUANT TO
 SUBSECTION (B) OF SECTION EIGHT HUNDRED FIFTY-FOUR OF THIS ARTICLE, UPON
 REQUEST  IN  WRITING  OF SUCH PERSON, THE COMMISSIONER SHALL DISCLOSE IN
 WRITING TO SUCH PERSON (1) THE NAME OF ANY OTHER PERSON THE COMMISSIONER
 HAS DETERMINED TO BE LIABLE FOR SUCH TAX, PENALTY OR INTEREST UNDER THIS
 ARTICLE FOR THE ELECTING EMPLOYER, AND (2) WHETHER THE COMMISSIONER  HAS
 ATTEMPTED  TO  COLLECT  SUCH  TAX,  PENALTY  OR INTEREST FROM SUCH OTHER
 PERSON OR ELECTING EMPLOYER,  THE  GENERAL  NATURE  OF  SUCH  COLLECTION
 ACTIVITIES, AND THE AMOUNT COLLECTED.
   (C)  NOTWITHSTANDING  ANY  OTHER LAW TO THE CONTRARY, THE COMMISSIONER
 MAY REQUIRE THAT ALL FILINGS OF FORMS OR RETURNS UNDER THIS ARTICLE MUST
 BE FILED ELECTRONICALLY AND ALL PAYMENTS OF TAX MUST BE  PAID  ELECTRON-
 ICALLY.    THE  COMMISSIONER  MAY  PRESCRIBE  THE  METHODS FOR QUARTERLY
 FILINGS BY ELECTING EMPLOYERS, INCLUDING BUT NOT LIMITED TO, THE  INCLU-
 SION OF SPECIFIC EMPLOYEE-LEVEL DETAIL.
   §  2. Section 606 of the tax law is amended by adding a new subsection
 (aaaa) to read as follows:
   (AAAA) ARTICLE TWENTY-FOUR EMPLOYEE CREDIT. A COVERED EMPLOYEE  OF  AN
 ELECTING  EMPLOYER 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  "COVERED EMPLOYEE" AND "ELECTING EMPLOYER" SHALL
 HAVE THE SAME MEANINGS AS UNDER SECTION  EIGHT  HUNDRED  FIFTY  OF  THIS
 CHAPTER.    (1)  FOR TWO THOUSAND NINETEEN, THE CREDIT SHALL BE EQUAL TO
 THE PRODUCT OF (I) THE COVERED  EMPLOYEE'S  WAGES  AND  COMPENSATION  IN
 EXCESS  OF  FORTY THOUSAND DOLLARS RECEIVED DURING THE TAX YEAR FROM THE
 COVERED EMPLOYER THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE AND (II) ONE
 AND ONE-HALF PERCENT AND (III) THE RESULT OF ONE MINUS A  FRACTION,  THE
 NUMERATOR  OF  WHICH SHALL BE THE TAX IMPOSED ON THE COVERED EMPLOYEE AS
 DETERMINED PURSUANT TO SECTION SIX HUNDRED ONE OF  THIS  ARTICLE  BEFORE
 THE  APPLICATION  OF  ANY  CREDITS  FOR  THE APPLICABLE TAX YEAR AND THE
 DENOMINATOR OF WHICH SHALL BE THE COVERED EMPLOYEE'S TAXABLE  INCOME  AS
 DETERMINED PURSUANT TO THIS ARTICLE FOR THE APPLICABLE TAX YEAR. (2) FOR
 TWO THOUSAND TWENTY, THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF (I) THE
 COVERED  EMPLOYEE'S  WAGES  AND COMPENSATION IN EXCESS OF FORTY THOUSAND
 DOLLARS RECEIVED DURING THE TAX YEAR FROM THE COVERED EMPLOYER THAT  ARE
 SUBJECT  TO  TAX UNDER THIS ARTICLE AND (II) THREE PERCENT AND (III) THE
 RESULT OF ONE MINUS A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE  TAX
 IMPOSED  ON  THE  COVERED EMPLOYEE AS DETERMINED PURSUANT TO SECTION SIX
 HUNDRED ONE OF THIS ARTICLE BEFORE THE APPLICATION OF  ANY  CREDITS  FOR
 THE  APPLICABLE  TAX  YEAR  AND  THE  DENOMINATOR  OF WHICH SHALL BE THE
 COVERED EMPLOYEE'S TAXABLE INCOME AS DETERMINED PURSUANT TO THIS ARTICLE
 FOR THE APPLICABLE TAX YEAR. (3) FOR TWO THOUSAND TWENTY-ONE AND  THERE-
 AFTER,  THE  CREDIT  SHALL  BE  EQUAL  TO THE PRODUCT OF (I) THE COVERED
 EMPLOYEE'S WAGES AND COMPENSATION IN EXCESS OF  FORTY  THOUSAND  DOLLARS
 RECEIVED  DURING THE TAX YEAR FROM THE COVERED EMPLOYER THAT ARE SUBJECT
 TO TAX UNDER THIS ARTICLE AND (II) FIVE PERCENT AND (III) THE RESULT  OF
 ONE MINUS A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE TAX IMPOSED ON
 THE  COVERED  EMPLOYEE AS DETERMINED PURSUANT TO SECTION SIX HUNDRED ONE
 OF THIS ARTICLE BEFORE THE APPLICATION OF ANY CREDITS FOR THE APPLICABLE
 TAX YEAR AND THE DENOMINATOR OF WHICH SHALL BE  THE  COVERED  EMPLOYEE'S
 TAXABLE INCOME AS DETERMINED PURSUANT TO THIS ARTICLE FOR THE APPLICABLE
 TAX  YEAR.   IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION
 FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE
 EXCESS  ALLOWED  FOR A TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING

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 YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH  YEAR
 OR YEARS.
   §  3.  Subdivision  1  of  section 171-a of the tax law, as amended by
 section 15 of part AAA of chapter 59 of the laws of 2017, 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-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 comptroller'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 taxpay-
 ers shall be entitled under the provisions  of  such  articles  of  this
 chapter. The commissioner and the comptroller shall maintain a system of
 accounts  showing  the amount of revenue collected or received from each
 of the taxes imposed by such articles. The comptroller, after  reserving
 the  amount  to  pay such refunds or reimbursements, shall, on or before
 the tenth day of each month, pay into the state treasury to  the  credit
 of  the general fund all revenue deposited under this section during the
 preceding calendar month and remaining to the  comptroller's  credit  on
 the  last  day  of such preceding month, (i) except that the comptroller
 shall pay to the state department of  social  services  that  amount  of
 overpayments  of  tax  imposed by article twenty-two of this chapter and
 the interest on such amount which is certified to the comptroller by the
 commissioner as the amount  to  be  credited  against  past-due  support
 pursuant to subdivision six of section one hundred seventy-one-c of this
 article,  (ii) and except that the comptroller shall pay to the New York
 state higher education services corporation and the state university  of
 New  York or the city university of New York respectively that amount of
 overpayments of tax imposed by article twenty-two of  this  chapter  and
 the interest on such amount which is certified to the comptroller by the
 commissioner as the amount to be credited against the amount of defaults
 in  repayment  of guaranteed student loans and state university loans or
 city university loans  pursuant  to  subdivision  five  of  section  one
 hundred  seventy-one-d and subdivision six of section one hundred seven-
 ty-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, thir-

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 ty, 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 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.
   § 4. Subdivision 1 of section 171-a of the  tax  law,  as  amended  by
 section  16 of part AAA of chapter 59 of the laws of 2017, 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-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

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 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 articles of this chapter out of which amount
 the comptroller shall pay any refunds or reimbursements to which taxpay-
 ers shall be entitled under the provisions  of  such  articles  of  this
 chapter. The commissioner and the comptroller shall maintain a system of
 accounts  showing  the amount of revenue collected or received from each
 of the taxes imposed by such articles. The comptroller, after  reserving
 the  amount  to  pay such refunds or reimbursements, shall, on or before
 the tenth day of each month, pay into the state treasury to  the  credit
 of  the general fund all revenue deposited under this section during the
 preceding calendar month and remaining to the  comptroller's  credit  on
 the  last  day  of such preceding month, (i) except that the comptroller
 shall pay to the state department of  social  services  that  amount  of
 overpayments  of  tax  imposed by article twenty-two of this chapter and
 the interest on such amount which is certified to the comptroller by the
 commissioner as the amount  to  be  credited  against  past-due  support
 pursuant to subdivision six of section one hundred seventy-one-c of this
 article,  (ii) and except that the comptroller shall pay to the New York
 state higher education services corporation and the state university  of
 New  York or the city university of New York respectively that amount of
 overpayments of tax imposed by article twenty-two of  this  chapter  and
 the interest on such amount which is certified to the comptroller by the
 commissioner as the amount to be credited against the amount of defaults
 in  repayment  of guaranteed student loans and state university loans or
 city university loans  pursuant  to  subdivision  five  of  section  one
 hundred  seventy-one-d and subdivision six of section one hundred seven-
 ty-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, thir-
 ty, 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  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

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 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.  Subdivisions 2, 3 and paragraph (a) of subdivision 5 of section
 92-z of the state finance law, subdivision 2 as amended by section 30 of
 part T of chapter 57 of the laws of 2007, and subdivision  3  and  para-
 graph  (a)  of  subdivision 5 as added by section 1 of part I of chapter
 383 of the laws of 2001, are amended to read as follows:
   2. Such fund shall consist  of  [twenty-five]  (A)  FIFTY  percent  of
 receipts  from the imposition of personal income taxes pursuant to arti-
 cle 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
 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
 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.
   (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

 S. 7509--A                         89                         A. 9509--A
 
 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
 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 shall be deposited in the reven-
 ue bond tax fund until the greater of [twenty-five] 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
 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 [six] 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 appropriated and paid to the author-
 ized issuers the amounts necessary for the authorized  issuers  to  meet
 their  requirements  for the current fiscal year pursuant to the certif-
 icate or certificates submitted by the director 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

 S. 7509--A                         90                         A. 9509--A
 
 cash requirements of authorized issuers  during  the  subsequent  fiscal
 year.
   §  6. Subdivision 5 of section 68-c of the state finance law, as added
 by section 2 of part I of chapter 383 of the laws of 2001, 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 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 of the tax law.
   §  7.  This act shall take effect immediately; provided, however, that
 the amendments to subdivision 1 of section 171-a of the tax law made  by
 section three of this act shall not affect the expiration of such subdi-
 vision and shall expire therewith, when upon such date the provisions of
 section four of this act shall take effect.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 3. This act shall take effect immediately, provided,  however,  that
 the applicable effective date of Parts A through MM of this act shall be
 as specifically set forth in the last section of such Parts.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7509--B
 
                             I N  S E N A T E
 
                             January 18, 2018
                                ___________
 
 A  BUDGET  BILL,  submitted by the Governor pursuant to article seven of
   the Constitution -- read twice and ordered printed, and  when  printed
   to  be  committed to the Committee on Finance -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee  -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee

 AN ACT intentionally omitted (Part A); intentionally omitted  (Part  B);
   intentionally  omitted  (Part  C);  intentionally omitted (Part D); to
   amend the general municipal law, the education law, the state  finance
   law,  the real property tax law and the tax law, in relation to making
   technical corrections to various statutes  impacting  property  taxes;
   and  to repeal subsection (bbb) of section 606 of the tax law, section
   3-d of the general municipal law and section 2023-b of  the  education
   law,  relating  thereto  (Part  E); intentionally omitted (Part F); to
   amend the real property tax law, in relation to  assessment  ceilings;
   and  to amend chapter 475 of the laws of 2013, amending the real prop-
   erty tax law relating to assessment ceilings for local public  utility
   mass real property, in relation to the effectiveness thereof (Part G);
   to  amend  the  tax law and the administrative code of the city of New
   York, in relation to extending the statute of limitations for  assess-
   ing tax on amended returns (Part H); to amend the tax law, in relation
   to  providing  for  employee  wage  reporting  consistency between the
   department of taxation and finance and the department of  labor  (Part
   I);  to  amend  the tax law, in relation to sales and compensating use
   taxes imposed on food and beverages sold by  restaurants  and  similar
   establishments (Part J); to amend the tax law, in relation to allowing
   sharing  with  the comptroller information regarding unwarranted fixed
   and final debt (Part K); intentionally omitted (Part L); intentionally
   omitted (Part M); intentionally omitted (Part N); intentionally  omit-
   ted  (Part  O);  to amend the tax law, in relation to the empire state
   child credit (Part P); to amend the tax law, in relation to  extending
   the  hire  a  veteran  credit for an additional two years (Part Q); to
   amend the labor law and the tax law, in relation to enhancing the  New
   York  youth  jobs  program  (Part  R); intentionally omitted (Part S);
   intentionally omitted (Part T); intentionally omitted (Part U); inten-
   tionally omitted (Part V); to  amend  the  tax  law,  in  relation  to
   exempting  from  sales  and use tax certain veterinary drugs and medi-
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12674-06-8

 S. 7509--B                          2
 
   cines and removing the refund/credit therefor (Part W); to  amend  the
   tax  law, in relation to providing relief from sales tax liability for
   certain partners of a limited partnership and  members  of  a  limited
   liability  company  (Part X); intentionally omitted (Part Y); to amend
   part A of chapter 61 of the laws of 2017, amending the tax law  relat-
   ing  to  the imposition of sales and compensating use taxes in certain
   counties, in relation to extending the revenue distribution provisions
   for the additional rates of sales and  use  tax  of  Genesee,  Monroe,
   Onondaga  and  Orange  counties  (Part Z); intentionally omitted (Part
   AA); intentionally omitted (Part BB); intentionally omitted (Part CC);
   intentionally omitted (Part DD);  to  amend  the  racing,  pari-mutuel
   wagering  and  breeding  law,  in  relation to adjusting the franchise
   payment, and authorizing  night  races  under  certain  circumstances;
   creating  an equine drug testing advisory committee; and providing for
   the repeal of certain provisions upon  the  expiration  thereof  (Part
   EE);  to  amend  the racing, pari-mutuel wagering and breeding law, in
   relation to providing funds for the aftercare of retired horses  (Part
   FF);  to  amend  the racing, pari-mutuel wagering and breeding law, in
   relation to licenses for simulcast facilities, sums relating to  track
   simulcast,  simulcast of out-of-state thoroughbred races, simulcasting
   of races run by  out-of-state  harness  tracks  and  distributions  of
   wagers;  to amend chapter 281 of the laws of 1994 amending the racing,
   pari-mutuel wagering and breeding  law  and  other  laws  relating  to
   simulcasting and to amend chapter 346 of the laws of 1990 amending the
   racing,  pari-mutuel wagering and breeding law and other laws relating
   to simulcasting and the imposition of certain taxes,  in  relation  to
   extending  certain  provisions thereof; and to amend the racing, pari-
   mutuel wagering and breeding law, in  relation  to  extending  certain
   provisions  thereof  (Part  GG);  intentionally  omitted (Part HH); to
   amend the tax law, in relation to commissions paid to the operator  of
   a  video  lottery  facility;  to repeal certain provisions of such law
   relating thereto; providing for the repeal of certain provisions  upon
   expiration thereof (Part II); to amend the tax law and the administra-
   tive  code  of the city of New York, in relation to addressing changes
   made to the internal revenue code by Public Law 115-97 (Part  JJ);  to
   amend the tax law and the administrative code of the city of New York,
   in  relation  to  federal  gross income and federal deductions allowed
   pursuant to the internal revenue code (Part KK); intentionally omitted
   (Part LL); intentionally omitted (Part MM); to amend the real property
   tax law, in relation to establishing the senior capped  real  property
   school  tax  rate; and to amend the tax law, in relation to increasing
   the property tax relief credit (Part NN); to amend chapter 97  of  the
   laws of 2011, amending the general municipal law and the education law
   relating to establishing limits upon school district and local govern-
   ment  tax  levies,  in  relation  to eliminating the expiration of and
   making permanent certain provisions thereof (Part OO);  to  amend  the
   tax  law,  in  relation  to  tax on the furnishing of utility services
   (Part PP); to amend the public service law,  in  relation  to  certain
   costs  and  expenses  (Part  QQ); to amend the tax law, in relation to
   increasing the  exemption  for  pensions  and  annuities  for  certain
   persons  (Part  RR);  to  amend  the  legislative  law, in relation to
   requiring assent of two-thirds of the members for any bill that enacts
   or increases tax revenues (Part SS); to amend the state  finance  law,
   in  relation to establishing a spending cap and increasing the maximum
   capacity of the rainy day fund (Part TT); to amend  the  tax  law,  in
   relation  to  establishing  a  credit for customers of certain private

 S. 7509--B                          3
 
   water utilities, in relation to requiring a feasibility study relating
   to the Jericho Water District; and providing for the  repeal  of  such
   provisions upon the expiration thereof (Part UU); to amend the tax law
   and  the  administrative  code of the city of New York, in relation to
   business income base and certain small business taxpayers  (Part  VV);
   to  amend the real property tax law, in relation to the STAR exemption
   for property owned by small businesses (Part WW);  to  amend  the  tax
   law,  in  relation  to minimum wage reimbursement credit (Part XX); to
   amend  the  tax  law,  in  relation  to  extending  the  minimum  wage
   reimbursement credit to seasonal employees (Part YY); to amend the tax
   law, in relation to tax credits for qualified pass-through manufactur-
   ers  (Part  ZZ);  to  amend  the real property tax law, in relation to
   providing an exemption for security cameras installed on real property
   owned by a public utility  (Part  AAA);  to  amend  the  tax  law,  in
   relation  to providing an exemption for tangible personal property and
   services sold by a cemetery; in relation to  establishing  an  amnesty
   program for cemetery corporations (Part BBB); to amend the tax law and
   the  parks,  recreation  and historic preservation law, in relation to
   the tax credit for rehabilitation of historic properties  (Part  CCC);
   to  amend  the  tax law, in relation to establishing a personal income
   tax credit to preceptor clinicians who provide  preceptor  instruction
   (Part DDD); to amend the tax law, in relation to a television writers'
   and  directors'  fees and salaries credit (Part EEE); to amend the tax
   law and the administrative code of the city of New York,  in  relation
   to  making  technical corrections thereto; to repeal subsection (i) of
   section 612 of the tax law relating to the elimination of the personal
   income tax deduction for percentage depletion; and to  repeal  certain
   provisions  of  the  tax law relating thereto (Part FFF); to amend the
   tax law, in relation to the donation of a human organ (Part  GGG);  to
   amend  the  tax  law,  in  relation  to  the  musical  and  theatrical
   production credit; and to amend part HH of chapter 59 of the  laws  of
   2014  amending  the  tax  law  relating  to  a  musical and theatrical
   production credit, in relation to extending the effectiveness of  such
   provisions  (Part HHH); to amend the education law and the tax law, in
   relation to  establishing  the  college  debt  freedom  account  pilot
   program  (Part III); to amend the tax law, in relation to establishing
   a reduction of certain taxpayer's federal adjusted gross  income,  for
   state personal income tax purposes, for student loan interest payments
   made  by the taxpayer (Part JJJ); to amend the tax law, in relation to
   establishing a residential fuel oil storage tank credit and to  direct
   the  office  of  temporary  and  disability  assistance to establish a
   program to assist eligible households in the replacement  of  residen-
   tial  fuel  oil storage tanks (Part KKK); to amend the tax law and the
   insurance law, in relation to credits for premiums paid for  long-term
   care  insurance policies (Part LLL); to amend the tax law, in relation
   to providing insurance corporations with a tax credit for  investments
   made  in  rural  business growth funds; and to amend the state finance
   law, in relation to establishing the New York  agriculture  and  rural
   jobs  fund  (Part MMM); to amend the tax law, in relation to exempting
   school buses and certain equipment from  sales  and  compensating  use
   tax;  and  to amend the education law, in relation to the extension of
   certain transportation contracts (Part NNN); to amend the tax law  and
   the education law, in relation to enacting the "education affordabili-
   ty  act"  (Part  OOO);  to  amend the racing, pari-mutuel wagering and
   breeding law, in relation to the definition  and  licensing  fees  for
   dealer-controlled  electronic table games (Part PPP); to amend the tax

 S. 7509--B                          4
 
   law, in relation to the percentage  of  free  play  allowance  credits
   (Part QQQ); to amend the racing, pari-mutuel wagering and breeding law
   and  the  penal law, in relation to allowing certain interactive poker
   games  (Part  RRR); to amend the general municipal law, in relation to
   participation in games of bingo by minors (Part SSS); to amend the tax
   law, in relation to the disposition of vender fees for  the  operation
   of  video  lottery  gaming at certain race tracks (Part TTT); to amend
   the racing, pari-mutuel wagering and breeding law, in relation to  the
   disposition of net revenues of regional off-track betting corporations
   to participating counties (Part UUU); to amend the racing, pari-mutuel
   wagering  and  breeding  law,  in  relation to creating the racing fan
   advisory council (Part VVV); to amend the racing, pari-mutuel wagering
   and breeding law, in relation to establishing the advisory council  on
   retired  race horses, within the New York state gaming commission, and
   providing for its powers and duties (Part WWW); to amend  the  racing,
   pari-mutuel  wagering  and  breeding law, in relation to regulation of
   sports betting (Part XXX); to amend the racing,  pari-mutuel  wagering
   and  breeding  law, in relation to funds held in trust by a franchised
   corporation for a recognized horsemen's organization  to  be  used  as
   collateral  to  secure  workers' compensation insurance coverage (Part
   YYY); to amend the tax law, in  relation  to  exempting  coin-operated
   tire inflation equipment from sales and use taxes (Part ZZZ); to amend
   the real property tax law, in relation to extending certain provisions
   exempting  lands  devoted  to  agricultural  or horticultural use from
   taxation (Part AAAA); to amend the education law and the tax  law,  in
   relation  to  expanding  the  New  York  state  college choice tuition
   savings program to include costs of elementary and secondary education
   (Part BBBB); to amend the tax law, in relation to  the  imposition  of
   tax  on  combative  sport matches or exhibitions (Part CCCC); to amend
   the tax law, in relation to gifts for the New York state general  fund
   (Part DDDD); to amend the tax law and the economic development law, in
   relation  to  the  creation  of  the empire state digital gaming media
   production credit; and providing for the  repeal  of  such  provisions
   upon  expiration  thereof (Part EEEE); to amend the civil practice law
   and rules, in relation to enacting  the  "local  government  jobs  and
   revenue protection act of 2018" (Part FFFF); and to amend the tax law,
   in  relation  to the disposition of a portion of sales taxes collected
   for hotel occupancy in cities having a population of  one  million  or
   more (Part GGGG)
 
   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 2018-2019
 state  fiscal  year.  Each  component  is wholly contained within a Part
 identified as Parts A through GGGG. The effective date for each  partic-
 ular  provision  contained  within  such  Part  is set forth in the last
 section of such Part.  Any provision in any section contained  within  a
 Part,  including the effective date of the Part, which makes a reference
 to a section "of this act", when used in connection with that particular
 component, shall be deemed  to  mean  and  refer  to  the  corresponding
 section of the Part in which it is found. Section three of this act sets
 forth the general effective date of this act.
                                  PART A

 S. 7509--B                          5
 
                           Intentionally Omitted
 
                                  PART B
 
                           Intentionally Omitted
 
                                  PART C

                           Intentionally Omitted
 
                                  PART D
 
                           Intentionally Omitted
 
                                  PART E
 
   Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED.
   § 1-a. Section 3-d of the general municipal law is REPEALED.
   § 1-b. Section 2023-b of the education law is REPEALED.
   §  2. The general municipal law is amended by adding a new section 3-d
 to read as follows:
   § 3-D. CERTIFICATION OF COMPLIANCE WITH TAX LEVY LIMIT.  1.  UPON  THE
 ADOPTION  OF  THE BUDGET OF A LOCAL GOVERNMENT UNIT, THE CHIEF EXECUTIVE
 OFFICER OR BUDGET OFFICER OF SUCH LOCAL GOVERNMENT UNIT SHALL CERTIFY TO
 THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE  THAT
 THE  BUDGET  SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT PRESCRIBED IN
 SECTION THREE-C OF THIS ARTICLE AND, IF THE GOVERNING BODY OF THE  LOCAL
 GOVERNMENT  UNIT  DID ENACT A LOCAL LAW OR APPROVE A RESOLUTION TO OVER-
 RIDE THE TAX LEVY LIMIT, THAT SUCH LOCAL LAW OR  RESOLUTION  WAS  SUBSE-
 QUENTLY  REPEALED. SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER
 PRESCRIBED BY THE STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSION-
 ER OF TAXATION AND FINANCE.
   2. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, IF  SUCH  A  CERTIF-
 ICATION  HAS  BEEN  MADE AND THE ACTUAL TAX LEVY OF THE LOCAL GOVERNMENT
 UNIT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS AMOUNT  SHALL  BE
 PLACED  IN  RESERVE AND USED IN THE MANNER PRESCRIBED BY SUBDIVISION SIX
 OF SECTION THREE-C OF THIS ARTICLE, EVEN IF A TAX LEVY IN EXCESS OF  THE
 TAX  LEVY  LIMIT HAD BEEN AUTHORIZED FOR THE APPLICABLE FISCAL YEAR BY A
 DULY ADOPTED LOCAL LAW OR RESOLUTION.
   3. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  EVERY  LOCAL
 GOVERNMENT  UNIT  SHALL  REPORT BOTH ITS PROPOSED BUDGET AND ITS ADOPTED
 BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AT THE  TIME  AND  IN  THE
 MANNER  AS  HE OR SHE MAY PRESCRIBE, WHETHER OR NOT SUCH BUDGET HAS BEEN
 OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDIVISION.
   § 3. The education law is amended by adding a new  section  2023-b  to
 read as follows:
   §  2023-B.  CERTIFICATION  OF COMPLIANCE WITH TAX LEVY LIMIT. 1.  UPON
 THE ADOPTION OF THE BUDGET OF AN ELIGIBLE  SCHOOL  DISTRICT,  THE  CHIEF
 EXECUTIVE  OFFICER  OF  SUCH  SCHOOL DISTRICT SHALL CERTIFY TO THE STATE
 COMPTROLLER, THE COMMISSIONER OF TAXATION AND FINANCE  AND  THE  COMMIS-
 SIONER  THAT  THE  BUDGET  SO ADOPTED DOES NOT EXCEED THE TAX LEVY LIMIT
 PRESCRIBED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THIS  PART.    SUCH
 CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE STATE
 COMPTROLLER  IN  CONSULTATION  WITH  THE  COMMISSIONER  OF  TAXATION AND
 FINANCE AND THE COMMISSIONER.

 S. 7509--B                          6
 
   2. IF SUCH A CERTIFICATION HAS BEEN MADE AND THE ACTUAL  TAX  LEVY  OF
 THE  SCHOOL  DISTRICT  EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS
 AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER  PRESCRIBED  BY
 SUBDIVISION  FIVE  OF  SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART,
 EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN DULY AUTHOR-
 IZED FOR THE APPLICABLE FISCAL YEAR BY THE SCHOOL DISTRICT VOTERS.
   3.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY SCHOOL
 DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN-
 TY-THREE-A OF THIS PART SHALL REPORT BOTH ITS PROPOSED  BUDGET  AND  ITS
 ADOPTED  BUDGET  TO  THE OFFICE OF THE STATE COMPTROLLER AND THE COMMIS-
 SIONER AT THE TIME AND IN THE MANNER AS THEY MAY PRESCRIBE,  WHETHER  OR
 NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDI-
 VISION.
   §  4.  Subdivision  3  of  section 97-rrr of the state finance law, as
 amended by section 1 of part F of chapter 59 of the  laws  of  2015,  is
 amended to read as follows:
   3.  The  monies in such fund shall be appropriated for school property
 tax exemptions granted pursuant to the real property tax law and payable
 pursuant to section thirty-six hundred nine-e of the education law[, and
 for payments to the city of New York pursuant to section fifty-four-f of
 this chapter].
   § 5. Section 925-b of the real property tax law, as amended by chapter
 161 of the laws of 2006, is amended to read as follows:
   § 925-b. Extension; certain persons sixty-five years of age  or  over.
 Notwithstanding  any contrary provision of this chapter, or any general,
 special or local law, code or charter, the governing body of a municipal
 corporation other than a county may, by resolution adopted prior to  the
 levy  of any taxes on real property located within such municipal corpo-
 ration, authorize an extension of no more than five  business  days  for
 the payment of taxes without interest or penalty to any resident of such
 municipal corporation who has received an exemption pursuant to subdivi-
 sion four of section four hundred twenty-five or four hundred sixty-sev-
 en  of this chapter, OR A CREDIT PURSUANT TO SUBSECTION (EEE) OF SECTION
 SIX HUNDRED SIX OF THE TAX LAW, related to a principal residence located
 within such municipal corporation. If such an extension is granted,  and
 any  taxes are not paid by the final date so provided, those taxes shall
 be subject to the same interest and penalties that would have applied if
 no extension had been granted.
   § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop-
 erty tax law is relettered paragraph (f) and two new paragraphs (d)  and
 (e) are added to read as follows:
   (D)  IF  THE  TAXES  OF  A  CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE
 COLLECTED BY A COUNTY OFFICIAL, THE COUNTY SHALL HAVE THE SOLE AUTHORITY
 TO ESTABLISH A PARTIAL PAYMENT PROGRAM PURSUANT  TO  THIS  SECTION  WITH
 RESPECT TO THE TAXES SO COLLECTED.
   (E)  IF  THE TAXES OF A CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE NOT
 COLLECTED BY A COUNTY OFFICIAL, BUT ITS TAX BILLS ARE  PREPARED  BY  THE
 COUNTY,  OR  ITS  TAX  COLLECTION ACCOUNTING SOFTWARE IS PROVIDED BY THE
 COUNTY, THEN BEFORE THE CITY,  TOWN,  VILLAGE  OR  SCHOOL  DISTRICT  MAY
 IMPLEMENT  A  PARTIAL  PAYMENT PROGRAM PURSUANT TO THIS SECTION, IT MUST
 OBTAIN WRITTEN APPROVAL OF THE CHIEF EXECUTIVE OFFICER OF THE COUNTY  OR
 THE COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES.
   §  7.  Subparagraph  (B) of paragraph 7 of subsection (eee) of section
 606 of the tax law, as amended by section 1 of part G of chapter  59  of
 the laws of 2017, is amended to read as follows:

 S. 7509--B                          7
 
   (B)  Notwithstanding  any  provision of law to the contrary, the names
 and addresses of individuals who have applied for or are  receiving  the
 credit  authorized  by  this  subsection  may  be disclosed to assessors
 [and], county directors of real property tax services, AND MUNICIPAL TAX
 COLLECTING OFFICERS. In addition, where an agreement is in place between
 the  commissioner  and  the head of the tax department of another state,
 such information may be disclosed to such official or his or her  desig-
 nees. Such information shall be considered confidential and shall not be
 subject to further disclosure pursuant to the freedom of information law
 or otherwise.
   § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop-
 erty tax law, as added by section 1 of part B of chapter 389 of the laws
 of 1997 and as further amended by subdivision (b) of section 1 of part W
 of chapter 56 of the laws of 2010, is amended to read as follows:
   (g)  Computation  and  certification  by commissioner. It shall be the
 responsibility of the commissioner to compute the exempt amount for each
 assessing unit in each county in the  manner  provided  herein,  and  to
 certify the same to the assessor of each assessing unit and to the coun-
 ty  director  of real property tax services of each county. Such certif-
 ication shall be  made  at  least  twenty  days  before  the  last  date
 prescribed  by  law  for  the  filing  of the tentative assessment roll.
 PROVIDED, HOWEVER, THAT WHERE SCHOOL TAXES ARE LEVIED ON  A  PRIOR  YEAR
 ASSESSMENT  ROLL, OR ON A FINAL ASSESSMENT ROLL THAT WAS FILED MORE THAN
 ONE YEAR AFTER THE TENTATIVE ROLL WAS FILED, SUCH CERTIFICATION SHALL BE
 MADE NO LATER THAN FIFTEEN DAYS AFTER THE PUBLICATION OF THE DATA NEEDED
 TO COMPUTE THE BASE FIGURE FOR THE ENHANCED STAR EXEMPTION  PURSUANT  TO
 CLAUSE  (A)  OF  SUBPARAGRAPH (VI) OF PARAGRAPH (B) OF THIS SUBDIVISION,
 AND PROVIDED FURTHER, THAT  UPON  RECEIPT  OF  SUCH  CERTIFICATION,  THE
 ASSESSOR  SHALL  THEREUPON  BE  AUTHORIZED  AND  DIRECTED TO CORRECT THE
 ASSESSMENT ROLL TO REFLECT THE EXEMPT AMOUNT SO CERTIFIED, OR, IF ANOTH-
 ER PERSON HAS CUSTODY OR CONTROL OF THE ASSESSMENT ROLL, TO DIRECT  THAT
 PERSON TO MAKE THE APPROPRIATE CORRECTIONS.
   §  8. Paragraph 6 of subsection (eee) of section 606 of the tax law is
 amended by adding a new subparagraph (A) to read as follows:
   (A) A MARRIED COUPLE  MAY  NOT  RECEIVE  A  CREDIT  PURSUANT  TO  THIS
 SUBSECTION  ON  MORE  THAN  ONE RESIDENCE DURING ANY GIVEN TAXABLE YEAR,
 UNLESS LIVING APART DUE TO LEGAL SEPARATION. NOR MAY  A  MARRIED  COUPLE
 RECEIVE  A  CREDIT  PURSUANT  TO  THIS SUBSECTION ON ONE RESIDENCE WHILE
 RECEIVING AN EXEMPTION PURSUANT TO SECTION FOUR HUNDRED  TWENTY-FIVE  OF
 THE  REAL PROPERTY TAX LAW ON ANOTHER RESIDENCE, UNLESS LIVING APART DUE
 TO LEGAL SEPARATION.
   § 9. This act shall take effect immediately; provided,  however,  that
 section  3-d  of  the  general municipal law, as added by section two of
 this act, shall expire and be deemed repealed on the same  date  and  in
 the  same  manner  as  section  1 of part A of chapter 97 of the laws of
 2011, expires and is deemed repealed, and provided that  section  2023-b
 of  the  education  law,  as  added  by section three of this act, shall
 expire and be deemed repealed on the same date and in the same manner as
 section 2 of part A of chapter 97 of the laws of 2011,  expires  and  is
 deemed repealed, and provided further that the amendments to paragraph 6
 of  subsection (eee) of section 606 of the tax law made by section eight
 of this act shall take effect immediately and  shall  apply  to  taxable
 years beginning on or after January 1, 2016.
   REPEAL  NOTE:  Section  606(bbb)  of  the  Tax Law, section 3-d of the
 General Municipal Law and section 2023-b of the  Education  Law  collec-
 tively  constituted  the  enabling legislation for the tax freeze credit

 S. 7509--B                          8
 
 program.  By the terms of those statutes, the tax freeze credit was only
 applicable to taxable  years  2014,  2015  and  2016.  Therefore,  these
 provisions   no  longer  serve  a  purpose,  except  for  the  reporting
 provisions,  which  facilitate  the administration of the tax levy limit
 program and are being preserved in a reenacted section 3-d of the Gener-
 al Municipal Law and section 2023-b of the Education Law.
 
                                  PART F
 
                           Intentionally Omitted
 
                                  PART G
 
   Section 1. Section 4 of chapter 475 of the laws of 2013, amending  the
 real  property  tax law relating to assessment ceilings for local public
 utility mass real property, is amended to read as follows:
   § 4. This act shall take effect on the first of January of the  second
 calendar  year  commencing  after  this  act shall have become a law and
 shall apply to assessment rolls with taxable status dates  on  or  after
 such  date;  provided, however, that this act shall expire and be deemed
 repealed [four] EIGHT years after such  effective  date;  and  provided,
 further,  that  no assessment of local public utility mass real property
 appearing on the municipal assessment roll with a  taxable  status  date
 occurring  in the first calendar year after this act shall have become a
 law shall be less than ninety percent  or  more  than  one  hundred  ten
 percent  of  the  assessment  of  the same property on the date this act
 shall have become a law.
   § 2. Subdivision 3 of section 499-kkkk of the real property  tax  law,
 as  added  by  chapter  475  of  the laws of 2013, is amended to read as
 follows:
   3. (A) For assessment rolls with taxable status dates in each  of  the
 three  calendar  years  including  and  following the year in which this
 section shall take effect, the commissioner shall establish  no  assess-
 ment  ceiling  that is less than ninety percent or more than one hundred
 ten percent of the assessment of such local  public  utility  mass  real
 property  appearing  on  the  municipal  assessment  roll with a taxable
 status date occurring in the second preceding calendar  year  from  when
 this  section shall take effect, except that the commissioner may estab-
 lish assessment ceilings below the ninety percent level or above the one
 hundred ten percent level to take into account any change  in  level  of
 assessment  and/or  to take into account any additions or retirements to
 public utility mass real property or litigation affecting the  value  or
 taxable  status of the local public utility mass real property initiated
 prior to the effective date of this section.
   (B) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN  THE  YEARS  TWO
 THOUSAND  EIGHTEEN,  TWO  THOUSAND NINETEEN AND TWO THOUSAND TWENTY, THE
 COMMISSIONER SHALL ESTABLISH NO ASSESSMENT CEILING  THAT  IS  BELOW  THE
 LOWER LIMIT OR ABOVE THE UPPER LIMIT SPECIFIED IN THIS PARAGRAPH, EXCEPT
 THAT THE COMMISSIONER MAY ESTABLISH ASSESSMENT CEILINGS BELOW SUCH LOWER
 LIMIT OR ABOVE SUCH UPPER LIMIT TO TAKE INTO ACCOUNT ANY CHANGE IN LEVEL
 OF  ASSESSMENT  AND/OR TO TAKE INTO ACCOUNT ANY ADDITIONS OR RETIREMENTS
 TO PUBLIC UTILITY MASS REAL PROPERTY OR LITIGATION AFFECTING  THE  VALUE
 OR  TAXABLE STATUS OF THE LOCAL PUBLIC UTILITY MASS REAL PROPERTY INITI-
 ATED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.
   (I) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS  DATES  IN  TWO  THOUSAND
 EIGHTEEN,  THE  ASSESSMENT  CEILING  SHALL NOT BE LESS THAN SEVENTY-FIVE

 S. 7509--B                          9

 PERCENT OR MORE THAN ONE HUNDRED TWENTY-FIVE PERCENT OF  THE  ASSESSMENT
 OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI-
 PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO
 THOUSAND THIRTEEN.
   (II)  FOR  ASSESSMENT  ROLLS WITH TAXABLE STATUS DATES IN TWO THOUSAND
 NINETEEN, THE ASSESSMENT CEILING SHALL NOT BE LESS THAN FIFTY PERCENT OR
 MORE THAN ONE HUNDRED FIFTY PERCENT OF  THE  ASSESSMENT  OF  SUCH  LOCAL
 PUBLIC  UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICIPAL ASSESSMENT
 ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO THOUSAND THIR-
 TEEN.
   (III) FOR ASSESSMENT ROLLS WITH TAXABLE STATUS DATES IN  TWO  THOUSAND
 TWENTY,  THE  ASSESSMENT  CEILING  SHALL  NOT  BE  LESS THAN TWENTY-FIVE
 PERCENT OR MORE THAN ONE HUNDRED SEVENTY-FIVE PERCENT OF THE  ASSESSMENT
 OF SUCH LOCAL PUBLIC UTILITY MASS REAL PROPERTY APPEARING ON THE MUNICI-
 PAL ASSESSMENT ROLL WITH A TAXABLE STATUS DATE OCCURRING IN THE YEAR TWO
 THOUSAND THIRTEEN.
   §  3.  This act shall take effect immediately, provided, however, that
 the amendments to subdivision three of  section  499-kkkk  of  the  real
 property  tax  law  made by section two of this act shall not affect the
 repeal of such section and shall be deemed to be repealed therewith.
 
                                  PART H
 
   Section 1. Subsection (c) of section 683 of the tax law is amended  by
 adding a new paragraph 12 to read as follows:
   (12) AMENDED RETURNS.  EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE
 OF  THIS  SUBSECTION,  OR  AS OTHERWISE PROVIDED IN THIS SECTION WHERE A
 LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED  RETURN,
 AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF
 THE  AMENDED  RETURN),  INCLUDING  RECOVERY OF A PREVIOUSLY PAID REFUND,
 ATTRIBUTABLE TO A CHANGE OR CORRECTION ON  THE  AMENDED  RETURN  FROM  A
 PRIOR  RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED
 RETURN IS FILED.
   § 2. Subsection (c) of section 1083 of  the  tax  law  is  amended  by
 adding a new paragraph 12 to read as follows:
   (12) AMENDED RETURNS.  EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH THREE
 OF  THIS  SUBSECTION,  OR  AS OTHERWISE PROVIDED IN THIS SECTION WHERE A
 LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED  RETURN,
 AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF
 THE  AMENDED  RETURN),  INCLUDING  RECOVERY OF A PREVIOUSLY PAID REFUND,
 ATTRIBUTABLE TO A CHANGE OR CORRECTION ON  THE  AMENDED  RETURN  FROM  A
 PRIOR  RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED
 RETURN IS FILED.
   § 3. Subdivision (c) of section 11-1783 of the administrative code  of
 the  city  of New York is amended by adding a new paragraph 9 to read as
 follows:
   (9) AMENDED RETURNS.  EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH  THREE
 OF  THIS  SUBDIVISION,  OR AS OTHERWISE PROVIDED IN THIS SECTION WHERE A
 LONGER PERIOD OF TIME MAY APPLY, IF A TAXPAYER FILES AN AMENDED  RETURN,
 AN ASSESSMENT OF TAX (IF NOT DEEMED TO HAVE BEEN MADE UPON THE FILING OF
 THE  AMENDED  RETURN),  INCLUDING  RECOVERY OF A PREVIOUSLY PAID REFUND,
 ATTRIBUTABLE TO A CHANGE OR CORRECTION ON  THE  AMENDED  RETURN  FROM  A
 PRIOR  RETURN MAY BE MADE AT ANY TIME WITHIN ONE YEAR AFTER SUCH AMENDED
 RETURN IS FILED.
   § 4. This act shall take effect immediately and shall apply to amended
 returns filed on or after the effective date of this act.

 S. 7509--B                         10
 
                                  PART I
 
   Section  1.  Paragraph  1 of subdivision (d) of section 658 of the tax
 law, as amended by chapter 166 of the laws of 1991, is amended  to  read
 as follows:
   (1) The commissioner of taxation and finance may prescribe regulations
 and  instructions  requiring returns of information to be made and filed
 on or before February twenty-eighth of each year as to  the  payment  or
 crediting in any calendar year of amounts of six hundred dollars or more
 to  any taxpayer under this article. Such returns may be required of any
 person, including lessees or mortgagors of real  or  personal  property,
 fiduciaries, employers, and all officers and employees of this state, or
 of  any  municipal  corporation  or political subdivision of this state,
 having the control, receipt, custody, disposal or payment  of  interest,
 rents,  salaries,  wages,  premiums, annuities, compensations, remunera-
 tions, emoluments or other  fixed  or  determinable  gains,  profits  or
 income,  except interest coupons payable to bearer. Information required
 to be furnished pursuant to paragraph four of subsection (a) of  section
 six  hundred  seventy-four  on a quarterly combined withholding and wage
 reporting return covering [the last] EACH calendar quarter of each  year
 and relating to tax withheld on wages paid by an employer to an employee
 for [the full] EACH calendar [year] QUARTER, shall constitute the return
 of  information  required  to be made under this section with respect to
 such wages.
   § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section  674
 of the tax law, as amended by section 1 of subpart E of part VI of chap-
 ter 57 of the laws of 2009, is amended to read as follows:
   (A)  All  employers  described  in  paragraph one of subsection (a) of
 section six hundred seventy-one of  this  part,  including  those  whose
 wages paid are not sufficient to require the withholding of tax from the
 wages  of  any of their employees, all employers required to provide the
 wage reporting information for the employees  described  in  subdivision
 one  of  section  one  hundred  seventy-one-a  of  this chapter, and all
 employers  liable  for  unemployment  insurance  contributions  or   for
 payments  in  lieu of such contributions pursuant to article eighteen of
 the labor law, shall file a quarterly combined withholding, wage report-
 ing and unemployment insurance return detailing the  preceding  calendar
 quarter's  withholding  tax  transactions, such quarter's wage reporting
 information, SUCH QUARTER'S WITHHOLDING RECONCILIATION INFORMATION, such
 quarter's unemployment insurance contributions, and such  other  related
 information  as  the commissioner of taxation and finance or the commis-
 sioner of labor, as applicable, may prescribe. [In addition, the  return
 covering the last calendar quarter of each year shall also include with-
 holding reconciliation information for such calendar year.] Such returns
 shall  be  filed  no  later than the last day of the month following the
 last day of each calendar quarter.
   § 3. Paragraph 3 of subsection (v) of section 685 of the tax  law,  as
 amended  by  chapter  477  of  the  laws  of 1998, 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 [annual] QUARTERLY withholding  information
 relating  to  individual  employees on a quarterly combined withholding,
 wage reporting and unemployment insurance  return  covering  [the  last]
 EACH calendar quarter of a year, such employer shall, unless it is shown
 that  such  failure  is  due  to reasonable cause and not due to willful

 S. 7509--B                         11
 
 neglect, pay a penalty equal to the product of fifty dollars  multiplied
 by  the  number  of employees for whom such information is incomplete or
 incorrect; provided, however, that  if  the  number  of  such  employees
 cannot  be  determined  from  the  quarterly  combined withholding, wage
 reporting  and  unemployment  insurance  return,  the  commissioner  may
 utilize  any information 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 [the last] EACH calen-
 dar quarter of a year shall not exceed ten thousand dollars.
   §  4. This act shall take effect immediately and shall apply to calen-
 dar quarters beginning on or after January 1, 2019.
 
                                  PART J
 
   Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax
 law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as
 amended by section 1 of part DD of chapter 407 of the laws of  1999,  is
 amended to read as follows:
   (i)  The  receipts  from  every  sale, OTHER THAN SALES FOR RESALE, of
 beer, wine or other alcoholic  beverages  or  any  other  drink  of  any
 nature,  or  from  every  sale, OTHER THAN SALES FOR RESALE, of food and
 drink of any nature or of food alone, when sold in  or  by  restaurants,
 taverns or other establishments in this state, or by caterers, including
 in  the  amount  of  such  receipts any cover, minimum, entertainment or
 other charge made to patrons or customers (except those  receipts  taxed
 pursuant to subdivision (f) of this section):
   (1) in all instances where the sale is for consumption on the premises
 where sold;
   (2)  in  those instances where the vendor or any person whose services
 are arranged for by the vendor, after the delivery of the food or  drink
 by  or  on  behalf of the vendor for consumption off the premises of the
 vendor, serves or assists in serving, cooks,  heats  or  provides  other
 services with respect to the food or drink; and
   (3)  in  those  instances  where  the  sale  is made through a vending
 machine that is activated by use of coin, currency, credit card or debit
 card (except the sale of drinks in a heated state made  through  such  a
 vending  machine)  or is for consumption off the premises of the vendor,
 except where food (other than sandwiches) or drink or both are (A)  sold
 in  an  unheated state and, (B) are of a type commonly sold for consump-
 tion off the premises and in the same form and condition, quantities and
 packaging, in establishments which are  food  stores  other  than  those
 principally engaged in selling foods prepared and ready to be eaten.
   §  2. This act shall take effect June 1, 2018 and shall apply to sales
 made on and after such date.
 
                                  PART K
 
   Section 1. The tax law is amended by adding a  new  section  171-z  to
 read as follows:
   §  171-Z. INFORMATION SHARING WITH THE COMPTROLLER REGARDING UNCLAIMED
 FUNDS. 1. NOTWITHSTANDING ANY OTHER LAW, THE COMMISSIONER IS  AUTHORIZED
 TO  RELEASE  TO  THE  COMPTROLLER  INFORMATION REGARDING FIXED AND FINAL
 UNWARRANTED DEBTS OF TAXPAYERS  FOR  PURPOSES  OF  COLLECTING  UNCLAIMED
 FUNDS  FROM THE COMPTROLLER TO SATISFY FIXED AND FINAL UNWARRANTED DEBTS
 OWED BY TAXPAYERS. FOR PURPOSES OF THIS SECTION, THE  TERM  "UNWARRANTED
 DEBT"  SHALL MEAN PAST-DUE TAX LIABILITIES, INCLUDING UNPAID TAX, INTER-

 S. 7509--B                         12
 
 EST AND PENALTY, THAT THE COMMISSIONER IS REQUIRED BY LAW TO COLLECT AND
 THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE TAXPAYER  NO  LONGER  HAS
 ANY  RIGHT  TO  ADMINISTRATIVE  OR JUDICIAL REVIEW AND A WARRANT HAS NOT
 BEEN  FILED;  AND  THE TERM "TAXPAYER" SHALL MEAN ANY INDIVIDUAL, CORPO-
 RATION, PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP OR COMPANY,  PARTNER,
 MEMBER,  MANAGER, SOLE PROPRIETORSHIP, ESTATE, TRUST, FIDUCIARY OR ENTI-
 TY, WHO OR WHICH HAS BEEN IDENTIFIED AS OWING TAXES TO THE  STATE.  THIS
 SECTION  SHALL  NOT BE DEEMED TO ABROGATE OR LIMIT IN ANY WAY THE POWERS
 AND AUTHORITY OF THE COMPTROLLER TO SET OFF DEBTS OWED  THE  STATE  FROM
 UNCLAIMED FUNDS, UNDER THE CONSTITUTION OF THE STATE OR ANY OTHER LAW.
   2.  THE  COMPTROLLER SHALL KEEP ALL INFORMATION HE OR SHE OBTAINS FROM
 THE COMMISSIONER CONFIDENTIAL, AND ANY EMPLOYEE, AGENT OR REPRESENTATIVE
 OF THE COMPTROLLER IS PROHIBITED FROM DISCLOSING ANY  TAXPAYER  INFORMA-
 TION  RECEIVED  UNDER THIS SECTION TO ANYONE OTHER THAN THE COMMISSIONER
 OR STAFF OF THE DEPARTMENT OR STAFF  OF  THE  DEPARTMENT  OF  AUDIT  AND
 CONTROL FOR THE PURPOSES DESCRIBED IN THIS SECTION.
   § 2. This act shall take effect immediately.
 
                                  PART L
 
                           Intentionally Omitted
 
                                  PART M
 
                           Intentionally Omitted
 
                                  PART N
 
                           Intentionally Omitted
 
                                  PART O
 
                           Intentionally Omitted
 
                                  PART P
 
   Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax
 law,  as  amended  by section 1 of part L1 of chapter 109 of the laws of
 2006, is amended to read as follows:
   (1) A resident taxpayer shall be allowed a credit as  provided  herein
 equal to the greater of one hundred dollars times the number of qualify-
 ing  children  of the taxpayer or the applicable percentage of the child
 tax credit allowed the taxpayer under section twenty-four of the  inter-
 nal  revenue  code  for the same taxable year for each qualifying child.
 Provided, however, in the case of  a  taxpayer  whose  federal  adjusted
 gross  income  exceeds  the  applicable  threshold  amount  set forth by
 section 24(b)(2) of the Internal Revenue Code, the credit shall only  be
 equal  to  the applicable percentage of the child tax credit allowed the
 taxpayer under section 24 of the Internal Revenue Code for each qualify-
 ing child. For the purposes of this subsection, a qualifying child shall
 be a child who meets the definition of  qualified  child  under  section
 24(c)  of  the  internal revenue code and is at least four years of age.
 The applicable percentage shall be thirty-three percent.   FOR  PURPOSES
 OF  THIS SUBSECTION, ANY REFERENCE TO SECTION 24 OF THE INTERNAL REVENUE
 CODE SHALL BE A REFERENCE TO SUCH  SECTION  AS  IT  EXISTED  IMMEDIATELY
 PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97.

 S. 7509--B                         13
 
   § 2. This act shall take effect immediately and shall apply to taxable
 years commencing on or after January 1, 2018.
 
                                  PART Q
 
   Section  1.  Paragraphs (a) and (b) of subdivision 29 of section 210-B
 of the tax law, as amended by section 1 of part I of chapter 60  of  the
 laws of 2016, 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
 [nineteen] TWENTY-ONE, 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) Qualified veteran. A qualified veteran is an individual:
   (1)  who  served  on  active duty in the United States army, navy, air
 force, marine corps, coast guard or the reserves thereof, or who  served
 in  active military service of the United States as a member of the army
 national guard, air national guard, New York guard  or  New  York  naval
 militia;  who  was  released  from  active  duty by general or honorable
 discharge after September eleventh, two thousand one;
   (2) who commences employment by the qualified  taxpayer  on  or  after
 January  first,  two  thousand  fourteen,  and before January first, two
 thousand [eighteen] TWENTY; and
   (3) who certifies by signed affidavit, under penalty of perjury,  that
 he or she has not been employed for thirty-five or more hours during any
 week  in  the  one hundred eighty day period immediately prior to his or
 her employment by the taxpayer.
   § 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the  tax
 law,  as  amended  by  section  2 of part I of chapter 60 of the laws of
 2016, 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
 [nineteen]  TWENTY-ONE,  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.
   (2) Qualified veteran. A qualified veteran is an individual:
   (A) who served on active duty in the United  States  army,  navy,  air
 force,  marine corps, coast guard or the reserves thereof, or who served
 in active military service of the United States as a member of the  army
 national  guard,  air  national  guard, New York guard or New York naval
 militia; who was released from  active  duty  by  general  or  honorable
 discharge after September eleventh, two thousand one;

 S. 7509--B                         14
 
   (B)  who  commences  employment  by the qualified taxpayer on or after
 January first, two thousand fourteen,  and  before  January  first,  two
 thousand [eighteen] TWENTY; and
   (C)  who certifies by signed affidavit, under penalty of perjury, that
 he or she has not been employed for thirty-five or more hours during any
 week in the one hundred eighty day period immediately prior  to  his  or
 her employment by the taxpayer.
   §  3.  Paragraphs  1 and 2 of subdivision (g-1) of section 1511 of the
 tax law, as amended by section 3 of part I of chapter 60 of the laws  of
 2016, 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
 [nineteen] TWENTY-ONE, 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) Qualified veteran. A qualified veteran is an individual:
   (A)  who  served  on  active duty in the United States army, navy, air
 force, marine corps, coast guard or the reserves thereof, or who  served
 in  active military service of the United States as a member of the army
 national guard, air national guard, New York guard  or  New  York  naval
 militia;  who  was  released  from  active  duty by general or honorable
 discharge after September eleventh, two thousand one;
   (B) who commences employment by the qualified  taxpayer  on  or  after
 January  first,  two  thousand  fourteen,  and before January first, two
 thousand [eighteen] TWENTY; and
   (C) who certifies by signed affidavit, under penalty of perjury,  that
 he or she has not been employed for thirty-five or more hours during any
 week  in  the  one hundred eighty day period immediately prior to his or
 her employment by the taxpayer.
   § 4. This act shall take effect immediately.

                                  PART R
 
   Section 1. Subdivision (c) of  section  25-a  of  the  labor  law,  as
 amended  by  section  1 of part AA of chapter 56 of the laws of 2015, is
 amended to read as follows:
   (c) A qualified employer shall be entitled to a tax  credit  equal  to
 (1)  [five]  SEVEN  hundred FIFTY dollars per month for up to six months
 for each qualified employee the employer employs in a full-time  job  or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months  for  each qualified employee the employer employs in a part-time
 job of at least twenty hours per week or ten hours  per  week  when  the
 qualified  employee is enrolled in high school full-time, (2) [one thou-
 sand] FIFTEEN  HUNDRED  dollars  for  each  qualified  employee  who  is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied  employer  in a full-time job or [five] SEVEN hundred FIFTY dollars
 for each qualified employee who is employed for at least  an  additional
 six  CONSECUTIVE  months by the qualified employer in a part-time job of
 at least twenty hours per week or ten hours per week when the  qualified

 S. 7509--B                         15
 
 employee  is  enrolled  in  high school full-time, and (3) an additional
 [one thousand] FIFTEEN HUNDRED dollars for each qualified  employee  who
 is employed for at least an additional year after the [first year of the
 employee's  employment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION
 OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE AND TWO OF  THIS  SUBDIVI-
 SION  by  the  qualified  employer  in  a  full-time job or [five] SEVEN
 hundred FIFTY dollars for each qualified employee who is employed for at
 least an additional year after the [first year of the employee's employ-
 ment] COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE  CONDITIONS
 SET FORTH IN PARAGRAPHS ONE AND TWO OF THIS SUBDIVISION by the qualified
 employer  in  a  part-time  job of at least twenty hours per week or ten
 hours per week when the qualified employee is enrolled  in  high  school
 full time. The tax credits shall be claimed by the qualified employer as
 specified  in  subdivision  thirty-six  of section two hundred ten-B and
 subsection (tt) of section six hundred six of the tax law.
   § 2. Subdivisions (d), (e) and (f) of section 25-a of the  labor  law,
 subdivisions  (d) and (e) as amended by section 1 of subpart A of part N
 of chapter 59 of the laws of 2017 and  subdivision  (f)  as  amended  by
 section  1  of part AA of chapter 56 of the laws of 2015, are amended to
 read as follows:
   (d) To participate in the program established under this  section,  an
 employer must submit an application (in a form prescribed by the commis-
 sioner) to the commissioner after January first, two thousand twelve but
 no  later  than November thirtieth, two thousand twelve for program one,
 after January first, two thousand fourteen but no  later  than  November
 thirtieth,  two  thousand fourteen for program two, after January first,
 two thousand fifteen but no later than November thirtieth, two  thousand
 fifteen for program three, after January first, two thousand sixteen but
 no later than November thirtieth, two thousand sixteen for program four,
 after  January  first, two thousand seventeen but no later than November
 thirtieth, two thousand seventeen for program five, after January first,
 two thousand eighteen but no later than November thirtieth, two thousand
 eighteen for program six, after January first, two thousand nineteen but
 no later than November thirtieth,  two  thousand  nineteen  for  program
 seven, after January first, two thousand twenty but no later than Novem-
 ber  thirtieth,  two  thousand  twenty  for program eight, after January
 first, two thousand twenty-one but no later than November thirtieth, two
 thousand twenty-one for program nine, and after January first, two thou-
 sand twenty-two but no later than November thirtieth, two thousand twen-
 ty-two for program ten. The qualified employees must start their employ-
 ment on or after January first, two thousand twelve but  no  later  than
 December  thirty-first, two thousand twelve for program one, on or after
 January first, two thousand fourteen but no later than December  thirty-
 first, two thousand fourteen for program two, on or after January first,
 two  thousand fifteen but no later than December thirty-first, two thou-
 sand fifteen for program three, on or after January first, two  thousand
 sixteen  but  no  later than December thirty-first, two thousand sixteen
 for program four, on or after January first, two thousand seventeen  but
 no  later than December thirty-first, two thousand seventeen for program
 five, on or after January first, two thousand eighteen but no later than
 December thirty-first, two thousand eighteen  for  program  six,  on  or
 after  January  first,  two thousand nineteen but no later than December
 thirty-first, two thousand nineteen for program seven, on or after Janu-
 ary first, two thousand twenty but no later than December  thirty-first,
 two  thousand  twenty  for program eight, on or after January first, two
 thousand twenty-one but no later than December thirty-first,  two  thou-

 S. 7509--B                         16
 
 sand  twenty-one  for  program  nine, and on or after January first, two
 thousand twenty-two but no later than December thirty-first,  two  thou-
 sand  twenty-two  for  program  ten.  [The  commissioner shall establish
 guidelines  and  criteria  that  specify  requirements  for employers to
 participate in the program including criteria for  certifying  qualified
 employees, ensuring that the process established will minimize any undue
 delay  in  issuing  the certificate of eligibility. Any regulations that
 the commissioner determines are necessary may be adopted on an emergency
 basis notwithstanding anything to the contrary in  section  two  hundred
 two  of  the  state  administrative procedure act. Such requirements may
 include the types of industries that the employers are engaged  in.  The
 commissioner may give preference to employers that are engaged in demand
 occupations  or industries, or in regional growth sectors, including but
 not limited to those identified by  the  regional  economic  development
 councils,  such  as clean energy, healthcare, advanced manufacturing and
 conservation. In addition, the commissioner  shall  give  preference  to
 employers  who  offer  advancement  and employee benefit packages to the
 qualified individuals.] AS PART OF SUCH APPLICATION, AN EMPLOYER MUST:
   (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
 TAX INFORMATION WITH THE COMMISSIONER. HOWEVER, ANY  INFORMATION  SHARED
 AS  A  RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
 INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW, AND
   (2) ALLOW THE COMMISSIONER AND ITS AGENTS AND THE DEPARTMENT OF  TAXA-
 TION  AND FINANCE AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS AND RECORDS
 OF EMPLOYERS THE COMMISSIONER MAY REQUIRE TO MONITOR COMPLIANCE.
   (e) If, after reviewing the application submitted by an employer,  the
 commissioner determines that such employer is eligible to participate in
 the program established under this section, the commissioner shall issue
 the  employer  a PRELIMINARY certificate of eligibility that establishes
 the employer as a qualified employer.  The  PRELIMINARY  certificate  of
 eligibility  shall  specify  the  maximum  amount of tax credit that the
 employer [will] MAY be allowed to claim and the program year under which
 it [can] MAY be claimed. THE MAXIMUM AMOUNT OF TAX CREDIT  THE  EMPLOYER
 IS  ALLOWED  TO CLAIM SHALL BE COMPUTED AS PRESCRIBED IN SUBDIVISION (C)
 OF THIS SECTION.
   (f) The commissioner shall annually publish a report. Such report must
 contain the names and addresses of any  employer  issued  a  PRELIMINARY
 certificate  of  eligibility  under  this  section,  [and] the [maximum]
 amount of New York youth works  tax  credit  allowed  to  the  QUALIFIED
 employer  as  specified on [such] AN ANNUAL FINAL certificate of [eligi-
 bility] TAX CREDIT AND  ANY  OTHER  INFORMATION  AS  DETERMINED  BY  THE
 COMMISSIONER.
   §  3.  Section  25-a  of  the labor law is amended by adding three new
 subdivisions (e-1), (e-2) and (e-3) to read as follows:
   (E-1)(1) TO RECEIVE AN ANNUAL FINAL CERTIFICATE  OF  TAX  CREDIT,  THE
 QUALIFIED  EMPLOYER  MUST  ANNUALLY SUBMIT, ON OR BEFORE JANUARY THIRTY-
 FIRST OF THE CALENDAR YEAR SUBSEQUENT TO THE PAYMENT OF WAGES PAID TO AN
 ELIGIBLE EMPLOYEE, A REPORT TO THE COMMISSIONER, IN A FORM PRESCRIBED BY
 THE COMMISSIONER. THE REPORT MUST  DEMONSTRATE  THAT  THE  EMPLOYER  HAS
 SATISFIED  ALL ELIGIBILITY REQUIREMENTS AND PROVIDED ALL THE INFORMATION
 NECESSARY FOR THE COMMISSIONER TO COMPUTE AN  ACTUAL  AMOUNT  OF  CREDIT
 ALLOWED.
   (2)  AFTER REVIEWING THE REPORT AND FINDING IT SUFFICIENT, THE COMMIS-
 SIONER SHALL ISSUE AN ANNUAL  FINAL  CERTIFICATE  OF  TAX  CREDIT.  SUCH
 CERTIFICATE  SHALL  INCLUDE,  IN  ADDITION  TO ANY OTHER INFORMATION THE
 COMMISSIONER DETERMINES IS NECESSARY, THE FOLLOWING INFORMATION:

 S. 7509--B                         17

   (I) THE NAME AND  EMPLOYER  IDENTIFICATION  NUMBER  OF  THE  QUALIFIED
 EMPLOYER;
   (II) THE PROGRAM YEAR FOR THE CORRESPONDING CREDIT AWARD;
   (III)  THE  ACTUAL AMOUNT OF CREDIT TO WHICH THE QUALIFIED EMPLOYER IS
 ENTITLED FOR THAT CALENDAR YEAR OR THE FISCAL YEAR IN WHICH  THE  ANNUAL
 FINAL  CERTIFICATE  IS  ISSUED,  WHICH  ACTUAL  AMOUNT CANNOT EXCEED THE
 AMOUNT OF CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY  BE  LESS
 THAN SUCH AMOUNT; AND
   (IV)  A UNIQUE CERTIFICATE NUMBER IDENTIFYING THE ANNUAL FINAL CERTIF-
 ICATE OF TAX CREDIT.
   (E-2) IN DETERMINING THE AMOUNT OF CREDIT FOR PURPOSES OF  THE  ANNUAL
 FINAL  CERTIFICATE OF TAX CREDIT, THE PORTION OF THE CREDIT DESCRIBED IN
 PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION SHALL  BE  ALLOWED  FOR
 THE CALENDAR YEAR IN WHICH THE WAGES ARE PAID TO THE QUALIFIED EMPLOYEE,
 THE  PORTION OF THE CREDIT DESCRIBED IN PARAGRAPH TWO OF SUBDIVISION (C)
 OF THIS SECTION SHALL BE ALLOWED FOR THE  CALENDAR  YEAR  IN  WHICH  THE
 ADDITIONAL  SIX  CONSECUTIVE  MONTH  PERIOD ENDS, AND THE PORTION OF THE
 CREDIT DESCRIBED IN PARAGRAPH THREE OF SUBDIVISION (C) OF  THIS  SECTION
 SHALL  BE  ALLOWED FOR THE CALENDAR YEAR IN WHICH THE ADDITIONAL YEAR OF
 CONSECUTIVE EMPLOYMENT ENDS AFTER THE COMPLETION OF THE TIME PERIODS AND
 SATISFACTION OF THE CONDITIONS SET FORTH IN PARAGRAPHS ONE  AND  TWO  OF
 SUBDIVISION  (C)  OF THIS SECTION.   IF THE QUALIFIED EMPLOYER'S TAXABLE
 YEAR IS A CALENDAR YEAR, THE EMPLOYER SHALL BE  ENTITLED  TO  CLAIM  THE
 CREDIT  AS  CALCULATED  ON THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON
 THE CALENDAR YEAR RETURN FOR WHICH THE ANNUAL FINAL CERTIFICATE  OF  TAX
 CREDIT  WAS ISSUED. IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL
 YEAR, THE EMPLOYER SHALL BE ENTITLED TO CLAIM THE CREDIT  AS  CALCULATED
 ON  THE  ANNUAL  FINAL  CERTIFICATE  OF TAX CREDIT ON THE RETURN FOR THE
 FISCAL YEAR THAT ENCOMPASSES THE DATE ON WHICH THE ANNUAL FINAL  CERTIF-
 ICATE OF TAX CREDIT IS ISSUED.
   (E-3)  THE  COMMISSIONER  SHALL ESTABLISH GUIDELINES AND CRITERIA THAT
 SPECIFY REQUIREMENTS FOR EMPLOYERS TO PARTICIPATE IN THE PROGRAM INCLUD-
 ING CRITERIA FOR CERTIFYING QUALIFIED EMPLOYEES, AND ISSUING THE PRELIM-
 INARY CERTIFICATE OF ELIGIBILITY AND ANNUAL  FINAL  CERTIFICATE  OF  TAX
 CREDIT.   SUCH REQUIREMENTS MAY INCLUDE THE TYPES OF INDUSTRIES THAT THE
 EMPLOYERS ARE ENGAGED  IN.  THE  COMMISSIONER  MAY  GIVE  PREFERENCE  TO
 EMPLOYERS  THAT  ARE  ENGAGED IN DEMAND OCCUPATIONS OR INDUSTRIES, OR IN
 REGIONAL GROWTH SECTORS, INCLUDING BUT NOT LIMITED TO  THOSE  IDENTIFIED
 BY  THE  REGIONAL  ECONOMIC  DEVELOPMENT COUNCILS, SUCH AS CLEAN ENERGY,
 HEALTHCARE, ADVANCED MANUFACTURING AND CONSERVATION.  IN  ADDITION,  THE
 COMMISSIONER  SHALL  GIVE  PREFERENCE TO EMPLOYERS WHO OFFER ADVANCEMENT
 AND EMPLOYEE BENEFIT PACKAGES TO THE QUALIFIED INDIVIDUALS.
   § 4. Paragraph (a) of subdivision 36 of section 210-B of the tax  law,
 as amended by section 2 of part AA of chapter 56 of the laws of 2015, is
 amended to read as follows:
   (a) A taxpayer that has been certified by the commissioner of labor as
 a  qualified employer pursuant to section twenty-five-a of the labor law
 shall be allowed a credit against the tax imposed by this article  equal
 to (i) [five] SEVEN hundred FIFTY dollars per month for up to six months
 for  each  qualified employee the employer employs in a full-time job or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months for each qualified employee the employer employs in  a  part-time
 job  of  at  least  twenty hours per week or ten hours per week when the
 qualified employee is enrolled in high school full-time, (ii) [one thou-
 sand] FIFTEEN  HUNDRED  dollars  for  each  qualified  employee  who  is
 employed for at least an additional six CONSECUTIVE months by the quali-

 S. 7509--B                         18
 
 fied  employer  in a full-time job or [five] SEVEN hundred FIFTY dollars
 for each qualified employee who is employed for at least  an  additional
 six  CONSECUTIVE  months by the qualified employer in a part-time job of
 at  least twenty hours per week or ten hours per week when the qualified
 employee is enrolled in high school full-time, and (iii)  an  additional
 [one  thousand]  FIFTEEN HUNDRED dollars for each qualified employee who
 is employed for at least an additional year after the [first year of the
 employee's employment] COMPLETION OF THE TIME PERIODS  AND  SATISFACTION
 OF  THE CONDITIONS SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARA-
 GRAPH by the qualified employer in  a  full-time  job  or  [five]  SEVEN
 hundred FIFTY dollars for each qualified employee who is employed for at
 least an additional year after the [first year of the employee's employ-
 ment]  COMPLETION OF THE TIME PERIODS AND SATISFACTION OF THE CONDITIONS
 SET FORTH IN SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH by the  quali-
 fied  employer  in  a part-time job of at least twenty hours per week or
 ten hours per week when the  qualified  employee  is  enrolled  in  high
 school  full-time. For purposes of this subdivision, the term "qualified
 employee" shall have the same meaning as set forth in subdivision (b) of
 section twenty-five-a of the  labor  law.  The  portion  of  the  credit
 described in subparagraph (i) of this paragraph shall be allowed for the
 taxable  year in which the wages are paid to the qualified employee, the
 portion of the credit described in subparagraph (ii) of  this  paragraph
 shall  be  allowed in the taxable year in which the additional six month
 period ends, and the portion of the  credit  described  in  subparagraph
 (iii)  of  this  paragraph shall be allowed in the taxable year in which
 the additional year after the first year of employment ends.
   § 5. Paragraph (a) of subdivision 36 of section 210-B of the tax  law,
 as amended by section 4 of this act, is amended to read as follows:
   (a) A taxpayer that has been certified by the commissioner of labor as
 a  qualified employer pursuant to section twenty-five-a of the labor law
 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS-
 SIONER shall be allowed a credit against the tax imposed by this article
 equal to [(i) seven hundred fifty dollars per month for up to six months
 for each qualified employee the employer employs in a full-time  job  or
 three  hundred  seventy-five  dollars per month for up to six months for
 each qualified employee the employer employs in a part-time  job  of  at
 least  twenty  hours  per  week or ten hours per week when the qualified
 employee is enrolled in high  school  full-time,  (ii)  fifteen  hundred
 dollars  for  each  qualified  employee  who is employed for at least an
 additional six consecutive months by the qualified employer in  a  full-
 time  job or seven hundred fifty dollars for each qualified employee who
 is employed for at least an additional six  consecutive  months  by  the
 qualified  employer in a part-time job of at least twenty hours per week
 or ten hours per week when the qualified employee is  enrolled  in  high
 school  full-time,  and  (iii) an additional fifteen hundred dollars for
 each qualified employee who is employed for at least an additional  year
 after  the completion of the time periods and satisfaction of the condi-
 tions set forth in subparagraphs (i) and (ii) of this paragraph  by  the
 qualified employer in a full-time job or seven hundred fifty dollars for
 each  qualified employee who is employed for at least an additional year
 after the completion of the time periods and satisfaction of the  condi-
 tions  set  forth in subparagraphs (i) and (ii) of this paragraph by the
 qualified employer in a part-time job of at least twenty hours per  week
 or  ten  hours  per week when the qualified employee is enrolled in high
 school full-time. For purposes of this subdivision, the term  "qualified
 employee" shall have the same meaning as set forth in subdivision (b) of

 S. 7509--B                         19

 section  twenty-five-a  of  the  labor  law.  The  portion of the credit
 described in subparagraph (i) of this paragraph shall be allowed for the
 taxable year in which the wages are paid to the qualified employee,  the
 portion  of  the credit described in subparagraph (ii) of this paragraph
 shall be allowed in the taxable year in which the additional  six  month
 period  ends,  and  the  portion of the credit described in subparagraph
 (iii) of this paragraph shall be allowed in the taxable  year  in  which
 the  additional year after the first year of employment ends] THE AMOUNT
 LISTED ON THE ANNUAL FINAL CERTIFICATE  OF  TAX  CREDIT  ISSUED  BY  THE
 COMMISSIONER  OF  LABOR  PURSUANT  TO SECTION TWENTY-FIVE-A OF THE LABOR
 LAW.  IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR  YEAR,  THE
 EMPLOYER  SHALL  BE  ENTITLED  TO  CLAIM THE CREDIT AS CALCULATED ON THE
 ANNUAL FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR  RETURN  FOR
 WHICH  THE  ANNUAL  FINAL  CERTIFICATE  OF TAX CREDIT WAS ISSUED. IF THE
 QUALIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE  EMPLOYER  SHALL
 BE  ENTITLED  TO  CLAIM  THE  CREDIT  AS  CALCULATED ON THE ANNUAL FINAL
 CERTIFICATE OF TAX CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT  ENCOM-
 PASSES  THE  DATE ON WHICH THE ANNUAL FINAL CERTIFICATE OF TAX CREDIT IS
 ISSUED. FOR THE  PURPOSES  OF  THIS  SUBDIVISION,  THE  TERM  "QUALIFIED
 EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF
 SECTION TWENTY-FIVE-A OF THE LABOR LAW.
   §  6. Paragraph (c) of subdivision 36 of section 210-B of the tax law,
 as added by section 17 of part A of chapter 59 of the laws of  2014,  is
 amended to read as follows:
   (c)  The  taxpayer [may] SHALL be required to attach to its tax return
 its ANNUAL FINAL certificate of [eligibility] TAX CREDIT issued  by  the
 commissioner  of  labor  pursuant  to section twenty-five-a of the labor
 law. In no event shall the taxpayer be allowed a credit greater than the
 amount of the credit listed on the ANNUAL FINAL certificate  of  [eligi-
 bility]  TAX  CREDIT.   Notwithstanding any provision of this chapter to
 the contrary, the commissioner  and  the  commissioner's  designees  may
 release the names and addresses of any taxpayer claiming this credit and
 the  amount of the credit earned by the taxpayer.  Provided, however, if
 a taxpayer claims this credit because  it  is  a  member  of  a  limited
 liability  company  or  a  partner  in a partnership, only the amount of
 credit earned by the entity and not the amount of credit claimed by  the
 taxpayer may be released.
   §  7. Paragraph 1 of subsection (tt) of section 606 of the tax law, as
 amended by section 3 of part AA of chapter 56 of the laws  of  2015,  is
 amended to read as follows:
   (1) A taxpayer that has been certified by the commissioner of labor as
 a  qualified employer pursuant to section twenty-five-a of the labor law
 shall be allowed a credit against the tax imposed by this article  equal
 to (A) [five] SEVEN hundred FIFTY dollars per month for up to six months
 for  each  qualified employee the employer employs in a full-time job or
 [two] THREE hundred [fifty] SEVENTY-FIVE dollars per month for up to six
 months for each qualified employee the employer employs in  a  part-time
 job  of  at  least  twenty hours per week or ten hours per week when the
 qualified employee is enrolled in high school full-time,  and  (B)  [one
 thousand]  FIFTEEN  HUNDRED  dollars  for each qualified employee who is
 employed for at least an additional six CONSECUTIVE months by the quali-
 fied employer in a full-time job or [five] SEVEN hundred  FIFTY  dollars
 for  each  qualified employee who is employed for at least an additional
 six CONSECUTIVE months by the qualified employer in a part-time  job  of
 at  least twenty hours per week or ten hours per week when the qualified
 employee is enrolled in high school full-time,  and  (C)  an  additional

 S. 7509--B                         20
 
 [one  thousand]  FIFTEEN HUNDRED dollars for each qualified employee who
 is employed for at least an additional year after the [first year of the
 employee's employment] COMPLETION OF THE TIME PERIODS  AND  SATISFACTION
 OF  THE CONDITIONS SET FORTH IN SUBPARAGRAPHS A AND B OF THIS SUBSECTION
 by the qualified employer in a full-time job  or  [five]  SEVEN  hundred
 FIFTY  dollars  for each qualified employee who is employed for at least
 an additional year after the [first year of the  employee's  employment]
 COMPLETION  OF  THE  TIME PERIODS AND SATISFACTION OF THE CONDITIONS SET
 FORTH IN SUBPARAGRAPHS A AND B  OF  THIS  SUBSECTION  by  the  qualified
 employer  in  a  part-time  job of at least twenty hours per week or ten
 hours per week when the qualified employee is enrolled  in  high  school
 full-time.  A  taxpayer  that is a partner in a partnership, member of a
 limited liability company or shareholder in an S  corporation  that  has
 been  certified  by  the  commissioner  of labor as a qualified employer
 pursuant to section twenty-five-a of the labor law shall be allowed  its
 pro  rata share of the credit earned by the partnership, limited liabil-
 ity company or S corporation. For purposes of this subsection, the  term
 "qualified  employee" shall have the same meaning as set forth in subdi-
 vision (b) of section twenty-five-a of the labor law. The portion of the
 credit described in subparagraph (A) of this paragraph shall be  allowed
 for  the  taxable  year  in  which  the  wages are paid to the qualified
 employee, the portion of the credit described  in  subparagraph  (B)  of
 this  paragraph  shall be allowed in the taxable year in which the addi-
 tional six month period ends, and the portion of the credit described in
 subparagraph (C) of this paragraph shall be allowed in the taxable  year
 in which the additional year after the first year of employment ends.
   §  8. Paragraph 1 of subsection (tt) of section 606 of the tax law, as
 amended by section 7 of this act, is amended to read as follows:
   (1) A taxpayer that has been certified by the commissioner of labor as
 a qualified employer pursuant to section twenty-five-a of the labor  law
 AND RECEIVED AN ANNUAL FINAL CERTIFICATE OF TAX CREDIT FROM SUCH COMMIS-
 SIONER shall be allowed a credit against the tax imposed by this article
 equal to [(A) seven hundred fifty dollars per month for up to six months
 for  each  qualified employee the employer employs in a full-time job or
 three hundred seventy-five dollars per month for up to  six  months  for
 each  qualified  employee  the employer employs in a part-time job of at
 least twenty hours per week or ten hours per  week  when  the  qualified
 employee  is  enrolled in high school full-time, and (B) fifteen hundred
 dollars for each qualified employee who is  employed  for  at  least  an
 additional  six  consecutive months by the qualified employer in a full-
 time job or seven hundred fifty dollars for each qualified employee  who
 is  employed  for  at  least an additional six consecutive months by the
 qualified employer in a part-time job of at least twenty hours per  week
 or  ten  hours  per week when the qualified employee is enrolled in high
 school full-time, and (C) an additional fifteen hundred dollars for each
 qualified employee who is employed for at least an additional year after
 the completion of the time periods and satisfaction  of  the  conditions
 set  forth  in subparagraphs A and B of this subsection by the qualified
 employer in a full-time job or seven  hundred  fifty  dollars  for  each
 qualified employee who is employed for at least an additional year after
 the  completion  of  the time periods and satisfaction of the conditions
 set forth in subparagraphs A and B of this subsection by  the  qualified
 employer  in  a  part-time  job of at least twenty hours per week or ten
 hours per week when the qualified employee is enrolled  in  high  school
 full-time]  THE  AMOUNT  LISTED  ON  THE ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT ISSUED BY THE COMMISSIONER OF LABOR PURSUANT TO  SECTION  TWENTY-

 S. 7509--B                         21
 
 FIVE-A  OF THE LABOR LAW. A taxpayer that is a partner in a partnership,
 member of a limited liability company or shareholder in an S corporation
 that has [been certified by] RECEIVED ITS ANNUAL  FINAL  CERTIFICATE  OF
 TAX CREDIT FROM the commissioner of labor as a qualified employer pursu-
 ant  to  section twenty-five-a of the labor law shall be allowed its pro
 rata share of the credit earned by the  partnership,  limited  liability
 company  or  S  corporation.  [For purposes of this subsection, the term
 "qualified employee" shall have the same meaning as set forth in  subdi-
 vision (b) of section twenty-five-a of the labor law. The portion of the
 credit  described in subparagraph (A) of this paragraph shall be allowed
 for the taxable year in which  the  wages  are  paid  to  the  qualified
 employee,  the  portion  of  the credit described in subparagraph (B) of
 this paragraph shall be allowed in the taxable year in which  the  addi-
 tional six month period ends, and the portion of the credit described in
 subparagraph  (C) of this paragraph shall be allowed in the taxable year
 in which the additional year after the first year of  employment  ends.]
 IF THE QUALIFIED EMPLOYER'S TAXABLE YEAR IS A CALENDAR YEAR, THE EMPLOY-
 ER  SHALL  BE  ENTITLED  TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL
 FINAL CERTIFICATE OF TAX CREDIT ON THE CALENDAR YEAR  RETURN  FOR  WHICH
 THE  ANNUAL FINAL CERTIFICATE OF TAX CREDIT WAS ISSUED. IF THE QUALIFIED
 EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, THE EMPLOYER SHALL BE ENTITLED
 TO CLAIM THE CREDIT AS CALCULATED ON THE ANNUAL FINAL CERTIFICATE OF TAX
 CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT ENCOMPASSES  THE  DATE  ON
 WHICH  THE  ANNUAL  FINAL  CERTIFICATE OF TAX CREDIT IS ISSUED.  FOR THE
 PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED  EMPLOYEE"  SHALL  HAVE
 THE   SAME   MEANING   AS  SET  FORTH  IN  SUBDIVISION  (B)  OF  SECTION
 TWENTY-FIVE-A OF THE LABOR LAW.
   § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law,  as
 added  by  section  3  of  part  D of chapter 56 of the laws of 2011, is
 amended to read as follows:
   (3) The taxpayer [may] SHALL be required to attach to its  tax  return
 its  ANNUAL  FINAL certificate of [eligibility] TAX CREDIT issued by the
 commissioner of labor pursuant to section  twenty-five-a  of  the  labor
 law. In no event shall the taxpayer be allowed a credit greater than the
 amount  of  the credit listed on the ANNUAL FINAL certificate of [eligi-
 bility] TAX CREDIT. Notwithstanding any provision of this chapter to the
 contrary, the commissioner and the commissioner's designees may  release
 the  names  and  addresses  of any taxpayer claiming this credit and the
 amount of the credit earned by the taxpayer.   Provided, however,  if  a
 taxpayer  claims this credit because it is a member of a limited liabil-
 ity company, a partner in a partnership, or a shareholder in a  subchap-
 ter  S  corporation,  only the amount of credit earned by the entity and
 not the amount of credit claimed by the taxpayer may be released.
   § 10. This act shall take effect immediately,  provided  however  that
 (i)  section  one  of  this act shall apply to tax years beginning on or
 after January 1, 2018; (ii) sections four and seven of  this  act  shall
 apply  to  tax  years  beginning  on or after January 1, 2018 and before
 January 1, 2019; and (iii) sections two, three, five,  six,  eight,  and
 nine  of  this  act shall take effect January 1, 2019 and shall apply to
 tax years beginning on or after January 1, 2019.
 
