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

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

 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.

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   § 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

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 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

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   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

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   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

 S. 7509--A                         32                         A. 9509--A
 
 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-

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

 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

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 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

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 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-

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 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

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 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.

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   (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

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 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.

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   (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

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 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.

 S. 7509--A                         84                         A. 9509--A
 
   (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

 S. 7509--A                         85                         A. 9509--A
 
 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-

 S. 7509--A                         86                         A. 9509--A

 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

 S. 7509--A                         87                         A. 9509--A
 
 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

 S. 7509--A                         88                         A. 9509--A
 
 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.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 7509--C                                            A. 9509--C
 
                       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  --  committee  discharged,  bill  amended,  ordered
   reprinted  as  amended  and recommitted to said committee -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 IN ASSEMBLY -- A BUDGET BILL, submitted  by  the  Governor  pursuant  to
   article  seven  of  the  Constitution -- read once and referred to the
   Committee on Ways and Means --  committee  discharged,  bill  amended,
   ordered  reprinted  as  amended  and  recommitted to said committee --
   again reported from said committee with amendments, ordered  reprinted
   as  amended  and  recommitted to said committee -- again reported from
   said committee with  amendments,  ordered  reprinted  as  amended  and
   recommitted to said committee
 
 AN  ACT  intentionally  omitted (Part A); to amend the real property tax
   law, in relation to making the STAR income verification program manda-
   tory; to amend the tax law, in relation to the calculation  of  income
   for basic STAR purposes; to repeal subparagraphs (v) and (vi) of para-
   graph  (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);  inten-
   tionally  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 tech-
   nical 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 property tax
   law relating to assessment ceilings for local public utility mass real
   property, in relation to the effectiveness thereof (Part G); to  amend
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12674-08-8

 S. 7509--C                          2                         A. 9509--C
 
   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 provid-
   ing  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);  to  amend the tax law and the
   administrative code of the city of New York, in relation to the  defi-
   nition  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); intentionally omitted (Part  S);  intentionally
   omitted  (Part T); intentionally omitted (Part U); intentionally omit-
   ted (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);  intentionally  omitted (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
   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 to establish an advi-
   sory committee to review the  structure,  operations  and  funding  of
   equine  drug  testing  and  research  (Part EE); intentionally omitted
   (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, simul-
   casting 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); intentionally  omitted  (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;  and  to amend the administrative code of the
   city of New York, in relation to the taxation of business corporations

 S. 7509--C                          3                         A. 9509--C
 
   (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;  provides
   credits for contributions to Health Research Inc. and University foun-
   dations;  to  amend  the  tax law, in relation to credits for contrib-
   utions to accounts in the charitable gifts trust fund;  to  amend  the
   education  law and the general municipal law, in relation to authoriz-
   ing school districts, counties and New York city to establish charita-
   ble funds; and to amend the real property  tax  law,  in  relation  to
   authorizing  such localities to provide a credit against real property
   taxes for such contributions (Part LL); to amend the tax law  and  the
   state  finance  law,  in  relation  to  the  imposition of an employer
   compensation expense tax (Part MM); to amend the  racing,  pari-mutuel
   wagering  and  breeding law, in relation to the New York Jockey Injury
   Compensation Fund, Inc. (Part NN); to amend  the  racing,  pari-mutuel
   wagering  and  breeding  law,  in  relation  to the disposition of net
   revenue (Part OO); to amend the public housing law and the tax law, in
   relation to the state low-income housing credit (Part  PP);  to  amend
   the  tax law, in relation to extending certain tax rates (Part QQ); to
   amend the tax law, in relation to the  credit  for  rehabilitation  of
   historical properties (Part RR); to amend the tax law and the adminis-
   trative  code  of  the  city  of New York, in relation to the personal
   income tax on residents of the city of New York (Part  SS);  to  amend
   the tax law, in relation to capital awards to vendor tracks (Part TT);
   to  amend  the vehicle and traffic law, in relation to the disposition
   of certain proceeds collected by the commissioner of  motor  vehicles;
   to  amend  the  transportation law and the tax law, in relation to the
   disposition of certain  fees  and  assessments;  to  amend  the  state
   finance law, in relation to the special obligation reserve and payment
   account  of  the dedicated highway and bridge trust fund; to amend the
   public authorities law, in relation to the metropolitan transportation
   authority finance fund;  and  to  amend  the  state  finance  law,  in
   relation   to  the  metropolitan  transportation  authority  financial
   assistance fund; to repeal subdivision 5 of section 317 of the vehicle
   and traffic law relating to certain assessments charged and  collected
   by  the  commissioner  of  motor  vehicles; to repeal subdivision 6 of
   section 423-a of  the  vehicle  and  traffic  law  relating  to  funds
   collected by the department of motor vehicles from the sale of certain
   assets;  and  to repeal subdivision 4 of section 94 of the transporta-
   tion law relating to certain fees collected  by  the  commissioner  of
   transportation  (Part UU); to amend the state finance law, in relation
   to the funding of the capital and operating costs of the  metropolitan
   transportation authority New York city subway action plan; and provid-
   ing for the repeal of certain provisions upon expiration thereof (Part
   VV);  to  utilize  reserves in the mortgage insurance fund for various
   housing purposes; and to repeal certain provisions of part R of  chap-
   ter 56 of the laws of 2017 relating to reserves in the mortgage insur-
   ance fund for various housing purposes, relating thereto (Part WW); to
   amend  the  judiciary  law, in relation to the number of supreme court
   justices in certain judicial districts (Part XX); to amend the  social
   services  law, in relation to increasing the standards of monthly need
   for aged, blind and disabled persons living  in  the  community  (Part
   YY); to amend the social services law, in relation to a rental subsidy
   for  public  assistance  recipients living with HIV/AIDS (Part ZZ); to
   amend subpart H of part C of chapter 20 of the laws of 2015, appropri-
   ating money for certain municipal corporations and  school  districts,

 S. 7509--C                          4                         A. 9509--C
 
   in  relation  to  funding  to local government entities from the urban
   development corporation (Part AAA); to provide for the  administration
   of  certain  funds  and  accounts  related  to  the 2018-19 budget and
   authorizing certain payments and transfers; to amend the state finance
   law, in relation to the school tax relief fund and to payments, trans-
   fers and deposits; to amend chapter 174 of the laws of 1968 constitut-
   ing  the New York state urban development corporation act, in relation
   to funding project costs undertaken by non-public  schools;  to  amend
   the  New  York state urban development corporation act, in relation to
   funding project costs for certain capital projects; to  amend  chapter
   389 of the laws of 1997, relating to the financing of the correctional
   facilities  improvement  fund and the youth facility improvement fund,
   in relation to the issuance of bonds; to  amend  the  private  housing
   finance  law, in relation to housing program bonds and notes; to amend
   chapter 329 of the laws of 1991, amending the state  finance  law  and
   other  laws relating to the establishment of the dedicated highway and
   bridge trust fund, in relation to the issuance of bonds; to amend  the
   public  authorities  law,  in relation to the issuance of bonds by the
   dormitory authority; to amend chapter 61 of the laws of 2005  relating
   to  providing  for  the  administration  of certain funds and accounts
   related to the 2005-2006 budget, in relation to issuance of  bonds  by
   the  urban  development corporation; to amend the New York state urban
   development corporation act, in relation to the issuance of bonds;  to
   amend  the  public  authorities law, in relation to the state environ-
   mental infrastructure projects; to amend  the  New  York  state  urban
   development  corporation  act,  in  relation  to authorizing the urban
   development corporation to issue bonds to fund project costs  for  the
   implementation of a NY-CUNY challenge grant program and increasing the
   bonding  limit  for  certain  state and municipal facilities; to amend
   chapter 81 of the laws of 2002, relating to providing for the adminis-
   tration of certain funds and accounts related to the 2002-2003 budget,
   in relation to increasing the aggregate amount of bonds to  be  issued
   by  the New York state urban development corporation; to amend chapter
   59 of the laws of 2004, authorizing the New York state urban  develop-
   ment  corporation and the dormitory authority of the state of New York
   to issue bonds or notes, in relation to increasing certain  bonds;  to
   amend  the  public  authorities law, in relation to financing of peace
   bridge and  transportation  capital  projects;  to  amend  the  public
   authorities  law,  in  relation  to dormitories at certain educational
   institutions other than state operated institutions and  statutory  or
   contract  colleges  under  the jurisdiction of the state university of
   New York; to amend the New York state medical care facilities  finance
   agency act, in relation to bonds and mental health facilities improve-
   ment  notes;  to  amend  chapter  61  of the laws of 2005, relating to
   providing for the administration of certain funds and accounts related
   to the 2005-2006 budget, in relation to increasing the  bonding  limit
   for  certain  public protection facilities; to amend the state finance
   law and the public authorities law, in  relation  to  funding  certain
   capital projects and the issuance of bonds; to amend chapter 59 of the
   laws  of  2017 relating to providing for the administration of certain
   funds and accounts related  to  the  2017-18  budget  and  authorizing
   certain payments and transfers, in relation to the effectiveness ther-
   eof; to amend chapter 63 of the laws of 2005, relating to the composi-
   tion and responsibilities of the New York state higher education capi-
   tal  matching  grant  board,  in  relation to increasing the amount of
   authorized matching capital grants; to amend  the  public  authorities

 S. 7509--C                          5                         A. 9509--C
 
   law,  in  relation  to increasing the amount of bonds authorized to be
   issued; to  amend  the  facilities  development  corporation  act,  in
   relation  to  authorizing  the issuance of bonds in relation to grants
   made  to  voluntary  agencies; and providing for the repeal of certain
   provisions upon expiration thereof (Part BBB); to amend the  education
   law,  in relation to contracts for excellence and the apportionment of
   public moneys; to amend the education law, in relation to the  report-
   ing of teacher diversity; to amend the education law, in relation to a
   statement  of the total funding allocation; to repeal section 2590-r-1
   of such law relating thereto; and providing for the repeal of  certain
   provisions  upon  expiration  thereof;  to amend the education law, in
   relation to supplemental public excess cost aid; to amend  the  educa-
   tion  law,  in relation to defining consumer price index; and to amend
   the education law, in relation to total foundation aid; to  amend  the
   education  law,  in  relation  to building aid; to amend section 11 of
   part YYY of chapter 59 of the laws of 2017, amending the education law
   relating to contracts for excellence and the apportionment  of  public
   moneys, in relation to the recovery of funds arising from a late final
   cost  report;  to  amend  the  education  law, in relation to full day
   kindergarten aid; to amend the education law, in relation to  academic
   enhancement  aid;  to amend the education law, in relation to high tax
   aid; to amend the education law, in relation to universal  pre-kinder-
   garten  aid;  to amend the education law, in relation to the statewide
   universal full-day pre-kindergarten program; to  amend  the  education
   law, in relation to state aid adjustments; to amend the education law,
   in  relation  to  the  teachers  of  tomorrow  teacher recruitment and
   retention program; to amend the education law, in  relation  to  class
   sizes  for  special classes containing certain students with disabili-
   ties; to amend chapter 756 of the laws of 1992, relating to funding  a
   program for work force education conducted by the consortium for work-
   er  education  in New York city, in relation to reimbursements for the
   2018-2019 school year; to amend chapter  756  of  the  laws  of  1992,
   relating  to  funding  a program for work force education conducted by
   the consortium for worker education in New York city, in  relation  to
   withholding  a  portion of employment preparation education aid and in
   relation to the effectiveness thereof; to amend the education law,  in
   relation  to employment preparation education programs; to amend chap-
   ter 82 of the laws of 1995, amending the  education  law  and  certain
   other laws relating to state aid to school districts and the appropri-
   ation  of  funds  for  the  support  of government, in relation to the
   effectiveness thereof; to amend chapter 89 of the laws of 2016, relat-
   ing to supplementary funding for dedicated programs for public  school
   students  in  the  East Ramapo central school district, in relation to
   the effectiveness thereof; to amend chapter 147 of the laws  of  2001,
   amending  the  education  law  relating  to conditional appointment of
   school district, charter school or BOCES employees, in relation to the
   effectiveness thereof; to amend chapter  169  of  the  laws  of  1994,
   relating  to  certain  provisions  related  to the 1994-95 state oper-
   ations, aid to localities, capital projects and debt service  budgets,
   in  relation to the expiration of certain provisions; to amend chapter
   425 of the laws of 2002, amending the education law  relating  to  the
   provision  of  supplemental educational services, attendance at a safe
   public school and the suspension of pupils who bring a firearm  to  or
   possess a firearm at a school, in relation to the effectiveness there-
   of;  to  amend chapter 101 of the laws of 2003, amending the education
   law relating to implementation of the No  Child  Left  Behind  Act  of

 S. 7509--C                          6                         A. 9509--C
 
   2001, in relation to the effectiveness thereof; to amend chapter 56 of
   the  laws  of  2014,  amending the education law relating to providing
   that standardized test scores shall not be  included  on  a  student's
   permanent record, in relation to the expiration of certain provisions;
   to  amend the education law, in relation to requiring the commissioner
   of education to include certain  information  in  the  official  score
   report of all students; relating to school bus driver training; relat-
   ing  to  special  apportionment for salary expenses and public pension
   accruals; relating to suballocations of  appropriations;  relating  to
   the  city  school district of the city of Rochester; relating to total
   foundation aid for the purpose  of  the  development,  maintenance  or
   expansion  of certain magnet schools or magnet school programs for the
   2017-2018 school year; relating to the support of public libraries; to
   amend chapter 121 of the laws of  1996  relating  to  authorizing  the
   Roosevelt  union free school district to finance deficits by the issu-
   ance of serial bonds, in relation to certain  apportionments;  and  to
   amend the education law, in relation to transportation aid (Part CCC);
   to amend chapter 85 of the laws of 2017, relating to creating the Lake
   Ontario-St.  Lawrence  Seaway  flood  recovery and International Joint
   Commission Plan 2014 mitigation grant program, in relation to  utiliz-
   ing  reserves  in  the  mortgage  insurance  fund  for various housing
   purposes (Part DDD); relating to  an  online  application  system  for
   taxpayers  to  submit  claims  for  reimbursements of certain payments
   (Part EEE); to amend the state finance law, in relation to  establish-
   ing  the health care transformation fund (Subpart A); and to amend the
   public health law, in relation  to  authorizing  the  commissioner  of
   health  to  redeploy excess reserves of certain not-for-profit managed
   care organizations; and providing for the repeal  of  such  provisions
   upon  expiration thereof (Subpart B) (Part FFF); to amend the legisla-
   tive law, in relation to  extending  the  expiration  of  payments  to
   members  of  the  assembly serving in a special capacity; and to amend
   chapter 141 of the laws of 1994, amending the legislative law and  the
   state  finance law relating to the operation and administration of the
   legislature, in relation to  extending  such  provisions  (Part  GGG);
   establishing  a  compensation  committee  to determine the appropriate
   salaries for members of the legislature and certain other state  offi-
   cials;  and providing for the repeal of such provisions upon the expi-
   ration thereof (Part HHH); to amend chapter 59 of the  laws  of  2014,
   amending  the  tax law relating to a musical and theatrical production
   credit, in relation to extending the provisions  thereof  (Part  III);
   establishing the "Democracy Protection Act"; and to amend the election
   law,  in  relation  to  the  disclosure of the identities of political
   committees, persons, organizations, or agents making certain  expendi-
   tures  for  political communications (Part JJJ); in relation to estab-
   lishing the New York City Rikers Island Jail Complex Replacement  act;
   and providing for the repeal of such provisions upon expiration there-
   of  (Part KKK); in relation to establishing the "New York city housing
   authority modernization investment act"; and providing for the  repeal
   of  such  provisions  upon expiration thereof (Part LLL); to enact the
   New York Penn Station redevelopment act (Part MMM); to amend  the  tax
   law,  in  relation  to  transportation  services;  to amend the public
   authorities law, in relation to establishing the New York city  trans-
   portation  assistance  fund  and the supplemental revenue transparency
   program; to amend the vehicle and traffic  law,  in  relation  to  the
   installation  of  mobile  bus lane photo devices on buses operating on
   certain rapid transit routes in  the  borough  of  Manhattan  and  the

 S. 7509--C                          7                         A. 9509--C
 
   disposition of revenue from fines and penalties collected from the use
   of  such stationary bus lane photo devices; to establish the metropol-
   itan transportation sustainability advisory workgroup;  and  providing
   for  the  repeal  of  certain provisions upon expiration thereof (Part
   NNN); to amend chapter 261 of the laws of  1988,  amending  the  state
   finance  law and other laws relating to the New York state infrastruc-
   ture trust fund, in relation to the minority and women-owned  business
   enterprise program (Part OOO); establishing the "New York city housing
   authority  emergency  management act"; and to amend the public housing
   law, in relation to the development and execution of a plan to remedi-
   ate conditions affecting the health and safety of tenants of  the  New
   York  city  housing  authority (Part PPP); in relation to establishing
   the "New York city BQE Design-Build act", and providing for the repeal
   of such provisions upon expiration thereof (Part QQQ);  to  amend  the
   civil  service  law,  the  general municipal law and the state finance
   law, in relation to union dues and the  duty  of  fair  representation
   (Part  RRR);  to  amend  the education law, in relation to substantial
   equivalence for nonpublic elementary and secondary schools (Part SSS);
   intentionally omitted (Part TTT); and to amend the public health  law,
   in  relation  to the health care facility transformation program (Part
   UUU)
 
   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 UUU. 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
 
                           Intentionally Omitted
 
                                  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

 S. 7509--C                          8                         A. 9509--C
 
 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. THE LOCAL ASSESSOR SHALL UPON THE REQUEST OF A TAXPAYER
 ASSIST SUCH TAXPAYER IN THE FILING OF THE STATEMENT WITH THE DEPARTMENT.
   §  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
 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

 S. 7509--C                          9                         A. 9509--C
 
 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.
   (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."

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

   (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
 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

 S. 7509--C                         11                         A. 9509--C
 
 (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
 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

 S. 7509--C                         12                         A. 9509--C
 
 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. THE LOCAL  ASSESSOR  SHALL  UPON
 THE  REQUEST  OF  A  TAXPAYER  ASSIST SUCH TAXPAYER IN THE FILING OF THE
 STATEMENT WITH THE DEPARTMENT. 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 deter-
 mination 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  property,  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
 
                           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

 S. 7509--C                         13                         A. 9509--C
 
 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:
   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--C                         14                         A. 9509--C
 
 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--C                         15                         A. 9509--C

 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
 sections one, one-a, one-b, two and three of this act shall take  effect
 April  15,  2020;  provided  further,  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
 
                           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

 S. 7509--C                         16                         A. 9509--C
 
 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 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:

 S. 7509--C                         17                         A. 9509--C
 
   (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 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) 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 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.
 
                                  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 V-1 of
 chapter 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

 S. 7509--C                         18                         A. 9509--C
 
 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
   (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

 S. 7509--C                         19                         A. 9509--C
 
 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
 
                           Intentionally Omitted
 
                                  PART M
 
                           Intentionally Omitted
 
                                  PART N
 
                           Intentionally Omitted
 
                                  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:

 S. 7509--C                         20                         A. 9509--C
 
   (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 taxable
 years commencing on or after such date.
 