                                  PART S
 
                           Intentionally Omitted
 
                                  PART T

 S. 7509--B                         22
 
                           Intentionally Omitted
 
                                  PART U
 
                           Intentionally Omitted
 
                                  PART V
 
                           Intentionally Omitted
 
                                  PART W
 
   Section  1. Subdivision (f) of section 1115 of the tax law, as amended
 by chapter 205 of the laws of 1968, is amended to read as follows:
   (f) (1) Services rendered by a veterinarian licensed and registered as
 required by the education law which constitute the practice  of  veteri-
 nary  medicine  as  defined  in  said law, including hospitalization for
 which no separate boarding charge is made, shall not be subject  to  tax
 under  paragraph  (3) of subdivision (c) of section eleven hundred five,
 but the exemption allowed by this subdivision shall not apply  to  other
 services  provided  by a veterinarian to pets and other animals, includ-
 ing, but not limited to, boarding, grooming and  clipping.  Articles  of
 tangible  personal  property designed for use in some manner relating to
 domestic animals or poultry, when sold by such a veterinarian, shall not
 be subject to tax under subdivision (a) of section eleven  hundred  five
 or under section eleven hundred ten. However, the sale of any such arti-
 cles of tangible personal property to a veterinarian shall not be deemed
 a  sale  for  resale  within  the meaning of [pargraph] PARAGRAPH (4) of
 subdivision (b) of section eleven hundred one and shall  not  be  exempt
 from retail sales tax.
   (2)  DRUGS  OR  MEDICINE  SOLD TO OR USED BY A VETERINARIAN FOR USE IN
 RENDERING SERVICES THAT ARE EXEMPT PURSUANT TO  PARAGRAPH  ONE  OF  THIS
 SUBDIVISION  TO  LIVESTOCK OR POULTRY USED IN THE PRODUCTION FOR SALE OF
 TANGIBLE PERSONAL PROPERTY BY FARMING, OR SOLD TO  A  PERSON  QUALIFYING
 FOR  THE  EXEMPTION  PROVIDED FOR IN PARAGRAPH SIX OF SUBDIVISION (A) OF
 THIS SECTION FOR USE BY SUCH PERSON ON SUCH LIVESTOCK OR POULTRY.
   § 2. Subdivision (a) of section 1119 of the tax  law,  as  amended  by
 chapter  686 of the laws of 1986 and as further amended by section 15 of
 part GG of chapter 63 of the  laws  of  2000,  is  amended  to  read  as
 follows:
   (a)  Subject  to the conditions and limitations provided for herein, a
 refund or credit shall be allowed for a tax paid pursuant to subdivision
 (a) of section eleven hundred five or section eleven hundred ten (1)  on
 the  sale or use of tangible personal property if the purchaser or user,
 in the performance of  a  contract,  later  incorporates  that  tangible
 personal  property into real property located outside this state, (2) on
 the sale or use of tangible personal property purchased in bulk, or  any
 portion  thereof,  which is stored and not used by the purchaser or user
 within this state if that property is  subsequently  reshipped  by  such
 purchaser  or  user  to  a point outside this state for use outside this
 state, (3) on the sale to or use by a  contractor  or  subcontractor  of
 tangible personal property if that property is used by him solely in the
 performance  of  a  pre-existing  lump  sum  or  unit price construction
 contract, (4) on the sale or use within this state of tangible  personal
 property,  not purchased for resale, if the use of such property in this
 state is restricted to fabricating such property (including  incorporat-

 S. 7509--B                         23
 
 ing  it  into  or  assembling it with other tangible personal property),
 processing, printing or imprinting such property and  such  property  is
 then  shipped  to a point outside this state for use outside this state,
 [(5)  on  the  sale  to or use by a veterinarian of drugs or medicine if
 such drugs or medicine  are  used  by  such  veterinarian  in  rendering
 services, which are exempt pursuant to subdivision (f) of section eleven
 hundred  fifteen  of  this  chapter, to livestock or poultry used in the
 production for sale of tangible personal property by farming or if  such
 drugs  or  medicine  are  sold  to a person qualifying for the exemption
 provided for in paragraph (6)  of  subdivision  (a)  of  section  eleven
 hundred fifteen of this chapter for use by such person on such livestock
 or  poultry,] or (6) on the sale of tangible personal property purchased
 for use in  constructing,  expanding  or  rehabilitating  industrial  or
 commercial  real property (other than property used or to be used exclu-
 sively by one or more registered vendors primarily engaged in the retail
 sale of tangible personal property) located in an area designated as  an
 empire zone pursuant to article eighteen-B of the general municipal law,
 but  only to the extent that such property becomes an integral component
 part of the real property. (For the purpose of clause (3) of the preced-
 ing sentence, the term "pre-existing lump sum or unit price construction
 contract" shall mean a contract for the construction of improvements  to
 real  property  under  which  the  amount  payable  to the contractor or
 subcontractor is fixed without regard to the costs incurred  by  him  in
 the  performance  thereof,  and  which  (i) was irrevocably entered into
 prior to the date of the enactment of this article or the enactment of a
 law increasing the rate of tax  imposed  under  this  article,  or  (ii)
 resulted  from the acceptance by a governmental agency of a bid accompa-
 nied by a bond or  other  performance  guaranty  which  was  irrevocably
 submitted  prior to such date.) Where the tax on the sale or use of such
 tangible personal property has been paid to the vendor, to  qualify  for
 such  refund or credit, such tangible personal property must be incorpo-
 rated into real property as required in clause (1) above,  reshipped  as
 required  in  clause  (2) above, used in the manner described in clauses
 (3), (4)[, (5)] and (6) above within three years after the date such tax
 was payable to the tax commission by  the  vendor  pursuant  to  section
 eleven  hundred  thirty-seven.  Where the tax on the sale or use of such
 tangible personal property was paid by the applicant for the  credit  or
 refund  directly  to  the  tax commission, to qualify for such refund or
 credit, such tangible personal property must be incorporated  into  real
 property  as  required  in  clause  (1)  above, reshipped as required in
 clause (2) above, used in the manner described  in  clauses  (3),  (4)[,
 (5)]  and (6) above within three years after the date such tax was paya-
 ble to the tax commission by such applicant pursuant to this article. An
 application for a refund or credit pursuant  to  this  section  must  be
 filed  with  such commission within the time provided by subdivision (a)
 of section eleven hundred thirty-nine. Such application shall be in such
 form as the tax commission may prescribe. Where an application for cred-
 it has been filed, the applicant may immediately take such credit on the
 return which is due coincident with or  immediately  subsequent  to  the
 time  that  he  files his application for credit. However, the taking of
 the credit on the return shall be deemed to be part of  the  application
 for credit and shall be subject to the provisions in respect to applica-
 tions  for  credit  in section eleven hundred thirty-nine as provided in
 subdivision (e) of such section. With respect to a sale or use described
 in clause (3)  above  where  a  pre-existing  lump  sum  or  unit  price
 construction  contract was irrevocably entered into prior to the date of

 S. 7509--B                         24
 
 the enactment of this article or the bid accompanied by the  performance
 guaranty  was  irrevocably submitted to the governmental agency prior to
 such date, the purchaser or user shall be entitled to a refund or credit
 only  of  the  amount by which the tax on such sale or use imposed under
 this article plus any tax imposed under the authority of  article  twen-
 ty-nine exceeds the amount computed by applying against such sale or use
 the  local  rate of tax, if any, in effect at the time such contract was
 entered into or such bid was submitted.
   In the case of the enactment of a  law  increasing  the  rate  of  tax
 imposed by this article, the purchaser or user shall be entitled only to
 a refund or credit of the amount by which the increased tax on such sale
 or use imposed under this article plus any tax imposed under the author-
 ity  of  article  twenty-nine  exceeds  the  amount computed by applying
 against such sale or use the state and local rates of tax in  effect  at
 the time such contract was entered into or such bid was submitted.
   § 3. This act shall take effect June 1, 2018, and shall apply to sales
 made and uses occurring on and after such date.
 
                                  PART X

   Section 1. Subdivision 1 of section 1131 of the tax law, as amended by
 chapter 576 of the laws of 1994, is amended to read as follows:
   (1)  "Persons  required to collect tax" or "person required to collect
 any tax imposed by this article" shall include: every vendor of tangible
 personal property or services; every recipient of amusement charges; and
 every operator of a hotel. 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 liabil-
 ity 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)  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.
   §  2.  Subdivision  (a)  of section 1133 of the tax law, as amended by
 chapter 621 of the laws of 1967, is amended to read as follows:
   (a) (1) Except as otherwise provided in PARAGRAPH TWO OF THIS SUBDIVI-
 SION AND IN section eleven hundred  thirty-seven  OF  THIS  PART,  every
 person  required  to  collect  any  tax imposed by this article shall be
 personally liable for the tax  imposed,  collected  or  required  to  be
 collected  under this article. Any such person shall have the same right
 in respect to collecting the tax from his  customer  or  in  respect  to
 nonpayment  of  the tax by the customer as if the tax were a part of the
 purchase price of the property or service, amusement charge or rent,  as
 the  case  may be, and payable at the same time; provided, however, that
 the tax commission shall be joined as a party in any action or  proceed-
 ing brought to collect the tax.
   (2)  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  THIS ARTICLE: (I) THE
 COMMISSIONER SHALL GRANT THE RELIEF DESCRIBED IN SUBPARAGRAPH  (III)  OF
 THIS  PARAGRAPH TO A LIMITED PARTNER OF A LIMITED PARTNERSHIP (BUT NOT A

 S. 7509--B                         25
 
 PARTNER OF A LIMITED LIABILITY PARTNERSHIP) OR A  MEMBER  OF  A  LIMITED
 LIABILITY  COMPANY IF SUCH LIMITED PARTNER OR MEMBER DEMONSTRATES TO THE
 SATISFACTION OF THE COMMISSIONER THAT SUCH LIMITED PARTNER'S OR MEMBER'S
 OWNERSHIP  INTEREST  AND THE PERCENTAGE OF THE DISTRIBUTIVE SHARE OF THE
 PROFITS AND LOSSES OF SUCH  LIMITED  PARTNERSHIP  OR  LIMITED  LIABILITY
 COMPANY  ARE  EACH  LESS THAN FIFTY PERCENT, AND SUCH LIMITED PARTNER OR
 MEMBER WAS NOT UNDER A DUTY TO  ACT  FOR  SUCH  LIMITED  PARTNERSHIP  OR
 LIMITED  LIABILITY  COMPANY  IN  COMPLYING  WITH ANY REQUIREMENT OF THIS
 ARTICLE. PROVIDED, HOWEVER, THE COMMISSIONER MAY DENY AN APPLICATION FOR
 RELIEF TO ANY SUCH LIMITED PARTNER OR MEMBER WHO THE COMMISSIONER  FINDS
 HAS  ACTED  ON  BEHALF  OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY
 COMPANY IN COMPLYING WITH ANY REQUIREMENT OF THIS ARTICLE  OR  HAS  BEEN
 CONVICTED  OF  A  CRIME  PROVIDED  IN THIS CHAPTER OR WHO HAS A PAST-DUE
 LIABILITY, AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED  SEVENTY-ONE-V
 OF THIS CHAPTER.
   (II)  SUCH  LIMITED  PARTNER  OR MEMBER MUST SUBMIT AN APPLICATION FOR
 RELIEF, ON A FORM PRESCRIBED BY THE COMMISSIONER,  AND  THE  INFORMATION
 PROVIDED  IN  SUCH APPLICATION MUST BE TRUE AND COMPLETE IN ALL MATERIAL
 RESPECTS. PROVIDING MATERIALLY FALSE OR FRAUDULENT INFORMATION  ON  SUCH
 APPLICATION  SHALL  DISQUALIFY  SUCH  LIMITED  PARTNER OR MEMBER FOR THE
 RELIEF DESCRIBED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH, SHALL VOID ANY
 AGREEMENT WITH THE COMMISSIONER WITH RESPECT TO SUCH RELIEF,  AND  SHALL
 RESULT  IN  SUCH  LIMITED PARTNER OR MEMBER BEARING STRICT LIABILITY FOR
 THE TOTAL AMOUNT OF TAX, INTEREST AND PENALTY OWED BY  THEIR  RESPECTIVE
 LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY PURSUANT TO THIS SUBDI-
 VISION.
   (III) A LIMITED PARTNER OF A LIMITED PARTNERSHIP OR MEMBER OF A LIMIT-
 ED LIABILITY COMPANY, WHO MEETS THE REQUIREMENTS SET FORTH IN THIS PARA-
 GRAPH  AND WHOSE APPLICATION FOR RELIEF IS APPROVED BY THE COMMISSIONER,
 SHALL BE LIABLE FOR THE PERCENTAGE OF THE ORIGINAL  SALES  AND  USE  TAX
 LIABILITY  OF  THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY
 COMPANY THAT REFLECTS  SUCH  LIMITED  PARTNER'S  OR  MEMBER'S  OWNERSHIP
 INTEREST OF DISTRIBUTIVE SHARE OF THE PROFITS AND LOSSES OF SUCH LIMITED
 PARTNERSHIP  OR  LIMITED  LIABILITY  COMPANY,  WHICHEVER IS HIGHER. SUCH
 ORIGINAL LIABILITY SHALL INCLUDE ANY INTEREST ACCRUED THEREON UP TO  AND
 INCLUDING  THE  DATE OF PAYMENT BY SUCH LIMITED PARTNER OR MEMBER AT THE
 UNDERPAYMENT RATE SET BY THE COMMISSIONER  PURSUANT  TO  SECTION  ELEVEN
 HUNDRED  FORTY-TWO  OF THIS PART, AND SHALL BE REDUCED BY THE SUM OF ANY
 PAYMENTS MADE BY (A) THE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPA-
 NY; (B) ANY PERSON REQUIRED TO COLLECT TAX NOT ELIGIBLE FOR RELIEF;  AND
 (C)  ANY  PERSON REQUIRED TO COLLECT TAX WHO WAS ELIGIBLE FOR RELIEF BUT
 HAD NOT BEEN APPROVED FOR RELIEF BY THE COMMISSIONER AT  THE  TIME  SUCH
 PAYMENT  WAS  MADE.  PROVIDED,  HOWEVER,  SUCH LIMITED PARTNER OR MEMBER
 SHALL NOT BE LIABLE FOR ANY PENALTY OWED BY SUCH LIMITED PARTNERSHIP  OR
 LIMITED LIABILITY COMPANY OR ANY OTHER PARTNER OR MEMBER OF SUCH LIMITED
 PARTNERSHIP  OR LIMITED LIABILITY COMPANY. ANY PAYMENT MADE BY A LIMITED
 PARTNER OR MEMBER PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH SHALL NOT
 BE CREDITED AGAINST THE LIABILITY OF OTHER LIMITED PARTNERS  OR  MEMBERS
 OF THEIR RESPECTIVE LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY WHO
 ARE  ELIGIBLE FOR THE SAME RELIEF; PROVIDED, HOWEVER THAT THE SUM OF THE
 AMOUNTS OWED BY ALL OF THE PERSONS REQUIRED TO COLLECT TAX OF A  LIMITED
 PARTNERSHIP  OR  LIMITED  LIABILITY  COMPANY  SHALL NOT EXCEED THE TOTAL
 LIABILITY OF SUCH LIMITED PARTNERSHIP OR LIMITED LIABILITY COMPANY.
   § 3. This act shall take effect immediately.
 
                                  PART Y

 S. 7509--B                         26
 
                           Intentionally Omitted
 
                                  PART Z
 
   Section  1. Section 2 of subpart R of part A of chapter 61 of the laws
 of 2017, amending the tax law relating to extending  the  expiration  of
 the  authorization  to the county of Genesee to impose an additional one
 percent of sales and compensating use  taxes,  is  amended  to  read  as
 follows:
   §  2.  Notwithstanding any other provision of law to the contrary, the
 one percent increase in sales and compensating use taxes authorized  for
 the  county of Genesee until November 30, [2019] 2020 pursuant to clause
 (20) of subparagraph (i) of the opening paragraph of section 1210 of the
 tax law, as amended by section one of this act, shall be divided in  the
 same  manner  and  proportion  as  the  existing three percent sales and
 compensating use taxes in such county are divided.
   § 2. Section 2 of subpart Z of part A of chapter 61  of  the  laws  of
 2017,  amending  the  tax  law  relating  to the imposition of sales and
 compensating use taxes by the county of Monroe, is amended  to  read  as
 follows:
   §  2.  Notwithstanding  the  provisions of subdivisions (b) and (c) of
 section 1262 and section 1262-g of the tax law, net collections, as such
 term is defined in section 1262 of the tax law, derived from the imposi-
 tion of sales and compensating use taxes by the county of Monroe at  the
 additional  rate of one percent as authorized pursuant to clause (25) of
 subparagraph (i) of the opening paragraph of section  1210  of  the  tax
 law, as amended by section one of this act, which are in addition to the
 current net collections derived from the imposition of such taxes at the
 three  percent  rate authorized by the opening paragraph of section 1210
 of the tax law, shall be distributed and allocated as follows:  for  the
 period  of  December  1,  2017 through November 30, [2019] 2020 in cash,
 five percent to the school districts in the area of the  county  outside
 the  city  of  Rochester,  three percent to the towns located within the
 county, one and one-quarter percent to the villages located  within  the
 county,  and  ninety and three-quarters percent to the city of Rochester
 and county of Monroe.  The  amount  of  the  ninety  and  three-quarters
 percent  to  be  distributed  and allocated to the city of Rochester and
 county of Monroe shall be distributed and allocated to each so that  the
 combined  total  distribution  and allocation to each from the sales tax
 revenues pursuant to sections 1262 and 1262-g of the tax  law  and  this
 section  shall  result  in  the  same total amount being distributed and
 allocated to the city of Rochester and county of Monroe. The  amount  so
 distributed  and  allocated  to  the  county  shall  be  used for county
 purposes. The foregoing cash payments to the school districts  shall  be
 allocated on the basis of the enrolled public school pupils, thereof, as
 such  term  is  used  in subdivision (b) of section 1262 of the tax law,
 residing in the county of Monroe. The cash payments to the towns located
 within the county of Monroe shall be allocated on the basis of the ratio
 which the population of each town, exclusive of the  population  of  any
 village  or  portion  thereof  located within a town, bears to the total
 population of the towns, exclusive of the  population  of  the  villages
 located  within  such  towns.  The cash payments to the villages located
 within the county shall be allocated on the basis of the ratio which the
 population of each village bears to the total population of the villages
 located within the county. The term population as used in  this  section

 S. 7509--B                         27
 
 shall  have  the same meaning as used in subdivision (b) of section 1262
 of the tax law.
   §  3.  Section  3 of subpart EE of part A of chapter 61 of the laws of
 2017, amending the tax law relating to extending  the  authorization  of
 the county of Onondaga to impose an additional rate of sales and compen-
 sating use taxes, is amended to read as follows:
   §  3.  Notwithstanding  any contrary provision of law, net collections
 from the additional one percent rate of sales and compensating use taxes
 which may be imposed  by  the  county  of  Onondaga  during  the  period
 commencing  December 1, 2018 and ending November 30, [2019] 2020, pursu-
 ant to the authority of section 1210  of  the  tax  law,  shall  not  be
 subject  to any revenue distribution agreement entered into under subdi-
 vision (c) of section 1262 of the tax law, but shall  be  allocated  and
 distributed  or  paid,  at least quarterly, as follows: (i) 1.58% to the
 county of Onondaga for any county purpose; (ii) 97.79% to  the  city  of
 Syracuse;  and  (iii)  .63%  to  the school districts in accordance with
 subdivision (a) of section 1262 of the tax law.
   § 4. Section 2 of subpart GG of part A of chapter 61 of  the  laws  of
 2017,  amending  the  tax law relating to extending the authority of the
 county of Orange to impose an additional rate of sales and  compensating
 use taxes, is amended to read as follows:
   §  2.  Notwithstanding subdivision (c) of section 1262 of the tax law,
 net collections from any additional rate of sales and  compensating  use
 taxes  which  may  be  imposed by the county of Orange during the period
 commencing December 1, 2017, and ending November 30, [2019] 2020, pursu-
 ant to the authority of section 1210 of the tax law, shall  be  paid  to
 the  county of Orange and shall be used by such county solely for county
 purposes and shall not be subject to any revenue distribution  agreement
 entered  into  pursuant  to  the authority of subdivision (c) of section
 1262 of the tax law.
   § 5. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on June 29, 2017.
 
                                  PART AA
 
                           Intentionally Omitted
 
                                  PART BB
 
                           Intentionally Omitted
 
                                  PART CC
 
                           Intentionally Omitted
 
                                  PART DD
 
                           Intentionally Omitted
 
                                  PART EE

   Section  1.  Subdivision  1  of section 208 of the racing, pari-mutuel
 wagering and breeding law, as amended by chapter  140  of  the  laws  of
 2008, is amended to read as follows:
   1.  In consideration of the franchise and in accordance with its fran-
 chise agreement, the franchised corporation shall remit  to  the  state,

 S. 7509--B                         28
 
 each year, no later than April fifth, a franchise fee payment. The fran-
 chise  fee  shall be calculated and equal to the lesser of paragraph (a)
 or (b) of this subdivision as follows: (a) adjusted net income,  includ-
 ing  all sources of audited generally accepted accounting principles net
 income as of December thirty-first (i) plus the amount  of  depreciation
 and  amortization  for  such  year as set forth on the statement of cash
 flows (ii) less the amount received by the  franchised  corporation  for
 capital  expenditures  and  (iii)  less  principal payments made for the
 repayment of debt; or (b) operating cash which is defined as cash avail-
 able on December thirty-first (i) which  excludes  all  restricted  cash
 accounts,  segregated  accounts  as per audited financial statements and
 cash on hand needed to fund the on-track pari-mutuel operations  through
 the vault, (ii) less [forty-five] THREE HUNDRED SIXTY-FIVE days of oper-
 ating  expenses  pursuant  to  generally  accepted accounting principles
 which shall be an average calculated  by  dividing  the  current  year's
 annual  budget  by  the number of days in such year and multiplying that
 number by [forty-five] THREE HUNDRED SIXTY-FIVE.
   § 2. Section 203 of the racing, pari-mutuel wagering and breeding law,
 as amended by chapter 18 of the laws of 2008,  is  amended  to  read  as
 follows:
   §  203.  Right  to  hold race meetings and races.   1. Any corporation
 formed under the provisions of  this  article,  if  so  claimed  in  its
 certificate  of  organization,  and  if  it  shall  comply  with all the
 provisions of this article, and any other corporation  entitled  to  the
 benefits  and  privileges of this article as hereinafter provided, shall
 have the power and the right to hold one or more running  race  meetings
 in  each  year,  and to hold, maintain and conduct running races at such
 meetings. At such running race meetings the corporation, or  the  owners
 of  horses  engaged in such races, or others who are not participants in
 the race, may contribute  purses,  prizes,  premiums  or  stakes  to  be
 contested  for,  but no person or persons other than the owner or owners
 of a horse or horses contesting in  a  race  shall  have  any  pecuniary
 interest in a purse, prize, premium or stake contested for in such race,
 or  be  entitled  to  or  receive any portion thereof after such race is
 finished, and the whole of such purse, prize, premium or stake shall  be
 allotted in accordance with the terms and conditions of such race. Races
 conducted  by  a  franchised corporation shall be permitted only between
 sunrise and sunset.
   2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A FRAN-
 CHISED CORPORATION SHALL BE PERMITTED TO CONDUCT RACES AFTER  SUNSET  AT
 THE  BELMONT  PARK  RACETRACK,  ONLY  ON  THE  MAIN TRACK IN ITS CURRENT
 CONFIGURATION, ONLY IF SUCH RACES CONCLUDE BEFORE HALF PAST TEN O' CLOCK
 POST MERIDIAN, AND ONLY IF SUCH RACES OCCUR  ON  THURSDAYS,  FRIDAYS  OR
 SATURDAYS.  THE  FRANCHISED  CORPORATION SHALL COORDINATE WITH A HARNESS
 RACING ASSOCIATION OR CORPORATION AUTHORIZED TO OPERATE  IN  WESTCHESTER
 COUNTY  TO  ENSURE  THAT  THE STARTING TIMES OF ALL SUCH RACES ARE STAG-
 GERED.
   3. A track first licensed after January first, nineteen hundred  nine-
 ty,  shall  not  conduct  the  simulcasting of thoroughbred races within
 district one, in accordance with article ten of  this  chapter  on  days
 that  a  franchised  corporation is not conducting a race meeting. In no
 event shall thoroughbred races conducted by a track first licensed after
 January first, nineteen hundred ninety be conducted after eight  o'clock
 post meridian.
   §  3.  An  advisory  committee  shall  be  established by the governor
 comprised of individuals with demonstrated interest in  the  performance

 S. 7509--B                         29
 
 of  thoroughbred  and  standardbred  race  horses  to review the present
 structure, operations and funding of equine drug  testing  and  research
 conducted  pursuant  to article nine of the racing, pari-mutuel wagering
 and  breeding  law.    At  a minimum, the advisory committee established
 pursuant to this section shall include among its membership: the  presi-
 dent  or executive director of a horsemen's organization representing at
 least fifty-one percent of the owners and trainers utilizing the facili-
 ties of the franchised corporation; the president or executive  director
 of  the  statewide  thoroughbred  breeders  association representing the
 majority of breeders of registered thoroughbreds in New York state;  the
 president  or executive director of a horsemen's organization represent-
 ing at least fifty-one percent of the owners and  trainers  utilizing  a
 facility  licensed  to  conduct  racing pursuant to article three of the
 racing, pari-mutuel wagering and breeding law; the president  or  execu-
 tive director of the statewide Standardbred breeders association repres-
 enting  the majority of breeders of registered Standardbreds in New York
 state; a representative of the franchised corporation established pursu-
 ant to section two hundred six of the racing, pari-mutuel  wagering  and
 breeding  law;  a  representative  of  a corporation licensed to conduct
 racing pursuant to article two of the racing, pari-mutuel  wagering  and
 breeding  law  that is not a franchised corporation; two representatives
 from separate corporations licensed to conduct racing pursuant to  arti-
 cle  three  of  the racing, pari-mutuel wagering and breeding law; and a
 representative from a state college within this state with  an  approved
 equine  science  program.    Recommendations  shall  be delivered to the
 temporary president of the Senate, speaker of the Assembly and  Governor
 by  December  1, 2018 regarding the future of such research, testing and
 funding. Members of the board shall not be considered policymakers.
   § 4. This act shall take effect immediately; provided,  however,  that
 the  amendments  to  section 203 of the racing, pari-mutuel wagering and
 breeding law made by section two of this act shall expire and be  deemed
 repealed  4 years after the first night of racing conducted after sunset
 pursuant to this act; provided that  the  New  York  Racing  Association
 shall  notify  the  legislative  bill drafting commission of the date of
 such night of racing in order that the commission may maintain an  accu-
 rate  and timely effective data base of the official text of the laws of
 the state of New York in furtherance of effectuating the  provisions  of
 section  44  of the legislative law and section 70-b of the public offi-
 cers law.
 
                                  PART FF
 
   Section 1. Subdivision 2 of section 254  of  the  racing,  pari-mutuel
 wagering and breeding law is amended by adding a new paragraph h to read
 as follows:
   H.  AN AMOUNT AS SHALL BE DETERMINED BY THE FUND, BUT NOT IN EXCESS OF
 THREE PERCENT, TO SUPPORT AND PROMOTE THE ONGOING CARE  OF  RETIRED  NEW
 YORK-BRED  HORSES  IN  A MANNER THAT IS CONSISTENT WITH RULES ADOPTED BY
 THE FUND, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE
 ANY ALLOCATION FOR SUCH PURPOSES.
   § 2. Subdivision 1 of section 332 of the racing, pari-mutuel  wagering
 and  breeding  law  is  amended  by  adding a new paragraph j to read as
 follows:
   J. AN AMOUNT AS SHALL BE DETERMINED BY THE FUND, BUT NOT IN EXCESS  OF
 THREE  PERCENT,  TO  SUPPORT AND PROMOTE THE ONGOING CARE OF RETIRED NEW
 YORK-BRED HORSES IN A MANNER THAT IS CONSISTENT WITH  RULES  ADOPTED  BY

 S. 7509--B                         30
 
 THE FUND, PROVIDED, HOWEVER, THAT THE FUND SHALL NOT BE REQUIRED TO MAKE
 ANY ALLOCATION FOR SUCH PURPOSES.
   § 3. This act shall take effect immediately.
 
                                  PART GG
 
   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  OO  of  chapter  59 of the laws of 2017, 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 [eighteen] NINETEEN; 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

 S. 7509--B                         31
 
 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 [eighteen] NINETEEN; and (iv) no in-home simul-
 casting in the thoroughbred special betting district shall occur without
 the approval of the regional thoroughbred track.
   § 2. Subparagraph (iii) of paragraph d of  subdivision  3  of  section
 1007 of the racing, pari-mutuel wagering and breeding law, as amended by
 section  2  of  part OO of chapter 59 of the laws of 2017, 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 [eighteen] NINETEEN, the amount used exclusively
 for  purses  to  be  awarded  at races conducted by such receiving track
 shall be computed as follows: of the sums so retained, two and  one-half
 percent  of the total pools. Such amount shall be increased or decreased
 in the amount of fifty percent of the difference  in  total  commissions
 determined by comparing the total commissions available after July twen-
 ty-first,  nineteen  hundred  ninety-five  to the total commissions that
 would have been available to such  track  prior  to  July  twenty-first,
 nineteen hundred ninety-five.
   §  3.  The  opening  paragraph of subdivision 1 of section 1014 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  3
 of  part  OO  of  chapter  59 of the laws of 2017, 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 [eighteen] NINETEEN and on any day regardless of
 whether  or not a franchised corporation is conducting a race meeting in
 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth,
 two thousand [eighteen] NINETEEN. On  any  day  on  which  a  franchised
 corporation has not scheduled a racing program but a thoroughbred racing
 corporation  located  within  the state is conducting racing, every off-
 track betting corporation branch office and every simulcasting  facility
 licensed  in  accordance  with  section  one  thousand  seven (that 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 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 OO of chapter 59 of
 the laws of 2017, 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 [eighteen] NINETEEN. This section shall super-
 sede all inconsistent provisions of this chapter.
   § 5. The opening paragraph of subdivision 1 of  section  1016  of  the
 racing,  pari-mutuel  wagering and breeding law, as amended by section 5

 S. 7509--B                         32
 
 of part OO of chapter 59 of the laws of 2017,  is  amended  to  read  as
 follows:
   The  provisions of this section shall govern the simulcasting of races
 conducted at thoroughbred tracks located in another state or country  on
 any  day  during which a franchised corporation is not conducting a race
 meeting in Saratoga county at Saratoga thoroughbred racetrack until June
 thirtieth, two thousand [eighteen]  NINETEEN.  Every  off-track  betting
 corporation  branch  office  and every simulcasting facility licensed in
 accordance with section one thousand seven  that  have  entered  into  a
 written  agreement with such facility's representative horsemen's organ-
 ization as approved by the commission, one thousand eight or  one  thou-
 sand  nine  of  this  article  shall  be authorized to accept wagers and
 display the live  full-card  simulcast  signal  of  thoroughbred  tracks
 (which  may  include  quarter  horse or mixed meetings provided that all
 such wagering on such races shall be construed to be thoroughbred races)
 located in another state or foreign country, subject  to  the  following
 provisions;  provided,  however,  no  such  written  agreement  shall be
 required of a franchised corporation licensed in accordance with section
 one thousand seven of this article:
   § 6. The opening paragraph of section 1018 of the racing,  pari-mutuel
 wagering and breeding law, as amended by section 6 of part OO of chapter
 59 of the laws of 2017, 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 [seventeen] EIGHTEEN, 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 OO of chapter  59  of  the
 laws of 2017, 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,  [2018]  2019;  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

 S. 7509--B                         33
 
 8 of part OO of chapter 59 of the laws of 2017, 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, [2018] 2019; and section eighteen of  this
 act  shall take effect on July 1, 2008 and sections fifty-one and fifty-
 two of this act shall take effect as of the same date as chapter 772  of
 the laws of 1989 took effect.
   §  9.  Paragraph  (a)  of  subdivision 1 of section 238 of the racing,
 pari-mutuel wagering and breeding law, as amended by section 9  of  part
 OO of chapter 59 of the laws of 2017, is amended to read as follows:
   (a)  The  franchised  corporation  authorized  under  this  chapter to
 conduct pari-mutuel betting at a race meeting or races run thereat shall
 distribute all sums deposited in any pari-mutuel pool to the holders  of
 winning  tickets therein, provided such tickets be presented for payment
 before April first of the year following the  year  of  their  purchase,
 less  an  amount  which  shall be established and retained by such fran-
 chised corporation of between twelve to  seventeen  per  centum  of  the
 total  deposits in pools resulting from on-track regular bets, and four-
 teen to twenty-one per centum of the total deposits in  pools  resulting
 from on-track multiple bets and fifteen to twenty-five per centum of the
 total  deposits in pools resulting from on-track exotic bets and fifteen
 to thirty-six per centum of the total deposits in pools  resulting  from
 on-track  super  exotic  bets, plus the breaks. The retention rate to be
 established is subject to the prior approval of the  gaming  commission.
 Such  rate  may not be changed more than once per calendar quarter to be
 effective on the first day of the calendar quarter.  "Exotic  bets"  and
 "multiple  bets"  shall  have  the  meanings  set  forth in section five
 hundred nineteen of this chapter. "Super exotic  bets"  shall  have  the
 meaning  set  forth  in  section  three hundred one of this chapter. For
 purposes of this section, a "pick six bet" shall mean a  single  bet  or
 wager on the outcomes of six races. The breaks are hereby defined as the
 odd  cents over any multiple of five for payoffs greater than one dollar
 five cents but less than five dollars, over  any  multiple  of  ten  for
 payoffs  greater  than  five  dollars but less than twenty-five dollars,
 over any multiple of twenty-five for payoffs  greater  than  twenty-five
 dollars but less than two hundred fifty dollars, or over any multiple of
 fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
 retained there shall be paid  by  such  franchised  corporation  to  the
 commissioner  of  taxation and finance, as a reasonable tax by the state
 for the privilege of conducting pari-mutuel betting on the races run  at
 the  race  meetings  held  by such franchised corporation, the following
 percentages of the total pool for regular and  multiple  bets  five  per
 centum  of regular bets and four per centum of multiple bets plus twenty
 per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
 centum  plus  twenty per centum of the breaks, and for super exotic bets
 seven and one-half per centum plus fifty per centum of the  breaks.  For
 the  period  June  first, nineteen hundred ninety-five through September
 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
 three per centum and such tax on multiple wagers shall be two  and  one-
 half  per  centum,  plus twenty per centum of the breaks. For the period
 September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
 first,  two  thousand  one, such tax on all wagers shall be two and six-
 tenths per centum and for the  period  April  first,  two  thousand  one

 S. 7509--B                         34
 
 through  December  thirty-first,  two thousand [eighteen] NINETEEN, such
 tax on all wagers shall be one and six-tenths per centum, plus, in  each
 such  period,  twenty  per centum of the breaks. Payment to the New York
 state  thoroughbred  breeding  and  development  fund by such franchised
 corporation shall be one-half of one per centum of total daily  on-track
 pari-mutuel  pools  resulting from regular, multiple and exotic bets and
 three per centum of super exotic bets provided, however,  that  for  the
 period September tenth, nineteen hundred ninety-nine through March thir-
 ty-first,  two thousand one, such payment shall be six-tenths of one per
 centum of regular, multiple and exotic pools and for  the  period  April
 first,  two  thousand  one  through  December thirty-first, two thousand
 [eighteen] NINETEEN, such payment  shall  be  seven-tenths  of  one  per
 centum of such pools.
   § 10. This act shall take effect immediately.
 
                                  PART HH
 
                           Intentionally Omitted
 
                                  PART II
 
   Section  1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision
 b of section 1612 of the tax law are REPEALED  and  a  new  subparagraph
 (ii) is added to read as follows:
   (II) LESS A VENDOR'S FEE THE AMOUNT OF WHICH IS TO BE PAID FOR SERVING
 AS A LOTTERY AGENT TO THE TRACK OPERATOR OF A VENDOR TRACK OR THE OPERA-
 TOR  OF  ANY  OTHER VIDEO LOTTERY GAMING FACILITY AUTHORIZED PURSUANT TO
 SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE:
   (A) WHEN A VENDOR TRACK IS LOCATED  WITHIN  DEVELOPMENT  ZONE  ONE  AS
 DEFINED  BY  SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF THIRTY-NINE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (B) WHEN A VENDOR TRACK IS LOCATED  WITHIN  DEVELOPMENT  ZONE  TWO  AS
 DEFINED  BY  SECTION  THIRTEEN  HUNDRED  TEN  OF THE RACING, PARI-MUTUEL
 WAGERING AND BREEDING LAW, AT A RATE OF FORTY-THREE AND ONE-HALF PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER; PROVIDED, HOWEVER, AT A VENDOR  TRACK  LOCATED
 WITHIN  FIFTEEN MILES OF A DESTINATION RESORT GAMING FACILITY AUTHORIZED
 PURSUANT TO ARTICLE THIRTEEN OF THE  RACING,  PARI-MUTUEL  WAGERING  AND
 BREEDING  LAW  SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-ONE PERCENT
 OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER; AND THAT AT  A  VENDOR  TRACK  LOCATED  WITHIN
 FORTY MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN
 25  U.S.C.  § 2703 (8) SHALL RECEIVE A VENDOR FEE AT A RATE OF FIFTY-SIX
 PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR  TRACK  AFTER  PAYOUT
 FOR PRIZES PURSUANT TO THIS CHAPTER;
   (C)  WHEN  A VIDEO LOTTERY FACILITY IS OPERATED AT AQUEDUCT RACETRACK,
 AT A RATE OF FORTY-SEVEN PERCENT OF THE TOTAL  REVENUE  WAGERED  AT  THE
 VIDEO  LOTTERY  GAMING FACILITY AFTER PAYOUT FOR PRIZES PURSUANT TO THIS
 CHAPTER; PROVIDED, HOWEVER, UPON THE EARLIER OF THE DESIGNATION  OF  ONE
 THOUSAND  VIDEO  LOTTERY DEVICES AS HOSTED PURSUANT TO PARAGRAPH FOUR OF
 SUBDIVISION A OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THIS ARTICLE  OR
 APRIL  FIRST, TWO THOUSAND NINETEEN, SUCH RATE SHALL BE FIFTY PERCENT OF
 THE TOTAL REVENUE WAGERED AT THE VIDEO  LOTTERY  GAMING  FACILITY  AFTER
 PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER;

 S. 7509--B                         35
 
   (D)  WHEN  A VIDEO LOTTERY GAMING FACILITY IS LOCATED IN EITHER NASSAU
 OR SUFFOLK COUNTIES AND IS OPERATED BY A CORPORATION ESTABLISHED  PURSU-
 ANT  TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND
 BREEDING LAW, AT A RATE OF  FORTY-FIVE  PERCENT  OF  THE  TOTAL  REVENUE
 WAGERED  AT  THE  VIDEO  LOTTERY GAMING FACILITY AFTER PAYOUT FOR PRIZES
 PURSUANT TO THIS CHAPTER;
   (E) NOTWITHSTANDING ANY PROVISION OF  LAW  TO  THE  CONTRARY,  WHEN  A
 VENDOR  TRACK  IS  LOCATED  WITHIN REGION ONE OR TWO OF DEVELOPMENT ZONE
 TWO, AS SUCH ZONE IS DEFINED IN SECTION  THIRTEEN  HUNDRED  TEN  OF  THE
 RACING,  PARI-MUTUEL  WAGERING  AND  BREEDING  LAW, OR IS LOCATED WITHIN
 REGION SIX OF SUCH DEVELOPMENT ZONE TWO AND IS  LOCATED  WITHIN  ONTARIO
 COUNTY,  SUCH  VENDOR  TRACK  SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL
 COMMISSION.   THE ADDITIONAL COMMISSION RECEIVED  BY  THE  VENDOR  TRACK
 SHALL BE CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE.
   (I)  THE  ADDITIONAL  COMMISSION  IS A PERCENTAGE OF THE TOTAL REVENUE
 WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR  PRIZES  PURSUANT  TO  THIS
 CHAPTER.  THAT PERCENTAGE IS CALCULATED BY SUBTRACTING THE EFFECTIVE TAX
 RATE ON ALL GROSS GAMING REVENUE PAID BY A GAMING  FACILITY  WITHIN  THE
 SAME  REGION  AS  THE  VENDOR  TRACK  FROM THE EDUCATION PERCENTAGE. THE
 EDUCATION PERCENTAGE IS NINETY PERCENT LESS THE PERCENTAGE OF THE VENDOR
 TRACK'S VENDOR FEE. FOR PURPOSES OF THIS CLAUSE, SENECA AND WAYNE  COUN-
 TIES SHALL BE DEEMED TO BE LOCATED WITHIN REGION SIX OF DEVELOPMENT ZONE
 TWO.
   (II)  THE  ADDITIONAL  COMMISSION  PAID  PURSUANT TO THIS SUBPARAGRAPH
 SHALL BE PAID TO A VENDOR TRACK NO LATER THAN SIXTY DAYS AFTER THE CLOSE
 OF THE FISCAL YEAR. THE ADDITIONAL COMMISSION AUTHORIZED BY THIS  CLAUSE
 SHALL  ONLY  BE  APPLIED  TO  REVENUE  WAGERED AT A VENDOR TRACK WHILE A
 GAMING FACILITY IN THE SAME REGION AS THAT  VENDOR  TRACK  IS  OPEN  AND
 OPERATING  PURSUANT  TO  AN  OPERATION  CERTIFICATE  ISSUED  PURSUANT TO
 SECTION THIRTEEN HUNDRED THIRTY-ONE OF THE RACING, PARI-MUTUEL  WAGERING
 AND BREEDING LAW.
   (F)  NOTWITHSTANDING  ANY  PROVISION  OF  LAW  TO THE CONTRARY, WHEN A
 VENDOR TRACK IS LOCATED WITHIN FORTY MILES OF A  NATIVE  AMERICAN  CLASS
 III  GAMING  FACILITY  AS  DEFINED  IN 25 U.S.C. § 2703 (8), SUCH VENDOR
 TRACK SHALL BE ENTITLED TO RECEIVE AN ADDITIONAL HOLD  HARMLESS  COMMIS-
 SION.    THE  ADDITIONAL HOLD HARMLESS COMMISSION RECEIVED BY THE VENDOR
 TRACK SHALL BE CALCULATED PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE.
   (I) THE ADDITIONAL HOLD HARMLESS COMMISSION  PAYABLE  FOR  ANY  FISCAL
 YEAR  SHALL  BE  AN  AMOUNT EQUAL TO THE BASE VENDOR COMMISSION LESS THE
 CURRENT VENDOR FEE. THE BASE VENDOR COMMISSION IS CALCULATED  BY  ADDING
 TOGETHER  THE VENDOR FEE, MARKETING ALLOWANCE, AND VENDOR CAPITAL AWARD,
 THAT THE FACILITY RECEIVED DURING THE  TWELVE-MONTH  PERIOD  IMMEDIATELY
 PRECEDING  JUNE  FIRST,  TWO  THOUSAND FIFTEEN. FOR THE PURPOSES OF THIS
 CALCULATION, A VENDOR FEE SHALL EXCLUDE ANY  DISTRIBUTIONS  REQUIRED  BY
 PARAGRAPH TWO OF THIS SUBDIVISION.
   (II)  THE  ADDITIONAL  HOLD  HARMLESS COMMISSION PAID PURSUANT TO THIS
 SUBPARAGRAPH SHALL BE PAID TO A VENDOR TRACK NO LATER  THAN  SIXTY  DAYS
 AFTER THE CLOSE OF THE FISCAL YEAR. THE ADDITIONAL HOLD HARMLESS COMMIS-
 SION  AUTHORIZED BY THIS CLAUSE SHALL ONLY BE APPLIED TO REVENUE WAGERED
 ON AND AFTER APRIL FIRST, TWO THOUSAND EIGHTEEN AT A VENDOR TRACK  WHILE
 THE  NATIVE AMERICAN CLASS III GAMING FACILITY AS DEFINED IN 25 U.S.C. §
 2703 (8) WITHIN FORTY MILES OF THAT VENDOR TRACK IS OPEN AND OPERATING.
   (G) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  ANY  OPERA-
 TORS  OF  A  VENDOR  TRACK  OR  THE OPERATORS OF ANY OTHER VIDEO LOTTERY
 GAMING FACILITY ELIGIBLE TO RECEIVE A CAPITAL AWARD AS OF DECEMBER THIR-
 TY-FIRST, TWO THOUSAND SEVENTEEN SHALL DEPOSIT  FROM  THEIR  VENDOR  FEE

 S. 7509--B                         36
 
 INTO  A  SEGREGATED ACCOUNT AN AMOUNT EQUAL TO FOUR PERCENT OF THE FIRST
 SIXTY-TWO MILLION FIVE HUNDRED THOUSAND DOLLARS OF  REVENUE  WAGERED  AT
 THE  VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER TO BE
 USED  EXCLUSIVELY  FOR  CAPITAL  INVESTMENTS, EXCEPT FOR AQUEDUCT, WHICH
 SHALL DEPOSIT INTO A SEGREGATED ACCOUNT AN AMOUNT EQUAL TO  ONE  PERCENT
 OF ALL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING FACILITY AFTER PAYOUT
 FOR PRIZES PURSUANT TO THIS CHAPTER UNTIL THE EARLIER OF THE DESIGNATION
 OF  ONE  THOUSAND  VIDEO LOTTERY DEVICES AS HOSTED PURSUANT TO PARAGRAPH
 FOUR OF SUBDIVISION A OF SECTION SIXTEEN  HUNDRED  SEVENTEEN-A  OF  THIS
 ARTICLE  OR  APRIL  FIRST, TWO THOUSAND NINETEEN, WHEN AT SUCH TIME FOUR
 PERCENT OF ALL REVENUE WAGERED AT  THE  VIDEO  LOTTERY  GAMING  FACILITY
 AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO
 A  SEGREGATED  ACCOUNT  FOR CAPITAL INVESTMENTS. VENDOR TRACKS AND VIDEO
 LOTTERY GAMING FACILITIES SHALL  BE  PERMITTED  TO  WITHDRAW  FUNDS  FOR
 PROJECTS  APPROVED  BY  THE  COMMISSION TO IMPROVE THE FACILITIES OF THE
 VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY WHICH ENHANCE OR  MAINTAIN
 THE  VIDEO LOTTERY GAMING FACILITY INCLUDING, BUT NOT LIMITED TO HOTELS,
 OTHER LODGING FACILITIES, ENTERTAINMENT FACILITIES,  RETAIL  FACILITIES,
 DINING FACILITIES, EVENTS ARENAS, PARKING GARAGES AND OTHER IMPROVEMENTS
 AND  AMENITIES  CUSTOMARY  TO  A GAMING FACILITY, PROVIDED, HOWEVER, THE
 VENDOR TRACKS AND VIDEO LOTTERY GAMING FACILITIES SHALL BE PERMITTED  TO
 WITHDRAW  FUNDS  FOR  UNREIMBURSED  CAPITAL AWARDS APPROVED PRIOR TO THE
 EFFECTIVE DATE OF THIS SUBPARAGRAPH. ANY PROCEEDS FROM  THE  DIVESTITURE
 OF  ANY ASSETS ACQUIRED THROUGH THESE CAPITAL FUNDS OR ANY PRIOR CAPITAL
 AWARD MUST BE DEPOSITED INTO THIS SEGREGATED ACCOUNT, PROVIDED  THAT  IF
 THE  VENDOR  TRACK  OR  VIDEO LOTTERY GAMING FACILITY CEASES USE OF SUCH
 ASSET FOR GAMING PURPOSES OR TRANSFERS THE ASSET  TO  A  RELATED  PARTY,
 SUCH  VENDOR  TRACK  OR  VIDEO  LOTTERY GAMING FACILITY SHALL DEPOSIT AN
 AMOUNT EQUAL TO THE FAIR MARKET VALUE OF THAT ASSET INTO THE ACCOUNT. IN
 THE EVENT A VENDOR TRACK OR VIDEO LOTTERY GAMING FACILITY CEASES  GAMING
 OPERATIONS, ANY BALANCE IN THE ACCOUNT ALONG WITH AN AMOUNT EQUAL TO THE
 VALUE  OF ALL REMAINING ASSETS ACQUIRED THROUGH THIS FUND OR PRIOR CAPI-
 TAL AWARDS SHALL BE RETURNED TO THE STATE FOR  DEPOSIT  INTO  THE  STATE
 LOTTERY  FUND FOR EDUCATION AID, EXCEPT FOR AQUEDUCT, WHICH SHALL RETURN
 TO THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR  EDUCATION  AID
 ALL AMOUNTS IN EXCESS OF THE AMOUNT NEEDED TO FUND A PROJECT PURSUANT TO
 AN  AGREEMENT WITH THE OPERATOR TO CONSTRUCT AN EXPANSION OF THE FACILI-
 TY, HOTEL, AND CONVENTION AND EXHIBITION SPACE REQUIRING A MINIMUM CAPI-
 TAL INVESTMENT OF THREE  HUNDRED  MILLION  DOLLARS  AND  ANY  SUBSEQUENT
 AMENDMENTS  TO SUCH AGREEMENT. THE COMPTROLLER OR HIS LEGALLY AUTHORIZED
 REPRESENTATIVE IS AUTHORIZED TO AUDIT ANY AND ALL EXPENDITURES MADE  OUT
 OF  THESE  SEGREGATED CAPITAL ACCOUNTS. NOTWITHSTANDING THE PRECEDING, A
 VENDOR TRACK LOCATED IN ONTARIO COUNTY MAY WITHDRAW UP  TO  TWO  MILLION
 DOLLARS  FROM THIS ACCOUNT FOR THE PURPOSE OF CONSTRUCTING A TURF COURSE
 AT THE VENDOR TRACK.
   (H) NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  FREE  PLAY
 ALLOWANCE  CREDITS  AUTHORIZED BY THE DIVISION PURSUANT TO SUBDIVISION F
 OF SECTION SIXTEEN HUNDRED SEVENTEEN-A OF  THIS  ARTICLE  SHALL  NOT  BE
 INCLUDED IN THE CALCULATION OF THE TOTAL AMOUNT WAGERED ON VIDEO LOTTERY
 GAMES,  THE TOTAL AMOUNT WAGERED AFTER PAYOUT OF PRIZES, THE VENDOR FEES
 PAYABLE TO THE OPERATORS OF VIDEO LOTTERY GAMING FACILITIES, FEES  PAYA-
 BLE  TO  THE  DIVISION'S  VIDEO LOTTERY GAMING EQUIPMENT CONTRACTORS, OR
 RACING SUPPORT PAYMENTS.
   (I) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE OPERATOR
 OF A VENDOR TRACK OR THE OPERATOR OF  ANY  OTHER  VIDEO  LOTTERY  GAMING
 FACILITY  SHALL  FUND  A  MARKETING  AND  PROMOTION  PROGRAM  OUT OF THE

 S. 7509--B                         37
 
 VENDOR'S FEE. EACH OPERATOR SHALL SUBMIT AN ANNUAL  MARKETING  PLAN  FOR
 THE  REVIEW  AND APPROVAL OF THE COMMISSION AND ANY OTHER REQUIRED DOCU-
 MENTS DETAILING PROMOTIONAL ACTIVITIES AS PRESCRIBED BY THE  COMMISSION.
 THE  COMMISSION  SHALL  HAVE  THE  RIGHT  TO REJECT ANY ADVERTISEMENT OR
 PROMOTION THAT DOES NOT PROPERLY REPRESENT THE MISSION OR  INTERESTS  OF
 THE LOTTERY OR ITS PROGRAMS.
   (J)  NOTWITHSTANDING  CLAUSE  (G) OF THIS SUBPARAGRAPH, THE COMMISSION
 SHALL BE ABLE TO AUTHORIZE A VENDOR TRACK LOCATED WITHIN ONEIDA  COUNTY,
 WITHIN FIFTEEN MILES OF A NATIVE AMERICAN CLASS III GAMING FACILITY, AND
 WHO  HAS  MAINTAINED  AT  LEAST  NINETY  PERCENT OF FULL-TIME EQUIVALENT
 EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND SIXTEEN, TO WITHDRAW
 FUNDS FROM THE SEGREGATED ACCOUNT ESTABLISHED  IN  CLAUSE  (G)  OF  THIS
 SUBPARAGRAPH  UP TO AN AMOUNT EQUAL TO FOUR PERCENT OF THE TOTAL REVENUE
 WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR  PRIZES  PURSUANT  TO  THIS
 CHAPTER EACH YEAR, FOR OPERATIONS.
   § 2. This act shall take effect immediately; provided, however, clause
 (J) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612
 of  the  tax law as added by section one of this act shall expire and be
 deemed repealed June 29, 2019.
 
                                  PART JJ
 
   Section 1. Subsection (a) of section 614 of the tax law, as amended by
 chapter 170 of the laws of 1994, is amended to read as follows:
   (a) Unmarried individual. For taxable years beginning  after  nineteen
 hundred  ninety-six, the New York standard deduction of a resident indi-
 vidual who is not married nor the head of a household  nor  a  surviving
 spouse nor an individual [whose federal exemption amount is zero] WHO IS
 CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven
 thousand  five  hundred dollars; for taxable years beginning in nineteen
 hundred ninety-six, such standard deduction shall be seven thousand four
 hundred dollars; for taxable years beginning in nineteen  hundred  nine-
 ty-five,  such  standard  deduction  shall  be  six thousand six hundred
 dollars; and for taxable years beginning after nineteen hundred  eighty-
 nine  and  before  nineteen hundred ninety-five, such standard deduction
 shall be six thousand dollars.
   § 2. Section 612  of  the  tax  law  is  amended  by  adding  two  new
 subsections (w) and (x) to read as follows:
   (W)  ALIMONY  MODIFICATIONS.  (1) IN THE CASE OF APPLICABLE ALIMONY OR
 SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS  INCOME  ANY
 APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER
 DURING THE TAXABLE YEAR.
   (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA-
 BLE  ALIMONY  OR  SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER
 DURING THE TAXABLE YEAR.
   (2) (A) THE TERM "ALIMONY  OR  SEPARATE  MAINTENANCE  PAYMENTS"  MEANS
 PAYMENTS  AS  DEFINED  UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE
 CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97.
   (B) THE TERM "APPLICABLE ALIMONY  OR  SEPARATE  MAINTENANCE  PAYMENTS"
 MEANS  PAYMENTS  MADE  UNDER  AN  ALIMONY  OR  SEPARATION INSTRUMENT (AS
 DEFINED IN SECTION SEVENTY-ONE OF THE INTERNAL REVENUE  CODE  IN  EFFECT
 IMMEDIATELY  PRIOR  TO  THE  ENACTMENT  OF  PUBLIC  LAW 115-97) THAT WAS
 EXECUTED AFTER DECEMBER THIRTY-FIRST, TWO  THOUSAND  EIGHTEEN,  AND  ANY
 DIVORCE  OR  SEPARATION  INSTRUMENT  EXECUTED ON OR BEFORE SUCH DATE AND

 S. 7509--B                         38
 
 MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE
 AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION.
   (X) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN
 THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING
 EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A)  THERE  SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY
 APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  RECEIVED  BY  THE
 TAXPAYER DURING THE TAXABLE YEAR.
   (B)  THERE  SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY
 APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR.
   (2) APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  AND  MOVING
 EXPENSES  ARE  THOSE  DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTIONS
 ONE HUNDRED THIRTY-TWO AND SECTION TWO HUNDRED SEVENTEEN,  RESPECTFULLY,
 OF  THE  INTERNAL  REVENUE  CODE  IMMEDIATELY  PRIOR TO THE ENACTMENT OF
 PUBLIC LAW 115-97.
   § 3. Subsection (a) of section 615 of  the  tax  law,  as  amended  by
 section  1  of  part HH of chapter 57 of the laws of 2010, is amended to
 read as follows:
   (a) General. If federal taxable income of  a  resident  individual  is
 determined  by  itemizing  deductions  OR  CLAIMING THE FEDERAL STANDARD
 DEDUCTION from his OR HER federal adjusted gross income, he OR  SHE  may
 elect  to  deduct his OR HER New York itemized deduction [in lieu of] OR
 CLAIM his OR HER New York standard  deduction.  The  New  York  itemized
 deduction  of a resident individual means the total amount of his OR HER
 deductions from federal adjusted gross income ALLOWED, other than feder-
 al deductions for personal exemptions, as provided in the  laws  of  the
 United  States  for  the taxable year,  AS SUCH DEDUCTIONS EXISTED IMME-
 DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with  the  modifica-
 tions   specified   in  this  section,  except  as  provided  for  under
 subsections (f) and (g) of this section.
   § 4. Subdivision (a) of section 11-1714 of the administrative code  of
 the  city of New York, as amended by chapter 170 of the laws of 1994, is
 amended to read as follows:
   (a) Unmarried individual. For taxable years beginning  after  nineteen
 hundred ninety-six, the city standard deduction of a city resident indi-
 vidual  who  is  not married nor the head of a household nor a surviving
 spouse nor an individual [whose federal exemption amount is zero] WHO IS
 CLAIMED AS A DEPENDENT BY ANOTHER NEW YORK STATE TAXPAYER shall be seven
 thousand five hundred dollars; for taxable years beginning  in  nineteen
 hundred ninety-six, such standard deduction shall be seven thousand four
 hundred  dollars;  for taxable years beginning in nineteen hundred nine-
 ty-five, such standard deduction  shall  be  six  thousand  six  hundred
 dollars;  and for taxable years beginning after nineteen hundred eighty-
 nine and before nineteen hundred ninety-five,  such  standard  deduction
 shall be six thousand dollars.
   §  5.  Section  11-1712  of the administrative code of the city of New
 York is amended by adding two new subdivisions (u) and (v)  to  read  as
 follows:
   (U)  ALIMONY  MODIFICATIONS.  (1) IN THE CASE OF APPLICABLE ALIMONY OR
 SEPARATE MAINTENANCE PAYMENTS, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A) THERE SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS  INCOME  ANY
 APPLICABLE ALIMONY OR SEPARATE MAINTENANCE PAYMENTS MADE BY THE TAXPAYER
 DURING THE TAXABLE YEAR.
   (B) THERE SHALL BE ADDED TO FEDERAL ADJUSTED GROSS INCOME ANY APPLICA-
 BLE  ALIMONY  OR  SEPARATE MAINTENANCE PAYMENTS RECEIVED BY THE TAXPAYER
 DURING THE TAXABLE YEAR.