                                  PART P
 
   Section 1. Paragraph 1 of subsection (c-1) of section 606 of  the  tax
 law,  as  amended by section 1 of part L-1 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

 S. 7509--C                         21                         A. 9509--C
 
   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;
   (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--C                         22                         A. 9509--C
 
 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
 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-

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

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

 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:
   (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

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

 S. 7509--C                         26                         A. 9509--C
 
 [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 four 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

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

 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
 [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

 S. 7509--C                         28                         A. 9509--C
 
 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 seven 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

 S. 7509--C                         29                         A. 9509--C
 
 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
 
                           Intentionally Omitted
 
                                  PART U

 S. 7509--C                         30                         A. 9509--C
 
                           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-
 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

 S. 7509--C                         31                         A. 9509--C

 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
 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

 S. 7509--C                         32                         A. 9509--C
 
 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
 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

 S. 7509--C                         33                         A. 9509--C
 
 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
 
                           Intentionally Omitted
 
                                  PART Z

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

 S. 7509--C                         35                         A. 9509--C
 
 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,
 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

 S. 7509--C                         36                         A. 9509--C
 
 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.  An  advisory committee shall be established within the New York
 gaming commission 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.  Members  of  the  committee,  who  shall  be
 appointed  by the governor, shall include but not be limited to a desig-
 nee at the recommendation of each licensed  or  franchised  thoroughbred
 and  standardbred  racetrack,  a  designee at the recommendation of each
 operating regional off-track betting  corporation,  a  designee  at  the
 recommendation of each recognized horsemen's organization at licensed or
 franchised  thoroughbred  and standardbred racetracks, a designee at the
 recommendation of both Morrisville State College and the Cornell Univer-
 sity School of Veterinary Medicine, and two designees each at the recom-
 mendation of the speaker of the assembly and temporary president of  the
 senate.  The  governor  shall designate the chair from among the members
 who shall serve as such at the pleasure of the governor. State  agencies
 shall  cooperate with and assist the committee in the fulfillment of its
 duties and may  render  informational,  non-personnel  services  to  the
 committee within their respective functions as the committee may reason-
 ably request. Recommendations shall be delivered to the temporary presi-
 dent  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.
   § 3. This act shall take effect immediately.
 
                                  PART FF
 
                           Intentionally Omitted
 
                                  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

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

 S. 7509--C                         38                         A. 9509--C
 
 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-
 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

 S. 7509--C                         39                         A. 9509--C
 
 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.
   § 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,

 S. 7509--C                         40                         A. 9509--C

 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
 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

 S. 7509--C                         41                         A. 9509--C
 
   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
 
                           Intentionally Omitted
 
                                  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--C                         42                         A. 9509--C
 
   (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--C                         43                         A. 9509--C
 
 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 TO THE  EXTENT  DESCRIBED  IN
 SUBPARAGRAPH  (II) 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) 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

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 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.  THE
 INCOME  DESCRIBED  IN  SUBPARAGRAPH  (II)  OF  THIS  PARAGRAPH SHALL NOT
 CONSTITUTE INVESTMENT INCOME.
   § 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 TO THE  EXTENT  DESCRIBED  IN
 SUBPARAGRAPH  (II) 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]  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)  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 commis-
 sioner 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 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. THE INCOME DESCRIBED IN
 SUBPARAGRAPH (II) OF THIS  PARAGRAPH  SHALL  NOT  CONSTITUTE  INVESTMENT
 INCOME.
   §  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 SECTION TWO HUNDRED FIFTY OF SUCH CODE;
   §  3.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
 amended by adding two new subparagraphs 23 and 24 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 ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SECTION
 250(A)(1)(A) OF THE INTERNAL REVENUE CODE.
   § 3-a. Subparagraph 2-a of paragraph (a) and subparagraph 19 of  para-
 graph  (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, are amended and two new subparagraphs 20 and 21 are
 added to read as follows:

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   (2-a)  any  amounts  treated as dividends pursuant to section seventy-
 eight of the internal revenue code TO THE EXTENT SUCH DIVIDENDS ARE  NOT
 DEDUCTED UNDER SECTION 250 OF SUCH CODE;
   (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 ANY FEDERAL DEDUCTION ALLOWED PURSUANT  TO  SECTION
 250(A)(1)(A) 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.
   §  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

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 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
 FIVE-A  OF SECTION 11-652 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  FIVE-A OF SUCH
 SECTION IS MADE. The amount of the underpayment shall be,  with  respect
 to  any installment of estimated tax computed on the basis of EITHER the
 preceding year's tax OR THE SECOND PRECEDING YEAR'S TAX, the  excess  of
 the  amount  required  to  be  paid  over the amount, if any, paid on or
 before the last day prescribed for such payment or, with respect to  any
 other  installment  of  estimated  tax,  the excess of the amount of the
 installment which would be required to be paid if the estimated tax were
 equal to ninety 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. Subparagraphs (A) and (B) of paragraph 1 of subdivision (b) of
 section 1503 of the tax law, as amended by section 12  of  part  FF1  of
 chapter 57 of the laws of 2008, are amended to read as follows:
   (A)  income,  gains  and  losses  from subsidiary capital which do not
 include the amount of a recovery in respect of any war loss, EXCEPT THAT
 THIS MODIFICATION SHALL NOT APPLY TO THE AMOUNT  DESCRIBED  IN  SUBPARA-
 GRAPH (S) OF THIS PARAGRAPH;
   (B)  fifty  percent  of dividends other than from subsidiaries, EXCEPT
 THAT THIS MODIFICATION SHALL  NOT  APPLY  TO  THE  AMOUNT  DESCRIBED  IN
 SUBPARAGRAPH  (S)  OF  THIS PARAGRAPH, AND except that, in the case of a
 life insurance company, such modification shall apply only with  respect
 to the company's share of such dividends, which share means the percent-
 age  determined  under  paragraph one of subsection (a) of section eight
 hundred twelve of the internal revenue code;
   § 4-c. Paragraph 1 of subdivision (b) of section 1503 of the  tax  law
 is amended by adding a new subparagraph (S) to read as follows:
   (S) 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 SUCH CODE AS ADJUSTED
 BY  SUBSECTION  (B) OF SUCH SECTION BUT WITHOUT REGARD TO SUBSECTION (C)
 OF SUCH SECTION TO THE EXTENT SUCH INCOME IS RECEIVED FROM A CORPORATION
 THAT IS NOT INCLUDED IN A COMBINED RETURN WITH THE TAXPAYER.

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   § 4-d. Subparagraph (B) of paragraph 2 of subdivision (b)  of  section
 1503  of  the  tax  law, as added by chapter 649 of the laws of 1974, is
 amended to read as follows:
   (B)  any  part of any income from dividends or interest on any kind of
 stock, securities or indebtedness, except as provided  in  subparagraphs
 (A) [and], (B) AND (S) of paragraph one hereof;
   §  4-e.  Subparagraph (H) of paragraph 2 of subdivision (b) of section
 1503 of the tax law, as amended by section 13 of part FF1 of chapter  57
 of the laws of 2008, is amended to read as follows:
   (H)  in  the  discretion  of  the commissioner, any amount of interest
 directly or indirectly and any other amount directly attributable  as  a
 carrying  charge  or otherwise to subsidiary capital or to income, gains
 or losses from subsidiary capital, OR TO THE INCOME DESCRIBED IN SUBPAR-
 AGRAPH (S) OF PARAGRAPH ONE OF THIS SUBDIVISION;
   § 4-f. Paragraph 2 of subdivision (b) of section 1503 of the  tax  law
 is amended by adding new subparagraphs (W) and (X) to read as follows:
   (W) THE AMOUNT OF ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SUBSECTION
 (C) OF SECTION 965 OF THE INTERNAL REVENUE CODE.
   (X)  THE  AMOUNT  OF ANY FEDERAL DEDUCTION ALLOWED PURSUANT TO SECTION
 250(A)(1)(A) 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
 
   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 MONETARY GRANTS,
 GIFTS OR BEQUESTS RECEIVED BY 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 SUPPORT OF SERVICES  RELATING  TO
 PRIMARY,  PREVENTIVE, AND INPATIENT HEALTH CARE, DENTAL AND VISION CARE,
 HUNGER PREVENTION AND NUTRITIONAL ASSISTANCE, AND OTHER SERVICES FOR NEW
 YORK STATE RESIDENTS WITH THE OVERALL GOAL OF  ENSURING  THAT  NEW  YORK

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 STATE  RESIDENTS  HAVE  ACCESS  TO QUALITY HEALTH CARE AND OTHER RELATED
 SERVICES.
   B.  THE  "ELEMENTARY AND SECONDARY EDUCATION CHARITABLE ACCOUNT" SHALL
 CONSIST OF MONETARY GRANTS, GIFTS OR BEQUESTS RECEIVED BY THE STATE  FOR
 THE  SUPPORT  OF ELEMENTARY AND SECONDARY EDUCATION OF CHILDREN ENROLLED
 IN PUBLIC SCHOOL DISTRICTS 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 OF CHILDREN IN THE STATE.
   § 2. Credits for certain charitable contributions to Health  Research,
 Inc.    1.  Charitable  monetary  contributions to Health Research, Inc.
 (hereinafter "the corporation") that conform to the provisions  of  this
 subdivision  shall be considered qualified contributions for purposes of
 the tax credit available pursuant to subsection (iii) of section 606  of
 the tax law.
   (a)   Applications   for   contribution   authorization  certificates.
 Contributors seeking to make a qualified contribution to the corporation
 shall apply to the corporation for a contribution authorization  certif-
 icate  for  such contribution. Such application shall be in the form and
 manner prescribed by the corporation. The corporation may allow contrib-
 utors 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 corporation shall issue separate contribution
 authorization certificates for each such application.
   (b) Contribution authorization and receipt certificates. (i)  Issuance
 of  certificates.  The president of the corporation shall issue contrib-
 ution authorization certificates in two  phases.  In  phase  one,  which
 begins  on  the  first  day  of January and ends on the thirtieth day of
 September, the president of the corporation  shall  accept  applications
 for  contribution  authorization  certificates,  but shall not issue any
 such certificates.  Commencing after the first day of October, the pres-
 ident of the corporation shall issue contribution authorization  certif-
 icates  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 contribution cap in
 paragraph (e) of this subdivision, the  authorized  contribution  amount
 listed  on  each  contribution authorization certificate shall equal the
 pro-rata share of the contribution cap. If the contribution cap  is  not
 exceeded,  phase  two  commences  on  October first and ends on November
 fifteenth, during which period the president of  the  corporation  shall
 issue  contribution  authorization  certificates  on a first-come first-
 served basis based upon the date the corporation received the  contribu-
 tor's  application  for  such certificate; provided, however, that if on
 any day the corporation receives  applications  requesting  contribution
 authorization  certificates  for  contributions  that  in  the aggregate
 exceed the amount of the remaining available contribution  cap  on  such
 day,  the  authorized  contribution  amount  listed in each contribution
 authorization certificate shall be the contributor's pro-rata  share  of
 the  remaining available contribution cap. For purposes of determining a
 contributor's pro-rata share of remaining  available  contribution  cap,
 the  head  of  the  corporation  shall  multiply the amount of remaining
 available contribution cap by a fraction, the numerator of which  equals
 the  total  contribution  amount listed on the contributor's application
 and the denominator of which equals the  aggregate  amount  of  contrib-
 utions listed on the applications for contribution authorization certif-
 icates  received  on such day.   Contribution authorization certificates

 S. 7509--C                         49                         A. 9509--C
 
 for applications received during phase one shall be mailed no later than
 the fifteenth day of October.   Contribution authorization  certificates
 for applications received during phase two shall be mailed within twenty
 days  of  receipt  of  such  applications.  Provided,  however,  that no
 contribution authorization certificates for applications received during
 phase two shall be issued until all of  the  contribution  authorization
 certificates  for  applications  received  during  phase  one  have been
 issued.
   (ii) Contribution authorization certificate  contents.  Each  contrib-
 ution  authorization  certificate shall state: (A) the date such certif-
 icate was issued; (B) the date by  which  the  authorized  contributions
 listed  in  the  certificate  must be made, which shall be no later than
 November thirtieth of the year for which the contribution  authorization
 certificate  was issued; (C) the contributor's name and address; (D) the
 amount of authorized contributions; (E) the  contribution  authorization
 certificate's certificate number; and (F) any other information that the
 president of the corporation or the commissioner of taxation and finance
 deems necessary.
   (c)  Certificate  of  receipt.  If  a  contributor makes an authorized
 contribution to the corporation no later than the  date  by  which  such
 authorized  contribution  is required to be made, the corporation shall,
 within 30 days of receipt of the authorized contribution, issue  to  the
 contributor  a  written  certificate  of  receipt.  Each  certificate of
 receipt shall state: (i) the name and address of the  corporation;  (ii)
 the  contributor's  name  and  address; (iii) the date for each contrib-
 ution; (iv) the  amount  of  each  contribution  and  the  corresponding
 contribution  authorization  certificate number; (v) the total amount of
 contributions; and (vi) any other information that the  commissioner  of
 taxation and finance deems necessary.
   (d) Notification to the department of the issuance of a certificate of
 receipt.  Upon the issuance of a certificate of receipt, the corporation
 shall, within thirty days of issuing the certificate of receipt, provide
 the department of taxation and finance with notification of the issuance
 of such certificate in the form and manner prescribed by the  department
 of taxation and finance.
   (e)  Contribution  cap. The maximum permitted contributions under this
 section available annually for calendar year two thousand  eighteen  and
 all following years shall be ten million dollars.
   2.  Use  of  authorized  contributions.  The corporation shall develop
 policies and procedures to  ensure  that  all  contributions  for  which
 certificates  of  receipt  have been issued are expended only for one or
 more of the following charitable health purposes: to support and supple-
 ment laboratory facilities and programs, including, but not limited  to,
 laboratory  testing  and  scientific research; to support and supplement
 bioinformatics programs,  including,  but  not  limited  to,  developing
 public  health data analytical strategies; and to support and supplement
 other public health activities.
   § 3. Credits for certain charitable contributions to University  Foun-
 dations.    1. Charitable monetary contributions to the State University
 of New York Impact Foundation (hereinafter "the SUNY foundation") or the
 Research Foundation of the City University of New York (hereinafter "the
 CUNY foundation") that conform to the  provisions  of  this  subdivision
 shall  be  considered  qualified  contributions  for purposes of the tax
 credit available pursuant to subsection (iii) of section 606 of the  tax
 law.

 S. 7509--C                         50                         A. 9509--C
 
   (a)   Applications   for   contribution   authorization  certificates.
 Contributors seeking to make a qualified contribution to the SUNY  foun-
 dation  or  the  CUNY  foundation  shall  apply to such foundation for a
 contribution  authorization  certificate  for  such  contribution.  Such
 application  shall  be  in  the form and manner prescribed by the corpo-
 ration. Each foundation may allow contributors to make multiple applica-
 tions on the same form, provided that each contribution listed  on  such
 application  shall  be  treated  as  a separate application and that the
 foundation shall issue separate contribution authorization  certificates
 for each such application.
   (b)  Contribution authorization and receipt certificates. (i) Issuance
 of certificates. The head of each foundation  shall  issue  contribution
 authorization  certificates in two phases. In phase one, which begins on
 the first day of January and ends on the thirtieth day of September, the
 head of each  foundation  shall  accept  applications  for  contribution
 authorization  certificates,  but shall not issue any such certificates.
 Commencing after the first day of October, the head of  each  foundation
 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  contribution cap in paragraph (e) of this
 subdivision, the authorized contribution amount listed on each  contrib-
 ution  authorization  certificate  shall equal the pro-rata share of the
 contribution cap. If the contribution cap is  not  exceeded,  phase  two
 commences  on October first and ends on November fifteenth, during which
 period the head of each foundation  shall  issue  contribution  authori-
 zation  certificates  on  a first-come first-served basis based upon the
 date the foundation received  the  contributor's  application  for  such
 certificate;  provided,  however, that if on any day the SUNY foundation
 or the CUNY foundation  receives  applications  requesting  contribution
 authorization  certificates  for  contributions  that  in  the aggregate
 exceed the amount of the remaining available contribution  cap  on  such
 day,  the  authorized  contribution  amount  listed in each contribution
 authorization certificate shall be the contributor's pro-rata  share  of
 the  remaining available contribution cap. For purposes of determining a
 contributor's pro-rata share of remaining  available  contribution  cap,
 the  head  of  each  foundation  shall  multiply the amount of remaining
 available contribution cap by a fraction, the numerator of which  equals
 the  total  contribution  amount listed on the contributor's application
 and the denominator of which equals the  aggregate  amount  of  contrib-
 utions listed on the applications for contribution authorization certif-
 icates received on such day. Contribution authorization certificates for
 applications received during phase one shall be mailed no later than the
 fifteenth  day  of  October. Contribution authorization certificates for
 applications received during phase two shall  be  mailed  within  twenty
 days  of  receipt  of  such  applications.  Provided,  however,  that no
 contribution authorization certificates for applications received during
 phase two shall be issued until all of  the  contribution  authorization
 certificates  for  applications  received  during  phase  one  have been
 issued.
   (ii) Contribution authorization certificate  contents.  Each  contrib-
 ution  authorization  certificate shall state: (A) the date such certif-
 icate was issued; (B) the date by  which  the  authorized  contributions
 listed  in  the  certificate  must be made, which shall be no later than
 November thirtieth of the year for which the contribution  authorization
 certificate  was issued; (C) the contributor's name and address; (D) the

 S. 7509--C                         51                         A. 9509--C
 
 amount of authorized contributions; (E) the  contribution  authorization
 certificate's certificate number; and (F) any other information that the
 head  of  the  respective foundation or the commissioner of taxation and
 finance deems necessary.
   (c)  Certificate  of  receipt.  If  a  contributor makes an authorized
 contribution to the SUNY foundation or the CUNY foundation no later than
 the date by which such authorized contribution is required to  be  made,
 such  foundation  shall, within thirty days of receipt of the authorized
 contribution, issue to the contributor a written certificate of receipt.
 Each certificate of receipt shall state: (i) the name and address of the
 foundation; (ii) the contributor's name and address; (iii) the date  for
 each  contribution;  (iv) the amount of each contribution and the corre-
 sponding contribution authorization certificate number;  (v)  the  total
 amount of contributions; and (vi) any other information that the commis-
 sioner of taxation and finance deems necessary.
   (d) Notification to the department of the issuance of a certificate of
 receipt.  Upon  the issuance of a certificate of receipt, the respective
 foundation shall, within thirty  days  of  issuing  the  certificate  of
 receipt,  provide  the department of taxation and finance with notifica-
 tion of the  issuance  of  such  certificate  in  the  form  and  manner
 prescribed by the department of taxation and finance.
   (e)  Contribution  cap. The maximum permitted contributions under this
 section available annually for calendar year two thousand  eighteen  and
 all following years shall be ten million dollars for the SUNY foundation
 and ten million dollars for the CUNY foundation.
   2.  Use  of authorized contributions. The SUNY foundation and the CUNY
 foundation shall develop policies and  procedures  to  ensure  that  all
 contributions  for  which  certificates  of receipt have been issued are
 expended only to support programs benefiting students  enrolled  at  the
 state  university  of  New  York  and  the  city university of New York,
 respectively. Provided however, contributions may not be used for schol-
 arships or tuition assistance.
   § 4. 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  SUM  OF:
 (1)  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  ELEMENTARY  AND  SECONDARY  EDUCATION  CHARITABLE
 ACCOUNT  ESTABLISHED BY PARAGRAPH B OF SUBDIVISION FOUR OF SECTION NINE-
 TY-TWO-GG OF THE STATE FINANCE LAW; (2) THE AMOUNT OF QUALIFIED CONTRIB-
 UTIONS MADE BY THE TAXPAYER TO HEALTH RESEARCH, INC. IN ACCORDANCE  WITH
 SECTION  TWO  OF  THE  CHAPTER OF THE LAWS OF TWO THOUSAND EIGHTEEN THAT
 ADDED THIS SUBSECTION; AND (3) THE  AMOUNT  OF  QUALIFIED  CONTRIBUTIONS
 MADE  BY THE TAXPAYER TO THE STATE UNIVERSITY OF NEW YORK IMPACT FOUNDA-
 TION AND/OR THE RESEARCH FOUNDATION OF THE CITY UNIVERSITY OF  NEW  YORK
 IN ACCORDANCE WITH SECTION THREE OF THE CHAPTER OF THE LAWS OF TWO THOU-
 SAND EIGHTEEN THAT ADDED THIS SUBSECTION.
   §  5.  Section  1604  of  the education law is amended by adding a new
 subdivision 44 to read as follows:

 S. 7509--C                         52                         A. 9509--C
 
   44. TO ESTABLISH A CHARITABLE FUND, BY RESOLUTION OF THE TRUSTEES,  TO
 RECEIVE UNRESTRICTED CHARITABLE MONETARY DONATIONS MADE TO SUCH FUND FOR
 USE  BY THE DISTRICT FOR PUBLIC 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.
   §  6.  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 UNRESTRICTED CHARITABLE MONETARY DONATIONS MADE TO SUCH FUND FOR
 USE  BY THE DISTRICT FOR PUBLIC 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.
   § 7. 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 UNRESTRICTED CHARITABLE
 MONETARY DONATIONS MADE TO SUCH FUND FOR USE BY THE CITY SCHOOL DISTRICT
 FOR PUBLIC 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.
   § 8. The general municipal law is amended by adding two  new  sections
 6-t and 6-u to read as follows:
   §  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.
   2.  SUCH  FUND  MAY  RECEIVE UNRESTRICTED CHARITABLE MONETARY CONTRIB-
 UTIONS AND THE MONEYS IN SUCH FUND SHALL BE DEPOSITED AND SECURED IN THE

 S. 7509--C                         53                         A. 9509--C
 
 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.
   3. 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, SO THAT THE FUNDS MAY BE USED FOR CHARITABLE PURPOSES.
   4.  THE  GOVERNING BOARD SHALL ESTABLISH A PROCEDURE FOR CONTRIBUTIONS
 TO THE CHARITABLE GIFTS RESERVE FUND, WHICH SHALL INCLUDE THE  PROVISION
 OF A WRITTEN ACKNOWLEDGMENT OF THE GIFT TO THE CONTRIBUTOR.
   §  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  UNRESTRICTED  CHARITABLE  MONETARY  CONTRIB-
 UTIONS AND 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.
   3. 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.
   4.  THE  GOVERNING BOARD SHALL ESTABLISH A PROCEDURE FOR CONTRIBUTIONS
 TO THE CHARITABLE GIFTS RESERVE FUND, WHICH SHALL INCLUDE THE  PROVISION
 OF A WRITTEN ACKNOWLEDGMENT OF THE GIFT TO THE CONTRIBUTOR.
   §  9.  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 A DATE SPECIFIED  IN  THE  LOCAL  LAW  OR  RESOLUTION
 ADOPTED  BY  A PARTICIPATING MUNICIPAL CORPORATION PURSUANT TO PARAGRAPH
 (A) OF THIS SUBDIVISION, THE OWNER OR OWNERS OF REAL PROPERTY  SHALL  BE
 ALLOWED  A  CREDIT  AGAINST  THE  REAL PROPERTY TAXES OF A PARTICIPATING
 MUNICIPAL CORPORATION THAT HAVE BEEN IMPOSED  UPON  SUCH  PROPERTY.  THE
 AMOUNT  OF  SUCH  CREDIT SHALL EQUAL NINETY-FIVE PERCENT, OR SUCH LESSER
 ALLOWABLE PERCENTAGE CREDIT AS MAY HAVE  BEEN  ESTABLISHED  PURSUANT  TO

 S. 7509--C                         54                         A. 9509--C
 
 PARAGRAPH  (C)  OF THIS SUBDIVISION, 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 CORPORATION, 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  OR  PERCENTAGE  OF  SUCH  CREDIT TO BE ALLOWED IN ANY GIVEN
 FISCAL YEAR, IN WHICH CASE THE AMOUNT OF SUCH CREDIT  SHALL  NOT  EXCEED
 ANY  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
 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 FUND OR ITS DESIGNATED AGENT SHALL, UPON
 RECEIVING A CONTRIBUTION TO THE FUND 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

 S. 7509--C                         55                         A. 9509--C
 
 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, OR SUCH LESSER ALLOWABLE PERCENTAGE  CREDIT  AS  MAY  HAVE
 BEEN  ESTABLISHED  PURSUANT  TO PARAGRAPH (C) OF SUBDIVISION ONE OF THIS
 SECTION, OF THE AMOUNT OF THE CONTRIBUTIONS MADE DURING  THE  ASSOCIATED
 CREDIT  YEAR  AS SPECIFIED ON THE ACKNOWLEDGEMENT, AND TO REDUCE THE TAX
 LIABILITY ON THE PARCEL ACCORDINGLY, PROVIDED THAT SUCH CREDIT  MAY  NOT
 EXCEED  ANY  PERCENTAGE CREDIT OR OTHER LIMIT ESTABLISHED BY THE PARTIC-
 IPATING MUNICIPAL CORPORATION PURSUANT TO PARAGRAPH (C)  OF  SUBDIVISION
 ONE  OF  THIS SECTION, IF SUCH A LIMIT HAS BEEN ESTABLISHED, AND MAY NOT
 EXCEED THE PROPERTY TAXES DUE OR  PAID  THAT  ARE  ATTRIBUTABLE  TO  THE
 PARTICIPATING MUNICIPAL CORPORATION. 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.  THE
 PARTICIPATING  MUNICIPAL  CORPORATION  MAY  ADOPT A LOCAL LAW, OR IN THE
 CASE OF A SCHOOL DISTRICT, A RESOLUTION, PROVIDING THAT WHERE A PROPERTY
 OWNER SUBMITS A CREDIT CLAIM FORM TO THE COLLECTING OFFICER PRIOR TO THE
 COLLECTING OFFICER'S RECEIPT OF THE TAX WARRANT, OR SUCH OTHER  DATE  AS
 MAY BE SPECIFIED IN SUCH LOCAL LAW OR RESOLUTION, THE ASSOCIATED PROPER-
 TY  TAX BILL SHALL REFLECT A REDUCTION IN THE TAX LIABILITY EQUAL TO THE
 CREDIT AUTHORIZED BY THIS SECTION; PROVIDED HOWEVER THAT IF THE COLLECT-
 ING OFFICER IS NOT EMPLOYED BY THE PARTICIPATING MUNICIPAL  CORPORATION,
 SUCH  LOCAL LAW OR RESOLUTION SHALL NOT TAKE EFFECT UNLESS AND UNTIL THE
 GOVERNING BODY OF THE MUNICIPAL CORPORATION THAT EMPLOYS THE  COLLECTING
 OFFICER  HAS  ADOPTED  A  RESOLUTION AGREEING THERETO. THE DEPARTMENT OF
 FINANCIAL SERVICES, IN CONSULTATION WITH THE DEPARTMENT,  SHALL  PROMUL-
 GATE  REGULATIONS  RELATED TO THE ADJUSTMENT OF MORTGAGE ESCROW ACCOUNTS
 TO REFLECT THE CREDITS PROVIDED PURSUANT TO THIS SECTION.
   (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 PROPERTY  TAXES  IN
 THE  AMOUNT  OF  THE  CREDIT, WHICH AMOUNT SHALL BE EQUAL TO NINETY-FIVE
 PERCENT, OR SUCH LESSER ALLOWABLE PERCENTAGE CREDIT  AS  MAY  HAVE  BEEN
 ESTABLISHED  PURSUANT  TO  PARAGRAPH  (C)  OF  SUBDIVISION  ONE  OF THIS
 SECTION, OF THE TOTAL CONTRIBUTIONS MADE DURING  THE  ASSOCIATED  CREDIT
 YEAR, PROVIDED THAT SUCH REFUND SHALL NOT EXCEED THE PROPERTY TAXES THAT
 HAVE  BEEN  PAID ON THE PROPERTY OR ANY PERCENTAGE CREDIT OR OTHER LIMIT
 ESTABLISHED PURSUANT  TO  PARAGRAPH  (C)  OF  SUBDIVISION  ONE  OF  THIS
 SECTION,  IF ANY, AND MAY NOT EXCEED THE PROPERTY TAXES DUE OR PAID THAT
 ARE ATTRIBUTABLE TO THE PARTICIPATING  MUNICIPAL  CORPORATION.  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.

 S. 7509--C                         56                         A. 9509--C
 
   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
 UPON  SUCH  PROPERTY MINUS THE AMOUNT OF THE CREDIT PROVIDED PURSUANT TO
 THIS SECTION.
   § 10. This act shall take effect immediately; provided, however,  that
 the  amendments  to  section 2590-h of the education law made by section
 seven 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 seven 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 PROGRAM
 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 ANNUAL ELECTION TO BE TAXED
 UNDER THIS ARTICLE.
   (B) IN ORDER TO BE EFFECTIVE, THE ANNUAL ELECTION MUST BE MADE BY  (1)
 IF  THE  EMPLOYER  IS  NOT A CORPORATION, BY ANY MEMBER, OWNER, OR OTHER
 INDIVIDUAL WITH AUTHORITY TO BIND THE ENTITY OR  SIGN  RETURNS  REQUIRED
 PURSUANT  TO  SECTION SIX HUNDRED FIFTY-THREE OF THIS CHAPTER; OR (2) IF
 THE EMPLOYER IS A FOR-PROFIT OR NOT-FOR-PROFIT CORPORATION, BY ANY OFFI-
 CER 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 DOCUMENTS TO MAKE THE  ELECTION  AND  WHO  REPRESENTS  TO
 HAVING  SUCH  AUTHORIZATION  UNDER  PENALTY  OF  PERJURY;  OR (3) IF THE

 S. 7509--C                         57                         A. 9509--C
 
 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 ANNUAL ELECTION MUST BE MADE BY DECEMBER FIRST OF EACH CALEN-
 DAR YEAR AND WILL TAKE EFFECT FOR THE  IMMEDIATELY  SUCCEEDING  CALENDAR
 YEAR. IF AN ELECTION IS MADE AFTER DECEMBER 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. 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  SEVEN-
 TY-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 ELECTRON-
 IC FUNDS TRANSFER SYSTEM AUTHORIZED BY SECTION NINE OF THIS CHAPTER.
   § 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 (CCC) 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.
   (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

 S. 7509--C                         58                         A. 9509--C
 
 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
 (ccc) to read as follows:
   (CCC)  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
 ELECTING  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 ELECTING 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 ELECTING 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
 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:

 S. 7509--C                         59                         A. 9509--C
 
   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-
 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

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

 S. 7509--C                         61                         A. 9509--C
 
 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
 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

 S. 7509--C                         62                         A. 9509--C
 
 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
 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

 S. 7509--C                         63                         A. 9509--C
 
 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
 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:

 S. 7509--C                         64                         A. 9509--C
 
   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.
 
                                  PART NN
 
   Section 1. The opening paragraph of subdivision 7 of  section  221  of
 the racing, pari-mutuel wagering and breeding law, as amended by section
 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

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

 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 SUCH RECOGNIZED HORSEMEN'S ORGANIZATION
 SOLELY AS COLLATERAL TO SECURE WORKERS' COMPENSATION INSURANCE COVERAGE,
 INCLUDING THROUGH THE NEW YORK JOCKEY  INJURY  COMPENSATION  FUND,  INC.
 SUCH  COVERAGE SHALL INCLUDE HIGH DEDUCTIBLE PROGRAMS AND FORMS OF SELF-
 INSURANCE.
   (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  SUCH 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 PARAGRAPH (A)
 OF THIS SUBDIVISION.
   § 4. This act shall take effect immediately.
 
                                  PART OO
 
   Section 1. Subdivision 2 of section 516  of  the  racing,  pari-mutuel
 wagering  and breeding law is amended and a new subdivision 2-a is added
 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. 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;
   b. 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. A participating county containing a city electing to participate in
 the management and revenues of a corporation under  subdivision  two  of
 section  five  hundred  two  of  this  article  shall distribute revenue

 S. 7509--C                         66                         A. 9509--C
 
 received under paragraphs a and b  of  this  subdivision  to  such  city
 according to the proportion such city's population bears to the county's
 population.
   2-A. THE NET REVENUE REMAINING TO THE CORPORATION SHALL BE DISTRIBUTED
 QUARTERLY,  NOT  MORE  THAN  THIRTY DAYS AFTER THE CLOSE OF THE CALENDAR
 QUARTER, UNLESS, EACH OFF-TRACK BETTING CORPORATION'S BOARD SHALL DETER-
 MINE ONCE ANNUALLY, THAT SUCH NET REVENUE REMAINING TO  THE  CORPORATION
 SHALL  BE DISTRIBUTED TO PARTICIPATING COUNTIES AND CITIES ON AN ANNUAL,
 OR BI-ANNUAL BASIS, TO BE DISTRIBUTED NOT MORE THAN  THIRTY  DAYS  AFTER
 THE  CLOSE  OF  THE  CALENDAR  YEAR,  OR THE CLOSE OF THE BI-ANNUAL YEAR
 (JANUARY-JUNE AND JULY-DECEMBER). NO SUCH DETERMINATION  SHALL  BE  MADE
 PRIOR  TO  THE  BOARD'S  RECEIPT  OF AN ANNUAL WRITTEN APPROVAL, TO SUCH
 SPECIFIED ANNUAL, OR BI-ANNUAL PAYMENT SCHEDULE, BETWEEN EACH  OFF-TRACK
 BETTING CORPORATION AND THE GOVERNING BODIES OF EACH PARTICIPATING COUN-
 TIES AND CITIES WITHIN SUCH APPLICABLE REGION.
   § 2. This act shall take effect immediately.

                                  PART PP
 
   Section  1.  Subdivision 1 of section 22 of the public housing law, as
 added by section 1 of part CC of chapter 63 of  the  laws  of  2000,  is
 amended to read as follows:
   1.  A taxpayer subject to tax under article nine-A, twenty-two, [thir-
 ty-two] or thirty-three of the tax law which owns an interest in one  or
 more  eligible  low-income buildings, OR A TRANSFEREE OF SUCH A TAXPAYER
 AS DESCRIBED IN SUBDIVISION EIGHT OF THIS SECTION, shall  be  allowed  a
 credit  against  such  tax  for  the amount of low-income housing credit
 allocated by the commissioner to each such building. Except as  provided
 in subdivision two of this section, the credit amount so allocated shall
 be  allowed as a credit against the tax for the ten taxable years in the
 credit period.
   § 2. Section 22 of the public housing law is amended by adding  a  new
 subdivision 8 to read as follows:
   8. (A) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS ARTICLE MAY TRANS-
 FER  THE  CREDIT,  IN WHOLE OR IN PART, TO ANOTHER PERSON OR ENTITY, WHO
 SHALL BE REFERRED TO AS THE TRANSFEREE, WITHOUT REGARD TO HOW ANY FEDER-
 AL LOW-INCOME HOUSING TAX CREDIT WITH RESPECT TO THE LOW-INCOME BUILDING
 MAY BE ALLOCATED AND NOTWITHSTANDING THAT SUCH OTHER  PERSON  OR  ENTITY
 OWNS  NO  INTEREST  IN  THE ELIGIBLE LOW-INCOME BUILDING OR IN AN ENTITY
 WITH AN OWNERSHIP INTEREST IN THE ELIGIBLE LOW-INCOME BUILDING.   TRANS-
 FEREES  SHALL  BE  ENTITLED TO APPLY TRANSFERRED CREDIT TO A TAX IMPOSED
 UNDER ARTICLE  NINE-A,  TWENTY-TWO  OR  THIRTY-THREE  OF  THE  TAX  LAW,
 PROVIDED  ALL REQUIREMENTS FOR CLAIMING THE CREDIT ARE MET. A TRANSFEREE
 MAY NOT TRANSFER ANY CREDIT, OR PORTION THEREOF, ACQUIRED BY TRANSFER.
   (B) A TAXPAYER ALLOWED A CREDIT PURSUANT TO THIS  ARTICLE  MUST  ENTER
 INTO A TRANSFER CONTRACT WITH THE TRANSFEREE. THE TRANSFER CONTRACT MUST
 SPECIFY
   (I)  THE  BUILDING  IDENTIFICATION  NUMBERS  FOR  ALL BUILDINGS IN THE
 PROJECT;
   (II) THE DATE EACH BUILDING WAS PLACED INTO SERVICE;
   (III) THE FIFTEEN YEAR COMPLIANCE PERIOD FOR THE PROJECT;
   (IV) THE SCHEDULE OF YEARS  FOR  WHICH  THE  TRANSFER  CREDIT  MAY  BE
 CLAIMED AND THE AMOUNT OF CREDIT PREVIOUSLY CLAIMED;
   (V)  THE  AMOUNT  OF  CONSIDERATION  RECEIVED  BY THE TAXPAYER FOR THE
 TRANSFER CREDIT; AND
   (VI) THE AMOUNT OF CREDIT BEING TRANSFERRED.

 S. 7509--C                         67                         A. 9509--C
 
   (C) NO TRANSFER SHALL BE EFFECTIVE UNLESS THE TAXPAYER ALLOWED A CRED-
 IT PURSUANT TO THIS ARTICLE AND SEEKING TO TRANSFER THE CREDIT  FILES  A
 TRANSFER  STATEMENT  WITH THE COMMISSIONER PRIOR TO THE TRANSFER AND THE
 COMMISSIONER  APPROVES  SUCH  TRANSFER.  THE  TRANSFER  STATEMENT  SHALL
 PROVIDE  THE  NAME  AND  FEDERAL  IDENTIFICATION  NUMBERS  OF THE FILING
 TRANSFEROR AND THE TAXPAYER TO WHOM THE  FILING  TRANSFEROR  TRANSFERRED
 THE  CREDIT, AND THE AMOUNT OF CREDIT TRANSFERRED TO EACH SUCH PERSON OR
 ENTITY. A COPY OF THE TRANSFER CONTRACT SHALL BE ATTACHED TO THE  TRANS-
 FER  STATEMENT.  THE STATEMENT SHALL ALSO CONTAIN SUCH OTHER INFORMATION
 AS THE COMMISSIONER MAY REQUIRE. AFTER REVIEWING THE  TRANSFER  CONTRACT
 AND  THE  TRANSFER STATEMENT, THE COMMISSIONER SHALL APPROVE OR DENY THE
 TRANSFER AS PROVIDED IN THIS SUBDIVISION. IF THE  COMMISSIONER  APPROVES
 THE  TRANSFER,  THE  COMMISSIONER SHALL ISSUE AN APPROVAL STATEMENT THAT
 PROVIDES THE NAME OF THE TRANSFEROR AND TRANSFEREE, THE AMOUNT OF CREDIT
 BEING TRANSFERRED AND SUCH OTHER INFORMATION AS THE COMMISSIONER AND THE
 COMMISSIONER OF TAXATION AND FINANCE  DEEM  NECESSARY.  A  COPY  OF  THE
 COMMISSIONER'S  APPROVAL  STATEMENT MUST BE ATTACHED TO THE TRANSFEREE'S
 TAX RETURN. IF THE COMMISSIONER DENIES THE  TRANSFER,  THE  COMMISSIONER
 SHALL  PROVIDE THE TAXPAYER A WRITTEN DETERMINATION FOR SUCH DENIAL. THE
 COMMISSIONER, IN CONSULTATION WITH  THE  COMMISSIONER  OF  TAXATION  AND
 FINANCE, MAY ESTABLISH SUCH OTHER PROCEDURES AND STANDARDS DEEMED NECES-
 SARY FOR THE TRANSFERABILITY OF THE LOW-INCOME HOUSING CREDIT.
   (D)  THE  COMMISSIONER SHALL FORWARD COPIES OF ALL TRANSFER STATEMENTS
 AND ATTACHMENTS THERETO AND APPROVAL STATEMENTS  TO  THE  DEPARTMENT  OF
 TAXATION  AND  FINANCE WITHIN THIRTY DAYS AFTER THE TRANSFER IS APPROVED
 BY THE COMMISSIONER.
   § 3. Section 25 of the public housing law is amended by adding  a  new
 subdivision 3 to read as follows:
   3.  THE  ALLOCATION  OF  THE CREDIT ESTABLISHED BY THIS ARTICLE MAY BE
 MADE WITHOUT REGARD TO AND IN A SEPARATE MANNER FROM ANY FEDERAL LOW-IN-
 COME HOUSING CREDIT THAT MAY BE ALLOCATED WITH RESPECT  TO  AN  ELIGIBLE
 LOW-INCOME BUILDING.
   § 4. Subdivision (b) of section 18 of the tax law is amended by adding
 a new paragraph 6-a to read as follows:
   (6-A)  THE  TAXPAYER  THAT ORIGINALLY RECEIVED THE CREDIT SHALL REMAIN
 SOLELY LIABLE FOR ALL OBLIGATIONS AND LIABILITIES IMPOSED ON THE TAXPAY-
 ER WITH RESPECT TO THE CREDIT, NONE OF WHICH SHALL APPLY TO A  PARTY  TO
 WHOM THE CREDIT HAS BEEN SUBSEQUENTLY TRANSFERRED.
   §  5.  Section  23 of the public housing law, as added by section 1 of
 part CC of chapter 63 of the  laws  of  2000,  is  amended  to  read  as
 follows:
   § 23. Project monitoring. The commissioner shall establish such proce-
 dures  [as  he  deems]  DEEMED necessary for monitoring compliance of an
 eligible low-income building with the provisions of  this  article,  and
 for  notifying  the  commissioner  of  taxation  and finance of any such
 noncompliance [of which he becomes aware].
   § 6. This act shall take effect on the thirtieth day  after  it  shall
 have become a law and shall apply to taxable years beginning on or after
 January  1,  2019 for buildings that receive an allocation of low-income
 housing credit on or after the effective date of this act.
 