 S. 7509--B                         39
 
   (2) (A) THE TERM "ALIMONY  OR  SEPARATE  MAINTENANCE  PAYMENTS"  MEANS
 PAYMENTS  AS  DEFINED  UNDER SECTION SEVENTY-ONE OF THE INTERNAL REVENUE
 CODE IN EFFECT IMMEDIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97.
   (B)  THE  TERM  "APPLICABLE  ALIMONY OR SEPARATE MAINTENANCE PAYMENTS"
 MEANS PAYMENTS MADE  UNDER  AN  ALIMONY  OR  SEPARATION  INSTRUMENT  (AS
 DEFINED  IN  SECTION  SEVENTY-ONE OF THE INTERNAL REVENUE CODE IN EFFECT
 IMMEDIATELY PRIOR TO THE  ENACTMENT  OF  PUBLIC  LAW  115-97)  THAT  WAS
 EXECUTED  AFTER  DECEMBER  THIRTY-FIRST,  TWO THOUSAND EIGHTEEN, AND ANY
 DIVORCE OR SEPARATION INSTRUMENT EXECUTED ON OR  BEFORE  SUCH  DATE  AND
 MODIFIED AFTER SUCH DATE IF THE MODIFICATION EXPRESSLY PROVIDES THAT THE
 AMENDMENTS MADE BY THIS SECTION APPLY TO SUCH MODIFICATION.
   (V) QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING EXPENSES. (1) IN
 THE CASE OF APPLICABLE QUALIFIED MOVING EXPENSE REIMBURSEMENT AND MOVING
 EXPENSES, THE FOLLOWING MODIFICATIONS SHALL APPLY:
   (A)  THERE  SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY
 APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  RECEIVED  BY  THE
 TAXPAYER DURING THE TAXABLE YEAR.
   (B)  THERE  SHALL BE SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME ANY
 APPLICABLE MOVING EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR.
   (2) APPLICABLE  QUALIFIED  MOVING  EXPENSE  REIMBURSEMENT  AND  MOVING
 EXPENSES ARE THOSE DEDUCTIONS AS ALLOWED BY PARAGRAPH (G) OF SECTION ONE
 HUNDRED  THIRTY-TWO  AND SECTION TWO HUNDRED SEVENTEEN, RESPECTFULLY, OF
 THE INTERNAL REVENUE CODE IMMEDIATELY PRIOR TO THE ENACTMENT  OF  PUBLIC
 LAW 115-97.
   §  6. Subdivision (a) of section 11-1715 of the administrative code of
 the city of New York, as amended by section 5 of part HH of  chapter  57
 of the laws of 2010, is amended to read as follows:
   (a)  General.  If federal taxable income of a city resident individual
 is determined by itemizing deductions OR CLAIMING THE  FEDERAL  STANDARD
 DEDUCTION  from  his OR HER federal adjusted gross income, such resident
 individual may elect to deduct his OR HER city  itemized  deduction  [in
 lieu  of] OR CLAIM his OR HER city standard deduction. The city itemized
 deduction of a city resident individual means the total amount of his OR
 HER deductions from federal adjusted gross income  ALLOWED,  other  than
 federal  deductions  for personal exemptions, as provided in the laws of
 the United States for the taxable year, AS SUCH DEDUCTIONS EXISTED IMME-
 DIATELY PRIOR TO THE ENACTMENT OF PUBLIC LAW 115-97 with  the  modifica-
 tions  specified  in this section, except as provided for under subdivi-
 sions (f) and (g) of this section.
   § 7. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART KK
 
   Section 1. Paragraph (b) of subdivision 6-a of section 208 of the  tax
 law,  as  amended  by section 5-a of part T of chapter 59 of the laws of
 2015, is amended to read as follows:
   (b) "Exempt CFC income" means (I) EXCEPT WITH RESPECT  TO  ANY  INCOME
 DEFINED  IN  SUBPARAGRAPHS  (II) AND (III) OF THIS PARAGRAPH, the income
 required to be included in the taxpayer's federal gross income  pursuant
 to  subsection (a) of section 951 of the internal revenue code, received
 from a corporation that  is  conducting  a  unitary  business  with  the
 taxpayer but is not included in a combined report with the taxpayer, AND
 (II)  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION SIX
 OF THIS SECTION, THE INCOME REQUIRED TO BE INCLUDED  IN  THE  TAXPAYER'S
 FEDERAL  GROSS  INCOME PURSUANT TO SUBSECTION (A) OF SUCH SECTION 951 OF

 S. 7509--B                         40
 
 THE INTERNAL REVENUE CODE BY REASON OF SUBSECTION (A) OF SECTION 965  OF
 THE  INTERNAL REVENUE CODE, AS ADJUSTED BY SUBSECTION (B) OF SECTION 965
 OF THE INTERNAL REVENUE CODE, AND WITHOUT REGARD TO  SUBSECTION  (C)  OF
 SUCH  SECTION,  RECEIVED  FROM  A  CORPORATION THAT IS NOT INCLUDED IN A
 COMBINED REPORT WITH THE TAXPAYER, LESS, AND (III)  NOTWITHSTANDING  THE
 PROVISIONS  OF  PARAGRAPH  (A)  OF  SUBDIVISION SIX OF THIS SECTION, THE
 INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S  FEDERAL  GROSS  INCOME
 PURSUANT  TO SUBSECTION (A) OF SECTION 951 OF THE INTERNAL REVENUE CODE,
 WITHOUT REGARD TO THE DEDUCTION UNDER SECTION 250 OF THE INTERNAL REVEN-
 UE CODE, GENERATED BY A CORPORATION THAT IS NOT INCLUDED IN  A  COMBINED
 REPORT  WITH  THE TAXPAYER, less, in the discretion of the commissioner,
 any interest deductions directly  or  indirectly  attributable  to  that
 income.  In lieu of subtracting from its exempt CFC income the amount of
 those interest deductions, the taxpayer may make a revocable election to
 reduce its total exempt CFC income by forty  percent.  If  the  taxpayer
 makes  this election, the taxpayer must also make the elections provided
 for in paragraph (b) of subdivision six of this  section  and  paragraph
 (c)  of  this  subdivision.  If  the  taxpayer subsequently revokes this
 election, the taxpayer must revoke the elections provided for  in  para-
 graph  (b)  of subdivision six of this section and paragraph (c) of this
 subdivision. A taxpayer which does not make this election because it has
 no exempt CFC income will not  be  precluded  from  making  those  other
 elections.
   §  1-a.  Paragraph  (b)  of  subdivision  5-a of section 11-652 of the
 administrative code of the city of New York, as added by  section  1  of
 part D of chapter 60 of the laws of 2015, is amended to read as follows:
   (b)  "Exempt  CFC  income" means (I) EXCEPT WITH RESPECT TO ANY INCOME
 DEFINED IN SUBPARAGRAPHS (II) AND (III) OF THIS  PARAGRAPH,  the  income
 required  to be included in the taxpayer's federal gross income pursuant
 to subsection (a) of section nine  hundred  fifty-one  of  the  internal
 revenue  code,  received from a corporation that is conducting a unitary
 business with the taxpayer but is not included in a combined report with
 the taxpayer, (II) NOTWITHSTANDING THE PROVISIONS OF  PARAGRAPH  (A)  OF
 SUBDIVISION  SIX OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW, THE INCOME
 REQUIRED TO BE INCLUDED IN THE TAXPAYER'S FEDERAL GROSS INCOME  PURSUANT
 TO  SUBSECTION (A) OF SECTION 951 OF THE INTERNAL REVENUE CODE BY REASON
 OF SUBSECTION (A) OF SECTION  965  OF  THE  INTERNAL  REVENUE  CODE,  AS
 ADJUSTED  BY SUBSECTION (B) OF SECTION 965 OF THE INTERNAL REVENUE CODE,
 AND WITHOUT REGARD TO SUBSECTION (C) OF SUCH SECTION,  RECEIVED  FROM  A
 CORPORATION THAT IS NOT INCLUDED IN A COMBINED REPORT WITH THE TAXPAYER,
 AND (III) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION
 SIX  OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW, THE INCOME REQUIRED TO
 BE  INCLUDED  IN  THE  TAXPAYER'S  FEDERAL  GROSS  INCOME  PURSUANT   TO
 SUBSECTION  (A)  OF  SECTION  951  OF THE INTERNAL REVENUE CODE, WITHOUT
 REGARD TO THE DEDUCTION UNDER SECTION 250 OF THE INTERNAL REVENUE  CODE,
 GENERATED  BY  A  CORPORATION  THAT IS NOT INCLUDED IN A COMBINED REPORT
 WITH THE TAXPAYER, less, (IV) in the discretion of the  commissioner  of
 finance,  any interest deductions directly or indirectly attributable to
 that income. In lieu of subtracting  from  its  exempt  CFC  income  the
 amount  of  those interest deductions, the taxpayer may make a revocable
 election to reduce its total exempt CFC income by forty percent. If  the
 taxpayer  makes this election, the taxpayer must also make the elections
 provided for in paragraph (b) of subdivision five of  this  section  and
 paragraph  (c) of this subdivision. If the taxpayer subsequently revokes
 this election, the taxpayer must revoke the elections  provided  for  in
 paragraph  (b)  of subdivision five of this section and paragraph (c) of

 S. 7509--B                         41
 
 this subdivision.  A taxpayer which does not make this election  because
 it  has  no  exempt  CFC  income will not be precluded from making those
 other elections.
   §  2.  Subparagraph 6 of paragraph (a) of subdivision 9 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:
   (6)  any amount treated as dividends pursuant to section seventy-eight
 of the internal revenue code TO THE EXTENT THAT SUCH DIVIDENDS  ARE  NOT
 DEDUCTED  UNDER  SUBPARAGRAPH (B)(II) OF PARAGRAPH (1) OF SUBSECTION (A)
 OF SECTION 250 OF SUCH CODE;
   § 2-a. Subparagraph 2-a of paragraph (a) of subdivision 8  of  section
 11-652  of  the administrative code of the city of New York, as added by
 section 1 of part D of chapter 60 of the laws of  2015,  is  amended  to
 read as follows:
   (2-a)  any  amounts  treated as dividends pursuant to section seventy-
 eight of the internal revenue code, TO THE EXTENT  THAT  SUCH  DIVIDENDS
 ARE  NOT  DEDUCTED  UNDER  SUBPARAGRAPH  (B)(II)  OF  PARAGRAPH  ONE  OF
 SUBSECTION (A) OF SECTION 250 OF SUCH CODE;
   § 3. Paragraph (b) of subdivision 9 of section 208 of the tax  law  is
 amended  by  adding four new subparagraphs 23, 24, 25, and 26 to read as
 follow:
   (23)  THE  AMOUNT  OF  ANY  FEDERAL  DEDUCTION  ALLOWED  PURSUANT   TO
 SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE.
   (24)  THE AMOUNT OF THE FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBPARA-
 GRAPH (B)(I) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION  250  OF  THE
 INTERNAL REVENUE CODE.
   (25) THE AMOUNT DISALLOWED AS A DEDUCTION PURSUANT TO PARAGRAPH ONE OF
 SUBSECTION (J) OF SECTION 163 OF THE INTERNAL REVENUE CODE.
   (26)  ANY  AMOUNT  DEDUCTED BY REASON OF A CARRY FORWARD OF DISALLOWED
 BUSINESS INTEREST PURSUANT TO PARAGRAPH TWO OF SUBSECTION (J) OF SECTION
 163 OF THE INTERNAL REVENUE CODE.
   § 3-a. Subparagraph 19 of paragraph (b) of subdivision  8  of  section
 11-652  of  the administrative code of the city of New York, as added by
 section 1 of part D of chapter 60 of the laws of 2015,  is  amended  and
 four new subparagraphs 20, 21, 22, and 23 are added to read as follows:
   (19) the amount of any federal deduction for taxes imposed under arti-
 cle twenty-three of the tax law[.];
   (20)   THE  AMOUNT  OF  ANY  FEDERAL  DEDUCTION  ALLOWED  PURSUANT  TO
 SUBSECTION (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE;
   (21) THE AMOUNT OF THE FEDERAL DEDUCTION ALLOWED PURSUANT TO  SUBPARA-
 GRAPH  (B)(I)  OF  PARAGRAPH ONE OF SUBSECTION (A) OF SECTION 250 OF THE
 INTERNAL REVENUE CODE;
   (22) THE AMOUNT DISALLOWED AS A DEDUCTION PURSUANT TO PARAGRAPH ONE OF
 SUBSECTION (J) OF SECTION 163 OF THE INTERNAL REVENUE CODE;
   (23) ANY AMOUNT DEDUCTED BY REASON OF A CARRY  FORWARD  OF  DISALLOWED
 BUSINESS INTEREST PURSUANT TO PARAGRAPH TWO OF SUBSECTION (J) OF SECTION
 163 OF THE INTERNAL REVENUE CODE.
   §  4. Paragraph 1 of subsection (c) of section 1085 of the tax law, as
 amended by section 13-a of part Q of chapter 60 of the laws of 2016,  is
 amended to read as follows:
   (1) If any taxpayer fails to file a declaration of estimated tax under
 article  nine-A  of  this chapter, or fails to pay all or any part of an
 amount which is applied as an installment against such estimated tax, it
 shall be deemed to have made an underpayment  of  estimated  tax.  There
 shall  be  added to the tax for the taxable year an amount at the under-
 payment rate set by the commissioner pursuant to  section  one  thousand

 S. 7509--B                         42
 
 ninety-six  of  this article, or if no rate is set, at the rate of seven
 and one-half percent per annum upon the amount of the  underpayment  for
 the  period  of the underpayment but not beyond the fifteenth day of the
 [third]  FOURTH month following the close of the taxable year. PROVIDED,
 HOWEVER, THAT, FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,
 TWO  THOUSAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN,
 NO AMOUNT SHALL BE ADDED TO THE TAX WITH RESPECT TO THE PORTION OF  SUCH
 TAX  RELATED  TO THE AMOUNT OF ANY INTEREST DEDUCTIONS DIRECTLY OR INDI-
 RECTLY ATTRIBUTABLE TO THE AMOUNT INCLUDED IN EXEMPT CFC INCOME PURSUANT
 TO SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISION  SIX-A  OF  SECTION
 TWO HUNDRED EIGHT OF THIS CHAPTER OR THE FORTY PERCENT REDUCTION OF SUCH
 EXEMPT  CFC  INCOME  IN  LIEU  OF  INTEREST  ATTRIBUTION IF THE ELECTION
 DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION SIX-A OF SUCH SECTION IS MADE.
 The amount of the underpayment shall be, with respect to any installment
 of estimated tax computed on the basis of either  the  preceding  year's
 tax  or  the  second  preceding  year's  tax,  the  excess of the amount
 required to be paid over the amount, if any, paid on or before the  last
 day  prescribed  for such payment or, with respect to any other install-
 ment of estimated tax, the excess of the amount of the installment which
 would be required to be paid if the estimated tax were equal to  ninety-
 one  percent  of the tax shown on the return for the taxable year (or if
 no return was filed, ninety-one percent of the tax for such  year)  over
 the  amount,  if  any, of the installment paid on or before the last day
 prescribed for such payment. In any case in  which  there  would  be  no
 underpayment  if  "eighty  percent"  were  substituted  for  "ninety-one
 percent" each place it appears in this subsection, the addition  to  the
 tax  shall  be  equal  to  seventy-five  percent of the amount otherwise
 determined. No underpayment shall be deemed to exist with respect  to  a
 declaration  or installment otherwise due on or after the termination of
 existence of the taxpayer.
   § 4-a. Subdivision 3 of section 11-676 of the administrative  code  of
 the  city  of new York, as amended by section 12 of part D of chapter 60
 of the laws of 2015, is amended to read as follows:
   3. Failure to file declaration or underpayment of  estimated  tax.  If
 any taxpayer fails to file a declaration of estimated tax under subchap-
 ter  two,  three  or three-A of this chapter, or fails to pay all or any
 part of an amount which is applied as an installment against such  esti-
 mated  tax, it shall be deemed to have made an underpayment of estimated
 tax.  There shall be added to the tax for the taxable year an amount  at
 the  underpayment  rate  set  by the commissioner of finance pursuant to
 section 11-687 of this subchapter, or, if no rate is set, at the rate of
 seven and one-half percent per annum upon the amount of the underpayment
 for the period of the underpayment but not beyond the fifteenth  day  of
 the  [third]  FOURTH  month  following  the  close  of the taxable year.
 PROVIDED, HOWEVER, THAT, FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY
 FIRST, TWO THOUSAND SEVENTEEN AND BEFORE  JANUARY  FIRST,  TWO  THOUSAND
 EIGHTEEN,  NO  AMOUNT  SHALL  BE  ADDED  TO  THE TAX WITH RESPECT TO THE
 PORTION OF SUCH TAX RELATED TO THE AMOUNT  OF  ANY  INTEREST  DEDUCTIONS
 DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO THE AMOUNT INCLUDED IN EXEMPT CFC
 INCOME  PURSUANT  TO  SUBPARAGRAPH  (II) OF PARAGRAPH (B) OF SUBDIVISION
 SIX-A OF SECTION TWO HUNDRED EIGHT OF THE TAX LAW OR THE  FORTY  PERCENT
 REDUCTION  OF  SUCH EXEMPT CFC INCOME IN LIEU OF INTEREST ATTRIBUTION IF
 THE ELECTION DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION SIX-A OF  SECTION
 TWO HUNDRED EIGHT OF THE TAX LAW IS MADE. The amount of the underpayment
 shall  be,  with respect to any installment of estimated tax computed on
 the basis of the preceding year's tax, the excess of the amount required

 S. 7509--B                         43
 
 to be paid over the amount, if any, paid  on  or  before  the  last  day
 prescribed for such payment or, with respect to any other installment of
 estimated  tax,  the excess of the amount of the installment which would
 be required to be paid if the estimated tax were equal to ninety percent
 of the tax shown on the return for the taxable year (or if no return was
 filed, ninety percent of the tax for such year) over the amount, if any,
 of  the  installment  paid on or before the last day prescribed for such
 payment. In any case in which there would be no underpayment if  "eighty
 percent"  were substituted for "ninety percent" each place it appears in
 this subdivision, the addition to the tax shall be equal to seventy-five
 percent of the amount otherwise determined.  No  underpayment  shall  be
 deemed  to  exist with respect to a declaration or installment otherwise
 due on or after the termination of existence of the taxpayer.
   § 4-b. Subparagraph 11 of paragraph (a) of subdivision  9  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 and a new paragraph (u) is added to read as
 follows:
   (11) the amount deductible pursuant to [paragraph] PARAGRAPHS (j)  AND
 (U) of this subdivision; and
   (U)  A  TAXPAYER  SHALL BE ALLOWED A DEDUCTION IN COMPUTING ENTIRE NET
 INCOME FOR ANY FDIC PREMIUM PAID OR INCURRED BY  THE  TAXPAYER  THAT  IS
 DISALLOWED  AS  A  DEDUCTION  UNDER SUBSECTION (R) OF SECTION 162 OF THE
 INTERNAL REVENUE CODE.
   § 4-c. Subparagraph 10 of paragraph (a) of subdivision  8  of  section
 11-652 of the administrative code of the city of New York, as amended by
 section  1 of part D of chapter 60 of the laws of 2015, is amended and a
 new paragraph (u) is added to read as follows:
   (10) the amount deductible pursuant to [paragraph] PARAGRAPHS (j)  AND
 (U) of this subdivision;
   (U)  A  TAXPAYER  SHALL BE ALLOWED A DEDUCTION IN COMPUTING ENTIRE NET
 INCOME FOR ANY FDIC PREMIUM PAID OR INCURRED BY  THE  TAXPAYER  THAT  IS
 DISALLOWED  AS  A  DEDUCTION  UNDER SUBSECTION (R) OF SECTION 162 OF THE
 INTERNAL REVENUE CODE.
   § 5. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2017.
 
                                  PART LL
 
                           Intentionally omitted
 
                                  PART MM
 
                           Intentionally omitted
 
                                  PART NN
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 431 to read as follows:
   § 431. SENIOR CAPPED REAL PROPERTY SCHOOL TAX RATE. 1. (A) RESIDENTIAL
 REAL PROPERTY OWNED AND OCCUPIED BY ONE OR MORE PERSONS, EACH OF WHOM IS
 SEVENTY  YEARS  OF  AGE  OR OVER ON OR BEFORE THE TAXABLE STATUS DATE IN
 TAXABLE YEAR TWO THOUSAND NINETEEN AND MEETS EACH  OF  THE  REQUIREMENTS
 FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET FORTH IN SECTION FOUR
 HUNDRED  TWENTY-FIVE OF THIS ARTICLE, OR RESIDENTIAL REAL PROPERTY OWNED
 AND OCCUPIED BY HUSBAND AND WIFE, ONE OF WHOM IS SEVENTY YEARS OF AGE OR

 S. 7509--B                         44
 
 OVER AND MEETS EACH OF THE REQUIREMENTS FOR THE ENHANCED  EXEMPTION  FOR
 SENIOR  CITIZENS  SET  FORTH IN SECTION FOUR HUNDRED TWENTY-FIVE OF THIS
 ARTICLE, SHALL BE ELIGIBLE FOR THE CAPPED REAL PROPERTY SCHOOL TAX  RATE
 SET  FORTH  IN  THIS SECTION, PROVIDED THE SCHOOL DISTRICT, AFTER PUBLIC
 HEARING, ADOPTS A  RESOLUTION PROVIDING THEREFOR. FOR PURPOSES  OF  THIS
 SUBDIVISION,  THE TERM "CAPPED REAL PROPERTY SCHOOL TAX RATE" SHALL MEAN
 THE REAL PROPERTY SCHOOL TAX RATE ESTABLISHED ON ANY TAXABLE STATUS DATE
 IN CALENDAR YEAR TWO THOUSAND EIGHTEEN.
   (B) RESIDENTIAL REAL PROPERTY  OWNED  AND  OCCUPIED  BY  ONE  OR  MORE
 PERSONS,  EACH  OF  WHOM IS SIXTY-FIVE YEARS OF AGE OR OVER ON OR BEFORE
 THE TAXABLE STATUS DATE IN TAX YEAR TWO  THOUSAND TWENTY AND MEETS  EACH
 OF  THE  REQUIREMENTS FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET
 FORTH IN SECTION FOUR HUNDRED TWENTY-FIVE OF THIS ARTICLE,  OR  RESIDEN-
 TIAL  REAL  PROPERTY OWNED AND OCCUPIED BY HUSBAND AND WIFE, ONE OF WHOM
 IS SIXTY-FIVE YEARS OF AGE OR OVER AND MEETS EACH  OF  THE  REQUIREMENTS
 FOR THE ENHANCED EXEMPTION FOR SENIOR CITIZENS SET FORTH IN SECTION FOUR
 HUNDRED  TWENTY-FIVE  OF  THIS ARTICLE, SHALL BE ELIGIBLE FOR THE CAPPED
 REAL PROPERTY SCHOOL TAX RATE SET FORTH IN THIS  SECTION,  PROVIDED  THE
 SCHOOL  DISTRICT,  AFTER  PUBLIC  HEARING, ADOPTS A RESOLUTION PROVIDING
 THEREFOR.  FOR PURPOSES OF THIS SUBDIVISION,  THE  TERM    "CAPPED  REAL
 PROPERTY  SCHOOL  TAX RATE" SHALL MEAN THE REAL PROPERTY SCHOOL TAX RATE
 ESTABLISHED ON THE TAXABLE STATUS DATE SUBSEQUENT TO THE TAXABLE  STATUS
 DATE ON WHICH AN ELIGIBLE PERSON ATTAINS THE AGE OF SIXTY-FIVE YEARS.
   2.  ANY  PERSON  ELIGIBLE FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE
 SHALL APPLY ANNUALLY FOR SUCH CAPPED RATE.  SUCH  APPLICATION  SHALL  BE
 MADE  IN  A  MANNER  AND  FORM   DETERMINED BY THE STATE BOARD AND SHALL
 REQUIRE PROOF OF THE APPLICANT'S AGE. SUCH APPLICATION  SHALL  BE  FILED
 WITH  THE  LOCAL ASSESSOR ON OR BEFORE THE TAXABLE STATUS DATE FOR  SUCH
 DISTRICT.
   3. BEGINNING IN THE SECOND YEAR OF  QUALIFYING  FOR  THE  CAPPED  REAL
 PROPERTY SCHOOL TAX RATE ESTABLISHED IN SUBDIVISION ONE OF THIS SECTION,
 THE  RATE  OF  TAX  OWED BY A PERSON OWNING REAL PROPERTY IN YEAR ONE OF
 QUALIFYING FOR THE CAPPED REAL PROPERTY SCHOOL TAX RATE WOULD BE REDUCED
 BY THE FOLLOWING SCHEDULE:
   YEAR TWO: TEN PERCENT
   YEAR THREE: TWENTY PERCENT
   YEAR FOUR: THIRTY PERCENT
   YEAR FIVE: FORTY PERCENT
   YEAR SIX: FIFTY PERCENT
   YEAR SEVEN: SIXTY PERCENT
   YEAR EIGHT: SEVENTY PERCENT
   YEAR NINE: EIGHTY PERCENT
   YEAR TEN: NINETY PERCENT
   YEAR ELEVEN AND THEREAFTER: ONE HUNDRED PERCENT
   4. EVERY SCHOOL DISTRICT SHALL NOTIFY, OR CAUSE TO BE  NOTIFIED,  EACH
 PERSON  OWNING  RESIDENTIAL  REAL PROPERTY IN THE SCHOOL DISTRICT OF THE
 PROVISIONS OF THIS SECTION. THE PROVISIONS  OF THIS SUBDIVISION  MAY  BE
 MET  BY  A  NOTICE  SENT TO SUCH PERSONS IN SUBSTANTIALLY THE  FOLLOWING
 FORM: "RESIDENTIAL REAL PROPERTY OWNED BY PERSONS  SIXTY-FIVE  YEARS  OF
 AGE OR OLDER MAY BE ELIGIBLE FOR A CAPPED REAL PROPERTY SCHOOL TAX RATE.
 TO RECEIVE SUCH CAPPED RATE, ELIGIBLE OWNERS OF QUALIFYING PROPERTY MUST
 FILE  AN APPLICATION WITH THEIR LOCAL ASSESSOR ON OR BEFORE THE APPLICA-
 BLE TAXABLE STATUS DATE. FOR FURTHER INFORMATION,  PLEASE  CONTACT  YOUR
 LOCAL ASSESSOR."
   5.  A SCHOOL DISTRICT WHICH PROVIDES A CAPPED REAL PROPERTY SCHOOL TAX
 RATE FOR PERSONS SIXTY-FIVE YEARS  OF  AGE  OR  OVER  PURSUANT  TO  THIS

 S. 7509--B                         45
 
 SECTION  SHALL BE ELIGIBLE FOR REIMBURSEMENT BY THE DEPARTMENT OF EDUCA-
 TION, AS APPROVED BY THE COMMISSIONER OF EDUCATION, IN CONSULTATION WITH
 THE COMMISSIONER OF TAXATION AND FINANCE, FOR ONE HUNDRED PERCENT OF THE
 DIRECT COST TO SUCH SCHOOL DISTRICT RESULTING FROM THE IMPLEMENTATION OF
 THIS  SECTION.  SUCH  DIRECT  COST SHALL BE CALCULATED PURSUANT TO REGU-
 LATIONS OF THE COMMISSIONER  OF  EDUCATION,  IN  CONSULTATION  WITH  THE
 COMMISSIONER  OF  TAXATION  AND  FINANCE. A CLAIM FOR SUCH REIMBURSEMENT
 SHALL BE MADE BY SUCH SCHOOL DISTRICT IN A MANNER AND FORM PRESCRIBED BY
 THE COMMISSIONER OF EDUCATION.
   § 2. Paragraph 3 of subsection (n-1) of section 606 of the tax law, as
 added by section 1 of subpart B of part C of chapter 20 of the  laws  of
 2015, is amended as follows:
   (3)  Amount  of  credit. (a) For the two thousand sixteen taxable year
 (i) for a taxpayer residing in real property located within  the  metro-
 politan  commuter transportation district (MCTD) and outside the city of
 New York, the amount of the credit shall be $130; (ii)  for  a  taxpayer
 residing  in  real  property located outside the MCTD, the amount of the
 credit shall be $185.
   (b) For the two thousand seventeen,  two  thousand  eighteen  and  two
 thousand  nineteen taxable years (i) For a taxpayer who owned and prima-
 rily resided in real property receiving the basic  STAR  exemption,  the
 amount  of  the  credit shall equal the STAR tax savings associated with
 such basic STAR exemption, multiplied by the following percentage:
   (A) for the two thousand seventeen taxable year:
 Qualified Gross Income                  Percentage
 Not over $75,000                        28%
 Over $75,000 but not over $150,000      20.5%
 Over $150,000 but not over $200,000     13%
 Over $200,000 but not over $275,000     5.5%
 Over $275,000                           No credit
   (B) for the two thousand eighteen taxable year:
 Qualified Gross Income                  Percentage
 Not over $75,000                        60%
 Over $75,000 but not over $150,000      42.5%
 Over $150,000 but not over $200,000     25%
 Over $200,000 but not over $275,000     7.5%
 Over $275,000                           No credit
   (C) for the two thousand nineteen taxable year AND THEREAFTER:
 Qualified Gross Income                  Percentage
 Not over $75,000                        [85%] 100%
 Over $75,000 but not over $150,000      [60%] 75%
 Over $150,000 but not over $200,000     [35%] 43.75%
 Over $200,000 but not over $275,000     [10%] 12.5%
 Over $275,000                           No credit
   (c) For a taxpayer who owned and primarily resided  in  real  property
 receiving  the  enhanced  STAR exemption, the amount of the credit shall
 equal the STAR tax savings associated with such enhanced STAR exemption,
 multiplied by the following percentage:
 Taxable Year                            Percentage
 two thousand seventeen                  12%
 two thousand eighteen                   26%
 two thousand nineteen AND THEREAFTER    [34%] 42.5%
   (d) In no case may  the  amount  of  the  credit  allowed  under  this
 subsection  exceed  the  school  district  taxes due with respect to the
 residence for that school year.

 S. 7509--B                         46
 
   § 3. This act shall take effect on the first of January next  succeed-
 ing  the  date  on  which  it shall have become a law and shall apply to
 assessment rolls prepared on the basis of taxable status dates occurring
 on or after such date.
 
                                  PART OO
 
   Section  1.  Section  13  of part A of chapter 97 of the laws of 2011,
 amending the general municipal law and the  education  law  relating  to
 establishing  limits  upon  school  district  and  local  government tax
 levies, as amended by section 18 of part A of chapter 20 of the laws  of
 2015, is amended to read as follows:
   §  13. This act shall take effect immediately; provided, however, that
 sections two through eleven of this act shall take effect July  1,  2011
 and shall first apply to school district budgets and the budget adoption
 process  for  the  2012-13  school  year; and shall continue to apply to
 school district budgets and the budget adoption process for  any  school
 year  beginning in any calendar year during which this act is in effect;
 provided further, that if section 26 of part A of chapter 58 of the laws
 of 2011 shall not have taken effect on or before such date then  section
 ten  of  this  act  shall  take  effect on the same date and in the same
 manner as such chapter of the  laws  of  2011,  takes  effect;  provided
 further,  that  section one of this act shall first apply to the levy of
 taxes by local governments for the fiscal year that begins in  2012  and
 shall  continue  to  apply to the levy of taxes by local governments for
 any fiscal year beginning in any calendar year during which this act  is
 in  effect[; provided, further, that this act shall remain in full force
 and effect at a minimum until and including  June  15,  2020  and  shall
 remain in effect thereafter only so long as the public emergency requir-
 ing  the  regulation  and control of residential rents and evictions and
 all such laws providing for such  regulation  and  control  continue  as
 provided  in  subdivision  3  of  section  1 of the local emergency rent
 control act, sections 26-501, 26-502 and 26-520  of  the  administrative
 code  of  the city of New York, section 17 of chapter 576 of the laws of
 1974 and subdivision 2 of section 1 of chapter 274 of the laws  of  1946
 constituting  the  emergency housing rent control law, and section 10 of
 chapter 555 of the laws of 1982, amending the general business  law  and
 the  administrative code of the city of New York relating to conversions
 of residential property  to cooperative or condominium ownership in  the
 city of New York as such laws are continued by chapter 93 of the laws of
 2011 and as such sections are amended from time to time].
   § 2. This act shall take effect immediately.
 
                                  PART PP
 
   Section  1. Paragraph (b) of subdivision 1 of section 186-a of the tax
 law, as amended by section 4 of part Y of chapter  63  of  the  laws  of
 2000, is amended to read as follows:
   (b)  a tax equal to (1) two and five-tenths percent on and after Janu-
 ary first, two thousand through December thirty-first, two thousand, two
 and forty-five one hundredths percent from January first,  two  thousand
 one through December thirty-first, two thousand one, two and four-tenths
 percent  from  January  first, two thousand two through December thirty-
 first, two thousand two, two and twenty-five one hundredths percent from
 January first, two thousand three  through  December  thirty-first,  two
 thousand  three, two and one hundred twenty-five one thousandths percent

 S. 7509--B                         47
 
 from January first, two thousand four through December thirty-first, two
 thousand four and two percent [commencing] FROM January first, two thou-
 sand five, THROUGH DECEMBER THIRTY-FIRST TWO THOUSAND EIGHTEEN, ONE  AND
 FIVE-TENTHS  PERCENT  FROM  JANUARY FIRST, TWO THOUSAND NINETEEN THROUGH
 DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN, ONE PERCENT  FROM  JANUARY
 FIRST,  TWO  THOUSAND TWENTY THROUGH DECEMBER THIRTY-FIRST, TWO THOUSAND
 TWENTY, FIVE-TENTHS OF A PERCENT FROM JANUARY FIRST, TWO THOUSAND  TWEN-
 TY-ONE  TO  DECEMBER  THIRTY-FIRST,  TWO  THOUSAND  TWENTY-ONE, AND ZERO
 PERCENT COMMENCING JANUARY FIRST, TWO THOUSAND TWENTY-TWO and thereafter
 of that portion of its gross income  derived  from  the  transportation,
 transmission or distribution of gas or electricity by means of conduits,
 mains, pipes, wires, lines or the like and (2) two and one-tenth percent
 from  January  first,  two  thousand  through December thirty-first, two
 thousand, two percent from  January  first,  two  thousand  one  through
 December  thirty-first,  two  thousand  one, one and nine-tenths percent
 from January first, two thousand two through December thirty-first,  two
 thousand  two,  eighty-five  one  hundredths of one percent from January
 first, two thousand three through December  thirty-first,  two  thousand
 three,  four-tenths of one percent from January first, two thousand four
 through December  thirty-first,  two  thousand  four  and  zero  percent
 commencing  January  first,  two thousand five of all of its other gross
 income, is hereby imposed upon every utility not taxed  under  paragraph
 (a) of this subdivision doing business in this state which is subject to
 the  supervision  of  the state department of public service which has a
 gross income for the year ending December thirty-first in excess of five
 hundred dollars, except motor carriers or brokers subject to such super-
 vision under the public service law; and
   § 2. This act shall take effect immediately.
 
                                  PART QQ
 
   Section 1. Subdivisions 1 and  1-a  of  section  18-a  of  the  public
 service law, subdivision 1 as amended by section 2 of part NN of chapter
 59 of the laws of 2009 and subdivision 1-a as added by section 2 of part
 A of chapter 173 of the laws of 2013, are amended to read as follows:
   1.  All  costs  and expenses of the department and commission shall be
 paid pursuant to appropriation on the certification of the  chairman  of
 the  department  and  upon the audit and warrant of the comptroller. The
 state treasury shall be reimbursed therefore  by  payments  to  be  made
 thereto  from  all  moneys collected pursuant to this chapter. [The] FOR
 STATE FISCAL YEARS BEGINNING PRIOR TO APRIL 1, 2019, THE total  of  such
 costs  and  expenses  shall  be  borne  by  the public utility companies
 (including for the purposes of this section  municipalities  other  than
 municipalities  as  defined  in  section eighty-nine-l of this chapter),
 corporations (including the power authority of the state of  New  York),
 and  persons  subject  to the commission's regulation, to be assessed in
 the manner provided in subdivisions two, three and four of this  section
 and section two hundred seventeen of this chapter.  PROVIDED HOWEVER FOR
 THE STATE FISCAL YEAR THAT BEGINS ON APRIL FIRST, TWO THOUSAND NINETEEN,
 SUCH  ASSESSMENT  SHALL  BE  IN  AN  AMOUNT THAT IS FIFTY PERCENT OF THE
 AMOUNT CALCULATED IN SUBDIVISIONS TWO, THREE AND FOUR  OF  THIS  SECTION
 AND  SECTION TWO HUNDRED SEVENTEEN OF THIS CHAPTER. PROVIDED FURTHER FOR
 STATE FISCAL YEARS THAT BEGIN ON AND AFTER  APRIL  FIRST,  TWO  THOUSAND
 TWENTY,  THE  AMOUNT  OF SUCH ASSESSMENT CALCULATED IN SUBDIVISIONS TWO,
 THREE AND FOUR OF THIS SECTION AND SECTION TWO HUNDRED SEVENTEEN OF THIS

 S. 7509--B                         48
 
 CHAPTER SHALL BE ZERO AND ALL COSTS OF  THE  DEPARTMENT  AND  COMMISSION
 SHALL BE PAID BY THE STATE TREASURY.
   1-a.  All  costs and expenses of the department related to the depart-
 ment's responsibilities under section three-b of this chapter  shall  be
 paid  pursuant  to appropriation on the certification of the chairman of
 the department and upon the audit and warrant of  the  comptroller.  For
 the  state  fiscal  [year]  YEARS beginning on April first, two thousand
 fourteen and [each state fiscal  year  thereafter]  BEGINNING  PRIOR  TO
 APRIL  FIRST,  TWO  THOUSAND  TWENTY,  payments  are to be made from all
 moneys collected from the Long Island power authority pursuant  to  this
 section.  The total of such costs and expenses shall be assessed on such
 authority in the manner provided in subdivisions two, three and four  of
 this section.  PROVIDED HOWEVER FOR THE STATE FISCAL YEAR THAT BEGINS ON
 APRIL  FIRST,  TWO  THOUSAND  NINETEEN,  SUCH  ASSESSMENT SHALL BE IN AN
 AMOUNT THAT IS FIFTY PERCENT OF THE AMOUNT  CALCULATED  IN  SUBDIVISIONS
 TWO,  THREE AND FOUR OF THIS SECTION.  PROVIDED FURTHER FOR STATE FISCAL
 YEARS THAT BEGIN ON AND AFTER APRIL  FIRST,  TWO  THOUSAND  TWENTY,  THE
 AMOUNT OF SUCH ASSESSMENT CALCULATED IN SUBDIVISIONS TWO, THREE AND FOUR
 OF  THIS  SECTION  SHALL  BE  ZERO  AND  ALL COSTS OF THE DEPARTMENT AND
 COMMISSION SHALL BE PAID BY THE STATE TREASURY.
   § 2. This act shall take effect immediately.
 
                                  PART RR

   Section 1. Paragraph 3-a of subsection (c) of section 612 of  the  tax
 law,  as  amended  by  section  3 of part I of chapter 59 of the laws of
 2015, is amended to read as follows:
   (3-a) Pensions  and  annuities  received  by  an  individual  who  has
 attained  the  age  of  fifty-nine  and one-half, not otherwise excluded
 pursuant to paragraph three of this subsection, to the extent includible
 in gross income for federal income tax purposes, but not  in  excess  of
 [twenty]  TWENTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON
 OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, THIRTY  THOUSAND  DOLLARS
 FOR  ANY  TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY, THIRTY-FIVE THOUSAND DOLLARS FOR ANY TAXABLE YEAR  BEGINNING  ON
 OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND TWENTY-ONE, AND FORTY thousand
 dollars IN EACH SUBSEQUENT YEAR, which are periodic  payments  attribut-
 able  to  personal  services  performed  by such individual prior to his
 retirement from employment, which arise (i)  from  an  employer-employee
 relationship  or  (ii) from contributions to a retirement plan which are
 deductible for federal income tax purposes. However, the term  "pensions
 and  annuities" shall also include distributions received by an individ-
 ual who has attained the age of fifty-nine and one-half from an individ-
 ual retirement account or an individual retirement annuity,  as  defined
 in section four hundred eight of the internal revenue code, and distrib-
 utions  received by an individual who has attained the age of fifty-nine
 and one-half from self-employed individual and owner-employee retirement
 plans which qualify under section  four  hundred  one  of  the  internal
 revenue code, whether or not the payments are periodic in nature. Never-
 theless,  the  term  "pensions and annuities" shall not include any lump
 sum distribution, as defined in subparagraph (D) of  paragraph  four  of
 subsection  (e) of section four hundred two of the internal revenue code
 and taxed under section six hundred  three  of  this  article.  Where  a
 husband  and  wife  file  a  joint state personal income tax return, the
 modification provided for in this paragraph shall be computed as if they
 were filing separate state personal income tax returns. Where a  payment

 S. 7509--B                         49
 
 would otherwise come within the meaning of the term "pensions and annui-
 ties"  as  set  forth  in this paragraph, except that such individual is
 deceased, such payment shall, nevertheless, be treated as a  pension  or
 annuity  for  purposes  of this paragraph if such payment is received by
 such individual's beneficiary.
   § 2. This act shall take effect immediately.
 
                                  PART SS
 
   Section 1. Section 52 of the legislative law is amended  by  adding  a
 new subdivision 5 to read as follows:
   5.  ASSENT  OF TWO-THIRDS. FOR ANY BILL THAT ENACTS OR INCREASES A TAX
 REVENUE, THE ASSENT OF TWO-THIRDS OF THE MEMBERS ELECTED TO EACH  BRANCH
 OF THE LEGISLATURE SHALL BE REQUIRED FOR PASSAGE OF SUCH BILL.
   § 2. This act shall take effect immediately.
 
                                  PART TT
 
   Section 1. The state finance law is amended by adding a new article 17
 to read as follows:
                                ARTICLE 17
                      ANNUAL SPENDING GROWTH CAP ACT
 SECTION 244. DEFINITIONS.
         245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.
         246. PROVISIONS REGARDING DECLARATION OF EMERGENCY.
   § 244. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS, UNLESS OTHERWISE SPECIFIED:
   1.  "ANNUAL SPENDING GROWTH CAP" SHALL MEAN A PERCENTAGE DETERMINED BY
 ADDING THE INFLATION RATES FROM EACH OF THE THREE CALENDAR  YEARS  IMME-
 DIATELY PRIOR TO THE COMMENCEMENT OF A GIVEN FISCAL YEAR AND THEN DIVID-
 ING THAT SUM BY THREE.
   2. "STATE OPERATING FUNDS SPENDING" SHALL MEAN ANNUAL DISBURSEMENTS OF
 ALL GOVERNMENTAL FUND TYPES INCLUDED IN THE CASH-BASIS FINANCIAL PLAN OF
 THE  STATE,  EXCLUDING  DISBURSEMENTS  FROM  FEDERAL  FUNDS  AND CAPITAL
 PROJECT FUNDS.
   3. "INFLATION RATE" SHALL MEAN THE PERCENTAGE CHANGE  IN  THE  TWELVE-
 MONTH  AVERAGE  OF  THE  CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS AS
 PUBLISHED BY THE UNITED STATES DEPARTMENT  OF  LABOR,  BUREAU  OF  LABOR
 STATISTICS OR ANY SUCCESSOR AGENCY FOR A GIVEN CALENDAR YEAR COMPARED TO
 THE PRIOR CALENDAR YEAR.
   4.  "EXECUTIVE BUDGET" SHALL MEAN THE BUDGET SUBMITTED ANNUALLY BY THE
 GOVERNOR  PURSUANT  TO SECTION ONE OF ARTICLE VII OF THE STATE CONSTITU-
 TION.
   5.  "STATE BUDGET AS ENACTED" SHALL MEAN THE BUDGET ACTED UPON BY  THE
 LEGISLATURE  IN A GIVEN FISCAL YEAR, AS SUBJECT TO SECTION FOUR OF ARTI-
 CLE VII OF THE STATE CONSTITUTION AND SECTION SEVEN OF ARTICLE IV OF THE
 STATE CONSTITUTION.
   6. "EMERGENCY" SHALL MEAN AN EXTRAORDINARY, UNFORESEEN, OR  UNEXPECTED
 OCCURRENCE,  OR  COMBINATION OF CIRCUMSTANCES, INCLUDING BUT NOT LIMITED
 TO A NATURAL DISASTER, INVASION, TERRORIST ATTACK, OR ECONOMIC CALAMITY.
   § 245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.  1. THERE IS HERE-
 BY ESTABLISHED AN ANNUAL SPENDING GROWTH CAP.
   2. THE GOVERNOR SHALL NOT SUBMIT, AND THE LEGISLATURE  SHALL  NOT  ACT
 UPON, A BUDGET THAT CONTAINS A PERCENTAGE INCREASE OVER THE PRIOR FISCAL
 YEAR IN STATE OPERATING FUNDS SPENDING WHICH EXCEEDS THE ANNUAL SPENDING
 GROWTH CAP.

 S. 7509--B                         50
 
   3.  THE  GOVERNOR  SHALL CERTIFY IN WRITING THAT STATE OPERATING FUNDS
 SPENDING IN THE EXECUTIVE BUDGET DOES NOT  EXCEED  THE  ANNUAL  SPENDING
 GROWTH  CAP. IF FINAL INFLATION RATE DATA FOR THE PRIOR CALENDAR YEAR IS
 NOT YET AVAILABLE AT THE TIME THE GOVERNOR SUBMITS HIS OR HER  EXECUTIVE
 BUDGET,  HE  OR  SHE  SHALL  FURNISH A REASONABLE ESTIMATE OF SUCH PRIOR
 CALENDAR YEAR INFLATION RATE.
   4. THE COMPTROLLER SHALL PROVIDE, WITHIN FIVE DAYS OF  ACTION  BY  THE
 LEGISLATURE  UPON  THE  BUDGET,  A DETERMINATION AS TO WHETHER THE STATE
 OPERATING FUNDS SPENDING AS SET FORTH IN THE  STATE  BUDGET  AS  ENACTED
 EXCEEDS THE ANNUAL SPENDING GROWTH CAP.
   5. IF THE COMPTROLLER FINDS THAT STATE OPERATING FUNDS SPENDING AS SET
 FORTH  IN THE STATE BUDGET AS ENACTED EXCEEDS THE ANNUAL SPENDING GROWTH
 CAP, THE GOVERNOR SHALL TAKE CORRECTIVE ACTION TO ENSURE THAT FUNDING IS
 LIMITED TO THE AMOUNT OF THE ANNUAL SPENDING CAP.
   § 246. PROVISIONS REGARDING DECLARATION OF EMERGENCY.  1. UPON A FIND-
 ING OF AN EMERGENCY BY THE GOVERNOR, HE OR SHE MAY DECLARE AN  EMERGENCY
 BY  AN EXECUTIVE ORDER WHICH SHALL SET FORTH THE REASONS FOR SUCH DECLA-
 RATION.
   2. BASED UPON SUCH DECLARATION,  THE  GOVERNOR  MAY  SUBMIT,  AND  THE
 LEGISLATURE  MAY  AUTHORIZE,  BY  A  TWO-THIRDS  SUPERMAJORITY, A BUDGET
 CONTAINING A PERCENTAGE INCREASE OVER THE PRIOR  FISCAL  YEAR  IN  STATE
 OPERATING FUNDS SPENDING THAT EXCEEDS THE ANNUAL SPENDING GROWTH CAP.
   §  2.  Subdivision  2  of  section  92-cc of the state finance law, as
 amended by section 12-a of part I of chapter 60 of the laws of 2015,  is
 amended to read as follows:
   2. Such fund shall have a maximum balance not to exceed [five] TEN per
 centum of the aggregate amount projected to be disbursed from the gener-
 al  fund  during  the fiscal year immediately following the then-current
 fiscal year. At the request of the director of  the  budget,  the  state
 comptroller  shall  transfer  monies to the rainy day reserve fund up to
 and including an amount equivalent to seventy-five one-hundredths of one
 per centum of the aggregate amount projected to be  disbursed  from  the
 general  fund  during the then-current fiscal year, unless such transfer
 would increase the rainy day reserve fund to an amount in excess of five
 per centum of the aggregate amount projected to be  disbursed  from  the
 general  fund during the fiscal year immediately following the then-cur-
 rent fiscal year, in which event such transfer shall be limited to  such
 amount  as  will  increase  the  rainy day reserve fund to such five per
 centum limitation.
   § 3. This act shall take effect on the thirtieth day  after  it  shall
 have become a law.
 
                                  PART UU
 
   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (ccc) to read as follows:
   (CCC) PRIVATE WATER UTILITY BILL RELIEF CREDIT. (1) GENERAL. AN  INDI-
 VIDUAL  TAXPAYER WHO IS SERVICED BY A PRIVATE WATER UTILITY, SERVING THE
 TOWNS OF HEMPSTEAD AND OYSTER BAY LOCATED IN THE COUNTY OF NASSAU, SHALL
 BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE
 AMOUNT OF ANY ANNUAL INCREASE  OF  SUCH  TAXPAYER'S  ANNUAL  WATER  BILL
 DIRECTLY  ASCRIBABLE  TO  AN  INCREASE  IN  PROPERTY  TAXES PAID BY SUCH
 PRIVATE WATER UTILITY.
   (2) CERTIFICATION FOR CREDIT ALLOWANCE. THE COMMISSIONER SHALL  DETER-
 MINE  THE PROCEDURE FOR CERTIFICATION FOR THE CREDIT AUTHORIZED PURSUANT
 TO THIS SUBSECTION.

 S. 7509--B                         51
 
   § 2.   The public service commission,  in  conjunction  with  affected
 municipal  corporations located in the county of Nassau, shall conduct a
 feasibility study of the practicality of Jericho Water District, located
 in the town of Oyster Bay, supplying water to any current  customers  of
 American Water services. Such study shall examine the potential costs to
 the  Jericho  Water  District  of serving these customers, the potential
 costs to Jericho Water District of acquiring the rights to  serve  these
 customers,  the  potential new water rates as a result of such transfer,
 and any other information deemed  relevant  by  the  affected  municipal
 corporations. On or before December 31, 2018, the public service commis-
 sion  shall  submit  such  feasibility  study to the governor, temporary
 president of the senate, and speaker of the assembly.  For  purposes  of
 this  section,  "municipal  corporations" shall have the same meaning as
 such term is defined by section two of the general municipal law.
   § 3. This act shall take effect immediately; provided, however section
 one of this act shall apply to taxable years beginning on and after  the
 first  of January next succeeding the date on which it shall have become
 a law; provided, further, that this  act  shall  expire  and  be  deemed
 repealed December 31, 2021.
 
                                  PART VV
 
   Section  1.  Subparagraph  (iv)  of  paragraph (a) of subdivision 1 of
 section 210 of the tax law, as amended by section 12 of part A of  chap-
 ter 59 of the laws of 2014, is amended to read as follows:
   (iv)  (A)  for taxable years beginning before January first, two thou-
 sand sixteen, if the business income base is not more than  two  hundred
 ninety  thousand dollars the amount shall be six and one-half percent of
 the business income base; if the business income base is more  than  two
 hundred  ninety thousand dollars but not over three hundred ninety thou-
 sand dollars the amount shall be the sum of (1) eighteen thousand  eight
 hundred  fifty dollars, (2) seven and one-tenth percent of the excess of
 the business income base over two hundred ninety  thousand  dollars  but
 not  over three hundred ninety thousand dollars and (3) four and thirty-
 five hundredths percent of the excess of the business income  base  over
 three  hundred  fifty thousand dollars but not over three hundred ninety
 thousand dollars;
   (B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
 SAND NINETEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN FOUR HUNDRED
 THOUSAND DOLLARS THE AMOUNT SHALL BE FOUR PERCENT OF THE BUSINESS INCOME
 BASE;  IF  THE  BUSINESS  INCOME BASE IS MORE THAN FOUR HUNDRED THOUSAND
 DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS THE AMOUNT  SHALL  BE
 THE SUM OF (1) SIXTEEN THOUSAND DOLLARS, (2) SIX AND ONE-HALF PERCENT OF
 THE  EXCESS  OF  THE  BUSINESS  INCOME  BASE  OVER FOUR HUNDRED THOUSAND
 DOLLARS BUT NOT OVER  FIVE  HUNDRED  THOUSAND  DOLLARS  AND  (3)  TWENTY
 PERCENT  OF  THE  EXCESS  OF  THE BUSINESS INCOME BASE OVER FOUR HUNDRED
 FIFTY THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS;
   (C) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
 SAND  TWENTY,  IF THE BUSINESS INCOME BASE IS NOT MORE THAN FOUR HUNDRED
 THOUSAND DOLLARS THE AMOUNT SHALL BE TWO AND  ONE-HALF  PERCENT  OF  THE
 BUSINESS  INCOME  BASE;  IF  THE  BUSINESS INCOME BASE IS MORE THAN FOUR
 HUNDRED THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS  THE
 AMOUNT  SHALL  BE  THE SUM OF (1) TEN THOUSAND DOLLARS, (2) SIX AND ONE-
 HALF PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER FOUR HUNDRED
 THOUSAND DOLLARS BUT NOT OVER FIVE  HUNDRED  THOUSAND  DOLLARS  AND  (3)
 THIRTY-TWO  PERCENT  OF THE EXCESS OF THE BUSINESS INCOME BASE OVER FOUR

 S. 7509--B                         52
 
 HUNDRED FIFTY THOUSAND  DOLLARS  BUT  NOT  OVER  FIVE  HUNDRED  THOUSAND
 DOLLARS.
   §  2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
 added by section 1 of part Y of chapter 59  of  the  laws  of  2013,  is
 amended to read as follows:
   (39)  (A)  In  the  case  of  a  taxpayer who is a small business OR A
 TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY
 COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A
 SMALL BUSINESS, who OR WHICH has business income [and/or farm income] as
 defined in the laws of the United States, an  amount  equal  to  [three]
 FIVE  percent  of  the  net  items  of  income, gain, loss and deduction
 attributable to such business [or farm] entering into  federal  adjusted
 gross  income, but not less than zero, for taxable years beginning after
 two thousand [thirteen] EIGHTEEN, an amount equal to [three  and  three-
 quarters]  TEN  percent  of  the  net  items  of  income, gain, loss and
 deduction attributable to such business [or farm] entering into  federal
 adjusted  gross income, but not less than zero, for taxable years begin-
 ning after two thousand [fourteen] NINETEEN,  and  an  amount  equal  to
 [five]  FIFTEEN  percent  of  the  net  items  of income, gain, loss and
 deduction attributable to such business [or farm] entering into  federal
 adjusted gross income, but not less than zero[, for taxable years begin-
 ning after two thousand fifteen].
   (B) IN THE CASE OF A TAXPAYER WHO IS A FARM BUSINESS OR A TAXPAYER WHO
 IS  A  MEMBER,  PARTNER,  OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY,
 PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY,  THAT  IS  A  FARM
 BUSINESS,  WHO  OR  WHICH  HAS FARM INCOME AS DEFINED BY THE LAWS OF THE
 UNITED STATES, AN AMOUNT EQUAL TO TWENTY PERCENT OF  THE  NET  ITEMS  OF
 INCOME,  GAIN,  LOSS  AND  DEDUCTION ATTRIBUTABLE TO SUCH FARM. THE TERM
 FARM BUSINESS SHALL MEAN A FARM BUSINESS THAT HAS  NET  FARM  INCOME  OF
 LESS THAN FIVE HUNDRED THOUSAND DOLLARS.
   (C)  (I)  For  the purposes of this paragraph, the term small business
 shall mean: (I) a sole proprietor [or a farm business who employs one or
 more persons during the taxable year and] who has  net  business  income
 [or net farm income] of less than [two hundred fifty] FIVE HUNDRED thou-
 sand  dollars;  OR  (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW
 YORK S CORPORATION THAT DURING THE TAXABLE YEAR HAS NEW YORK GROSS BUSI-
 NESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS  THAT  IS  GREATER  THAN
 ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS OR NET FARM
 INCOME  ATTRIBUTABLE  TO  A  FARM BUSINESS THAT IS GREATER THAN ZERO BUT
 LESS THAN FIVE HUNDRED THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARA-
 GRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN:  (I)  IN  THE
 CASE  OF  A  LIMITED LIABILITY COMPANY OR A PARTNERSHIP, NEW YORK SOURCE
 GROSS INCOME AS DEFINED  IN  SUBPARAGRAPH  (B)  OF  PARAGRAPH  THREE  OF
 SUBSECTION  (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE, AND,
 (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED
 IN THE NUMERATOR OF THE APPORTIONMENT FACTOR  DETERMINED  UNDER  SECTION
 TWO HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXABLE YEAR.
   (D)  TO  QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL
 BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK  S
 CORPORATION,  THE  TAXPAYER'S  INCOME  ATTRIBUTABLE  TO THE NET BUSINESS
 INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA-
 NIES, PARTNERSHIPS OR NEW YORK S CORPORATIONS MUST  BE  LESS  THAN  FIVE
 HUNDRED THOUSAND DOLLARS.
   §  3. Paragraph 35 of subdivision (c) of section 11-1712 of the admin-
 istrative code of the city of New York, as added by section 2 of part  Y
 of chapter 59 of the laws of 2013, is amended to read as follows:

 S. 7509--B                         53
 
   (35)  (A)  In  the  case  of  a  taxpayer who is a small business OR A
 TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY
 COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A
 SMALL BUSINESS, who OR WHICH has business income [and/or farm income] as
 defined  in  the  laws  of the United States, an amount equal to [three]
 FIFTEEN percent of the net items of income,  gain,  loss  and  deduction
 attributable  to  such business [or farm] entering into federal adjusted
 gross income, but not less than zero[, for taxable years beginning after
 two thousand thirteen, an  amount  equal  to  three  and  three-quarters
 percent  of  the net items of income, gain, loss and deduction attribut-
 able to such business or  farm  entering  into  federal  adjusted  gross
 income,  but  not  less than zero, for taxable years beginning after two
 thousand fourteen, and an amount equal to five percent of the net  items
 of  income,  gain,  loss  and deduction attributable to such business or
 farm entering into federal adjusted gross  income,  but  not  less  than
 zero, for taxable years beginning after two thousand fifteen].
   (B) IN THE CASE OF A TAXPAYER WHO IS A FARM BUSINESS OR A TAXPAYER WHO
 IS  A  MEMBER,  PARTNER,  OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY,
 PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY,  THAT  IS  A  FARM
 BUSINESS,  WHO  OR  WHICH  HAS FARM INCOME AS DEFINED BY THE LAWS OF THE
 UNITED STATES, AN AMOUNT EQUAL TO TWENTY PERCENT OF  THE  NET  ITEMS  OF
 INCOME,  GAIN,  LOSS  AND  DEDUCTION ATTRIBUTABLE TO SUCH FARM. THE TERM
 FARM BUSINESS SHALL MEAN A FARM BUSINESS THAT HAS  NET  FARM  INCOME  OF
 LESS THAN FIVE HUNDRED THOUSAND DOLLARS.
   (C)  (I)  For  the purposes of this paragraph, the term small business
 shall mean: (I) a sole proprietor [or a farm business who employs one or
 more persons during the taxable year and] who has  net  business  income
 [or net farm income] of less than [two hundred fifty] FIVE HUNDRED thou-
 sand  dollars;  OR  (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW
 YORK S CORPORATION THAT DURING THE TAXABLE YEAR HAS NEW YORK GROSS BUSI-
 NESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS  THAT  IS  GREATER  THAN
 ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS OR NET FARM
 INCOME  ATTRIBUTABLE  TO  A  FARM BUSINESS THAT IS GREATER THAN ZERO BUT
 LESS THAN FIVE HUNDRED THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARA-
 GRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN:  (I)  IN  THE
 CASE  OF  A  LIMITED LIABILITY COMPANY OR A PARTNERSHIP, NEW YORK SOURCE
 GROSS INCOME AS DEFINED  IN  SUBPARAGRAPH  (B)  OF  PARAGRAPH  THREE  OF
 SUBSECTION  (C)  OF SECTION SIX HUNDRED FIFTY-EIGHT OF THE TAX LAW, AND,
 (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED
 IN THE NUMERATOR OF THE APPORTIONMENT FACTOR  DETERMINED  UNDER  SECTION
 TWO HUNDRED TEN-A OF THE TAX LAW FOR THE TAXABLE YEAR.
   (D)  TO  QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL
 BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK  S
 CORPORATION,  THE  TAXPAYER'S  INCOME  ATTRIBUTABLE  TO THE NET BUSINESS
 INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA-
 NIES, PARTNERSHIPS OR NEW YORK S CORPORATIONS MUST  BE  LESS  THAN  FIVE
 HUNDRED THOUSAND DOLLARS.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2019.
 
                                  PART WW
 
   Section  1. Subdivision 3 of section 425 of the real property tax law,
 as added by section 1 of part B of chapter 389  of  the  laws  of  1997,
 paragraph  (a)  as amended by chapter 264 of the laws of 2000, paragraph
 (b-1) as added by section 1 of part FF of chapter  57  of  the  laws  of

 S. 7509--B                         54
 
 2010, paragraph (d) as amended by chapter 564 of the laws of 2015, para-
 graph  (e)  as added by section 2 of part W of chapter 57 of the laws of
 2008, and paragraph (f) as added by section 1 of part B of chapter 59 of
 the laws of 2012, is amended to read as follows:
   3.   Eligibility  requirements.  (a)  Property  use.  To  qualify  for
 exemption pursuant to this section, the property must be a one,  two  or
 three  family  residence, a farm dwelling, SMALL BUSINESS or residential
 property held in condominium or cooperative form of  ownership.  If  the
 property is not an eligible type of property, but a portion of the prop-
 erty is partially used by the owner as a primary residence, that portion
 which  is  so  used  shall be entitled to the exemption provided by this
 section; provided that in  no  event  shall  the  exemption  exceed  the
 assessed value attributable to that portion.
   (b)  Primary  residence.  The property must serve as the primary resi-
 dence of one or more of the owners  thereof,  UNLESS  SUCH  PROPERTY  IS
 OWNED  BY  A SMALL BUSINESS AS DEFINED IN PARAGRAPH (G) OF THIS SUBDIVI-
 SION.
   (b-1) Income. For final assessment rolls to be used for  the  levy  of
 taxes  for  the  two thousand eleven-two thousand twelve school year and
 thereafter, the parcel's affiliated income may be no greater  than  five
 hundred  thousand dollars, as determined by the commissioner of taxation
 and finance pursuant to section one hundred  seventy-one-u  of  the  tax
 law,  in order to be eligible for the basic exemption authorized by this
 section. As used herein, the term "affiliated  income"  shall  mean  the
 combined income of all of the owners of the parcel who resided primarily
 thereon on the applicable taxable status date, and of any owners' spous-
 es  residing primarily thereon. For exemptions on final assessment rolls
 to be used for the levy of taxes for the two thousand  eleven-two  thou-
 sand  twelve  school  year,  affiliated income shall be determined based
 upon the parties' incomes for the income tax year ending in two thousand
 nine. In each subsequent school year, the  applicable  income  tax  year
 shall  be  advanced  by one year. The term "income" as used herein shall
 have the same meaning as in subdivision four of this section.
   (c) Trusts. If legal title to the property is  held  by  one  or  more
 trustees,  the  beneficial  owner  or  owners shall be deemed to own the
 property for purposes of this subdivision.
   (d) Farm dwellings not owned by the resident. (i) If  legal  title  to
 the farm dwelling is held by an S-corporation or by a C-corporation, the
 exemption  shall  be granted if the property serves as the primary resi-
 dence of a shareholder of such corporation.
   (ii) If the legal title to the farm dwelling is held by a partnership,
 the exemption shall be granted if the property  serves  as  the  primary
 residence of one or more of the partners.
   (iii)  If  the  legal  title to the farm dwelling is held by a limited
 liability company, the exemption shall be granted if the property serves
 as the primary residence of one or more of the owners.
   (iv) Any information deemed necessary to establish shareholder,  part-
 ner  or owner status for eligibility purposes shall be considered confi-
 dential and exempt from the freedom of information law.
   (e) Dwellings owned by limited partnerships. (i) If legal title  to  a
 dwelling is held by a limited partnership, the exemption shall be grant-
 ed if the property serves as the primary residence of one or more of the
 partners, provided that the limited partnership which holds title to the
 property  does  not  engage in any commercial activity, that the limited
 partnership was lawfully created to hold title solely for  estate  plan-
 ning and asset protection purposes, and that the partner or partners who

 S. 7509--B                         55
 
 primarily  reside  thereon personally pay all of the real property taxes
 and other costs associated with the property's ownership.
   (ii)  Any information deemed necessary to establish partner status for
 eligibility purposes shall be considered confidential  and  exempt  from
 the freedom of information law.
   (f)  Compliance with state tax obligations. The property's eligibility
 for the STAR exemption must not be suspended  pursuant  to  section  one
 hundred  seventy-one-y  of  the  tax  law  due to the past-due state tax
 liabilities of one or more of its owners. Notwithstanding any  provision
 of  law  to  the  contrary,  where  a  property's eligibility for a STAR
 exemption has been suspended pursuant to  such  section,  the  following
 provisions shall be applicable:
   (i)  The  property  shall  be  ineligible for a basic or enhanced STAR
 exemption effective with the next school year commencing after the issu-
 ance of notice by the department of the suspension  of  its  eligibility
 for the STAR exemption, even if the notice was issued after the applica-
 ble  taxable status date. If a STAR exemption has been granted to such a
 property on a tentative or final assessment roll, the assessor or  other
 person  having custody of that roll is hereby authorized and directed to
 immediately remove that STAR exemption from the roll.
   (ii) Any challenge to the factual or legal basis behind the suspension
 of a property's eligibility for a STAR exemption pursuant to section one
 hundred seventy-one-y of the tax law must be presented to the department
 in the manner prescribed by such section.  Neither  an  assessor  nor  a
 board  of  assessment  review has the authority to consider such a chal-
 lenge.
   (iii) The property shall remain  ineligible  for  the  STAR  exemption
 until  the  department  notifies the assessor that the suspension of its
 eligibility has been lifted. Once the assessor has been so notified, the
 exemption may be resumed on a prospective basis only, provided that  the
 eligibility requirements of this section are otherwise satisfied.
   (iv) In the case of a cooperative apartment or mobile home receiving a
 STAR  exemption  pursuant  to paragraph (k) or (l) of subdivision two of
 this section, a suspension of a STAR exemption due to a taxpayer's past-
 due state tax liabilities shall only apply to the STAR exemption on  the
 cooperative  apartment  or  mobile home owned, or deemed to be owned, by
 that taxpayer.
   (G) SMALL BUSINESSES. (I) FOR THE PURPOSES OF  THIS  SUBDIVISION,  THE
 TERM  "SMALL BUSINESS" SHALL MEAN A SOLE PROPRIETOR, A LIMITED LIABILITY
 COMPANY, PARTNERSHIP, OR NEW YORK S-CORPORATION, THAT DURING THE TAXABLE
 YEAR EMPLOYS TWENTY PERSONS OR LESS AND  HAS  A  GROSS  BUSINESS  INCOME
 AND/OR  FARM  INCOME  OF  LESS THAN THREE HUNDRED FIFTY THOUSAND DOLLARS
 ATTRIBUTABLE TO THE BUSINESS OR A NEW YORK CORPORATION THAT  DURING  THE
 TAXABLE  YEAR  EMPLOYS  TWENTY PERSONS OR LESS AND HAS A BUSINESS INCOME
 BASE OF FIVE HUNDRED THOUSAND DOLLARS OR LESS.
   (II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS  BUSINESS
 INCOME  SHALL  MEAN: (A) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A
 PARTNERSHIP, NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B)
 OF PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED  FIFTY-EIGHT
 OF  THE  TAX  LAW;  AND (B) IN THE CASE OF A NEW YORK S-CORPORATION, NEW
 YORK RECEIPTS INCLUDED IN THE APPORTIONMENT DETERMINED UNDER SECTION TWO
 HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXABLE YEAR.
   (III) FOR PURPOSES OF THIS PARAGRAPH, THE TERM  BUSINESS  INCOME  BASE
 SHALL  MEAN  IN  THE  CASE OF A NEW YORK CORPORATION, BUSINESS INCOME AS
 DEFINED IN SUBDIVISION EIGHT OF SECTION TWO HUNDRED  EIGHT  OF  THE  TAX
 LAW.

 S. 7509--B                         56
 
   § 2. Clause (B) of subparagraph (vi) of paragraph (b) of subdivision 2
 of  section  425  of the real property tax law, as added by section 1 of
 part D-1 of chapter 57 of the laws  of  2007,  is  amended  to  read  as
 follows:
   (B) The base figure for the basic STAR exemption shall be thirty thou-
 sand  dollars.  IN  THE CASE OF A SMALL BUSINESS AS DEFINED IN PARAGRAPH
 (G) OF SUBDIVISION THREE OF THIS SECTION, THE BASE FIGURE FOR THE  BASIC
 STAR  EXEMPTION  SHALL  BE: (I) TEN THOUSAND DOLLARS IN THE TWO THOUSAND
 NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR; (II) TWENTY THOUSAND  DOLLARS
 IN  THE  TWO  THOUSAND  TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL YEAR; AND
 (III) THIRTY THOUSAND DOLLARS IN THE TWO THOUSAND TWENTY-ONE--TWO  THOU-
 SAND TWENTY-TWO SCHOOL YEAR AND THEREAFTER.
   §  3.  This  act  shall take effect immediately and shall apply to all
 taxable years beginning on and after January 1, 2019.
 
                                  PART XX
 
   Section 1. Section 38 of the tax law, as added by section 1 of part EE
 of chapter 59 of the laws of 2013, is renumbered section 44 and subdivi-
 sions (b) and (c) are amended to read as follows:
   (b) An eligible employer is a corporation  (including  a  New  York  S
 corporation),  a  sole  proprietorship, a limited liability company or a
 partnership. [An] FOR TAXABLE  YEARS  BEGINNING  ON  AND  AFTER  JANUARY
 FIRST,  TWO  THOUSAND  FOURTEEN  AND  BEFORE JANUARY FIRST, TWO THOUSAND
 NINETEEN, AN eligible employee is an individual who is (i)  employed  by
 an  eligible  employer  in New York state, (ii) paid at the minimum wage
 rate as defined in article nineteen of the labor law during the  taxable
 year  by  the  eligible  employer, (iii) between the ages of sixteen and
 nineteen during the period in which he or she is paid  at  such  minimum
 wage rate by the eligible employer, and (iv) a student during the period
 in  which  he  or she is paid at such minimum wage rate by the taxpayer.
 FOR TAXABLE YEARS BEGINNING ON AND AFTER  JANUARY  FIRST,  TWO  THOUSAND
 NINETEEN,  AN  ELIGIBLE EMPLOYEE IS AN INDIVIDUAL WHO IS (I) EMPLOYED BY
 AN ELIGIBLE EMPLOYER IN NEW YORK STATE, (II) PAID AT A  RATE  THAT  DOES
 NOT  EXCEED  THE MINIMUM WAGE RATE AS DEFINED IN ARTICLE NINETEEN OF THE
 LABOR LAW PLUS FIFTY CENTS DURING  THE  TAXABLE  YEAR  BY  THE  ELIGIBLE
 EMPLOYER,  (III)  BETWEEN  THE  AGES  OF SIXTEEN AND NINETEEN DURING THE
 PERIOD IN WHICH HE OR SHE IS PAID AT SUCH RATE THAT DOES NOT EXCEED SUCH
 MINIMUM WAGE RATE PLUS FIFTY CENTS BY THE ELIGIBLE EMPLOYER, AND (IV)  A
 STUDENT  DURING  THE PERIOD IN WHICH HE OR SHE IS PAID AT SUCH RATE THAT
 DOES NOT EXCEED SUCH MINIMUM WAGE RATE PLUS FIFTY CENTS BY THE TAXPAYER.
   (c) For taxable years beginning on or after January first,  two  thou-
 sand fourteen and before January first, two thousand fifteen, the amount
 of  the  credit allowed under this section shall be equal to the product
 of the total number of hours worked during the taxable year by  eligible
 employees  for  which they were paid at the minimum wage rate as defined
 in article nineteen of the labor law  and  [seventy  five]  SEVENTY-FIVE
 cents.  For taxable years beginning on or after January first, two thou-
 sand fifteen and before January first, two thousand sixteen, the  amount
 of  the  credit allowed under this section shall be equal to the product
 of the total number of hours during the taxable year worked by  eligible
 employees  for  which  they  were paid at such minimum wage rate and one
 dollar and thirty-one cents. For taxable years  beginning  on  or  after
 January  first, two thousand sixteen and before January first, two thou-
 sand [nineteen] EIGHTEEN, the amount of the credit  allowed  under  this
 section  shall  be  equal  to  the  product of the total number of hours

 S. 7509--B                         57
 
 during the taxable year worked by eligible employees for which they were
 paid at such minimum wage rate and one dollar and thirty-five cents. FOR
 TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN
 AND  BEFORE  JANUARY  FIRST,  TWO THOUSAND TWENTY-TWO, THE AMOUNT OF THE
 CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE PRODUCT  OF  THE
 TOTAL NUMBER OF HOURS DURING THE TAXABLE YEAR WORKED BY ELIGIBLE EMPLOY-
 EES FOR WHICH THEY WERE PAID AT A RATE THAT DOES NOT EXCEED SUCH MINIMUM
 WAGE  RATE  PLUS  FIFTY  CENTS  AND  ONE  DOLLAR  AND THIRTY-FIVE CENTS.
 Provided, however, if the federal minimum wage  established  by  federal
 law  pursuant  to  29  U.S.C. section 206 or its successors is increased
 above eighty-five percent of the minimum wage in article nineteen of the
 labor law, the dollar amounts in this subdivision shall  be  reduced  to
 the difference between the minimum wage in article nineteen of the labor
 law  and  the federal minimum wage.  Such reduction would take effect on
 the date that employers are required to pay such federal minimum wage.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2019.
 
                                  PART YY
 
   Section 1. Subdivision (b) of section 38 of the tax law, as  added  by
 section  1  of  part EE of chapter 59 of the laws of 2013, is amended to
 read as follows:
   (b) An eligible employer is a corporation  (including  a  New  York  S
 corporation),  a  sole  proprietorship, a limited liability company or a
 partnership. An eligible employee is an individual who is  (i)  employed
 by an eligible employer in New York state, (ii) paid at the minimum wage
 rate  as defined in article nineteen of the labor law during the taxable
 year by the eligible employer, (iii) between the  ages  of  sixteen  and
 nineteen  during  the  period in which he or she is paid at such minimum
 wage rate by the eligible employer, [and]  (iv)  a  student  during  the
 period  in  which  he  or  she  is paid at such minimum wage rate by the
 taxpayer, AND (V) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS (III) AND
 (IV) OF THIS SUBDIVISION, AN  ELIGIBLE  EMPLOYEE  SHALL  ALSO  MEAN  ANY
 EMPLOYEE  WHO MEETS THE CRITERIA SET FORTH IN PARAGRAPHS (I) AND (II) OF
 THIS SUBDIVISION WHO IS TEMPORARILY EMPLOYED FOR A PERIOD OF NINETY DAYS
 OR LESS IN A CALENDAR YEAR; PROVIDED, HOWEVER, THAT  THE  PROVISIONS  OF
 THIS  PARAGRAPH  SHALL  BE  APPLICABLE TO TAXABLE YEARS BEGINNING ON AND
 AFTER JANUARY FIRST, TWO THOUSAND NINETEEN.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2019.
 
                                  PART ZZ
 
   Section 1. Subsection (b) of section 612 of the tax law is amended  by
 adding a new paragraph 43 to read as follows:
   (43)  ANY  INCOME,  GAIN,  LOSS  AND  DEDUCTION,  TO  THE EXTENT IT IS
 INCLUDED IN FEDERAL ADJUSTED GROSS INCOME AND IS,  COMBINED,  LESS  THAN
 ZERO,  OF  AN INDIVIDUAL OR TRUST FROM A QUALIFIED PASS-THROUGH MANUFAC-
 TURER, AS DEFINED IN PARAGRAPH FORTY-FOUR  OF  SUBSECTION  (C)  OF  THIS
 SECTION.
   §  2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
 added by section 1 of part Y of chapter 59  of  the  laws  of  2013,  is
 amended and a new paragraph 44 is added to read as follows:
   (39)  In  the case of a taxpayer who is a small business who has busi-
 ness income and/or farm income as defined in  the  laws  of  the  United

 S. 7509--B                         58
 
 States,  an  amount  equal  to three percent of the net items of income,
 gain, loss and deduction attributable to such business or farm  entering
 into  federal adjusted gross income, but not less than zero, for taxable
 years  beginning  after  two thousand thirteen, an amount equal to three
 and three-quarters percent of the net items of income,  gain,  loss  and
 deduction  attributable  to  such business or farm entering into federal
 adjusted gross income, but not less than zero, for taxable years  begin-
 ning after two thousand fourteen, and an amount equal to five percent of
 the  net  items of income, gain, loss and deduction attributable to such
 business or farm entering into federal adjusted gross  income,  but  not
 less  than zero, for taxable years beginning after two thousand fifteen.
 For the purposes of this paragraph, the term small business shall mean a
 sole proprietor or a farm business  who  employs  one  or  more  persons
 during  the  taxable  year  and  who has net business income or net farm
 income of less than two hundred fifty thousand dollars. FOR THE PURPOSES
 OF THIS PARAGRAPH, THE TERM SMALL BUSINESS SHALL  EXCLUDE  ANY  BUSINESS
 THAT  IS  A QUALIFIED PASS-THROUGH MANUFACTURER, AS DEFINED IN PARAGRAPH
 FORTY-FOUR OF THIS SUBSECTION FOR THE CURRENT TAX YEAR.
   (44) (A) ANY INCOME, GAIN, LOSS AND DEDUCTION, TO THE EXTENT  INCLUDED
 FEDERAL ADJUSTED GROSS INCOME AND IS, COMBINED, GREATER THAN ZERO, OF AN
 INDIVIDUAL  OR  TRUST FROM A QUALIFIED PASS-THROUGH MANUFACTURER. INCOME
 FROM A QUALIFIED PASS-THROUGH MANUFACTURER SHALL NOT INCLUDE  AN  AMOUNT
 REPRESENTING  REASONABLE  COMPENSATION FOR AN INDIVIDUAL CONTROLLING TEN
 PERCENT OR MORE OF THE QUALIFIED BUSINESS OR ENTITY.
   (B) THE QUALIFIED PASS-THROUGH MANUFACTURER MAY BE ORGANIZED AS A SOLE
 PROPRIETORSHIP, A PARTNERSHIP, A LIMITED LIABILITY COMPANY  ELECTING  TO
 BE TREATED AS A PARTNERSHIP OR SOLE PROPRIETORSHIP, OR AN S CORPORATION.
   (C)  FOR  THE  PURPOSES  OF  THIS SUBSECTION, THE TERM QUALIFIED PASS-
 THROUGH MANUFACTURER SHALL MEAN A BUSINESS THAT IS A QUALIFIED NEW  YORK
 MANUFACTURER, AS DEFINED BY SUBPARAGRAPH (VI) OF PARAGRAPH (A) OF SUBDI-
 VISION  ONE  OF SECTION TWO HUNDRED TEN OF THIS CHAPTER, EXCEPT THAT THE
 TERM "GROSS RECEIPTS" SHALL BE REPLACED BY "BUSINESS RECEIPTS" IN DETER-
 MINING WHETHER THE BUSINESS IS "PRINCIPALLY ENGAGED" IN MANUFACTURING. A
 QUALIFIED PASS-THROUGH MANUFACTURER SHALL NOT INCLUDE A BUSINESS THAT IS
 CURRENTLY PARTICIPATING IN THE START-UP NY PROGRAM.
   § 3. Paragraph 2 of subsection (a) of section 606 of the  tax  law  is
 amended by adding a new subparagraph (B-1) to read as follows:
   (B-1) PROPERTY PLACED IN SERVICE DURING THE TAX YEAR THAT IS OTHERWISE
 ELIGIBLE  FOR THE INVESTMENT TAX CREDIT DESCRIBED IN SUBPARAGRAPH (A) OF
 THIS PARAGRAPH, WILL NOT BE ELIGIBLE FOR THE INVESTMENT  TAX  CREDIT  IF
 THE  USE OF THE PROPERTY IS BY A QUALIFIED PASS-THROUGH MANUFACTURER, AS
 DEFINED IN PARAGRAPH FORTY-FOUR OF SUBSECTION (C) OF SECTION SIX HUNDRED
 TWELVE OF THIS ARTICLE FOR THE CURRENT TAX YEAR.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2019.
 
                                 PART AAA

   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 431 to read as follows:
   §  431.  PUBLIC  UTILITY  SECURITY CAMERA OR DEVICE; EXEMPTION. 1. FOR
 PURPOSES OF THIS SECTION, THE TERM "PUBLIC UTILITY" SHALL MEAN A  PUBLIC
 SERVICE  CORPORATION,  OTHER  ELECTRIC  SERVICE  PROVIDER, FIBER OPTICS,
 TELEVISION CABLE, OR ANY OTHER TELECOMMUNICATION COMPANY SUBJECT TO  THE
 JURISDICTION OF THE DEPARTMENT OF PUBLIC SERVICE.

 S. 7509--B                         59
 
   2. ANY CAMERA OR INTERRELATED DEVICES OR APPURTENANCES INSTALLED ON OR
 OTHERWISE  UTILIZING PROPERTY THAT A PUBLIC UTILITY ASSESSED AN AD VALO-
 REM TAX, OR THAT SUCH UTILITY CONTRIBUTES TO A PAYMENT IN LIEU OF  TAXES
 AGREEMENT,  WHETHER OR NOT SUCH CAMERA, INTERRELATED DEVICES OR APPURTE-
 NANCES  ARE  OWNED BY THE PUBLIC UTILITY, AND INSTALLED FOR THE PURPOSES
 OF PROVIDING ANY POLICE FORCE OR PUBLIC SECURITY OFFICE ACCESS  TO  REAL
 TIME  OR  RECORDED  INFORMATION,  SHALL  BE EXEMPT FROM REAL PROPERTY OR
 OTHER AD VALOREM TAXES, LEVIES AND ASSESSMENTS OR PAYMENTS  IN  LIEU  OF
 TAXES CONTRIBUTIONS.
   3.  THE  OFFICE OF REAL PROPERTY TAX SERVICES IS HEREBY AUTHORIZED AND
 DIRECTED TO PROMULGATE RULES AND REGULATIONS NECESSARY FOR THE IMPLEMEN-
 TATION OF THIS SECTION.
   § 2. This act shall take effect immediately and shall apply to assess-
 ment rolls prepared on the basis of taxable status dates occurring on or
 after such date; provided, however, that the office of real property tax
 services shall promulgate rules and regulations necessary to  effectuate
 this act prior to such effective date.
 
                                 PART BBB
 
   Section  1.  Declaration  of  policy.  The people of this state have a
 vital interest in the maintenance and preservation  of  cemetery  corpo-
 rations  to  prevent  them from becoming a burden upon local governments
 and the community. The preservation of cemetery funds is  vital  to  the
 long-term  maintenance  and  preservation  of  these  burial  grounds to
 prevent abandonment and dilapidation. In order to preserve  this  order,
 and  the uniqueness of cemetery corporations, clarifications of cemetery
 sales tax collections are necessary.
   § 2. Subdivision (a) of section 1115 of the  tax  law  is  amended  by
 adding a new paragraph 7-a to read as follows:
   (7-A)  TANGIBLE  PERSONAL PROPERTY AND SERVICES SOLD BY A CEMETERY FOR
 THE EXCLUSIVE USE ON THE GROUNDS AND IN THE BUILDINGS  OF  THE  CEMETERY
 CORPORATION  INCLUDING  BUT  NOT  LIMITED  TO  THE  ADDITIONAL  SERVICES
 PROVIDED BY A CEMETERY AS DEFINED IN PARAGRAPH (B)  OF  SECTION  FIFTEEN
 HUNDRED  NINE  OF THE NOT-FOR-PROFIT CORPORATION LAW AND FOR THE MAINTE-
 NANCE AND PRESERVATION OF LOTS, PLOTS AND PARTS THEREOF.
   § 3. Subdivision (a) of section 1116 of the  tax  law  is  amended  by
 adding a new paragraph 10 to read as follows:
   (10)  A  CEMETERY  CORPORATION, AS DEFINED IN PARAGRAPH (A) OF SECTION
 FIFTEEN HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW, INCLUDING BUT
 NOT LIMITED TO THOSE CEMETERIES REGULATED BY THE RELIGIOUS  CORPORATIONS
 LAW  WHERE  IT  IS  THE PURCHASER, USER, OR CONSUMER, OR WHERE IT IS THE
 VENDOR OF SERVICES OR PROPERTY EXCLUSIVELY TO BE USED ON THE GROUNDS  OR
 BUILDINGS OF THE CORPORATION.
   §  4.  The  tax law is amended by adding a new section 1149 to read as
 follows:
   § 1149. AMNESTY PROGRAM. (A) NOTWITHSTANDING  THE  PROVISIONS  OF  ANY
 OTHER  LAW  TO  THE  CONTRARY,  THERE  IS  HEREBY ESTABLISHED AN AMNESTY
 PROGRAM AS DESCRIBED HEREIN, TO BE ADMINISTERED BY THE COMMISSIONER,  TO
 BE  EFFECTIVE FOR THE PERIOD AS PRESCRIBED BY SUCH COMMISSIONER, FOR ALL
 ELIGIBLE TAXPAYERS AS DESCRIBED  HEREIN,  OWING  ANY  TAX  OR  SURCHARGE
 IMPOSED  OR  FORMERLY IMPOSED BY SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN
 HUNDRED TEN OF THIS ARTICLE, AND ADMINISTERED BY SUCH COMMISSIONER.
   (B) SUCH AMNESTY PROGRAM SHALL APPLY TO TAX LIABILITIES FOR THE  TAXES
 SET FORTH IN SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS

 S. 7509--B                         60
 
 ARTICLE  FOR TAXABLE PERIODS ENDING OR TRANSACTIONS OR USES OCCURRING ON
 OR BEFORE DECEMBER THIRTY FIRST, TWO THOUSAND EIGHTEEN.
   (C)  FOR  PURPOSES  OF  THE  AMNESTY  PROGRAM  ESTABLISHED  UNDER THIS
 SECTION, AN ELIGIBLE TAXPAYER IS A CEMETERY CORPORATION  AS  DEFINED  BY
 PARAGRAPH  (A)  OF  SECTION  FIFTEEN  HUNDRED  TWO OF THE NOT-FOR-PROFIT
 CORPORATION LAW WHO OR WHICH HAS A TAX LIABILITY WITH REGARD TO  ONE  OR
 MORE  OF THE DESIGNATED TAXES FOR THE PERIOD OF TIME DESCRIBED IN SUBDI-
 VISION (B) OF THIS SECTION.
   (D) THE AMNESTY PROGRAM ESTABLISHED HEREIN SHALL  PROVIDE,  THAT  UPON
 APPLICATION, INCLUDING APPLICABLE RETURNS, WHICH APPLICATION AND RETURNS
 SHALL  BE IN SUCH FORM AND SUBMITTED IN SUCH MANNER AS PRESCRIBED BY THE
 COMMISSIONER, BY AN ELIGIBLE TAXPAYER, AND UPON PAYMENT IN SUCH FORM AND
 IN SUCH MANNER AS PRESCRIBED BY SUCH COMMISSIONER, WHICH  PAYMENT  SHALL
 EITHER ACCOMPANY SUCH APPLICATION OR BE MADE WITHIN THE TIME STATED ON A
 BILL  ISSUED  BY  SUCH COMMISSIONER TO SUCH TAXPAYER, OF THE AMOUNT OF A
 TAX LIABILITY UNDER ONE OR MORE OF THE DESIGNATED TAXES WITH RESPECT  TO
 WHICH  AMNESTY  IS  SOUGHT, SUCH COMMISSIONER SHALL WAIVE ANY APPLICABLE
 PENALTIES AND  INTEREST  (INCLUDING  THE  ADDITIONAL  RATE  OF  INTEREST
 PRESCRIBED  UNDER  SECTION  ELEVEN  HUNDRED FORTY-FIVE OF THIS PART). IN
 ADDITION, NO CIVIL, ADMINISTRATIVE  OR  CRIMINAL  ACTION  OR  PROCEEDING
 SHALL  BE  BROUGHT AGAINST SUCH AN ELIGIBLE TAXPAYER RELATING TO THE TAX
 LIABILITY COVERED BY SUCH WAIVER. FAILURE TO PAY ALL SUCH TAXES  BY  THE
 LATER  OF MARCH FIFTEENTH, TWO THOUSAND NINETEEN, OR THE DATE PRESCRIBED
 THEREFOR ON A BILL ISSUED BY SUCH  COMMISSIONER,  SHALL  INVALIDATE  ANY
 AMNESTY  GRANTED  PURSUANT TO THE AMNESTY PROGRAM ESTABLISHED UNDER THIS
 SECTION.
   (E) AMNESTY TAX RETURN FORMS SHALL BE IN A FORM, CONTAIN SUCH INFORMA-
 TION AND BE SUBMITTED  AS  PRESCRIBED  BY  THE  COMMISSIONER  AND  SHALL
 PROVIDE  FOR  SPECIFICATIONS  BY THE APPLICANT OF THE TAX LIABILITY WITH
 RESPECT TO WHICH AMNESTY IS SOUGHT. THE APPLICANT MUST ALSO PROVIDE SUCH
 ADDITIONAL INFORMATION AS IS REQUIRED BY  SUCH  COMMISSIONER.    AMNESTY
 SHALL  BE  GRANTED ONLY WITH RESPECT TO THE TAX LIABILITIES SPECIFIED BY
 THE TAXPAYER ON SUCH FORMS. ANY RETURN OR REPORT FILED UNDER THE AMNESTY
 PROGRAM ESTABLISHED HEREIN IS SUBJECT TO VERIFICATION AND ASSESSMENT  AS
 PROVIDED  BY  STATUTE.  IF THE APPLICANT FILES A FALSE OR FRAUDULENT TAX
 RETURN OR REPORT, OR ATTEMPTS IN ANY MANNER TO DEFEAT  OR  EVADE  A  TAX
 UNDER THE AMNESTY PROGRAM, AMNESTY SHALL BE DENIED OR RESCINDED.
   (F)  WITH  RESPECT TO ANY EXISTING INSTALLMENT PAYMENT AGREEMENT OF AN
 ELIGIBLE TAXPAYER, WHERE SUCH AGREEMENT APPLIES TO A TAX LIABILITY  WITH
 RESPECT TO WHICH AMNESTY IS SOUGHT BY SUCH TAXPAYER, NOTWITHSTANDING ANY
 TERMS  OF  SUCH AGREEMENT TO THE CONTRARY, SUCH TAXPAYER, AS A CONDITION
 OF RECEIVING AMNESTY, MUST PAY ANY SUCH LIABILITY IN FULL BY  THE  LATER
 OF THE LAST DAY OF THE PRESCRIBED AMNESTY PERIOD, OR THE DATE PRESCRIBED
 THEREFOR ON A BILL ISSUED BY THE COMMISSIONER.
   (G)  THE  COMMISSIONER  MAY  PROMULGATE  REGULATIONS,  ISSUE FORMS AND
 INSTRUCTIONS AND TAKE ANY AND ALL OTHER ACTIONS NECESSARY  TO  IMPLEMENT
 THE  PROVISIONS  OF  THE AMNESTY PROGRAM ESTABLISHED UNDER THIS SECTION.
 SUCH COMMISSIONER SHALL PUBLICIZE THE AMNESTY PROGRAM  PROVIDED  FOR  IN
 THIS  SECTION SO AS TO MAXIMIZE PUBLIC AWARENESS OF AND PARTICIPATION IN
 SUCH PROGRAM.
   § 5. On or before February 28, 2021, the commissioner of taxation  and
 finance  shall  submit  a report to the chairperson of the assembly ways
 and means committee, the ranking minority member of  the  assembly  ways
 and  means  committee,  the chairperson of the senate finance committee,
 the ranking minority member of the  senate  finance  committee  and  the
 director  of the budget regarding the amnesty program established pursu-

 S. 7509--B                         61
 
 ant to this act. The report shall contain the following  information  as
 of  the  report cutoff date:  (i) the gross revenue collected under each
 tax and the year or other applicable period  for  or  during  which  the
 liability  was  incurred; (ii) the amount of money spent on advertising,
 notification,  and  outreach  activities,  by  each  activity,   and   a
 description  of  the form and content of such activities, by each activ-
 ity; (iii) the amount paid by the department of taxation and finance for
 services and expenses  related  to  the  establishment  of  the  amnesty
 program;  and  (iv)  an  estimate  of the net revenue generated from the
 amnesty program.
   § 6. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2019.
 
                                 PART CCC
 
   Section 1. Subsection (oo) of section 606 of the tax law,  as  amended
 by  chapter  239  of the laws of 2009, paragraph 1 as amended by chapter
 472 of the laws of 2010, subparagraph (A) of paragraph 1 and  paragraphs
 4  and  5 as amended by section 1 of part F of chapter 59 of the laws of
 2013, is amended to read as follows:
   (oo) Credit for rehabilitation of historic  properties.  (1)  (A)  For
 taxable  years beginning on or after January first, two thousand ten and
 before January first, two  thousand  [twenty]  TWENTY-FIVE,  a  taxpayer
 shall  be  allowed  a  credit  as  hereinafter provided, against the tax
 imposed by this article, in an amount equal to [one hundred  percent  of
 the  amount  of  credit allowed the taxpayer with respect to a certified
 historic structure under subsection (a) (2) of section 47 of the federal
 internal revenue code] TWENTY PERCENT OF  THE  QUALIFIED  REHABILITATION
 EXPENDITURES  with  respect  to  a  certified historic structure located
 within the state. Provided, however, the credit shall  not  exceed  five
 million dollars.  For taxable years beginning on or after January first,
 two  thousand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit
 as hereinafter provided, against the tax imposed by this article, in  an
 amount  equal  to  thirty  percent  of the [amount of credit allowed the
 taxpayer with respect to a certified historic structure under subsection
 (a)(2) of section 47 of the federal  internal  revenue  code]  QUALIFIED
 REHABILITATION  EXPENDITURES with respect to a certified historic struc-
 ture located within the state; provided, however, the credit  shall  not
 exceed one hundred thousand dollars. FOR PURPOSES OF THIS SUBSECTION THE
 TERM  "QUALIFIED  REHABILITATION  EXPENDITURE" MEANS ANY AMOUNT PROPERLY
 CHARGEABLE TO CAPITAL ACCOUNT IN CONNECTION WITH THE CERTIFIED REHABILI-
 TATION OF A QUALIFIED HISTORIC STRUCTURE, AND  FOR  PROPERTY  FOR  WHICH
 DEPRECIATION WOULD BE ALLOWABLE UNDER SECTION 168 OF THE INTERNAL REVEN-
 UE  CODE AND WHICH IS (I) NONRESIDENTIAL REAL PROPERTY, (II) RESIDENTIAL
 RENTAL PROPERTY, OR (III) AN ADDITION OR IMPROVEMENT  TO  NONRESIDENTIAL
 REAL PROPERTY OR RESIDENTIAL RENTAL PROPERTY.
   (B)  If the taxpayer is a partner in a partnership or a shareholder of
 a New York S corporation, then the credit cap  imposed  in  subparagraph
 (A)  of this paragraph shall be applied at the entity level, so that the
 aggregate credit allowed to all the partners  or  shareholders  of  each
 such  entity  in the taxable year does not exceed the credit cap that is
 applicable in that taxable year.
   (2) (A) Tax credits allowed  pursuant  to  this  subsection  shall  be
 allowed in the taxable year [that the qualified rehabilitation is placed
 in  service  under  section 167 of the federal internal revenue code] IN

 S. 7509--B                         62
 
 WHICH THE FINAL CERTIFICATION STEP OF THE  CERTIFIED  REHABILITATION  IS
 COMPLETED AS PROVIDED IN SUBPARAGRAPH (C) OF THIS PARAGRAPH.
   (B)  FOR  PURPOSES  OF  THIS  SUBSECTION THE TERM "CERTIFIED REHABILI-
 TATION" MEANS ANY REHABILITATION OF A CERTIFIED HISTORIC STRUCTURE WHICH
 HAS BEEN APPROVED AND CERTIFIED AS BEING CONSISTENT WITH  THE  STANDARDS
 ESTABLISHED  BY THE COMMISSIONER OF PARKS, RECREATION AND HISTORIC PRES-
 ERVATION FOR REHABILITATION BY  THE  OFFICE  OF  PARKS,  RECREATION  AND
 HISTORIC  PRESERVATION, A LOCAL GOVERNMENT CERTIFIED PURSUANT TO SECTION
 101(C)(1) OF THE NATIONAL HISTORIC PRESERVATION ACT OR A LOCAL  LANDMARK
 COMMISSION  ESTABLISHED  PURSUANT TO SECTION NINETY-SIX-A OR ONE HUNDRED
 NINETEEN-DD OF THE GENERAL MUNICIPAL LAW.
   (C) A CERTIFIED REHABILITATION SHALL REQUIRE:
   (I) AN INITIAL CERTIFICATION THAT THE STRUCTURE MEETS  THE  DEFINITION
 OF THE TERM "CERTIFIED HISTORIC STRUCTURE";
   (II)  A  SECOND  CERTIFICATION,  TO  BE  ISSUED PRIOR TO CONSTRUCTION,
 CERTIFYING THAT THE PROPOSED  REHABILITATION  WORK  IS  CONSISTENT  WITH
 STANDARDS  ESTABLISHED  BY  THE  COMMISSIONER  OF  PARKS, RECREATION AND
 HISTORIC PRESERVATION FOR REHABILITATION; AND
   (III) A FINAL CERTIFICATION ISSUED  WHEN  CONSTRUCTION  IS  COMPLETED,
 CERTIFYING  THAT  THE  WORK WAS COMPLETED AS PROPOSED AND THAT THE COSTS
 ARE CONSISTENT WITH THE WORK COMPLETED.  SUCH FINAL CERTIFICATION  SHALL
 BE   ACCEPTABLE   AS   PROOF  THAT  THE  EXPENDITURES  RELATED  TO  SUCH
 CONSTRUCTION  QUALIFY  AS  QUALIFIED  REHABILITATION  EXPENDITURES   FOR
 PURPOSES  OF  THE CREDIT ALLOWED UNDER EITHER SUBPARAGRAPH (A) OR (B) OF
 PARAGRAPH ONE OF THIS SUBSECTION.
   (D) FOR PURPOSES OF  THIS  SUBSECTION  THE  TERM  "QUALIFIED  HISTORIC
 STRUCTURE"  MEANS A CERTIFIED HISTORIC STRUCTURE LOCATED WITHIN NEW YORK
 STATE WHICH HAS BEEN SUBSTANTIALLY REHABILITATED. A  CERTIFIED  HISTORIC
 STRUCTURE  SHALL BE CONSIDERED SUBSTANTIALLY REHABILITATED IF THE QUALI-
 FIED REHABILITATION EXPENDITURES IN RELATION  TO  SUCH  STRUCTURE  TOTAL
 FIVE THOUSAND DOLLARS OR MORE.
   (E)  FOR  PURPOSES  OF  THIS  SUBSECTION  THE TERM "CERTIFIED HISTORIC
 STRUCTURE" MEANS ANY BUILDING AND ITS STRUCTURAL COMPONENTS WHICH:
   (I) IS LISTED IN THE STATE OR NATIONAL REGISTER OF HISTORIC PLACES, OR
   (II) IS LOCATED IN A STATE OR NATIONAL  REGISTERED  HISTORIC  DISTRICT
 AND IS CERTIFIED AS BEING OF HISTORIC SIGNIFICANCE IN THE DISTRICT.
   (3)  [If the credit allowed the taxpayer pursuant to section 47 of the
 internal revenue code with respect  to  a  qualified  rehabilitation  is
 recaptured  pursuant  to  subsection  (a)  of section 50 of the internal
 revenue code, a portion of the credit allowed under this subsection must
 be added back in the same taxable year and in the same proportion as the
 federal recapture]  (A) IF, BEFORE THE END OF THE TWO-YEAR PERIOD BEGIN-
 NING ON THE DATE OF THE FINAL CERTIFICATION REFERRED TO IN  SUBPARAGRAPH
 (C)  OF  PARAGRAPH TWO OF THIS SUBSECTION, THE TAXPAYER DISPOSES OF SUCH
 TAXPAYER'S INTEREST IN A CERTIFIED HISTORIC STRUCTURE, OR SUCH CERTIFIED
 HISTORIC STRUCTURE OTHERWISE  CEASES  TO  BE  ELIGIBLE  FOR  THE  CREDIT
 ALLOWED  UNDER THIS SUBSECTION, THE TAXPAYER'S TAX IMPOSED BY THIS ARTI-
 CLE FOR THE TAXABLE YEAR IN  WHICH  SUCH  DISPOSITION  OCCURS  SHALL  BE
 INCREASED  BY  THE  RECAPTURE  PORTION  OF THE CREDIT ALLOWED UNDER THIS
 SUBSECTION FOR ALL PRIOR TAXABLE YEARS WITH RESPECT  TO  SUCH  REHABILI-
 TATION.
   (B)  FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE
 PORTION SHALL BE THE PRODUCT OF THE AMOUNT  OF  CREDIT  CLAIMED  BY  THE
 TAXPAYER  MULTIPLIED  BY  A FRACTION, THE NUMERATOR OF WHICH IS EQUAL TO
 TWENTY-FOUR LESS THE NUMBER OF MONTHS BEFORE THE DISPOSITION  OR  CESSA-
 TION OF THE STRUCTURE OCCURRED.

 S. 7509--B                         63
 
   (4)  If the amount of the credit allowed under this subsection for any
 taxable year shall exceed the taxpayer's tax for such year,  the  excess
 shall  be treated as an overpayment of tax to be credited or refunded in
 accordance with the provisions of section six hundred eighty-six of this
 article, provided, however, that no interest shall be paid thereon.
   (5)  To be eligible for the credit allowable under this subsection the
 rehabilitation project shall be in whole or in  part  located  within  a
 census  tract  which  is  identified  as  being  at or below one hundred
 percent of the state median family income as calculated as of  [January]
 APRIL  first  of each year using the most recent five year estimate from
 the American community survey published  by  the  United  States  Census
 bureau.  IF  THERE  IS A CHANGE IN THE MOST RECENT FIVE YEAR ESTIMATE, A
 CENSUS TRACT THAT QUALIFIED FOR ELIGIBILITY UNDER THIS SUBSECTION BEFORE
 INFORMATION ABOUT THE CHANGE WAS RELEASED SHALL REMAIN  ELIGIBLE  FOR  A
 CREDIT UNDER THIS SUBSECTION FOR AN ADDITIONAL EIGHTEEN MONTHS.
   (6)  NOTHING CONTAINED IN THIS SUBSECTION SHALL BE CONSTRUED TO IMPOSE
 A DUTY ON A LOCAL LANDMARK COMMISSION ESTABLISHED  PURSUANT  TO  SECTION
 NINETY-SIX-A  OR ONE HUNDRED NINETEEN-DD OF THE GENERAL MUNICIPAL LAW OR
 A LOCAL GOVERNMENT  CERTIFIED  PURSUANT  TO  SECTION  101(C)(1)  OF  THE
 NATIONAL  HISTORIC  PRESERVATION ACT TO UNDERTAKE ANY REVIEW OR APPROVAL
 OF AN APPLICATION FOR THE CERTIFICATION OF THE REHABILITATION OF HISTOR-
 IC STRUCTURES AND OF REHABILITATION EXPENDITURES PROVIDED  FOR  IN  THIS
 SUBSECTION.
   §  2. Paragraph 2 of subsection (pp) of section 606 of the tax law, as
 added by chapter 547 of the laws of 2006, subparagraphs (A) and  (B)  as
 amended  by  section  1  of part V of chapter 59 of the laws of 2013, is
 amended to read as follows:
   (2) (A) With respect to any particular residence of  a  taxpayer,  the
 credit  allowed  under paragraph one of this subsection shall not exceed
 fifty thousand dollars for taxable years beginning on or  after  January
 first,  two thousand ten and before January first, two thousand [twenty]
 TWENTY-FIVE and twenty-five thousand dollars for taxable years beginning
 on or after January first, two thousand [twenty] TWENTY-FIVE.    In  the
 case  of  a  husband and wife, the amount of the credit shall be divided
 between them equally or in such other manner as they may both elect.  If
 a  taxpayer  incurs qualified rehabilitation expenditures in relation to
 more than one residence in the same year, the  total  amount  of  credit
 allowed under paragraph one of this subsection for all such expenditures
 shall  not  exceed fifty thousand dollars for taxable years beginning on
 or after January first, two thousand ten and before January  first,  two
 thousand [twenty] TWENTY-FIVE and twenty-five thousand dollars for taxa-
 ble  years  beginning  on  or after January first, two thousand [twenty]
 TWENTY-FIVE.
   (B) For taxable years beginning on or after January first,  two  thou-
 sand ten and before January first, two thousand [twenty] TWENTY-FIVE, if
 the  amount  of  credit allowable under this subsection shall exceed the
 taxpayer's tax for such year, and the taxpayer's New York adjusted gross
 income for such year does not exceed sixty thousand dollars, the  excess
 shall  be treated as an overpayment of tax to be credited or refunded in
 accordance with the provisions of section six hundred eighty-six of this
 article, provided, however, that no interest shall be paid  thereon.  If
 the  taxpayer's  New  York  adjusted  gross income for such year exceeds
 sixty thousand dollars, the excess credit that may be  carried  over  to
 the  following year or years and may be deducted from the taxpayer's tax
 for such year or years. For taxable years beginning on or after  January
 first, two thousand [twenty] TWENTY-FIVE, if the amount of credit allow-

 S. 7509--B                         64
 
 able  under  this  subsection  shall  exceed the taxpayer's tax for such
 year, the excess may be carried over to the following year or years  and
 may be deducted from the taxpayer's tax for such year or years.
   §  3.  Subdivision  26  of  section  210-B of the tax law, as added by
 section 17 of part A of chapter 59 of the laws of 2014,  is  amended  to
 read as follows:
   26.  Credit for rehabilitation of historic properties. (a) Application
 of credit. (i) For taxable years beginning on or  after  January  first,
 two  thousand ten, and before January first, two thousand [twenty] TWEN-
 TY-FIVE, a taxpayer shall be allowed a credit as  hereinafter  provided,
 against  the  tax  imposed  by  this article, in an amount equal to [one
 hundred percent of the amount of credit allowed  the  taxpayer  for  the
 same  taxable  year with respect to a certified historic structure under
 subsection (c)(2) of section 47 of the  internal  revenue  code]  TWENTY
 PERCENT  OF  THE QUALIFIED REHABILITATION EXPENDITURES with respect to a
 certified historic structure located within the state. Provided,  howev-
 er, the credit shall not exceed five million dollars.
   (ii)  For taxable years beginning on or after January first, two thou-
 sand [twenty] TWENTY-FIVE, a taxpayer shall be allowed a credit as here-
 inafter provided, against the tax imposed by this article, in an  amount
 equal  to  thirty  percent of the [amount of credit allowed the taxpayer
 for the same taxable year with respect to a certified historic structure
 under subsection (c)(3) of section 47  of  the  internal  revenue  code]
 QUALIFIED  REHABILITATION  EXPENDITURES  with  respect  to  a  certified
 historic structure located within the state.    Provided,  however,  the
 credit shall not exceed one hundred thousand dollars.
   [(B)]  (B)  If  the taxpayer is a partner in a partnership or a share-
 holder in a New York S corporation, then  the  credit  caps  imposed  in
 [subparagraph  (A)]  PARAGRAPH (A) of this [paragraph] SUBDIVISION shall
 be applied at the entity level, so that the aggregate credit allowed  to
 all the partners or shareholders of each such entity in the taxable year
 does not exceed the credit cap that is applicable in that taxable year.
   [(b)]  (C)  Tax  credits allowed pursuant to this subdivision shall be
 allowed in the taxable year [that the qualified rehabilitation is placed
 in service under section 167 of the federal internal revenue code]    IN
 WHICH  THE  FINAL  CERTIFICATION STEP OF THE CERTIFIED REHABILITATION IS
 COMPLETED PURSUANT TO SUBPARAGRAPH (C) OF PARAGRAPH  TWO  OF  SUBSECTION
 (OO) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.
   [(c)  If the credit allowed the taxpayer pursuant to section 47 of the
 internal revenue code with respect  to  a  qualified  rehabilitation  is
 recaptured  pursuant  to  subsection  (a)  of section 50 of the internal
 revenue code, a portion of the credit allowed under this subsection must
 be added back in the same taxable year and in the same proportion as the
 federal credit] (D)(I) IF, BEFORE THE END OF THE TWO-YEAR PERIOD  BEGIN-
 NING ON THE DATE OF THE FINAL CERTIFICATION REFERRED TO IN PARAGRAPH (B)
 OF  THIS  SUBDIVISION, THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST
 IN A CERTIFIED STRUCTURE, OR SUCH CERTIFIED HISTORIC STRUCTURE OTHERWISE
 CEASES TO BE ELIGIBLE FOR THE CREDIT ALLOWED UNDER THIS SUBDIVISION, THE
 TAXPAYER'S TAX IMPOSED BY THIS ARTICLE FOR THE  TAXABLE  YEAR  IN  WHICH
 SUCH  DISPOSITION  OCCURS SHALL BE INCREASED BY THE RECAPTURE PORTION OF
 THE CREDIT ALLOWED UNDER THIS PARAGRAPH FOR ALL PRIOR TAXABLE YEARS WITH
 RESPECT TO SUCH REHABILITATION.
   (II) FOR PURPOSES OF SUBPARAGRAPH (I) OF THIS PARAGRAPH, THE RECAPTURE
 PORTION SHALL BE THE PRODUCT OF THE AMOUNT  OF  CREDIT  CLAIMED  BY  THE
 TAXPAYER  MULTIPLIED  BY  A FRACTION, THE NUMERATOR OF WHICH IS EQUAL TO

 S. 7509--B                         65

 TWENTY-FOUR LESS THE NUMBER OF MONTHS BEFORE THE DISPOSITION  OR  CESSA-
 TION OF THE STRUCTURE OCCURRED.
   [(d)]  (E)  The  credit allowed under this subdivision for any taxable
 year shall not reduce the tax due for such year to less than the  amount
 prescribed  in  paragraph  (d) of subdivision one of section two hundred
 ten of this article. However, if the amount of the credit allowed  under
 this  subdivision for any taxable year reduces the tax to such amount or
 if the taxpayer otherwise pays tax based on  the  fixed  dollar  minimum
 amount,  any  amount  of credit thus not deductible in such taxable year
 shall be treated as an overpayment of tax to be recredited  or  refunded
 in  accordance with the provisions of section one thousand eighty-six of
 this chapter. Provided, however, the provisions  of  subsection  (c)  of
 section  one  thousand  eighty-eight of this chapter notwithstanding, no
 interest shall be paid thereon.
   [(e)] (F) To be eligible for the credit allowable under this  subdivi-
 sion,  the  rehabilitation  project shall be in whole or in part located
 within a census tract which is identified  as  being  at  or  below  one
 hundred  percent  of  the state median family income as calculated as of
 January first of each year using the most recent five year estimate from
 the American community survey published  by  the  United  States  Census
 bureau.
   §  4.  Paragraphs 1, 2 and 3 of subdivision (y) of section 1511 of the
 tax law, as added by chapter 472 of the laws of 2010,  subparagraph  (A)
 of  paragraph  1  as amended by section 4 of part F of chapter 59 of the
 laws of 2013, are amended to read as follows:
   (1) (A) For taxable years beginning on or  after  January  first,  two
 thousand   ten   and   before   January  first,  two  thousand  [twenty]
 TWENTY-FIVE, a  taxpayer  shall  be  allowed  a  credit  as  hereinafter
 provided, against the tax imposed by this article, in an amount equal to
 [one  hundred  percent of the amount of credit allowed the taxpayer with
 respect to a certified historic structure  under  subsection  (a)(2)  of
 section  47  of the federal internal revenue code] TWENTY PERCENT OF THE
 QUALIFIED  REHABILITATION  EXPENDITURES  with  respect  to  a  certified
 historic  structure  located  within  the  state. Provided, however, the
 credit shall not exceed five million dollars.  For taxable years  begin-
 ning  on  or  after  January first, two thousand [twenty] TWENTY-FIVE, a
 taxpayer shall be allowed a credit as hereinafter provided, against  the
 tax imposed by this article, in an amount equal to thirty percent of the
 [amount  of  credit  allowed  the  taxpayer  with respect to a certified
 historic structure under subsection (a)(2) of section 47 of the  federal
 internal revenue code] QUALIFIED REHABILITATION EXPENDITURE with respect
 to  a  certified  historic structure located within the state. Provided,
 however, the credit shall not exceed one hundred thousand dollars.
   (B) If the taxpayer is a  partner  in  a  partnership,  then  the  cap
 imposed  in  subparagraph  (A) of this paragraph shall be applied at the
 entity level, so that the aggregate credit allowed to all  the  partners
 of  such  partnership in the taxable year does not exceed the credit cap
 that is applicable in that taxable year.
   (2) Tax credits allowed pursuant to this subsection shall  be  allowed
 in  the  taxable  year  [that  the qualified rehabilitation is placed in
 service under section 167 of the federal internal revenue code] IN WHICH
 THE  FINAL  CERTIFICATION  STEP  OF  THE  CERTIFIED  REHABILITATION   IS
 COMPLETED  PURSUANT  TO  SUBPARAGRAPH (C) OF PARAGRAPH TWO OF SUBSECTION
 (OO) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER.
   (3) [If the credit allowed the taxpayer pursuant to section 47 of  the
 internal  revenue  code  with  respect  to a qualified rehabilitation is

 S. 7509--B                         66

 recaptured pursuant to subsection (a) of  section  50  of  the  internal
 revenue  code,  a portion of the credit allowed under this subsection in
 the taxable year the credit was claimed must be added back in  the  same
 taxable  year  and  in the same proportion as the federal recapture] (A)
 IF, BEFORE THE END OF THE TWO-YEAR PERIOD BEGINNING ON THE DATE  OF  THE
 FINAL  CERTIFICATION  REFERRED  TO IN PARAGRAPH TWO OF THIS SUBDIVISION,
 THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN A CERTIFIED  STRUC-
 TURE, OR SUCH CERTIFIED HISTORIC STRUCTURE OTHERWISE CEASES TO BE ELIGI-
 BLE  FOR  THE  CREDIT ALLOWED UNDER THIS SUBDIVISION, THE TAXPAYER'S TAX
 IMPOSED BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH  SUCH  DISPOSITION
 OCCURS SHALL BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT ALLOWED
 UNDER  THIS  PARAGRAPH  FOR ALL PRIOR TAXABLE YEARS WITH RESPECT TO SUCH
 REHABILITATION.
   (B) FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE  RECAPTURE
 PORTION  SHALL  BE  THE  PRODUCT  OF THE AMOUNT OF CREDIT CLAIMED BY THE
 TAXPAYER MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH  IS  EQUAL  TO
 TWENTY-FOUR  LESS  THE NUMBER OF MONTHS BEFORE THE DISPOSITION OR CESSA-
 TION OF THE STRUCTURE OCCURRED.
   § 5. Subdivision 6 of section  13.15  of  the  parks,  recreation  and
 historic  preservation law, as added by chapter 547 of the laws of 2006,
 is amended to read as follows:
   6. The office may establish a fee  or  fees  for  its  processing  and
 review  of  applications  for the certification of the rehabilitation of
 historic buildings and the approval of rehabilitation  expenditures  and
 related  work  pursuant  to  [subsection]  SUBSECTIONS  (OO) AND (pp) of
 section six hundred six of the tax law. All  revenues  from  these  fees
 shall  be  deposited  by  the  comptroller  in the miscellaneous special
 revenue fund to be credited to the agency's patron services account  and
 shall  be  used  to  support the office's historic preservation program.
 Nothing in this subdivision shall be construed to limit the ability of a
 local landmark commission established pursuant to  section  ninety-six-a
 or  one  hundred  nineteen-dd  of  the  general municipal law or a local
 government certified pursuant  to  section  101(c)(1)  of  the  national
 historic  preservation act to establish and charge fees for its process-
 ing and review of applications for the certification  of  the  rehabili-
 tation of historic buildings and the approval of rehabilitation expendi-
 tures.
   § 6. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2018.
 
                                 PART DDD
 
   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (iii) to read as follows:
   (III) CLINICAL PRECEPTORSHIP CREDIT. (1) GENERAL. A TAXPAYER WHO IS  A
 PRECEPTOR  CLINICIAN  WHO  PROVIDES  PRECEPTOR  INSTRUCTION AS PART OF A
 CLINICAL PRECEPTORSHIP SHALL BE ALLOWED A CREDIT OF ONE THOUSAND DOLLARS
 FOR EACH ONE HUNDRED HOURS OF SUCH PRECEPTOR INSTRUCTION; PROVIDED  THAT
 THE  CREDIT  ALLOWED  PURSUANT TO THIS SUBSECTION SHALL NOT EXCEED THREE
 THOUSAND DOLLARS DURING ANY TAXABLE YEAR.
   (2) DEFINITIONS. AS USED IN THIS SUBSECTION:
   (A) THE TERM "PRECEPTOR CLINICIAN"  MEANS  A  (I)  PHYSICIAN  LICENSED
 PURSUANT  TO  ARTICLE  ONE HUNDRED THIRTY-ONE OF THE EDUCATION LAW, (II)
 PHYSICIAN  ASSISTANT  LICENSED   PURSUANT   TO   ARTICLE   ONE   HUNDRED
 THIRTY-ONE-B OF THE EDUCATION LAW, (III) SPECIALIST ASSISTANT REGISTERED
 PURSUANT  TO ARTICLE ONE HUNDRED THIRTY-ONE-C OF THE EDUCATION LAW, (IV)

 S. 7509--B                         67
 
 CERTIFIED  REGISTERED  NURSE  ANESTHETIST  CERTIFIED  BY  THE  EDUCATION
 DEPARTMENT,  (V)  REGISTERED  PROFESSIONAL  NURSE  LICENSED  PURSUANT TO
 SECTION SIXTY-NINE HUNDRED FIVE OF THE EDUCATION LAW, (VI) NURSE PRACTI-
 TIONER  CERTIFIED  PURSUANT  TO  SECTION  SIXTY-NINE  HUNDRED TEN OF THE
 EDUCATION LAW, (VII) CLINICAL NURSE  SPECIALIST  CERTIFIED  PURSUANT  TO
 SECTION  SIXTY-NINE  HUNDRED  ELEVEN  OF  THE  EDUCATION  LAW, OR (VIII)
 MIDWIFE LICENSED PURSUANT TO ARTICLE ONE HUNDRED FORTY OF THE  EDUCATION
 LAW,  WHO,  WITHOUT  THE PROVISION OF ANY FORM OF COMPENSATION THEREFOR,
 PROVIDES A CLINICAL PRECEPTORSHIP OR PRECEPTORSHIPS INCLUDING,  BUT  NOT
 LIMITED TO, BOTH COMMUNITY AND IN-PATIENT FACILITIES, DURING THE TAXABLE
 YEAR.
   (B)  THE  TERM  "CLINICAL  PRECEPTORSHIP"  MEANS A PRECEPTORSHIP FOR A
 STUDENT ENROLLED IN A NEW YORK STATE BASED EDUCATIONAL PROGRAM  APPROVED
 PURSUANT  TO  TITLE  EIGHT  OF  THE EDUCATION LAW TO BECOME A PHYSICIAN,
 PHYSICIAN ASSISTANT, SPECIALIST ASSISTANT,  CERTIFIED  REGISTERED  NURSE
 ANESTHETIST, REGISTERED PROFESSIONAL NURSE, NURSE PRACTITIONER, CLINICAL
 NURSE  SPECIALIST OR MIDWIFE, AND WHICH PRECEPTORSHIP PROVIDES PRECEPTOR
 INSTRUCTION IN FAMILY MEDICINE, INTERNAL MEDICINE,  PEDIATRICS,  OBSTET-
 RICS  AND  GYNECOLOGY, EMERGENCY MEDICINE, PSYCHIATRY OR GENERAL SURGERY
 UNDER THE SUPERVISION OF A PRECEPTOR CLINICIAN.
   (3) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
 OR  REFUNDED  IN  ACCORDANCE  WITH THE PROVISIONS OF SECTION SIX HUNDRED
 EIGHTY-SIX OF THIS ARTICLE; PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE
 PAID THEREON.
   § 2. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law.
 
                                 PART EEE
 
   Section 1. The tax law is amended by adding a new section 24-b to read
 as follows:
   §  24-B.  TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDIT.
 (A)(1) A TAXPAYER WHICH IS A QUALIFIED FILM  PRODUCTION  COMPANY,  OR  A
 QUALIFIED  INDEPENDENT  FILM  PRODUCTION  COMPANY,  OR  WHICH  IS A SOLE
 PROPRIETOR OF OR A MEMBER OF A PARTNERSHIP WHICH  IS  A  QUALIFIED  FILM
 PRODUCTION  COMPANY  OR A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY,
 AND WHICH IS SUBJECT TO TAX UNDER ARTICLES NINE-A OR TWENTY-TWO OF  THIS
 CHAPTER,  SHALL  BE  ALLOWED  A CREDIT AGAINST SUCH TAX, PURSUANT TO THE
 PROVISIONS REFERENCED IN SUBDIVISION (C) OF THIS SECTION, TO BE COMPUTED
 AS HEREINAFTER PROVIDED.
   (2) THE AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO  RATA  SHARE
 OF  THE  PRODUCT,  IN  THE  CASE OF A MEMBER OF A PARTNERSHIP) OF THIRTY
 PERCENT AND THE QUALIFIED TELEVISION WRITERS' AND  DIRECTORS'  FEES  AND
 SALARIES  COSTS  PAID OR INCURRED IN THE PRODUCTION OF A QUALIFIED FILM,
 PROVIDED THAT: (I) THE CREDIT AMOUNT SHALL  NOT  EXCEED  FIFTY  THOUSAND
 DOLLARS  FOR QUALIFIED TELEVISION WRITERS' AND DIRECTORS' FEES AND SALA-
 RIES CLAIMED FOR SUCH EXPENSES INCURRED FOR THE EMPLOYMENT  OF  ANY  ONE
 SPECIFIC  WRITER  OR  DIRECTOR FOR THE PRODUCTION OF A SINGLE TELEVISION
 PILOT OR A SINGLE EPISODE OF A TELEVISION SERIES, AND  (II)  THE  CREDIT
 AMOUNT SHALL NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS FOR QUALIFIED
 TELEVISION  WRITERS'  AND  DIRECTORS' FEES AND SALARIES CLAIMED FOR SUCH
 EXPENSES INCURRED FOR THE EMPLOYMENT  OF  ANY  ONE  SPECIFIC  WRITER  OR
 DIRECTOR.  THE CREDIT SHALL BE ALLOWED FOR THE TAXABLE YEAR IN WHICH THE
 PRODUCTION OF SUCH QUALIFIED FILM IS COMPLETED.

 S. 7509--B                         68
 
   (3) NO QUALIFIED TELEVISION WRITERS' AND DIRECTORS' FEES AND  SALARIES
 USED  BY  A TAXPAYER EITHER AS THE BASIS FOR THE ALLOWANCE OF THE CREDIT
 PROVIDED FOR PURSUANT TO THIS SECTION OR USED IN THE CALCULATION OF  THE
 CREDIT  PROVIDED PURSUANT TO THIS SECTION SHALL BE USED BY SUCH TAXPAYER
 TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER.
   (B)  DEFINITIONS.  AS  USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (1) "QUALIFIED FILM PRODUCTION COMPANY" IS A CORPORATION, PARTNERSHIP,
 LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL WHICH OR WHO IS PRIN-
 CIPALLY ENGAGED IN THE PRODUCTION OF A QUALIFIED FILM AND  CONTROLS  THE
 QUALIFIED FILM DURING PRODUCTION.
   (2)  "QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY" IS A CORPORATION,
 PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY OR INDIVIDUAL, THAT OR
 WHO (I) IS PRINCIPALLY ENGAGED IN THE PRODUCTION  OF  A  QUALIFIED  FILM
 WITH  A  MAXIMUM  BUDGET  OF  FIFTEEN MILLION DOLLARS, (II) CONTROLS THE
 QUALIFIED FILM DURING PRODUCTION, AND (III) EITHER  IS  NOT  A  PUBLICLY
 TRADED  ENTITY, OR NO MORE THAN FIVE PERCENT OF THE BENEFICIAL OWNERSHIP
 OF WHICH IS OWNED, DIRECTLY OR INDIRECTLY, BY A PUBLICLY TRADED ENTITY.
   (3) "QUALIFIED FILM" MEANS A TELEVISION FILM, TELEVISION PILOT  AND/OR
 EACH  EPISODE  OF A TELEVISION SERIES, REGARDLESS OF THE MEDIUM BY MEANS
 OF WHICH THE FILM, PILOT OR EPISODE IS CREATED OR CONVEYED.
   (4) "QUALIFIED TELEVISION WRITERS' AND DIRECTORS' FEES  AND  SALARIES"
 MEANS: (I) SALARIES OR FEES PAID TO A WRITER OR DIRECTOR WHO RECEIVES AN
 ON-AIR  CREDIT; (II) FOR A NON-CREDITED WRITER, UP TO SEVENTY-FIVE THOU-
 SAND DOLLARS IN SALARIES OR FEES PER SERIES OF EPISODES.  PROVIDED  THAT
 IN  EACH  CASE,  SUCH  WRITER OR DIRECTOR IS A MINORITY GROUP MEMBER, AS
 DEFINED IN SUBDIVISION EIGHT OF SECTION THREE HUNDRED TEN OF THE  EXECU-
 TIVE  LAW, OR A WOMAN, AND PROVIDED, FURTHER, THAT SALARIES OR FEES PAID
 TO ANY WRITER OR DIRECTOR WHO IS A PROFIT PARTICIPANT IN  THE  QUALIFIED
 FILM SHALL NOT BE ELIGIBLE.
   (5)  "WRITER"  MEANS  A PERSON WHO IS: (I) ENGAGED BY A QUALIFIED FILM
 PRODUCTION COMPANY OR A QUALIFIED INDEPENDENT FILM PRODUCTION COMPANY TO
 WRITE LITERARY MATERIAL (INCLUDING MAKING CHANGES OR REVISIONS IN LITER-
 ARY MATERIAL), WHEN THE COMPANY HAS THE RIGHT BY CONTRACT TO DIRECT  THE
 PERFORMANCE  OF  PERSONAL SERVICES IN WRITING OR PREPARING SUCH MATERIAL
 OR IN MAKING  REVISIONS,  MODIFICATIONS  OR  CHANGES  THEREIN;  OR  (II)
 ENGAGED  BY  THE  COMPANY  AND  WHO  PERFORMS SERVICES (AT THE COMPANY'S
 DIRECTION OR WITH ITS CONSENT) IN WRITING  OR  PREPARING  SUCH  LITERARY
 MATERIAL  OR MAKING REVISIONS, MODIFICATIONS, OR CHANGES IN SUCH MATERI-
 AL; AND (III) WHO REPORTS TO WORK REGULARLY IN A WRITERS ROOM LOCATED IN
 THE STATE.
   (6) "LITERARY MATERIAL" SHALL BE DEEMED TO  INCLUDE  STORIES,  ADAPTA-
 TIONS,  TREATMENTS,  ORIGINAL TREATMENTS, SCENARIOS, CONTINUITIES, TELE-
 PLAYS, SCREENPLAYS, DIALOGUE, SCRIPTS, SKETCHES, PLOTS, OUTLINES, NARRA-
 TIVE SYNOPSES, ROUTINES, NARRATIONS, AND FORMATS.
   (7) "WRITERS ROOM" MEANS A ROOM OR  PHYSICAL  LOCATION  WHERE  WRITERS
 EMPLOYED BY A QUALIFIED FILM PRODUCTION COMPANY OR QUALIFIED INDEPENDENT
 FILM PRODUCTION COMPANY WRITE OR REVISE LITERARY MATERIALS UTILIZED IN A
 QUALIFIED FILM.
   (8)  "DIRECTOR" MEANS AN INDIVIDUAL EMPLOYED OR RETAINED TO DIRECT THE
 PRODUCTION, AS THE WORD "DIRECT" IS COMMONLY USED IN THE MOTION  PICTURE
 INDUSTRY,  AND  WHO  WOULD  BE  CLASSIFIED AS A DIRECTOR UNDER THE BASIC
 AGREEMENT IN PLACE BETWEEN THE ASSOCIATION OF MOTION PICTURE  AND  TELE-
 VISION  PRODUCERS AND THE DIRECTOR'S GUILD OF AMERICA AND WHO IS A RESI-
 DENT OF NEW YORK.

 S. 7509--B                         69

   (9) "PROFIT PARTICIPANT" IS AN INDIVIDUAL WHO  HAS  NEGOTIATED  FOR  A
 PERCENTAGE  OF  PROFITS  GENERATED  BY  A QUALIFIED FILM. PROFIT PARTIC-
 IPATION DOES NOT INCLUDE MONIES CONTRACTUALLY REQUIRED  BY  COLLECTIVELY
 BARGAINED  AGREEMENTS  FOR  REUSE OF A QUALIFIED FILM ON DIFFERENT PLAT-
 FORMS OVER TIME.
   (C)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 53.
   (2) ARTICLE 22: SECTION 606: SUBSECTION (V).
   (D) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, (1)  EMPLOYEES  AND
 OFFICERS  OF  THE  DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT
 SHALL BE ALLOWED AND ARE DIRECTED  TO  SHARE  AND  EXCHANGE  INFORMATION
 REGARDING  THE CREDITS APPLIED FOR, ALLOWED, OR CLAIMED PURSUANT TO THIS
 SECTION AND TAXPAYERS WHO ARE APPLYING FOR CREDITS OR WHO  ARE  CLAIMING
 CREDITS, INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM
 FORMS  SUBMITTED  TO  THE  DEPARTMENT AND APPLICATIONS FOR CERTIFICATION
 SUBMITTED TO THE DEPARTMENT OF ECONOMIC DEVELOPMENT, AND (2) THE COMMIS-
 SIONER AND THE COMMISSIONER OF THE DEPARTMENT  OF  ECONOMIC  DEVELOPMENT
 MAY RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THIS CREDIT
 AND  THE AMOUNT OF THE CREDIT EARNED BY THE TAXPAYER. PROVIDED, HOWEVER,
 IF A TAXPAYER CLAIMS THIS CREDIT BECAUSE IT IS A  MEMBER  OF  A  LIMITED
 LIABILITY  COMPANY  OR  A  PARTNER  IN A PARTNERSHIP, ONLY THE AMOUNT OF
 CREDIT EARNED BY THE ENTITY AND NOT THE AMOUNT OF CREDIT CLAIMED BY  THE
 TAXPAYER MAY BE RELEASED.
   (E) MAXIMUM AMOUNT OF CREDITS. (1) THE AGGREGATE AMOUNT OF TAX CREDITS
 ALLOWED  UNDER  THIS  SECTION,  SUBDIVISION  FIFTY-THREE  OF SECTION TWO
 HUNDRED TEN-B AND SUBSECTION (V) OF SECTION  SIX  HUNDRED  SIX  OF  THIS
 CHAPTER  IN ANY CALENDAR YEAR SHALL BE FIVE MILLION DOLLARS. SUCH AGGRE-
 GATE 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 ALLOCATION OF TELEVISION WRITERS'  AND  DIREC-
 TORS' FEES AND SALARIES 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.
   (2) THE COMMISSIONER OF ECONOMIC DEVELOPMENT,  AFTER  CONSULTING  WITH
 THE  COMMISSIONER, SHALL PROMULGATE REGULATIONS BY OCTOBER THIRTY-FIRST,
 TWO THOUSAND EIGHTEEN TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF  TAX
 CREDITS  AS  REQUIRED BY SUBDIVISION (A) OF THIS SECTION. SUCH RULES AND
 REGULATIONS SHALL INCLUDE PROVISIONS DESCRIBING THE APPLICATION PROCESS,
 THE DUE DATES FOR SUCH APPLICATIONS, THE STANDARDS WHICH SHALL  BE  USED
 TO EVALUATE THE APPLICATIONS, THE DOCUMENTATION THAT WILL BE PROVIDED TO
 TAXPAYERS  TO  SUBSTANTIATE  TO THE DEPARTMENT THE AMOUNT OF TAX CREDITS
 ALLOCATED TO SUCH TAXPAYERS, AND SUCH OTHER PROVISIONS AS DEEMED  NECES-
 SARY  AND  APPROPRIATE.  NOTWITHSTANDING  ANY  OTHER  PROVISIONS  TO THE
 CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, SUCH RULES AND REGU-
 LATIONS MAY BE ADOPTED ON AN EMERGENCY BASIS IF NECESSARY TO  MEET  SUCH
 OCTOBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN DEADLINE.
   (F)  THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL SUBMIT TO THE GOVER-
 NOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  AND  THE  SPEAKER  OF  THE
 ASSEMBLY,  AN  ANNUAL  REPORT  TO BE SUBMITTED ON FEBRUARY FIRST OF EACH
 YEAR EVALUATING THE EFFECTIVENESS OF THE TELEVISION WRITERS' AND  DIREC-
 TORS' FEES AND SALARIES TAX CREDIT PROVIDED BY THIS SECTION IN STIMULAT-
 ING  THE  GROWTH  OF  DIVERSITY  IN THE FILM INDUSTRY IN THE STATE. SUCH
 REPORT SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, THE NUMBER  OF  QUALI-

 S. 7509--B                         70
 
 FIED   FILM  PRODUCTION  COMPANIES  AND/OR  QUALIFIED  INDEPENDENT  FILM
 PRODUCTION COMPANIES WHICH RECEIVED A TELEVISION WRITERS' AND DIRECTORS'
 FEES AND SALARIES CREDIT, THE CREDIT AMOUNTS CLAIMED BY  EACH  QUALIFIED
 FILM  PRODUCTION  COMPANY  AND/OR  QUALIFIED INDEPENDENT FILM PRODUCTION
 COMPANY, AS WELL AS THE IMPACT ON EMPLOYMENT  AND  THE  ECONOMY  OF  THE
 STATE. SUCH REPORT SHALL BE BASED ON DATA AVAILABLE FROM THE APPLICATION
 FILED  WITH  THE  DEPARTMENT  OF  ECONOMIC DEVELOPMENT FOR ALLOCATION OF
 TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDITS.   NOTWITH-
 STANDING ANY PROVISION OF LAW TO THE CONTRARY, THE INFORMATION CONTAINED
 IN  THE  REPORT SHALL BE PUBLIC INFORMATION. THE REPORT MAY ALSO INCLUDE
 ANY RECOMMENDATIONS OF CHANGES IN THE CALCULATION OR  ADMINISTRATION  OF
 THE  CREDIT,  AND  ANY  OTHER  RECOMMENDATION OF THE COMMISSIONER OF THE
 DEPARTMENT OF ECONOMIC DEVELOPMENT  REGARDING  CONTINUING  MODIFICATION,
 REPEAL  OF SUCH ACT, AND SUCH OTHER INFORMATION REGARDING THE ACT AS THE
 COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOPMENT MAY  FEEL  USEFUL
 AND APPROPRIATE.
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:
   53. TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDIT.   (A)
 ALLOWANCE  OF  CREDIT.  A  TAXPAYER  WHO IS ELIGIBLE PURSUANT TO SECTION
 TWENTY-FOUR-B OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO  BE  COMPUTED
 AS PROVIDED IN SUCH SECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF  THE
 AMOUNT  OF  THE  CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE
 YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE  TAXPAYER  OTHERWISE  PAYS
 TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, THE EXCESS SHALL BE TREAT-
 ED  AS  AN  OVERPAYMENT  OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE
 WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS  CHAPTER.
 PROVIDED, FURTHER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOU-
 SAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE
 PAID THEREON.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (v) to read as follows:
   (V)  TELEVISION WRITERS' AND DIRECTORS' FEES AND SALARIES CREDIT.  (1)
 ALLOWANCE OF CREDIT. A TAXPAYER WHO  IS  ELIGIBLE  PURSUANT  TO  SECTION
 TWENTY-FOUR-B  OF  THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED
 AS PROVIDED IN SUCH SECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED OR REFUNDED AS PROVIDED IN SECTION SIX  HUNDRED  EIGHTY-SIX  OF  THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xlix)  to  read  as
 follows:
 
 (XLIX) TELEVISION WRITERS'            AMOUNT OF CREDIT FOR THE SUM OF
 AND DIRECTORS' FEES AND SALARIES      QUALIFIED TELEVISION WRITERS' AND
 CREDIT UNDER SUBSECTION (V)           DIRECTORS' SALARIES CREDIT
                                       UNDER SUBDIVISION FIFTY-THREE OF
                                       SECTION TWO HUNDRED TEN-B

 S. 7509--B                         71
 
   §  5. This act shall take effect immediately, and shall apply to taxa-
 ble years beginning on or after January 1, 2019.
 
                                 PART FFF
 
   Section 1. Subsection (i) of section 612 of the tax law is REPEALED.
   §  2. Subdivision (i) of section 11-1712 of the administrative code of
 the city of New York, as amended by chapter 333 of the laws of 1987,  is
 amended to read as follows:
   (i)  In  the case of mines, oil and gas wells and other natural depos-
 its, any allowance for percentage  depletion  pursuant  to  section  six
 hundred  thirteen  or  section  six  hundred  thirteen A of the internal
 revenue code shall be added to federal adjusted gross  income.  However,
 with  respect  to  the  property  as  to  which such addition to federal
 adjusted gross income is required, an allowance for depletion  shall  be
 subtracted  from  federal adjusted gross income in the amount that would
 be deductible under section six hundred  eleven  of  such  code  if  the
 deduction for an allowance for depletion were computed without reference
 to  such section six hundred thirteen or section six hundred thirteen A.
 [With respect to the computation of depletion pursuant to this  subdivi-
 sion, the basis for such computation shall be the basis for state income
 tax  purposes  provided  for  in  subsection  (i) of section six hundred
 twelve of the tax law.] The portion of any gain from the sale  or  other
 disposition  of  such  property  having a higher adjusted basis for city
 income tax purposes than for federal income tax purposes, that does  not
 exceed  such  difference  in  basis,  shall  be  subtracted from federal
 adjusted gross income.
   § 3. Paragraph 10 of subsection (b) of section 612 of the tax  law  is
 REPEALED.
   §  4.  Paragraph 13 of subsection (c) of section 612 of the tax law is
 REPEALED.
   § 5. Subsection 4 of section 618 of the tax law, as amended by section
 9 of part C of chapter 25 of the laws of 2009, is  amended  to  read  as
 follows:
   (4)  There  shall  be  added  or  subtracted  (as the case may be) the
 modifications described in paragraphs (6)[,  (10)],  (17),  (18),  (19),
 (20),  (21),  (22), (23), (24), (25), (26), (27), (29), (38) and (39) of
 subsection (b) and in paragraphs (11)[, (13)], (15), [(19),] (20), (21),
 (22), (23), (24), (25), (26) and (28) of subsection (c) of  section  six
 hundred twelve of this part.
   § 6. Subsection 4 of section 618 of the tax law, as separately amended
 by  section 5 of part HH-1 of chapter 57 of the laws of 2008 and section
 9 of part C of chapter 25 of the laws of 2009, is  amended  to  read  as
 follows:
   (4)  There  shall  be  added  or  subtracted  (as the case may be) the
 modifications described in paragraphs (6)[,  (10)],  (17),  (18),  (19),
 (20),  (21),  (22), (23), (24), (25), (26), (27), [(28),] (29), (38) and
 (39) of subsection (b) and in paragraphs  (11)[,  (13)],  (15),  [(19),]
 (20),  (21),  (22), (23), (24), (25), (26) and (28) of subsection (c) of
 section six hundred twelve of this part.
   § 7. This act shall take effect immediately and  shall  apply  to  all
 taxable  years  beginning on or after January 1, 2019; provided that the
 amendments to subsection 4 of section 618 of the tax law made by section
 five of this act shall be subject to the  expiration  and  reversion  of
 such  subdivision  pursuant  to  section 8 of chapter 782 of the laws of

 S. 7509--B                         72
 
 1988, as amended, when upon such date the provisions of section  six  of
 this act shall take effect.
 
                                 PART GGG
 
   Section  1.  Paragraph  38 of subsection (c) of section 612 of the tax
 law, as added by chapter 565 of the laws of 2006, is amended to read  as
 follows:
   (38)  An  amount  of  up  to ten thousand dollars if a taxpayer, while
 living, donates one or more of his or her human organs to another  human
 being  for  human organ transplantation. For purposes of this paragraph,
 "human organ" means all or part of a liver, pancreas, kidney, intestine,
 lung, or bone marrow. A subtract modification allowed under  this  para-
 graph  shall  be  claimed  in  the taxable year in which the human organ
 transplantation occurs.
   (A) A taxpayer shall claim the  subtract  modification  allowed  under
 this paragraph only once and such subtract modification shall be claimed
 for  only  the following unreimbursed expenses which are incurred by the
 taxpayer OR SPOUSE OF THE TAXPAYER, and related to the taxpayer's  organ
 donation:
   (i) travel expenses;
   (ii) lodging expenses; [and]
   (iii) lost wages[.]; AND
   (IV) CHILD CARE COSTS;
   (B)  The  subtract modification allowed under this paragraph shall not
 be claimed by a part-year resident or a non-resident of this state.
   § 2. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.
 
                                 PART HHH
 
   Section 1. 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:
   (e) Maximum amount of credits. (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] SIX 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 allocation 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.
   (2) The commissioner of economic development,  after  consulting  with
 the  commissioner, shall promulgate regulations by October thirty-first,
 two thousand fourteen to establish procedures for the allocation of  tax
 credits  as  required by subdivision (a) of this section. Such rules and
 regulations shall include provisions describing the application process,
 the due dates for such applications, the standards which shall  be  used
 to evaluate the applications, the documentation that will be provided to
 taxpayers  to  substantiate  to the department the amount of tax credits
 allocated to such taxpayers, and such other provisions as deemed  neces-
 sary  and appropriate. SUCH RULES AND REGULATIONS SHALL PERMIT AN APPLI-

 S. 7509--B                         73
 
 CANT FOR CREDITS UNDER THIS SECTION  TO  PROVIDE  THE  REQUIRED  CERTIF-
 ICATIONS  BY PROVIDING INFORMATION AND OTHER DOCUMENTATION PROVIDED BY A
 LICENSED AUDITOR ON BEHALF OF THE APPLICANT. Notwithstanding  any  other
 provisions  to  the  contrary in the state administrative procedure act,
 such rules and regulations may be  adopted  on  an  emergency  basis  if
 necessary to meet such October thirty-first, two thousand fourteen dead-
 line.
   §  2.  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,  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 [4 years after such date] MARCH 31, 2023.
   §  3.  This act shall take effect immediately, provided, however, that
 the amendments to section 24-a of the tax law made  by  section  one  of
 this  act  shall  not affect the repeal of such section and shall expire
 and be deemed to repeal therewith.
 
                                 PART III
 
   Section 1. The education law is amended by adding a new section 682 to
 read as follows:
   § 682. COLLEGE DEBT FREEDOM ACCOUNT PILOT PROGRAM. 1. THERE IS  HEREBY
 ESTABLISHED THE COLLEGE DEBT FREEDOM ACCOUNT PILOT PROGRAM. SUCH PROGRAM
 SHALL  PERMIT EMPLOYEES OF ANY EMPLOYER JOINTLY CERTIFIED BY THE COMMIS-
 SIONER AND THE COMMISSIONER OF TAXATION AND  FINANCE  PURSUANT  TO  THIS
 SECTION  TO  DEPOSIT A PORTION OF THEIR PRE-TAX INCOME PURSUANT TO PARA-
 GRAPH FORTY-FOUR OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF  THE
 TAX  LAW, INTO AN ACCOUNT SOLELY INTENDED FOR UNDERGRADUATE STUDENT LOAN
 REPAYMENTS.  CERTIFIED EMPLOYERS SHALL RECEIVE A TAX CREDIT BY  CONTRIB-
 UTING  MATCHING  FUNDS  TO  AN EMPLOYEE'S STUDENT LOAN REPAYMENT ACCOUNT
 ESTABLISHED PURSUANT TO THIS SECTION. SUCH CONTRIBUTION SHALL  BE  MINI-
 MALLY  FIFTY PERCENT OF THE EMPLOYEE'S DEPOSIT AND A MAXIMUM ONE HUNDRED
 PERCENT OF THE EMPLOYEE'S DEPOSIT, UP  TO  TWENTY-FIVE  HUNDRED  DOLLARS
 ANNUALLY,  PER EMPLOYEE ACCOUNT.  THE ANNUAL MAXIMUM AGGREGATE AMOUNT TO
 BE DEPOSITED PER ACCOUNT BY THE EMPLOYEE  AND  EMPLOYER  SHALL  BE  FIVE
 THOUSAND DOLLARS.
   2.  FOR  THE  PURPOSES  OF THIS SECTION, "STUDENT LOAN" SHALL MEAN THE
 CUMULATIVE TOTAL OF THE  ANNUAL  STUDENT  LOANS  COVERING  THE  COST  OF
 ATTENDANCE  AT  AN UNDERGRADUATE COLLEGE OR UNIVERSITY, AND ANY INTEREST
 THEREON OR AS DEFINED IN SUBPARAGRAPH (I)  OF  PARAGRAPH  FORTY-FOUR  OF
 SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THE TAX LAW.
   3. ANY EMPLOYER WHICH IS A MIDDLE-SIZED BUSINESS IN THIS STATE, HAVING
 BETWEEN  TWENTY  AND  FIVE  HUNDRED  FULL-TIME  EMPLOYEES, MAY SUBMIT AN
 APPLICATION TO THE COMMISSIONER FOR CERTIFICATION TO PARTICIPATE IN  THE
 PROGRAM  ESTABLISHED  PURSUANT TO THIS SECTION. THE COMMISSIONER AND THE
 COMMISSIONER OF TAXATION AND FINANCE SHALL JOINTLY CONSIDER EACH  APPLI-
 CATION   FOR  CERTIFICATION  SUBMITTED  PURSUANT  TO  THIS  SUBDIVISION.
 PROVIDED THAT NOT MORE  THAN  FIFTY  EMPLOYERS  SHALL  BE  CERTIFIED  TO
 PARTICIPATE IN THE PROGRAM.

 S. 7509--B                         74
 
   4. EMPLOYEE STUDENT LOAN REPAYMENT ACCOUNTS SHALL BE ESTABLISHED BY AN
 EMPLOYEE FOR DEPOSIT OF FUNDS TO BE USED SOLELY FOR REPAYMENT OF STUDENT
 LOANS.  SUCH  ACCOUNTS SHALL BE MANAGED BY THE HIGHER EDUCATION SERVICES
 CORPORATION. ALL ENROLLEES AND CERTIFIED PARTICIPATING  EMPLOYERS  SHALL
 PROVIDE  THE  CORPORATION  WITH  ALL  NECESSARY  INFORMATION IN ORDER TO
 IMPLEMENT THE PROVISIONS OF THIS SECTION.
   5. MONEYS IN A STUDENT LOAN REPAYMENT ACCOUNT SHALL BE AVAILABLE  ONLY
 FOR  REPAYMENTS  OF STUDENT LOANS. ANY WITHDRAWAL OR DISTRIBUTION FROM A
 STUDENT LOAN REPAYMENT ACCOUNT WHICH VIOLATED  THE  PROVISIONS  OF  THIS
 SUBDIVISION  SHALL  BE  SUBJECT  TO A PENALTY OF TEN PERCENT ON ANY SUCH
 WITHDRAWAL OR DISTRIBUTION.
   6. THE COMMISSIONER AND THE COMMISSIONER OF TAXATION AND FINANCE SHALL
 JOINTLY PROMULGATE RULES AND  REGULATIONS  NECESSARY  TO  IMPLEMENT  THE
 PROVISIONS OF THIS SECTION.
   § 2. Subsection (c) of section 612 of the tax law is amended by adding
 a new paragraph 44 to read as follows:
   (44)  PAYMENT  NOT  IN  EXCESS OF TWENTY-FIVE HUNDRED DOLLARS ACTUALLY
 PAID BY AN ELIGIBLE BORROWER EMPLOYED BY AN EMPLOYER CERTIFIED  PURSUANT
 TO  SECTION SIX HUNDRED EIGHTY-TWO OF THE EDUCATION LAW FOR STUDENT LOAN
 REPAYMENT, TO THE EXTENT NOT DEDUCTIBLE IN DETERMINING FEDERAL  ADJUSTED
 GROSS INCOME AND NOT REIMBURSED. FOR THE PURPOSES OF THIS PARAGRAPH, THE
 FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (I)  "STUDENT  LOANS"  SHALL  MEAN  ANY  INDEBTEDNESS  INCURRED BY THE
 TAXPAYER FOR AN UNDERGRADUATE EDUCATION LOAN IN ACCORDANCE WITH  SECTION
 221  OF  THE  INTERNAL  REVENUE CODE OR AS DEFINED IN SUBDIVISION TWO OF
 SECTION SIX HUNDRED EIGHTY-TWO OF THE EDUCATION LAW.
   (II) "ELIGIBLE BORROWER"  SHALL  MEAN  A  TAXPAYER  WHO  HAS  INCURRED
 INDEBTEDNESS  ON  STUDENT  LOANS  AS DEFINED IN SUBPARAGRAPH (I) OF THIS
 PARAGRAPH.
   § 3. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 53 to read as follows:
   53.  COLLEGE  DEBT FREEDOM ACCOUNT PROGRAM TAX CREDIT. (A) GENERAL. AN
 EMPLOYER CERTIFIED PURSUANT TO SECTION SIX  HUNDRED  EIGHTY-TWO  OF  THE
 EDUCATION  LAW,  WHO  CONTRIBUTES  MATCHING  FUNDS TOWARDS AN EMPLOYEE'S
 UNDERGRADUATE STUDENT LOAN REPAYMENTS, SHALL BE ALLOWED A CREDIT, TO  BE
 COMPUTED  AS  PROVIDED  IN  THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY
 THIS ARTICLE, FOR CONTRIBUTIONS THE EMPLOYER DEPOSITS  ANNUALLY,  UP  TO
 TWENTY-FIVE HUNDRED DOLLARS PER EMPLOYEE PER YEAR.
   (B)  AMOUNT OF CREDIT. THE CREDIT AUTHORIZED BY THIS SUBDIVISION SHALL
 BE EQUAL TO THE AMOUNT OF THE  EMPLOYER'S  CONTRIBUTION;  PROVIDED  THAT
 SUCH  CONTRIBUTION  SHALL BE A MINIMUM OF FIFTY PERCENT AND A MAXIMUM OF
 ONE HUNDRED PERCENT OF THE EMPLOYEE'S DEPOSIT TO A STUDENT  LOAN  REPAY-
 MENT ACCOUNT SUBJECT TO THE LIMITS SET FORTH IN THIS SUBDIVISION.
   §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
 follows:
 (XLIV) COLLEGE DEBT                  AMOUNT OF CREDIT
 FREEDOM ACCOUNT                      UNDER SUBDIVISION FIFTY-THREE
 PROGRAM TAX CREDIT UNDER             OF SECTION TWO HUNDRED TEN-B
 SUBSECTION (CCC)
   §  5. Section 606 of the tax law is amended by adding a new subsection
 (ccc) to read as follows:
   (CCC) COLLEGE DEBT FREEDOM ACCOUNT PROGRAM TAX CREDIT. (A) GENERAL. AN
 EMPLOYER, CERTIFIED PURSUANT TO SECTION SIX HUNDRED  EIGHTY-TWO  OF  THE
 EDUCATION  LAW,  WHO  CONTRIBUTES  MATCHING  FUNDS TOWARDS AN EMPLOYEE'S
 UNDERGRADUATE STUDENT LOAN REPAYMENTS, SHALL BE ALLOWED A CREDIT, TO  BE

 S. 7509--B                         75
 
 COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS
 ARTICLE,  FOR  CONTRIBUTIONS THE EMPLOYER DEPOSITS ANNUALLY, UP TO TWEN-
 TY-FIVE HUNDRED DOLLARS PER EMPLOYEE PER YEAR.
   (B)  AMOUNT  OF CREDIT. THE CREDIT AUTHORIZED BY THIS SUBSECTION SHALL
 BE EQUAL TO THE AMOUNT OF THE EMPLOYER CONTRIBUTION; PROVIDED THAT  SUCH
 CONTRIBUTION  SHALL  BE  A MINIMUM OF FIFTY PERCENT AND A MAXIMUM OF ONE
 HUNDRED PERCENT OF THE EMPLOYEE'S DEPOSIT TO A  STUDENT  LOAN  REPAYMENT
 ACCOUNT SUBJECT TO THE LIMITS SET FORTH IN THIS SUBSECTION.
   §  6.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (dd) to read as follows:
   (DD) COLLEGE DEBT FREEDOM ACCOUNT PROGRAM TAX CREDIT. (1) GENERAL.  AN
 EMPLOYER,  CERTIFIED  PURSUANT  TO SECTION SIX HUNDRED EIGHTY-TWO OF THE
 EDUCATION LAW, WHO CONTRIBUTES  MATCHING  FUNDS  TOWARDS  AN  EMPLOYEE'S
 UNDERGRADUATE  STUDENT LOAN REPAYMENTS, SHALL BE ALLOWED A CREDIT, TO BE
 COMPUTED AS PROVIDED IN THIS SUBDIVISION, AGAINST  THE  TAX  IMPOSED  BY
 THIS  ARTICLE,  FOR  CONTRIBUTIONS THE EMPLOYER DEPOSITS ANNUALLY, UP TO
 TWENTY-FIVE HUNDRED DOLLARS PER EMPLOYEE PER YEAR.
   (2) AMOUNT OF CREDIT. THE CREDIT AUTHORIZED BY THIS SUBDIVISION  SHALL
 BE  EQUAL  TO  THE  AMOUNT OF THE EMPLOYER'S CONTRIBUTION; PROVIDED THAT
 SUCH CONTRIBUTION SHALL BE A MINIMUM OF FIFTY PERCENT AND A  MAXIMUM  OF
 ONE  HUNDRED  PERCENT OF THE EMPLOYEE'S DEPOSIT TO A STUDENT LOAN REPAY-
 MENT ACCOUNT SUBJECT TO THE LIMITS SET FORTH IN THIS SUBDIVISION.
   § 7. Notwithstanding any provision of the tax law to the contrary, the
 aggregate of tax expenditure and taxes forgone pursuant to sections two,
 three, four, five and six of this act shall not exceed $70,000,000.  The
 commissioner  of  taxation  and  finance  shall  immediately suspend all
 deductions and credits established pursuant to such sections upon reach-
 ing the $70,000,000 threshold.
   § 8. This act shall take effect on the sixtieth  day  after  it  shall
 have  become  a  law  and  shall apply to taxable years commencing on or
 after January 1, 2019.
 
                                 PART JJJ
 
   Section 1. Subsection (c) of section 612 of the tax law is amended  by
 adding a new paragraph 44 to read as follows:
   (44)(A) (I) FOR A TAXPAYER WHO FILES SINGLY OR AS THE HEAD OF A HOUSE-
 HOLD WITH A FEDERAL ADJUSTED INCOME, WITHOUT THE DEDUCTION OF ANY INTER-
 EST  PAID ON STUDENT LOANS, OF NOT LESS THAN SIXTY-FIVE THOUSAND DOLLARS
 NOR MORE THAN EIGHTY THOUSAND DOLLARS, THE DIFFERENCE BETWEEN THE INTER-
 EST PAID ON STUDENT LOANS BY THE TAXPAYER, IS AN AMOUNT  NOT  TO  EXCEED
 TWO  THOUSAND  FIVE  HUNDRED  DOLLARS,  AND  THE AMOUNT OF SUCH INTEREST
 DEDUCTED BY SUCH TAXPAYER TO CALCULATE HIS OR HER FEDERAL ADJUSTED GROSS
 INCOME; AND
   (II) FOR A TAXPAYER WHO FILES SINGLY OR AS THE  HEAD  OF  A  HOUSEHOLD
 WITH  A  FEDERAL  ADJUSTED GROSS INCOME OF NOT LESS THAN EIGHTY THOUSAND
 DOLLARS, NOR MORE THAN ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS,  INTER-
 EST,  IN AN AMOUNT NOT TO EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS, PAID
 ON INDEBTEDNESS INCURRED FROM A STUDENT LOAN; AND
   (III) FOR MARRIED TAXPAYERS FILING JOINTLY  WITH  A  FEDERAL  ADJUSTED
 GROSS  INCOME,  WITHOUT  THE  DEDUCTION  OF ANY INTEREST PAID ON STUDENT
 LOANS, OF NOT LESS THAN ONE HUNDRED THIRTY THOUSAND  DOLLARS,  NOR  MORE
 THAN  ONE  HUNDRED  SIXTY  THOUSAND  DOLLARS, THE DIFFERENCE BETWEEN THE
 INTEREST PAID ON STUDENT LOANS BY THE TAXPAYERS, IN  AN  AMOUNT  NOT  TO
 EXCEED  TWO THOUSAND FIVE HUNDRED DOLLARS, AND THE AMOUNT OF SUCH INTER-

 S. 7509--B                         76
 
 EST DEDUCTED BY SUCH TAXPAYERS TO CALCULATE THEIR FEDERAL ADJUSTED GROSS
 INCOME; AND
   (IV)  FOR  MARRIED  TAXPAYERS  FILING  JOINTLY WITH A FEDERAL ADJUSTED
 GROSS INCOME OF NOT LESS THAN ONE HUNDRED SIXTY  THOUSAND  DOLLARS,  NOR
 MORE THAN TWO HUNDRED FIFTY THOUSAND DOLLARS, INTEREST, IN AN AMOUNT NOT
 TO  EXCEED  TWO  THOUSAND  FIVE  HUNDRED  DOLLARS,  PAID ON INDEBTEDNESS
 INCURRED FROM A STUDENT LOAN.
   (B) FOR THE PURPOSES OF THIS PARAGRAPH, "STUDENT LOAN" SHALL HAVE  THE
 SAME  MEANING  AS ASCRIBED TO SUCH TERM BY SUBPARAGRAPH (B) OF PARAGRAPH
 FORTY-TWO OF THIS SUBSECTION, AS ADDED BY CHAPTER FOUR HUNDRED FIFTY-SIX
 OF THE LAWS OF TWO THOUSAND SEVENTEEN.
   § 2. This act shall take effect immediately, and shall apply to  taxa-
 ble years commencing on or after January 1, 2019.
 