                                  PART QQ
 
   Section 1. Paragraph 1 of subsection (a) of section 1301  of  the  tax
 law,  as  amended  by  section  2 of part F of chapter 61 of the laws of
 2017, is amended to read as follows:

 S. 7509--C                         68                         A. 9509--C
 
   (1) a tax on the personal income of residents of  such  city,  at  the
 rates provided for under subsection (a) of section thirteen hundred four
 of this article for taxable years beginning before two thousand [twenty]
 TWENTY-ONE,  and  at  the  rates  provided  for  under subsection (b) of
 section  thirteen  hundred four of this article for taxable years begin-
 ning after two thousand twenty, provided,  however,  that  if,  for  any
 taxable year beginning after two thousand twenty, the rates set forth in
 such subsection (b) are rendered inapplicable and the rates set forth in
 such subsection (a) are rendered applicable, then the tax for such taxa-
 ble  year  shall  be at the rates provided under [subparagraph] SUBPARA-
 GRAPHS (A) of paragraphs one, two and three of such subsection (a),
   § 2. This act shall take effect immediately.
 
                                  PART RR
 
   Section 1. Subparagraph (A) of paragraph 1, paragraph 3 and  paragraph
 5  of  subsection  (oo)  of  section  606 of the tax law, paragraph 3 as
 amended by chapter 239 of the laws of  2009,  and  subparagraph  (A)  of
 paragraph 1 and paragraph 5 as amended by section 1 of part F of chapter
 59 of the laws of 2013, are amended to read as follows:
   (A)  For  taxable years beginning on or after January first, two thou-
 sand ten and before January first, two thousand [twenty] 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 feder-
 al] internal revenue code SECTION 47(C)(3), DETERMINED WITHOUT REGARD TO
 RATABLY  ALLOCATING  THE  CREDIT  OVER A FIVE YEAR PERIOD AS REQUIRED BY
 SUBSECTION (A) OF SUCH SECTION 47, with respect to a certified  historic
 structure  located within the state. Provided, however, the credit shall
 not exceed five million dollars. For taxable years beginning on or after
 January first, two thousand [twenty] 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 struc-
 ture under [subsection (a)(2) of section 47  of  the  federal]  internal
 revenue  code  SECTION  47(C)(3),  DETERMINED  WITHOUT REGARD TO RATABLY
 ALLOCATING THE CREDIT OVER A FIVE YEAR PERIOD AS REQUIRED BY  SUBSECTION
 (A)  OF  SUCH SECTION 47, with respect to a certified historic structure
 located within the state; provided, however, the credit shall not exceed
 one hundred thousand dollars.
   (3) If the [credit allowed the] taxpayer IS ALLOWED A CREDIT  pursuant
 to  section  47 of the internal revenue code with respect to a qualified
 rehabilitation THAT IS ALSO THE SUBJECT OF THE CREDIT  ALLOWED  BY  THIS
 SUBSECTION  AND  THAT  CREDIT  PURSUANT TO SUCH SECTION 47 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.
   (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

 S. 7509--C                         69                         A. 9509--C

 CENSUS  TRACT  THAT  QUALIFIED FOR ELIGIBILITY UNDER THIS PROGRAM BEFORE
 INFORMATION ABOUT THE CHANGE WAS RELEASED WILL  REMAIN  ELIGIBLE  FOR  A
 CREDIT UNDER THIS SUBSECTION FOR AN ADDITIONAL TWO CALENDAR YEARS.
   § 2. Paragraphs (a), (c) and (e) of 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, are amended to read as follows:
   (a) Application of credit. (i) 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 hereinaft-
 er 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
 SECTION 47(C)(3), DETERMINED WITHOUT REGARD TO  RATABLY  ALLOCATING  THE
 CREDIT  OVER  A  FIVE  YEAR PERIOD AS REQUIRED BY SUBSECTION (A) OF SUCH
 SECTION 47, with respect to a certified historic structure located with-
 in the state. Provided,  however,  the  credit  shall  not  exceed  five
 million dollars.
   (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 DETERMINED WITHOUT REGARD TO RATABLY ALLOCATING
 THE CREDIT OVER A FIVE YEAR PERIOD AS  REQUIRED  BY  SUBSECTION  (A)  OF
 SECTION  47  OF  THE  INTERNAL REVENUE CODE, with respect to a certified
 historic structure under subsection (c)(3) of section 47 of the internal
 revenue code with respect to  a  certified  historic  structure  located
 within  the  state.   Provided, however, the credit shall not exceed one
 hundred thousand dollars.
   (c) If the [credit allowed the] taxpayer IS ALLOWED A CREDIT  pursuant
 to  section  47 of the internal revenue code with respect to a qualified
 rehabilitation THAT IS ALSO THE SUBJECT OF THE CREDIT  ALLOWED  BY  THIS
 SUBDIVISION  AND  THAT  CREDIT PURSUANT TO SUCH SECTION 47 is recaptured
 pursuant to subsection (a) of section 50 of the internal revenue code, a
 portion of the credit allowed under this [subsection]  SUBDIVISION  must
 be added back in the same taxable year and in the same proportion as the
 federal credit.
   (e)  To  be  eligible for the credit allowable under this subdivision,
 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 PROGRAM BEFORE
 INFORMATION ABOUT THE CHANGE WAS RELEASED WILL  REMAIN  ELIGIBLE  FOR  A
 CREDIT UNDER THIS SUBDIVISION FOR AN ADDITIONAL TWO CALENDAR YEARS.
   §  3.  Subparagraph (A) of paragraph 1, paragraph 3 and paragraph 5 of
 subdivision (y) of section 1511 of the tax law, paragraph 3 as added  by
 chapter  472 of the laws of 2010 and subparagraph (A) of paragraph 1 and
 paragraph 5 as amended by section 4 of part F of chapter 59 of the  laws
 of 2013, are amended to read as follows:
   (A)  For  taxable years beginning on or after January first, two thou-
 sand ten and before January first, two thousand [twenty] 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

 S. 7509--C                         70                         A. 9509--C
 
 of the amount of credit allowed the taxpayer with respect to a certified
 historic  structure under [subsection (a)(2) of section 47 of the feder-
 al] internal revenue code SECTION 47(C)(3), DETERMINED WITHOUT REGARD TO
 RATABLY  ALLOCATING  THE  CREDIT  OVER A FIVE YEAR PERIOD AS REQUIRED BY
 SUBSECTION (A) OF SUCH SECTION 47, with respect to a certified  historic
 structure  located within the state. Provided, however, the credit shall
 not exceed five million dollars. For taxable years beginning on or after
 January first, two thousand [twenty] 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 struc-
 ture under [subsection (a)(2) of section 47  of  the  federal]  internal
 revenue  code  SECTION  47(C)(3),  DETERMINED  WITHOUT REGARD TO RATABLY
 ALLOCATING THE CREDIT OVER A FIVE YEAR PERIOD AS REQUIRED BY  SUBSECTION
 (A)  OF  SUCH  SECTION 47 with respect to a certified historic structure
 located within the state. Provided, however, the credit shall not exceed
 one hundred thousand dollars.
   (3) If the [credit allowed the] taxpayer IS ALLOWED A CREDIT  pursuant
 to  section  47 of the internal revenue code with respect to a qualified
 rehabilitation THAT IS ALSO THE SUBJECT OF THE CREDIT  ALLOWED  BY  THIS
 SUBDIVISION  AND  THAT  CREDIT PURSUANT TO SUCH SECTION 47 is recaptured
 pursuant to subsection (a) of section 50 of the internal revenue code, a
 portion of the credit allowed under this [subsection] SUBDIVISION in the
 taxable year the credit was claimed must be added back in the same taxa-
 ble year and in the same proportion as the federal recapture.
   (5) To be eligible for the credit allowable  under  this  subdivision,
 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  PROGRAM  BEFORE
 INFORMATION  ABOUT  THE  CHANGE  WAS RELEASED WILL REMAIN ELIGIBLE FOR A
 CREDIT UNDER THIS SUBDIVISION FOR AN ADDITIONAL TWO CALENDAR YEARS.
   § 4. 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.

 S. 7509--C                         71                         A. 9509--C
 
   (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-
 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.
   § 5. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January first, two thousand eighteen.
 
                                  PART SS
 
   Section 1. Section 1303 of the tax law, as amended by  chapter  28  of
 the laws of 1987, is amended to read as follows:
   § 1303. City  taxable  income. The city taxable income of a city resi-
 dent individual shall mean and be the same as his OR HER New York  taxa-
 ble  income  as  defined  in section six hundred eleven of this chapter,
 EXCEPT THAT IT SHALL INCLUDE (I) THE AMOUNT CONTRIBUTED 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, TO THE EXTENT THE
 AMOUNT IS CLAIMED AS AN  ITEMIZED  DEDUCTION  PURSUANT  TO  SECTION  SIX
 HUNDRED  FIFTEEN  OF  THIS CHAPTER: THE HEALTH CHARITABLE ACCOUNT ESTAB-
 LISHED BY PARAGRAPH (A) OF SUBDIVISION FOUR OF SECTION NINETY-TWO-GG  OF
 THE  STATE FINANCE LAW, OR THE ELEMENTARY AND SECONDARY EDUCATION CHARI-
 TABLE ACCOUNT ESTABLISHED BY PARAGRAPH B OF SUBDIVISION FOUR OF  SECTION
 NINETY-TWO-GG  OF  THE  STATE FINANCE LAW.  The city taxable income of a
 city resident estate or trust shall mean and be the same as its New York
 taxable income as defined in section six hundred eighteen of this  chap-
 ter.
   §  2. Subdivision (b) of section 11-1712 of the administrative code of
 the city of New York is amended by adding a new paragraph 38 to read  as
 follows:
   (38)  THE  AMOUNT  CONTRIBUTED 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, TO THE EXTENT THE AMOUNT IS CLAIMED AS AN
 ITEMIZED DEDUCTION PURSUANT TO SECTION SIX HUNDRED FIFTEEN  OF  THE  TAX
 LAW:  THE HEALTH CHARITABLE ACCOUNT ESTABLISHED BY PARAGRAPH A OF SUBDI-
 VISION FOUR OF SECTION NINETY-TWO-GG OF THE STATE FINANCE  LAW,  OR  THE
 ELEMENTARY  AND  SECONDARY  EDUCATION  CHARITABLE ACCOUNT ESTABLISHED BY
 PARAGRAPH B OF SUBDIVISION FOUR OF SECTION NINETY-TWO-GG  OF  THE  STATE
 FINANCE LAW.
   § 3. This act shall take effect immediately.
 
                                  PART TT

 S. 7509--C                         72                         A. 9509--C
 
   Section  1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi-
 sion b of section 1612 of the tax law, as amended by chapter 236 of  the
 laws of 2017, is amended to read as follows:
   (H)  notwithstanding  clauses  (A), (B), (C), (D), (E), (F) and (G) of
 this subparagraph, the track operator of a vendor track and in the  case
 of  Aqueduct,  the  video  lottery  terminal facility operator, shall be
 eligible for a vendor's capital award of up to four percent of the total
 revenue wagered at the vendor track after payout for prizes pursuant  to
 this  chapter,  which  shall  be  used  exclusively  for capital project
 investments to improve the facilities of the vendor track which  promote
 or  encourage  increased attendance at the video lottery gaming facility
 including, but not limited to hotels, other lodging  facilities,  enter-
 tainment   facilities,  retail  facilities,  dining  facilities,  events
 arenas, parking garages and other  improvements  that  enhance  facility
 amenities;  provided  that such capital investments shall be approved by
 the division, in consultation with the gaming commission, and that  such
 vendor  track  demonstrates that such capital expenditures will increase
 patronage at such vendor track's facilities and increase the  amount  of
 revenue generated to support state education programs. The annual amount
 of such vendor's capital awards that a vendor track shall be eligible to
 receive  shall  be limited to two million five hundred thousand dollars,
 except for Aqueduct racetrack, for which there shall be no annual limit,
 provided, however, that any such capital award for  the  Aqueduct  video
 lottery  terminal  facility  operator  shall be one percent of the total
 revenue wagered at the video lottery terminal 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 chapter
 or April first, two thousand nineteen and shall then be four percent  of
 the  total  revenue wagered at the video lottery terminal facility after
 payout for prizes pursuant to this chapter, provided, further, that such
 capital award shall only be provided pursuant to an agreement  with  the
 operator  to  construct an expansion of the facility, hotel, and conven-
 tion and exhibition space requiring  a  minimum  capital  investment  of
 three  hundred  million  dollars. Except for tracks having less than one
 thousand nine hundred video gaming machines, and  except  for  a  vendor
 track  located west of State Route 14 from Sodus Point to the Pennsylva-
 nia border within New York, and except for Aqueduct racetrack each track
 operator shall be required to co-invest an amount of capital expenditure
 equal to its cumulative vendor's capital award. For all tracks[,  except
 for  Aqueduct  racetrack,] the amount of any vendor's capital award that
 is not used during any one year period may be carried over  into  subse-
 quent years ending before April first, two thousand [eighteen] NINETEEN.
 Any amount attributable to a capital expenditure approved prior to April
 first,  two  thousand  [eighteen]  NINETEEN  and  completed before April
 first, two thousand [twenty] TWENTY-ONE;  or  approved  prior  to  April
 first, two thousand [twenty-two] TWENTY-THREE and completed before April
 first, two thousand [twenty-four] TWENTY-FIVE for a vendor track located
 west of State Route 14 from Sodus Point to the Pennsylvania border with-
 in New York, shall be eligible to receive the vendor's capital award. In
 the  event  that  a vendor track's capital expenditures, approved by the
 gaming commission prior to April first, two thousand [eighteen] NINETEEN
 and completed prior to April first, two  thousand  [twenty]  TWENTY-ONE,
 exceed  the vendor track's cumulative capital award during the five year
 period ending April first, two thousand [eighteen] NINETEEN, the  vendor
 shall continue to receive the capital award after April first, two thou-

 S. 7509--C                         73                         A. 9509--C
 
 sand  [eighteen]  NINETEEN  until such approved capital expenditures are
 paid to the vendor track subject to any required  co-investment.  In  no
 event  shall  any  vendor  track  that receives a vendor fee pursuant to
 clause  (F) or (G) of this subparagraph be eligible for a vendor's capi-
 tal award under this section. Any operator of a vendor track  which  has
 received  a  vendor's  capital  award,  choosing  to  divest the capital
 improvement toward which the award was applied, prior to the full depre-
 ciation of the capital improvement in accordance with generally accepted
 accounting principles, shall reimburse the state in amounts equal to the
 total of any such awards. Any capital award not approved for  a  capital
 expenditure at a video lottery gaming facility by April first, two thou-
 sand  [eighteen] NINETEEN shall be deposited into the state lottery fund
 for education aid; and
   § 2. This act shall take effect immediately.
 