                                 PART KKK
 
   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (p-1) to read as follows:
   (P-1) RESIDENTIAL FUEL OIL STORAGE TANK CREDIT. (1) ALLOWANCE OF CRED-
 IT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS  HEREINAFTER
 PROVIDED,  AGAINST  THE  TAX  IMPOSED BY THIS ARTICLE FOR THE REMOVAL OR
 PERMANENT CLOSURE AND INSTALLATION OF  A  BELOW-GROUND  OR  ABOVE-GROUND
 RESIDENTIAL  FUEL  OIL  STORAGE  TANK  USED  TO PROVIDE HEATING FUEL FOR
 SINGLE FAMILY, TWO FAMILY,  THREE  FAMILY  AND  FOUR  FAMILY  RESIDENCES
 LOCATED IN THIS STATE.
   (2)  AMOUNT  OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE
 COSTS OF REMOVAL OR PERMANENT CLOSURE OF  AN  EXISTING  BELOW-GROUND  OR
 ABOVE-GROUND RESIDENTIAL FUEL OIL TANK AND THE PURCHASE AND INSTALLATION
 COSTS OF A NEW BELOW-GROUND OR ABOVE-GROUND RESIDENTIAL FUEL OIL STORAGE
 TANK  WHICH  IS INSTALLED DURING THE TAXABLE YEAR WHERE SUCH NEW TANK IS
 USED IN PLACE OF SUCH FORMERLY USED BELOW-GROUND OR  ABOVE-GROUND  RESI-
 DENTIAL FUEL OIL TANK WHICH WAS REMOVED OR PERMANENTLY CLOSED DURING THE
 TAXABLE YEAR, NOT TO EXCEED FIVE HUNDRED DOLLARS.
   (3)  LIMITATION. A CREDIT ALLOWED UNDER THIS SUBSECTION MAY BE ALLOWED
 ONLY ONCE WITH RESPECT TO A PARTICULAR RESIDENCE.
   (4) CARRYOVER. IF THE  AMOUNT  OF  THE  CREDIT  ALLOWABLE  UNDER  THIS
 SUBSECTION  EXCEEDS  THE TAXPAYER'S TAX FOR ANY TAXABLE YEAR, THE EXCESS
 MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY  BE  DEDUCTED
 FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   (5)  TO  QUALIFY  FOR  THE  CREDIT  ESTABLISHED  BY THIS SUBSECTION, A
 REPLACEMENT FUEL OIL STORAGE TANK MUST BE INSTALLED AND SHALL  BE  OF  A
 DESIGN APPROVED BY UNDERWRITERS LABORATORIES (U.L.), AS FOLLOWS:
   (A) U.L. 80: A STEEL TANK WITH A POLYURETHANE EXTERIOR COATING;
   (B) U.L. 80: A STEEL TANK WITH A DOUBLE-BOTTOM LEAK PROTECTION SYSTEM,
 WITH OR WITHOUT A POLYURETHANE EXTERIOR COATING;
   (C)  U.L.  80  STEEL  TANK,  WITHOUT  A POLYURETHANE EXTERIOR COATING,
 PROVIDED THAT SUCH TANK IS LOCATED INSIDE A SEALED, LEAK-PROOF SECONDARY
 CONTAINMENT STRUCTURE LISTED TO U.L.  2258  (NON-METALLIC  TUB  FOR  OIL
 TANKS),  WHEREIN SUCH STRUCTURE HAS A VOLUMETRIC CAPACITY OF 110% OF THE
 INSIDE TANK;
   (D) U.L. 2558: A DOUBLE WALL TANK CONSISTING OF AN INTERIOR  POLYETHY-
 LENE TANK PLACED INSIDE A SECONDARY LIQUID-TIGHT METALLIC TANK;
   (E) U.L. 2558: A SINGLE WALL OR DOUBLE WALL FIBERGLASS TANK; OR
   (F) U.L. 58 AND U.L. 1746-PART 1: A STEEL TANK INSTITUTE P-3 TANK WITH
 CATHODIC PROTECTION.

 S. 7509--B                         77

 A STANDARD UNPROTECTED SINGLE WALL OIL STORAGE TANK LISTED TO U.L. 80 IS
 NOT PERMITTED AS A REPLACEMENT TANK AND WILL NOT BE ELIGIBLE FOR THE TAX
 CREDIT PROVIDED HEREIN.
   § 2. The office of temporary and disability assistance shall develop a
 program utilizing the heating energy assistance program (HEAP) to assist
 eligible  households  to  remove/permanently  close and replace existing
 fuel oil storage tanks and to promulgate such regulations and apply  for
 such permissions and waivers from the United States government as may be
 necessary  to  do  so. To qualify for assistance, a replacement fuel oil
 storage tank must be installed and shall be of a design as specified  in
 paragraph (5) of subsection (p-1) of section 606 of the tax law.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2019.
 
                                 PART LLL
 
   Section 1.  Subdivision 1 of section 190 of the tax law, as amended by
 section  102  of part A of chapter 59 of the laws of 2014, is amended to
 read as follows:
   1. General. A taxpayer shall be  allowed  a  credit  against  the  tax
 imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT-
 AGES  of  the  premium  paid  during the taxable year for long-term care
 insurance OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSU-
 ANT TO SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF  SUBSECTION
 (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
   (A)  FORTY  PERCENT  IF THE INSURED IS LESS THAN FORTY YEARS OF AGE AT
 THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
   (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT
 FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR  THE  FIRST
 FOUR POLICY YEARS;
   (C)  TWENTY-FIVE  PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS
 OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR
 THE FIRST FOUR POLICY YEARS; OR
   (D)  TWENTY  PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE
 AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO  HAVE  HAD  A
 POLICY FOR FIVE YEARS OR MORE.
   In  order  to  qualify for such credit, the taxpayer's premium payment
 must be for the purchase of or for continuing coverage under a long-term
 care insurance policy that qualifies for such credit pursuant to section
 one thousand one hundred seventeen of the insurance law.
   § 2. Paragraph (a) of subdivision 14 of section 210-B of the tax  law,
 as  added  by section 17 of part A of chapter 59 of the laws of 2014, is
 amended to read as follows:
   (a) General. A taxpayer shall be allowed  a  credit  against  the  tax
 imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT-
 AGES  of  the  premium  paid  during the taxable year for long-term care
 insurance OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSU-
 ANT TO SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF  SUBSECTION
 (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
   (I)  FORTY  PERCENT  IF THE INSURED IS LESS THAN FORTY YEARS OF AGE AT
 THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
   (II) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY  YEARS  OF  AGE,
 BUT FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR THE FIRST
 FOUR POLICY YEARS;

 S. 7509--B                         78
 
   (III) TWENTY-FIVE PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS
 OF  AGE,  BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX YEAR FOR
 THE FIRST FOUR POLICY YEARS; OR
   (IV)  TWENTY PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE
 AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO  HAVE  HAD  A
 POLICY FOR FIVE YEARS OR MORE.
   In  order  to  qualify for such credit, the taxpayer's premium payment
 must be for the purchase of or for continuing coverage under a long-term
 care insurance policy that qualifies for such credit pursuant to section
 one thousand one hundred seventeen of the insurance law.
   § 3. Paragraph 1 of subsection (aa) of section 606 of the tax law,  as
 amended  by  section  1  of part P of chapter 61 of the laws of 2005, is
 amended to read as follows:
   (1) Residents. A taxpayer shall be allowed a credit  against  the  tax
 imposed by this article equal to [twenty percent] THE FOLLOWING PERCENT-
 AGES  of  the  premium  paid  during the taxable year for long-term care
 insurance OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED PURSU-
 ANT TO SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF  SUBSECTION
 (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
   (A)  FORTY  PERCENT  IF THE INSURED IS LESS THAN FORTY YEARS OF AGE AT
 THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
   (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT
 FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR  THE  FIRST
 FOUR POLICY YEARS;
   (C)  TWENTY-FIVE  PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS
 OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR
 THE FIRST FOUR POLICY YEARS; OR
   (D)  TWENTY  PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE
 AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO  HAVE  HAD  A
 POLICY FOR FIVE YEARS OR MORE.
   In  order  to  qualify for such credit, the taxpayer's premium payment
 must be for the purchase of or for continuing coverage under a long-term
 care insurance policy that qualifies for such credit pursuant to section
 one thousand one hundred seventeen of the insurance law. If  the  amount
 of the credit allowable under this subsection for any taxable year shall
 exceed  the taxpayer's tax for such year, the excess may be carried over
 to the following year or years and may be deducted from  the  taxpayer's
 tax for such year or years.
   § 4. Paragraph 1 of subdivision (m) of section 1511 of the tax law, as
 amended  by  section  21 of part B of chapter 58 of the laws of 2004, is
 amended to read as follows:
   (1) A taxpayer shall be allowed a credit against the  tax  imposed  by
 this  article equal to [twenty percent] THE FOLLOWING PERCENTAGES of the
 premium paid during the taxable year for long-term care insurance OR FOR
 A POLICY RIDER TO A LIFE INSURANCE POLICY ISSUED  PURSUANT  TO  SUBPARA-
 GRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION
 ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW:
   (A)  FORTY  PERCENT  IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE AT
 THE END OF THE TAX YEAR FOR THE FIRST FOUR POLICY YEARS;
   (B) THIRTY PERCENT IF THE INSURED IS LESS THAN FIFTY YEARS OF AGE, BUT
 FORTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR  THE  FIRST
 FOUR POLICY YEARS;
   (C)  TWENTY-FIVE  PERCENT IF THE INSURED IS LESS THAN FIFTY-FIVE YEARS
 OF AGE, BUT FIFTY OR MORE YEARS OF AGE, AT THE END OF THE TAX  YEAR  FOR
 THE FIRST FOUR POLICY YEARS; OR

 S. 7509--B                         79
 
   (D)  TWENTY  PERCENT IF THE INSURED IS FIFTY-FIVE OR MORE YEARS OF AGE
 AT THE END OF THE TAX YEAR, AND FOR ALL OTHER INSUREDS WHO  HAVE  HAD  A
 POLICY FOR FIVE YEARS OR MORE.
   In  order  to  qualify for such credit, the taxpayer's premium payment
 must be for the purchase of or for continuing coverage under a long-term
 care insurance policy that qualifies for such credit pursuant to section
 one thousand one hundred seventeen of the insurance law.
   § 5. Paragraphs 1 and 2 of subsection  (g)  of  section  1117  of  the
 insurance  law,  paragraph  1  as  amended by chapter 417 of the laws of
 2001, paragraph 2 as amended by section 12 of part E of  chapter  63  of
 the laws of 2000 and subparagraphs (A) and (B) of paragraph 2 as amended
 by chapter 311 of the laws of 2002, are amended to read as follows:
   (1)  Except for certain group contracts described in paragraph four of
 this subsection, in order for premium payments for long-term care insur-
 ance, OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY  ISSUED  PURSUANT
 TO  SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION (A)
 OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS ARTICLE, to qualify
 for purposes of section one hundred ninety, subdivision  [twenty-five-a]
 FOURTEEN  of section two hundred [ten] TEN-B, subsection (aa) of section
 six hundred six[, subsection (k) of section one  thousand  four  hundred
 fifty-six] and subsection (m) of section one thousand five hundred elev-
 en  of  the  tax  law, the long-term care insurance OR SUCH POLICY RIDER
 must be approved by the  superintendent  pursuant  to  this  subsection.
 Prior  to  approving any such insurance OR POLICY RIDER, the superinten-
 dent shall conclude that it meets minimum standards,  including  minimum
 loss  ratio  standards  under this section or section three thousand two
 hundred twenty-nine of this chapter and is a  qualified  long-term  care
 insurance  contract  as defined in section 7702B of the internal revenue
 code.
   (2) (A) No insurer, agent, broker,  person,  business  or  corporation
 doing  business  in or into this state shall in any manner state, adver-
 tise or claim that a long-term care insurance policy, OR A POLICY  RIDER
 TO  A  LIFE  INSURANCE  POLICY ISSUED PURSUANT TO SUBPARAGRAPH (C), (D),
 (E), OR (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION  ONE  THOUSAND
 ONE  HUNDRED  THIRTEEN  OF  THIS  ARTICLE, qualifies for purposes of the
 above-referenced provisions of the tax law unless either: (i) the super-
 intendent has issued a letter or other written instrument to the insurer
 stating that the policy OR POLICY RIDER has been determined  to  qualify
 under  this  subsection,  or  (ii)  the policy OR POLICY RIDER qualifies
 under paragraph four of this subsection without the need for approval by
 the superintendent.
   (B) Any policy OR POLICY RIDER which is held out or purported to be  a
 long-term  care  insurance policy by any insurer, agent, broker, person,
 business or corporation doing business in or into this state  which  has
 not  been determined by the superintendent to qualify and which does not
 qualify under paragraph four of this  subsection  for  purposes  of  the
 above referenced provisions of the tax law shall so state clearly, legi-
 bly  and in close physical proximity to any description of the policy OR
 POLICY RIDER as a long-term care insurance policy that it  does  not  so
 qualify.  This  subsection  shall also be deemed to cover any statement,
 advertisement or claim concerning such policy  by  any  insurer,  agent,
 broker,  person,  business or corporation doing business in or into this
 state.
   (C) Violation of this paragraph shall  be  considered  a  misrepresen-
 tation  under section [twenty-one] TWO THOUSAND ONE hundred twenty-three
 of this chapter.

 S. 7509--B                         80
 
   § 6. This act shall take effect immediately and  shall  apply  to  tax
 years beginning  on or after January 1, 2019.
 
                                 PART MMM
 
   Section  1.  The tax law is amended by adding a new section 44 to read
 as follows:
   § 44. NEW YORK AGRICULTURE AND RURAL JOBS CREDIT. (A) DEFINITIONS. FOR
 THE PURPOSE OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   (1) "AFFILIATE" MEANS A PERSON THAT DIRECTLY,  OR  INDIRECTLY  THROUGH
 ONE  OR  MORE  INTERMEDIARIES,  CONTROLS,  IS CONTROLLED BY, OR IS UNDER
 COMMON CONTROL WITH ANOTHER PERSON. FOR THE PURPOSES OF THIS DIVISION, A
 PERSON IS "CONTROLLED BY"  ANOTHER  PERSON  IF  THE  CONTROLLING  PERSON
 HOLDS, DIRECTLY OR INDIRECTLY, THE MAJORITY VOTING OR OWNERSHIP INTEREST
 IN  THE  CONTROLLED PERSON OR HAS CONTROL OVER THE DAY-TO-DAY OPERATIONS
 OF THE CONTROLLED PERSON BY CONTRACT OR BY LAW.
   (2) "CLOSING DATE" MEANS THE DATE ON WHICH  A  RURAL  BUSINESS  GROWTH
 FUND HAS COLLECTED ALL OF THE AMOUNTS SPECIFIED BY SUBPARAGRAPHS (A) AND
 (B) OF PARAGRAPH SEVEN OF SUBDIVISION (B) OF THIS SECTION.
   (3) "CREDIT-ELIGIBLE CAPITAL CONTRIBUTION" MEANS AN INVESTMENT OF CASH
 BY A PERSON IN A RURAL BUSINESS GROWTH FUND THAT EQUALS THE AMOUNT SPEC-
 IFIED ON A TAX CREDIT CERTIFICATE ISSUED BY THE DEPARTMENT UNDER SUBPAR-
 AGRAPH  (B)  OF  PARAGRAPH  SIX OF SUBDIVISION (B) OF THIS SECTION.  THE
 INVESTMENT SHALL PURCHASE AN  EQUITY  INTEREST  IN  THE  RURAL  BUSINESS
 GROWTH  FUND  OR  PURCHASE,  AT  PAR VALUE OR PREMIUM, A DEBT INSTRUMENT
 ISSUED BY THE RURAL GROWTH FUND THAT MEETS ALL OF THE  FOLLOWING  CRITE-
 RIA:
   (A) THE DEBT INSTRUMENT HAS AN ORIGINAL MATURITY DATE OF AT LEAST FIVE
 YEARS AFTER THE DATE OF ISSUANCE.
   (B)  THE  DEBT  INSTRUMENT HAS A REPAYMENT SCHEDULE THAT IS NOT FASTER
 THAN A LEVEL PRINCIPAL AMORTIZATION OVER FIVE YEARS.
   (C) THE DEBT INSTRUMENT HAS  NO  INTEREST,  DISTRIBUTION,  OR  PAYMENT
 FEATURES  DEPENDENT ON THE RURAL BUSINESS GROWTH FUND'S PROFITABILITY OR
 THE SUCCESS OF THE RURAL GROWTH INVESTMENTS.
   (4) "ELIGIBLE INVESTMENT AUTHORITY" MEANS THE  AMOUNT  STATED  ON  THE
 NOTICE ISSUED UNDER SUBPARAGRAPH (A) OF PARAGRAPH SIX OF SUBDIVISION (B)
 OF  THIS  SECTION  CERTIFYING  THE  RURAL BUSINESS GROWTH FUND. AT LEAST
 SIXTY-FIVE PERCENT OF A RURAL BUSINESS GROWTH FUND'S ELIGIBLE INVESTMENT
 AUTHORITY SHALL BE COMPRISED OF CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS.
   (5) A BUSINESS'S "PRINCIPAL BUSINESS OPERATIONS" ARE IN THIS STATE  IF
 AT  LEAST  EIGHTY  PERCENT  OF  THE  BUSINESS'S EMPLOYEES RESIDE IN THIS
 STATE, THE INDIVIDUALS WHO RECEIVE  EIGHTY  PERCENT  OF  THE  BUSINESS'S
 PAYROLL  RESIDE  IN  THIS  STATE,  OR THE BUSINESS HAS AGREED TO USE THE
 PROCEEDS OF A RURAL  GROWTH  INVESTMENT  TO  RELOCATE  AT  LEAST  EIGHTY
 PERCENT OF ITS EMPLOYEES TO THIS STATE OR PAY AT LEAST EIGHTY PERCENT OF
 ITS PAYROLL TO INDIVIDUALS RESIDING IN THIS STATE.
   (6) "RURAL AREA" MEANS EITHER OF THE FOLLOWING:
   (A)  AN  AREA OF THE STATE NOT IN A CITY OR TOWN THAT HAS A POPULATION
 OF MORE THAN FIFTY THOUSAND INHABITANTS ACCORDING TO THE LATEST DECENNI-
 AL CENSUS OF THE UNITED STATES OR IN THE URBANIZED AREA  CONTIGUOUS  AND
 ADJACENT  TO  A  CITY  OR  TOWN THAT HAS A POPULATION OF MORE THAN FIFTY
 THOUSAND INHABITANTS; OR
   (B) ANY AREA DETERMINED TO BE "RURAL IN CHARACTER" BY THE UNDER-SECRE-
 TARY OF AGRICULTURE FOR  RURAL  DEVELOPMENT  WITHIN  THE  UNITED  STATES
 DEPARTMENT OF AGRICULTURE.

 S. 7509--B                         81
 
   (7)  "RURAL  BUSINESS CONCERN" MEANS AN OPERATING COMPANY THAT, AT THE
 TIME IF THE INITIAL INVESTMENT IN THE COMPANY BY A RURAL BUSINESS GROWTH
 FUND, HAS ITS PRINCIPAL BUSINESS OPERATIONS IN  THIS  STATE,  HAS  FEWER
 THAN  TWO  HUNDRED  FIFTY  EMPLOYEES  OR  NOT  MORE THAN FIFTEEN MILLION
 DOLLARS  IN  NET INCOME FOR THE PRECEDING TAXABLE YEAR, AND MEETS EITHER
 OF THE FOLLOWING CRITERIA:
   (A) THE BUSINESS'S PRINCIPAL BUSINESS  OPERATIONS  ARE  LOCATED  IN  A
 RURAL AREA; OR
   (B)  THE  BUSINESS PRODUCES OR PROVIDES ANY GOODS OR SERVICES NORMALLY
 USED BY FARMERS,  RANCHERS,  OR  PRODUCERS  AND  HARVESTERS  OF  AQUATIC
 PRODUCTS  IN  THEIR  BUSINESS  OPERATIONS,  OR TO IMPROVE THE WELFARE OR
 LIVELIHOOD OF SUCH PERSONS, OR IS INVOLVED IN THE PROCESSING AND MARKET-
 ING OF AGRICULTURAL PRODUCTS, FARM SUPPLY, AND INPUT SUPPLIERS.  FOR THE
 PURPOSES OF THIS SECTION, "NET  INCOME"  MEANS  FEDERAL  ADJUSTED  GROSS
 INCOME  AS  REQUIRED TO BE REPORTED UNDER THE INTERNAL REVENUE CODE LESS
 FEDERAL AND STATE TAXES IMPOSED ON OR MEASURED BY INCOME.  ANY  BUSINESS
 WHICH  IS  CLASSIFIED  AS  A  RURAL  BUSINESS CONCERN AT THE TIME OF THE
 INITIAL INVESTMENT IN SAID BUSINESS BY  A  RURAL  BUSINESS  GROWTH  FUND
 SHALL  REMAIN  CLASSIFIED  AS  A  RURAL BUSINESS CONCERN AND MAY RECEIVE
 FOLLOW-ON INVESTMENTS FROM ANY RURAL  BUSINESS  GROWTH  FUND,  AND  SUCH
 FOLLOW-ON INVESTMENTS SHALL BE RURAL GROWTH INVESTMENTS EVEN THOUGH SUCH
 BUSINESS  MAY NOT MEET THE DEFINITION OF A RURAL BUSINESS CONCERN AT THE
 TIME OF SUCH FOLLOW-ON INVESTMENTS.
   (8) "RURAL BUSINESS GROWTH FUND" MEANS  AN  ENTITY  CERTIFIED  BY  THE
 DEPARTMENT UNDER THIS SECTION.
   (9)  "RURAL  GROWTH INVESTMENT" MEANS ANY CAPITAL OR EQUITY INVESTMENT
 IN A RURAL BUSINESS CONCERN OR ANY LOAN TO A RURAL BUSINESS CONCERN WITH
 A TERM OF AT LEAST ONE YEAR.
   (10) "TAXABLE YEAR" WHEN USED IN REFERENCE  TO  AN  INSURANCE  COMPANY
 MEANS  THE CALENDAR YEAR ENDING ON THE THIRTY-FIRST DAY OF DECEMBER NEXT
 PRECEDING THE DAY THE ANNUAL REPORT IS REQUIRED  TO  BE  RETURNED  UNDER
 SUBDIVISION (D) OF THIS SECTION.
   (B)  CERTIFICATION.  (1) ON AND AFTER AUGUST FIRST, TWO THOUSAND EIGH-
 TEEN, AN APPLICANT THAT HAS DEVELOPED A BUSINESS PLAN TO INVEST IN RURAL
 BUSINESS CONCERNS IN THIS STATE AND HAS SUCCESSFULLY  SOLICITED  PRIVATE
 INVESTORS TO MAKE CAPITAL CONTRIBUTIONS IN SUPPORT OF THE PLAN MAY APPLY
 TO THE DEPARTMENT FOR CERTIFICATION AS A RURAL BUSINESS GROWTH FUND. THE
 APPLICATION SHALL INCLUDE ALL OF THE FOLLOWING:
   (A)  THE  TOTAL  ELIGIBLE INVESTMENT AUTHORITY SOUGHT BY THE APPLICANT
 UNDER THE BUSINESS PLAN;
   (B) DOCUMENTS AND OTHER EVIDENCE SUFFICIENT TO PROVE, TO THE SATISFAC-
 TION OF THE DEPARTMENT, THAT THE APPLICANT MEETS ALL  OF  THE  FOLLOWING
 CRITERIA: (I) THE APPLICANT OR AN AFFILIATE OF THE APPLICANT IS LICENSED
 AS  A  RURAL  BUSINESS INVESTMENT COMPANY UNDER 7 U.S.C. 2009CC, OR AS A
 SMALL BUSINESS INVESTMENT COMPANY UNDER 15 U.S.C. 681.
   (II) AS OF THE DATE THE APPLICATION IS SUBMITTED,  THE  APPLICANT  HAS
 INVESTED  MORE  THAN ONE HUNDRED MILLION DOLLARS IN OPERATING COMPANIES,
 INCLUDING AT LEAST FIFTY MILLION DOLLARS IN OPERATING COMPANIES  LOCATED
 IN RURAL AREAS. IN COMPUTING INVESTMENTS UNDER THIS DIVISION, THE APPLI-
 CANT MAY INCLUDE INVESTMENTS MADE BY AFFILIATES OF THE APPLICANT.
   (C) AN ESTIMATE OF THE NUMBER OF JOBS THAT WILL BE CREATED OR RETAINED
 IN THIS STATE AS A RESULT OF THE APPLICANT'S RURAL GROWTH INVESTMENTS;
   (D)  A  REVENUE  IMPACT  ASSESSMENT FOR THE APPLICANT'S PROPOSED RURAL
 GROWTH INVESTMENTS PREPARED BY A NATIONALLY RECOGNIZED THIRD-PARTY INDE-
 PENDENT ECONOMIC FORECASTING FIRM USING A DYNAMIC  ECONOMIC  FORECASTING
 MODEL.    THE  REVENUE  IMPACT  ASSESSMENT SHALL ANALYZE THE APPLICANT'S

 S. 7509--B                         82
 
 BUSINESS PLAN OVER THE TEN YEARS FOLLOWING THE DATE THE  APPLICATION  IS
 SUBMITTED TO THE DEPARTMENT.
   (E)  A  SIGNED  AFFIDAVIT FROM EACH INVESTOR SUCCESSFULLY SOLICITED BY
 THE APPLICANT TO MAKE A CREDIT ELIGIBLE CAPITAL CONTRIBUTION IN  SUPPORT
 OF  THE  BUSINESS  PLAN. EACH AFFIDAVIT SHALL INCLUDE INFORMATION SUFFI-
 CIENT FOR THE TAX COMMISSIONER TO IDENTIFY THE INVESTOR AND SHALL  STATE
 THE AMOUNT OF THE INVESTOR'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION.
   (F) A NONREFUNDABLE APPLICATION FEE OF FIVE THOUSAND DOLLARS.
   (2)  THE DEPARTMENT SHALL REVIEW AND MAKE A DETERMINATION WITH RESPECT
 TO EACH APPLICATION SUBMITTED UNDER PARAGRAPH ONE  OF  THIS  SUBDIVISION
 WITHIN  THIRTY  DAYS  OF  RECEIPT.  THE DEPARTMENT SHALL REVIEW AND MAKE
 DETERMINATIONS ON THE APPLICATIONS IN THE ORDER IN  WHICH  THE  APPLICA-
 TIONS  ARE  RECEIVED  BY  THE  DEPARTMENT.  APPLICATIONS RECEIVED BY THE
 DEPARTMENT ON THE SAME DAY SHALL BE DEEMED TO HAVE BEEN RECEIVED  SIMUL-
 TANEOUSLY.  EXCEPT  AS  PROVIDED IN PARAGRAPH FOUR OF SUBDIVISION (C) OF
 THIS SECTION, THE DEPARTMENT SHALL NOT APPROVE  MORE  THAN  ONE  HUNDRED
 MILLION DOLLARS IN ELIGIBLE INVESTMENT AUTHORITY OR MORE THAN SIXTY-FIVE
 MILLION DOLLARS IN CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS.
   (3)  THE  DEPARTMENT  SHALL  DENY  AN APPLICATION SUBMITTED UNDER THIS
 SECTION IF ANY OF THE FOLLOWING ARE TRUE: (A) THE APPLICATION IS  INCOM-
 PLETE.
   (B) THE APPLICATION FEE IS NOT PAID IN FULL.
   (C)  THE  APPLICANT  DOES  NOT  SATISFY  ALL THE CRITERIA DESCRIBED IN
 SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBDIVISION.
   (D) THE REVENUE IMPACT ASSESSMENT SUBMITTED UNDER SUBPARAGRAPH (D)  OF
 PARAGRAPH  ONE  OF THIS SUBDIVISION DOES NOT DEMONSTRATE THAT THE APPLI-
 CANT'S BUSINESS PLAN WILL RESULT IN A POSITIVE ECONOMIC IMPACT  ON  THIS
 STATE  OVER  A  TEN-YEAR  PERIOD  THAT  EXCEEDS  THE ELIGIBLE INVESTMENT
 AUTHORITY SOUGHT BY THE APPLICANT.
   (E) THE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS DESCRIBED IN  AFFIDAVITS
 SUBMITTED UNDER SUBPARAGRAPH (E) OF PARAGRAPH ONE OF THIS SUBDIVISION DO
 NOT  EQUAL SIXTY-FIVE PERCENT OF THE TOTAL AMOUNT OF ELIGIBLE INVESTMENT
 AUTHORITY SOUGHT UNDER THE APPLICANT'S BUSINESS PLAN.
   (F) THE DEPARTMENT HAS ALREADY APPROVED THE MAXIMUM AMOUNT OF ELIGIBLE
 INVESTMENT AUTHORITY AND CREDIT-ELIGIBLE CAPITAL  CONTRIBUTIONS  ALLOWED
 UNDER PARAGRAPH TWO OF THIS SUBDIVISION.
   (4)  IF  THE DEPARTMENT DENIES AN APPLICATION UNDER PARAGRAPH THREE OF
 THIS SUBDIVISION, THE DEPARTMENT SHALL SEND NOTICE OF ITS  DETERMINATION
 OF THE APPLICANT. THE NOTICE SHALL INCLUDE THE REASONS THAT THE APPLICA-
 TION WAS DENIED. IF THE APPLICATION WAS DENIED FOR ANY REASON OTHER THAN
 THE  REASON  SPECIFIED  IN  SUBPARAGRAPH  (F) OF PARAGRAPH THREE OF THIS
 SUBDIVISION, THE APPLICANT MAY PROVIDE  ADDITIONAL  INFORMATION  TO  THE
 DEPARTMENT  TO  COMPLETE,  CLARIFY,  OR CURE DEFECTS IN THE APPLICATION.
 THE ADDITIONAL INFORMATION MUST BE SUBMITTED WITHIN  THIRTY  DAYS  AFTER
 THE  DATE THE NOTICE OF DENIAL WAS SENT BY THE DEPARTMENT. IF THE PERSON
 OR ENTITY SUBMITS ADDITIONAL INFORMATION WITHIN THIRTY DAYS, THE DEPART-
 MENT SHALL RECONSIDER THE APPLICATION WITHIN THIRTY DAYS AFTER RECEIVING
 SUCH ADDITIONAL INFORMATION. IF AFTER SUBMISSION OF ADDITIONAL  INFORMA-
 TION,  THE DEPARTMENT APPROVES THE APPLICATION, THEN THE SUBMISSION DATE
 SHALL BE THE DATE OF THE ORIGINAL SUBMISSION OF THE APPLICATION. IF  THE
 PERSON  OR  ENTITY  DOES NOT SUBMIT ADDITIONAL INFORMATION WITHIN THIRTY
 DAYS AFTER THE NOTICE OF DENIAL WAS SENT, THE APPLICANT MAY SUBMIT A NEW
 APPLICATION WITH A NEW SUBMISSION DATE AT ANY TIME.
   (5) OF APPROVING MULTIPLE SIMULTANEOUSLY SUBMITTED APPLICATIONS  WOULD
 RESULT  IN EXCEEDING THE OVERALL ELIGIBLE INVESTMENT LIMIT PRESCRIBED BY
 PARAGRAPH TWO OF THIS SUBDIVISION, THE DEPARTMENT  SHALL  PROPORTIONALLY

 S. 7509--B                         83
 
 REDUCE THE ELIGIBLE INVESTMENT AUTHORITY AND THE CREDIT-ELIGIBLE CAPITAL
 CONTRIBUTIONS  FOR  EACH  APPROVED  APPLICATION  AS  NECESSARY  TO AVOID
 EXCEEDING THE LIMIT.
   (6)  THE DEPARTMENT SHALL NOT DENY A RURAL BUSINESS GROWTH FUND APPLI-
 CATION OR REDUCE THE REQUESTED ELIGIBLE INVESTMENT AUTHORITY FOR REASONS
 OTHER THAN THOSE DESCRIBED IN PARAGRAPHS THREE AND FIVE OF THIS SUBDIVI-
 SION. IF THE DEPARTMENT APPROVES SUCH APPLICATION, THE DEPARTMENT  SHALL
 ISSUE  ALL  OF  THE  FOLLOWING  NOTICES: (A) TO THE APPLICANT, A WRITTEN
 NOTICE CERTIFYING THAT THE  APPLICANT  QUALIFIES  AS  A  RURAL  BUSINESS
 GROWTH  FUND  AND  SPECIFYING  THE  AMOUNT  OF  THE APPLICANT'S ELIGIBLE
 INVESTMENT AUTHORITY; (B) TO EACH INVESTOR WHOSE AFFIDAVIT WAS  INCLUDED
 IN  THE  APPLICATION,  A TAX CREDIT CERTIFICATE SPECIFYING THE AMOUNT OF
 THE INVESTOR'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION; (C) TO THE  COMMIS-
 SIONER,  A COPY OF EACH TAX CREDIT CERTIFICATE ISSUED UNDER SUBPARAGRAPH
 (B) OF THIS PARAGRAPH.
   (7) A RURAL BUSINESS GROWTH FUND SHALL COMPLETE ALL OF  THE  FOLLOWING
 WITHIN  SIXTY  DAYS OF RECEIVING THE CERTIFICATION ISSUED UNDER SUBPARA-
 GRAPH (A) OF PARAGRAPH SIX OF THIS SUBDIVISION:
   (A) COLLECT THE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS FROM EACH INVES-
 TOR ISSUED A TAX CREDIT CERTIFICATE UNDER SUBPARAGRAPH (B) OF  PARAGRAPH
 SIX OF THIS SUBDIVISION;
   (B)  COLLECT  ONE OR MORE INVESTMENTS OF CASH, WHICH SHALL PURCHASE AN
 EQUITY INTEREST IN THE RURAL GROWTH FUND OR A DEBT INSTRUMENT ISSUED  BY
 THE  RURAL  GROWTH FUND AT PAR VALUE OR PREMIUM, WITH A MATURITY DATE OF
 AT LEAST FIVE YEARS FROM THE  CLOSING  DATE  THAT,  WHEN  ADDED  TO  THE
 CONTRIBUTIONS  COLLECTED UNDER SUBPARAGRAPH (A) OF THIS PARAGRAPH, EQUAL
 THE FUND'S ELIGIBLE INVESTMENT AUTHORITY. AT LEAST TEN  PERCENT  OF  THE
 FUND'S  ELIGIBLE  INVESTMENT  AUTHORITY  SHALL  BE  COMPRISED  OF EQUITY
 INVESTMENTS CONTRIBUTED BY AFFILIATES OF THE RURAL BUSINESS GROWTH FUND,
 INCLUDING EMPLOYEES, OFFICERS, AND DIRECTORS OF SUCH AFFILIATES.
   (C) SEND TO THE DEPARTMENT DOCUMENTATION SUFFICIENT TO PROVE THAT  THE
 AMOUNTS  DESCRIBED  IN  SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH HAVE
 BEEN COLLECTED. IF THE RURAL BUSINESS GROWTH FUND FAILS TO FULLY  COMPLY
 WITH THIS PARAGRAPH, THE FUND'S CERTIFICATION SHALL LAPSE.
   (8)  ELIGIBLE  INVESTMENT  AUTHORITY AND CORRESPONDING CREDIT-ELIGIBLE
 CAPITAL CONTRIBUTIONS THAT LAPSE UNDER PARAGRAPH SEVEN OF THIS  SUBDIVI-
 SION  DO  NOT COUNT TOWARD LIMITS ON TOTAL ELIGIBLE INVESTMENT AUTHORITY
 AND CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS PRESCRIBED IN PARAGRAPH TWO OF
 THIS SUBDIVISION. ONCE ELIGIBLE INVESTMENT  AUTHORITY  HAS  LAPSED,  THE
 DEPARTMENT  SHALL  FIRST  AWARD  LAPSED AUTHORITY PRO RATA TO EACH RURAL
 BUSINESS GROWTH FUND THAT WAS AWARDED LESS THAN THE  REQUESTED  ELIGIBLE
 INVESTMENT  AUTHORITY  UNDER  PARAGRAPH  FIVE  OF  THIS SUBDIVISION. ANY
 REMAINING ELIGIBLE INVESTMENT AUTHORITY MAY BE AWARDED BY THE DEPARTMENT
 TO NEW APPLICANTS.
   (9) APPLICATION FEES SUBMITTED TO THE DEPARTMENT PURSUANT TO  SUBPARA-
 GRAPH  (F) OF PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE CREDITED TO THE
 NEW YORK AGRICULTURE AND RURAL JOBS FUND,  CREATED  IN  SECTION  NINETY-
 NINE-BB OF THE STATE FINANCE LAW.
   (C) REVOCATION OF CERTIFICATION. (1) THE DEPARTMENT SHALL REVOKE A TAX
 CREDIT  CERTIFICATE  ISSUED UNDER SUBDIVISION (B) OF THIS SECTION IF ANY
 OF THE FOLLOWING OCCUR WITH RESPECT TO  A  RURAL  BUSINESS  GROWTH  FUND
 BEFORE  THE FUND EXITS THE PROGRAM UNDER PARAGRAPH FIVE OF THIS SUBDIVI-
 SION.
   (A) THE RURAL BUSINESS GROWTH FUND IN WHICH THE CREDIT-ELIGIBLE  CAPI-
 TAL  CONTRIBUTION WAS MADE DOES NOT INVEST SIXTY PERCENT OF ITS ELIGIBLE
 INVESTMENT AUTHORITY IN RURAL GROWTH INVESTMENTS IN  THIS  STATE  WITHIN

 S. 7509--B                         84
 
 TWO  YEARS  OF  THE CLOSING DATE AND ONE HUNDRED PERCENT OF ITS ELIGIBLE
 INVESTMENT AUTHORITY IN RURAL GROWTH INVESTMENTS IN  THIS  STATE  WITHIN
 THREE YEARS OF THE CLOSING DATE.
   (B)  AFTER  INVESTING  ONE  HUNDRED PERCENT OF ITS ELIGIBLE INVESTMENT
 AUTHORITY IN RURAL GROWTH INVESTMENTS IN THIS STATE, THE RURAL  BUSINESS
 GROWTH  FUND  FAILS TO MAINTAIN THAT INVESTMENT UNTIL THE FIFTH ANNIVER-
 SARY OF THE CLOSING DATE, INCLUDING THE REINVESTMENT OF SUCH INVESTMENT.
 FOR THE PURPOSES OF THIS SECTION, AN INVESTMENT IS "MAINTAINED" EVEN  IF
 THE  INVESTMENT  IS  SOLD OR REPAID SO LONG AS THE RURAL BUSINESS GROWTH
 FUND REINVESTS AN AMOUNT EQUAL TO THE CAPITAL RETURNED OR  RECOVERED  BY
 THE  FUND  FROM  THE ORIGINAL INVESTMENT, EXCLUSIVE OF ANY PROFITS REAL-
 IZED, IN OTHER RURAL GROWTH INVESTMENTS  IN  THIS  STATE  WITHIN  TWELVE
 MONTHS OF THE RECEIPT OF SUCH CAPITAL.  AMOUNTS RECEIVED PERIODICALLY BY
 A RURAL BUSINESS GROWTH FUND SHALL BE TREATED AS CONTINUALLY INVESTED IN
 RURAL  GROWTH  INVESTMENTS  IF THE AMOUNTS ARE REINVESTED IN ONE OR MORE
 RURAL GROWTH INVESTMENTS BY THE END OF THE FOLLOWING  CALENDAR  YEAR.  A
 RURAL  BUSINESS GROWTH FUND IS NOT REQUIRED TO REINVEST CAPITAL RETURNED
 FROM RURAL GROWTH INVESTMENTS IN THE SIX  MONTHS  IMMEDIATELY  PRECEDING
 THE FIFTH ANNIVERSARY OF THE CLOSING DATE, AND SUCH RURAL GROWTH INVEST-
 MENTS  SHALL  BE  CONSIDERED  HELD CONTINUOUSLY BY THE RURAL GROWTH FUND
 THROUGH THE FIFTH ANNIVERSARY OF THE CLOSING DATE.
   (C) THE RURAL BUSINESS GROWTH FUND INVESTS MORE THAN  THE  GREATER  OF
 SEVEN  MILLION  FIVE  HUNDRED  THOUSAND DOLLARS OR TWENTY PERCENT OF ITS
 ELIGIBLE INVESTMENT  AUTHORITY  IN  THE  SAME  RURAL  BUSINESS  CONCERN,
 INCLUDING  AMOUNTS  INVESTED IN AFFILIATES OF THE RURAL BUSINESS CONCERN
 BUT EXCLUDING AMOUNTS REINVESTED IN THE RURAL BUSINESS GROWTH FUND  WITH
 REPAID  OR  REDEEMED  RURAL  BUSINESS  GROWTH INVESTMENTS, PROVIDED SUCH
 REINVESTMENTS SHALL NOT COUNT TOWARDS THE  REQUIREMENT  OF  SUBPARAGRAPH
 (A) OF THIS PARAGRAPH.
   (D)  THE RURAL BUSINESS GROWTH FUND MAKES A RURAL GROWTH INVESTMENT IN
 A RURAL BUSINESS CONCERN THAT DIRECTLY OR INDIRECTLY THROUGH  AN  AFFIL-
 IATE  OWNS,  HAS THE RIGHT TO ACQUIRE AN OWNERSHIP INTEREST, MAKE A LOAN
 TO, OR MAKE AN INVESTMENT IN THE RURAL BUSINESS GROWTH FUND,  AN  AFFIL-
 IATE  OF  THE  RURAL  BUSINESS  GROWTH FUND, OR AN INVESTOR IN THE RURAL
 BUSINESS GROWTH FUND. THIS PARAGRAPH DOES NOT APPLY  TO  INVESTMENTS  IN
 PUBLICLY  TRADED  SECURITIES  BY A RURAL BUSINESS CONCERN OR AN OWNER OR
 AFFILIATE OF SUCH CONCERN.
   (2) BEFORE TAKING ACTION UNDER PARAGRAPH ONE OF THIS SUBDIVISION,  THE
 DEPARTMENT  SHALL  NOTIFY  THE RURAL BUSINESS GROWTH FUND OF THE REASONS
 FOR THE PENDING ACTION. IF THE RURAL BUSINESS GROWTH FUND  CORRECTS  THE
 VIOLATIONS,  OTHER  THAN VIOLATIONS OF SUBPARAGRAPH (D) OF PARAGRAPH ONE
 OF THIS SUBDIVISION, OUTLINED IN THE NOTICE TO THE SATISFACTION  OF  THE
 DEPARTMENT  WITHIN ONE HUNDRED EIGHTY DAYS OF THE DATE OF THE NOTICE WAS
 SENT, THE DEPARTMENT SHALL NOT REVOKE THE  TAX  CREDIT  CERTIFICATES  OR
 LEVY A FINE.
   (3) IF THE DEPARTMENT REVOKES A TAX CREDIT CERTIFICATE UNDER PARAGRAPH
 ONE  OF  THIS SUBDIVISION, THE COMMISSIONER SHALL MAKE AN ASSESSMENT FOR
 THE AMOUNT OF THE CREDIT CLAIMED BY THE CERTIFICATE  HOLDER  BEFORE  THE
 CERTIFICATE  WAS  REVOKED.  THE  COMMISSIONER  SHALL MAKE THE ASSESSMENT
 WITHIN ONE YEAR AFTER THE CERTIFICATE HAS BEEN REVOKED.
   (4) IF TAX CREDIT CERTIFICATES ARE REVOKED UNDER PARAGRAPH ONE OF THIS
 SUBDIVISION, THE ASSOCIATED ELIGIBLE INVESTMENT AUTHORITY AND CREDIT-EL-
 IGIBLE CAPITAL CONTRIBUTIONS DO NOT COUNT  TOWARD  THE  LIMIT  ON  TOTAL
 ELIGIBLE  INVESTMENT AUTHORITY AND CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS
 DESCRIBED BY PARAGRAPH TWO OF  SUBDIVISION  (B)  OF  THIS  SECTION.  THE
 DEPARTMENT  SHALL  FIRST AWARD REVERTED AUTHORITY PRO RATA TO EACH RURAL

 S. 7509--B                         85
 
 BUSINESS GROWTH FUND THAT WAS AWARDED LESS THAN THE  REQUESTED  ELIGIBLE
 INVESTMENT  AUTHORITY  UNDER  PARAGRAPH  FIVE OF SUBDIVISION (B) OF THIS
 SECTION. ANY REMAINING ELIGIBLE INVESTMENT AUTHORITY MAY BE  AWARDED  BY
 THE DEPARTMENT TO NEW APPLICANTS.
   (5) (A) ON OR AFTER THE FIFTH ANNIVERSARY OF THE CLOSING DATE, A RURAL
 BUSINESS GROWTH FUND THAT HAS NOT COMMITTED ANY OF THE ACTS DESCRIBED IN
 PARAGRAPH  ONE  OF  THIS SUBDIVISION MAY APPLY TO THE DEPARTMENT TO EXIT
 THE PROGRAM AS A RURAL BUSINESS GROWTH FUND AND NO LONGER BE SUBJECT  TO
 REGULATION  UNDER  THIS  SECTION.  THE  DEPARTMENT  SHALL RESPOND TO THE
 APPLICATION WITHIN THIRTY DAYS AFTER RECEIVING  SUCH  APPLICATION.    IN
 EVALUATING  SUCH  REQUEST  THE FACT THAT NO TAX CREDIT CERTIFICATES HAVE
 BEEN REVOKED WITH RESPECT TO THE RURAL BUSINESS  GROWTH  FUND  SHALL  BE
 SUFFICIENT  EVIDENCE  TO  PROVE  THAT  THE  FUND IS ELIGIBLE TO EXIT THE
 PROGRAM. THE DEPARTMENT  SHALL  NOT  UNREASONABLY  DENY  AN  APPLICATION
 SUBMITTED UNDER THIS SUBDIVISION.
   (B) THE DEPARTMENT SHALL SEND NOTICE OF ITS DETERMINATION WITH RESPECT
 TO  AN APPLICATION SUBMITTED UNDER SUBPARAGRAPH (A) OF THIS PARAGRAPH TO
 THE RURAL BUSINESS GROWTH FUND. IF THE APPLICATION IS DENIED, THE NOTICE
 SHALL INCLUDE THE REASONS FOR THE DETERMINATION.
   (C) THE DEPARTMENT SHALL NOT REVOKE A TAX CREDIT  CERTIFICATE  DUE  TO
 ANY  ACTIONS  OF  A RURAL BUSINESS GROWTH FUND THAT OCCUR AFTER THE DATE
 THE FUND'S APPLICATION FOR EXITING THE PROGRAM IS APPROVED UNDER SUBPAR-
 AGRAPH (A) OF THIS PARAGRAPH.
   (6) IF THE NUMBER OF JOBS CREATED OR RETAINED BY  THE  RURAL  BUSINESS
 CONCERN  THAT  RECEIVED RURAL GROWTH INVESTMENTS FROM THE RURAL BUSINESS
 GROWTH FUND IS:
   (A) LESS THAN SIXTY PERCENT OF THE NUMBER PROJECTED  IN  THE  APPROVED
 RURAL BUSINESS GROWTH FUND'S BUSINESS PLAN FILED AS PART OF ITS APPLICA-
 TION  FOR  CERTIFICATION UNDER SUBDIVISION (B) OF THIS SECTION, THEN THE
 STATE SHALL RECEIVE TWENTY PERCENT OF ANY DISTRIBUTION OR PAYMENT TO  AN
 EQUITY HOLDER IN AN APPROVED RURAL BUSINESS GROWTH FUND IN EXCESS OF THE
 SUM  OF THE AMOUNT OF EQUITY CAPITAL INVESTED IN THE FUND BY SUCH EQUITY
 HOLDER AND AN AMOUNT EQUAL TO ANY PROJECTED INCREASE IN THE EQUITY HOLD-
 ER'S FEDERAL OR STATE TAX LIABILITY, INCLUDING PENALTIES  AND  INTEREST,
 RELATED  TO  THE  EQUITY HOLDER'S OWNERSHIP, MANAGEMENT, OR OPERATION OF
 THE FUND; OR
   (B) GREATER THAN SIXTY PERCENT BUT LESS THAN  EIGHTY  PERCENT  OF  THE
 NUMBER  PROJECTED  IN THE APPROVED RURAL BUSINESS GROWTH FUND'S BUSINESS
 PLAN FILED AS PART OF ITS APPLICATION FOR CERTIFICATION  UNDER  SUBDIVI-
 SION  (B)  OF  THIS SECTION, THEN THE STATE SHALL RECEIVE TEN PERCENT OF
 ANY DISTRIBUTION OR PAYMENT TO AN EQUITY HOLDER  IN  AN  APPROVED  RURAL
 BUSINESS  GROWTH FUND IN EXCESS OF THE SUM OF THE AMOUNT OF EQUITY CAPI-
 TAL INVESTED IN THE FUND BY SUCH EQUITY HOLDER AND AN  AMOUNT  EQUAL  TO
 ANY  PROJECTED  INCREASE  IN  THE  EQUITY  HOLDER'S FEDERAL OR STATE TAX
 LIABILITY, INCLUDING PENALTIES AND INTEREST, RELATED TO THE EQUITY HOLD-
 ER'S OWNERSHIP, MANAGEMENT, OR OPERATION OF THE FUND.
   (7) A RURAL BUSINESS GROWTH FUND MAY, PRIOR TO MAKING A  RURAL  GROWTH
 INVESTMENT,  REQUEST  FROM  THE DEPARTMENT A WRITTEN DETERMINATION AS TO
 WHETHER THE BUSINESS ENTITY IN WHICH IT PROPOSES TO INVEST QUALIFIES  AS
 A RURAL BUSINESS CONCERN.
   (D) REPORTS. (1) EACH RURAL BUSINESS GROWTH FUND SHALL SUBMIT A REPORT
 TO  THE  DEPARTMENT ON OR BEFORE THE FIFTH BUSINESS DAY AFTER THE SECOND
 AND THIRD ANNIVERSARIES OF THE CLOSING DATE. THE  REPORT  SHALL  PROVIDE
 DOCUMENTATION AS TO THE RURAL GROWTH INVESTMENTS MADE BY THE RURAL BUSI-
 NESS GROWTH FUND.  SUCH DOCUMENTATION SHALL INCLUDE THE FOLLOWING:

 S. 7509--B                         86
 
   (A) A BANK STATEMENT OF THE RURAL BUSINESS GROWTH FUND DISPLAYING EACH
 RURAL GROWTH INVESTMENT;
   (B)  THE NAME AND LOCATION OF EACH RURAL BUSINESS CONCERN IN WHICH THE
 RURAL BUSINESS GROWTH FUND HAS MADE A RURAL GROWTH INVESTMENT, INCLUDING
 EVIDENCE THAT THE BUSINESS CONCERN WAS QUALIFIED AT THE TIME THE INVEST-
 MENT WAS MADE.
   (2) ON OR BEFORE THE LAST DAY OF FEBRUARY OF EACH YEAR  FOLLOWING  THE
 YEAR  IN  WHICH THE REPORT REQUIRED UNDER PARAGRAPH ONE OF THIS SUBDIVI-
 SION IS DUE, THE RURAL BUSINESS  GROWTH  FUND  SHALL  SUBMIT  AN  ANNUAL
 REPORT TO THE DEPARTMENT INCLUDING THE FOLLOWING:
   (A) THE NUMBER OF EMPLOYMENT POSITIONS CREATED OR RETAINED AS A RESULT
 OF THE FUND'S RURAL GROWTH INVESTMENTS AS OF THE LAST DAY OF THE PRECED-
 ING CALENDAR YEAR;
   (B)  THE  AVERAGE ANNUAL SALARY OF THE POSITIONS DESCRIBED IN SUBPARA-
 GRAPH (A) OF THIS PARAGRAPH;
   (C) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
   (3) THE DEPARTMENT SHALL  ADOPT  RULES  NECESSARY  TO  IMPLEMENT  THIS
 SUBDIVISION.
   §  2.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (dd) to read as follows:
   (DD) CREDIT FOR CERTAIN INVESTMENTS TO A RURAL BUSINESS  GROWTH  FUND.
 (1)  THERE  IS  HEREBY  ALLOWED A NONREFUNDABLE TAX CREDIT FOR TAXPAYERS
 THAT MADE A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION  TO  A  RURAL  BUSINESS
 GROWTH  FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER SUBPARAGRAPH
 (B) OF PARAGRAPH SIX OF SUBDIVISION (B) OF SECTION  FORTY-FOUR  OF  THIS
 CHAPTER. THE CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE  AND  SECTION  ONE THOUSAND ONE HUNDRED TWELVE OF THE INSURANCE LAW.
 THE CREDIT MAY NOT BE SOLD, TRANSFERRED,  OR  ALLOCATED  TO  ANY  ENTITY
 OTHER THAN AN AFFILIATE OF THE TAXPAYER.
   (2) ON THE CLOSING DATE, THE TAXPAYER SHALL EARN A VESTED CREDIT EQUAL
 TO  THE AMOUNT OF THE TAXPAYER'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO
 THE RURAL BUSINESS GROWTH FUND, AS SPECIFIED ON THE TAX  CREDIT  CERTIF-
 ICATE.  THE TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE ELIGIBLE
 INVESTMENT AUTHORITY FOR THE TAXABLE YEAR CONTAINING THE THIRD  ANNIVER-
 SARY  DATE  OF  THE  CLOSING  DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD
 PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION. THE TAXPAYER MAY  CLAIM
 UP  TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE TAXA-
 BLE YEARS THAT INCLUDE THE FOURTH AND FIFTH  ANNIVERSARY  DATES  OF  THE
 CLOSING DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD PURSUANT TO PARAGRAPH
 THREE OF THIS SUBDIVISION.
   (3)  IF  THE  AMOUNT  OF THE CREDIT FOR A TAXABLE YEAR EXCEEDS THE TAX
 OTHERWISE DUE FOR THAT YEAR, THE EXCESS  SHALL  BE  CARRIED  FORWARD  TO
 ENSUING  TAXABLE  YEARS  UNTIL  FULLY USED. A TAXPAYER CLAIMING A CREDIT
 UNDER THIS SECTION SHALL SUBMIT A COPY OF  THE  TAX  CREDIT  CERTIFICATE
 WITH THE TAXPAYER'S RETURN FOR EACH TAXABLE YEAR FOR WHICH THE CREDIT IS
 CLAIMED.
   §  3.  The tax law is amended by adding a new section 187-q to read as
 follows:
   § 187-Q. CREDIT FOR CERTAIN INVESTMENTS TO  A  RURAL  BUSINESS  GROWTH
 FUND.  1. THERE IS HEREBY ALLOWED A NONREFUNDABLE TAX CREDIT FOR TAXPAY-
 ERS THAT MADE A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO A RURAL BUSINESS
 GROWTH FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER  SUBPARAGRAPH
 (B)  OF  PARAGRAPH  SIX OF SUBDIVISION (B) OF SECTION FORTY-FOUR OF THIS
 CHAPTER. THE CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE. THE CREDIT MAY NOT BE SOLD, TRANSFERRED, OR ALLOCATED TO ANY ENTITY
 OTHER THAN AN AFFILIATE OF THE TAXPAYER.

 S. 7509--B                         87
 
   2. ON THE CLOSING DATE, THE TAXPAYER SHALL EARN A VESTED CREDIT  EQUAL
 TO  THE AMOUNT OF THE TAXPAYER'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO
 THE RURAL BUSINESS GROWTH FUND, AS SPECIFIED ON THE TAX  CREDIT  CERTIF-
 ICATE.  THE TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE ELIGIBLE
 INVESTMENT  AUTHORITY FOR THE TAXABLE YEAR CONTAINING THE THIRD ANNIVER-
 SARY DATE OF THE CLOSING DATE,  EXCLUSIVE  OF  AMOUNTS  CARRIED  FORWARD
 PURSUANT TO SUBDIVISION THREE OF THIS SECTION. THE TAXPAYER MAY CLAIM UP
 TO  TWENTY  PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE TAXABLE
 YEARS THAT INCLUDE THE FOURTH AND FIFTH ANNIVERSARY DATES OF THE CLOSING
 DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD PURSUANT TO SUBDIVISION THREE
 OF THIS SECTION.
   3. IF THE AMOUNT OF THE CREDIT FOR A  TAXABLE  YEAR  EXCEEDS  THE  TAX
 OTHERWISE  DUE  FOR  THAT  YEAR,  THE EXCESS SHALL BE CARRIED FORWARD TO
 ENSUING TAXABLE YEARS UNTIL FULLY USED. A  TAXPAYER  CLAIMING  A  CREDIT
 UNDER  THIS  SECTION  SHALL  SUBMIT A COPY OF THE TAX CREDIT CERTIFICATE
 WITH THE TAXPAYER'S RETURN FOR EACH TAXABLE YEAR FOR WHICH THE CREDIT IS
 CLAIMED.
   § 4. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 53 to read as follows:
   53.  CREDIT  FOR  CERTAIN INVESTMENTS TO A RURAL BUSINESS GROWTH FUND.
 (1) THERE IS HEREBY ALLOWED A NONREFUNDABLE  TAX  CREDIT  FOR  TAXPAYERS
 THAT  MADE  A  CREDIT-ELIGIBLE  CAPITAL CONTRIBUTION TO A RURAL BUSINESS
 GROWTH FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER  SUBPARAGRAPH
 (B)  OF  PARAGRAPH  SIX OF SUBDIVISION (B) OF SECTION FORTY-FOUR OF THIS
 CHAPTER. THE CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE. THE CREDIT MAY NOT BE SOLD, TRANSFERRED, OR ALLOCATED TO ANY ENTITY
 OTHER THAN AN AFFILIATE OF THE TAXPAYER.
   (2) ON THE CLOSING DATE, THE TAXPAYER SHALL EARN A VESTED CREDIT EQUAL
 TO THE AMOUNT OF THE TAXPAYER'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION  TO
 THE  RURAL  BUSINESS GROWTH FUND, AS SPECIFIED ON THE TAX CREDIT CERTIF-
 ICATE. THE TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE  ELIGIBLE
 INVESTMENT  AUTHORITY FOR THE TAXABLE YEAR CONTAINING THE THIRD ANNIVER-
 SARY DATE OF THE CLOSING DATE,  EXCLUSIVE  OF  AMOUNTS  CARRIED  FORWARD
 PURSUANT  TO PARAGRAPH THREE OF THIS SUBDIVISION. THE TAXPAYER MAY CLAIM
 UP TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE  TAXA-
 BLE  YEARS  THAT  INCLUDE  THE FOURTH AND FIFTH ANNIVERSARY DATES OF THE
 CLOSING DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD PURSUANT TO PARAGRAPH
 THREE OF THIS SUBDIVISION.
   (3) IF THE AMOUNT OF THE CREDIT FOR A TAXABLE  YEAR  EXCEEDS  THE  TAX
 OTHERWISE  DUE  FOR  THAT  YEAR,  THE EXCESS SHALL BE CARRIED FORWARD TO
 ENSUING TAXABLE YEARS UNTIL FULLY USED. A  TAXPAYER  CLAIMING  A  CREDIT
 UNDER  THIS  SECTION  SHALL  SUBMIT A COPY OF THE TAX CREDIT CERTIFICATE
 WITH THE TAXPAYER'S RETURN FOR EACH TAXABLE YEAR FOR WHICH THE CREDIT IS
 CLAIMED.
   § 5. The state finance law is amended by adding a new section 99-bb to
 read as follows:
   § 99-BB. NEW YORK AGRICULTURE AND RURAL JOBS 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 AGRICULTURE AND RURAL JOBS FUND".
   2.  SUCH FUND SHALL CONSIST OF ALL APPLICATION FEES SUBMITTED PURSUANT
 TO SUBPARAGRAPH (F) OF PARAGRAPH  ONE  OF  SUBDIVISION  (B)  OF  SECTION
 FORTY-FOUR  OF THE TAX LAW, AND ALL OTHER MONEYS APPROPRIATED, CREDITED,
 OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW.
   3. MONEYS OF THE FUND,  FOLLOWING  APPROPRIATION  BY  THE  LEGISLATURE
 SHALL BE EXPENDED ONLY FOR THE PURPOSES OF PROVIDING FUNDING FOR THE NEW

 S. 7509--B                         88
 
 YORK  AGRICULTURE  AND RURAL JOBS CREDIT SET FORTH IN SECTION FORTY-FOUR
 OF THE TAX LAW. MONEYS SHALL BE PAID OUT OF THE FUND ON  THE  AUDIT  AND
 WARRANT  OF  THE STATE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY
 THE  COMMISSIONER  OF TAXATION AND FINANCE. ANY INTEREST RECEIVED BY THE
 COMPTROLLER ON MONEYS ON DEPOSIT IN THE NEW YORK AGRICULTURE  AND  RURAL
 JOBS FUND SHALL BE RETAINED IN AND BECOME PART OF SUCH FUND.
   § 6. This act shall take effect April 1, 2019.
 
                                 PART NNN
 
   Section  1.  Subdivision (a) of section 1115 of the tax law is amended
 by adding a new paragraph 45 to read as follows:
   (45) SCHOOL BUSES AS SUCH TERM  IS  DEFINED  IN  SECTION  ONE  HUNDRED
 FORTY-TWO  OF  THE VEHICLE AND TRAFFIC LAW, AND PARTS, EQUIPMENT, LUBRI-
 CANTS AND FUEL PURCHASED AND USED IN THEIR OPERATION.
   § 2. Paragraph a of subdivision 14 of section  305  of  the  education
 law,  as  amended by chapter 273 of the laws of 1999, is amended to read
 as follows:
   a. All contracts  for  the  transportation  of  school  children,  all
 contracts  to maintain school buses owned or leased by a school district
 that are used for the transportation of school children,  all  contracts
 for  mobile  instructional units, and all contracts to provide, maintain
 and operate cafeteria or restaurant service by a  private  food  service
 management company shall be subject to the approval of the commissioner,
 who  may  disapprove  a proposed contract if, in his OR HER opinion, the
 best interests of the district  will  be  promoted  thereby.  Except  as
 provided  in paragraph e of this subdivision, all such contracts involv-
 ing an annual expenditure in excess of the amount specified for purchase
 contracts in the bidding requirements of the general municipal law shall
 be awarded to the lowest responsible bidder, which responsibility  shall
 be  determined  by  the board of education or the trustee of a district,
 with power hereby vested in the commissioner to reject any or  all  bids
 if,  in  his  OR HER opinion, the best interests of the district will be
 promoted thereby and, upon such rejection of all bids, the  commissioner
 shall  order  the board of education or trustee of the district to seek,
 obtain and consider new proposals. All proposals  for  such  transporta-
 tion,  maintenance, mobile instructional units, or cafeteria and restau-
 rant service shall be in such form as the  commissioner  may  prescribe.
 Advertisement  for  bids shall be published in a newspaper or newspapers
 designated by the board of education or trustee of the  district  having
 general  circulation  within  the district for such purpose. Such adver-
 tisement shall contain a statement of the time when and place where  all
 bids received pursuant to such advertisement will be publicly opened and
 read  either  by the school authorities or by a person or persons desig-
 nated by them. All bids received shall be publicly opened  and  read  at
 the time and place so specified. At least five days shall elapse between
 the  first  publication  of such advertisement and the date so specified
 for the opening and reading of bids.  The  requirement  for  competitive
 bidding shall not apply to an award of a contract for the transportation
 of pupils or a contract for mobile instructional units, if such award is
 based  on  an  evaluation  of  proposals  in  response  to a request for
 proposals pursuant to paragraph e of this subdivision.  The  requirement
 for competitive bidding shall not apply to annual, biennial, or trienni-
 al  extensions  of  a contract nor shall the requirement for competitive
 bidding apply to  quadrennial  or  quinquennial  year  extensions  of  a
 contract involving transportation of pupils, maintenance of school buses

 S. 7509--B                         89
 
 or mobile instructional units secured either through competitive bidding
 or  through  evaluation  of  proposals  in  response  to  a  request for
 proposals pursuant to paragraph e of this subdivision, when such  exten-
 sions  (1)  are  made  by  the  board  of  education or the trustee of a
 district, under rules and regulations prescribed  by  the  commissioner,
 and,  (2)  do  not extend the original contract period beyond five years
 from the date cafeteria and restaurant service commenced thereunder  and
 in the case of contracts for the transportation of pupils, for the main-
 tenance  of  school  buses  or for mobile instructional units, that such
 contracts may be extended, except that power is  hereby  vested  in  the
 commissioner,  in addition to his OR HER existing statutory authority to
 approve or disapprove transportation or maintenance  contracts,  (i)  to
 reject any extension of a contract beyond the initial term thereof if he
 OR SHE finds that amount to be paid by the district to the contractor in
 any year of such proposed extension fails to reflect any decrease in the
 regional  consumer  price  index  for  the N.Y., N.Y.-Northeastern, N.J.
 area, based upon the index for all urban consumers  (CPI-U)  during  the
 preceding  twelve  month  period;  and (ii) to reject any extension of a
 contract after ten years from the  date  transportation  or  maintenance
 service  commenced  thereunder, or mobile instructional units were first
 provided, if in his OR HER opinion, the best interests of  the  district
 will be promoted thereby. Upon such rejection of any proposed extension,
 the  commissioner  may  order  the  board of education or trustee of the
 district to seek, obtain and consider bids pursuant to the provisions of
 this section; AND TO REJECT ANY EXTENSION OF A CONTRACT FOR  TRANSPORTA-
 TION,  OR NEW CONTRACT, IF HE OR SHE FINDS THAT THE AMOUNT TO BE PAID BY
 THE  DISTRICT TO THE CONTRACTOR IN ANY YEAR OF  SUCH  PROPOSED  CONTRACT
 FAILS  TO  REFLECT  THE SAVINGS REALIZED FROM THE SALES TAX EXEMPTION ON
 SCHOOL BUSES, PARTS, EQUIPMENT, LUBRICANTS  AND  FUEL  USED  FOR  SCHOOL
 PURPOSES  PURSUANT TO PARAGRAPH FORTY-FIVE OF SUBDIVISION (A) OF SECTION
 ELEVEN HUNDRED FIFTEEN OF THE TAX LAW. The board  of  education  or  the
 trustee  of  a school district electing to extend a contract as provided
 herein, may, in its discretion, increase the amount to be paid  in  each
 year  of  the contract extension by an amount not to exceed the regional
 consumer price index increase  for  the  N.Y.,  N.Y.-Northeastern,  N.J.
 area,  based  upon the index for all urban consumers (CPI-U), during the
 preceding twelve month  period,  provided  it  has  been  satisfactorily
 established by the contractor that there has been at least an equivalent
 increase in the amount of his OR HER cost of operation, during the peri-
 od of the contract.
   §  3.  This  act shall take effect immediately; provided, however that
 section one of this act shall take effect on the first day of a quarter-
 ly sales tax period as set forth in subdivision (b) of section  1136  of
 the  tax  law,  next  succeeding December 1, 2018; and provided further,
 that such exemption shall only apply to contracts executed  or  extended
 after such date. Provided further, that the commissioner of taxation and
 finance  may  take any action necessary for the timely implementation of
 this act on or before the date on which it shall have become a law.
 