                                  PART UU
 
   Section 1. Section 399-1 of the vehicle and traffic law, as amended by
 section 1 of part D of chapter 58 of the laws of  2016,  is  amended  to
 read as follows:
   §  399-l.  Application.  Applicants  for  participation  in  the pilot
 program established pursuant to this article shall be among those  acci-
 dent  prevention  course sponsoring agencies that have a course approved
 by the commissioner pursuant to article twelve-B of this title prior  to
 the  effective date of this article and which deliver such course to the
 public.  Provided,  however,  the  commissioner  may,  in  his  or   her
 discretion,  approve  applications  after  such  date.  In  order  to be
 approved for participation in such pilot program, the course must comply
 with the provisions of law, rules and  regulations  applicable  thereto.
 The  commissioner  may,  in  his or her discretion, impose a fee for the
 submission of each application  to  participate  in  the  pilot  program
 established  pursuant  to  this article. Such fee shall not exceed seven
 thousand five hundred dollars. [The proceeds  from  such  fee  shall  be
 deposited  by  the  comptroller  into the special obligation reserve and
 payment account of the dedicated highway and bridge  trust  fund  estab-
 lished  pursuant  to  section eighty-nine-b of the state finance law for
 the purposes established in this section.]
   § 2. Paragraph a of subdivision 5 of section 410 of  the  vehicle  and
 traffic law, as amended by section 4 of part D of chapter 58 of the laws
 of 2016, is amended to read as follows:
   a.  The  annual fee for registration or reregistration of a motorcycle
 shall be eleven dollars and fifty cents.  Beginning April  first,  nine-
 teen hundred ninety-eight the annual fee for registration or reregistra-
 tion  of  a  motorcycle  shall be seventeen dollars and fifty cents[, of
 which two dollars and fifty cents shall be deposited by the  comptroller
 into the special obligation reserve and payment account of the dedicated
 highway  and  bridge  trust fund established pursuant to section eighty-
 nine-b of the state finance law for the  purposes  established  in  this
 section].
   §  3.  Paragraph  (c-1) of subdivision 2 of section 503 of the vehicle
 and traffic law, as amended by section 5 of part D of chapter 58 of  the
 laws of 2016, is amended to read as follows:
   (c-1) In addition to the fees established in paragraphs (b) and (c) of
 this  subdivision,  a  fee of fifty cents for each six months or portion
 thereof of the period of validity shall be paid upon the issuance of any
 permit, license or renewal of a license which is valid for the operation

 S. 7509--C                         74                         A. 9509--C
 
 of a motorcycle, except a limited use motorcycle. [Fees collected pursu-
 ant to this paragraph shall be deposited by  the  comptroller  into  the
 special  obligation reserve and payment account of the dedicated highway
 and  bridge  trust fund established pursuant to section eighty-nine-b of
 the state finance law for the purposes established in this section.]
   § 4. Subdivision 5 of section 317 of the vehicle and  traffic  law  is
 REPEALED.
   §  5.  Paragraph  (b) of subdivision 1-a of section 318 of the vehicle
 and traffic law, as amended by section 9 of part D of chapter 58 of  the
 laws of 2016, is amended to read as follows:
   (b)  Notwithstanding  the provisions of paragraph (a) of this subdivi-
 sion, an order of suspension issued pursuant to paragraph (a) or (e)  of
 this subdivision may be terminated if the registrant pays to the commis-
 sioner a civil penalty in the amount of eight dollars for each day up to
 thirty  days  for  which  financial security was not in effect, plus ten
 dollars for each day from the thirty-first to the sixtieth day for which
 financial security was not in effect, plus twelve dollars for  each  day
 from  the  sixty-first to the ninetieth day for which financial security
 was not in effect. [Of each eight dollar penalty, six  dollars  will  be
 deposited  in the general fund and two dollars in the special obligation
 reserve and payment account of the dedicated highway  and  bridge  trust
 fund  established pursuant to section eighty-nine-b of the state finance
 law for the purposes established in this section.] Of  each  ten  dollar
 penalty  collected, [six] EIGHT dollars will be deposited in the general
 fund[, two dollars will be deposited in the special  obligation  reserve
 and  payment  account  of  the  dedicated  highway and bridge trust fund
 established pursuant to section eighty-nine-b of the state  finance  law
 for  the purposes established in this section,] and two dollars shall be
 deposited in the dedicated highway and  bridge  trust  fund  established
 pursuant to section eighty-nine-b of the state finance law and the dedi-
 cated  mass  transportation fund established pursuant to section eighty-
 nine-c of the  state  finance  law  and  distributed  according  to  the
 provisions  of subdivision (d) of section three hundred one-j of the tax
 law. Of each twelve dollar penalty collected, [six] EIGHT  dollars  will
 be  deposited into the general fund[, two dollars will be deposited into
 the special obligation reserve and  payment  account  of  the  dedicated
 highway  and  bridge  trust fund established pursuant to section eighty-
 nine-b of the state finance law for the  purposes  established  in  this
 section,]  and  four dollars shall be deposited in the dedicated highway
 and bridge trust fund established pursuant to section  eighty-nine-b  of
 the  state finance law and the dedicated mass transportation fund estab-
 lished pursuant to section eighty-nine-c of the state  finance  law  and
 distributed  according  to  the provisions of subdivision (d) of section
 three hundred one-j of the tax law. The foregoing provision shall  apply
 only  once during any thirty-six month period and only if the registrant
 surrendered the certificate of registration and  number  plates  to  the
 commissioner  not  more than ninety days from the date of termination of
 financial security or submits to the commissioner new proof of financial
 security which took effect not more than ninety  days  from  the  termi-
 nation of financial security.
   §  6. Subdivision 6 of section 423-a of the vehicle and traffic law is
 REPEALED.
   § 7. Paragraph (a) of subdivision 3  of  section  89-b  of  the  state
 finance  law,  as  amended  by section 11 of part D of chapter 58 of the
 laws of 2016, is amended to read as follows:

 S. 7509--C                         75                         A. 9509--C
 
   (a) The special obligation reserve and payment account  shall  consist
 (i)  of all moneys required to be deposited in the dedicated highway and
 bridge trust fund pursuant to the provisions  of  sections  two  hundred
 five,  two  hundred  eighty-nine-e,  three  hundred  one-j, five hundred
 fifteen  and  eleven  hundred  sixty-seven  of the tax law, section four
 hundred one of the vehicle and traffic law, and  section  thirty-one  of
 chapter fifty-six of the laws of nineteen hundred ninety-three, (ii) all
 fees, fines or penalties collected by the commissioner of transportation
 and  the  commissioner  of motor vehicles pursuant to section fifty-two,
 section three hundred twenty-six, section eighty-eight  of  the  highway
 law,  subdivision fifteen of section three hundred eighty-five[, section
 four hundred twenty-three-a, section four  hundred  ten,  section  three
 hundred seventeen, section three hundred eighteen, article twelve-C, and
 paragraph (c-1) of subdivision two of section five hundred three] of the
 vehicle  and  traffic law, section two of the chapter of the laws of two
 thousand three that amended this paragraph, subdivision (d)  of  section
 three  hundred  four-a, paragraph one of subdivision (a) and subdivision
 (d) of section three hundred five, subdivision  six-a  of  section  four
 hundred  fifteen and subdivision (g) of section twenty-one hundred twen-
 ty-five of the vehicle and traffic law, section fifteen of this chapter,
 excepting moneys deposited with the  state  on  account  of  betterments
 performed  pursuant  to  subdivision twenty-seven or subdivision thirty-
 five of section ten of the highway law, and [sections  ninety-four,  one
 hundred  thirty-five,  and] SECTION one hundred forty-five of the trans-
 portation law, (iii) any moneys collected by the department of transpor-
 tation for services provided pursuant  to  agreements  entered  into  in
 accordance  with section ninety-nine-r of the general municipal law, and
 (iv) any other moneys collected  therefor  or  credited  or  transferred
 thereto from any other fund, account or source.
   §  8.  Paragraph  (a)  of  subdivision  3 of section 89-b of the state
 finance law, as amended by section 12 of part D of  chapter  58  of  the
 laws of 2016, is amended to read as follows:
   (a)  The  special obligation reserve and payment account shall consist
 (i) of all moneys required to be deposited in the dedicated highway  and
 bridge  trust  fund  pursuant  to the provisions of sections two hundred
 eighty-nine-e, three hundred one-j,  five  hundred  fifteen  and  eleven
 hundred  sixty-seven  of  the  tax  law, section four hundred one of the
 vehicle and traffic law, and section thirty-one of chapter fifty-six  of
 the  laws  of  nineteen  hundred  ninety-three,  (ii) all fees, fines or
 penalties collected  by  the  commissioner  of  transportation  and  the
 commissioner  of  motor  vehicles pursuant to section fifty-two, section
 three hundred twenty-six,  section  eighty-eight  of  the  highway  law,
 subdivision  fifteen of section three hundred eighty-five[, section four
 hundred twenty-three-a, section four hundred ten, section three  hundred
 seventeen,  section  three hundred eighteen, article twelve-C, and para-
 graph (c-1) of subdivision two of section five  hundred  three]  of  the
 vehicle  and  traffic  law,  section  fifteen of this chapter, excepting
 moneys deposited with the state  on  account  of  betterments  performed
 pursuant  to  subdivision  twenty-seven  or  subdivision  thirty-five of
 section ten of the highway law, and [sections ninety-four,  one  hundred
 thirty-five,  and]  SECTION one hundred forty-five of the transportation
 law, (iii) any moneys collected by the department of transportation  for
 services provided pursuant to agreements entered into in accordance with
 section  ninety-nine-r  of the general municipal law, and (iv) any other
 moneys collected therefor or credited or transferred  thereto  from  any
 other fund, account or source.

 S. 7509--C                         76                         A. 9509--C
 
   §  9.  Subdivision  4  of  section  94  of  the  transportation law is
 REPEALED.
   §  10.  Subdivision  4  of  section  135 of the transportation law, as
 amended by section 4 of part C of chapter 57 of the  laws  of  2014,  is
 amended to read as follows:
   4. [All revenues collected pursuant to this section shall be deposited
 by  the  comptroller  into  the  special  obligation reserve and payment
 account of the dedicated  highway  and  bridge  trust  fund  established
 pursuant  to  section  eighty-nine-b  of  the  state finance law for the
 purposes established in this section.] Fees will be  based  on  revenues
 from the preceding calendar year and shall be assessed on or before July
 first  and  are  payable  by  September first of each year. On or before
 January first of each year following assessment of fees pursuant to this
 section, the commissioner shall report to the railroad companies  annual
 costs associated with this assessment.
   §  11.  Subsection  (b)  of  section 805 of the tax law, as amended by
 section 1 of part C of chapter 25 of the laws of  2009,  is  amended  to
 read as follows:
   (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 subsection (a) of this
 section, the commissioner shall certify to the comptroller the amount of
 all revenues so received during the prior  month  as  a  result  of  the
 taxes,  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  WITHOUT  APPROPRIATION  into
 the  [mobility  tax  trust  account  of  the metropolitan transportation
 authority financial assistance  fund  established  pursuant  to  section
 ninety-two-ff  of the state finance law, for payment, pursuant to appro-
 priations by the legislature to the] metropolitan transportation author-
 ity finance fund established pursuant to section twelve  hundred  seven-
 ty-h  of  the  public  authorities  law,  PROVIDED,  HOWEVER,  THAT  THE
 COMPTROLLER SHALL ENSURE THAT ANY PAYMENTS TO THE METROPOLITAN TRANSPOR-
 TATION AUTHORITY FINANCE FUND WHICH ARE DUE TO  BE  PAID  BY  THE  FINAL
 BUSINESS  DAY IN THE MONTH OF DECEMBER PURSUANT TO THIS SUBSECTION SHALL
 BE RECEIVED BY THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCE FUND ON
 THE SAME BUSINESS DAY IN WHICH IT IS PAID.
   § 12. Section 4 of the state finance law is amended by  adding  a  new
 subdivision 12 to read as follows:
   12.  NOTWITHSTANDING SUBDIVISION ONE OF THIS SECTION AND ANY OTHER LAW
 TO THE CONTRARY, THE REVENUE (INCLUDING TAXES, INTEREST  AND  PENALTIES)
 FROM  THE  METROPOLITAN  COMMUTER  TRANSPORTATION  MOBILITY  TAX IMPOSED
 PURSUANT TO ARTICLE TWENTY-THREE OF  THE  TAX  LAW  WHICH  ARE  PAID  IN
 ACCORDANCE  WITH SUBSECTION (B) OF SECTION EIGHT HUNDRED FIVE OF THE TAX
 LAW INTO THE METROPOLITAN TRANSPORTATION AUTHORITY FINANCE  FUND  ESTAB-
 LISHED BY SECTION TWELVE HUNDRED SEVENTY-H OF THE PUBLIC AUTHORITIES LAW
 SHALL BE MADE PURSUANT TO STATUTE BUT WITHOUT AN APPROPRIATION.
   §  13.  Subdivision 2 of section 1270-h of the public authorities law,
 as added by section 16 of part H of chapter 25 of the laws of  2009,  is
 amended to read as follows:
   2.  The comptroller shall deposit INTO THE METROPOLITAN TRANSPORTATION
 AUTHORITY FINANCE FUND (A) monthly, pursuant to appropriation, [into the
 metropolitan transportation authority finance fund] the moneys deposited
 in the mobility tax trust account  of  the  metropolitan  transportation
 authority financial assistance fund pursuant to [article twenty-three of
 the  tax  law, and] any [other] provision of law directing or permitting

 S. 7509--C                         77                         A. 9509--C
 
 the deposit of moneys in such fund, AND (B) WITHOUT  APPROPRIATION,  THE
 REVENUE  INCLUDING TAXES, INTEREST AND PENALTIES COLLECTED IN ACCORDANCE
 WITH ARTICLE TWENTY-THREE OF THE TAX LAW.
   §  14. Subdivisions 3 and 5 of section 92-ff of the state finance law,
 as added by section 1 of part G of chapter 25 of the laws of  2009,  are
 amended to read as follows:
   3.  Such fund shall consist of all moneys collected [therefore] THERE-
 FOR or credited or transferred thereto from any other fund,  account  or
 source,  including,  without  limitation, the [revenues derived from the
 metropolitan commuter transportation mobility  tax  imposed  by  article
 twenty-three  of the tax law;] revenues derived from the special supple-
 mental tax on passenger car rentals imposed by  section  eleven  hundred
 sixty-six-a  of  the  tax  law; revenues derived from the transportation
 surcharge imposed by article twenty-nine-A of the tax law;  the  supple-
 mental  registration  fees imposed by article seventeen-C of the vehicle
 and traffic law; and the supplemental metropolitan commuter  transporta-
 tion  district license fees imposed by section five hundred three of the
 vehicle and traffic law. Any interest received  by  the  comptroller  on
 moneys on deposit in the metropolitan transportation authority financial
 assistance fund shall be retained in and become a part of such fund.
   5.  (a)  The  "mobility  tax trust account" shall consist of [revenues
 required to be deposited therein pursuant to the provisions  of  article
 twenty-three  of  the  tax  law and all other] moneys credited or trans-
 ferred thereto from any [other] fund or source pursuant to law.
   (b) Moneys in the "mobility tax  trust  account"  shall,  pursuant  to
 appropriation  by  the legislature, be transferred on a monthly basis to
 the metropolitan transportation authority finance  fund  established  by
 section  twelve  hundred  seventy-h  of  the  public authorities law and
 utilized in accordance with said section. It is the intent of the legis-
 lature to enact two appropriations from the mobility tax  trust  account
 to the metropolitan transportation authority finance fund established by
 section twelve hundred seventy-h of the public authorities law. One such
 appropriation  shall  be  equal  to the amounts expected to be available
 [for such purpose pursuant to article twenty-three of the  tax  law  or]
 from  any  [other] monies described in paragraph (a) of this subdivision
 during the two thousand [nine]  EIGHTEEN--two  thousand  [ten]  NINETEEN
 fiscal  year  and shall be effective in that fiscal year. The other such
 appropriation shall be equal to the amounts  expected  to  be  available
 [for  such  purpose  pursuant to article twenty-three of the tax law or]
 from any [other] monies described in paragraph (a) of  this  subdivision
 during  the  two  thousand  [ten] NINETEEN--two thousand [eleven] TWENTY
 fiscal year and shall, notwithstanding the provisions of  section  forty
 of  this chapter, take effect on the first day of the two thousand [ten]
 NINETEEN--two thousand [eleven] TWENTY fiscal year and lapse on the last
 day of that fiscal year. It is the intent of the governor to submit  and
 the  legislature  to  enact  for each fiscal year after the two thousand
 [nine] EIGHTEEN--two thousand [ten] NINETEEN fiscal year  in  an  annual
 budget  bill:  (i) an appropriation for the amount expected to be avail-
 able in the mobility tax trust account during such fiscal year  for  the
 metropolitan  transportation authority [pursuant to article twenty-three
 of the tax law or] FROM any [other] monies described in paragraph (a) of
 this subdivision; and (ii) an appropriation for the amount projected  by
 the  director  of  the  budget to be deposited in the mobility tax trust
 account [pursuant to article twenty-three of the tax law  or]  from  any
 [other]  monies  described  in paragraph (a) of this subdivision for the
 next succeeding fiscal year. Such appropriation for payment of  revenues

 S. 7509--C                         78                         A. 9509--C
 
 projected  to be deposited in the succeeding fiscal year shall, notwith-
 standing the provisions of section forty of this chapter, take effect on
 the first day of such succeeding fiscal year and lapse on the  last  day
 of  such  fiscal year. If for any fiscal year commencing on or after the
 first day of April, two thousand ten the  governor  fails  to  submit  a
 budget  bill containing the foregoing, or the legislature fails to enact
 a bill  with  such  provisions,  then  the  metropolitan  transportation
 authority  shall notify the comptroller, the director of the budget, the
 chairperson of the senate finance committee and the chairperson  of  the
 assembly  ways  and  means committee of amounts required to be disbursed
 from the appropriation made during the preceding fiscal year for payment
 in such fiscal year. In no event shall the comptroller make any payments
 from such appropriation prior to May first  of  such  fiscal  year,  and
 unless  and  until  the  director  of the budget, the chairperson of the
 senate finance committee and the chairperson of the  assembly  ways  and
 means  committee  have  been  notified  of the required payments and the
 timing of such payments to be made from the mobility tax  trust  account
 to the metropolitan transportation authority finance fund established by
 section  twelve hundred seventy-h of the public authorities law at least
 forty-eight hours prior  to  any  such  payments.  Until  such  time  as
 payments  pursuant  to  such appropriation are made in full, revenues in
 the mobility tax trust account shall not be  paid  over  to  any  person
 other than the metropolitan transportation authority.
   § 15. This act shall take effect April 1, 2018; provided however, that
 the  amendments  to section 399-l of the vehicle and traffic law made by
 section one of this act shall not affect the repeal of such section  and
 shall  be deemed repealed therewith; and provided further, however, that
 the amendments to paragraph (a) of subdivision 3 of section 89-b of  the
 state  finance law made by section seven of this act shall be subject to
 the expiration and reversion of such paragraph pursuant to section 13 of
 part U1 of chapter 62 of the laws of 2003, as amended,  when  upon  such
 date the provisions of section eight of this act shall take effect.
 
                                  PART VV
 
   Section 1. This act commits the state of New York (state) and the city
 of  New York (city) to fund, $836,000,000 in capital and operating costs
 related to projects contained in the Metropolitan Transportation Author-
 ity (MTA)  New  York  city  subway  action  plan.  The  state  share  of
 $418,000,000  shall consist of appropriations first enacted in the 2018-
 2019 state budget, additional funds and tax  remissions  sufficient  for
 the  MTA  to  pay the capital and operating costs as provided as part of
 the New York city subway action plan. The city share of $418,000,000  is
 to  be provided by the city for the MTA to pay the capital and operating
 costs as provided in the New York city subway action plan.
   § 2. (a) The state share of funds provided pursuant to section one  of
 this  act  shall  be  scheduled  and  paid  to  the MTA no later than as
 follows:  $46,444,444.44  no  later  than  the  end   of   April   2018,
 $46,444,444.44  no  later  than  the  end of May 2018, $46,444,444.44 no
 later than the end of June 2018, $46,444,444.44 no later than the end of
 July 2018,  $46,444,444.44  no  later  than  the  end  of  August  2018,
 $46,444,444.44  no  later than the end of September 2018, $46,444,444.44
 no later than the end of October 2018, $46,444,444.44 no later than  the
 end of November 2018, and $46,444,444.48 no later than the end of Decem-
 ber 2018.

 S. 7509--C                         79                         A. 9509--C

   (b)  The  city share of funds provided pursuant to section one of this
 act shall be scheduled and paid to the MTA no  later  than  as  follows:
 $69,666,666.66 on the first of July 2018; $69,666,666.66 on the first of
 August   2018;   $69,666,666.66   on   the   first  of  September  2018;
 $69,666,666.66 on the first of October 2018; $69,666,666.66 on the first
 of  November 2018; and, $69,666,666.70 on the last day of December 2018.
 The city shall, no later than  seven  days  after  making  each  payment
 pursuant  to  this subdivision, certify to the state comptroller and the
 New York state director of budget the amount of the payment and the date
 upon which such payment was made.
   § 3. No funds dedicated to the New York city  subway  action  plan  by
 either  the  city  or  the state shall be used to reduce or supplant the
 commitment by the city and state to provide funding for any  current  or
 future commitment to the MTA.
   §  4. (a) Notwithstanding any provision of law to the contrary, in the
 event the city fails to certify to the state  comptroller  and  the  New
 York state director of budget that the city has paid in full any payment
 required  by  subdivision  (b)  of section two of this act, the New York
 state director of the budget shall direct the comptroller  to  transfer,
 collect,  or  deposit  funds  in accordance with subdivision (b) of this
 section in an amount equal to the unpaid balance of any payment required
 by subdivision (b) of section two of this act, provided that in no event
 shall such amount exceed $418,000,000.  Such direction shall be pursuant
 to a written plan or plans filed with the comptroller, the  chairman  of
 the  senate  finance committee and the chairman of the assembly ways and
 means committee.
   (b) Notwithstanding any provision of law to the contrary  and  as  set
 forth in a plan or plans submitted by the New York state director of the
 budget  pursuant  to subdivision (a) of this section, the comptroller is
 hereby directed and authorized to: (i) transfer funds authorized by  any
 undisbursed  general  fund  aid  to  localities  appropriations or state
 special revenue fund aid to localities  appropriations,  excluding  debt
 service,  fiduciary, and federal fund appropriations, to the city to the
 subway assistance fund established by section 92-gg of the state finance
 law in accordance with such plan; and/or (ii) collect and  deposit  into
 the  subway  assistance  fund  established by section 92-gg of the state
 finance law funds from any other revenue source of the city  in  accord-
 ance  with  such plan. The comptroller is hereby authorized and directed
 to make such transfers, collections and deposits as soon as  practicable
 but  not  more than 3 days following the transmittal of such plan to the
 comptroller in accordance with subdivision (a) of this section. Provided
 however that in no event shall such deposits  exceed  $418,000,000,  and
 any  such  deposits  shall  be counted against the city share of the New
 York city subway action plan pursuant to section one of this act.
   (c) Notwithstanding any provision of law to the contrary, the  state's
 obligation and or liability to fund any program included in general fund
 aid  to  localities  appropriations or state special revenue fund aid to
 localities appropriations from which funds are transferred  pursuant  to
 subdivision  (b)  of this section shall be reduced in an amount equal to
 such transfer or transfers, provided however that in no event shall such
 amount exceed $418,000,000.
   § 5. The state finance law is amended by adding a new section 92-gg to
 read as follows:
   § 92-GG. SUBWAY ASSISTANCE FUND.  1. THERE IS  HEREBY  ESTABLISHED  IN
 THE  CUSTODY OF THE COMPTROLLER A SPECIAL FUND TO BE KNOWN AS THE SUBWAY
 ASSISTANCE FUND.