                                 PART OOO
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "education affordability act".
   §  2.    The  tax law is amended by adding a new section 44 to read as
 follows:

 S. 7509--B                         90
 
   § 44. EDUCATION AFFORDABILITY TAX CREDIT.   (A) DEFINITIONS.  FOR  THE
 PURPOSES  OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE SAME DEFI-
 NITION AS PROVIDED FOR IN ARTICLE TWENTY-FIVE OF THE EDUCATION LAW:
   "AUTHORIZED CONTRIBUTION";
   "CONTRIBUTION";
   "EDUCATIONAL PROGRAM";
   "EDUCATIONAL SCHOLARSHIP ORGANIZATION";
   "ELIGIBLE PUPIL";
   "LOCAL EDUCATION FUND";
   "NONPUBLIC SCHOOL";
   "PUBLIC EDUCATION ENTITY";
   "PUBLIC SCHOOL";
   "QUALIFIED CONTRIBUTION";
   "QUALIFIED EDUCATOR";
   "QUALIFIED SCHOOL";
   "SCHOLARSHIP"; AND
   "SCHOOL IMPROVEMENT ORGANIZATION".
   (B)  ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SUBJECT TO TAX UNDER ARTICLE
 NINE-A OR TWENTY-TWO OF THIS CHAPTER SHALL  BE  ALLOWED  CREDIT  AGAINST
 SUCH  TAX,  PURSUANT  TO THE PROVISIONS REFERENCED IN SUBDIVISION (L) OF
 THIS SECTION, WITH RESPECT TO QUALIFIED CONTRIBUTIONS  MADE  DURING  THE
 TAXABLE YEAR.
   (C)  AMOUNT  OF  CREDIT.  FOR  TAXPAYERS  WHOSE FEDERAL ADJUSTED GROSS
 INCOME IS LESS THAN THREE HUNDRED THOUSAND DOLLARS FOR THE TAXABLE  YEAR
 DURING WHICH SUCH TAXPAYER MADE AT LEAST ONE QUALIFIED CONTRIBUTION, THE
 AMOUNT  OF  THE  CREDIT  SHALL BE NINETY PERCENT OF THE TAXPAYER'S TOTAL
 QUALIFIED CONTRIBUTIONS, CAPPED AT EIGHT HUNDRED  SEVENTY-FIVE  THOUSAND
 DOLLARS.  FOR  TAXPAYERS  WHOSE FEDERAL ADJUSTED GROSS INCOME IS GREATER
 THAN OR EQUAL TO THREE HUNDRED THOUSAND DOLLARS  FOR  THE  TAXABLE  YEAR
 DURING WHICH SUCH TAXPAYER MADE AT LEAST ONE QUALIFIED CONTRIBUTION, THE
 AMOUNT  OF  CREDIT SHALL BE SEVENTY-FIVE PERCENT OF THE TAXPAYER'S TOTAL
 QUALIFIED CONTRIBUTIONS, CAPPED AT EIGHT HUNDRED  SEVENTY-FIVE  THOUSAND
 DOLLARS.    A  TAXPAYER  THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A
 LIMITED LIABILITY COMPANY OR SHAREHOLDER IN AN S  CORPORATION  SHALL  BE
 ALLOWED TO CLAIM ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNER-
 SHIP,  LIMITED  LIABILITY COMPANY OR S CORPORATION, PROVIDED THAT SUCH A
 TAXPAYER SHALL NOT CLAIM CREDIT IN EXCESS OF EIGHT HUNDRED  SEVENTY-FIVE
 THOUSAND DOLLARS.
   (D) INFORMATION TO BE POSTED ON THE DEPARTMENT'S WEBSITE.  THE COMMIS-
 SIONER SHALL MAINTAIN ON THE DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE
 AMOUNT  OF  AVAILABLE  CREDIT  FOR WHICH TAXPAYERS MAY APPLY PURSUANT TO
 THIS SECTION.  SUCH RUNNING TOTAL SHALL BE UPDATED  ON  A  DAILY  BASIS.
 ADDITIONALLY,  THE  COMMISSIONER  SHALL  MAINTAIN  ON  THE  DEPARTMENT'S
 WEBSITE A LIST OF THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL  EDUCATION
 FUNDS  AND  EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  APPROVED  TO  ISSUE
 CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION
 LAW.  THE COMMISSIONER SHALL ALSO MAINTAIN ON THE DEPARTMENT'S WEBSITE A
 LIST OF PUBLIC EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,
 LOCAL  EDUCATION  FUNDS  AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS WHOSE
 APPROVAL TO ISSUE CERTIFICATES OF RECEIPT HAS BEEN  REVOKED  ALONG  WITH
 THE DATE OF REVOCATION.
   (E) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO
 MAKING  A  CONTRIBUTION TO A PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT
 ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
 TION, THE TAXPAYER SHALL APPLY TO  THE  DEPARTMENT  FOR  A  CONTRIBUTION
 AUTHORIZATION  CERTIFICATE FOR SUCH CONTRIBUTION. SUCH APPLICATION SHALL

 S. 7509--B                         91
 
 BE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.  THE  DEPARTMENT
 MAY  ALLOW  TAXPAYERS  TO  MAKE  MULTIPLE APPLICATIONS ON THE SAME FORM,
 PROVIDED THAT EACH CONTRIBUTION LISTED  ON  SUCH  APPLICATION  SHALL  BE
 TREATED  AS  A  SEPARATE APPLICATION AND THAT THE DEPARTMENT SHALL ISSUE
 SEPARATE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR EACH SUCH  APPLICA-
 TION.
   (F)  CONTRIBUTION  AUTHORIZATION CERTIFICATES. 1.  ISSUANCE OF CERTIF-
 ICATES.  THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIF-
 ICATES IN TWO PHASES. IN PHASE ONE, WHICH BEGINS ON  THE  FIRST  DAY  OF
 JANUARY  AND  ENDS  ON THE THIRTY-FIRST DAY OF JANUARY, THE COMMISSIONER
 SHALL ACCEPT APPLICATIONS FOR CONTRIBUTION  AUTHORIZATION  CERTIFICATES.
 COMMENCING AFTER THE FIFTH DAY OF FEBRUARY, THE COMMISSIONER SHALL ISSUE
 CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING
 PHASE ONE, PROVIDED THAT IF THE AGGREGATE TOTAL OF THE CONTRIBUTIONS FOR
 WHICH  APPLICATIONS  HAVE  BEEN  RECEIVED  DURING  PHASE ONE EXCEEDS THE
 AMOUNT OF THE CREDIT CAP IN SUBDIVISION (H) OF THIS SECTION, THEN  PHASE
 ONE  OF  THE  CREDIT CAP APPLICATION SHALL BE ALLOCATED IN TWO STEPS. IN
 STEP ONE, THE ALLOCATION SHALL EQUAL THE CONTRIBUTION CAP DIVIDED BY THE
 TOTAL NUMBER OF APPLICATIONS FOR  CONTRIBUTIONS,  ROUNDED  DOWN  TO  THE
 NEAREST  CENT.  EACH APPLICATION REQUESTING AN AMOUNT WHICH IS LESS THAN
 OR EQUAL TO THE ALLOCATION IN STEP ONE SHALL RECEIVE THE AMOUNT ON THEIR
 APPLICATION FOR CONTRIBUTION AND THE DIFFERENCE, WHICH SHALL BE REFERRED
 TO AS "EXCESS DISTRIBUTIONS" FOR THE PURPOSES OF THIS SUBDIVISION, SHALL
 BE AVAILABLE FOR ALLOCATION IN STEP TWO. EACH APPLICATION REQUESTING  AN
 AMOUNT WHICH EXCEEDS THE ALLOCATION IN STEP ONE SHALL BE ALLOCATED CRED-
 ITS  IN  STEP  TWO. IN STEP TWO, IF EXCESS DISTRIBUTIONS EQUAL ZERO THEN
 EACH APPLICATION SHALL RECEIVE THE  ALLOCATION  AMOUNT  FROM  STEP  ONE,
 OTHERWISE  EACH  APPLICATION SHALL RECEIVE AN AMOUNT EQUAL TO THE SUM OF
 THE (I) THE ALLOCATION AMOUNT IN STEP ONE AND (II) A PRO RATA  SHARE  OF
 AGGREGATE  EXCESS  DISTRIBUTIONS  BASED  ON  THE  DIFFERENCE BETWEEN THE
 AMOUNT ON THEIR APPLICATION FOR CONTRIBUTION AND THE ALLOCATION IN  STEP
 ONE.  FOR THE PURPOSES OF THIS SUBDIVISION, MULTIPLE APPLICATIONS BY THE
 SAME TAXPAYER SHALL BE TREATED AS ONE APPLICATION. IF THE CREDIT CAP  IS
 NOT  EXCEEDED,  PHASE  TWO  COMMENCES  ON FEBRUARY TWENTIETH AND ENDS ON
 OCTOBER THIRTY-FIRST. DURING PHASE  TWO  THE  COMMISSIONER  SHALL  ISSUE
 CONTRIBUTION  AUTHORIZATION  CERTIFICATES  ON  A  FIRST-COME FIRST SERVE
 BASIS BASED UPON THE DATE THE DEPARTMENT RECEIVED THE TAXPAYER'S  APPLI-
 CATION  FOR  SUCH CERTIFICATE.   CONTRIBUTION AUTHORIZATION CERTIFICATES
 FOR APPLICATIONS RECEIVED DURING PHASE ONE SHALL BE MAILED NO LATER THAN
 THE TWENTIETH DAY OF FEBRUARY. CONTRIBUTION  AUTHORIZATION  CERTIFICATES
 FOR  APPLICATIONS  RECEIVED DURING PHASE TWO SHALL BE MAILED WITHIN FIVE
 DAYS OF RECEIPT OF SUCH APPLICATIONS.
   2. CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH  CONTRIBUTION
 AUTHORIZATION  CERTIFICATE SHALL STATE (I) THE DATE SUCH CERTIFICATE WAS
 ISSUED, (II) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED ON THE
 CERTIFICATE MUST BE MADE, WHICH SHALL BE NO LATER THAN DECEMBER  THIRTY-
 FIRST  OF  THE YEAR FOR WHICH THE CONTRIBUTION AUTHORIZATION CERTIFICATE
 WAS ISSUED, (III)  THE  AMOUNT  OF  AUTHORIZED  CONTRIBUTION,  (IV)  THE
 CERTIFICATE  NUMBER,  (V) THE TAXPAYER'S NAME AND ADDRESS, (VI) THE NAME
 AND ADDRESS OF THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
 TION, LOCAL EDUCATION FUND OR EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  TO
 WHICH  THE  TAXPAYER MAY MAKE THE AUTHORIZED CONTRIBUTION, AND (VII) ANY
 OTHER INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY.
   3. NOTIFICATION  OF  THE  ISSUANCE  OF  A  CONTRIBUTION  AUTHORIZATION
 CERTIFICATE.  UPON  THE ISSUANCE OF A CONTRIBUTION AUTHORIZATION CERTIF-
 ICATE TO A TAXPAYER, THE COMMISSIONER SHALL NOTIFY THE PUBLIC  EDUCATION

 S. 7509--B                         92
 
 ENTITY,  SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR EDUCA-
 TIONAL SCHOLARSHIP ORGANIZATION OF THE  ISSUANCE  OF  SUCH  CONTRIBUTION
 AUTHORIZATION  CERTIFICATE.  SUCH  NOTIFICATION  SHALL  INCLUDE  (I) THE
 TAXPAYER'S  NAME AND ADDRESS, (II) THE DATE SUCH CERTIFICATE WAS ISSUED,
 (III) THE DATE BY  WHICH  THE  AUTHORIZED  CONTRIBUTION  LISTED  IN  THE
 NOTIFICATION  MUST  BE  MADE  BY  THE  TAXPAYER,  (IV) THE AMOUNT OF THE
 AUTHORIZED CONTRIBUTION,  (V)  THE  CONTRIBUTION  AUTHORIZATION  CERTIF-
 ICATE'S  CERTIFICATE  NUMBER,  AND  (VI)  ANY OTHER INFORMATION THAT THE
 COMMISSIONER DEEMS NECESSARY.
   (G) CERTIFICATE OF RECEIPT. 1. IN GENERAL. NO PUBLIC EDUCATION ENTITY,
 SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
 SCHOLARSHIP  ORGANIZATION  SHALL  ISSUE A CERTIFICATE OF RECEIPT FOR ANY
 CONTRIBUTION MADE BY A TAXPAYER UNLESS  SUCH  PUBLIC  EDUCATION  ENTITY,
 SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL EDUCATION FUND, OR EDUCATIONAL
 SCHOLARSHIP ORGANIZATION HAS BEEN  APPROVED  TO  ISSUE  CERTIFICATES  OF
 RECEIPT  PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. NO PUBLIC
 EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND,
 OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL  ISSUE  A  CERTIFICATE  OF
 RECEIPT  FOR A CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCA-
 TION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR
 EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  HAS  RECEIVED  NOTICE  FROM  THE
 DEPARTMENT THAT  THE  DEPARTMENT  ISSUED  A  CONTRIBUTION  AUTHORIZATION
 CERTIFICATE TO THE TAXPAYER FOR SUCH CONTRIBUTION.
   2. TIMELY CONTRIBUTION. IF A TAXPAYER MAKES AN AUTHORIZED CONTRIBUTION
 TO  THE  PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL
 EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SET FORTH ON THE
 CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE TAXPAYER  NO  LATER
 THAN  THE  DATE  BY WHICH SUCH AUTHORIZED CONTRIBUTION IS REQUIRED TO BE
 MADE, SUCH PUBLIC EDUCATION  ENTITY,  SCHOOL  IMPROVEMENT  ORGANIZATION,
 LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL,
 WITHIN THIRTY DAYS OF RECEIPT OF THE AUTHORIZED CONTRIBUTION,  ISSUE  TO
 THE  TAXPAYER  A  CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT IF THE
 TAXPAYER CONTRIBUTES AN AMOUNT THAT IS LESS THAN THE  AMOUNT  LISTED  ON
 THE  TAXPAYER'S  CONTRIBUTION  AUTHORIZATION  CERTIFICATE,  THE TAXPAYER
 SHALL NOT BE ISSUED A CERTIFICATE OF RECEIPT FOR SUCH CONTRIBUTION.
   3. CERTIFICATE OF RECEIPT CONTENTS. EACH CERTIFICATE OF RECEIPT  SHALL
 STATE  (I)  THE NAME AND ADDRESS OF THE ISSUING PUBLIC EDUCATION ENTITY,
 SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
 SCHOLARSHIP  ORGANIZATION,  (II)  THE TAXPAYER'S NAME AND ADDRESS, (III)
 THE DATE FOR EACH CONTRIBUTION, (IV) THE AMOUNT OF EACH CONTRIBUTION AND
 THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER, (V) THE
 TOTAL AMOUNT OF CONTRIBUTIONS, (VI) CERTIFICATE OF  RECEIPT  NUMBER  AND
 (VII) ANY OTHER INFORMATION THAT THE COMMISSIONER MAY DEEM NECESSARY.
   4. NOTIFICATION TO THE DEPARTMENT FOR THE ISSUANCE OF A CERTIFICATE OF
 RECEIPT.  UPON  THE  ISSUANCE  OF  A CERTIFICATE OF RECEIPT, THE ISSUING
 PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION,  LOCAL  EDUCA-
 TION  FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY
 DAYS OF ISSUING THE CERTIFICATE OF RECEIPT, PROVIDE THE DEPARTMENT  WITH
 NOTIFICATION  OF THE ISSUANCE OF SUCH CERTIFICATE IN THE FORM AND MANNER
 PRESCRIBED BY THE DEPARTMENT.
   5. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE
 OF RECEIPT. EACH PUBLIC EDUCATION ENTITY, SCHOOL  IMPROVEMENT  ORGANIZA-
 TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
 RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (F) OF
 THIS  SECTION  REGARDING  THE  ISSUANCE  OF A CONTRIBUTION AUTHORIZATION
 CERTIFICATE TO A TAXPAYER SHALL, WITHIN THIRTY DAYS  OF  THE  EXPIRATION

 S. 7509--B                         93
 
 DATE  FOR  SUCH  AUTHORIZED  CONTRIBUTION,  PROVIDE  NOTIFICATION TO THE
 DEPARTMENT FOR EACH TAXPAYER THAT FAILED TO MAKE THE AUTHORIZED CONTRIB-
 UTION TO SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZATION,
 LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION IN THE
 FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.
   6. FAILURE TO NOTIFY THE DEPARTMENT. WITHIN THIRTY DAYS OF THE DISCOV-
 ERY OF THE FAILURE OF ANY PUBLIC EDUCATION  ENTITY,  SCHOOL  IMPROVEMENT
 PROGRAM,  LOCAL  EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION
 TO COMPLY WITH THE NOTIFICATION REQUIREMENTS  PRESCRIBED  BY  PARAGRAPHS
 FOUR AND FIVE OF THIS SUBDIVISION, THE COMMISSIONER SHALL ISSUE A NOTICE
 OF  COMPLIANCE  FAILURE  TO SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION.
 SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION SHALL HAVE THIRTY DAYS  FROM
 THE  DATE  OF  SUCH NOTICE TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARA-
 GRAPHS FOUR AND FIVE OF THIS SUBDIVISION. SUCH PERIOD  MAY  BE  EXTENDED
 FOR  AN  ADDITIONAL THIRTY DAYS UPON THE REQUEST OF THE ENTITY, PROGRAM,
 FUND, OR ORGANIZATION. UPON THE EXPIRATION OF PERIOD FOR COMPLIANCE  SET
 FORTH IN THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE COMMISSIONER SHALL
 NOTIFY THE COMMISSIONER OF EDUCATION THAT SUCH ENTITY, PROGRAM, FUND, OR
 ORGANIZATION  FAILED  TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARAGRAPHS
 FOUR AND FIVE OF THIS SUBDIVISION.
   (H) CREDIT CAP. THE  MAXIMUM  PERMITTED  CREDITS  UNDER  THIS  SECTION
 AVAILABLE TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS FOR CALENDAR YEAR
 TWO  THOUSAND  NINETEEN  SHALL  BE ONE HUNDRED FIFTY MILLION DOLLARS. IN
 CALENDAR YEAR TWO THOUSAND TWENTY, THE MAXIMUM PERMITTED  CREDITS  UNDER
 THIS SECTION AVAILABLE TO ALL TAXPAYERS SHALL BE TWO HUNDRED TWENTY-FIVE
 MILLION  DOLLARS  PLUS  ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED TO THE
 CAP PURSUANT TO SUBDIVISION (I) OF THIS SECTION.  FOR CALENDAR YEAR  TWO
 THOUSAND  TWENTY-ONE  AND  EACH  CALENDAR  YEAR  THEREAFTER, THE MAXIMUM
 PERMITTED CREDITS AVAILABLE TO ALL  TAXPAYERS  SHALL  BE  THREE  HUNDRED
 MILLION  DOLLARS  PLUS  ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED TO THE
 CAP PURSUANT TO SUBDIVISION (I) OF THIS SECTION.  THE MAXIMUM  PERMITTED
 CREDITS  UNDER  THIS  SECTION FOR QUALIFIED CONTRIBUTIONS SHALL BE ALLO-
 CATED FIFTY PERCENT TO PUBLIC  EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT
 ORGANIZATIONS,  AND  LOCAL  EDUCATION  FUNDS AND FIFTY PERCENT TO EDUCA-
 TIONAL SCHOLARSHIP ORGANIZATIONS.
   (I) ADDITIONS TO CREDIT CAP. UNISSUED CERTIFICATES OF  RECEIPT.    ANY
 AMOUNTS  FOR  WHICH THE DEPARTMENT RECEIVES NOTIFICATION OF NON-ISSUANCE
 OF A CERTIFICATE OF RECEIPT SHALL BE ADDED  TO  THE  CAP  PRESCRIBED  IN
 SUBDIVISION (H) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR.
   (J)  REGULATIONS.  THE COMMISSIONER IS HEREBY AUTHORIZED TO PROMULGATE
 AND ADOPT ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE  IMPLEMEN-
 TATION OF THIS SECTION.
   (K)  WRITTEN REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR EACH CALEN-
 DAR YEAR, FOR THE IMMEDIATELY PRECEDING YEAR, THE COMMISSIONER  AND  THE
 COMMISSIONER  OF  EDUCATION SHALL JOINTLY SUBMIT A WRITTEN REPORT TO THE
 GOVERNOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  THE  SPEAKER  OF  THE
 ASSEMBLY,  THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE CHAIRMAN
 OF THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING THE EDUCATION AFFORD-
 ABILITY TAX CREDIT. SUCH REPORT SHALL CONTAIN INFORMATION  FOR  ARTICLES
 NINE-A  AND TWENTY-TWO OF THIS CHAPTER, RESPECTIVELY, REGARDING: (I) THE
 NUMBER OF APPLICATIONS RECEIVED; (II) THE NUMBER OF AND AGGREGATE  VALUE
 OF  THE CONTRIBUTION AUTHORIZATION CERTIFICATES ISSUED FOR CONTRIBUTIONS
 TO PUBLIC EDUCATION ENTITIES, SCHOOL  IMPROVEMENT  ORGANIZATIONS,  LOCAL
 EDUCATION  FUNDS, AND SCHOLARSHIP ORGANIZATIONS, RESPECTIVELY; (III) THE
 GEOGRAPHICAL DISTRIBUTION BY COUNTY OF (A) THE APPLICATIONS FOR CONTRIB-
 UTION AUTHORIZATION CERTIFICATES, DISTRIBUTION  BY  COUNTY  OF  (B)  THE

 S. 7509--B                         94
 
 PUBLIC  EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,  LOCAL
 EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS LISTED ON THE
 ISSUED CONTRIBUTION AUTHORIZATION CERTIFICATES;  AND  (IV)  INFORMATION,
 INCLUDING GEOGRAPHICAL DISTRIBUTION BY COUNTY, OF THE NUMBER OF ELIGIBLE
 PUPILS  THAT  RECEIVED  SCHOLARSHIPS,  THE  NUMBER  OF QUALIFIED SCHOOLS
 ATTENDED BY ELIGIBLE PUPILS THAT RECEIVED  SUCH  SCHOLARSHIPS,  AND  THE
 AVERAGE  VALUE  OF  SCHOLARSHIPS  RECEIVED  BY SUCH ELIGIBLE PUPILS. THE
 COMMISSIONER AND DESIGNATED EMPLOYEES OF THE DEPARTMENT, THE COMMISSION-
 ER OF EDUCATION AND DESIGNATED EMPLOYEES OF THE STATE EDUCATION  DEPART-
 MENT,  SHALL  BE ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE INFORMA-
 TION REGARDING THE SCHOOL  IMPROVEMENT  ORGANIZATIONS,  LOCAL  EDUCATION
 FUNDS   AND  EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  THAT  APPLIED  FOR
 APPROVAL TO BE AUTHORIZED TO RECEIVE QUALIFIED  CONTRIBUTIONS;  AND  THE
 PUBLIC  EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT  ORGANIZATIONS,  LOCAL
 EDUCATION FUNDS, AND EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AUTHORIZED TO
 ISSUE CERTIFICATES OF RECEIPT, INCLUDING  INFORMATION  CONTAINED  IN  OR
 DERIVED FROM APPLICATION FORMS AND REPORTS SUBMITTED TO THE COMMISSIONER
 OF EDUCATION.
   (L)  CROSS  REFERENCES.  FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   1. ARTICLE 9-A: SECTION 210-B; SUBDIVISION 53;
   2. ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (CCC).
   § 3. Paragraph (b) of subdivision 9 of section 208 of the tax  law  is
 amended by adding a new subparagraph 23 to read as follows:
   (23)  THE  AMOUNT  OF  ANY  DEDUCTION  ALLOWED PURSUANT TO SECTION ONE
 HUNDRED SEVENTY OF THE INTERNAL REVENUE  CODE  FOR  WHICH  A  CREDIT  IS
 CLAIMED PURSUANT TO SUBDIVISION FIFTY-THREE OF SECTION TWO HUNDRED TEN-B
 OF THIS ARTICLE.
   §  4. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:
   53. EDUCATION AFFORDABILITY TAX CREDIT. (A)  ALLOWANCE  OF  CREDIT.  A
 TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
 SECTION FORTY-FOUR OF THIS CHAPTER, AGAINST  THE  TAX  IMPOSED  BY  THIS
 ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO  LESS
 THAN  THE  HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPH (D) OF SUBDIVI-
 SION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE.   HOWEVER,  IF  THE
 AMOUNT  OF  CREDIT ALLOWED UNDER THIS SUBDIVISION FOR QUALIFIED CONTRIB-
 UTIONS FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT,  ANY  AMOUNT
 OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE
 SUCCEEDING  FIVE  YEARS  AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR
 SUCH YEAR OR YEARS.
   § 5. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
 follows:
 (XLIV) EDUCATION AFFORDABILITY       AMOUNT OF CREDIT UNDER
 TAX CREDIT UNDER SUBSECTION (CCC)    SUBDIVISION FIFTY-THREE OF SECTION
                                      TWO HUNDRED TEN-B
   § 6. Section 606  of  the  tax  law  is  amended  by  adding  two  new
 subsections (w) and (w-1) to read as follows:
   (W)  HOME-BASED  INSTRUCTIONAL MATERIALS CREDIT. (1) FOR TAXABLE YEARS
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN,  A  TAXPAYER
 SHALL  BE  ALLOWED  A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR
 THE PURCHASE  OF  INSTRUCTIONAL  MATERIALS  APPROVED  BY  THE  EDUCATION
 DEPARTMENT  FOR  USE  IN  NON-PUBLIC  HOME-BASED  EDUCATIONAL  PROGRAMS;

 S. 7509--B                         95

 PROVIDED, THAT THE AMOUNT OF CREDIT CLAIMED DOES NOT EXCEED  THE  LESSER
 OF  TWO  HUNDRED  DOLLARS  OR  ONE  HUNDRED  PERCENT OF THE COST OF SUCH
 PURCHASES MADE BY THE TAXPAYER DURING THE TAXABLE YEAR.
   (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
 WHICH  THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF
 OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
   (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR  ANY
 TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   (W-1)  INSTRUCTIONAL  MATERIALS  AND SUPPLIES CREDIT.  (1) FOR TAXABLE
 YEARS BEGINNING ON AND AFTER JANUARY FIRST,  TWO  THOUSAND  NINETEEN,  A
 TAXPAYER  SHALL  BE  ALLOWED  A CREDIT EQUAL TO THE LESSER OF THE AMOUNT
 PAID BY THE TAXPAYER DURING THE TAXABLE YEAR FOR INSTRUCTIONAL MATERIALS
 AND SUPPLIES, OR TWO HUNDRED DOLLARS; PROVIDED THAT THE  TAXPAYER  IS  A
 TEACHER  OR  INSTRUCTOR  IN  A  QUALIFIED  SCHOOL, AS DEFINED IN SECTION
 FORTY-FOUR OF THIS CHAPTER, FOR AT LEAST NINE  HUNDRED  HOURS  DURING  A
 SCHOOL  YEAR.  FOR  PURPOSES OF THIS SUBSECTION, THE TERM "MATERIALS AND
 SUPPLIES" MEANS INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE USED IN THE
 CLASSROOM IN ANY QUALIFIED SCHOOL.
   (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
 WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY  ONE-HALF
 OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
   (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
 SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   § 7. Section 606 of the tax law is amended by adding a new  subsection
 (ccc) to read as follows:
   (CCC)  EDUCATION  AFFORDABILITY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A
 TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
 FORTY-FOUR OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
 THIS  SUBSECTION  FOR  ANY  QUALIFIED CONTRIBUTIONS FOR ANY TAXABLE YEAR
 EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER
 TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
 FOR SUCH YEAR OR YEARS.
   § 8. Subsection (c) of section 615 of the tax law is amended by adding
 a new paragraph 10 to read as follows:
   (10) THE AMOUNT OF ANY FEDERAL DEDUCTION FOR  CONTRIBUTIONS  MADE  FOR
 WHICH  A  TAXPAYER CLAIMS A CREDIT UNDER SUBSECTION (CCC) OF SECTION SIX
 HUNDRED SIX OF THIS ARTICLE.
   § 9. Section 606 of the tax law is amended by adding a new  subsection
 (iii) to read as follows:
   (III)  HELPING  OPEN OPPORTUNITIES TO LEARN TAX CREDIT. (1) GENERAL. A
 RESIDENT LOW AND MIDDLE INCOME TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE
 COMPUTED AS PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, AGAINST  THE
 TAX  IMPOSED  BY  THIS  ARTICLE  FOR  THE QUALIFIED PRIMARY OR SECONDARY
 EDUCATION TUITION EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR.
   (2) DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "RESIDENT  LOW  AND MIDDLE INCOME TAXPAYER" SHALL MEAN A TAXPAYER
 WHO IS A FULL-YEAR RESIDENT OF THIS  STATE  AND  WHOSE  FEDERAL  TAXABLE
 INCOME  IS  EQUAL  TO  OR  LESS THAN SEVEN HUNDRED TWENTY PERCENT OF THE

 S. 7509--B                         96
 
 FEDERAL POVERTY GUIDELINES, AS PROMULGATED ANNUALLY BY THE UNITED STATES
 DEPARTMENT OF HEALTH AND HUMAN SERVICES, FOR THE TAXABLE YEAR FOR  WHICH
 THIS CREDIT IS CLAIMED.
   (B)  "QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES" SHALL
 MEAN THE TUITION REQUIRED FOR THE ENROLLMENT OR ATTENDANCE OF AN  ELIGI-
 BLE  STUDENT  AT A QUALIFIED SCHOOL, AS DEFINED IN SECTION FORTY-FOUR OF
 THIS CHAPTER. PROVIDED, HOWEVER, THAT ANY TUITION PAYMENTS MADE FOR SUCH
 ELIGIBLE STUDENT PURSUANT TO THE RECEIPT OF FINANCIAL AID OR ONE OR MORE
 SCHOLARSHIPS SHALL BE EXCLUDED FROM THE DEFINITION OF THE  TERM  "QUALI-
 FIED  PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES" FOR SUCH ELIGIBLE
 STUDENT.
   (C) "ELIGIBLE STUDENT" SHALL MEAN ANY DEPENDENT OF THE  TAXPAYER  WITH
 RESPECT  TO  WHOM THE TAXPAYER IS ALLOWED AN EXEMPTION UNDER SECTION SIX
 HUNDRED SIXTEEN OF THIS ARTICLE FOR THE TAXABLE YEAR WHO IS ENROLLED IN,
 AND FOR WHOM QUALIFIED PRIMARY AND SECONDARY EDUCATION TUITION  EXPENSES
 HAVE BEEN PAID FOR, KINDERGARTEN OR GRADE ONE THROUGH TWELVE IN A QUALI-
 FIED SCHOOL.
   (3)  AMOUNT  OF  CREDIT.  THE AMOUNT OF CREDIT THAT A RESIDENT LOW AND
 MIDDLE INCOME TAXPAYER MAY CLAIM FOR THE QUALIFIED PRIMARY OR  SECONDARY
 EDUCATION  TUITION  EXPENSES  PAID FOR EACH ELIGIBLE STUDENT SHALL EQUAL
 THE LESSER OF TWELVE PERCENT OF THE TOTAL PER PUPIL STATE PUBLIC  SCHOOL
 EXPENDITURES  OR  FIFTEEN  PERCENT OF THE QUALIFIED PRIMARY OR SECONDARY
 EDUCATION TUITION EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE  YEAR
 FOR  SUCH  ELIGIBLE  STUDENT. THE TOTAL STATE PUBLIC SCHOOL EXPENDITURES
 SHALL EQUAL THE SCHOOL AID, AS REPORTED  IN  THE  STATE  ENACTED  BUDGET
 FINANCIAL  PLAN  FOR  THE  TAXABLE  YEAR IN WHICH THE SCHOOL YEAR BEGAN,
 DIVIDED BY THE TOTAL NUMBER OF STUDENTS  ENROLLED  IN  KINDERGARTEN  AND
 GRADES  ONE  THROUGH TWELVE AT PUBLIC SCHOOLS IN THIS STATE AS PUBLISHED
 BY THE DEPARTMENT OF EDUCATION FOR SUCH TAXABLE YEAR.
   (4) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
 SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
 HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
 SHALL BE PAID THEREON.
   (5) HUSBAND AND WIFE. IN THE CASE OF A HUSBAND AND  WIFE  WHO  FILE  A
 JOINT  FEDERAL  RETURN, BUT WHO ARE REQUIRED TO DETERMINE THEIR NEW YORK
 TAXES SEPARATELY, THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION MAY  BE
 APPLIED  AGAINST  THE  TAX  IMPOSED OF EITHER OR DIVIDED BETWEEN THEM AS
 THEY MAY ELECT.
   § 10. The education law is amended by adding a new article 25 to  read
 as follows:
                                ARTICLE 25
                      EDUCATION AFFORDABILITY PROGRAM
 SECTION 1209. SHORT TITLE.
         1210. DEFINITIONS.
         1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
         1212. APPLICATIONS   FOR   APPROVAL  TO  ISSUE  CERTIFICATES  OF
                 RECEIPT.
         1213. APPLICATION APPROVAL.
         1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
         1215. RECORDKEEPING.
         1216. JOINT ANNUAL REPORT.
         1217. COMMISSIONER; POWERS.
   § 1209. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
 THE "EDUCATION AFFORDABILITY PROGRAM".

 S. 7509--B                         97
 
   §  1210.  DEFINITIONS.  AS  USED  IN THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "AUTHORIZED  CONTRIBUTION" MEANS THE CONTRIBUTION AMOUNT LISTED ON
 THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO A TAXPAYER.
   2. "CONTRIBUTION" MEANS A DONATION PAID  BY  CASH,  CHECK,  ELECTRONIC
 FUNDS  TRANSFER,  DEBIT  CARD OR CREDIT CARD MADE BY THE TAXPAYER DURING
 THE TAX YEAR.
   3. "EDUCATIONAL PROGRAM" MEANS AN ACADEMIC PROGRAM OF A PUBLIC  SCHOOL
 THAT  ENHANCES THE CURRICULUM, OR PROVIDES OR EXPANDS A PRE-KINDERGARTEN
 PROGRAM OR AN AFTER-SCHOOL PROGRAM TO THE PUBLIC SCHOOL. FOR PURPOSES OF
 THIS DEFINITION, THE INSTRUCTION, MATERIALS, PROGRAMS  OR  OTHER  ACTIV-
 ITIES  OFFERED BY OR THROUGH AN EDUCATIONAL PROGRAM MAY INCLUDE, BUT ARE
 NOT LIMITED TO, THE FOLLOWING FEATURES:  (A)  INSTRUCTION  OR  MATERIALS
 PROMOTING  HEALTH, PHYSICAL EDUCATION, AND FAMILY AND CONSUMER SCIENCES;
 LITERARY, PERFORMING AND VISUAL ARTS; MATHEMATICS, SOCIAL STUDIES, TECH-
 NOLOGY AND SCIENTIFIC ACHIEVEMENT; (B)  INSTRUCTION  OR  PROGRAMMING  TO
 MEET  THE EDUCATION NEEDS OF AT-RISK STUDENTS OR STUDENTS WITH DISABILI-
 TIES, INCLUDING TUTORING  OR  COUNSELING;  OR  (C)  USE  OF  SPECIALIZED
 INSTRUCTIONAL  MATERIALS,  INSTRUCTORS  OR INSTRUCTION NOT PROVIDED BY A
 PUBLIC SCHOOL.
   4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTI-
 TY WHICH (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
 (C) OF SECTION FIVE HUNDRED  ONE  OF  THE  INTERNAL  REVENUE  CODE,  (B)
 COMMITS  FOR  THE  EXPENDITURE OF AT LEAST NINETY PERCENT OF THE REVENUE
 FROM QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR  AND  ANY
 INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS FOR SCHOLARSHIPS, (C) DEPOS-
 ITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALI-
 FIED  CONTRIBUTIONS  IN  AN  ACCOUNT THAT IS SEPARATE FROM THE ORGANIZA-
 TION'S OPERATING OR OTHER FUNDS UNTIL SUCH  QUALIFIED  CONTRIBUTIONS  OR
 INCOME  ARE WITHDRAWN FOR USE, AND (D) PROVIDES SCHOLARSHIPS TO ELIGIBLE
 PUPILS FOR USE AT NO FEWER THAN THREE QUALIFIED SCHOOLS.
   5. "ELIGIBLE PUPIL" MEANS A CHILD WHO (A) IS A RESIDENT OF THIS STATE,
 (B) IS SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF SECTION  THIRTY-
 TWO HUNDRED TWO OF THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR BEFORE
 DECEMBER  FIRST  OF THE YEAR IN WHICH THEY ARE ENROLLED IN A PRE-KINDER-
 GARTEN PROGRAM, (C) ATTENDS OR IS ABOUT TO ATTEND  A  QUALIFIED  SCHOOL,
 AND  (D) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED GROSS INCOME
 OF FIVE HUNDRED THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER,  FOR  HOUSE-
 HOLDS  WITH THREE OR MORE DEPENDENT CHILDREN, SUCH INCOME LEVEL SHALL BE
 INCREASED BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD IN EXCESS OF  TWO,
 NOT TO EXCEED FIVE HUNDRED FIFTY THOUSAND DOLLARS.
   6.  "LOCAL  EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH (A) IS
 EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF  SECTION
 FIVE  HUNDRED  ONE  OF THE INTERNAL REVENUE CODE, (B) IS ESTABLISHED FOR
 THE PURPOSE OF SUPPORTING AN EDUCATIONAL PROGRAM IN AT LEAST ONE  PUBLIC
 SCHOOL,  OR  PUBLIC SCHOOL DISTRICT, (C) USES AT LEAST NINETY PERCENT OF
 THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR  YEAR  AND  ANY
 INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS TO SUPPORT THE PUBLIC SCHOOL
 OR  SCHOOLS  OR  PUBLIC  SCHOOL DISTRICT OR DISTRICTS THAT SUCH FUND HAS
 BEEN ESTABLISHED TO  SUPPORT,  AND  (D)  DEPOSITS  AND  HOLDS  QUALIFIED
 CONTRIBUTIONS  AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN
 ACCOUNT THAT IS SEPARATE FROM THE FUND'S OPERATING OR OTHER FUNDS  UNTIL
 SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE.
   7.   "NONPUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
 PROGRAM  OR  ELEMENTARY,  SECONDARY  SECTARIAN  OR  NONSECTARIAN  SCHOOL
 LOCATED  IN  THIS  STATE,  OTHER THAN A PUBLIC SCHOOL, THAT IS PROVIDING

 S. 7509--B                         98
 
 INSTRUCTION AT ONE OR MORE LOCATIONS TO A  STUDENT  IN  ACCORDANCE  WITH
 SUBDIVISION TWO OF SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER.
   8.  "PUBLIC EDUCATION ENTITY" MEANS A PUBLIC SCHOOL OR A PUBLIC SCHOOL
 DISTRICT, PROVIDED THAT SUCH PUBLIC SCHOOL, OR  PUBLIC  SCHOOL  DISTRICT
 DEPOSITS  AND  HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM
 QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM  THE  PUBLIC
 SCHOOL  OR  PUBLIC SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH
 QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND IS APPROVED
 TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
   9. "PUBLIC SCHOOL" MEANS ANY FREE ELEMENTARY OR  SECONDARY  SCHOOL  IN
 THIS  STATE  GUARANTEED BY ARTICLE ELEVEN OF THE CONSTITUTION OR CHARTER
 SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THIS CHAPTER.
   10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
 A TAXPAYER TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZA-
 TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
 IS  LISTED  ON  THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE
 TAXPAYER AND FOR WHICH  THE  TAXPAYER  HAS  RECEIVED  A  CERTIFICATE  OF
 RECEIPT  FROM  SUCH  ENTITY, FUND, OR ORGANIZATION.  A CONTRIBUTION DOES
 NOT QUALIFY IF THE TAXPAYER DESIGNATES THE TAXPAYER'S CONTRIBUTION TO AN
 ENTITY OR ORGANIZATION FOR THE DIRECT BENEFIT OF ANY PARTICULAR OR SPEC-
 IFIED STUDENT.
   11. "QUALIFIED EDUCATOR" MEANS AN  INDIVIDUAL  WHO  IS  A  TEACHER  OR
 INSTRUCTOR  IN A QUALIFIED SCHOOL FOR AT LEAST NINE HUNDRED HOURS DURING
 A SCHOOL YEAR.
   12. "QUALIFIED SCHOOL" MEANS A PUBLIC SCHOOL OR NONPUBLIC SCHOOL.
   13. "SCHOLARSHIP" MEANS AN EDUCATIONAL SCHOLARSHIP  WHICH  PROVIDES  A
 TUITION  GRANT AWARDED TO AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED SCHOOL
 IN AN AMOUNT NOT TO EXCEED THE TUITION CHARGED  TO  ATTEND  SUCH  SCHOOL
 LESS  ANY  OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH ELIGIBLE PUPIL
 OR HIS OR HER PARENT, PARENTS OR  GUARDIAN  FOR  SUCH  ELIGIBLE  PUPIL'S
 TUITION; PROVIDED, HOWEVER, IN THE CASE OF AN ELIGIBLE PUPIL ATTENDING A
 PUBLIC  SCHOOL  IN A PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS NOT A
 RESIDENT, THE AMOUNT OF THE  EDUCATIONAL  SCHOLARSHIP  AWARDED  MAY  NOT
 EXCEED  THE TUITION CHARGED BY THE PUBLIC SCHOOL PURSUANT TO PARAGRAPH D
 OF SUBDIVISION FOUR OF SECTION THIRTY-TWO HUNDRED TWO  OF  THIS  CHAPTER
 LESS  ANY  OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH ELIGIBLE PUPIL
 OR HIS OR HER PARENT, PARENTS OR  GUARDIAN  FOR  SUCH  ELIGIBLE  PUPIL'S
 TUITION, BUT ONLY IF THE PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS A
 RESIDENT IS NOT REQUIRED TO PAY FOR SUCH TUITION.
   14.  "SCHOOL  IMPROVEMENT  ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTITY
 WHICH (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH  THREE  OF  SUBSECTION
 (C)  OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II) USES
 AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS  RECEIVED  DURING
 THE  CALENDAR  YEAR  AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIB-
 UTIONS TO ASSIST PUBLIC SCHOOLS OR PUBLIC SCHOOL  DISTRICTS  LOCATED  IN
 THIS  STATE IN THEIR PROVISION OF EDUCATIONAL PROGRAMS, EITHER BY MAKING
 CONTRIBUTIONS TO ONE OR MORE PUBLIC SCHOOLS OR PUBLIC  SCHOOL  DISTRICTS
 LOCATED  IN  THIS  STATE  OR  PROVIDING  EDUCATIONAL  PROGRAMS TO, OR IN
 CONJUNCTION WITH, ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL  DISTRICTS
 LOCATED  IN THIS STATE, (III) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS
 AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS IN  AN  ACCOUNT
 THAT  IS SEPARATE FROM THE ORGANIZATION'S OPERATING OR OTHER FUNDS UNTIL
 SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE,  AND  (IV)
 IS  APPROVED  TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
 SUCH ENTITY MAY ALLOW THE TAXPAYER TO CHOOSE TO  DONATE  TO  A  PROGRAM,

 S. 7509--B                         99
 
 PROJECT  OR  INITIATIVE  IDENTIFIED BY A QUALIFIED EDUCATOR FOR USE IN A
 PUBLIC SCHOOL.
   §  1211.  APPROVAL TO ISSUE CERTIFICATES OF RECEIPT. 1. PUBLIC SCHOOLS
 AND PUBLIC SCHOOL  DISTRICTS.  ALL  PUBLIC  SCHOOLS  AND  PUBLIC  SCHOOL
 DISTRICTS  SHALL  BE APPROVED TO ISSUE CERTIFICATES OF RECEIPT PROVIDED,
 THAT A PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT SHALL NOT BE APPROVED  IF
 EITHER  (A) THE PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT FAILS TO DEPOSIT
 AND HOLD QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED  FROM  QUALIFIED
 CONTRIBUTIONS  IN  AN ACCOUNT THAT IS SEPARATE FROM THE SCHOOL OR SCHOOL
 DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH  QUALIFIED  CONTRIBUTIONS
 OR  INCOME  ARE  WITHDRAWN  FOR USE, OR (B) THE COMMISSIONER HAS REVOKED
 SUCH APPROVAL FOR SUCH PUBLIC SCHOOL OR PUBLIC SCHOOL DISTRICT  PURSUANT
 TO SECTION TWELVE HUNDRED FOURTEEN OF THIS ARTICLE.
   2. SCHOOL IMPROVEMENT ORGANIZATIONS, EDUCATIONAL SCHOLARSHIP ORGANIZA-
 TIONS  AND  LOCAL  EDUCATION  FUNDS. NO SCHOOL IMPROVEMENT ORGANIZATION,
 EDUCATIONAL SCHOLARSHIP ORGANIZATION OR LOCAL EDUCATION FUND SHALL ISSUE
 ANY CERTIFICATES OF RECEIPT WITHOUT FILING AN  APPLICATION  PURSUANT  TO
 SECTION  TWELVE  HUNDRED  TWELVE  OF THIS ARTICLE AND RECEIVING APPROVAL
 PURSUANT TO SECTION TWELVE HUNDRED THIRTEEN OF THIS ARTICLE.
   § 1212. APPLICATIONS FOR APPROVAL TO ISSUE  CERTIFICATES  OF  RECEIPT.
 EACH  SCHOOL IMPROVEMENT ORGANIZATION, EDUCATIONAL SCHOLARSHIP ORGANIZA-
 TION, AND LOCAL EDUCATION  FUND  SHALL  SUBMIT  AN  APPLICATION  TO  THE
 COMMISSIONER  FOR  APPROVAL TO ISSUE CERTIFICATES OF RECEIPT IN THE FORM
 AND MANNER PRESCRIBED BY THE COMMISSIONER; PROVIDED THAT  SUCH  APPLICA-
 TION  SHALL  INCLUDE:  (A)  SUBMISSION OF DOCUMENTATION THAT SUCH SCHOOL
 IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR  EDUCATIONAL  SCHOLAR-
 SHIP  ORGANIZATION  HAS BEEN GRANTED EXEMPTION FROM TAXATION UNDER PARA-
 GRAPH THREE OF SUBSECTION (C) OF SECTION FIVE HUNDRED ONE OF THE  INTER-
 NAL  REVENUE  CODE;  (B)  THE  MOST RECENT ANNUAL FINANCIAL AUDIT, WHICH
 SHALL BE COMPLETED BY AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT  AND  A
 LIST OF NAMES AND ADDRESSES OF ALL MEMBERS OF THE GOVERNING BOARD OF THE
 SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL  EDUCATION FUND OR EDUCATIONAL
 SCHOLARSHIP ORGANIZATION; AND (C) AN EDUCATIONAL  SCHOLARSHIP  ORGANIZA-
 TION SHALL PROVIDE CRITERIA FOR THE AWARDING OF SCHOLARSHIPS TO ELIGIBLE
 STUDENTS.  NEITHER  THE COMMISSIONER OR THE DEPARTMENT SHALL REQUIRE ANY
 OTHER INFORMATION FOR SUCH APPLICATION  EXCEPT  AS  AUTHORIZED  IN  THIS
 ARTICLE OR BY SECTION FORTY-FOUR OF THE TAX LAW.
   §  1213.  APPLICATION  APPROVAL.  THE  COMMISSIONER  SHALL REVIEW EACH
 APPLICATION TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO  THIS  ARTICLE.
 APPROVAL  OR DENIAL OF AN APPLICATION SHALL BE MADE WITHIN SIXTY DAYS OF
 RECEIPT OF SUCH APPLICATION.
   § 1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF  RECEIPT.  THE
 COMMISSIONER,  IN  CONSULTATION  WITH  THE  COMMISSIONER OF TAXATION AND
 FINANCE, MAY REVOKE THE APPROVAL OF A SCHOOL  IMPROVEMENT  ORGANIZATION,
 EDUCATIONAL  SCHOLARSHIP  ORGANIZATION,  LOCAL  EDUCATION  FUND,  PUBLIC
 SCHOOL OR PUBLIC SCHOOL DISTRICT TO ISSUE CERTIFICATES OF RECEIPT UPON A
 FINDING THAT SUCH ORGANIZATION, FUND,  SCHOOL  OR  SCHOOL  DISTRICT  HAS
 VIOLATED  THIS  ARTICLE  OR  SECTION  FORTY-FOUR  OF  THE TAX LAW. THESE
 VIOLATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, ANY OF  THE  FOLLOWING:
 (A)  FAILURE  TO MEET THE REQUIREMENTS OF THIS ARTICLE OR SECTION FORTY-
 FOUR OF THE TAX LAW, (B) THE  FAILURE  TO  MAINTAIN  FULL  AND  ADEQUATE
 RECORDS  WITH RESPECT TO THE RECEIPT OF QUALIFIED CONTRIBUTIONS, (C) THE
 FAILURE TO SUPPLY SUCH RECORDS TO THE COMMISSIONER OR THE DEPARTMENT  OF
 TAXATION  AND FINANCE WHEN REQUESTED BY THE DEPARTMENT OR THE DEPARTMENT
 OF TAXATION AND FINANCE, OR (D) THE FAILURE TO  PROVIDE  NOTICE  TO  THE
 DEPARTMENT  OF  TAXATION  AND  FINANCE OF THE ISSUANCE OR NONISSUANCE OF

 S. 7509--B                         100
 
 CERTIFICATES OF RECEIPT PURSUANT TO SECTION FORTY-FOUR OF THE  TAX  LAW;
 PROVIDED HOWEVER, THAT THE COMMISSIONER SHALL NOT REVOKE APPROVAL PURSU-
 ANT  TO  THIS  SECTION  BASED UPON A VIOLATION OF THE TAX LAW UNLESS THE
 COMMISSIONER   OF   TAXATION  AND  FINANCE  AGREES  THAT  REVOCATION  IS
 WARRANTED; AND PROVIDED FURTHER THAT THE COMMISSIONER SHALL  NOT  REVOKE
 APPROVAL  PURSUANT  TO THIS SECTION WHEN THE FAILURE TO COMPLY IS DUE TO
 CLERICAL ERROR AND NOT NEGLIGENCE OR INTENTIONAL DISREGARD FOR THE  LAW.
 WITHIN FIVE DAYS OF THE DETERMINATION REVOKING APPROVAL, THE COMMISSION-
 ER  SHALL  PROVIDE NOTICE OF SUCH REVOCATION TO THE EDUCATIONAL SCHOLAR-
 SHIP ORGANIZATION,  SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL  EDUCATION
 FUND,  PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT AND TO THE DEPARTMENT OF
 TAXATION AND FINANCE.
   § 1215. RECORDKEEPING. EACH SCHOOL  IMPROVEMENT  ORGANIZATION,  EDUCA-
 TIONAL SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND
 PUBLIC  SCHOOL  DISTRICT THAT ISSUED AT LEAST ONE CERTIFICATE OF RECEIPT
 SHALL MAINTAIN RECORDS INCLUDING (A)  NOTIFICATIONS  RECEIVED  FROM  THE
 DEPARTMENT  OF  TAXATION  AND  FINANCE,  (B)  NOTIFICATIONS  MADE TO THE
 DEPARTMENT OF TAXATION AND FINANCE, (C)  COPIES  OF  QUALIFIED  CONTRIB-
 UTIONS  RECEIVED,  (D)  COPIES OF THE DEPOSIT OF SUCH QUALIFIED CONTRIB-
 UTIONS, (E) COPIES OF ISSUED CERTIFICATES OF RECEIPT, (F) ANNUAL  FINAN-
 CIAL  STATEMENTS,  (G)  IN THE CASE OF SCHOOL IMPROVEMENT ORGANIZATIONS,
 EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AND  LOCAL  EDUCATION  FUNDS,  THE
 APPLICATION  SUBMITTED PURSUANT TO SECTION TWELVE HUNDRED TWELVE OF THIS
 ARTICLE AND THE APPROVAL ISSUED BY THE COMMISSIONER, AND (H)  ANY  OTHER
 INFORMATION AS PRESCRIBED BY REGULATION PROMULGATED BY THE COMMISSIONER.
   §  1216.  JOINT  ANNUAL  REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR
 EACH CALENDAR YEAR, THE COMMISSIONER OF TAXATION  AND  FINANCE  AND  THE
 COMMISSIONER,  JOINTLY,  SHALL  SUBMIT  A  WRITTEN REPORT AS PROVIDED IN
 SUBDIVISION (K) OF SECTION FORTY-FOUR OF THE TAX LAW.
   § 1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON  AN
 EMERGENCY  BASIS  REGULATIONS  NECESSARY  FOR THE IMPLEMENTATION OF THIS
 SECTION. THE COMMISSIONER SHALL MAKE  ANY  APPLICATION  REQUIRED  TO  BE
 FILED PURSUANT TO THIS ARTICLE AVAILABLE TO APPLICANTS WITHIN SIXTY DAYS
 OF THE EFFECTIVE DATE OF THIS ARTICLE.
   §  11.  The education law is amended by adding a new section 1503-a to
 read as follows:
   § 1503-A. POWER TO ACCEPT AND SOLICIT GIFTS AND  DONATIONS.    1.  ALL
 SCHOOL DISTRICTS ORGANIZED BY SPECIAL LAWS OR PURSUANT TO THE PROVISIONS
 OF  A  GENERAL  LAW ARE HEREBY AUTHORIZED AND EMPOWERED TO ACCEPT GIFTS,
 DONATIONS, AND CONTRIBUTIONS TO THE DISTRICT AND TO SOLICIT THE SAME.
   2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER
 GENERAL OR SPECIAL LAW TO THE  CONTRARY,  THE  RECEIPT  OF  SUCH  GIFTS,
 DONATIONS,  CONTRIBUTIONS AND OTHER FUNDS, AND ANY INCOME DERIVED THERE-
 FROM, SHALL BE DISREGARDED  FOR  THE  PURPOSES  OF  ALL  APPORTIONMENTS,
 COMPUTATIONS, AND DETERMINATIONS OF STATE AID.
   §  12.  Severability.  If any provision of this act or the application
 thereof to any person or circumstances is held invalid, such  invalidity
 shall  not affect other provisions or applications of this act which can
 be given effect without the invalid provision  or  application,  and  to
 this end the provisions of this act are declared to be severable.
   §  13. This act shall take effect immediately and shall apply to taxa-
 ble years beginning on and after January 1, 2019.
 
                                 PART PPP

 S. 7509--B                         101
 
   Section 1. Subdivision 41 of section 1301 of the  racing,  pari-mutuel
 wagering  and breeding law, as added by chapter 174 of the laws of 2013,
 is amended and a new subdivision 43 is added to read as follows:
   41. "Table game". A game, INCLUDING DEALER-CONTROLLED ELECTRONIC TABLE
 GAMES,  other than a slot machine, which is authorized by the commission
 to be played in a gaming facility.
   43. "DEALER-CONTROLLED ELECTRONIC TABLE GAME". A TABLE  GAME  OPERATED
 BY  A  LIVE  DEALER IN WHICH THE OUTCOME IS DETERMINED BY THE ACTIONS OF
 THE DEALER, THAT USES ELECTRONICS AS PART OF  THE  GAME'S  OPERATION  IN
 CONNECTION  WITH  THE COLLECTION AND PAYOFF OF WAGERS, BUT NOT TO DETER-
 MINE THE GAME OUTCOME.
   § 2. Section 1348 of the racing,  pari-mutuel  wagering  and  breeding
 law,  as added by chapter 174 of the laws of 2013, is amended to read as
 follows:
   § 1348. Machine and table fees. In addition to any other  tax  or  fee
 imposed by this article, there shall be imposed an annual license fee of
 five  hundred  dollars  for  each slot machine and table approved by the
 commission for use by a gaming licensee at a gaming facility;  provided,
 however,  that  not  sooner  than  five years after award of an original
 gaming  license,  the  commission  may  annually  adjust  the  fee   for
 inflation.  The  fee  shall be imposed as of July first of each year for
 all approved slot machines and [tables] TABLE GAMES,  INCLUDING  DEALER-
 CONTROLLED ELECTRONIC TABLE GAMES, on that date and shall be assessed on
 a  pro  rata basis for any slot machine or table, INCLUDING DEALER-CONT-
 ROLLED ELECTRONIC TABLE GAMES, approved for use thereafter.
   Such assessed fees shall  be  deposited  into  the  commercial  gaming
 revenue  fund established pursuant to section one thousand three hundred
 fifty-two of this article.
   § 3. This act shall take effect immediately.
 
                                 PART QQQ

   Section 1. Paragraph 3 of subdivision i of section 1617-a of  the  tax
 law,  as  amended  by  section 1 of part SS of chapter 60 of the laws of
 2016, is amended to read as follows:
   (3) For each video lottery facility, the annual value of the free play
 allowance credits authorized for use by the operator  pursuant  to  this
 subdivision  shall  not exceed an amount equal to fifteen percent of the
 total amount wagered on video  lottery  games  after  payout  of  prizes
 PROVIDED, HOWEVER, IF A VIDEO LOTTERY FACILITY IS LOCATED IN DEVELOPMENT
 ZONE TWO AS DEFINED BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-
 MUTUEL  WAGERING AND BREEDING LAW, AND THE NEAREST COMMERCIAL CASINO, AS
 DEFINED BY SECTION THIRTEEN  HUNDRED  ONE  OF  THE  RACING,  PARI-MUTUEL
 WAGERING  AND BREEDING LAW, IS GIVEN A GREATER THAN FIFTEEN PERCENT FREE
 PLAY ALLOWANCE, THE  VIDEO  LOTTERY  FACILITY  SHALL  RECEIVE  THE  SAME
 PERCENTAGE  OF  FREE  PLAY  ALLOWANCE  CREDITS AS ALLOWED TO THE NEAREST
 COMMERCIAL CASINO.  The gaming commission shall establish procedures  to
 assure that free play allowance credits do not exceed such amount.
   § 2. This act shall take effect immediately.
 
                                 PART RRR
 
   Section  1.  The  racing,  pari-mutuel  wagering  and  breeding law is
 amended by adding a new article 15 to read as follows:
                                ARTICLE 15
                            INTERACTIVE GAMING

 S. 7509--B                         102

 SECTION 1500. LEGISLATIVE FINDINGS AND PURPOSE.
         1501. DEFINITIONS.
         1502. AUTHORIZATION.
         1503. REQUIRED SAFEGUARDS/MINIMUM STANDARDS.
         1504. SCOPE OF LICENSING REVIEW.
         1505. STATE TAX.
         1506. DISPOSITION OF TAXES.
   § 1500. LEGISLATIVE FINDINGS AND PURPOSE. THE LEGISLATURE HEREBY FINDS
 AND  DECLARES  THAT: 1. UNDER THE NEW YORK PENAL LAW A PERSON ENGAGES IN
 GAMBLING WHEN HE OR SHE STAKES OR RISKS  SOMETHING  OF  VALUE  UPON  THE
 OUTCOME  OF  A  CONTEST OF CHANCE OR A FUTURE CONTINGENT EVENT NOT UNDER
 HIS OR HER CONTROL OR INFLUENCE, UPON AN AGREEMENT OR UNDERSTANDING THAT
 HE OR SHE WILL RECEIVE SOMETHING OF VALUE IN  THE  EVENT  OF  A  CERTAIN
 OUTCOME.
   2.  A CONTEST OF CHANCE IS DEFINED AS ANY CONTEST, GAME, GAMING SCHEME
 OR GAMING DEVICE IN WHICH THE OUTCOME DEPENDS IN A MATERIAL DEGREE  UPON
 AN  ELEMENT OF CHANCE, NOTWITHSTANDING THAT SKILL OF THE CONTESTANTS MAY
 ALSO BE A FACTOR THEREIN. (SUBDIVISION 1 OF SECTION 225.00 OF THE  PENAL
 LAW).  THUS,  GAMES OF CHANCE MAY INVOLVE SOME SKILL, BUT IN THOSE GAMES
 THE LEVEL OF SKILL DOES NOT DETERMINE  THE  OUTCOME  REGARDLESS  OF  THE
 DEGREE  OF  SKILL EMPLOYED. SEE PEOPLE V. TURNER, 165 MISC. 2D 222, 224,
 629 N.Y.S.2D 661, 662 (CRIM. CT. 1995).  ON  THE  OTHER  HAND,  WHERE  A
 CONTEST  PITS  THE  SKILL  LEVELS OF THE PLAYERS AGAINST EACH OTHER, NEW
 YORK COURTS HAVE FOUND A GAME TO BE ONE OF SKILL RATHER THAN CHANCE. SEE
 PEOPLE V. HUNT, 162 MISC. 2D 70, 72, 616 N.Y.S.2D 168,  170  (CRIM.  CT.
 1994)  ("PLAYED  FAIRLY, SKILL RATHER THAN CHANCE IS THE MATERIAL COMPO-
 NENT OF THREE-CARD MONTE.");
   3. POKER IN MANY INSTANCES HAS BEEN DEFINED AS A GAME OF SKILL  AND  A
 NEW  YORK FEDERAL COURT IN U.S. V. DICRISTINA, 886 F. SUPP. 2D 164, 224,
 ASSESSED THAT UNDER FEDERAL LAW POKER WAS PREDOMINANTLY A GAME OF SKILL;
   4. NEW YORK COURTS HAVE INTERPRETED NEW  YORK  LAW  TO  APPLY  A  MORE
 RIGOROUS  TEST  IN  IDENTIFYING A "CONTEST OF CHANCE" THAN IS APPLIED BY
 MOST STATES IN THIS NATION AND  THE  COURTS  HAVE  FOUND  THAT  WHERE  A
 CONTEST  PITS  THE SKILL LEVELS OF THE PLAYERS AGAINST EACH OTHER, THOSE
 GAMES ARE GAMES OF SKILL AND  NOT  GAMES  OF  CHANCE.  FURTHERMORE,  THE
 COURTS  HAVE  NOT  LIMITED  THE  LEGISLATURE'S ABILITY TO DETERMINE THAT
 CERTAIN FORMS OF POKER SHOULD FALL OUTSIDE  THE  GENERAL  DEFINITION  OF
 GAMBLING SINCE THOSE GAMES ARE GAMES OF SKILL;
   5.  TEXAS  HOLD'EM  POKER  INVOLVES  TWO CARDS DEALT FACE DOWN TO EACH
 PLAYER AND THEN FIVE COMMUNITY CARDS PLACED FACE-UP  BY  THE  DEALER,  A
 SERIES  OF  THREE, THEN TWO ADDITIONAL SINGLE CARDS, WITH PLAYERS DETER-
 MINING WHETHER TO CHECK, BET, RAISE  OR  FOLD  AFTER  EACH  DEAL.  OMAHA
 HOLD'EM  POKER  IS  A  SIMILAR  GAME, IN WHICH EACH PLAYER IS DEALT FOUR
 CARDS AND MAKES HIS OR HER BEST HAND USING EXACTLY  TWO  OF  THEM,  PLUS
 EXACTLY THREE OF THE FIVE COMMUNITY CARDS. THESE GAMES ARE CONSIDERED TO
 BE  COMPLEX  FORMS  OF POKER WHICH INVOLVE PLAYER STRATEGY AND DECISION-
 MAKING AND WHICH PIT THE SKILL LEVELS OF THE PLAYERS AGAINST EACH OTHER.
 AS GAMES OF SKILL, THESE FORMS OF POKER DO NOT FALL UNDER THE DEFINITION
 OF GAMBLING AS PROHIBITED BY THE PENAL LAW; AND
   6. THE LEGISLATURE FURTHER FINDS THAT AS THE INTERNET  HAS  BECOME  AN
 INTEGRAL  PART  OF  SOCIETY,  AND  INTERNET POKER A MAJOR FORM OF ENTER-
 TAINMENT FOR MANY CONSUMERS,  ANY  INTERACTIVE  GAMING  ENFORCEMENT  AND
 REGULATORY  STRUCTURE  MUST  BEGIN FROM THE BEDROCK PREMISE THAT PARTIC-
 IPATION IN A LAWFUL AND LICENSED GAMING INDUSTRY IS A PRIVILEGE AND  NOT
 A  RIGHT,  AND  THAT  REGULATORY  OVERSIGHT IS INTENDED TO SAFEGUARD THE

 S. 7509--B                         103
 
 INTEGRITY OF THE GAMES AND PARTICIPANTS AND TO ENSURE ACCOUNTABILITY AND
 THE PUBLIC TRUST.
   §  1501.  DEFINITIONS.  AS  USED  IN THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1. "AUTHORIZED GAME" MEANS OMAHA HOLD'EM AND TEXAS HOLD'EM  POKER,  AS
 WELL AS ANY OTHER POKER GAME THAT THE COMMISSION DETERMINES IS THE MATE-
 RIAL  EQUIVALENT  OF  EITHER OF THOSE, WHETHER IN A CASH GAME OR TOURNA-
 MENT.
   2. "AUTHORIZED PARTICIPANTS" MEANS PERSONS WHO ARE  EITHER  PHYSICALLY
 PRESENT  IN THIS STATE WHEN PLACING A WAGER OR WHO OTHERWISE ARE PERMIT-
 TED BY APPLICABLE LAW, AS DETERMINED  BY  THE  COMMISSION,  TO  PLACE  A
 WAGER.  THE  INTERMEDIATE  ROUTING OF ELECTRONIC DATA IN CONNECTION WITH
 INTERACTIVE GAMING SHALL NOT DETERMINE  THE  LOCATION  OR  LOCATIONS  IN
 WHICH A WAGER IS INITIATED, RECEIVED OR OTHERWISE MADE.
   3.  "CORE  FUNCTION"  MEANS  ANY OF THE FOLLOWING: (A) THE MANAGEMENT,
 ADMINISTRATION OR CONTROL OF  WAGERS  ON  INTERACTIVE  GAMING;  (B)  THE
 MANAGEMENT,  ADMINISTRATION  OR  CONTROL  OF  THE GAMES WITH WHICH THOSE
 WAGERS ARE ASSOCIATED; OR (C) THE DEVELOPMENT, MAINTENANCE, PROVISION OR
 OPERATION OF AN INTERACTIVE GAMING PLATFORM.
   4. "COMMISSION" MEANS THE NEW YORK STATE GAMING COMMISSION.
   5. "COVERED ASSET" MEANS ANY OF THE FOLLOWING CATEGORIES OF ASSETS  IF
 USED  IN CONNECTION WITH THE KNOWING AND WILLFUL ACCEPTANCE OF ANY WAGER
 FROM PERSONS LOCATED IN THE UNITED STATES OF  ANY  FORM  OF  INTERACTIVE
 GAMING (INCLUDING BUT NOT LIMITED TO POKER) AFTER DECEMBER THIRTY-FIRST,
 TWO  THOUSAND  SIX, THAT HAS NOT BEEN AFFIRMATIVELY AUTHORIZED BY LAW OF
 THE UNITED STATES OR OF EACH STATE IN WHICH PERSONS  MAKING  SUCH  WAGER
 WERE  LOCATED:  (A)  ANY  TRADEMARK, TRADE NAME, SERVICE MARK OR SIMILAR
 INTELLECTUAL PROPERTY THAT WAS USED TO IDENTIFY ANY ASPECT OF THE INTER-
 NET WEBSITE OR OF THE OPERATOR OFFERING  THE  WAGERS  OR  GAMES  TO  ITS
 PATRONS;  (B)  ANY  DATABASE OR CUSTOMER LIST OF INDIVIDUALS RESIDING IN
 THE UNITED STATES WHO PLACED SUCH WAGERS; (C) ANY DERIVATIVE OF A  DATA-
 BASE OR CUSTOMER LIST DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION; OR
 (D) AN ASSET USED TO PROVIDE A CORE FUNCTION.
   6.  "DIVISION"  MEANS  THE DIVISION OF GAMING, ESTABLISHED UNDER PARA-
 GRAPH (C) OF SUBDIVISION TWO OF SECTION ONE HUNDRED THREE OF THIS  CHAP-
 TER.
   7.  "INTERACTIVE GAMING" MEANS THE CONDUCT OF GAMES THROUGH THE USE OF
 THE INTERNET OR OTHER COMMUNICATIONS TECHNOLOGY THAT  ALLOWS  A  PERSON,
 UTILIZING  MONEY,  CHECKS,  ELECTRONIC  CHECKS,  ELECTRONIC TRANSFERS OF
 MONEY, CREDIT CARDS, DEBIT CARDS OR ANY OTHER INSTRUMENTALITY, TO TRANS-
 MIT TO A COMPUTER INFORMATION TO ASSIST IN THE PLACING OF  A  WAGER  AND
 CORRESPONDING  INFORMATION  RELATED  TO  THE  DISPLAY  OF THE GAME, GAME
 OUTCOMES OR OTHER SIMILAR INFORMATION. THE TERM  DOES  NOT  INCLUDE  THE
 CONDUCT  OF  (A)  NON-GAMBLING  GAMES  THAT  DO  NOT OTHERWISE REQUIRE A
 LICENSE UNDER STATE OR FEDERAL LAW; OR (B)  GAMES  THAT  OCCUR  ENTIRELY
 AMONG  PARTICIPANTS  WHO  ARE LOCATED ON A LICENSED CASINO PREMISES. FOR
 PURPOSES OF THIS PROVISION, "COMMUNICATIONS TECHNOLOGY" MEANS ANY METHOD
 USED AND THE COMPONENTS EMPLOYED BY AN ESTABLISHMENT TO  FACILITATE  THE
 TRANSMISSION OF INFORMATION, INCLUDING, WITHOUT LIMITATION, TRANSMISSION
 AND  RECEPTION BY SYSTEMS BASED ON WIRE, CABLE, RADIO, MICROWAVE, LIGHT,
 OPTICS OR COMPUTER DATA NETWORKS,  INCLUDING,  WITHOUT  LIMITATION,  THE
 INTERNET AND INTRANETS.
   8. "INTERACTIVE GAMING GROSS REVENUE" MEANS THE TOTAL OF ALL SUMS PAID
 TO A LICENSEE FROM INTERACTIVE GAMING INVOLVING AUTHORIZED PARTICIPANTS,
 LESS  ONLY  THE  TOTAL  OF  ALL SUMS PAID OUT AS WINNINGS TO PATRONS AND
 PROMOTIONAL GAMING CREDITS; PROVIDED, HOWEVER, THAT THE CASH  EQUIVALENT

 S. 7509--B                         104
 
 VALUE  OF ANY MERCHANDISE OR OTHER NON-CASH THING OF VALUE INCLUDED IN A
 CONTEST OR TOURNAMENT SHALL NOT BE INCLUDED IN THE  TOTAL  OF  ALL  SUMS
 PAID  OUT AS WINNINGS TO PLAYERS FOR PURPOSES OF DETERMINING INTERACTIVE
 GAMING GROSS REVENUE.
   (A) NEITHER AMOUNTS DEPOSITED WITH A LICENSEE FOR PURPOSES OF INTERAC-
 TIVE  GAMING  NOR AMOUNTS TAKEN IN FRAUDULENT ACTS PERPETRATED AGAINST A
 LICENSEE FOR WHICH THE LICENSEE IS NOT REIMBURSED SHALL BE CONSIDERED TO
 HAVE BEEN "PAID" TO THE LICENSEE FOR PURPOSES OF CALCULATING INTERACTIVE
 GAMING GROSS REVENUE.
   (B) "PROMOTIONAL GAMING CREDIT" INCLUDES BONUSES, PROMOTIONS  AND  ANY
 AMOUNT  RECEIVED  BY A LICENSEE FROM A PATRON FOR WHICH THE LICENSEE CAN
 DEMONSTRATE THAT IT OR ITS AFFILIATE HAS NOT RECEIVED CASH.
   9. "INTERACTIVE GAMING PLATFORM" MEANS THE  COMBINATION  OF  HARDWARE,
 SOFTWARE  AND DATA NETWORKS USED TO MANAGE, ADMINISTER OR CONTROL WAGERS
 ON INTERACTIVE GAMING OR THE GAMES WITH WHICH THOSE WAGERS  ARE  ASSOCI-
 ATED.
   10.  "INTERNET"  MEANS  A  COMPUTER  NETWORK  OF INTEROPERABLE PACKET-
 SWITCHED DATA NETWORKS.
   11. "LICENSEE" MEANS A PERSON WHO IS LICENSED  BY  THE  COMMISSION  TO
 OFFER  INTERACTIVE  GAMING,  USING  AN  INTERACTIVE  GAMING  PLATFORM TO
 AUTHORIZED PARTICIPANTS. A LICENSEE  MAY  UTILIZE  MULTIPLE  INTERACTIVE
 GAMING  PLATFORMS PROVIDED THAT EACH PLATFORM IS APPROVED BY THE COMMIS-
 SION.
   12. "OMAHA HOLD'EM POKER" MEANS  THE  POKER  GAME  MARKETED  AS  OMAHA
 HOLD'EM  POKER  OR  OMAHA POKER IN WHICH EACH PLAYER IS DEALT FOUR CARDS
 AND MUST MAKE HIS OR HER BEST HAND  USING  EXACTLY  TWO  OF  THEM,  PLUS
 EXACTLY THREE OF THE FIVE COMMUNITY CARDS.
   13.  "SIGNIFICANT  VENDOR" MEANS ANY PERSON WHO OFFERS OR WHO PROPOSES
 TO OFFER ANY OF THE  FOLLOWING  SERVICES  WITH  RESPECT  TO  INTERACTIVE
 GAMING:    (A)  A CORE FUNCTION; (B) SALE, LICENSING OR OTHER RECEIPT OF
 COMPENSATION FOR SELLING OR LICENSING A DATABASE  OR  CUSTOMER  LIST  OF
 INDIVIDUALS  RESIDING  IN THE UNITED STATES SELECTED IN WHOLE OR IN PART
 BECAUSE THEY PLACED WAGERS OR PARTICIPATED IN  GAMBLING  GAMES  WITH  OR
 THROUGH  AN  INTERNET  WEBSITE  OR OPERATOR (OR ANY DERIVATIVE OF SUCH A
 DATABASE OR CUSTOMER LIST); (C) PROVISION OF ANY  TRADEMARK,  TRADENAME,
 SERVICE  MARK OR SIMILAR INTELLECTUAL PROPERTY UNDER WHICH A LICENSEE OR
 SIGNIFICANT VENDOR IDENTIFIES INTERACTIVE GAMES  TO  CUSTOMERS;  OR  (D)
 PROVISION  OF ANY PRODUCT, SERVICE OR ASSET TO A LICENSEE OR SIGNIFICANT
 VENDOR IN RETURN FOR A PERCENTAGE OF  INTERACTIVE  GAMING  REVENUE  (NOT
 INCLUDING  FEES  TO  FINANCIAL  INSTITUTIONS  AND  PAYMENT PROVIDERS FOR
 FACILITATING A DEPOSIT OR WITHDRAWAL BY AN AUTHORIZED PARTICIPANT).  THE
 TERM "SIGNIFICANT VENDOR" SHALL NOT  INCLUDE  A  PROVIDER  OF  GOODS  OR
 SERVICES  TO  A  LICENSEE THAT ARE NOT SPECIFICALLY DESIGNED FOR USE AND
 NOT PRINCIPALLY USED IN CONNECTION WITH INTERACTIVE GAMING.
   14. "TEXAS HOLD'EM POKER" MEANS THE TYPE OF POKER  MARKETED  AS  TEXAS
 HOLD'EM  POKER  THAT  INVOLVES  TWO  CARDS BEING DEALT FACE DOWN TO EACH
 PLAYER AND THEN FIVE COMMUNITY CARDS BEING PLACED FACE-UP BY THE DEALER,
 A SERIES OF THREE THEN TWO ADDITIONAL SINGLE CARDS, WITH PLAYERS  HAVING
 THE OPTION TO CHECK, BET, RAISE OR FOLD AFTER EACH DEAL.
   §  1502.  AUTHORIZATION.   1. THE COMMISSION SHALL, WITHIN ONE HUNDRED
 EIGHTY DAYS OF THE DATE THIS ARTICLE BECOMES LAW, PROMULGATE REGULATIONS
 TO IMPLEMENT INTERACTIVE GAMING IN THIS STATE AND SHALL AUTHORIZE UP  TO
 ELEVEN  LICENSES  TO  OPERATE  INTERACTIVE  GAMING  INVOLVING AUTHORIZED
 PARTICIPANTS, SUBJECT TO THE PROVISIONS OF THIS ARTICLE AND OTHER APPLI-
 CABLE PROVISIONS OF LAW.