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   2. THE SUBWAY ASSISTANCE FUND SHALL CONSIST  OF  ANY  MONIES  DIRECTED
 THERETO  PURSUANT  TO  THE  PROVISIONS OF SECTION FOUR OF PART VV OF THE
 CHAPTER OF THE LAWS OF TWO THOUSAND EIGHTEEN WHICH ADDED THIS SECTION.
   3.  ALL  MONIES  DEPOSITED INTO THE SUBWAY ASSISTANCE FUND PURSUANT TO
 PART VV OF THE CHAPTER OF THE LAWS OF TWO THOUSAND EIGHTEEN WHICH  ADDED
 THIS  SECTION SHALL BE PAID TO THE METROPOLITAN TRANSPORTATION AUTHORITY
 WITHOUT APPROPRIATION, FOR USE  IN  THE  SAME  MANNER  AS  THE  PAYMENTS
 REQUIRED  BY  SUBDIVISION  (B)  OF  SECTION TWO OF SUCH PART, AS SOON AS
 PRACTICABLE BUT NOT MORE THAN FIVE DAYS FROM THE  DATE  THE  COMPTROLLER
 DETERMINES  THAT  THE  FULL  AMOUNT OF THE UNPAID BALANCE OF ANY PAYMENT
 REQUIRED BY SUBDIVISION (B) OF SECTION TWO OF SUCH PART HAS BEEN  DEPOS-
 ITED INTO THE SUBWAY ASSISTANCE FUND.
   §  6.  This  act  shall  take  effect  immediately; provided, however,
 sections one, two and four of  this  act  shall  expire  and  be  deemed
 repealed  thirty  days  after all payments required pursuant to this act
 shall have been deposited in the manner  prescribed  by  this  act.  The
 state  of New York and the city of New York shall notify the legislative
 bill drafting commission upon such final payment provided  for  in  this
 act  in  order  that  the commission may maintain an accurate and timely
 effective data base of the official text of the laws of the state of New
 York in furtherance of effectuating the provisions of section 44 of  the
 legislative law and section 70-b of the public officers law.
 
                                  PART WW
 
   Section  1.  Notwithstanding  any  other provision of law, the housing
 trust fund corporation may provide, for purposes  of  the  rural  rental
 assistance  program  pursuant  to  article  17-a  of the private housing
 finance law, a sum not to exceed $23,649,000 for the fiscal year  ending
 March  31, 2019. Notwithstanding any other provision of law, and subject
 to the approval of the New York state director of the budget, the  board
 of  directors  of  the state of New York mortgage agency shall authorize
 the transfer to the housing trust fund corporation, for the purposes  of
 reimbursing  any  costs  associated with rural rental assistance program
 contracts authorized  by  this  section,  a  total  sum  not  to  exceed
 $23,649,000,  such  transfer  to be made from (i) the special account of
 the mortgage insurance fund created pursuant to section  2429-b  of  the
 public  authorities  law,  in  an amount not to exceed the actual excess
 balance in the special account of the mortgage insurance fund, as deter-
 mined and certified by the state of New York  mortgage  agency  for  the
 fiscal  year  2017-2018  in accordance with section 2429-b of the public
 authorities law, if any, and/or (ii) provided that the reserves  in  the
 project  pool  insurance  account of the mortgage insurance fund created
 pursuant to section 2429-b of the public authorities law are  sufficient
 to  attain and maintain the credit rating (as determined by the state of
 New York mortgage agency) required to accomplish the  purposes  of  such
 account,  the  project  pool insurance account of the mortgage insurance
 fund, such transfer to be made as soon as practicable but no later  than
 June 30, 2018.
   §  2.  Notwithstanding  any  other provision of law, the housing trust
 fund corporation may provide, for purposes of the neighborhood preserva-
 tion program, a sum not to exceed $8,479,000 for the fiscal year  ending
 March 31, 2019.  Notwithstanding any other provision of law, and subject
 to  the approval of the New York state director of the budget, the board
 of directors of the state of New York mortgage  agency  shall  authorize
 the  transfer to the housing trust fund corporation, for the purposes of

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 reimbursing any costs associated with neighborhood preservation  program
 contracts  authorized  by  this  section,  a  total  sum  not  to exceed
 $8,479,000, such transfer to be made from (i) the special account of the
 mortgage insurance fund created pursuant to section 2429-b of the public
 authorities law, in an amount not to exceed the actual excess balance in
 the  special  account  of the mortgage insurance fund, as determined and
 certified by the state of New York mortgage agency for the  fiscal  year
 2017-2018  in  accordance  with section 2429-b of the public authorities
 law, if any, and/or (ii) provided that the reserves in the project  pool
 insurance  account  of  the  mortgage insurance fund created pursuant to
 section 2429-b of the public authorities law are  sufficient  to  attain
 and  maintain  the credit rating (as determined by the state of New York
 mortgage agency) required to accomplish the purposes  of  such  account,
 the  project pool insurance account of the mortgage insurance fund, such
 transfer to be made as soon as practicable but no later  than  June  30,
 2018.
   §  3.  Notwithstanding  any  other provision of law, the housing trust
 fund corporation may provide, for purposes  of  the  rural  preservation
 program, a sum not to exceed $3,539,000 for the fiscal year ending March
 31,  2019.    Notwithstanding any other provision of law, and subject to
 the approval of the New York state director of the budget, the board  of
 directors  of  the state of New York mortgage agency shall authorize the
 transfer to the housing trust fund  corporation,  for  the  purposes  of
 reimbursing   any  costs  associated  with  rural  preservation  program
 contracts authorized  by  this  section,  a  total  sum  not  to  exceed
 $3,539,000, such transfer to be made from (i) the special account of the
 mortgage insurance fund created pursuant to section 2429-b of the public
 authorities law, in an amount not to exceed the actual excess balance in
 the  special  account  of the mortgage insurance fund, as determined and
 certified by the state of New York mortgage agency for the  fiscal  year
 2017-2018  in  accordance  with section 2429-b of the public authorities
 law, if any, and/or (ii) provided that the reserves in the project  pool
 insurance  account  of  the  mortgage insurance fund created pursuant to
 section 2429-b of the public authorities law are  sufficient  to  attain
 and  maintain  the credit rating (as determined by the state of New York
 mortgage agency) required to accomplish the purposes  of  such  account,
 the  project pool insurance account of the mortgage insurance fund, such
 transfer to be made as soon as practicable but no later  than  June  30,
 2018.
   §  4. Notwithstanding any other provision of law, the homeless housing
 and assistance corporation may provide, for purposes  of  the  New  York
 state  supportive  housing  program,  the  solutions to end homelessness
 program or the operational support for AIDS housing program, or to qual-
 ified grantees under those programs, in accordance with the requirements
 of those programs, a sum not to exceed $8,333,000 for  the  fiscal  year
 ending  March  31, 2019. The homeless housing and assistance corporation
 may enter into an agreement with the office of temporary and  disability
 assistance to administer such sum in accordance with the requirements of
 the programs. Notwithstanding any other provision of law, and subject to
 the  approval of the New York state director of the budget, the board of
 directors of the state of New York mortgage agency shall  authorize  the
 transfer to the homeless housing and assistance corporation, a total sum
 not  to exceed $8,333,000, such transfer to be made from (i) the special
 account of the mortgage  insurance  fund  created  pursuant  to  section
 2429-b  of  the  public  authorities law, in an amount not to exceed the
 actual excess balance in the special account of the  mortgage  insurance

 S. 7509--C                         82                         A. 9509--C

 fund,  as  determined  and  certified  by the state of New York mortgage
 agency for the fiscal year 2017-2018 in accordance with  section  2429-b
 of  the  public  authorities  law, if any, and/or (ii) provided that the
 reserves in the project pool insurance account of the mortgage insurance
 fund  created  pursuant  to section 2429-b of the public authorities law
 are sufficient to attain and maintain the credit rating  (as  determined
 by  the  state  of  New York mortgage agency) required to accomplish the
 purposes of such account, the project  pool  insurance  account  of  the
 mortgage insurance fund, such transfer to be made as soon as practicable
 but no later than March 31, 2019.
   §  5.  Section 12 of part R of chapter 56 of the laws of 2017 relating
 to utilizing reserves in the mortgage insurance fund for various housing
 purposes is REPEALED and a new section 12 is added to read as follows:
   § 12. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE HOMELESS HOUSING
 AND ASSISTANCE CORPORATION MAY PROVIDE, FOR PURPOSES  OF  THE  NEW  YORK
 STATE  SUPPORTIVE  HOUSING  PROGRAM,  THE  SOLUTIONS TO END HOMELESSNESS
 PROGRAM OR THE OPERATIONAL SUPPORT FOR AIDS HOUSING PROGRAM, OR TO QUAL-
 IFIED GRANTEES UNDER THOSE PROGRAMS, IN ACCORDANCE WITH THE REQUIREMENTS
 OF THOSE PROGRAMS, A SUM NOT TO  EXCEED  TWO  MILLION  DOLLARS  FOR  THE
 FISCAL  YEAR  ENDING MARCH 31, 2019. THE HOMELESS HOUSING AND ASSISTANCE
 CORPORATION MAY ENTER INTO AN AGREEMENT WITH THE OFFICE OF TEMPORARY AND
 DISABILITY ASSISTANCE TO ADMINISTER SUCH  SUM  IN  ACCORDANCE  WITH  THE
 REQUIREMENTS  OF  THE  PROGRAMS.  NOTWITHSTANDING ANY OTHER PROVISION OF
 LAW, AND SUBJECT TO THE APPROVAL OF THE NEW YORK STATE DIRECTOR  OF  THE
 BUDGET,  THE BOARD OF DIRECTORS OF THE STATE OF NEW YORK MORTGAGE AGENCY
 SHALL AUTHORIZE THE TRANSFER TO  THE  HOMELESS  HOUSING  AND  ASSISTANCE
 CORPORATION,  A TOTAL SUM NOT TO EXCEED TWO MILLION DOLLARS, SUCH TRANS-
 FER TO BE MADE FROM (I) THE SPECIAL ACCOUNT OF  THE  MORTGAGE  INSURANCE
 FUND  CREATED  PURSUANT TO SECTION 2429-B OF THE PUBLIC AUTHORITIES LAW,
 IN AN AMOUNT NOT TO EXCEED THE ACTUAL  EXCESS  BALANCE  IN  THE  SPECIAL
 ACCOUNT  OF  THE MORTGAGE INSURANCE FUND, AS DETERMINED AND CERTIFIED BY
 THE STATE OF NEW YORK MORTGAGE AGENCY FOR THE FISCAL YEAR  2016-2017  IN
 ACCORDANCE  WITH  SECTION  2429-B OF THE PUBLIC AUTHORITIES LAW, IF ANY,
 AND/OR (II) PROVIDED THAT THE RESERVES IN  THE  PROJECT  POOL  INSURANCE
 ACCOUNT  OF  THE  MORTGAGE  INSURANCE  FUND  CREATED PURSUANT TO SECTION
 2429-B OF THE PUBLIC AUTHORITIES LAW ARE SUFFICIENT TO ATTAIN AND  MAIN-
 TAIN  THE CREDIT RATING (AS DETERMINED BY THE STATE OF NEW YORK MORTGAGE
 AGENCY) REQUIRED TO ACCOMPLISH THE PURPOSES OF SUCH ACCOUNT, THE PROJECT
 POOL INSURANCE ACCOUNT OF THE MORTGAGE INSURANCE FUND, SUCH TRANSFER  TO
 BE MADE AS SOON AS PRACTICABLE BUT NO LATER THAN MARCH 31, 2019.
   §  6.  Section 13 of part R of chapter 56 of the laws of 2017 relating
 to utilizing reserves in the mortgage insurance fund for various housing
 purposes is REPEALED and a new section 13 is added to read as follows:
   § 13. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AND IN  ADDITION  TO
 THE POWERS CURRENTLY AUTHORIZED TO BE EXERCISED BY THE STATE OF NEW YORK
 MUNICIPAL  BOND  BANK  AGENCY, THE STATE OF NEW YORK MUNICIPAL BOND BANK
 AGENCY MAY PROVIDE, FOR PURPOSES OF MUNICIPAL  RELIEF  TO  THE  CITY  OF
 ALBANY,  A  SUM  NOT  TO EXCEED NINE MILLION DOLLARS FOR THE CITY FISCAL
 YEAR ENDING DECEMBER 31, 2018, TO THE CITY  OF  ALBANY.  NOTWITHSTANDING
 ANY  OTHER PROVISION OF LAW, AND SUBJECT TO THE APPROVAL OF THE NEW YORK
 STATE DIRECTOR OF THE BUDGET, THE STATE  OF  NEW  YORK  MORTGAGE  AGENCY
 SHALL  TRANSFER  TO THE STATE OF NEW YORK MUNICIPAL BOND BANK AGENCY FOR
 DISTRIBUTION AS MUNICIPAL RELIEF TO THE CITY OF ALBANY, A TOTAL SUM  NOT
 TO  EXCEED  NINE  MILLION DOLLARS, SUCH TRANSFER TO BE MADE FROM (I) THE
 SPECIAL ACCOUNT OF THE  MORTGAGE  INSURANCE  FUND  CREATED  PURSUANT  TO
 SECTION 2429-B OF THE PUBLIC AUTHORITIES LAW, IN AN AMOUNT NOT TO EXCEED

 S. 7509--C                         83                         A. 9509--C
 
 THE  ACTUAL EXCESS BALANCE IN THE SPECIAL ACCOUNT OF THE MORTGAGE INSUR-
 ANCE FUND, AS DETERMINED AND CERTIFIED BY THE STATE OF NEW YORK MORTGAGE
 AGENCY FOR THE FISCAL YEAR 2017-2018 IN ACCORDANCE WITH  SECTION  2429-B
 OF  THE  PUBLIC  AUTHORITIES  LAW, IF ANY, AND/OR (II) PROVIDED THAT THE
 RESERVES IN THE PROJECT POOL INSURANCE ACCOUNT OF THE MORTGAGE INSURANCE
 FUND CREATED PURSUANT TO SECTION 2429-B OF THE  PUBLIC  AUTHORITIES  LAW
 ARE  SUFFICIENT  TO ATTAIN AND MAINTAIN THE CREDIT RATING (AS DETERMINED
 BY THE AGENCY) REQUIRED TO ACCOMPLISH THE PURPOSES OF SUCH ACCOUNT,  THE
 PROJECT  POOL  INSURANCE  ACCOUNT OF THE MORTGAGE INSURANCE FUND CREATED
 PURSUANT TO SECTION 2429-B OF THE PUBLIC AUTHORITIES LAW, SUCH  TRANSFER
 TO  BE  MADE AS SOON AS PRACTICABLE NO LATER THAN DECEMBER 31, 2018, AND
 PROVIDED FURTHER THAT THE NEW YORK STATE  DIRECTOR  OF  THE  BUDGET  MAY
 REQUEST  ADDITIONAL  INFORMATION  FROM  THE CITY OF ALBANY REGARDING THE
 UTILIZATION OF THESE FUNDS AND THE FINANCES AND OPERATIONS OF THE  CITY,
 AS APPROPRIATE.
   § 7. This act shall take effect immediately.
 
                                  PART XX
 
   Section  1.  Subdivisions 9, 10, 11, 12 and 13 of section 140-a of the
 judiciary law, subdivisions 9 and 11 as amended by chapter  240  of  the
 laws  of  2005,  subdivision 10 as amended by chapter 209 of the laws of
 1990 and subdivision 12 as amended and subdivision 13 as added by  chap-
 ter 690 of the laws of 2007, are amended to read as follows:
   9. Ninth district, [twenty-eight] TWENTY-NINE;
   10. Tenth district, [forty-seven] FORTY-EIGHT;
   11. Eleventh district, [thirty-nine] FORTY;
   12. Twelfth district, [twenty-five] TWENTY-SIX;
   13. Thirteenth district, [three] FOUR.
   §  2.  This act shall take effect immediately; provided, however, that
 the additional supreme court judges provided for by section one of  this
 act  shall first be elected at the general election to be held in Novem-
 ber 2018 and shall take office January 1, 2019.
 