 S. 7509--B                         105
 
   2. APPLICANTS ELIGIBLE TO APPLY FOR A LICENSE AS AN OPERATOR  PURSUANT
 TO THIS ARTICLE SHALL BE THOSE ENTITIES:
   (A)  LICENSED  BY THE STATE PURSUANT TO SECTION SIXTEEN HUNDRED SEVEN-
 TEEN-A OF THE TAX LAW TO OPERATE VIDEO LOTTERY GAMING AND HAS EXPERIENCE
 IN THE OPERATION OF INTERACTIVE GAMING BY BEING LICENSED IN A STATE WITH
 COMPARABLE LICENSING REQUIREMENTS OR GUARANTEES ACQUISITION OF  ADEQUATE
 BUSINESS  COMPETENCE  AND  EXPERIENCE  IN  THE  OPERATION OF INTERACTIVE
 GAMING; OR
   (B) LICENSED BY THE STATE TO  OPERATE  A  CLASS  III  GAMING  FACILITY
 PURSUANT  TO  ARTICLE THIRTEEN OF THIS CHAPTER AND HAS EXPERIENCE IN THE
 OPERATION OF INTERACTIVE GAMING BY BEING LICENSED IN A STATE WITH COMPA-
 RABLE LICENSING REQUIREMENTS OR GUARANTEES ACQUISITION OF ADEQUATE BUSI-
 NESS COMPETENCE AND EXPERIENCE IN THE OPERATION OF INTERACTIVE GAMING.
   3. THE COMMISSION SHALL, TO THE EXTENT PRACTICABLE, ISSUE LICENSES  TO
 MULTIPLE  APPLICANTS  NO  SOONER  THAN ONE HUNDRED EIGHTY DAYS AFTER THE
 PROMULGATION OF REGULATIONS IN ORDER TO ENSURE A ROBUST AND  COMPETITIVE
 MARKET  FOR  CONSUMERS  AND  TO  PREVENT EARLY LICENSEES FROM GAINING AN
 UNFAIR COMPETITIVE ADVANTAGE.
   4. NO PERSON MAY OPERATE, MANAGE  OR  MAKE  AVAILABLE  AN  INTERACTIVE
 GAMING  PLATFORM OR ACT AS A SIGNIFICANT VENDOR WITH RESPECT TO INTERAC-
 TIVE GAMING THAT IS OFFERED TO PERSONS  LOCATED  IN  THIS  STATE  UNLESS
 LICENSED BY THE COMMISSION PURSUANT TO THIS ARTICLE AND ONLY THOSE GAMES
 AUTHORIZED BY THE COMMISSION SHALL BE PERMITTED.
   5.  LICENSE  APPLICANTS MAY FORM A PARTNERSHIP, JOINT VENTURE OR OTHER
 CONTRACTUAL ARRANGEMENT IN ORDER TO  FACILITATE  THE  PURPOSES  OF  THIS
 ARTICLE.
   6. ANY PERSON FOUND SUITABLE BY THE COMMISSION MAY BE ISSUED A LICENSE
 AS AN OPERATOR OR SIGNIFICANT VENDOR PURSUANT TO THIS ARTICLE. IN DETER-
 MINING SUITABILITY, THE COMMISSION SHALL CONSIDER THOSE FACTORS IT DEEMS
 RELEVANT IN ITS DISCRETION, INCLUDING BUT NOT LIMITED TO:
   (A)  WHETHER  THE APPLICANT IS A PERSON OF GOOD CHARACTER, HONESTY AND
 INTEGRITY;
   (B) WHETHER THE APPLICANT IS PERSON WHOSE PRIOR  ACTIVITIES,  CRIMINAL
 RECORD, IF ANY, REPUTATION, HABITS AND ASSOCIATIONS DO NOT:
   (I)  POSE  A  THREAT  TO THE PUBLIC INTEREST OR TO THE EFFECTIVE REGU-
 LATION AND CONTROL OF INTERACTIVE GAMING; OR
   (II) CREATE OR ENHANCE THE DANGERS OF UNSUITABLE,  UNFAIR  OR  ILLEGAL
 PRACTICES,  METHODS  AND ACTIVITIES IN THE CONDUCT OF INTERACTIVE GAMING
 OR IN THE CARRYING ON OF THE BUSINESS AND FINANCIAL  ARRANGEMENTS  INCI-
 DENTAL TO SUCH GAMING;
   (C)  WHETHER  THE  APPLICANT  IS  CAPABLE OF AND LIKELY TO CONDUCT THE
 ACTIVITIES FOR WHICH THE APPLICANT IS LICENSED IN  ACCORDANCE  WITH  THE
 PROVISIONS  OF THIS ARTICLE, ANY REGULATIONS PRESCRIBED UNDER THIS ARTI-
 CLE AND ALL OTHER APPLICABLE LAWS;
   (D) WHETHER THE APPLICANT HAS OR GUARANTEES  ACQUISITION  OF  ADEQUATE
 BUSINESS  COMPETENCE  AND EXPERIENCE IN THE OPERATION OF LICENSED GAMING
 OR OF INTERACTIVE GAMING IN THIS STATE OR IN  A  STATE  WITH  COMPARABLE
 LICENSING REQUIREMENTS;
   (E)  WHETHER THE APPLICANT HAS OR WILL OBTAIN SUFFICIENT FINANCING FOR
 THE NATURE OF THE PROPOSED OPERATION AND FROM A SUITABLE SOURCE; AND
   (F) WHETHER THE APPLICANT:
   (I) HAS AT ANY TIME, EITHER DIRECTLY, OR THROUGH ANOTHER  PERSON  WHOM
 IT OWNED, IN WHOLE OR IN SIGNIFICANT PART, OR CONTROLLED:
   (A)  KNOWINGLY  AND  WILLFULLY  ACCEPTED  OR  MADE AVAILABLE WAGERS ON
 INTERACTIVE GAMING (INCLUDING POKER) FROM PERSONS LOCATED IN THE  UNITED
 STATES AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND SIX, UNLESS SUCH WAGERS

 S. 7509--B                         106
 
 WERE  AFFIRMATIVELY  AUTHORIZED  BY  LAW OF THE UNITED STATES OR OF EACH
 STATE IN WHICH PERSONS MAKING SUCH WAGERS WERE LOCATED; OR
   (B)  KNOWINGLY FACILITATED OR OTHERWISE PROVIDED SERVICES WITH RESPECT
 TO INTERACTIVE GAMING (INCLUDING POKER) INVOLVING PERSONS LOCATED IN THE
 UNITED STATES FOR A PERSON DESCRIBED IN CLAUSE (A) OF THIS  SUBPARAGRAPH
 AND  ACTED  WITH  KNOWLEDGE  OF THE FACT THAT SUCH WAGERS OR INTERACTIVE
 GAMING INVOLVED PERSONS LOCATED IN THE UNITED STATES; OR
   (II) HAS PURCHASED OR ACQUIRED, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN
 SIGNIFICANT PART, A PERSON DESCRIBED IN SUBPARAGRAPH (I) OF  THIS  PARA-
 GRAPH  OR  WILL  USE  THAT  PERSON OR A COVERED ASSET IN CONNECTION WITH
 INTERACTIVE GAMING LICENSED PURSUANT TO THIS ARTICLE.
   7. THE COMMISSION FURTHER SHALL DEVELOP STANDARDS BY WHICH TO EVALUATE
 AND APPROVE  INTERACTIVE  GAMING  PLATFORMS  FOR  USE  WITH  INTERACTIVE
 GAMING.  INTERACTIVE GAMING PLATFORMS MUST BE APPROVED BY THE COMMISSION
 BEFORE BEING USED BY A LICENSEE OR SIGNIFICANT VENDOR TO CONDUCT  INTER-
 ACTIVE GAMING IN THIS STATE.
   8.  THE  COMMISSION SHALL REQUIRE ALL LICENSEES TO OPERATE INTERACTIVE
 GAMING TO PAY A ONE-TIME FEE OF TEN MILLION DOLLARS.  SUCH FEE  PAID  BY
 EACH  LICENSEE  SHALL  BE  APPLIED  TO  SATISFY, IN WHOLE OR IN PART, AS
 APPLICABLE, THAT LICENSEE'S TAX OBLIGATION PURSUANT TO  SECTION  FIFTEEN
 HUNDRED  FIVE OF THIS ARTICLE IN SIXTY EQUAL MONTHLY INSTALLMENTS, ALLO-
 CATED TO EACH OF THE FIRST SIXTY MONTHS OF TAX OWED AFTER  THE  LICENSEE
 HAS  BEGUN  OPERATING  INTERACTIVE  GAMING  PURSUANT TO THIS ARTICLE. NO
 AMOUNTS NOT REQUIRED TO BE USED TO SATISFY SUCH  TAX  OBLIGATION  DURING
 THAT  PERIOD  SHALL BE ALLOCATED TO PAYMENT OF SUCH TAX OBLIGATION AFTER
 THAT PERIOD.
   9. LICENSES TO OPERATE INTERACTIVE GAMING  ISSUED  BY  THE  COMMISSION
 SHALL REMAIN IN EFFECT FOR TEN YEARS.
   10.  THE  COMMISSION,  BY REGULATION, MAY AUTHORIZE AND PROMULGATE ANY
 RULES NECESSARY TO IMPLEMENT AGREEMENTS WITH OTHER STATES, OR AUTHORIZED
 AGENCIES THEREOF (A) TO ENABLE PATRONS IN THOSE STATES TO PARTICIPATE IN
 INTERACTIVE GAMING OFFERED BY LICENSEES UNDER THIS  ARTICLE  OR  (B)  TO
 ENABLE  PATRONS  IN  THIS  STATE  TO  PARTICIPATE  IN INTERACTIVE GAMING
 OFFERED BY LICENSEES UNDER THE LAWS OF THOSE OTHER STATES, PROVIDED THAT
 SUCH OTHER STATE OR AUTHORIZED AGENCY APPLIES SUITABILITY STANDARDS  AND
 REVIEW MATERIALLY CONSISTENT WITH THE PROVISIONS OF THIS ARTICLE.
   11.  ANY  REGULATIONS  ADOPTED  PURSUANT  TO  SUBDIVISION  TEN OF THIS
 SECTION MUST SET FORTH PROVISIONS THAT ADDRESS:
   (A) ANY ARRANGEMENTS TO SHARE REVENUE BETWEEN NEW YORK AND  ANY  OTHER
 STATE OR AGENCY WITHIN ANOTHER STATE; AND
   (B) ARRANGEMENTS TO ENSURE THE INTEGRITY OF INTERACTIVE GAMING OFFERED
 PURSUANT  TO ANY SUCH AGREEMENT AND THE PROTECTION OF PATRONS LOCATED IN
 THIS STATE.
   12. THE COMMISSION MAY DELEGATE ITS RESPONSIBILITIES TO ADMINISTER THE
 PROVISIONS OF THIS ARTICLE TO THE DIVISION, AS IT SEES FIT,  EXCEPT  FOR
 ITS RESPONSIBILITIES TO APPROVE LICENSES.
   §  1503.  REQUIRED SAFEGUARDS/MINIMUM STANDARDS.  THE COMMISSION SHALL
 REQUIRE LICENSEES TO IMPLEMENT MEASURES TO MEET THE STANDARDS SET OUT IN
 THIS SECTION, ALONG WITH SUCH OTHER STANDARDS THAT THE COMMISSION IN ITS
 DISCRETION MAY CHOOSE TO REQUIRE.
   (A) APPROPRIATE SAFEGUARDS  TO  ENSURE,  TO  A  REASONABLE  DEGREE  OF
 CERTAINTY,  THAT PARTICIPANTS IN INTERACTIVE GAMING ARE NOT YOUNGER THAN
 TWENTY-ONE YEARS OF AGE.
   (B) APPROPRIATE SAFEGUARDS  TO  ENSURE,  TO  A  REASONABLE  DEGREE  OF
 CERTAINTY,  THAT  PARTICIPANTS  IN  INTERACTIVE  GAMING  ARE  PHYSICALLY

 S. 7509--B                         107
 
 LOCATED WITHIN THE STATE OR SUCH OTHER JURISDICTION THAT THE  COMMISSION
 HAS DETERMINED TO BE PERMISSIBLE.
   (C)  APPROPRIATE  SAFEGUARDS  TO  PROTECT,  TO  A REASONABLE DEGREE OF
 CERTAINTY, THE PRIVACY AND ONLINE SECURITY OF PARTICIPANTS  IN  INTERAC-
 TIVE GAMING.
   (D)  APPROPRIATE  SAFEGUARDS  TO  ENSURE,  TO  A  REASONABLE DEGREE OF
 CERTAINTY, THAT THE INTERACTIVE GAMING  IS  FAIR  AND  HONEST  AND  THAT
 APPROPRIATE  MEASURES  ARE  IN PLACE TO DETER, DETECT AND, TO THE EXTENT
 REASONABLY POSSIBLE, TO PREVENT CHEATING, INCLUDING COLLUSION,  AND  USE
 OF  CHEATING  DEVICES,  INCLUDING  USE  OF  SOFTWARE PROGRAMS (SOMETIMES
 REFERRED TO AS "BOTS") THAT MAKE BETS OR WAGERS ACCORDING TO ALGORITHMS.
   (E) APPROPRIATE  SAFEGUARDS  TO  MINIMIZE  COMPULSIVE  GAMING  AND  TO
 PROVIDE NOTICE TO PARTICIPANTS OF RESOURCES TO HELP PROBLEM GAMBLERS.
   (F)  APPROPRIATE  SAFEGUARDS TO ENSURE PARTICIPANTS' FUNDS ARE HELD IN
 ACCOUNTS SEGREGATED FROM  THE  FUNDS  OF  LICENSEES  AND  OTHERWISE  ARE
 PROTECTED FROM CORPORATE INSOLVENCY, FINANCIAL RISK OR CRIMINAL OR CIVIL
 ACTIONS AGAINST THE LICENSEE.
   §  1504. SCOPE OF LICENSING REVIEW.  1. IN CONNECTION WITH ANY LICENSE
 ISSUED PURSUANT TO THIS ARTICLE, THE  LICENSEE,  SIGNIFICANT  VENDOR  OR
 APPLICANT SHALL IDENTIFY AND THE COMMISSION SHALL REVIEW THE SUITABILITY
 OF  SUCH  LICENSEE'S,  SIGNIFICANT  VENDOR'S OR APPLICANT'S OWNER, CHIEF
 EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER  AND  ANY  OTHER  OFFICER  OR
 EMPLOYEE  WHO  THE  COMMISSION  DEEMS  IS  SIGNIFICANTLY INVOLVED IN THE
 MANAGEMENT OR CONTROL OF THE LICENSEE, SIGNIFICANT VENDOR  OR  APPLICANT
 OR  OF  THE  INTERACTIVE GAMING PLATFORM.   "OWNER" FOR PURPOSES OF THIS
 PROVISION MEANS ANY PERSON WHO DIRECTLY OR INDIRECTLY HOLDS ANY  BENEFI-
 CIAL  OR  OWNERSHIP INTEREST IN THE APPLICANT OF FIVE PERCENT OR GREATER
 OR ANY AMOUNT OF OWNERSHIP THAT THE COMMISSION DETERMINES TO BE  SIGNIF-
 ICANT OWNERSHIP OF THE LICENSEE, SIGNIFICANT VENDOR, OR APPLICANT.
   2.  INSTITUTIONAL  INVESTORS  ARE SUBJECT TO THE PROVISIONS SET OUT IN
 THIS SECTION.
   (A) AN INSTITUTIONAL INVESTOR HOLDING UNDER TWENTY-FIVE PERCENT OF THE
 EQUITY SECURITIES OF A LICENSEE'S OR  SIGNIFICANT  VENDOR'S  (OR  APPLI-
 CANT'S)  HOLDING OR INTERMEDIARY COMPANIES, SHALL BE GRANTED A WAIVER OF
 ANY INVESTIGATION OF SUITABILITY OR OTHER REQUIREMENT IF SUCH SECURITIES
 ARE THOSE OF A CORPORATION, WHETHER PUBLICLY TRADED OR  PRIVATELY  HELD,
 AND  ITS  HOLDINGS  OF  SUCH  SECURITIES  WERE  PURCHASED FOR INVESTMENT
 PURPOSES ONLY AND IT FILES A CERTIFIED STATEMENT TO THE EFFECT  THAT  IT
 HAS  NO INTENTION OF INFLUENCING OR AFFECTING THE AFFAIRS OF THE ISSUER,
 THE LICENSEE (OR SIGNIFICANT VENDOR OR APPLICANT, AS APPLICABLE) OR  ITS
 HOLDING  OR  INTERMEDIARY COMPANIES; PROVIDED, HOWEVER, THAT IT SHALL BE
 PERMITTED TO VOTE ON MATTERS PUT TO THE VOTE OF THE OUTSTANDING SECURITY
 HOLDERS. THE COMMISSION MAY GRANT SUCH  A  WAIVER  TO  AN  INSTITUTIONAL
 INVESTOR  HOLDING  A HIGHER PERCENTAGE OF SUCH SECURITIES UPON A SHOWING
 OF GOOD CAUSE AND IF THE CONDITIONS SPECIFIED ABOVE ARE MET. ANY  INSTI-
 TUTIONAL  INVESTOR  GRANTED  A  WAIVER UNDER THIS PARAGRAPH WHICH SUBSE-
 QUENTLY DETERMINES TO INFLUENCE OR AFFECT  THE  AFFAIRS  OF  THE  ISSUER
 SHALL PROVIDE NOT LESS THAN THIRTY DAYS' NOTICE OF SUCH INTENT AND SHALL
 FILE  WITH  THE  COMMISSION  A  REQUEST FOR DETERMINATION OF SUITABILITY
 BEFORE TAKING ANY ACTION THAT MAY INFLUENCE OR AFFECT THE AFFAIRS OF THE
 ISSUER; PROVIDED, HOWEVER, THAT IT SHALL BE PERMITTED TO VOTE ON MATTERS
 PUT TO THE VOTE OF THE OUTSTANDING SECURITY HOLDERS. IF AN INSTITUTIONAL
 INVESTOR CHANGES ITS INVESTMENT  INTENT,  OR  IF  THE  COMMISSION  FINDS
 REASONABLE CAUSE TO BELIEVE THAT THE INSTITUTIONAL INVESTOR MAY BE FOUND
 UNSUITABLE,  NO  ACTION  OTHER  THAN  DIVESTITURE SHALL BE TAKEN BY SUCH
 INVESTOR WITH RESPECT TO ITS SECURITY  HOLDINGS  UNTIL  THERE  HAS  BEEN

 S. 7509--B                         108
 
 COMPLIANCE  WITH  ANY  REQUIREMENTS ESTABLISHED BY THE COMMISSION, WHICH
 MAY INCLUDE THE EXECUTION OF A TRUST AGREEMENT. THE LICENSEE (OR SIGNIF-
 ICANT VENDOR OR APPLICANT, AS  APPLICABLE)  AND  ITS  RELEVANT  HOLDING,
 INTERMEDIARY  OR  SUBSIDIARY  COMPANY  SHALL NOTIFY THE COMMISSION IMME-
 DIATELY OF ANY INFORMATION ABOUT, OR ACTIONS OF, AN INSTITUTIONAL INVES-
 TOR HOLDING ITS EQUITY SECURITIES WHERE SUCH INFORMATION OR  ACTION  MAY
 IMPACT  UPON THE ELIGIBILITY OF SUCH INSTITUTIONAL INVESTOR FOR A WAIVER
 PURSUANT TO THIS PARAGRAPH.
   (B) IF AT ANY TIME THE COMMISSION FINDS THAT AN INSTITUTIONAL INVESTOR
 HOLDING ANY SECURITY OF A HOLDING OR INTERMEDIARY COMPANY OF A  LICENSEE
 OR  SIGNIFICANT  VENDOR  OR  APPLICANT,  OR,  WHERE RELEVANT, OF ANOTHER
 SUBSIDIARY COMPANY OF A HOLDING OR INTERMEDIARY COMPANY OF A LICENSEE OR
 SIGNIFICANT VENDOR OR APPLICANT WHICH IS  RELATED  IN  ANY  WAY  TO  THE
 FINANCING  OF  THE LICENSEE OR SIGNIFICANT VENDOR OR APPLICANT, FAILS TO
 COMPLY WITH THE TERMS OF PARAGRAPH (A) OF THIS SECTION,  OR  IF  AT  ANY
 TIME THE COMMISSION FINDS THAT, BY REASON OF THE EXTENT OR NATURE OF ITS
 HOLDINGS,  AN INSTITUTIONAL INVESTOR IS IN A POSITION TO EXERCISE SUCH A
 SUBSTANTIAL IMPACT UPON THE  CONTROLLING  INTERESTS  OF  A  LICENSEE  OR
 SIGNIFICANT  VENDOR OR APPLICANT THAT INVESTIGATION AND DETERMINATION OF
 SUITABILITY OF THE INSTITUTIONAL INVESTOR IS NECESSARY  TO  PROTECT  THE
 PUBLIC  INTEREST, THE COMMISSION MAY TAKE ANY NECESSARY ACTION OTHERWISE
 AUTHORIZED UNDER THIS ARTICLE TO PROTECT THE PUBLIC INTEREST.
   (C) FOR PURPOSES OF THIS SECTION, AN  "INSTITUTIONAL  INVESTOR"  SHALL
 MEAN  ANY RETIREMENT FUND ADMINISTERED BY A PUBLIC AGENCY FOR THE EXCLU-
 SIVE BENEFIT OF FEDERAL, STATE, OR LOCAL  PUBLIC  EMPLOYEES;  INVESTMENT
 COMPANY REGISTERED UNDER THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. §
 80A-1  ET  SEQ.);  COLLECTIVE  INVESTMENT TRUST ORGANIZED BY BANKS UNDER
 PART NINE OF THE RULES OF THE COMPTROLLER OF THE  CURRENCY;  CLOSED  END
 INVESTMENT  TRUST; CHARTERED OR LICENSED LIFE INSURANCE COMPANY OR PROP-
 ERTY AND CASUALTY INSURANCE COMPANY;  BANKING  AND  OTHER  CHARTERED  OR
 LICENSED  LENDING  INSTITUTION;  INVESTMENT ADVISOR REGISTERED UNDER THE
 INVESTMENT ADVISORS ACT OF 1940 (15 U.S.C. § 80B-1 ET  SEQ.);  AND  SUCH
 OTHER  PERSONS  AS  THE  COMMISSION MAY DETERMINE FOR REASONS CONSISTENT
 WITH THE PUBLIC INTEREST.
   § 1505. STATE TAX. LICENSEES ENGAGED IN  THE  BUSINESS  OF  CONDUCTING
 INTERACTIVE  GAMING  PURSUANT  TO THIS ARTICLE SHALL PAY A PRIVILEGE TAX
 BASED ON THE LICENSEE'S INTERACTIVE GAMING GROSS REVENUE  AT  A  FIFTEEN
 PERCENT RATE.
   §  1506. DISPOSITION OF TAXES. THE COMMISSION SHALL PAY INTO THE STATE
 LOTTERY FUND ALL TAXES IMPOSED BY THIS ARTICLE; ANY INTEREST AND  PENAL-
 TIES  IMPOSED  BY  THE COMMISSION RELATING TO THOSE TAXES; ALL PENALTIES
 LEVIED AND COLLECTED BY THE COMMISSION; AND THE APPROPRIATE FUNDS,  CASH
 OR PRIZES FORFEITED FROM INTERACTIVE GAMING.
   §  2.  Subdivision  1 of section 225.00 of the penal law is amended to
 read as follows:
   1. "Contest of chance" means  any  contest,  game,  gaming  scheme  or
 gaming  device  in  which  the  outcome  depends  [in a material degree]
 PREDOMINANTLY upon an element of chance, notwithstanding that  skill  of
 the contestants may also be a factor therein.
   §  3.  The penal law is amended by adding a new section 225.36 to read
 as follows:
 § 225.36 INTERACTIVE GAMING OFFENSES AND EXCEPTIONS.
   1. THE KNOWING AND WILLFUL OFFERING OF UNLICENSED  INTERACTIVE  GAMING
 TO  PERSONS  IN  THIS  STATE,  OR  THE  KNOWING AND WILLFUL PROVISION OF
 SERVICES WITH RESPECT THERETO, SHALL CONSTITUTE A GAMBLING OFFENSE UNDER
 THIS ARTICLE.

 S. 7509--B                         109
 
   2.  LICENSED  INTERACTIVE  GAMING  ACTIVITIES  UNDER  SECTION  FIFTEEN
 HUNDRED  TWO  OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW SHALL
 NOT BE A GAMBLING OFFENSE UNDER THIS ARTICLE.
   3.  A PERSON OFFERING UNLICENSED INTERACTIVE GAMING TO PERSONS IN THIS
 STATE SHALL BE LIABLE FOR ALL TAXES SET FORTH IN SECTION FIFTEEN HUNDRED
 FIVE OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW  IN  THE  SAME
 MANNER  AND AMOUNTS AS IF SUCH PERSON WERE A LICENSEE. TIMELY PAYMENT OF
 SUCH TAXES SHALL NOT CONSTITUTE A DEFENSE TO ANY  PROSECUTION  OR  OTHER
 PROCEEDING IN CONNECTION WITH THE INTERACTIVE GAMING EXCEPT FOR A PROSE-
 CUTION OR PROCEEDING ALLEGING FAILURE TO MAKE SUCH PAYMENT.
   §  4. Severability clause. If any provision of this act or application
 thereof shall for any reason be  adjudged  by  any  court  of  competent
 jurisdiction  to  be invalid, such judgment shall not affect, impair, or
 invalidate the remainder of the act, but shall be confined in its opera-
 tion to the provision thereof directly involved in  the  controversy  in
 which the judgment shall have been rendered.
   § 5. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.
 
                                 PART SSS
 
   Section  1.  Section  486  of the general municipal law, as amended by
 section 6 of part MM of chapter 59 of the laws of 2017,  is  amended  to
 read as follows:
   §  486.  Participation by persons under the age of eighteen. No person
 under the age of eighteen years shall be permitted to play any  game  or
 games of bingo conducted pursuant to any license issued under this arti-
 cle UNLESS ACCOMPANIED BY AN ADULT.  No person under the age of eighteen
 years shall be permitted to conduct, operate or assist in the conduct of
 any  game  of bingo conducted pursuant to any license issued pursuant to
 this article. Nothing in this section shall  prevent  a  person  sixteen
 years  of  age  or older from performing ancillary non-gaming activities
 conducted in conjunction with any game of bingo  conducted  pursuant  to
 any license pursuant to this article.
   § 2. This act shall take effect immediately.

                                 PART TTT
 
   Section  1. Subdivision f-1 of section 1612 of the tax law, as amended
 by chapter 175 of the laws of 2013, is amended to read as follows:
   f-1. As consideration for operation of video lottery  gaming  facility
 located in the county of Nassau or Suffolk and operated by a corporation
 established pursuant to section five hundred two of the racing, pari-mu-
 tuel  wagering and breeding law, the division shall cause the investment
 in the racing industry of the following percentages of the vendor fee to
 be deposited or paid as follows:
   1. Two and three tenths percent of the total wagered after  payout  of
 prizes  for  the  purpose  of  enhancing  purses  at Aqueduct racetrack,
 Belmont Park racetrack and Saratoga  race  course[,  provided,  however,
 that  any  amount  that is in excess of the amount necessary to maintain
 purse support from video lottery gaming at Aqueduct  racetrack,  Belmont
 Park  racetrack  and  Saratoga race course at the same level realized in
 two thousand thirteen, to be adjusted by the consumer  price  index  for
 all  urban consumers, as published annually by the United States depart-
 ment of labor, bureau of labor statistics, shall instead be returned  to
 the commission].

 S. 7509--B                         110
 
   2. five tenths percent of the total wagered after payout of prizes for
 the appropriate breeding fund for the manner of racing at Aqueduct race-
 track,  Belmont  Park  racetrack  and  Saratoga  race course[, provided,
 however, that any amount that is in excess of the  amount  necessary  to
 maintain payments from video lottery gaming at Aqueduct racetrack at the
 same  level  realized  in  two  thousand thirteen, to be adjusted by the
 consumer price index for all urban consumers, as published  annually  by
 the United States department of labor, bureau of labor statistics, shall
 instead be returned to the commission].
   3.  one  and  three  tenths percent of the total revenue wagered after
 payout of prizes to be deposited  into  an  account  of  the  franchised
 corporation  established  pursuant  to  section  two  hundred six of the
 racing, pari-mutuel wagering and breeding law to  be  used  for  capital
 expenditures  in  maintaining  and upgrading Aqueduct racetrack, Belmont
 Park racetrack and Saratoga race course[, provided,  however,  that  any
 amount  that  is  in excess of the amount necessary to maintain payments
 for capital expenditures from video lottery gaming at Aqueduct racetrack
 at the same level realized in two thousand thirteen, to be  adjusted  by
 the  consumer price index for all urban consumers, as published annually
 by the United States department of labor, bureau  of  labor  statistics,
 shall instead be returned to the commission].
   4.  Nine  tenths percent of the total revenue wagered after payout for
 prizes to be deposited into an account  of  the  franchised  corporation
 established  pursuant to section two hundred six of the racing, pari-mu-
 tuel wagering and breeding law  to  be  used  for  general  thoroughbred
 racing  operations  at  Aqueduct  racetrack,  Belmont Park racetrack and
 Saratoga race course[, provided, however, that any  amount  that  is  in
 excess  of  the  amount  necessary  to  maintain  payments  for  general
 thoroughbred racing operations from video  lottery  gaming  at  Aqueduct
 racetrack  at  the  same  level realized in two thousand thirteen, to be
 adjusted by the  consumer  price  index  for  all  urban  consumers,  as
 published  annually  by the United States department of labor, bureau of
 labor statistics, shall instead be returned to the commission].
   § 2. This act shall take effect immediately.
 
                                 PART UUU
 
   Section 1. Subdivision 2 of section 516  of  the  racing,  pari-mutuel
 wagering and breeding law is amended to read as follows:
   2.  After  payment of all of the costs of the corporation's functions,
 net revenue remaining to the corporation shall be  divided[,  quarterly,
 not  more  than  thirty  days  after the close of the calendar quarter],
 among the  participating  counties  in  accordance  with  the  following
 provisions:
   a. EACH OFF-TRACK BETTING CORPORATION SHALL DETERMINE, AT THEIR ORGAN-
 IZATIONAL  MEETING,  IF  SUCH  NET  REVENUE REMAINING TO THE CORPORATION
 SHALL BE DIVIDED TO PARTICIPATING COUNTIES ON AN  ANNUAL,  BI-ANNUAL  OR
 QUARTERLY BASIS, TO BE DIVIDED NOT MORE THAN THIRTY DAYS AFTER THE CLOSE
 OF  THE CALENDAR YEAR, THE CLOSE OF THE BI-ANNUAL YEAR (JANUARY-JUNE AND
 JULY-DECEMBER) OR CALENDAR QUARTER;
   B. Fifty percent of such revenue distributed among  the  participating
 counties  on the basis of the proportion of the total off-track pari-mu-
 tuel wagering accepted by the corporation during the previous  [calendar
 quarter]  PERIOD  that  originated in the branch offices located in each
 participating county;

 S. 7509--B                         111
 
   [b.] C. Fifty percent of such revenue on the basis of  population,  as
 defined  as  the  total population in each participating county shown by
 the latest preceding decennial federal census completed and published as
 a final population count by the  United  States  bureau  of  the  census
 preceding  the  commencement of the calendar year in which such distrib-
 ution is to be made; and
   [c.] D. A participating county containing a city electing  to  partic-
 ipate  in the management and revenues of a corporation under subdivision
 two of section five hundred two of this article shall distribute revenue
 received under paragraphs [a] B and [b] C of this  subdivision  to  such
 city  according  to  the  proportion such city's population bears to the
 county's population.
   § 2. This act shall take effect immediately.
 
                                 PART VVV
 
   Section 1. The  racing,  pari-mutuel  wagering  and  breeding  law  is
 amended by adding a new section 103-a to read as follows:
   §  103-A.  RACING  FAN ADVISORY COUNCIL. THERE IS HEREBY ESTABLISHED A
 RACING FAN ADVISORY COUNCIL WITHIN THE COMMISSION WHICH WILL OPERATE  AS
 FOLLOWS:
   1.  THE COUNCIL SHALL BE COMPOSED OF FIVE MEMBERS. NONE OF THE MEMBERS
 OF THE COUNCIL SHALL BE EMPLOYEES OR OFFICERS OF THE  COMMISSION  OR  BE
 PAID  EMPLOYEES,  LOBBYISTS,  OR  OFFICERS OF ANY LICENSED OR FRANCHISED
 RACETRACK OR OFF-TRACK BETTING CORPORATION OR ANY NONPROFIT  CORPORATION
 WHICH  REPRESENTS  BREEDERS OR HORSEMEN. MEMBERS SHALL BE SELECTED BASED
 ON THEIR LONG-TERM  INVOLVEMENT  AND  INTEREST  IN,  KNOWLEDGE  OF,  AND
 DEVOTION TO THE SPORT OF HORSE RACING AS FANS OF THE SPORT. FIVE PERSONS
 SHALL  BE  APPOINTED  BY  THE  EXECUTIVE DIRECTOR OF THE COMMISSION. ONE
 PERSON SHALL BE APPOINTED UPON THE RECOMMENDATION OF THE CHAIRPERSON  OF
 THE  SENATE  COMMITTEE  ON  RACING,  GAMING AND WAGERING, AND ONE PERSON
 SHALL BE APPOINTED BY THE  CHAIRPERSON  OF  THE  ASSEMBLY  COMMITTEE  ON
 RACING AND WAGERING.
   2.  THE  CHAIRPERSON OF THE COUNCIL SHALL BE SELECTED BY THE EXECUTIVE
 DIRECTOR OF THE COMMISSION. THE DEPUTY CHAIRPERSON SHALL BE SELECTED  BY
 A  MAJORITY  VOTE OF THE COUNCIL FROM AMONG THE PERSONS APPOINTED AT THE
 RECOMMENDATION OF THE CHAIRPERSONS OF THE DESIGNATED LEGISLATIVE COMMIT-
 TEES.
   3. THE MEMBERS OF THE COUNCIL SHALL SERVE FOR A PERIOD OF  FIVE  YEARS
 WITH  ALL  TERMS BEGINNING SEPTEMBER FIRST, TWO THOUSAND SIXTEEN. IN THE
 EVENT OF A VACANCY OCCURRING DURING A TERM OF APPOINTMENT BY  REASON  OF
 DEATH, RESIGNATION, DISQUALIFICATION OR OTHERWISE, SUCH VACANCY SHALL BE
 FILLED  FOR  THE  UNEXPIRED  TERM  IN  THE  SAME  MANNER AS THE ORIGINAL
 APPOINTMENT.
   4. THE RACING FAN ADVISORY COUNCIL SHALL REQUEST AND SHALL RECEIVE THE
 ASSISTANCE AND COOPERATION OF THE COMMISSION IN  REGARD  TO  RECEIPT  OF
 INFORMATION RELATING TO HORSE RACING AND WAGERING IN THIS STATE.
   5. THE RACING FAN ADVISORY COUNCIL SHALL:
   (A)  HAVE  AS  ITS  MISSION  THE GROWTH OF THE FAN BASE RELATED TO THE
 SPORT OF HORSE RACING;
   (B) RECOMMEND PROCEDURES TO ENSURE THAT THE OPINION OF THE  FAN  IS  A
 CENTRAL PART OF THE REGULATION OF HORSE RACING;
   (C)  PREPARE  AN  ANNUAL REPORT, AND ANY OTHER REPORTS IT DEEMS NECES-
 SARY, TO THE COMMISSION REGARDING THE OPERATION OF THE STATE'S THOROUGH-
 BRED AND HARNESS RACETRACKS AND THE  STATE'S  OFF-TRACK  BETTING  CORPO-
 RATIONS;

 S. 7509--B                         112
 
   (D)  ADVISE  THE  COMMISSION  ON  APPROPRIATE ACTIONS TO ENCOURAGE FAN
 ATTENDANCE AND WAGERING AT THE STATE'S THOROUGHBRED  AND  HARNESS  RACE-
 TRACKS AND THE STATE'S OFF-TRACK BETTING CORPORATIONS;
   (E)  BE  AUTHORIZED BY THE COMMISSION TO ENTER UPON THE RACETRACKS AND
 THEIR FACILITIES REGULATED OR CONTROLLED BY THE BOARD DURING RACE TIMES,
 AND DURING PERIODS OF HORSE WORKOUTS, AND DURING HOURS WHEN  MEMBERS  OF
 THE MEDIA ARE PERMITTED TO BE PRESENT AT THE FACILITIES;
   (F)  RECOMMEND  CHANGES TO THE RULES OF THE COMMISSION AND TO THE LAWS
 AFFECTING HORSE RACING;
   (G) PERFORM SUCH OTHER DUTIES AS MAY BE  INCREASED  BY  ORDER  OF  THE
 COMMISSION;
   (H)  ENGAGE  NEW YORK STATE'S RACING FAN POPULATION ON HOW TO MAKE THE
 SPORT MORE APPEALING;
   (I) RECOMMEND TO THE COMMISSION FURTHER PROCEDURES TO MAKE STEWARD AND
 PRESIDING JUDGE ACTIONS THAT IMPACT THE BETTING PUBLIC MORE TRANSPARENT;
 AND
   (J) WORK WITH RELEVANT COMPONENT  INDUSTRIES  TO  BETTER  EDUCATE  THE
 CASUAL FAN AS TO SIGNIFICANT INDUSTRY TOPICS.
   §  2.  This act shall take effect immediately; provided, however, that
 the members of the racing fan advisory council as created by  resolution
 of  the New York Gaming Commission dated September 1, 2016, shall be the
 initial members of the racing fan advisory  council  as  established  by
 this act.
 
                                 PART WWW
 
   Section  1.  The  racing,  pari-mutuel  wagering  and  breeding law is
 amended by adding a new section 103-a to read as follows:
   § 103-A. ADVISORY COUNCIL ON RETIRED RACE HORSES. 1. FOR THE  PURPOSES
 OF THIS SECTION:
   (A) "COUNCIL" MEANS THE ADVISORY COUNCIL ON RETIRED RACE HORSES ESTAB-
 LISHED IN THIS SECTION.
   (B)  "RETIRED  RACE  HORSE" MEANS (I) A NEW YORK-BRED THOROUGHBRED, AS
 DEFINED BY SUBDIVISION THREE OF SECTION TWO HUNDRED  FIFTY-ONE  OF  THIS
 CHAPTER, WHICH IS NO LONGER ENGAGED IN HORSE RACING; (II) A STANDARDBRED
 WHICH  MEETS THE STANDARD SET FORTH IN SECTION THREE HUNDRED THIRTY-FOUR
 OF THIS CHAPTER, WHICH IS NO LONGER ENGAGED IN HORSE  RACING;  OR  (III)
 ANY  HORSE  THAT  IS  SPECIFICALLY  BRED  FOR  THE  INTENDED  PURPOSE OF
 THOROUGHBRED OR STANDARDBRED HORSE RACING, BUT WAS NEVER USED  IN  HORSE
 RACING.    THE  TERM  RETIRED  RACE  HORSE SHALL BE BROADLY CONSTRUED TO
 INCLUDE THOSE HORSES THAT WERE ACTUALLY USED IN RACING  AND  THOSE  THAT
 WERE BRED AND INTENDED TO BE SO USED BUT WERE NOT SO USED.
   2.  THERE IS HEREBY ESTABLISHED IN THE COMMISSION THE ADVISORY COUNCIL
 ON RETIRED RACE HORSES. THE  COUNCIL  SHALL  BE  COMPRISED  OF  THIRTEEN
 MEMBERS.  SUCH COUNCIL SHALL HAVE TWO EX-OFFICIO CO-CHAIRPERSONS, ONE OF
 WHOM SHALL BE THE CHAIR OF THE COMMISSION AND THE OTHER OF WHOM SHALL BE
 THE  COMMISSIONER  OF AGRICULTURE AND MARKETS, OR THEIR DESIGNEES.  FIVE
 MEMBERS SHALL BE  APPOINTED  BY  THE  GOVERNOR,  TWO  MEMBERS  SHALL  BE
 APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE, TWO MEMBERS SHALL BE
 APPOINTED  BY THE SPEAKER OF THE ASSEMBLY, ONE MEMBER SHALL BE APPOINTED
 BY THE MINORITY LEADER OF THE SENATE, AND ONE MEMBER SHALL BE  APPOINTED
 BY  THE  MINORITY  LEADER OF THE ASSEMBLY.  THE MEMBERS APPOINTED TO THE
 COUNCIL SHALL SERVE TERMS OF FIVE YEARS; PROVIDED, HOWEVER, THAT OF  THE
 MEMBERS  INITIALLY APPOINTED TO THE COUNCIL: ONE MEMBER APPOINTED BY THE
 GOVERNOR AND THE MEMBER APPOINTED BY THE MINORITY LEADER OF  THE  SENATE
 SHALL SERVE TERMS OF ONE YEAR; ONE MEMBER APPOINTED BY THE GOVERNOR, ONE

 S. 7509--B                         113
 
 MEMBER APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE AND ONE MEMBER
 APPOINTED  BY THE SPEAKER OF THE ASSEMBLY SHALL BE APPOINTED TO TERMS OF
 TWO YEARS; ONE MEMBER APPOINTED BY THE GOVERNOR AND ONE MEMBER APPOINTED
 BY  THE  SPEAKER  OF  THE ASSEMBLY SHALL BE APPOINTED FOR TERMS OF THREE
 YEARS; ONE MEMBER APPOINTED BY THE GOVERNOR AND ONE MEMBER APPOINTED  BY
 THE  TEMPORARY  PRESIDENT  OF THE SENATE SHALL BE APPOINTED FOR TERMS OF
 FOUR YEARS; AND ONE MEMBER APPOINTED BY  THE  GOVERNOR  AND  THE  MEMBER
 APPOINTED  BY  THE  MINORITY LEADER OF THE ASSEMBLY SHALL SERVE TERMS OF
 FIVE YEARS. ALL INITIALLY APPOINTED MEMBERS  OF  THE  COUNCIL  SHALL  BE
 APPOINTED  WITHIN  ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE DATE OF THIS
 SECTION.  THE APPOINTED MEMBERS OF SUCH COUNCIL SHALL BE  REPRESENTATIVE
 OF:  (A)  OWNERS, BREEDERS AND TRAINERS OF STANDARDBRED AND THOROUGHBRED
 HORSES, (B) PERSONS WITH EXPERTISE IN TRAINING  HORSES  FOR  USES  OTHER
 THAN  RACING,  SUCH  AS  RIDING SCHOOLS, STEEPLECHASE COMPETITIONS, SHOW
 HORSE COMPETITIONS AND OTHER RECREATIONAL USES, (C) PERSONS WITH EXPERI-
 ENCE IN THE POTENTIAL FARM APPLICATIONS  OR  OTHER  RURAL,  SUBURBAN  OR
 URBAN  ECONOMIC BUSINESS APPLICATIONS FOR HORSES, AND (D) PERSONS FAMIL-
 IAR WITH THE USE OF HORSES  FOR  RECREATIONAL  OR  THERAPEUTIC  USES  IN
 EITHER  PRIVATE,  PUBLIC  HEALTH,  COLLEGE,  UNIVERSITY  OR CORRECTIONAL
 FACILITY SETTINGS.  ANY VACANCY ON SUCH COUNCIL SHALL BE FILLED  BY  THE
 ORIGINAL  APPOINTING AUTHORITY. COUNCIL MEMBERS SHALL RECEIVE NO COMPEN-
 SATION FOR THEIR SERVICES, BUT SHALL BE REIMBURSED FOR ACTUAL AND NECES-
 SARY TRAVEL EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES.
   3. THE MISSION OF THE COUNCIL IS TO IDENTIFY AND MAKE  RECOMMENDATIONS
 TO PROMOTE THE PRODUCTIVE USE OF RETIRED RACE HORSES AND TO INCREASE THE
 NUMBER  OF  SUCH  HORSES  MADE  AVAILABLE FOR SUCH USES AND SO USED. THE
 COUNCIL SHALL DEVELOP AND IDENTIFY NEW AND INNOVATIVE IDEAS AND  METHODS
 THAT  CAN  UTILIZE  PRIVATE AND PUBLIC FUNDING SOURCES OR PUBLIC/PRIVATE
 PARTNERSHIPS TO PLACE RETIRED RACE HORSES IN SUCH PRODUCTIVE AND BENEFI-
 CIAL USES, AND TO INCREASE BOTH THE NUMBER OF HORSES  SO  USED  AND  THE
 SCALE AND VARIETY OF SUCH USES.
   4. THE COUNCIL SHALL BE RESPONSIBLE FOR:
   (A)  PROMOTING THE PROPER CARE AND TREATMENT OF RETIRED RACE HORSES IN
 A HUMANE AND PRODUCTIVE MANNER;
   (B)  ADVISING  THE  COMMISSION,  THE  DEPARTMENT  OF  AGRICULTURE  AND
 MARKETS,  THE  NEW YORK STATE THOROUGHBRED BREEDING AND DEVELOPMENT FUND
 AND THE AGRICULTURE AND NEW YORK STATE BREEDING DEVELOPMENT FUND ON WAYS
 TO PROMOTE THE HUMANE CARE AND TREATMENT  OF  SUCH  HORSES  AFTER  THEIR
 RACING  CAREERS  ARE  OVER  VIA PUBLIC POLICIES, FUNDING ALLOCATIONS AND
 SPECIFIC COURSES OF ACTION THAT CAN BE TAKEN TO  REDUCE  THE  NUMBER  OF
 RACE  TRACK FATALITIES AND INJURIES DURING THE CONDUCT OF RACE MEETS AND
 TRAINING;
   (C) EXPLORE THE POSSIBILITY OF DEVELOPING A LIMITED RETIRED RACE HORSE
 TRACKING SYSTEM TO OBTAIN USEFUL INFORMATION ON THE  USES  AND  ULTIMATE
 PLACEMENT  OF  SUCH  HORSES  AFTER THEIR RACING CAREERS HAVE ENDED. SUCH
 INFORMATION MAY BE SHARED WITH THE COMMISSION, THE DEPARTMENT  OF  AGRI-
 CULTURE AND MARKETS, THE NEW YORK STATE THOROUGHBRED BREEDING AND DEVEL-
 OPMENT FUND, AND THE AGRICULTURE AND NEW YORK STATE BREEDING DEVELOPMENT
 FUND  SO AS TO ASSIST SUCH ENTITIES IN THEIR DUTIES TO ENSURE THE HUMANE
 CARE AND TREATMENT OF RETIRED RACE HORSES, AND TO DEVELOP STRATEGIES  TO
 ENHANCE  THE HUMANE AND PRODUCTIVE USE OF SUCH HORSES AFTER THEIR RACING
 CAREERS HAVE ENDED; AND
   (D) THE DEVELOPMENT OF STRATEGIES  TO  MINIMIZE  THE  ABANDONMENT  AND
 UNNECESSARY SLAUGHTER OF SUCH RETIRED RACE HORSES.
   5.  THE  COUNCIL  SHALL INVESTIGATE, STUDY AND MAKE RECOMMENDATIONS ON
 THE FEASIBILITY OF PROMOTING THE REUSE  OF  RETIRED  RACE  HORSES  IN  A

 S. 7509--B                         114
 
 MANNER  THAT  EXPANDS  THE  NUMBER  OF  POTENTIAL  OPPORTUNITIES FOR THE
 PRODUCTIVE FUTURE USE OF SUCH ANIMALS AND FOR ACTIVITIES  SUCH  AS,  BUT
 NOT LIMITED TO:
   (A)  PROMOTING  AND  FACILITATING A LARGER MARKET FOR THE PURCHASE AND
 SALE OF RETIRED RACE HORSES;
   (B) PROMOTING THE EXPANDED THERAPEUTIC  USE  OF  SUCH  HORSES  IN  THE
 MEDICAL, PSYCHOLOGICAL, OR REHABILITATIVE CARE OR TREATMENT OF PATIENTS;
   (C)  THE  EXPANSION  OF THE USE OF HORSES AT FEDERAL, STATE, AND LOCAL
 CORRECTIONAL FACILITIES AND YOUTH  DETENTION  FACILITIES  TO  TRAIN  THE
 INMATES  THEREOF  FOR CAREERS, AFTER THEIR RELEASE, IN THE RACING INDUS-
 TRY, IN THE CARE OF HORSES FOR RECREATIONAL PURPOSES, OR AS LARGE ANIMAL
 VETERINARY ASSISTANTS OR TECHNICIANS;
   (D) SUPPORTING THE WORK OF  THE  PERFORMANCE  HORSE  REGISTRY  OF  THE
 UNITED  STATES EQUESTRIAN FEDERATION TO HELP TO MARKET AND SELL A HIGHER
 VOLUME OF SUCH HORSES BY INFORMING PROSPECTIVE PURCHASERS OF  THE  PEDI-
 GREES OF THE HORSES UNDER CONSIDERATION AND THE SUITABILITY OF THE HORS-
 ES FOR THE PROSPECTIVE PURCHASERS' INTENDED USES;
   (E) SUPPORTING EXISTING OR ESTABLISHING NEW STANDARDBRED AND THOROUGH-
 BRED  ADOPTION  PROGRAMS  THAT  MAY BE SUPPORTED BY PRIVATE DONATIONS OR
 RACING INDUSTRY FUNDING SOURCES;
   (F) STUDYING AND ULTIMATELY PROMOTING THE ALTERATION OF  CURRENT  RACE
 HORSE  TRAINING REGIMENS SO THAT RETIRED RACE HORSES CAN MORE READILY BE
 RETRAINED FOR OTHER ECONOMICALLY VIABLE USES;
   (G) DEVELOPING AND PROMOTING COLLEGE,  UNIVERSITY,  SECONDARY  SCHOOL,
 BOCES,  CORRECTIONAL  OR OTHER EDUCATIONAL INTERNSHIP PROGRAMS TO SUPPLY
 STUDENTS TO STAFF PROGRAMS THAT PROMOTE THE MAINTENANCE OF RETIRED  RACE
 HORSES OR THAT FACILITATE THE MARKETABILITY OF RETIRED RACE HORSES;
   (H)  FACILITATING  THE  RETRAINING  AND FINANCING OF THE RETRAINING OF
 RETIRED RACE HORSES TO BE USED FOR OTHER PURPOSES; AND
   (I) OTHER POTENTIAL USES FOR RETIRED RACE HORSES.
   6. NOT LATER THAN TWO YEARS AFTER THE EFFECTIVE DATE OF  THIS  SECTION
 AND  EVERY  TWO YEARS THEREAFTER, THE COUNCIL SHALL REPORT TO THE GOVER-
 NOR, THE LEGISLATURE, THE COMMISSION, THE DEPARTMENT OF AGRICULTURE  AND
 MARKETS,  THE NEW YORK STATE THOROUGHBRED BREEDING AND DEVELOPMENT FUND,
 AND THE AGRICULTURE AND NEW YORK STATE BREEDING DEVELOPMENT FUND ON  ITS
 ACTIVITIES, FINDINGS, AND RECOMMENDATIONS.
   § 2. This act shall take effect immediately.
 
                                 PART XXX
 
   Section 1. Section 1367 of the racing, pari-mutuel wagering and breed-
 ing law, as added by chapter 174 of the laws of 2013, is amended to read
 as follows:
   § 1367. Sports wagering. 1. As used in this section:
   (a)  "AFFILIATE"  MEANS  ANY OFF-TRACK BETTING CORPORATION, FRANCHISED
 CORPORATION, OR RACE TRACK LICENSED PURSUANT  TO  THIS  CHAPTER,  OR  AN
 OPERATOR  OF  VIDEO  LOTTERY  GAMING  AT  AQUEDUCT  LICENSED PURSUANT TO
 SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE TAX LAW, WHICH HAS  A  MOBILE
 SPORTS  WAGERING  AGREEMENT  WITH  A CASINO PURSUANT TO SECTION THIRTEEN
 HUNDRED SIXTY-SEVEN-A OF THIS TITLE;
   (B) "AGENT" MEANS AN ENTITY  THAT  IS  PARTY  TO  A  CONTRACT  WITH  A
 LICENSED  GAMING  FACILITY  AUTHORIZED  TO  OPERATE A SPORTS POOL AND IS
 APPROVED BY THE COMMISSION TO OPERATE A SPORTS POOL ON  BEHALF  OF  SUCH
 LICENSED GAMING FACILITY;
   (C)  "AUTHORIZED  SPORTS BETTOR" MEANS AN INDIVIDUAL WHO IS PHYSICALLY
 PRESENT IN THIS STATE WHEN PLACING A SPORTS WAGER, WHO IS NOT A  PROHIB-

 S. 7509--B                         115
 
 ITED  SPORTS  BETTOR,  THAT PARTICIPATES IN SPORTS WAGERING OFFERED BY A
 CASINO. THE INTERMEDIATE ROUTING OF ELECTRONIC DATA IN  CONNECTION  WITH
 MOBILE  SPORTS WAGERING SHALL NOT DETERMINE THE LOCATION OR LOCATIONS IN
 WHICH A WAGER IS INITIATED, RECEIVED OR OTHERWISE MADE;
   (D)  "Casino"  means  a  licensed gaming facility at which gambling is
 conducted pursuant to the provisions of this article  OR  THE  AGENT  OF
 SUCH LICENSED GAMING FACILITY;
   [(b)]  (E)  "Commission"  means the commission established pursuant to
 section one hundred two of this chapter;
   [(c)] (F) "Collegiate sport  or  athletic  event"  means  a  sport  or
 athletic  event  offered  or sponsored by or played in connection with a
 public or private institution that offers  educational  services  beyond
 the secondary level;
   (G)  "GLOBAL RISK MANAGEMENT" MEANS THE DIRECTION, MANAGEMENT, CONSUL-
 TATION AND/OR INSTRUCTION FOR PURPOSES OF MANAGING RISKS ASSOCIATED WITH
 SPORTS WAGERING CONDUCTED PURSUANT TO  THIS  SECTION  AND  INCLUDES  THE
 SETTING  AND  ADJUSTMENT  OF  BETTING  LINES, POINT SPREADS, OR ODDS AND
 WHETHER TO PLACE LAYOFF BETS AS PERMITTED BY THIS SECTION;
   [(d)] (H) "HIGH SCHOOL SPORT OR  ATHLETIC  EVENT"  MEANS  A  SPORT  OR
 ATHLETIC  EVENT  OFFERED  OR SPONSORED BY OR PLAYED IN CONNECTION WITH A
 PUBLIC OR PRIVATE INSTITUTION THAT  OFFERS  EDUCATION  SERVICES  AT  THE
 SECONDARY LEVEL;
   (I)  "HORSE  RACING EVENT" MEANS ANY SPORT OR ATHLETIC EVENT CONDUCTED
 IN NEW YORK STATE SUBJECT TO THE  PROVISIONS  OF  ARTICLES  TWO,  THREE,
 FOUR,  FIVE,  SIX, NINE, TEN AND ELEVEN OF THIS CHAPTER, OR ANY SPORT OR
 ATHLETIC EVENT CONDUCTED OUTSIDE OF NEW YORK STATE, WHICH  IF  CONDUCTED
 IN NEW YORK STATE WOULD BE SUBJECT TO THE PROVISIONS OF THIS CHAPTER;
   (J)  "IN-PLAY  SPORTS  WAGER"  MEANS A SPORTS WAGER PLACED ON A SPORTS
 EVENT AFTER THE SPORTS EVENT HAS BEGUN AND BEFORE IT ENDS;
   (K) "LAYOFF BET" MEANS A SPORTS WAGER PLACED BY A CASINO  SPORTS  POOL
 WITH ANOTHER CASINO SPORTS POOL;
   (L) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS;
   (M) "MOBILE SPORTS WAGERING PLATFORM" OR "PLATFORM" MEANS THE COMBINA-
 TION  OF  HARDWARE, SOFTWARE, AND DATA NETWORKS USED TO MANAGE, ADMINIS-
 TER, OR CONTROL SPORTS WAGERING AND ANY ASSOCIATED WAGERS ACCESSIBLE  BY
 ANY   ELECTRONIC   MEANS  INCLUDING  MOBILE  APPLICATIONS  AND  INTERNET
 WEBSITES;
   (N) "OFFICIAL LEAGUE DATA" MEANS STATISTICS,  RESULTS,  OUTCOMES,  AND
 OTHER DATA RELATING TO A SPORTING EVENT THAT HAVE BEEN OBTAINED FROM THE
 RELEVANT  SPORTS GOVERNING BODY OR AN ENTITY EXPRESSLY AUTHORIZED BY THE
 SPORTS GOVERNING BODY TO PROVIDE SUCH INFORMATION TO CASINOS;
   (O) "Operator" means a casino which has elected to  operate  a  sports
 pool;
   [(e)]  (P)  "Professional  sport  or athletic event" means an event at
 which two or more persons participate in sports or athletic  events  and
 receive  compensation  in  excess  of  actual expenses for their partic-
 ipation in such event;
   (Q) "PROHIBITED SPORTS BETTOR" MEANS:
   (I) ANY OFFICER OR EMPLOYEE OF THE COMMISSION;
   (II) ANY PRINCIPAL OR KEY EMPLOYEE OF A CASINO OR AFFILIATE, EXCEPT AS
 MAY BE PERMITTED BY THE COMMISSION FOR GOOD CAUSE SHOWN;
   (III) ANY CASINO GAMING OR NON-GAMING  EMPLOYEE  AT  THE  CASINO  THAT
 EMPLOYS SUCH PERSON AND AT ANY AFFILIATE THAT HAS AN AGREEMENT WITH THAT
 CASINO;
   (IV)  ANY  CONTRACTOR,  SUBCONTRACTOR,  OR  CONSULTANT,  OR OFFICER OR
 EMPLOYEE OF A CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OF A  CASINO  IF

 S. 7509--B                         116

 SUCH  PERSON  IS  DIRECTLY  INVOLVED  IN THE OPERATION OR OBSERVATION OF
 SPORTS  WAGERING,  OR  THE  PROCESSING  OF  SPORTS  WAGERING  CLAIMS  OR
 PAYMENTS;
   (V)  ANY  PERSON  SUBJECT  TO  A  CONTRACT WITH THE COMMISSION IF SUCH
 CONTRACT CONTAINS A PROVISION PROHIBITING SUCH PERSON FROM PARTICIPATING
 IN SPORTS WAGERING;
   (VI) ANY SPOUSE, CHILD, BROTHER, SISTER OR PARENT RESIDING AS A MEMBER
 OF THE SAME HOUSEHOLD IN THE PRINCIPAL PLACE OF  ABODE  OF  ANY  OF  THE
 FOREGOING  PERSONS  AT  THE  SAME  CASINO  WHERE THE FOREGOING PERSON IS
 PROHIBITED FROM PARTICIPATING IN SPORTS WAGERING;
   (VII) ANY INDIVIDUAL WITH ACCESS TO NON-PUBLIC  CONFIDENTIAL  INFORMA-
 TION ABOUT SPORTS WAGERING;
   (VIII)  ANY  AMATEUR  OR  PROFESSIONAL  ATHLETE IF THE SPORTS WAGER IS
 BASED ON ANY SPORT OR ATHLETIC EVENT OVERSEEN BY  THE  ATHLETE'S  SPORTS
 GOVERNING BODY;
   (IX)  ANY SPORTS AGENT, OWNER OR EMPLOYEE OF A TEAM, PLAYER AND UMPIRE
 UNION PERSONNEL, AND EMPLOYEE REFEREE, COACH OR  OFFICIAL  OF  A  SPORTS
 GOVERNING  BODY,  IF  THE SPORTS WAGER IS BASED ON ANY SPORT OR ATHLETIC
 EVENT OVERSEEN BY THE INDIVIDUAL'S SPORTS GOVERNING BODY;
   (X) ANY INDIVIDUAL PLACING A WAGER AS AN AGENT OR PROXY FOR AN  OTHER-
 WISE PROHIBITED SPORTS BETTOR; OR
   (XI) ANY MINOR;
   [(f)]  (R)  "Prohibited  sports  event" means any [collegiate sport or
 athletic event that takes place in New York or a sport or athletic event
 in which any New York college team participates regardless of where  the
 event takes place] HIGH SCHOOL SPORT OR ATHLETIC EVENT;
   [(g)]  (S)  "Sports  event"  means  any professional sport or athletic
 event and any collegiate sport or athletic event,  except  a  prohibited
 sports event OR A HORSE RACING EVENT;
   [(h)]   (T)  "SPORTS  GOVERNING  BODY"  MEANS  THE  ORGANIZATION  THAT
 PRESCRIBES FINAL RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT  TO  A
 SPORTING EVENT AND PARTICIPANTS THEREIN;
   (U) "Sports pool" means the business of accepting wagers on any sports
 event by any system or method of wagering; [and
   (i)]  (V) "SPORTS WAGER" MEANS CASH OR CASH EQUIVALENT THAT IS PAID BY
 AN AUTHORIZED SPORTS BETTOR TO A CASINO TO PARTICIPATE IN SPORTS  WAGER-
 ING OFFERED BY SUCH CASINO;
   (W) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION
 THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTIC-
 IPATING  IN  A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY ANY
 SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED  TO,  IN-PERSON
 COMMUNICATION AND ELECTRONIC COMMUNICATION THROUGH INTERNET WEBSITES AND
 MOBILE  DEVICE  APPLICATIONS.  THE TERM "SPORTS WAGERING" SHALL INCLUDE,
 BUT IS NOT LIMITED TO, SINGLE-GAME BETS, TEASER BETS, PARLAYS,  OVER-UN-
 DER BETS, MONEYLINE, POOLS, EXCHANGE WAGERING, IN-GAME WAGERING, IN-PLAY
 BETS, PROPOSITION BETS AND STRAIGHT BETS;
   (X) "SPORTS WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE
 TOTAL  OF ALL SPORTS WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS
 THAT AN OPERATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF  ALL  SUMS
 NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS PAID OUT AS WINNINGS TO ALL
 SPORTS BETTORS, HOWEVER, THAT THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS
 TO  SPORTS  BETTORS  SHALL  NOT INCLUDE THE CASH EQUIVALENT VALUE OF ANY
 MERCHANDISE OR THING OF VALUE AWARDED AS A PRIZE, OR (II) IN THE CASE OF
 EXCHANGE WAGERING PURSUANT TO THIS SECTION, THE  COMMISSION  ON  WINNING
 SPORTS WAGERS BY AUTHORIZED SPORTS BETTORS RETAINED BY THE OPERATOR. THE
 ISSUANCE  TO OR WAGERING BY AUTHORIZED SPORTS BETTORS AT A CASINO OF ANY

 S. 7509--B                         117
 
 PROMOTIONAL GAMING CREDIT SHALL NOT  BE  TAXABLE  FOR  THE  PURPOSES  OF
 DETERMINING SPORTS WAGERING GROSS REVENUE;
   (Y)  "Sports  wagering  lounge" means an area wherein a sports pool is
 operated;
   (Z) "TIER ONE SPORTS WAGER" MEANS A SPORTS WAGER  THAT  IS  DETERMINED
 SOLELY  BY  THE  FINAL  SCORE  OR  FINAL OUTCOME OF THE SPORTS EVENT AND
 PLACED BEFORE THE SPORTS EVENT HAS BEGUN;
   (AA) "TIER TWO SPORTS WAGER" MEANS AN IN-PLAY SPORTS WAGER; AND
   (BB) "TIER THREE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS NEITHER  A
 TIER ONE NOR A TIER TWO SPORTS WAGER.
   2.  No  gaming facility may conduct sports wagering until such time as
 there has been a change in federal law authorizing such or upon a ruling
 of a court of competent jurisdiction that such activity is lawful.
   3. (a) In addition to authorized gaming activities, a licensed  gaming
 facility  may when authorized by subdivision two of this section operate
 a sports pool upon the approval of the commission and in accordance with
 the provisions of this section and  applicable  regulations  promulgated
 pursuant  to this article. The commission shall hear and decide promptly
 and in reasonable order all applications for  a  license  to  operate  a
 sports  pool,  shall have the general responsibility for the implementa-
 tion of this section and shall have all other duties specified  in  this
 section  with  regard  to the operation of a sports pool. The license to
 operate a sports pool shall be in addition to any other license required
 to be issued to operate a gaming  facility.  No  license  to  operate  a
 sports  pool  shall  be issued by the commission to any entity unless it
 has established its financial stability,  integrity  and  responsibility
 and its good character, honesty and integrity.
   No  later  than five years after the date of the issuance of a license
 and every five years thereafter or within such  lesser  periods  as  the
 commission  may  direct,  a licensee shall submit to the commission such
 documentation  or  information  as  the  commission  may  by  regulation
 require, to demonstrate to the satisfaction of the executive director of
 the  commission  that the licensee continues to meet the requirements of
 the law and regulations.
   (b) A sports pool shall  be  operated  in  a  sports  wagering  lounge
 located  at  a  casino.  The  lounge  shall  conform to all requirements
 concerning square footage,  design,  equipment,  security  measures  and
 related matters which the commission shall by regulation prescribe.
   (c)  The operator of a sports pool shall establish or display the odds
 at which wagers may be placed on sports events.
   (d) An operator shall accept wagers on sports events only from persons
 physically present in the sports  wagering  lounge,  OR  THROUGH  MOBILE
 SPORTS  WAGERING OFFERED PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEV-
 EN-A OF THIS TITLE. A person placing a wager shall be at  least  twenty-
 one years of age.
   (e)  AN OPERATOR MAY ALSO ACCEPT LAYOFF BETS AS LONG AS THE AUTHORIZED
 SPORTS POOL PLACES SUCH WAGERS WITH ANOTHER AUTHORIZED  SPORTS  POOL  OR
 POOLS  IN  ACCORDANCE  WITH REGULATIONS OF THE COMMISSION. A SPORTS POOL
 THAT PLACES A LAYOFF BET SHALL INFORM  THE  SPORTS  POOL  ACCEPTING  THE
 WAGER THAT THE WAGER IS BEING PLACED BY A SPORTS POOL AND SHALL DISCLOSE
 ITS IDENTITY.
   (F)  AN  OPERATOR  MAY  UTILIZE GLOBAL RISK MANAGEMENT PURSUANT TO THE
 APPROVAL OF THE COMMISSION.
   (G) An operator shall not admit into the sports  wagering  lounge,  or
 accept wagers from, any person whose name appears on the exclusion list.

 S. 7509--B                         118

   [(f)]  (H)  The  holder  of  a  license  to  operate a sports pool may
 contract with [an entity] ONE OR MORE  AGENTS  to  conduct  ANY  OR  ALL
 ASPECTS  OF  that  operation, OR THE OPERATION OF MOBILE SPORTS WAGERING
 OFFERED PURSUANT TO  SECTION  THIRTEEN  HUNDRED  SIXTY-SEVEN-A  OF  THIS
 TITLE,  INCLUDING  BUT  NOT  LIMITED  TO  BRAND,  MARKETING AND CUSTOMER
 SERVICE, in accordance with the regulations  of  the  commission.  [That
 entity]  EACH AGENT shall obtain a license as a casino vendor enterprise
 prior to the execution of any such contract, and such license  shall  be
 issued  pursuant to the provisions of section one thousand three hundred
 twenty-seven of this article and  in  accordance  with  the  regulations
 promulgated by the commission.
   [(g)]  (I)  If any provision of this article or its application to any
 person or circumstance is held invalid, the invalidity shall not  affect
 other  provisions  or  applications  of  this article which can be given
 effect without the invalid provision or application, and to this end the
 provisions of this article are severable.
   4. (a) All persons employed directly  in  wagering-related  activities
 conducted  within a sports wagering lounge shall be licensed as a casino
 key employee or registered as a gaming employee, as  determined  by  the
 commission.  All  other employees who are working in the sports wagering
 lounge may be required to be registered, if appropriate,  in  accordance
 with regulations of the commission.
   (b)  Each operator of a sports pool shall designate one or more casino
 key employees who shall be responsible for the operation of  the  sports
 pool.  At  least  one  such casino key employee shall be on the premises
 whenever sports wagering is conducted.
   5. Except as otherwise provided by this article, the commission  shall
 have  the  authority  to regulate sports pools and the conduct of sports
 wagering under this article to the same extent that the commission regu-
 lates other gaming. No casino shall be authorized to  operate  a  sports
 pool  unless  it has produced information, documentation, and assurances
 concerning  its  financial  background  and  resources,  including  cash
 reserves,  that  are sufficient to demonstrate that it has the financial
 stability, integrity, and responsibility to operate a  sports  pool.  In
 developing  rules  and  regulations  applicable  to sports wagering, the
 commission shall examine the regulations  implemented  in  other  states
 where  sports  wagering  is  conducted and shall, as far as practicable,
 adopt a similar regulatory framework. The  commission  shall  promulgate
 regulations  necessary  to  carry  out  the  provisions of this section,
 including, but not limited to, regulations governing the:
   (a) amount of cash reserves to be maintained  by  operators  to  cover
 winning wagers;
   (b) acceptance of wagers on a series of sports events;
   (c)  maximum  wagers which may be accepted by an operator from any one
 patron on any one sports event;
   (d) type of wagering tickets which may be used;
   (e) method of issuing tickets;
   (f) method of accounting to be used by operators;
   (g) types of records which shall be kept;
   (h) use of credit and checks by patrons;
   (i) THE PROCESS BY WHICH A CASINO MAY PLACE A LAYOFF BET;
   (J) THE USE OF GLOBAL RISK MANAGEMENT;
   (K) type of system for wagering; and
   [(j)] (L) protections for a person placing a wager.
   6. Each operator  shall  adopt  comprehensive  house  rules  governing
 sports  wagering  transactions  with  its  [patrons]  AUTHORIZED  SPORTS

 S. 7509--B                         119
 
 BETTORS. The rules shall specify the  amounts  to  be  paid  on  winning
 wagers  and  the  effect of schedule changes.  The house rules, together
 with any other information the commission deems  appropriate,  shall  be
 conspicuously  displayed  in  the sports wagering lounge and included in
 the terms and conditions of the  account  wagering  system,  and  copies
 shall be made readily available to patrons.
   7. (A) EACH CASINO THAT OFFERS SPORTS WAGERING SHALL ANNUALLY SUBMIT A
 REPORT  TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY OF
 EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION:
   (I) THE TOTAL AMOUNT OF SPORTS WAGERS RECEIVED FROM AUTHORIZED  SPORTS
 BETTORS;
   (II) THE TOTAL AMOUNT OF PRIZES AWARDED TO AUTHORIZED SPORTS BETTORS;
   (III)  THE  TOTAL  AMOUNT OF SPORTS WAGERING GROSS REVENUE RECEIVED BY
 THE CASINO;
   (IV) THE TOTAL AMOUNT CONTRIBUTED TO THE SPORT BETTING INTEGRITY  FUND
 PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION;
   (V)  THE  TOTAL  AMOUNT  OF  WAGERS  RECEIVED ON EACH SPORTS GOVERNING
 BODY'S SPORTING EVENTS;
   (VI) THE TOTAL NUMBER OF AUTHORIZED SPORTS BETTORS THAT  REQUESTED  TO
 EXCLUDE THEMSELVES FROM SPORTS WAGERING; AND
   (VII)  ANY  ADDITIONAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY
 TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
   (B) UPON THE SUBMISSION OF SUCH ANNUAL REPORT, TO SUCH EXTENT THAT THE
 COMMISSION DEEMS IT TO BE IN THE PUBLIC INTEREST, THE  COMMISSION  SHALL
 BE  AUTHORIZED  TO CONDUCT A FINANCIAL AUDIT OF ANY CASINO, AT ANY TIME,
 TO ENSURE COMPLIANCE WITH THIS ARTICLE.
   (C) THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE-
 GATE INFORMATION PROVIDED BY ALL CASINOS PURSUANT TO  PARAGRAPH  (A)  OF
 THIS  SUBDIVISION,  WHICH SHALL BE PUBLISHED ON THE COMMISSION'S WEBSITE
 NO LATER THAN ONE  HUNDRED  EIGHTY  DAYS  AFTER  THE  DEADLINE  FOR  THE
 SUBMISSION OF INDIVIDUAL REPORTS AS SPECIFIED IN SUCH PARAGRAPH (A).
   8. (A) WITHIN THIRTY DAYS OF THE END OF EACH CALENDAR QUARTER, A CASI-
 NO  OFFERING  SPORTS  WAGERING  SHALL  REMIT  TO THE COMMISSION A SPORTS
 WAGERING INTEGRITY FEE OF UP TO ONE-QUARTER OF ONE PERCENT OF THE AMOUNT
 WAGERED ON SPORTS EVENTS, HOWEVER, IN NO CASE SHALL THE INTEGRITY FEE BE
 GREATER THAN TWO PERCENT OF THE CASINO'S SPORTS WAGERING GROSS  REVENUE.
 THE  FEE  SHALL  BE REMITTED ON A FORM AS THE COMMISSION MAY REQUIRE, ON
 WHICH THE CASINO SHALL IDENTIFY THE PERCENTAGE OF  WAGERING  DURING  THE
 REPORTING  PERIOD  ATTRIBUTABLE  TO  EACH  SPORT GOVERNING BODY'S SPORTS
 EVENTS.
   (B) NO LATER THAN THE THIRTIETH  OF  APRIL  OF  EACH  YEAR,  A  SPORTS
 GOVERNING  BODY  MAY  SUBMIT  A  CLAIM FOR DISBURSEMENT OF THE INTEGRITY
 FUNDS REMITTED BY CASINOS IN THE PREVIOUS  CALENDAR  YEAR  IN  PRO  RATA
 PROPORTION OF THE TOTAL AMOUNT WAGERED ON THEIR RESPECTIVE SPORTS EVENTS
 TO  REIMBURSE THE SPORTS GOVERNING BODY FOR EXPENSES INCURRED FOR INTEG-
 RITY OPERATIONS.  ELIGIBLE EXPENSES SHALL INCLUDE, BUT  NOT  BE  LIMITED
 TO, INTEGRITY MONITORING EXPENSES, EXPENSES INCURRED RELATED TO INTEGRI-
 TY  INVESTIGATIONS,  PUBLIC RELATIONS EXPENSES ASSOCIATED WITH INTEGRITY
 ISSUES, AND ANY OTHER ELIGIBLE EXPENSES APPROVED BY THE COMMISSION.
   (C) EACH SPORTS GOVERNING BODY WHICH RECEIVES IN EXCESS OF FIFTY-THOU-
 SAND DOLLARS ANNUALLY FROM THE INTEGRITY FEE  SHALL  ANNUALLY  SUBMIT  A
 REPORT  TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY OF
 EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION:
   (I) THE TOTAL AMOUNT OF INTEGRITY FUND REIMBURSEMENT RECEIVED FROM NEW
 YORK;

 S. 7509--B                         120
 
   (II) A DETAILED SUMMARY OF THE FINAL DISPOSITIONS OF INTEGRITY  INVES-
 TIGATIONS WHERE IT WAS DETERMINED THAT MISCONDUCT TOOK PLACE;
   (III)  ANY  ADDITIONAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY
 TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
   (D) UPON THE SUBMISSION OF SUCH ANNUAL REPORT, TO SUCH EXTENT THAT THE
 COMMISSION DEEMS IT TO BE IN THE PUBLIC INTEREST, THE  COMMISSION  SHALL
 BE AUTHORIZED TO CONDUCT A FINANCIAL AUDIT OF ANY SPORTS GOVERNING BODY,
 AT ANY TIME, TO ENSURE COMPLIANCE WITH THIS ARTICLE.
   (E) THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE-
 GATE  INFORMATION  PROVIDED  BY  ALL SPORTS GOVERNING BODIES PURSUANT TO
 PARAGRAPH (C) OF THIS SUBDIVISION,  WHICH  SHALL  BE  PUBLISHED  ON  THE
 COMMISSION'S  WEBSITE  NO  LATER  THAN ONE HUNDRED EIGHTY DAYS AFTER THE
 DEADLINE FOR THE SUBMISSION OF INDIVIDUAL REPORTS AS SPECIFIED IN  PARA-
 GRAPH (C) OF THIS SUBDIVISION.
   (F)  AT THE END OF THE YEAR, ANY UNCLAIMED INTEGRITY FEE REVENUE SHALL
 BE DISTRIBUTED TO THE SPORTS GOVERNING BODIES  WHICH  WERE  APPROVED  TO
 RECEIVE FUNDING, ON A PRO RATA BASIS.
   9. FOR THE PRIVILEGE OF CONDUCTING SPORTS WAGERING IN THE STATE, CASI-
 NOS  SHALL  PAY  A TAX EQUIVALENT TO EIGHT AND ONE-HALF PERCENT OF THEIR
 SPORTS WAGERING GROSS REVENUE.
   10. THE COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING  REVENUE  FUND
 ESTABLISHED  PURSUANT  TO SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE
 LAW EIGHTY-FIVE PERCENT OF THE STATE TAX IMPOSED BY  THIS  SECTION;  ANY
 INTEREST  AND  PENALTIES  IMPOSED  BY  THE  COMMISSION RELATING TO THOSE
 TAXES; ALL PENALTIES LEVIED AND COLLECTED BY  THE  COMMISSION;  AND  THE
 APPROPRIATE  FUNDS,  CASH  OR PRIZES FORFEITED FROM SPORTS WAGERING. THE
 COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE
 STATE TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR PROBLEM GAMBLING
 EDUCATION AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF  SUBDIVISION
 FIVE  OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW. THE COMMIS-
 SION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE
 TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR THE COST OF REGULATION
 PURSUANT TO PARAGRAPH C OF SUBDIVISION FIVE OF SECTION NINETY-SEVEN-NNNN
 OF THE STATE FINANCE LAW.  THE COMMISSION SHALL PAY INTO THE  COMMERCIAL
 GAMING  FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE
 DISTRIBUTED IN THE SAME FORMULA AS MARKET  ORIGIN  CREDITS  PURSUANT  TO
 SECTION  ONE  HUNDRED  FIFTEEN-B  OF  THIS CHAPTER. THE COMMISSION SHALL
 REQUIRE AT LEAST MONTHLY DEPOSITS BY THE CASINO OF ANY PAYMENTS PURSUANT
 TO SUBDIVISION NINE OF THIS SECTION, AT SUCH TIMES,  UNDER  SUCH  CONDI-
 TIONS,  AND  IN  SUCH  DEPOSITORIES  AS SHALL BE PRESCRIBED BY THE STATE
 COMPTROLLER. THE DEPOSITS SHALL BE DEPOSITED TO THE CREDIT OF THE  STATE
 COMMERCIAL  GAMING  REVENUE FUND. THE COMMISSION SHALL REQUIRE A MONTHLY
 REPORT AND RECONCILIATION STATEMENT TO BE FILED WITH IT ON OR BEFORE THE
 TENTH DAY OF EACH MONTH, WITH RESPECT TO  GROSS  REVENUES  AND  DEPOSITS
 RECEIVED AND MADE, RESPECTIVELY, DURING THE PRECEDING MONTH.
   11.  THE  COMMISSION  MAY PERFORM AUDITS OF THE BOOKS AND RECORDS OF A
 CASINO, AT SUCH TIMES AND INTERVALS AS IT  DEEMS  APPROPRIATE,  FOR  THE
 PURPOSE  OF  DETERMINING  THE  SUFFICIENCY  OF TAX PAYMENTS. IF A RETURN
 REQUIRED WITH REGARD TO OBLIGATIONS IMPOSED IS NOT FILED, OR IF A RETURN
 WHEN FILED OR IS DETERMINED BY THE COMMISSION TO BE INCORRECT OR  INSUF-
 FICIENT  WITH OR WITHOUT AN AUDIT, THE AMOUNT OF TAX DUE SHALL BE DETER-
 MINED BY THE COMMISSION. NOTICE OF SUCH DETERMINATION SHALL BE GIVEN  TO
 THE  CASINO  LIABLE FOR THE PAYMENT OF THE TAX. SUCH DETERMINATION SHALL
 FINALLY AND IRREVOCABLY FIX THE TAX UNLESS THE CASINO AGAINST WHOM IT IS
 ASSESSED, WITHIN THIRTY DAYS AFTER RECEIVING  NOTICE  OF  SUCH  DETERMI-

 S. 7509--B                         121
 
 NATION,  SHALL  APPLY TO THE COMMISSION FOR A HEARING IN ACCORDANCE WITH
 THE REGULATIONS OF THE COMMISSION.
   12.  NOTHING IN THIS SECTION SHALL APPLY TO INTERACTIVE FANTASY SPORTS
 OFFERED PURSUANT TO ARTICLE FOURTEEN OF THIS CHAPTER.   NOTHING IN  THIS
 SECTION  AUTHORIZES  ANY ENTITY THAT CONDUCTS INTERACTIVE FANTASY SPORTS
 OFFERED PURSUANT TO ARTICLE FOURTEEN OF THIS CHAPTER TO  CONDUCT  SPORTS
 WAGERING  UNLESS IT SEPARATELY QUALIFIES FOR, AND OBTAINS, AUTHORIZATION
 PURSUANT TO THIS SECTION.
   13. A CASINO THAT IS ALSO LICENSED UNDER ARTICLE THREE OF  THIS  CHAP-
 TER,  AND  MUST MAINTAIN RACING PURSUANT TO PARAGRAPH (B) OF SUBDIVISION
 ONE OF SECTION THIRTEEN HUNDRED FIFTY-FIVE OF  THIS  CHAPTER,  SHALL  BE
 ALLOWED  TO OFFER PARI-MUTUEL WAGERING ON HORSE RACING EVENTS IN ACCORD-
 ANCE WITH THEIR LICENSE UNDER ARTICLE THREE OF  THIS  CHAPTER.  NOTWITH-
 STANDING  SUBPARAGRAPH (II) OF PARAGRAPH C OF SUBDIVISION TWO OF SECTION
 ONE THOUSAND EIGHT OF THIS CHAPTER, A CASINO  LOCATED  IN  THE  CITY  OF
 SCHENECTADY  SHALL  BE  ALLOWED  TO  OFFER PARI-MUTUEL WAGERING ON HORSE
 RACING EVENTS, PROVIDED SUCH WAGERING IS CONDUCTED BY THE REGIONAL  OFF-
 TRACK  BETTING  CORPORATION IN SUCH REGION AS THE CASINO IS LOCATED. ANY
 OTHER CASINO SHALL BE ALLOWED TO OFFER  PARI-MUTUEL  WAGERING  ON  HORSE
 RACING  EVENTS, PROVIDED SUCH WAGERING IS CONDUCTED BY THE REGIONAL OFF-
 TRACK BETTING CORPORATION IN SUCH REGION AS THE CASINO IS LOCATED.   ANY
 PHYSICAL  LOCATION  WHERE PARI-MUTUEL WAGERING ON HORSE RACING EVENTS IS
 OFFERED BY A CASINO AND CONDUCTED BY A REGIONAL OFF-TRACK BETTING CORPO-
 RATION IN ACCORDANCE WITH THIS SUBDIVISION  SHALL  BE  DEEMED  TO  BE  A
 BRANCH LOCATION OF THE REGIONAL OFF-TRACK BETTING CORPORATION IN ACCORD-
 ANCE  WITH SECTION ONE THOUSAND EIGHT OF THIS CHAPTER. IN THE EVENT THAT
 THE COMMISSION APPROVES  THE  LOCATION  OF  SELF-SERVICE  MOBILE  SPORTS
 BETTING  KIOSKS  ON  THE PREMISES OF AFFILIATES IN ACCORDANCE WITH PARA-
 GRAPH (D) OF SUBDIVISION FIVE OF SECTION THIRTEEN HUNDRED  SIXTY-SEVEN-A
 OF  THIS  CHAPTER, SUCH KIOSKS SHALL NOT BE ALLOWED TO OFFER PARI-MUTUEL
 WAGERING ON HORSE RACING EVENTS.
   14. A SPORTS GOVERNING BODY MAY NOTIFY THE COMMISSION THAT IT  DESIRES
 TO  RESTRICT,  LIMIT,  OR  EXCLUDE  WAGERING  ON  ITS SPORTING EVENTS BY
 PROVIDING NOTICE IN THE FORM AND MANNER AS THE COMMISSION  MAY  REQUIRE.
 UPON  RECEIVING  SUCH NOTICE, THE COMMISSION SHALL REVIEW THE REQUEST IN
 GOOD FAITH, SEEK INPUT FROM THE CASINOS ON SUCH A REQUEST,  AND  IF  THE
 COMMISSION DEEMS IT APPROPRIATE, PROMULGATE REGULATIONS TO RESTRICT SUCH
 SPORTS  WAGERING. IF THE COMMISSION DENIES A REQUEST, THE SPORTS GOVERN-
 ING BODY SHALL BE AFFORDED NOTICE AND THE RIGHT TO BE  HEARD  AND  OFFER
 PROOF  IN  OPPOSITION TO SUCH DETERMINATION IN ACCORDANCE WITH THE REGU-
 LATIONS OF  THE  COMMISSION.  OFFERING  OR  TAKING  WAGERS  CONTRARY  TO
 RESTRICTIONS  PROMULGATED  BY  THE  COMMISSION  IS  A  VIOLATION OF THIS
 SECTION. IN THE EVENT THAT THE REQUEST IS IN RELATION  TO  AN  EMERGENCY
 SITUATION,  THE  EXECUTIVE  DIRECTOR  OF  THE COMMISSION MAY TEMPORARILY
 PROHIBIT THE SPECIFIC WAGER IN QUESTION UNTIL  THE  COMMISSION  HAS  THE
 OPPORTUNITY TO ISSUE TEMPORARY REGULATIONS ADDRESSING THE ISSUE.
   15.  (A)  THE  COMMISSION  SHALL  DESIGNATE  THE DIVISION OF THE STATE
 POLICE TO HAVE PRIMARY RESPONSIBILITY FOR CONDUCTING, OR  ASSISTING  THE
 COMMISSION IN CONDUCTING, INVESTIGATIONS INTO ABNORMAL BETTING ACTIVITY,
 MATCH  FIXING,  AND  OTHER  CONDUCT THAT CORRUPTS A BETTING OUTCOME OF A
 SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN.
   (B) THE COMMISSION AND CASINOS  SHALL  COOPERATE  WITH  INVESTIGATIONS
 CONDUCTED  BY  SPORTS  GOVERNING  BODIES  OR  LAW  ENFORCEMENT AGENCIES,
 INCLUDING BUT NOT LIMITED TO PROVIDING OR FACILITATING THE PROVISION  OF
 ACCOUNT-LEVEL  BETTING  INFORMATION AND AUDIO OR VIDEO FILES RELATING TO
 PERSONS PLACING WAGERS; PROVIDED, HOWEVER, THAT THE CASINO  BE  REQUIRED