                                  PART YY
 
   Section 1. Paragraphs (a), (b),  (c)  and  (d)  of  subdivision  1  of
 section  131-o  of  the  social services law, as amended by section 1 of
 part P of chapter 56 of the  laws  of  2017,  are  amended  to  read  as
 follows:
   (a)  in  the  case of each individual receiving family care, an amount
 equal to at least [$141.00] $144.00 for each month beginning on or after
 January first, two thousand [seventeen] EIGHTEEN.
   (b) in the case of each  individual  receiving  residential  care,  an
 amount  equal  to at least [$163.00] $166.00 for each month beginning on
 or after January first, two thousand [seventeen] EIGHTEEN.
   (c) in the case of  each  individual  receiving  enhanced  residential
 care,  an  amount  equal  to  at  least [$194.00] $198.00 for each month
 beginning on or after January first, two thousand [seventeen] EIGHTEEN.
   (d) for the period commencing January first, two  thousand  [eighteen]
 NINETEEN,  the monthly personal needs allowance shall be an amount equal
 to the sum of the amounts set forth in subparagraphs one and two of this
 paragraph:
   (1) the amounts specified in paragraphs  (a),  (b)  and  (c)  of  this
 subdivision; and

 S. 7509--C                         84                         A. 9509--C
 
   (2)  the  amount  in subparagraph one of this paragraph, multiplied by
 the percentage of any  federal  supplemental  security  income  cost  of
 living adjustment which becomes effective on or after January first, two
 thousand  [eighteen] NINETEEN, but prior to June thirtieth, two thousand
 [eighteen] NINETEEN, rounded to the nearest whole dollar.
   §  2.  Paragraphs  (a), (b), (c), (d), (e) and (f) of subdivision 2 of
 section 209 of the social services law, as amended by section 2 of  part
 P of chapter 56 of the laws of 2017, are amended to read as follows:
   (a) On and after January first, two thousand [seventeen] EIGHTEEN, for
 an  eligible  individual  living  alone,  [$822.00]  $837.00; and for an
 eligible couple living alone, [$1,207.00] $1,229.00.
   (b) On and after January first, two thousand [seventeen] EIGHTEEN, for
 an eligible individual  living  with  others  with  or  without  in-kind
 income, [$758.00] $773.00; and for an eligible couple living with others
 with or without in-kind income, [$1,149.00] $1,171.00.
   (c) On and after January first, two thousand [seventeen] EIGHTEEN, (i)
 for  an eligible individual receiving family care, [$1,001.48] $1,016.48
 if he or she is receiving such care in the city of New York or the coun-
 ty of Nassau, Suffolk, Westchester or Rockland; and (ii) for an eligible
 couple receiving family care in the city of New York or  the  county  of
 Nassau, Suffolk, Westchester or Rockland, two times the amount set forth
 in subparagraph (i) of this paragraph; or (iii) for an eligible individ-
 ual  receiving  such  care  in  any other county in the state, [$963.48]
 $978.48; and (iv) for an eligible couple  receiving  such  care  in  any
 other  county  in  the state, two times the amount set forth in subpara-
 graph (iii) of this paragraph.
   (d) On and after January first, two thousand [seventeen] EIGHTEEN, (i)
 for an  eligible  individual  receiving  residential  care,  [$1,170.00]
 $1,185.00 if he or she is receiving such care in the city of New York or
 the  county of Nassau, Suffolk, Westchester or Rockland; and (ii) for an
 eligible couple receiving residential care in the city of  New  York  or
 the  county  of  Nassau, Suffolk, Westchester or Rockland, two times the
 amount set forth in subparagraph (i) of this paragraph; or (iii) for  an
 eligible  individual  receiving  such  care  in  any other county in the
 state, [$1,140.00] $1,155.00; and (iv) for an eligible couple  receiving
 such  care  in  any  other county in the state, two times the amount set
 forth in subparagraph (iii) of this paragraph.
   (e) (i) On and after January first, two thousand [seventeen] EIGHTEEN,
 for  an  eligible  individual  receiving  enhanced   residential   care,
 [$1,429.00]  $1,444.00;  and  (ii)  for  an  eligible  couple  receiving
 enhanced residential care, two times the amount set  forth  in  subpara-
 graph (i) of this paragraph.
   (f) The amounts set forth in paragraphs (a) through (e) of this subdi-
 vision  shall  be  increased to reflect any increases in federal supple-
 mental security income benefits for individuals or couples which  become
 effective  on  or  after January first, two thousand [eighteen] NINETEEN
 but prior to June thirtieth, two thousand [eighteen] NINETEEN.
   § 3. This act shall take effect December 31, 2018.
 
                                  PART ZZ
 
   Section 1. Subdivision 14 of section 131-a of the social services law,
 as added by section 1 of part H of chapter 58 of the laws  of  2014,  is
 amended to read as follows:
   14.  In  determining  the  need  for  aid  provided pursuant to public
 assistance programs, each person living with  [clinical/symptomatic  HIV

 S. 7509--C                         85                         A. 9509--C

 illness  or  AIDS]  MEDICALLY  DIAGNOSED HIV INFECTION AS DEFINED BY THE
 AIDS INSTITUTE OF THE DEPARTMENT OF HEALTH in social services  districts
 with  a  population  over five million who is receiving services through
 such  district's administrative unit providing HIV/AIDS services, public
 assistance and earned and/or unearned income, shall not be  required  to
 pay  more  than  thirty  percent  of  his  or  her monthly earned and/or
 unearned income toward the cost of rent that such person  has  a  direct
 obligation  to  pay;  this  provision  shall not apply to room and board
 arrangements.
   § 2. Section 131-a of the social services law is amended by  adding  a
 new subdivision 15 to read as follows:
   15.  IN  DETERMINING  THE  NEED  FOR  AID  PROVIDED PURSUANT TO PUBLIC
 ASSISTANCE  PROGRAMS,  EACH  PUBLIC  ASSISTANCE  RECIPIENT  LIVING  WITH
 MEDICALLY  DIAGNOSED  HIV  INFECTION AS DEFINED BY THE AIDS INSTITUTE OF
 THE DEPARTMENT OF HEALTH IN SOCIAL SERVICES DISTRICTS WITH A  POPULATION
 OF  FIVE MILLION OR FEWER, AT LOCAL OPTION AND IN ACCORDANCE WITH A PLAN
 APPROVED BY THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE,  MAY  NOT
 BE REQUIRED TO PAY MORE THAN THIRTY PERCENT OF HIS OR HER MONTHLY EARNED
 AND/OR  UNEARNED  INCOME  TOWARD THE COST OF RENT THAT SUCH PERSON HAS A
 DIRECT OBLIGATION TO PAY; THIS PROVISION SHALL NOT  APPLY  TO  ROOM  AND
 BOARD ARRANGEMENTS.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 have become a law; provided, that the  commissioner  of  the  office  of
 temporary  and  disability assistance may promulgate all rules and regu-
 lations necessary to implement the provisions of this act on an emergen-
 cy basis.
 
                                 PART AAA
 
   Section 1. Section 1 of subpart H of part C of chapter 20 of the  laws
 of  2015,  appropriating  money  for  certain municipal corporations and
 school districts, as amended by section 1 of part QQ of  chapter  58  of
 the laws of 2017, is amended to read as follows:
   Section  1.  Contingent  upon  available  funding,  and  not to exceed
 [$45,000,000] $69,000,000 moneys from the urban development  corporation
 shall be available for a local government entity, which for the purposes
 of  this  section  shall  mean  a  county,  city,  town, village, school
 district or special district, where (i) on or after June  25,  2015,  an
 electric generating facility located within such local government entity
 has  ceased operations, and (ii) the closing of such facility has caused
 a reduction in the real property tax collections or payments in lieu  of
 taxes of at least twenty percent owed by such electric generating facil-
 ity.  Such  moneys attributable to the cessation of operations, shall be
 paid annually on a first come, first served basis by the urban  develop-
 ment  corporation  to  such  local government entity within a reasonable
 time upon confirmation from  the  state  office  of  real  property  tax
 services  or  the  local  industrial  development  authority established
 pursuant to titles eleven and fifteen of article  eight  of  the  public
 authorities  law, or the local industrial development agency established
 pursuant to article eighteen-A of the general municipal  law  that  such
 cessation  has  resulted  in  a  reduction  in  the  real  property  tax
 collections or payments in lieu of taxes, provided,  however,  that  the
 urban development corporation shall not provide assistance to such local
 government  entity  for  more than seven years, and shall award payments
 reflecting the loss of revenues due to the cessation  of  operations  as
 follows:

 S. 7509--C                         86                         A. 9509--C
 
         Award Year                Maximum Potential Award
             1           no more than eighty percent of loss of revenues
             2           no more than seventy percent of loss of revenues
             3           no more than sixty percent of loss of revenues
             4           no more than fifty percent of loss of revenues
             5           no more than forty percent of loss of revenues
             6           no more than thirty percent of loss of revenues
             7           no more than twenty percent of loss of revenues
 
   A  local  government  entity shall be eligible for only one payment of
 funds hereunder per year.  A local government entity may seek assistance
 under the electric generation facility cessation mitigation fund once  a
 generator  has submitted its notice to the federally designated electric
 bulk system operator (BSO) serving the state of New York of  its  intent
 to retire the facility or of its intent to voluntarily remove the facil-
 ity  from  service  subject  to  any return-to-service provisions of any
 tariff, and that the facility also is ineligible to participate  in  the
 markets  operated  by the BSO. The date of submission of a local govern-
 ment entity's application for assistance shall establish  the  order  in
 which  assistance is paid to program applicants, except that in no event
 shall assistance be paid to a local government entity  until  such  time
 that an electric generating facility has retired or become ineligible to
 participate  in  the  markets  operated by the BSO. For purposes of this
 section, any local government entity seeking assistance under the  elec-
 tric generation facility cessation mitigation fund must submit an attes-
 tation  to the department of public service that a facility is no longer
 producing electricity and is no longer participating in markets operated
 by the BSO. After receipt of such attestation, the department of  public
 service  shall  confirm  such information with the BSO. In the case that
 the BSO confirms to the department of public service that  the  facility
 is no longer producing electricity and participating in markets operated
 by  such  BSO,  it shall be deemed that the electric generating facility
 located within the local government entity  has  ceased  operation.  The
 department  of  public  service  shall  provide such confirmation to the
 urban development corporation upon receipt.  The  determination  of  the
 amount  of  such  annual payment shall be determined by the president of
 the urban development corporation based on the amount of  the  differen-
 tial  between  the  annual  real  property taxes and payments in lieu of
 taxes imposed upon the facility, exclusive of  interest  and  penalties,
 during  the  last year of operations and the current real property taxes
 and payments in lieu of taxes imposed upon the  facility,  exclusive  of
 interest and penalties. The total amount awarded from this program shall
 not exceed [$45,000,000] $69,000,000.
   §  2.  This  act shall take effect immediately provided, however, that
 the amendments to section 1 of subpart H of part C of chapter 20 of  the
 laws of 2015 made by section one of this act shall not affect the repeal
 of such subpart and shall be deemed repealed therewith.
 
                                 PART BBB
 
   Section  1. The state comptroller is hereby authorized and directed to
 loan money in accordance with the provisions set forth in subdivision  5
 of  section  4  of  the  state finance law to the following funds and/or
 accounts:
   1. Proprietary vocational school supervision account (20452).
   2. Local government records management account (20501).

 S. 7509--C                         87                         A. 9509--C
 
   3. Child health plus program account (20810).
   4. EPIC premium account (20818).
   5. Education - New (20901).
   6. VLT - Sound basic education fund (20904).
   7.   Sewage  treatment  program  management  and  administration  fund
 (21000).
   8. Hazardous bulk storage account (21061).
   9. Federal grants indirect cost recovery account (21065).
   10. Low level radioactive waste account (21066).
   11. Recreation account (21067).
   12. Public safety recovery account (21077).
   13. Environmental regulatory account (21081).
   14. Natural resource account (21082).
   15. Mined land reclamation program account (21084).
   16. Great lakes restoration initiative account (21087).
   17. Environmental protection and oil spill compensation fund (21200).
   18. Public transportation systems account (21401).
   19. Metropolitan mass transportation (21402).
   20. Operating permit program account (21451).
   21. Mobile source account (21452).
   22.  Statewide  planning  and  research  cooperative  system   account
 (21902).
   23. New York state thruway authority account (21905).
   24. Mental hygiene program fund account (21907).
   25. Mental hygiene patient income account (21909).
   26. Financial control board account (21911).
   27. Regulation of racing account (21912).
   28. New York Metropolitan Transportation Council account (21913).
   29. State university dormitory income reimbursable account (21937).
   30. Criminal justice improvement account (21945).
   31. Environmental laboratory reference fee account (21959).
   32. Clinical laboratory reference system assessment account (21962).
   33. Indirect cost recovery account (21978).
   34. High school equivalency program account (21979).
   35. Multi-agency training account (21989).
   36.  Interstate  reciprocity  for  post-secondary  distance  education
 account (23800).
   37. Bell jar collection account (22003).
   38. Industry and utility service account (22004).
   39. Real property disposition account (22006).
   40. Parking account (22007).
   41. Courts special grants (22008).
   42. Asbestos safety training program account (22009).
   43. Batavia school for the blind account (22032).
   44. Investment services account (22034).
   45. Surplus property account (22036).
   46. Financial oversight account (22039).
   47. Regulation of Indian gaming account (22046).
   48. Rome school for the deaf account (22053).
   49. Seized assets account (22054).
   50. Administrative adjudication account (22055).
   51. Federal salary sharing account (22056).
   52. New York City assessment account (22062).
   53. Cultural education account (22063).
   54. Local services account (22078).
   55. DHCR mortgage servicing account (22085).

 S. 7509--C                         88                         A. 9509--C
 
   56. Housing indirect cost recovery account (22090).
   57. DHCR-HCA application fee account (22100).
   58. Low income housing monitoring account (22130).
   59. Corporation administration account (22135).
   60. Montrose veteran's home account (22144).
   61. Deferred compensation administration account (22151).
   62. Rent revenue other New York City account (22156).
   63. Rent revenue account (22158).
   64. Tax revenue arrearage account (22168).
   65. Intentionally omitted.
   66. State university general income offset account (22654).
   67. Lake George park trust fund account (22751).
   68. State police motor vehicle law enforcement account (22802).
   69. Highway safety program account (23001).
   70. DOH drinking water program account (23102).
   71. NYCCC operating offset account (23151).
   72. Commercial gaming revenue account (23701).
   73. Commercial gaming regulation account (23702).
   74. Highway use tax administration account (23801).
   75. Fantasy sports administration account (24951).
   76. Highway and bridge capital account (30051).
   77. Aviation purpose account (30053).
   78. State university residence hall rehabilitation fund (30100).
   79. State parks infrastructure account (30351).
   80. Clean water/clean air implementation fund (30500).
   81. Hazardous waste remedial cleanup account (31506).
   82. Youth facilities improvement account (31701).
   83. Housing assistance fund (31800).
   84. Housing program fund (31850).
   85. Highway facility purpose account (31951).
   86. Information technology capital financing account (32215).
   87. New York racing account (32213).
   88. Capital miscellaneous gifts account (32214).
   89.  New  York  environmental protection and spill remediation account
 (32219).
   90. Mental hygiene facilities capital improvement fund (32300).
   91. Correctional facilities capital improvement fund (32350).
   92. New York State Storm Recovery Capital Fund (33000).
   93. OGS convention center account (50318).
   94. Empire Plaza Gift Shop (50327).
   95. Centralized services fund (55000).
   96. Archives records management account (55052).
   97. Federal single audit account (55053).
   98. Civil service EHS occupational health program account (55056).
   99. Banking services account (55057).
   100. Cultural resources survey account (55058).
   101. Neighborhood work project account (55059).
   102. Automation & printing chargeback account (55060).
   103. OFT NYT account (55061).
   104. Data center account (55062).
   105. Intrusion detection account (55066).
   106. Domestic violence grant account (55067).
   107. Centralized technology services account (55069).
   108. Labor contact center account (55071).
   109. Human services contact center account (55072).
   110. Tax contact center account (55073).

 S. 7509--C                         89                         A. 9509--C
 
   111. Executive direction internal audit account (55251).
   112. CIO Information technology centralized services account (55252).
   113. Health insurance internal service account (55300).
   114.  Civil  service employee benefits division administrative account
 (55301).
   115. Correctional industries revolving fund (55350).
   116. Employees health insurance account (60201).
   117. Medicaid management information system escrow fund (60900).
   118. Department of law civil recoveries account.
   119. Utility environmental regulatory account (21064).
   120. New York state secure choice administrative account.
   § 1-a. The state comptroller is hereby authorized and directed to loan
 money in accordance with the provisions set forth in  subdivision  5  of
 section  4  of the state finance law to any account within the following
 federal funds, provided the comptroller has made  a  determination  that
 sufficient  federal grant award authority is available to reimburse such
 loans:
   1. Federal USDA-food and nutrition services fund (25000).
   2. Federal health and human services fund (25100).
   3. Federal education fund (25200).
   4. Federal block grant fund (25250).
   5. Federal miscellaneous operating grants fund (25300).
   6. Federal unemployment insurance administration fund (25900).
   7. Federal unemployment insurance occupational training fund (25950).
   8. Federal emergency employment act fund (26000).
   9. Federal capital projects fund (31350).
   § 1-b. The state comptroller is hereby authorized and directed to loan
 money in accordance with the provisions set forth in  subdivision  5  of
 section 4 of the state finance law to any fund within the special reven-
 ue,  capital projects, proprietary or fiduciary funds for the purpose of
 payment of any fringe benefit or  indirect  cost  liabilities  or  obli-
 gations incurred.
   §  2.  Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the director of the budget, on
 or before March 31, 2019, up to the unencumbered balance or the  follow-
 ing amounts:
   Economic Development and Public Authorities:
   1.  $175,000  from the miscellaneous special revenue fund, underground
 facilities safety training account (22172), to the general fund.
   2. $2,500,000 from the miscellaneous special revenue fund, cable tele-
 vision account (21971), to the general fund.
   3. An amount up to the unencumbered  balance  from  the  miscellaneous
 special  revenue  fund, business and licensing services account (21977),
 to the general fund.
   4. $14,810,000 from  the  miscellaneous  special  revenue  fund,  code
 enforcement account (21904), to the general fund.
   5.  $3,000,000  from  the  general  fund  to the miscellaneous special
 revenue fund, tax revenue arrearage account (22168).
   Education:
   1. $2,294,000,000 from the general fund to  the  state  lottery  fund,
 education  account (20901), as reimbursement for disbursements made from
 such fund for supplemental aid to education pursuant to section 92-c  of
 the  state  finance  law  that are in excess of the amounts deposited in
 such fund for such purposes pursuant to section 1612 of the tax law.

 S. 7509--C                         90                         A. 9509--C
 
   2. $906,800,000 from the general fund to the state lottery  fund,  VLT
 education  account (20904), as reimbursement for disbursements made from
 such fund for supplemental aid to education pursuant to section 92-c  of
 the  state  finance  law  that are in excess of the amounts deposited in
 such fund for such purposes pursuant to section 1612 of the tax law.
   3. $140,040,000 from the general fund to the New York state commercial
 gaming fund, commercial gaming revenue account (23701), as reimbursement
 for  disbursements made from such fund for supplemental aid to education
 pursuant to section 97-nnnn of the state finance law that are in  excess
 of  the  amounts deposited in such fund for purposes pursuant to section
 1352 of the racing, pari-mutuel wagering and breeding law.
   4. Moneys from the state lottery fund (20900) up to an amount deposit-
 ed in such fund pursuant to section 1612 of the tax law in excess of the
 current year appropriation for supplemental aid to education pursuant to
 section 92-c of the state finance law.
   5. $300,000 from the New York state local government  records  manage-
 ment  improvement  fund,  local  government  records  management account
 (20501), to the New York state archives partnership trust fund, archives
 partnership trust maintenance account (20351).
   6. $900,000 from the general fund to the miscellaneous special revenue
 fund, Batavia school for the blind account (22032).
   7. $900,000 from the general fund to the miscellaneous special revenue
 fund, Rome school for the deaf account (22053).
   8. $343,400,000  from  the  state  university  dormitory  income  fund
 (40350)  to  the  miscellaneous  special  revenue fund, state university
 dormitory income reimbursable account (21937).
   9. $20,000,000 from any of  the  state  education  department  special
 revenue  and internal service funds to the miscellaneous special revenue
 fund, indirect cost recovery account (21978).
   10. $8,318,000 from the general fund to the  state  university  income
 fund,  state  university  income offset account (22654), for the state's
 share of repayment of the STIP loan.
   11. $44,000,000 from the state university income fund, state universi-
 ty hospitals income reimbursable account (22656) to the general fund for
 hospital debt service for the period April 1,  2018  through  March  31,
 2019.
   12.  $4,300,000 from the miscellaneous special revenue fund, office of
 the professions account (22051), to the miscellaneous  capital  projects
 fund, office of the professions electronic licensing account (32200).
   Environmental Affairs:
   1.  $16,000,000  from any of the department of environmental conserva-
 tion's special revenue federal funds to the  environmental  conservation
 special revenue fund, federal indirect recovery account (21065).
   2.  $5,000,000  from  any of the department of environmental conserva-
 tion's special revenue federal funds to the conservation fund (21150) as
 necessary to avoid diversion of conservation funds.
   3. $3,000,000 from any of the office of parks, recreation and historic
 preservation capital projects federal funds and special revenue  federal
 funds  to the miscellaneous special revenue fund, federal grant indirect
 cost recovery account (22188).
   4. $1,000,000 from any of the office of parks, recreation and historic
 preservation special revenue federal funds to the miscellaneous  capital
 projects fund, I love NY water account (32212).
   5.  $28,000,000  from the general fund to the environmental protection
 fund, environmental protection fund transfer account (30451).