 S. 7509--B                         122
 
 TO SHARE ANY PERSONALLY IDENTIFIABLE INFORMATION OF AN AUTHORIZED SPORTS
 BETTOR  WITH  A SPORTS GOVERNING BODY ONLY PURSUANT TO AN ORDER TO DO SO
 BY THE COMMISSION OR A LAW ENFORCEMENT  AGENCY  OR  COURT  OF  COMPETENT
 JURISDICTION.
   (C) CASINOS SHALL IMMEDIATELY REPORT TO THE COMMISSION ANY INFORMATION
 RELATING TO:
   (I)  CRIMINAL OR DISCIPLINARY PROCEEDINGS COMMENCED AGAINST THE CASINO
 IN CONNECTION WITH ITS OPERATIONS;
   (II) ABNORMAL BETTING ACTIVITY OR PATTERNS THAT MAY INDICATE A CONCERN
 WITH THE INTEGRITY OF A SPORTING EVENT OR EVENTS;
   (III) ANY POTENTIAL BREACH OF THE  RELEVANT  SPORTS  GOVERNING  BODY'S
 INTERNAL  RULES  AND  CODES OF CONDUCT PERTAINING TO SPORTS WAGERING, AS
 THEY HAVE BEEN PROVIDED BY THE SPORTS GOVERNING BODY TO THE CASINO;
   (IV) ANY OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF  A  SPORTING
 EVENT  OR EVENTS FOR PURPOSES OF FINANCIAL GAIN, INCLUDING MATCH FIXING;
 AND
   (V) SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING USE OF  FUNDS
 DERIVED  FROM  ILLEGAL  ACTIVITY,  WAGERS  TO  CONCEAL  OR LAUNDER FUNDS
 DERIVED FROM ILLEGAL ACTIVITY,  USING  AGENTS  TO  PLACE  WAGERS,  USING
 CONFIDENTIAL NON-PUBLIC INFORMATION, AND USING FALSE IDENTIFICATION.
   THE  COMMISSION  SHALL ALSO IMMEDIATELY REPORT INFORMATION RELATING TO
 CONDUCT DESCRIBED IN SUBPARAGRAPHS (II), (III) AND (IV)  OF  THIS  PARA-
 GRAPH TO THE RELEVANT SPORTS GOVERNING BODY.
   (D) CASINOS SHALL MAINTAIN THE CONFIDENTIALITY OF INFORMATION PROVIDED
 BY  A SPORTS GOVERNING BODY TO THE CASINO, UNLESS DISCLOSURE IS REQUIRED
 BY THIS SECTION, THE COMMISSION, OTHER LAW, OR COURT ORDER.
   16. CASINOS SHALL USE WHATEVER DATA SOURCE THEY DEEM  APPROPRIATE  FOR
 DETERMINING  THE  RESULT  OF  SPORTS  WAGERING INVOLVING TIER ONE SPORTS
 WAGERS. CASINOS SHALL ONLY USE OFFICIAL LEAGUE DATA IN ALL SPORTS WAGER-
 ING INVOLVING TIER TWO SPORTS WAGERS, IF THE RELEVANT  SPORTS  GOVERNING
 BODY  POSSESSES  A  FEED  OF  OFFICIAL  LEAGUE DATA, AND MAKES SUCH FEED
 AVAILABLE FOR PURCHASE BY THE CASINOS. A SPORTS GOVERNING BODY MAY NOTI-
 FY THE COMMISSION THAT IT DESIRES TO REQUIRE  CASINOS  TO  USE  OFFICIAL
 LEAGUE  DATA  IN  SPORTS  WAGERING  INVOLVING SPECIFIC TIER THREE SPORTS
 WAGERS BY PROVIDING NOTICE IN THE FORM AND MANNER AS THE COMMISSION  MAY
 REQUIRE.  UPON  RECEIVING  SUCH  NOTICE, THE COMMISSION SHALL REVIEW THE
 REQUEST, SEEK INPUT FROM THE CASINOS ON  SUCH  A  REQUEST,  AND  IF  THE
 COMMISSION DEEMS IT APPROPRIATE, PROMULGATE REGULATIONS TO REQUIRE CASI-
 NOS  TO  USE OFFICIAL LEAGUE DATA ON SPORTS WAGERING INVOLVING SUCH TIER
 THREE SPORTS WAGERS IF THE RELEVANT SPORTS GOVERNING  BODY  POSSESSES  A
 FEED OF OFFICIAL LEAGUE DATA, AND MAKES SUCH FEED AVAILABLE FOR PURCHASE
 BY  THE  CASINOS.  NO CASINO SHALL ENTER INTO AN AGREEMENT WITH A SPORTS
 GOVERNING BODY TO BE THE EXCLUSIVE RECIPIENT OF  THEIR  OFFICIAL  LEAGUE
 DATA.
   17.  (A) CASINOS SHALL MAINTAIN RECORDS OF ALL BETS AND WAGERS PLACED,
 INCLUDING PERSONALLY  IDENTIFIABLE  INFORMATION  OF  THE  MOBILE  SPORTS
 WAGERING  BETTOR,  AMOUNT  AND  TYPE  OF  BET,  TIME THE BET WAS PLACED,
 LOCATION OF THE BET, INCLUDING IP ADDRESS IF APPLICABLE, THE OUTCOME  OF
 THE  BET,  RECORDS  OF  ABNORMAL  BETTING  ACTIVITY,  AND  VIDEO  CAMERA
 RECORDINGS IN THE CASE OF IN-PERSON WAGERS  FOR  AT  LEAST  THREE  YEARS
 AFTER  THE  SPORTING  EVENT  OCCURS  AND  MAKE  SUCH  DATA AVAILABLE FOR
 INSPECTION UPON REQUEST OF THE COMMISSION OR AS REQUIRED BY COURT ORDER.
   (B) IF A SPORTS GOVERNING BODY HAS NOTIFIED THE COMMISSION THAT  REAL-
 TIME  INFORMATION SHARING FOR WAGERS PLACED ON SPORTING EVENTS IS NECES-
 SARY AND DESIRABLE, CASINOS SHALL SHARE IN REAL TIME,  AT  THE  ACCOUNT-
 LEVEL, AND IN PSEUDONYMOUS FORM, THE INFORMATION REQUIRED TO BE RETAINED

 S. 7509--B                         123
 
 PURSUANT  TO  PARAGRAPH (A) OF THIS SUBDIVISION (OTHER THAN VIDEO FILES)
 WITH THE COMMISSION, AND THE COMMISSION SHALL SHARE  IN  REAL  TIME  THE
 INFORMATION  WITH THE SPORTS GOVERNING BODY OR ITS DESIGNEE WITH RESPECT
 TO WAGERS ON ITS SPORTING EVENTS.
   (C)  THE  COMMISSION  SHALL COOPERATE WITH A SPORTS GOVERNING BODY AND
 CASINOS TO ENSURE THE TIMELY, EFFICIENT, AND ACCURATE SHARING OF  INFOR-
 MATION.
   18.  A CASINO SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
 SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
   19. SPORTS WAGERING CONDUCTED  PURSUANT  TO  THE  PROVISIONS  OF  THIS
 SECTION IS HEREBY AUTHORIZED.
   20.  THE  CONDUCT  OF  SPORTS WAGERING IN VIOLATION OF THIS SECTION IS
 PROHIBITED.
   21. ANY PERSON, FIRM, CORPORATION, ASSOCIATION, AGENT, OR EMPLOYEE WHO
 KNOWINGLY VIOLATES ANY PROCEDURE  IMPLEMENTED  UNDER  THIS  SECTION,  OR
 SECTION  THIRTEEN  HUNDRED  SIXTY-SEVEN-A OF THIS TITLE, SHALL BE LIABLE
 FOR A CIVIL PENALTY OF NOT MORE THAN  FIVE  THOUSAND  DOLLARS  FOR  EACH
 VIOLATION,  NOT  TO EXCEED FIFTY THOUSAND DOLLARS FOR VIOLATIONS ARISING
 OUT OF THE SAME TRANSACTION OR OCCURRENCE, WHICH  SHALL  ACCRUE  TO  THE
 STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION.
   §  2.  The racing, pari-mutuel wagering and breeding law is amended by
 adding a new section 1367-a to read as follows:
   § 1367-A. MOBILE SPORTS WAGERING. 1. AS  USED  IN  THIS  SECTION,  THE
 FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "AFFILIATE"  MEANS  ANY OFF-TRACK BETTING CORPORATION, FRANCHISED
 CORPORATION, OR RACE TRACK LICENSED PURSUANT TO THE RACING,  PARI-MUTUEL
 WAGERING  AND  BREEDING  LAW,  OR AN OPERATOR OF VIDEO LOTTERY GAMING AT
 AQUEDUCT LICENSED PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE
 TAX LAW, WHICH HAS A MOBILE SPORTS  WAGERING  AGREEMENT  WITH  A  CASINO
 PURSUANT TO THIS SECTION;
   (B)  "AGENT"  MEANS  AN  ENTITY  THAT  IS  PARTY  TO A CONTRACT WITH A
 LICENSED GAMING FACILITY AUTHORIZED TO OPERATE  A  SPORTS  POOL  AND  IS
 APPROVED  BY  THE  COMMISSION TO OPERATE A SPORTS POOL ON BEHALF OF SUCH
 LICENSED GAMING FACILITY;
   (C) "AUTHORIZED SPORTS BETTOR" MEANS AN INDIVIDUAL WHO  IS  PHYSICALLY
 PRESENT  IN THIS STATE WHEN PLACING A SPORTS WAGER, WHO IS NOT A PROHIB-
 ITED SPORTS BETTOR, THAT PARTICIPATES IN SPORTS WAGERING  OFFERED  BY  A
 CASINO.  THE  INTERMEDIATE ROUTING OF ELECTRONIC DATA IN CONNECTION WITH
 MOBILE SPORTS WAGERING SHALL NOT DETERMINE THE LOCATION OR LOCATIONS  IN
 WHICH A WAGER IS INITIATED, RECEIVED OR OTHERWISE MADE;
   (D)  "CASINO"  MEANS  A  LICENSED GAMING FACILITY AT WHICH GAMBLING IS
 CONDUCTED PURSUANT TO THE PROVISIONS OF THIS ARTICLE  OR  THE  AGENT  OF
 SUCH LICENSED GAMING FACILITY;
   (E)  "COLLEGIATE  SPORT  OR  ATHLETIC EVENT" MEANS A SPORT OR ATHLETIC
 EVENT OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A  PUBLIC  OR
 PRIVATE  INSTITUTION THAT OFFERS EDUCATION SERVICES BEYOND THE SECONDARY
 LEVEL;
   (F) "COMMISSION" MEANS THE COMMISSION ESTABLISHED PURSUANT TO  SECTION
 ONE HUNDRED TWO OF THIS CHAPTER;
   (G)  "HIGH  SCHOOL  SPORT OR ATHLETIC EVENT" MEANS A SPORT OR ATHLETIC
 EVENT OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A  PUBLIC  OR
 PRIVATE  INSTITUTION  THAT  OFFERS  EDUCATION  SERVICES AT THE SECONDARY
 LEVEL;
   (H) "HORSE RACING EVENT" MEANS ANY SPORT OR ATHLETIC  EVENT  CONDUCTED
 IN  NEW  YORK  STATE  SUBJECT  TO THE PROVISIONS OF ARTICLES TWO, THREE,
 FOUR, FIVE, SIX, NINE, TEN AND ELEVEN OF THIS CHAPTER, OR ANY  SPORT  OR

 S. 7509--B                         124
 
 ATHLETIC  EVENT  CONDUCTED OUTSIDE OF NEW YORK STATE, WHICH IF CONDUCTED
 IN NEW YORK STATE WOULD BE SUBJECT TO THE PROVISIONS OF THIS CHAPTER;
   (I) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS;
   (J) "MOBILE SPORTS WAGERING PLATFORM" OR "PLATFORM" MEANS THE COMBINA-
 TION  OF  HARDWARE, SOFTWARE, AND DATA NETWORKS USED TO MANAGE, ADMINIS-
 TER, OR CONTROL SPORTS WAGERING AND ANY ASSOCIATED WAGERS ACCESSIBLE  BY
 ANY   ELECTRONIC   MEANS  INCLUDING  MOBILE  APPLICATIONS  AND  INTERNET
 WEBSITES;
   (K) "OPERATOR" MEANS AN ENTITY OFFERING A MOBILE SPORTS WAGERING PLAT-
 FORM INCLUDING AN AGENT;
   (L) "PROFESSIONAL SPORT OR ATHLETIC EVENT" MEANS AN EVENT AT WHICH TWO
 OR MORE PERSONS PARTICIPATE IN SPORTS OR  ATHLETIC  EVENTS  AND  RECEIVE
 COMPENSATION  IN  EXCESS  OF  ACTUAL EXPENSES FOR THEIR PARTICIPATION IN
 SUCH EVENT;
   (M) "PROHIBITED SPORTS BETTOR" MEANS:
   (I) ANY OFFICER OR EMPLOYEE OF THE COMMISSION;
   (II) ANY PRINCIPAL OR KEY EMPLOYEE OF A CASINO OR AFFILIATE, EXCEPT AS
 MAY BE PERMITTED BY THE COMMISSION FOR GOOD CAUSE SHOWN;
   (III) ANY CASINO GAMING OR NON-GAMING  EMPLOYEE  AT  THE  CASINO  THAT
 EMPLOYS SUCH PERSON AND AT ANY AFFILIATE THAT HAS AN AGREEMENT WITH THAT
 CASINO;
   (IV)  ANY  CONTRACTOR,  SUBCONTRACTOR,  OR  CONSULTANT,  OR OFFICER OR
 EMPLOYEE OF A CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OF A  CASINO  IF
 SUCH  PERSON  IS  DIRECTLY  INVOLVED  IN THE OPERATION OR OBSERVATION OF
 SPORTS  WAGERING,  OR  THE  PROCESSING  OF  SPORTS  WAGERING  CLAIMS  OR
 PAYMENTS;
   (V)  ANY  PERSON  SUBJECT  TO  A  CONTRACT WITH THE COMMISSION IF SUCH
 CONTRACT CONTAINS A PROVISION PROHIBITING SUCH PERSON FROM PARTICIPATING
 IN SPORTS WAGERING;
   (VI) ANY SPOUSE, CHILD, BROTHER, SISTER OR PARENT RESIDING AS A MEMBER
 OF THE SAME HOUSEHOLD IN THE PRINCIPAL PLACE OF  ABODE  OF  ANY  OF  THE
 FOREGOING  PERSONS  AT  THE  SAME  CASINO  WHERE THE FOREGOING PERSON IS
 PROHIBITED FROM PARTICIPATING IN SPORTS WAGERING;
   (VII) ANY INDIVIDUAL WITH ACCESS TO NON-PUBLIC  CONFIDENTIAL  INFORMA-
 TION ABOUT SPORTS WAGERING;
   (VIII)  ANY  AMATEUR  OR  PROFESSIONAL  ATHLETE IF THE SPORTS WAGER IS
 BASED ON ANY SPORT OR ATHLETIC EVENT OVERSEEN BY  THE  ATHLETE'S  SPORTS
 GOVERNING BODY;
   (IX)  ANY SPORTS AGENT, OWNER OR EMPLOYEE OF A TEAM, PLAYER AND UMPIRE
 UNION PERSONNEL, AND EMPLOYEE REFEREE, COACH OR  OFFICIAL  OF  A  SPORTS
 GOVERNING  BODY,  IF  THE SPORTS WAGER IS BASED ON ANY SPORT OR ATHLETIC
 EVENT OVERSEEN BY THE INDIVIDUAL'S SPORTS GOVERNING BODY;
   (X) ANY INDIVIDUAL PLACING A WAGER AS AN AGENT OR PROXY FOR AN  OTHER-
 WISE PROHIBITED SPORTS BETTOR; OR
   (XI) ANY MINOR;
   (N)  "PROHIBITED SPORTS EVENT" MEANS ANY HIGH SCHOOL SPORT OR ATHLETIC
 EVENT;
   (O) "SPORTS EVENT" MEANS ANY PROFESSIONAL SPORT OR ATHLETIC EVENT  AND
 ANY  COLLEGIATE  SPORT  OR  ATHLETIC  EVENT,  EXCEPT A PROHIBITED SPORTS
 EVENT;
   (P) "SPORTS GOVERNING BODY" MEANS  THE  ORGANIZATION  THAT  PRESCRIBES
 FINAL  RULES  AND  ENFORCES  CODES OF CONDUCT WITH RESPECT TO A SPORTING
 EVENT AND PARTICIPANTS THEREIN;
   (Q) "SPORTS POOL" MEANS THE BUSINESS OF ACCEPTING WAGERS ON ANY SPORTS
 EVENT BY ANY SYSTEM OR METHOD OF WAGERING;

 S. 7509--B                         125
 
   (R) "SPORTS WAGER" MEANS CASH OR CASH EQUIVALENT THAT IS  PAID  BY  AN
 AUTHORIZED  SPORTS  BETTOR TO A CASINO TO PARTICIPATE IN SPORTS WAGERING
 OFFERED BY SUCH CASINO;
   (S) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION
 THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTIC-
 IPATING  IN  A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY ANY
 SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED  TO,  IN-PERSON
 COMMUNICATION AND ELECTRONIC COMMUNICATION THROUGH INTERNET WEBSITES AND
 MOBILE  DEVICE  APPLICATIONS.  THE TERM "SPORTS WAGERING" SHALL INCLUDE,
 BUT IS NOT LIMITED TO, SINGLE-GAME BETS, TEASER BETS, PARLAYS,  OVER-UN-
 DER BETS, MONEYLINE, POOLS, EXCHANGE WAGERING, IN-GAME WAGERING, IN-PLAY
 BETS, PROPOSITION BETS AND STRAIGHT BETS; AND
   (T) "SPORTS WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE
 TOTAL  OF ALL SPORTS WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS
 THAT AN OPERATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF  ALL  SUMS
 NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS PAID OUT AS WINNINGS TO ALL
 SPORTS BETTORS, HOWEVER, THAT THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS
 TO  SPORTS  BETTORS  SHALL  NOT INCLUDE THE CASH EQUIVALENT VALUE OF ANY
 MERCHANDISE OR THING OF VALUE AWARDED AS A PRIZE; OR (II) IN THE CASE OF
 EXCHANGE WAGERING PURSUANT TO THIS SECTION, THE  COMMISSION  ON  WINNING
 SPORTS WAGERS BY AUTHORIZED SPORTS BETTORS RETAINED BY THE OPERATOR. THE
 ISSUANCE  TO OR WAGERING BY AUTHORIZED SPORTS BETTORS AT A CASINO OF ANY
 PROMOTIONAL GAMING CREDITS SHALL NOT BE  TAXABLE  FOR  THE  PURPOSES  OF
 DETERMINING SPORTS WAGERING GROSS REVENUE.
   2. (A) NO CASINO SHALL ADMINISTER, MANAGE, OR OTHERWISE MAKE AVAILABLE
 A  MOBILE  SPORTS WAGERING PLATFORM TO PERSONS LOCATED IN NEW YORK STATE
 UNLESS REGISTERED WITH THE COMMISSION PURSUANT TO THIS SECTION. A CASINO
 MAY USE MULTIPLE MOBILE SPORTS WAGERING  PLATFORMS  PROVIDED  THAT  EACH
 PLATFORM  HAS BEEN REVIEWED AND APPROVED BY THE COMMISSION. A CASINO MAY
 CONTRACT WITH ONE OR MORE INDEPENDENT OPERATORS TO  PROVIDE  ITS  MOBILE
 SPORTS WAGERING PLATFORMS.
   (B)  REGISTRATIONS ISSUED BY THE COMMISSION SHALL REMAIN IN EFFECT FOR
 FIVE YEARS. THE COMMISSION SHALL ESTABLISH A PROCESS FOR RENEWAL.
   (C) THE COMMISSION SHALL PUBLISH A LIST OF ALL CASINOS  REGISTERED  TO
 OFFER  MOBILE SPORTS WAGERING IN NEW YORK STATE PURSUANT TO THIS SECTION
 ON THE COMMISSION'S WEBSITE FOR PUBLIC USE.
   (D) THE COMMISSION  SHALL  PROMULGATE  REGULATIONS  TO  IMPLEMENT  THE
 PROVISIONS  OF  THIS  SECTION,  INCLUDING THE DEVELOPMENT OF THE INITIAL
 FORM OF THE APPLICATION FOR REGISTRATION. SUCH REGULATIONS SHALL PROVIDE
 FOR THE REGISTRATION AND OPERATION OF MOBILE SPORTS WAGERING IN NEW YORK
 STATE AND SHALL INCLUDE, BUT NOT BE LIMITED TO, RESPONSIBLE  PROTECTIONS
 WITH REGARD TO COMPULSIVE PLAY AND SAFEGUARDS FOR FAIR PLAY.
   3.  IN  THE EVENT THAT A CASINO CONTRACTS WITH ONE OR MORE INDEPENDENT
 OPERATORS TO PROVIDE ITS MOBILE SPORTS WAGERING  PLATFORMS,  EACH  INDE-
 PENDENT  ENTITY  SHALL  OBTAIN  A  LICENSE AS A CASINO VENDOR ENTERPRISE
 PRIOR TO THE EXECUTION OF ANY SUCH CONTRACT, AND SUCH LICENSE  SHALL  BE
 ISSUED  PURSUANT TO THE PROVISIONS OF SECTION ONE THOUSAND THREE HUNDRED
 TWENTY-SEVEN OF THIS ARTICLE AND  IN  ACCORDANCE  WITH  THE  REGULATIONS
 PROMULGATED BY THE COMMISSION.
   4. (A) AS A CONDITION OF REGISTRATION IN NEW YORK STATE, EACH OPERATOR
 SHALL IMPLEMENT THE FOLLOWING MEASURES:
   (I) LIMIT EACH AUTHORIZED SPORTS BETTOR TO ONE ACTIVE AND CONTINUOUSLY
 USED ACCOUNT, AND PREVENT ANYONE THEY KNOW, OR SHOULD HAVE KNOWN TO BE A
 PROHIBITED  SPORTS  BETTOR FROM MAINTAINING ACCOUNTS OR PARTICIPATING IN
 ANY SPORTS WAGERING OFFERED BY SUCH OPERATOR;

 S. 7509--B                         126
 
   (II) ADOPT APPROPRIATE SAFEGUARDS TO ENSURE, TO A REASONABLE DEGREE OF
 CERTAINTY, THAT AUTHORIZED SPORTS BETTORS ARE PHYSICALLY LOCATED  WITHIN
 THE STATE WHEN ENGAGING IN MOBILE SPORTS BETTING;
   (III) PROHIBIT MINORS FROM PARTICIPATING IN ANY SPORTS WAGERING, WHICH
 INCLUDES:
   (1)  IF  AN OPERATOR BECOMES OR IS MADE AWARE THAT A MINOR HAS CREATED
 AN ACCOUNT, OR ACCESSED THE ACCOUNT  OF  ANOTHER,  SUCH  OPERATOR  SHALL
 PROMPTLY,  WITHIN  NO  MORE  THAN  TWO BUSINESS DAYS, REFUND ANY DEPOSIT
 RECEIVED FROM THE MINOR, WHETHER OR NOT THE  MINOR  HAS  ENGAGED  IN  OR
 ATTEMPTED  TO  ENGAGE  IN  SPORTS  WAGERING; PROVIDED, HOWEVER, THAT ANY
 REFUND MAY BE OFFSET BY ANY PRIZES ALREADY AWARDED;
   (2) EACH OPERATOR SHALL PROVIDE PARENTAL CONTROL PROCEDURES  TO  ALLOW
 PARENTS  OR GUARDIANS TO EXCLUDE MINORS FROM ACCESS TO ANY SPORTS WAGER-
 ING OR PLATFORM. SUCH PROCEDURES SHALL INCLUDE  A  TOLL-FREE  NUMBER  TO
 CALL FOR HELP IN ESTABLISHING SUCH PARENTAL CONTROLS; AND
   (3)  EACH  OPERATOR  SHALL  TAKE  APPROPRIATE STEPS TO CONFIRM THAT AN
 INDIVIDUAL OPENING AN ACCOUNT IS NOT A MINOR;
   (IV) WHEN REFERENCING THE CHANCES OR LIKELIHOOD OF WINNING  IN  ADVER-
 TISEMENTS  OR UPON PLACEMENT OF A SPORTS WAGER, MAKE CLEAR AND CONSPICU-
 OUS STATEMENTS THAT ARE NOT  INACCURATE  OR  MISLEADING  CONCERNING  THE
 CHANCES OF WINNING AND THE NUMBER OF WINNERS;
   (V) ENABLE AUTHORIZED SPORTS BETTORS TO EXCLUDE THEMSELVES FROM SPORTS
 WAGERING AND TAKE REASONABLE STEPS TO PREVENT SUCH BETTORS FROM ENGAGING
 IN SPORTS WAGERING FROM WHICH THEY HAVE EXCLUDED THEMSELVES;
   (VI)  PERMIT  ANY  AUTHORIZED  SPORTS  BETTOR  TO PERMANENTLY CLOSE AN
 ACCOUNT REGISTERED TO SUCH BETTOR, ON ANY AND ALL PLATFORMS SUPPORTED BY
 SUCH OPERATOR, AT ANY TIME AND FOR ANY REASON;
   (VII) OFFER INTRODUCTORY PROCEDURES  FOR  AUTHORIZED  SPORTS  BETTORS,
 THAT  SHALL  BE  PROMINENTLY DISPLAYED ON THE MAIN PAGE OF SUCH OPERATOR
 PLATFORM, THAT EXPLAIN SPORTS WAGERING;
   (VIII) IMPLEMENT MEASURES TO PROTECT THE PRIVACY AND  ONLINE  SECURITY
 OF AUTHORIZED SPORTS BETTORS AND THEIR ACCOUNTS;
   (IX)  OFFER ALL AUTHORIZED SPORTS BETTORS ACCESS TO HIS OR HER ACCOUNT
 HISTORY AND ACCOUNT DETAILS;
   (X) ENSURE AUTHORIZED SPORTS BETTORS' FUNDS ARE PROTECTED UPON DEPOSIT
 AND SEGREGATED FROM THE OPERATING FUNDS OF SUCH OPERATOR  AND  OTHERWISE
 PROTECTED  FROM  CORPORATE  INSOLVENCY,  FINANCIAL  RISK, OR CRIMINAL OR
 CIVIL ACTIONS AGAINST SUCH OPERATOR;
   (XI) LIST ON EACH WEBSITE, IN A PROMINENT PLACE, INFORMATION  CONCERN-
 ING  ASSISTANCE FOR COMPULSIVE PLAY IN NEW YORK STATE, INCLUDING A TOLL-
 FREE NUMBER DIRECTING CALLERS TO REPUTABLE RESOURCES CONTAINING  FURTHER
 INFORMATION, WHICH SHALL BE FREE OF CHARGE; AND
   (XII)  ENSURE NO SPORTS WAGERING SHALL BE BASED ON A PROHIBITED SPORTS
 EVENT.
   (B) OPERATORS SHALL NOT DIRECTLY OR INDIRECTLY  OPERATE,  PROMOTE,  OR
 ADVERTISE ANY PLATFORM OR SPORTS WAGERING TO PERSONS LOCATED IN NEW YORK
 STATE UNLESS REGISTERED PURSUANT TO THIS ARTICLE.
   (C) OPERATORS SHALL NOT OFFER ANY SPORTS WAGERING BASED ON ANY PROHIB-
 ITED SPORTS EVENT.
   (D) OPERATORS SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
 SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
   (E)  ADVERTISEMENTS  FOR  CONTESTS  AND  PRIZES OFFERED BY AN OPERATOR
 SHALL NOT TARGET PROHIBITED SPORTS  BETTORS,  MINORS,  OR  SELF-EXCLUDED
 PERSONS.
   (F) OPERATORS SHALL PROHIBIT THE USE OF THIRD-PARTY SCRIPTS OR SCRIPT-
 ING  PROGRAMS  FOR  ANY CONTEST AND ENSURE THAT MEASURES ARE IN PLACE TO

 S. 7509--B                         127
 
 DETER, DETECT AND, TO THE EXTENT REASONABLY POSSIBLE, PREVENT  CHEATING,
 INCLUDING  COLLUSION,  AND THE USE OF CHEATING DEVICES, INCLUDING USE OF
 SOFTWARE PROGRAMS THAT SUBMIT SPORTS WAGERS UNLESS OTHERWISE APPROVED BY
 THE COMMISSION.
   (G)  OPERATORS SHALL DEVELOP AND PROMINENTLY DISPLAY PROCEDURES ON THE
 MAIN PAGE OF SUCH OPERATOR'S PLATFORM FOR THE FILING OF A  COMPLAINT  BY
 AN  AUTHORIZED  SPORTS BETTOR AGAINST SUCH OPERATOR. AN INITIAL RESPONSE
 SHALL BE GIVEN BY SUCH OPERATOR TO  SUCH  BETTOR  FILING  THE  COMPLAINT
 WITHIN  FORTY-EIGHT  HOURS.  A  COMPLETE RESPONSE SHALL BE GIVEN BY SUCH
 OPERATOR TO SUCH BETTOR FILING THE COMPLAINT WITHIN TEN  BUSINESS  DAYS.
 AN AUTHORIZED SPORTS BETTOR MAY FILE A COMPLAINT ALLEGING A VIOLATION OF
 THE PROVISIONS OF THIS ARTICLE WITH THE COMMISSION.
   (H)  OPERATORS  SHALL  MAINTAIN  RECORDS  OF ALL ACCOUNTS BELONGING TO
 AUTHORIZED SPORTS BETTORS AND RETAIN SUCH RECORDS OF ALL TRANSACTIONS IN
 SUCH ACCOUNTS FOR THE PRECEDING FIVE YEARS.
   5. (A) SUBJECT TO REGULATIONS PROMULGATED BY THE  COMMISSION,  CASINOS
 MAY  ENTER  INTO  AGREEMENTS  WITH  AFFILIATES  TO  ALLOW FOR AUTHORIZED
 BETTORS TO SIGN UP TO CREATE AND FUND ACCOUNTS ON  THEIR  MOBILE  SPORTS
 WAGERING PLATFORM OR PLATFORMS.
   (B)  AUTHORIZED SPORTS BETTORS MUST SIGN UP TO CREATE THEIR ACCOUNT ON
 A MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO OR AN  AFFILIATE
 OF A CASINO.
   (C)  AUTHORIZED SPORTS BETTORS MAY DEPOSIT FUNDS IN THEIR ACCOUNT ON A
 MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO OR AN AFFILIATE OF
 A CASINO, ELECTRONICALLY RECOGNIZED PAYMENT METHODS, OR ANY OTHER  MEANS
 APPROVED BY THE COMMISSION.
   (D)  SUBJECT  TO  APPROVAL  OF  THE COMMISSION, AND IN ACCORDANCE WITH
 REGULATIONS PROMULGATED BY THE COMMISSION, CASINOS MAY ENTER INTO AGREE-
 MENTS WITH AFFILIATES  TO  LOCATE  SELF-SERVICE  MOBILE  SPORTS  BETTING
 KIOSKS,  WHICH  ARE  OWNED,  OPERATED  AND MAINTAINED BY THE CASINO, AND
 CONNECTED VIA THE INTERNET TO THE  CASINO,  UPON  THE  PREMISES  OF  THE
 AFFILIATE.
   §  3. Section 104 of the racing, pari-mutuel wagering and breeding law
 is amended by adding a new subdivision 24 to read as follows:
   24. TO REGULATE SPORTS WAGERING IN NEW YORK STATE.
   § 4. Subdivision 15 of section 1401 of the racing, pari-mutuel  wager-
 ing  and  breeding  law, as added by chapter 237 of the laws of 2016, is
 amended to read as follows:
   15. "Prohibited sports event" shall  mean  any  [collegiate  sport  or
 athletic  event,  any]  high school sport or athletic event or any horse
 racing event.
   § 5. Severability clause. If any provision of this act or  application
 thereof  shall  for  any  reason  be  adjudged by any court of competent
 jurisdiction to be invalid, such judgment shall not affect,  impair,  or
 invalidate the remainder of the act, but shall be confined in its opera-
 tion  to  the  provision thereof directly involved in the controversy in
 which the judgment shall have been rendered.
   § 6. This act shall take effect on the  same  date  and  in  the  same
 manner  as section 1367 of the racing, pari-mutuel wagering and breeding
 law pursuant to subdivision (c) of section 52 of chapter 174 of the laws
 of 2013, takes effect.
 
                                 PART YYY
 
   Section 1.  The opening paragraph of subdivision 7 of section  221  of
 the racing, pari-mutuel wagering and breeding law, as amended by section

 S. 7509--B                         128
 
 2  of  part  SS of chapter 59 of the laws of 2017, is amended to read as
 follows:
   In  order  to  pay the costs of the insurance required by this section
 and by the workers' compensation law and to carry out its  other  powers
 and  duties  and  to  pay for any of its liabilities under section four-
 teen-a of the workers' compensation law,  the  New  York  Jockey  Injury
 Compensation  Fund, Inc. shall ascertain the total funding necessary and
 establish the sums that are to  be  paid  by  all  owners  and  trainers
 licensed  or required to be licensed under section two hundred twenty of
 this article, to obtain the total funding amount required  annually.  In
 order to provide that any sum required to be paid by an owner or trainer
 is  equitable,  the fund shall establish payment schedules which reflect
 such  factors  as  are  appropriate,  including  where  applicable,  the
 geographic  location  of  the  racing  corporation at which the owner or
 trainer participates, the duration of such participation, the amount  of
 any purse earnings, the number of horses involved, or such other factors
 as the fund shall determine to be fair, equitable and in the best inter-
 ests  of  racing.  In no event shall the amount deducted from an owner's
 share of purses exceed two per centum; provided, however, for two  thou-
 sand  [seventeen] EIGHTEEN the New York Jockey Injury Compensation Fund,
 Inc. may use up to two million  dollars  from  the  account  established
 pursuant  to subdivision nine of section two hundred eight of this arti-
 cle to pay the annual costs required by this section and the funds  from
 such  account  shall  not  count  against  the  two per centum of purses
 deducted from an owner's share of purses. The amount  deducted  from  an
 owner's  share  of  purses  shall  not exceed one per centum after April
 first, two thousand twenty. In the  cases  of  multiple  ownerships  and
 limited  racing  appearances,  the  fund  shall equitably adjust the sum
 required.
   § 2. Paragraph (a) of subdivision 9 of  section  208  of  the  racing,
 pari-mutuel  wagering  and breeding law, as amended by section 2 of part
 PP of chapter 60 of the laws of 2016, is amended to read as follows:
   (a) The franchised corporation shall maintain a separate  account  for
 all  funds  held  on  deposit in trust by the corporation for individual
 horsemen's accounts. Purse funds shall be paid  by  the  corporation  as
 required to meet its purse payment obligations. Funds held in horsemen's
 accounts  shall only be released or applied as requested and directed by
 the individual horseman. For two thousand  [sixteen]  EIGHTEEN  the  New
 York  Jockey  Injury  Compensation  Fund, Inc. may use up to two million
 dollars from the account established pursuant to this subdivision to pay
 the annual costs required by section  two  hundred  twenty-one  of  this
 article.
   §  3.  Paragraph  (c)  of  subdivision 9 of section 208 of the racing,
 pari-mutuel wagering and breeding law is relettered  paragraph  (e)  and
 two new paragraphs (c) and (d) are added to read as follows:
   (C) THE FRANCHISED CORPORATION SHALL ESTABLISH AND MAINTAIN A SEPARATE
 ACCOUNT  FOR  FUNDS  TO  BE  HELD  ON DEPOSIT IN TRUST BY THE FRANCHISED
 CORPORATION FOR  THE  HORSEMEN'S  ORGANIZATION  RECOGNIZED  PURSUANT  TO
 SECTION  TWO HUNDRED TWENTY-EIGHT OF THIS ARTICLE. STARTING IN TWO THOU-
 SAND EIGHTEEN AND ANNUALLY THEREAFTER, FUNDS  FROM  THE  ACCOUNT  ESTAB-
 LISHED  PURSUANT  TO THIS SUBDIVISION SHALL BE DEPOSITED IN THE SEPARATE
 ACCOUNT ESTABLISHED UNDER THIS PARAGRAPH IN AN AMOUNT TO BE AGREED  UPON
 BY THE FRANCHISED CORPORATION AND THE HORSEMEN'S ORGANIZATION RECOGNIZED
 PURSUANT  TO  SECTION  TWO  HUNDRED TWENTY-EIGHT OF THIS ARTICLE.  FUNDS
 HELD IN THIS ACCOUNT SHALL  BE  USED  BY  THE  APPROPRIATELY  RECOGNIZED
 HORSEMEN'S  ORGANIZATION SOLELY AS COLLATERAL TO SECURE WORKERS' COMPEN-

 S. 7509--B                         129
 
 SATION INSURANCE COVERAGE, INCLUDING LOSS SENSITIVE PROGRAMS,  INCLUDING
 THROUGH THE NEW YORK JOCKEY INJURY COMPENSATION FUND, INC.
   (D)  IN  THE  EVENT THE HORSEMEN'S ORGANIZATION RECOGNIZED PURSUANT TO
 SECTION TWO HUNDRED TWENTY-EIGHT OF THIS  ARTICLE  DETERMINES  THAT  THE
 FUNDS ARE NO LONGER NEEDED AS COLLATERAL TO SECURE WORKERS' COMPENSATION
 INSURANCE  COVERAGE,  THEN, UPON AGREEMENT BY THE FRANCHISED CORPORATION
 AND THE APPROPRIATELY RECOGNIZED HORSEMEN'S ORGANIZATION, FUNDS  IN  THE
 SEPARATE  ACCOUNT  ESTABLISHED  UNDER  PARAGRAPH (C) OF THIS SUBDIVISION
 SHALL BE RETURNED TO THE ACCOUNT ESTABLISHED PURSUANT TO  THIS  SUBDIVI-
 SION.
   § 4. This act shall take effect immediately.
 
                                 PART ZZZ
 
   Section  1.  Paragraph 3 of subdivision (t) of section 1115 of the tax
 law is renumbered paragraph 4 and a new paragraph 3 is added to read  as
 follows:
   (3)  RECEIPTS  FROM  EVERY  SALE, EXCEPT FOR RESALE, OF THE SERVICE OF
 INFLATING OF TIRES AND OTHER INFLATABLE TANGIBLE PERSONAL  PROPERTY  AND
 CONSIDERATION  GIVEN  OR  CONTRACTED TO BE GIVEN FOR SUCH SERVICE, WHERE
 THE PURCHASER OR USER OF THE SERVICE INFLATES THE TIRES  OR  OTHER  SUCH
 TANGIBLE  PERSONAL  PROPERTY AT THE FACILITY WHERE THE AIR STAND OR TIRE
 INFLATION EQUIPMENT IS LOCATED, BY MEANS  EXCLUSIVELY  OF  COIN-OPERATED
 EQUIPMENT AND NEITHER THE VENDOR OPERATING THE FACILITY NOR ANY EMPLOYEE
 OF  THE  VENDOR  ASSISTS  THE  PURCHASER IN INFLATING THE TIRES OR OTHER
 PROPERTY, SHALL BE EXEMPT FROM TAX UNDER THIS ARTICLE, TO THE EXTENT  OF
 THE  AMOUNT  OF  MONEY  OR  VALUE, IN MONEY, OF TOKENS DEPOSITED IN SUCH
 COIN-OPERATED EQUIPMENT BY THE PURCHASER OF THE SERVICE.
   § 2. This act shall take effect April 1, 2019.

                                 PART AAAA
 
   Section 1. Subdivision 1 of section 483 of the real property tax  law,
 as  amended  by  chapter  544 of the laws of 2008, is amended to read as
 follows:
   1. Structures and  buildings  essential  to  the  operation  of  lands
 actively  devoted to agricultural or horticultural use and actually used
 and occupied to carry out such operation which are constructed or recon-
 structed subsequent to January first, nineteen  hundred  sixty-nine  and
 prior  to  January  first,  two thousand [nineteen] TWENTY-NINE shall be
 exempt from taxation to the extent of any increase in value  thereof  by
 reason of such construction or reconstruction for a period of ten years.
   § 2. This act shall take effect immediately.
 
                                 PART BBBB

   Section  1.  The article heading of article 14-A of the education law,
 as added by chapter 546 of the laws of  1997,  is  amended  to  read  as
 follows:
 
                              NEW YORK STATE
            [COLLEGE] EDUCATION CHOICE TUITION SAVINGS PROGRAM
 
   §  2. Section 695 of the education law, as added by chapter 546 of the
 laws of 1997, is amended to read as follows:

 S. 7509--B                         130
 
   § 695. Program established. There is hereby established the  [college]
 EDUCATION choice tuition savings program and such program shall be known
 and  may  be  cited  as  the  "New York state [college] EDUCATION choice
 tuition savings program".
   §  3.  Subdivision 5 of section 695-b of the education law, as amended
 by chapter 535 of the laws of 2000, is amended to read as follows:
   5. "Eligible educational institution" shall mean  any  institution  of
 higher  education  defined  as  an  eligible  educational institution in
 section 529(e)(5) of the Internal Revenue Code of 1986, as amended,  AND
 ANY  NONPUBLIC ELEMENTARY OR SECONDARY SCHOOL FOR WHICH TUITION EXPENSES
 ARE CHARGED OR ANY PUBLIC ELEMENTARY OR SECONDARY SCHOOL.
   § 4. Subdivision 10 of section 695-e of the education law, as  amended
 by chapter 593 of the laws of 2003, is amended to read as follows:
   10.  The  comptroller shall promulgate rules or regulations to prevent
 contributions on behalf of a designated  beneficiary  in  excess  of  an
 amount  that  would cause the aggregate account balance for all accounts
 for a designated beneficiary to exceed a  maximum  account  balance,  as
 established  from time to time by the comptroller and the corporation on
 the basis of NONPUBLIC ELEMENTARY AND SECONDARY  TUITION  COSTS,  PUBLIC
 ELEMENTARY  OR  SECONDARY SCHOOL COSTS, OR THE higher education costs in
 the state, with adequate safeguards to prevent more  contributions  than
 necessary  to  provide  for  the qualified higher education costs of the
 beneficiary, as required to maintain the program as a "qualified tuition
 program" under section 529 of the Internal  Revenue  Code  of  1986,  as
 amended.
   §  5. Paragraphs 32 and 33 of subsection (c) of section 612 of the tax
 law, paragraph 32 as amended by chapter 81 of the laws  of  2008,  para-
 graph  33  as  added  by chapter 546 of the laws of 1997, are amended to
 read as follows:
   (32) Contributions made during the taxable year by an account owner to
 one or more family tuition accounts established under the New York state
 [college] EDUCATION choice tuition savings program  provided  for  under
 article fourteen-A of the education law, to the extent not deductible or
 eligible  for credit for federal income tax purposes, provided, however,
 the exclusion provided for in this paragraph shall not exceed five thou-
 sand dollars for an individual or head of  household,  and  for  married
 couples  who  file  joint  tax  returns,  shall  not exceed ten thousand
 dollars; provided, further, that such exclusion shall be available  only
 to the account owner and not to any other person.
   (33) Distributions from a family tuition account established under the
 New  York  state  [college]  EDUCATION  choice  tuition  savings program
 provided for under article fourteen-A  of  the  education  law,  to  the
 extent includible in gross income for federal income tax purposes.
   §  6.  This  act  shall  take  effect  immediately  and shall apply to
 contributions and distributions made on and after January 1, 2018.
 
                                 PART CCCC
 
   Section 1. Section 452 of the tax law, as amended by chapter 32 of the
 laws of 2016, is amended to read as follows:
   § 452. Imposition of tax. [1.] On and after  October  first,  nineteen
 hundred  ninety-nine, a tax is hereby imposed and shall be paid upon the
 gross receipts of every  person  holding  any  professional  or  amateur
 boxing,  sparring,  COMBATIVE  SPORT or wrestling match or exhibition in
 this state. Such tax shall be imposed on such gross receipts,  exclusive
 of any federal taxes, as follows:

 S. 7509--B                         131
 
   (a)  three percent of gross receipts from ticket sales, except that in
 no event shall the tax imposed by this  [paragraph]  SUBDIVISION  exceed
 fifty thousand dollars for any match or exhibition;
   (b)  three  percent of THE SUM OF (I) gross receipts from broadcasting
 rights, AND (II) GROSS RECEIPTS FROM DIGITAL STREAMING OVER  THE  INTER-
 NET,  except  that in no event shall the tax imposed by this [paragraph]
 SUBDIVISION exceed fifty thousand dollars for any match or exhibition.
   [2. On and after the effective date of  this  subdivision,  a  tax  is
 hereby imposed and shall be paid upon the gross receipts of every person
 holding  any  authorized  combative  sport in this state, other than any
 professional or amateur boxing,  sparring  or  wrestling  exhibition  or
 match, exclusive of any federal taxes as follows:
   (a)  eight  and  one-half percent of gross receipts from ticket sales;
 and
   (b) three percent of the sum of (i) gross receipts  from  broadcasting
 rights,  and  (ii) gross receipts from digital streaming over the inter-
 net, except that in no event shall such tax  imposed  pursuant  to  this
 paragraph exceed fifty thousand dollars for any match or exhibition.]
   §  2.  This  act shall take effect immediately, and shall apply to all
 taxable years beginning on or after January 1, 2019.
 
                                 PART DDDD

   Section 1. Legislative intent. This legislation would allow a taxpayer
 who does not feel that the taxes in the  State  of  New  York  are  high
 enough to contribute an additional amount to the state general fund.
   §  2.  The tax law is amended by adding a new section 630-f to read as
 follows:
   § 630-F. GIFT FOR NEW YORK STATE GENERAL FUND. AN  INDIVIDUAL  IN  ANY
 TAXABLE  YEAR  MAY  ELECT TO CONTRIBUTE TO THE STATE'S GENERAL FUND. THE
 CONTRIBUTION SHALL BE IN ANY WHOLE DOLLAR AMOUNT AND  SHALL  NOT  REDUCE
 THE  AMOUNT OF STATE TAX OWED BY SUCH INDIVIDUAL. THE COMMISSIONER SHALL
 INCLUDE SPACE ON THE PERSONAL INCOME TAX RETURN TO ENABLE A TAXPAYER  TO
 MAKE  SUCH CONTRIBUTION.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW ALL
 REVENUES COLLECTED PURSUANT TO THIS SECTION SHALL  BE  CREDITED  TO  THE
 STATE'S  GENERAL  FUND  AND  USED  ONLY FOR THOSE PURPOSES ENUMERATED IN
 SECTION SEVENTY-TWO OF THE STATE FINANCE LAW.
   § 3. This act shall take effect immediately.
 
                                 PART EEEE
 
   Section 1. Section 43 of the tax law, as added by section 2 of part  Q
 of  chapter  59  of the laws of 2017, is renumbered section 44 and a new
 section 45 is added to read as follows:
   § 45. EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (A)  ALLOW-
 ANCE  OF  CREDIT.  (1)  A  TAXPAYER  WHICH  IS  A  DIGITAL  GAMING MEDIA
 PRODUCTION ENTITY ENGAGED IN QUALIFIED DIGITAL GAMING MEDIA  PRODUCTION,
 OR  WHO IS A SOLE PROPRIETOR OF OR A MEMBER OF A PARTNERSHIP, WHICH IS A
 DIGITAL GAMING MEDIA PRODUCTION  ENTITY  ENGAGED  IN  QUALIFIED  DIGITAL
 GAMING  MEDIA  PRODUCTION, AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR
 TWENTY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST  SUCH  TAX
 TO BE COMPUTED AS PROVIDED HEREIN.
   (2)  THE  AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO RATA SHARE
 OF THE PRODUCT, IN THE CASE OF A MEMBER  OF  A  PARTNERSHIP  OR  LIMITED
 LIABILITY  COMPANY)  OF  TWENTY-FIVE PERCENT AND THE ELIGIBLE PRODUCTION
 COSTS OF ONE OR MORE QUALIFIED DIGITAL GAMING MEDIA PRODUCTIONS.

 S. 7509--B                         132
 
   (3) ELIGIBLE DIGITAL GAMING MEDIA PRODUCTION  COSTS  FOR  A  QUALIFIED
 DIGITAL  GAMING  MEDIA  PRODUCTION  INCURRED  AND PAID IN THIS STATE BUT
 OUTSIDE SUCH METROPOLITAN  COMMUTER  TRANSPORTATION  DISTRICT  SHALL  BE
 ELIGIBLE  FOR  A CREDIT OF TEN PERCENT OF SUCH ELIGIBLE PRODUCTION COSTS
 IN  ADDITION  TO  THE CREDIT SPECIFIED IN PARAGRAPH TWO OF THIS SUBDIVI-
 SION.
   (4) ELIGIBLE PRODUCTION COSTS SHALL NOT INCLUDE THOSE  COSTS  USED  BY
 THE  TAXPAYER  OR ANOTHER TAXPAYER AS THE BASIS CALCULATION OF ANY OTHER
 TAX CREDIT ALLOWED UNDER THIS CHAPTER OR ALLOWED IN ANY OTHER STATE.
   (B) ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS  ALLOWED
 UNDER  THIS SECTION, SUBDIVISION FIFTY-FOUR OF SECTION TWO HUNDRED TEN-B
 AND SUBSECTION (JJJ) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER  IN  ANY
 TAXABLE  YEAR  SHALL  BE FIFTY MILLION DOLLARS.  THE AGGREGATE AMOUNT OF
 CREDITS FOR ANY TAXABLE YEAR MUST BE DISTRIBUTED ON A REGIONAL BASIS  AS
 FOLLOWS:  FIFTY  PERCENT  OF  THE  AGGREGATE  AMOUNT OF CREDITS SHALL BE
 AVAILABLE FOR QUALIFIED DIGITAL GAMING MEDIA PRODUCTIONS THAT  INCUR  AT
 LEAST SIXTY PERCENT OF ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED DIGITAL
 GAMING  MEDIA  PRODUCTION IN REGION ONE; TWENTY PERCENT OF THE AGGREGATE
 AMOUNT OF CREDITS SHALL BE AVAILABLE FOR QUALIFIED DIGITAL GAMING  MEDIA
 PRODUCTIONS  THAT  INCUR  AT  LEAST SIXTY PERCENT OF ELIGIBLE PRODUCTION
 COSTS FOR A QUALIFIED DIGITAL GAMING MEDIA PRODUCTION IN REGION TWO; AND
 THIRTY PERCENT OF THE AGGREGATE AMOUNT OF CREDITS SHALL BE AVAILABLE FOR
 QUALIFIED DIGITAL GAMING MEDIA PRODUCTIONS THAT  INCUR  AT  LEAST  SIXTY
 PERCENT  OF  ELIGIBLE  PRODUCTION  COSTS  FOR A QUALIFIED DIGITAL GAMING
 MEDIA PRODUCTION IN REGION THREE.  IF SUCH REGIONAL DISTRIBUTION IS  NOT
 FULLY ALLOCATED IN ANY TAXABLE YEAR, THE REMAINDER OF SUCH CREDITS SHALL
 BE  AVAILABLE  FOR  ALLOCATION TO ANY REGION IN THE SUBSEQUENT TAX YEAR.
 FOR THE PURPOSES OF THIS SECTION REGION ONE SHALL CONTAIN  THE  CITY  OF
 NEW  YORK;  REGION  TWO SHALL CONTAIN THE COUNTIES OF WESTCHESTER, ROCK-
 LAND, NASSAU AND SUFFOLK; AND REGION THREE SHALL CONTAIN ANY COUNTY  NOT
 CONTAINED IN REGIONS ONE AND TWO.  SUCH CREDIT SHALL BE ALLOCATED BY THE
 EMPIRE STATE DEVELOPMENT CORPORATION AMONG TAXPAYERS IN ORDER OF PRIORI-
 TY  BASED  UPON  THE  DATE  OF  FILING  AN APPLICATION FOR ALLOCATION OF
 DIGITAL GAMING MEDIA PRODUCTION CREDIT WITH SUCH OFFICE.  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 TAXABLE YEAR.
   (C) DEFINITIONS. AS USED IN THIS SECTION:
   (1) "QUALIFIED DIGITAL GAMING MEDIA PRODUCTION" MEANS: (I) A  WEBSITE,
 THE  DIGITAL MEDIA PRODUCTION COSTS OF WHICH ARE PAID OR INCURRED PREDO-
 MINATELY IN CONNECTION  WITH  (A)  VIDEO  SIMULATION,  ANIMATION,  TEXT,
 AUDIO,  GRAPHICS  OR SIMILAR GAMING RELATED PROPERTY EMBODIED IN DIGITAL
 FORMAT, AND (B) INTERACTIVE FEATURES OF  DIGITAL  GAMING  (E.G.,  LINKS,
 MESSAGE  BOARDS,  COMMUNITIES  OR  CONTENT  MANIPULATION); (II) VIDEO OR
 INTERACTIVE GAMES PRODUCED PRIMARILY FOR DISTRIBUTION OVER THE INTERNET,
 WIRELESS NETWORK OR SUCCESSORS THERETO; (III) ANIMATION,  SIMULATION  OR
 EMBEDDED  GRAPHICS  DIGITAL GAMING RELATED SOFTWARE INTENDED FOR COMMER-
 CIAL DISTRIBUTION REGARDLESS OF MEDIUM; AND (IV) A DIGITAL GAMING  MEDIA
 PRODUCTION  IN  WHICH  QUALIFIED  DIGITAL  GAMING MEDIA PRODUCTION COSTS
 EQUAL TO OR ARE IN EXCESS OF SEVEN  THOUSAND  FIVE  HUNDRED  DOLLARS  IF
 INCURRED  AND  PAID IN THIS STATE IN TWELVE MONTHS PRECEDING THE DATE ON
 WHICH THE CREDIT IS CLAIMED. PROVIDED, HOWEVER,  IF  SUCH  A  PRODUCTION
 COSTS  ARE INCURRED AND PAID OUTSIDE THE METROPOLITAN COMMUTER TRANSPOR-
 TATION DISTRICT IN THIS STATE, SUCH PRODUCTION COSTS SHALL BE  EQUAL  TO
 OR IN EXCESS OF THREE THOUSAND SEVEN HUNDRED FIFTY DOLLARS TO BE A QUAL-

 S. 7509--B                         133
 
 IFIED  DIGITAL GAMING MEDIA PRODUCTION FOR PURPOSES OF THIS PARAGRAPH. A
 QUALIFIED DIGITAL GAMING MEDIA PRODUCTION DOES NOT  INCLUDE  A  WEBSITE,
 VIDEO,  INTERACTIVE  GAME  OR  SOFTWARE  THAT IS USED PREDOMINATELY FOR:
 ELECTRONIC COMMERCE (RETAIL OR WHOLESALE PURPOSES OTHER THAN THE SALE OF
 VIDEO OR INTERACTIVE GAMES), GAMBLING (INCLUDING ACTIVITIES REGULATED BY
 A  NEW YORK GAMING AGENCY), EXCLUSIVE LOCAL CONSUMPTION FOR ENTITIES NOT
 ACCESSIBLE BY THE GENERAL PUBLIC INCLUDING INDUSTRIAL OR  OTHER  PRIVATE
 PURPOSES, AND POLITICAL ADVOCACY PURPOSES.
   (2)  "DIGITAL GAMING MEDIA PRODUCTION COSTS" MEANS ANY COSTS FOR PROP-
 ERTY USED AND WAGES OR SALARIES PAID TO  INDIVIDUALS  DIRECTLY  EMPLOYED
 FOR  SERVICES  PERFORMED BY THOSE INDIVIDUALS DIRECTLY AND PREDOMINATELY
 IN THE CREATION OF A DIGITAL GAMING  MEDIA  PRODUCTION  OR  PRODUCTIONS.
 DIGITAL  GAMING  MEDIA PRODUCTION COSTS INCLUDE BUT SHALL NOT BE LIMITED
 TO TO PAYMENTS FOR PROPERTY USED AND  SERVICES  PERFORMED  DIRECTLY  AND
 PREDOMINATELY  IN  THE DEVELOPMENT (INCLUDING CONCEPT CREATION), DESIGN,
 PRODUCTION (INCLUDING CONCEPT CREATION), DESIGN,  PRODUCTION  (INCLUDING
 TESTING),  EDITING  (INCLUDING  ENCODING) AND COMPOSITING (INCLUDING THE
 INTEGRATION OF DIGITAL FILES FOR INTERACTION BY END  USERS)  OF  DIGITAL
 GAMING  MEDIA.   DIGITAL GAMING MEDIA PRODUCTION COSTS SHALL NOT INCLUDE
 EXPENSES INCURRED FOR THE DISTRIBUTION, MARKETING, PROMOTION, OR  ADVER-
 TISING  CONTENT  GENERATED  BY END-USERS OR OTHER COSTS NOT DIRECTLY AND
 PREDOMINATELY RELATED TO THE CREATION,  PRODUCTION  OR  MODIFICATION  OF
 DIGITAL GAMING MEDIA. IN ADDITION, SALARIES OR OTHER INCOME DISTRIBUTION
 RELATED  TO  THE  CREATION  OF  DIGITAL  GAMING MEDIA FOR ANY PERSON WHO
 SERVES IN THE ROLE OF CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL  OFFICER,
 PRESIDENT,  TREASURER  OR  SIMILAR  POSITION  SHALL  NOT  BE INCLUDED AS
 DIGITAL GAMING MEDIA PRODUCTION COSTS. FURTHERMORE, ANY INCOME OR  OTHER
 DISTRIBUTION  TO  ANY  INDIVIDUAL  WHO  HOLDS AN OWNERSHIP INTEREST IN A
 DIGITAL GAMING MEDIA PRODUCTION ENTITY SHALL NOT BE INCLUDED AS  DIGITAL
 GAMING MEDIA PRODUCTION COSTS.
   (3)  "QUALIFIED  DIGITAL  GAMING MEDIA PRODUCTION COSTS" MEANS DIGITAL
 GAMING MEDIA PRODUCTION COSTS ONLY TO THE EXTENT SUCH COSTS ARE  ATTRIB-
 UTABLE  TO  THE  USE  OF  PROPERTY OR THE PERFORMANCE OF SERVICES BY ANY
 PERSONS WITHIN THE STATE DIRECTLY AND  PREDOMINANTLY  IN  THE  CREATION,
 PRODUCTION  OR  MODIFICATION OF DIGITAL GAMING RELATED MEDIA. SUCH TOTAL
 PRODUCTION COSTS INCURRED AND PAID IN THIS STATE SHALL BE  EQUAL  TO  OR
 EXCEED  SEVENTY-FIVE  PERCENT  OF  TOTAL  COST OF AN ELIGIBLE PRODUCTION
 INCURRED AND PAID WITHIN AND WITHOUT THIS STATE.
   (D) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE NINE-A: SECTION TWO HUNDRED TEN-B, SUBDIVISION FIFTY-FOUR.
   (2) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (I), PARA-
 GRAPH ONE, SUBPARAGRAPH (B), CLAUSE (XLIV).
   (3) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (JJJ).
   §  2.  Subdivision  52  of  section  210-B of the tax law, as added by
 section 4 of part DDD of chapter 59 of the laws of 2017,  is  renumbered
 subdivision 53 and a new subdivision 54 is added to read as follows:
   54. EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (A) ALLOWANCE
 OF  CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-FIVE OF
 THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE  COMPUTED  AS  PROVIDED  IN
 SUCH SECTION FORTY-FIVE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF  THE
 AMOUNT  OF  THE  CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE

 S. 7509--B                         134
 
 YEAR REDUCES THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE TREATED  AS  AN
 OVERPAYMENT  OF  TAX  TO  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
 PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER, PROVIDED,
 HOWEVER, NO INTEREST SHALL BE PAID THEREON.
   §  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
 follows:
 
 (XLIV) EMPIRE STATE DIGITAL          AMOUNT OF CREDIT
 GAMING MEDIA PRODUCTION              UNDER SUBDIVISION
 CREDIT UNDER SUBSECTION (JJJ)        FIFTY-FOUR OF SECTION
                                      TWO HUNDRED TEN-B
   §  4. Section 606 of the tax law is amended by adding a new subsection
 (jjj) to read as follows:
   (JJJ) EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (1)  ALLOW-
 ANCE  OF  CREDIT.  A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-
 FIVE OF THIS CHAPTER SHALL  BE  ALLOWED  A  CREDIT  TO  BE  COMPUTED  AS
 PROVIDED  IN  SUCH  SECTION  FORTY-FIVE  AGAINST THE TAX IMPOSED BY THIS
 ARTICLE.
   (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED OR REFUNDED AS PROVIDED IN SECTION SIX  HUNDRED  EIGHTY-SIX  OF  THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   §  5. The state commissioner of economic development, after consulting
 with the state commissioner of taxation and  finance,  shall  promulgate
 regulations  by  December 31, 2018 to establish procedures for the allo-
 cation of tax credits as required by subdivision (a) of  section  44  of
 the  tax  law.  Such  rules  and  regulations  shall  include provisions
 describing the application process, the due dates for such applications,
 the standards which shall be used  to  evaluate  the  applications,  the
 documentation that will be provided to taxpayers substantiate to the New
 York  state department of taxation and finance the amount of tax credits
 allocated to such taxpayers, under what conditions all or a  portion  of
 this  tax  credit  may  be  revoked, and such other provisions as deemed
 necessary and appropriate. Notwithstanding any other provisions  to  the
 contrary in the state administrative procedure act, such rules and regu-
 lations  may  be adopted on an emergency basis if necessary to meet such
 December 31, 2018 deadline.
   § 6. Subdivision 23 of section 352 of the economic development law, as
 amended by section 1 of part K of chapter 59 of the  laws  of  2017,  is
 amended to read as follows:
   23.  "Software  development"  means  the  creation  of  coded computer
 instructions [or  production  or  post-production  of  video  games,  as
 defined in subdivision one-a of section six hundred eleven of the gener-
 al  business  law,  other  than  those  embedded and used exclusively in
 advertising, promotional websites or microsites,]  and  [also]  includes
 new media as defined by the commissioner in regulations.
   §  7.  The economic development law is amended by adding a new section
 243 to read as follows:
   § 243. REPORTS ON THE DIGITAL GAMING INDUSTRY  IN  NEW  YORK.  1.  THE
 EMPIRE  STATE  DEVELOPMENT CORPORATION SHALL FILE A REPORT ON A BIANNUAL
 BASIS WITH THE DIRECTOR OF THE DIVISION OF THE  BUDGET  AND  THE  CHAIR-
 PERSONS  OF  THE  ASSEMBLY  WAYS  AND MEANS COMMITTEE AND SENATE FINANCE
 COMMITTEE. THE REPORT SHALL BE FILED NO LATER THAN  THIRTY  DAYS  BEFORE
 THE  MID-POINT  AND  THE  END OF THE STATE FISCAL YEAR. THE FIRST REPORT

 S. 7509--B                         135
 
 SHALL COVER THE CALENDAR HALF YEAR THAT BEGINS  ON  JANUARY  FIRST,  TWO
 THOUSAND  NINETEEN.  EACH  REPORT MUST CONTAIN THE FOLLOWING INFORMATION
 FOR THE COVERED CALENDAR HALF YEAR:
   (A)  THE  TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED PURSUANT TO SECTION
 FORTY-FIVE OF THE TAX LAW DURING THE HALF YEAR, BROKEN DOWN BY MONTH;
   (B) THE NUMBER OF DIGITAL GAMING PROJECTS, WHICH HAVE  BEEN  ALLOCATED
 TAX  CREDITS OF LESS THAN ONE MILLION DOLLARS PER PROJECT, AND THE TOTAL
 DOLLAR AMOUNT OF CREDITS ALLOCATED  TO  THOSE  PROJECTS  DISTRIBUTED  BY
 REGION PURSUANT TO SUBDIVISION (B) OF SECTION FORTY-FIVE OF THE TAX LAW;
   (C)  THE  NUMBER OF DIGITAL GAMING PROJECTS, WHICH HAVE BEEN ALLOCATED
 TAX CREDITS OF MORE THAN ONE  MILLION  DOLLARS,  AND  THE  TOTAL  DOLLAR
 AMOUNT  OF  CREDITS  ALLOCATED  TO  THOSE PROJECTS DISTRIBUTED BY REGION
 PURSUANT TO SUBDIVISION (B) OF SECTION FORTY-FIVE OF THE TAX LAW;
   (D) A LIST OF EACH ELIGIBLE DIGITAL GAMING  PROJECT,  WHICH  HAS  BEEN
 ALLOCATED  A TAX CREDIT ENUMERATED BY REGION PURSUANT TO SUBDIVISION (B)
 OF SECTION FORTY-FIVE OF THE TAX LAW, AND FOR EACH  OF  THOSE  PROJECTS,
 (I)  THE ESTIMATED NUMBER OF EMPLOYEES ASSOCIATED WITH THE PROJECT, (II)
 THE ESTIMATED QUALIFYING COSTS FOR THE  PROJECTS,  (III)  THE  ESTIMATED
 TOTAL  COSTS OF THE PROJECT, (IV) THE CREDIT ELIGIBLE EMPLOYEE HOURS FOR
 EACH PROJECT, AND (V) TOTAL WAGES  FOR  SUCH  CREDIT  ELIGIBLE  EMPLOYEE
 HOURS FOR EACH PROJECT; AND
   (E)  (I)  THE  NAME  OF  EACH TAXPAYER ALLOCATED A TAX CREDIT FOR EACH
 PROJECT AND THE COUNTY OF RESIDENCE OR INCORPORATION  OF  SUCH  TAXPAYER
 OR,  IF THE TAXPAYER DOES NOT RESIDE OR IS NOT INCORPORATED IN NEW YORK,
 THE STATE OF RESIDENCE OR INCORPORATION; HOWEVER, IF THE TAXPAYER CLAIMS
 A TAX CREDIT BECAUSE THE TAXPAYER IS A MEMBER  OF  A  LIMITED  LIABILITY
 COMPANY,  A  PARTNER IN A PARTNERSHIP OR A SHAREHOLDER IN A SUBCHAPTER S
 CORPORATION, THE NAME OF EACH LIMITED LIABILITY COMPANY, PARTNERSHIP  OR
 SUBCHAPTER  S  CORPORATION  EARNING  ANY  OF  THOSE  TAX CREDITS MUST BE
 INCLUDED IN THE REPORT INSTEAD OF INFORMATION ABOUT THE TAXPAYER  CLAIM-
 ING  THE  TAX  CREDIT,  (II)  THE AMOUNT OF TAX CREDIT ALLOCATED TO EACH
 TAXPAYER; PROVIDED HOWEVER, IF THE TAXPAYER CLAIMS A TAX CREDIT  BECAUSE
 THE  TAXPAYER IS A MEMBER OF A LIMITED LIABILITY COMPANY, A PARTNER IN A
 PARTNERSHIP OR A SHAREHOLDER IN A SUBCHAPTER S CORPORATION,  THE  AMOUNT
 OF  TAX  CREDIT  EARNED  BY  EACH  ENTITY MUST BE INCLUDED IN THE REPORT
 INSTEAD OF INFORMATION ABOUT THE TAXPAYER CLAIMING THE TAX  CREDIT,  AND
 (III)  INFORMATION IDENTIFYING THE PROJECT ASSOCIATED WITH EACH TAXPAYER
 FOR WHICH A TAX CREDIT WAS CLAIMED UNDER SECTION FORTY-FIVE OF  THE  TAX
 LAW.
   2.  THE  EMPIRE STATE DEVELOPMENT CORPORATION SHALL FILE A REPORT ON A
 TRIENNIAL BASIS WITH THE DIRECTOR OF THE DIVISION OF THE BUDGET AND  THE
 CHAIRPERSONS OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND SENATE FINANCE
 COMMITTEE.  THE  FIRST  REPORT SHALL BE FILED NO LATER THAN MARCH FIRST,
 TWO THOUSAND TWENTY-ONE. THE REPORT MUST BE PREPARED BY  AN  INDEPENDENT
 THIRD  PARTY  AUDITOR  AND INCLUDE: (A) INFORMATION REGARDING THE EMPIRE
 STATE DIGITAL GAMING PRODUCTION CREDIT PROGRAM INCLUDING THE  EFFICIENCY
 OF  OPERATIONS, RELIABILITY OF FINANCIAL REPORTING, COMPLIANCE WITH LAWS
 AND REGULATIONS AND DISTRIBUTION OF ASSETS AND FUNDS; (B)  AND  ECONOMIC
 IMPACT  STUDY PREPARED BY AN INDEPENDENT THIRD PARTY OF THE PROGRAM WITH
 SPECIAL EMPHASIS ON THE REGIONAL IMPACT BY REGION AND THE  TOTAL  DOLLAR
 AMOUNT  OF  CREDITS  ALLOCATED  TO  THOSE PROJECTS DISTRIBUTED BY REGION
 PURSUANT TO SUBDIVISION (B) OF SECTION FORTY-FIVE OF THE  TAX  LAW;  AND
 (C)  ANY  OTHER  INFORMATION OR STATISTICAL INFORMATION THAT THE COMMIS-
 SIONER OF ECONOMIC DEVELOPMENT DEEMS  TO  BE  USEFUL  IN  ANALYZING  THE
 EFFECTS OF THE PROGRAMS.

 S. 7509--B                         136
 
   § 8. This act shall take effect immediately and shall apply to taxable
 years  beginning on January 1, 2019 and before January 1, 2024; provided
 that this act shall expire and be deemed repealed December 31, 2023.
 
                                 PART FFFF
 
   Section  1.  This  act  shall  be known and may be cited as the "local
 government jobs and revenue protection act of 2018."
   § 2. Legislative intent. New York state,  New  York  city  and  county
 governments  throughout  the  state  are  the  recipients  of hundred of
 millions of dollars each year under the master settlement agreement. The
 total of all master settlement payments to these  governments  over  the
 years  has  so  far  exceeded  fourteen billion dollars. These funds are
 vitally important and any disruption in these  payments  would  put  the
 recipients at financial risk. The legislature hereby finds that it is in
 the  public  interest  to  enact  the "local government jobs and revenue
 protection act of 2018" in order to continue the flow of these funds  to
 the  state and local governments which depend on this revenue during the
 appeal of a judgement against master settlement  agreement  signatories,
 affiliates, successors and non-participating manufacturers.
   §  3.  The  civil  practice  law  and rules is amended by adding a new
 section 5519-a to read as follows:
   § 5519-A. STAY OF ENFORCEMENT FOR TOBACCO  PRODUCT  MASTER  SETTLEMENT
 AGREEMENT  PARTICIPATING  OR  NON-PARTICIPATING  MANUFACTURERS  OR THEIR
 SUCCESSORS OR AFFILIATES. (A) IN CIVIL LITIGATION UNDER ANY LEGAL THEORY
 INVOLVING A PARTICIPATING MANUFACTURER OR A  NON-PARTICIPATING  MANUFAC-
 TURER, AS THOSE TERMS ARE DEFINED IN THE MASTER SETTLEMENT AGREEMENT, OR
 ANY  OF  THEIR SUCCESSORS OR AFFILIATES, THE UNDERTAKING REQUIRED DURING
 THE PENDENCY OF ALL APPEALS OR DISCRETIONARY REVIEWS  BY  ANY  APPELLATE
 COURTS  IN ORDER TO STAY THE EXECUTION OF ANY JUDGMENT OR ORDER GRANTING
 LEGAL, EQUITABLE OR OTHER RELIEF DURING THE ENTIRE COURSE  OF  APPELLATE
 REVIEW,  INCLUDING  REVIEW  BY THE UNITED STATES SUPREME COURT, SHALL BE
 SET PURSUANT TO  THE  APPLICABLE  PROVISIONS  OF  LAW  OR  COURT  RULES;
 PROVIDED,  HOWEVER THAT THE TOTAL UNDERTAKING REQUIRED OF ALL APPELLANTS
 COLLECTIVELY SHALL NOT EXCEED TWO HUNDRED FIFTY MILLION DOLLARS, REGARD-
 LESS OF THE VALUE OF THE JUDGMENT APPEALED.
   (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
 UPON PROOF BY A PREPONDERANCE OF THE EVIDENCE, BY AN APPELLEE,  THAT  AN
 APPELLANT  IS DISSIPATING ASSETS OUTSIDE THE COURSE OF ORDINARY BUSINESS
 TO AVOID PAYMENT OF A JUDGMENT, A COURT MAY  REQUIRE  THE  APPELLANT  TO
 POST A BOND IN AN AMOUNT UP TO THE TOTAL AMOUNT OF THE JUDGEMENT.
   §  4.  This  act shall take effect on the thirtieth day after it shall
 have become a law, and shall apply to any cause of action pending on  or
 filed on or after such effective date.
 
                                 PART GGGG
 
   Section  1.  Section  1261  of  the tax law is amended by adding a new
 subdivision (h) to read as follows:
   (H) NOTWITHSTANDING ANY PROVISION OF STATE OR LOCAL LAW, ORDINANCE  OR
 RESOLUTION  TO  THE  CONTRARY,  FROM  THE  MONEYS  COLLECTED PURSUANT TO
 SECTION TWELVE HUNDRED TEN OF THIS ARTICLE FOR THE RENT OF  EVERY  OCCU-
 PANCY  OF  A  ROOM  OR ROOMS, AS DESCRIBED IN SUBDIVISION (E) OF SECTION
 ELEVEN HUNDRED FIVE OF THIS CHAPTER, IN A CITY HAVING  A  POPULATION  OF
 ONE  MILLION  OR  MORE,  FOUR  PERCENT OF SUCH MONEYS OR THE FIRST THREE
 HUNDRED THOUSAND DOLLARS OF SUCH MONEYS COLLECTED DURING  EACH  CALENDAR

 S. 7509--B                         137
 
 YEAR,  WHICHEVER  SHALL  BE  LESS, IN EACH BOROUGH OF SUCH CITY SHALL BE
 DEPOSITED INTO A SEPARATE ACCOUNT BY THE COMMISSIONER WITH THE MONEYS IN
 EACH SUCH ACCOUNT BEING EXPENDED SOLELY FOR  THE  PURPOSE  OF  PROMOTING
 TOURISM IN THE BOROUGH TO WHICH EACH ACCOUNT RELATES. THE MONEYS IN EACH
 ACCOUNT  SHALL  BE MADE AVAILABLE FOR TOURISM PROMOTION PURPOSES, EXCLU-
 SIVE OF ADMINISTRATIVE EXPENSES, TO AN ENTITY DESIGNATED BY THE  BOROUGH
 PRESIDENT  AND  APPROVED  BY  THE  DEPARTMENT OF ECONOMIC DEVELOPMENT AS
 RESPONSIBLE FOR TOURISM PROMOTION IN THE BOROUGH.
   § 2. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 3. This act shall take effect immediately  provided,  however,  that
 the  applicable effective date of Parts A through GGGG of this act shall
 be as specifically set forth in the last section of such Parts.