 S. 7509--C                         91                         A. 9509--C
 
   6. $6,500,000 from the general fund to the  hazardous  waste  remedial
 fund, hazardous waste oversight and assistance account (31505).
   7.  An  amount  up  to or equal to the cash balance within the special
 revenue-other waste management & cleanup account (21053) to the  capital
 projects  fund  (30000) for services and capital expenses related to the
 management and cleanup program as put forth in section  27-1915  of  the
 environmental conservation law.
   8.  $1,800,000  from  the  miscellaneous  special revenue fund, public
 service account (22011) to the miscellaneous special revenue fund, util-
 ity environmental regulatory account (21064).
   Family Assistance:
   1. $7,000,000 from any of the office of children and family  services,
 office  of  temporary and disability assistance, or department of health
 special revenue federal funds and the general fund, in  accordance  with
 agreements  with social services districts, to the miscellaneous special
 revenue fund, office of human resources development state match  account
 (21967).
   2.  $4,000,000  from any of the office of children and family services
 or office of temporary and disability assistance special revenue federal
 funds to the miscellaneous special revenue fund, family preservation and
 support services and family violence services account (22082).
   3. $18,670,000 from any of the office of children and family services,
 office of temporary and disability assistance, or department  of  health
 special  revenue  federal  funds  and  any  other miscellaneous revenues
 generated from the operation of office of children and  family  services
 programs to the general fund.
   4.  $140,000,000  from  any  of the office of temporary and disability
 assistance or department of health special revenue funds to the  general
 fund.
   5.  $2,500,000  from  any  of  the  office of temporary and disability
 assistance special revenue funds to the  miscellaneous  special  revenue
 fund,  office  of  temporary  and  disability assistance program account
 (21980).
   6. $7,400,000 from any of the office of children and family  services,
 office  of temporary and disability assistance, department of labor, and
 department of health special revenue federal  funds  to  the  office  of
 children  and family services miscellaneous special revenue fund, multi-
 agency training contract account (21989).
   7. $205,000,000 from the miscellaneous  special  revenue  fund,  youth
 facility per diem account (22186), to the general fund.
   8.  $621,850  from the general fund to the combined gifts, grants, and
 bequests fund, WB Hoyt Memorial account (20128).
   9. $5,000,000 from  the  miscellaneous  special  revenue  fund,  state
 central registry (22028), to the general fund.
   General Government:
   1. $1,566,000 from the miscellaneous special revenue fund, examination
 and miscellaneous revenue account (22065) to the general fund.
   2.  $8,083,000 from the general fund to the health insurance revolving
 fund (55300).
   3. $192,400,000  from  the  health  insurance  reserve  receipts  fund
 (60550) to the general fund.
   4. $150,000 from the general fund to the not-for-profit revolving loan
 fund (20650).
   5. $150,000 from the not-for-profit revolving loan fund (20650) to the
 general fund.

 S. 7509--C                         92                         A. 9509--C

   6.  $3,000,000  from  the  miscellaneous special revenue fund, surplus
 property account (22036), to the general fund.
   7.  $19,000,000  from  the miscellaneous special revenue fund, revenue
 arrearage account (22024), to the general fund.
   8. $1,826,000 from the miscellaneous  special  revenue  fund,  revenue
 arrearage  account  (22024),  to the miscellaneous special revenue fund,
 authority budget office account (22138).
   9. $1,000,000 from the miscellaneous  special  revenue  fund,  parking
 services  account (22007), to the general fund, for the purpose of reim-
 bursing the costs of debt service related to state parking facilities.
   10. $21,778,000 from the general  fund  to  the  centralized  services
 fund, COPS account (55013).
   11. $13,960,000 from the general fund to the agencies internal service
 fund,  central  technology  services account (55069), for the purpose of
 enterprise technology projects.
   12. $5,500,000 from the miscellaneous special revenue fund, technology
 financing account (22207) to the  internal  service  fund,  data  center
 account (55062).
   13. $12,500,000 from the internal service fund, human services telecom
 account  (55063)  to  the  internal  service  fund,  data center account
 (55062).
   14. $300,000 from  the  internal  service  fund,  learning  management
 systems  account  (55070)  to  the  internal  service  fund, data center
 account (55062).
   15. $15,000,000 from the miscellaneous special revenue fund,  workers'
 compensation  account  (21995),  to  the  miscellaneous capital projects
 fund, workers' compensation  board  IT  business  process  design  fund,
 (32218).
   16.  $12,000,000  from the miscellaneous special revenue fund, parking
 services account (22007), to the centralized services, building  support
 services account (55018).
   17.  $6,000,000  from  the  general fund to the internal service fund,
 business services center account (55022).
   Health:
   1. A transfer from the general fund to the combined gifts, grants  and
 bequests  fund, breast cancer research and education account (20155), up
 to an amount equal to the  monies  collected  and  deposited  into  that
 account in the previous fiscal year.
   2.  A transfer from the general fund to the combined gifts, grants and
 bequests  fund,  prostate  cancer  research,  detection,  and  education
 account  (20183),  up  to  an  amount  equal to the moneys collected and
 deposited into that account in the previous fiscal year.
   3. A transfer from the general fund to the combined gifts, grants  and
 bequests  fund,  Alzheimer's  disease  research  and  assistance account
 (20143), up to an amount equal to the  moneys  collected  and  deposited
 into that account in the previous fiscal year.
   4.  $33,134,000  from the HCRA resources fund (20800) to the miscella-
 neous special revenue fund, empire state stem cell  trust  fund  account
 (22161).
   5. $6,000,000 from the miscellaneous special revenue fund, certificate
 of  need  account  (21920),  to the miscellaneous capital projects fund,
 healthcare IT capital subfund (32216).
   6. $2,000,000 from  the  miscellaneous  special  revenue  fund,  vital
 health  records  account  (22103), to the miscellaneous capital projects
 fund, healthcare IT capital subfund (32216).

 S. 7509--C                         93                         A. 9509--C
 
   7. $2,000,000 from the miscellaneous  special  revenue  fund,  profes-
 sional  medical  conduct  account  (22088), to the miscellaneous capital
 projects fund, healthcare IT capital subfund (32216).
   8.  $91,304,000  from  the  HCRA resources fund (20800) to the capital
 projects fund (30000).
   9. $6,550,000 from the general fund to  the  medical  marihuana  trust
 fund, health operation and oversight account (23755).
   10.  $1,086,000  from  the miscellaneous special revenue fund, certif-
 icate of need account (21920), to the general fund.
   Labor:
   1. $400,000 from the miscellaneous special revenue fund, DOL  fee  and
 penalty account (21923), to the child performer's protection fund, child
 performer protection account (20401).
   2.  $11,700,000  from  the unemployment insurance interest and penalty
 fund,  unemployment  insurance  special  interest  and  penalty  account
 (23601), to the general fund.
   3.  $5,000,000  from  the miscellaneous special revenue fund, workers'
 compensation account (21995), to  the  training  and  education  program
 occupation  safety  and health fund, OSHA-training and education account
 (21251) and occupational health inspection account (21252).
   Mental Hygiene:
   1. $10,000,000 from the general fund,  to  the  miscellaneous  special
 revenue fund, federal salary sharing account (22056).
   2.  $1,800,000,000  from the general fund to the miscellaneous special
 revenue fund, mental hygiene patient income account (21909).
   3. $2,200,000,000 from the general fund to the  miscellaneous  special
 revenue fund, mental hygiene program fund account (21907).
   4.  $100,000,000  from  the miscellaneous special revenue fund, mental
 hygiene program fund account (21907), to the general fund.
   5. $100,000,000 from the miscellaneous special  revenue  fund,  mental
 hygiene patient income account (21909), to the general fund.
   6.  $3,800,000 from the general fund, to the agencies internal service
 fund, civil service EHS occupational health program account (55056).
   7. $15,000,000 from the chemical dependence  service  fund,  substance
 abuse  services  fund  account  (22700),  to  the  capital projects fund
 (30000).
   8. $3,000,000 from the chemical  dependence  service  fund,  substance
 abuse  services  fund  account  (22700),  to  the mental hygiene capital
 improvement fund (32305).
   9. $3,000,000 from the chemical  dependence  service  fund,  substance
 abuse services fund account (22700), to the general fund.
   10. $1,500,000 from the New York state commercial gaming fund, problem
 gambling services account (23703), to the general fund.
   Public Protection:
   1.  $1,350,000  from the miscellaneous special revenue fund, emergency
 management account (21944), to the general fund.
   2. $2,087,000 from the  general  fund  to  the  miscellaneous  special
 revenue fund, recruitment incentive account (22171).
   3.  $20,773,000  from  the general fund to the correctional industries
 revolving  fund,  correctional  industries  internal   service   account
 (55350).
   4. $60,000,000 from any of the division of homeland security and emer-
 gency services special revenue federal funds to the general fund.
   5.  $8,600,000  from  the miscellaneous special revenue fund, criminal
 justice improvement account (21945), to the general fund.

 S. 7509--C                         94                         A. 9509--C
 
   6. $115,420,000 from the state police motor  vehicle  law  enforcement
 and  motor  vehicle  theft  and  insurance  fraud prevention fund, state
 police motor vehicle enforcement account (22802), to  the  general  fund
 for state operation expenses of the division of state police.
   7.  $118,500,000  from the general fund to the correctional facilities
 capital improvement fund (32350).
   8. $5,000,000 from the general  fund  to  the  dedicated  highway  and
 bridge trust fund (30050) for the purpose of work zone safety activities
 provided by the division of state police for the department of transpor-
 tation.
   9.  $10,000,000 from the miscellaneous special revenue fund, statewide
 public safety communications account (22123), to  the  capital  projects
 fund (30000).
   10.  $9,830,000  from  the  miscellaneous  special revenue fund, legal
 services assistance account (22096), to the general fund.
   11. $1,000,000 from the general fund to the agencies internal  service
 fund, neighborhood work project account (55059).
   12.  $7,980,000  from  the miscellaneous special revenue fund, finger-
 print identification & technology account (21950), to the general fund.
   13. $1,100,000 from the state police motor vehicle law enforcement and
 motor vehicle theft and insurance fraud prevention fund,  motor  vehicle
 theft and insurance fraud account (22801), to the general fund.
   Transportation:
   1. $17,672,000 from the federal miscellaneous operating grants fund to
 the  miscellaneous special revenue fund, New York Metropolitan Transpor-
 tation Council account (21913).
   2. $20,147,000 from the federal capital projects fund to the miscella-
 neous special revenue fund, New York Metropolitan Transportation Council
 account (21913).
   3. $15,181,992 from the general fund to the mass transportation  oper-
 ating  assistance  fund, public transportation systems operating assist-
 ance account (21401), of which $12,000,000 constitutes the base need for
 operations.
   4. $265,900,000 from the general fund to  the  dedicated  highway  and
 bridge trust fund (30050).
   5.  $244,250,000 from the general fund to the MTA financial assistance
 fund, mobility tax trust account (23651).
   6. $5,000,000 from the miscellaneous special revenue fund, transporta-
 tion regulation account (22067) to  the  dedicated  highway  and  bridge
 trust  fund  (30050),  for  disbursements  made from such fund for motor
 carrier safety that are in excess of the amounts deposited in the  dedi-
 cated highway and bridge trust fund (30050) for such purpose pursuant to
 section 94 of the transportation law.
   7.  $3,000,000  from  the  miscellaneous special revenue fund, traffic
 adjudication account (22055), to the general fund.
   8. $17,421,000 from the mass transportation operating assistance fund,
 metropolitan mass transportation operating assistance  account  (21402),
 to the capital projects fund (30000).
   9. $5,000,000 from the miscellaneous special revenue fund, transporta-
 tion  regulation  account (22067) to the general fund, for disbursements
 made from such fund for motor carrier safety that are in excess  of  the
 amounts  deposited  in  the  general  fund  for such purpose pursuant to
 section 94 of the transportation law.
   Miscellaneous:
   1. $250,000,000 from the general fund to any funds or accounts for the
 purpose of reimbursing certain outstanding accounts receivable balances.

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   2. $500,000,000 from the general fund to the  debt  reduction  reserve
 fund (40000).
   3.  $450,000,000  from  the New York state storm recovery capital fund
 (33000) to the revenue bond tax fund (40152).
   4. $18,550,000 from the general fund, community  projects  account  GG
 (10256), to the general fund, state purposes account (10050).
   5.  $100,000,000  from any special revenue federal fund to the general
 fund, state purposes account (10050).
   § 3. Notwithstanding any law to the contrary, and in  accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, on or before March 31, 2019:
   1.  Upon request of the commissioner of environmental conservation, up
 to $12,531,400 from revenues credited to any of the department of  envi-
 ronmental  conservation special revenue funds, including $4,000,000 from
 the environmental protection and oil spill  compensation  fund  (21200),
 and  $1,819,600 from the conservation fund (21150), to the environmental
 conservation special revenue fund, indirect charges account (21060).
   2. Upon request of the commissioner of agriculture and markets, up  to
 $3,000,000  from  any special revenue fund or enterprise fund within the
 department of agriculture and markets to the general fund, to pay appro-
 priate administrative expenses.
   3. Upon request of the commissioner of agriculture and markets, up  to
 $2,000,000  from  the state exposition special fund, state fair receipts
 account (50051) to the miscellaneous capital projects fund,  state  fair
 capital improvement account (32208).
   4.  Upon  request  of  the commissioner of the division of housing and
 community renewal, up to $6,221,000 from revenues credited to any  divi-
 sion  of  housing and community renewal federal or miscellaneous special
 revenue fund to the miscellaneous special revenue fund, housing indirect
 cost recovery account (22090).
   5. Upon request of the commissioner of the  division  of  housing  and
 community  renewal, up to $5,500,000 may be transferred from any miscel-
 laneous special revenue  fund  account,  to  any  miscellaneous  special
 revenue fund.
   6.  Upon  request  of the commissioner of health up to $8,500,000 from
 revenues credited to any of the department of health's  special  revenue
 funds, to the miscellaneous special revenue fund, administration account
 (21982).
   § 4. On or before March 31, 2019, the comptroller is hereby authorized
 and  directed  to  deposit  earnings  that would otherwise accrue to the
 general fund that are attributable to the operation of section  98-a  of
 the  state  finance  law, to the agencies internal service fund, banking
 services account (55057), for the purpose  of  meeting  direct  payments
 from such account.
   §  5.  Notwithstanding  any law to the contrary, upon the direction of
 the director of the budget and upon requisition by the state  university
 of  New  York,  the  dormitory  authority  of  the  state of New York is
 directed to transfer, up to $22,000,000 in revenues generated  from  the
 sale of notes or bonds, the state university income fund general revenue
 account  (22653)  for  reimbursement  of  bondable equipment for further
 transfer to the state's general fund.
   § 6. Notwithstanding any law to the contrary, and in  accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the director of the budget and
 upon  consultation  with  the  state university chancellor or his or her
 designee, on or before March 31, 2019, up to $16,000,000 from the  state

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 university  income  fund  general  revenue  account (22653) to the state
 general fund for debt service costs related to campus supported  capital
 project  costs  for  the  NY-SUNY  2020  challenge  grant program at the
 University at Buffalo.
   §  7.  Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the director of the budget and
 upon consultation with the state university chancellor  or  his  or  her
 designee,  on  or before March 31, 2019, up to $6,500,000 from the state
 university income fund general revenue  account  (22653)  to  the  state
 general  fund for debt service costs related to campus supported capital
 project costs for the  NY-SUNY  2020  challenge  grant  program  at  the
 University at Albany.
   §  8.  Notwithstanding  any  law to the contrary, the state university
 chancellor or his or her designee is authorized and directed to transfer
 estimated tuition revenue balances from the state university  collection
 fund  (61000)  to  the  state  university  income fund, state university
 general revenue offset account (22655) on or before March 31, 2019.
   § 9. Notwithstanding any law to the contrary, and in  accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the director of the budget, up
 to  $1,018,312,300  from the general fund to the state university income
 fund, state university general revenue offset account (22655) during the
 period of July 1, 2018 through June 30, 2019 to  support  operations  at
 the state university.
   §  10. Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state financial law, the comptroller is hereby  author-
 ized and directed to transfer, upon request of the director of the budg-
 et,  up  to  $20,000,000  from  the general fund to the state university
 income fund, state university general  revenue  offset  account  (22655)
 during the period of July 1, 2018 to June 30, 2019 to support operations
 at  the  state  university  in accordance with the maintenance of effort
 pursuant to clause (v) of subparagraph (4) of paragraph h of subdivision
 2 of section 355 of the education law.
   § 11. Notwithstanding any law to the contrary, and in accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and  directed to transfer, upon request of the state university chancel-
 lor or his or her designee, up to $55,000,000 from the state  university
 income  fund,  state  university  hospitals  income reimbursable account
 (22656), for services and expenses of hospital  operations  and  capital
 expenditures at the state university hospitals; and the state university
 income  fund,  Long  Island  veterans' home account (22652) to the state
 university capital projects fund (32400) on or before June 30, 2019.
   § 12. Notwithstanding any law to the contrary, and in accordance  with
 section  4 of the state finance law, the comptroller, after consultation
 with the state university chancellor or his or her designee,  is  hereby
 authorized  and directed to transfer moneys, in the first instance, from
 the state university collection fund, Stony  Brook  hospital  collection
 account (61006), Brooklyn hospital collection account (61007), and Syra-
 cuse  hospital collection account (61008) to the state university income
 fund, state university hospitals income reimbursable account (22656)  in
 the  event  insufficient  funds  are  available  in the state university
 income fund, state  university  hospitals  income  reimbursable  account
 (22656)  to  permit the full transfer of moneys authorized for transfer,
 to the general fund for payment of debt  service  related  to  the  SUNY
 hospitals.  Notwithstanding  any law to the contrary, the comptroller is

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 also hereby authorized and directed, after consultation with  the  state
 university  chancellor  or  his or her designee, to transfer moneys from
 the state university income fund to the state  university  income  fund,
 state  university  hospitals  income reimbursable account (22656) in the
 event insufficient funds are available in the  state  university  income
 fund,  state university hospitals income reimbursable account (22656) to
 pay hospital operating costs or to permit the full  transfer  of  moneys
 authorized for transfer, to the general fund for payment of debt service
 related to the SUNY hospitals on or before March 31, 2019.
   §  13.  Notwithstanding any law to the contrary, upon the direction of
 the director of the budget and the chancellor of the state university of
 New York or his or her designee, and in accordance with section 4 of the
 state finance law, the comptroller is hereby authorized and directed  to
 transfer  monies from the state university dormitory income fund (40350)
 to the state university residence hall rehabilitation fund (30100),  and
 from  the state university residence hall rehabilitation fund (30100) to
 the state university dormitory income fund (40350), in an amount not  to
 exceed $80 million from each fund.
   §  14. Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer monies, upon request of  the  director  of  the
 budget,  on  or  before March 31, 2019, from and to any of the following
 accounts: the miscellaneous special revenue fund, patient income account
 (21909), the miscellaneous special revenue fund, mental hygiene  program
 fund  account  (21907),  the miscellaneous special revenue fund, federal
 salary sharing account (22056), or the general fund in any  combination,
 the aggregate of which shall not exceed $350 million.
   §  15.  Subdivision  5  of  section  97-f of the state finance law, as
 amended by chapter 18 of the  laws  of  2003,  is  amended  to  read  as
 follows:
   5. The comptroller shall from time to time, but in no event later than
 the  fifteenth  day  of  each  month, pay over for deposit in the mental
 hygiene [patient income]  GENERAL  FUND  STATE  OPERATIONS  account  all
 moneys  in  the  mental  health services fund in excess of the amount of
 money required to be maintained on deposit in the mental health services
 fund. The amount required to be maintained in such  fund  shall  be  (i)
 twenty  percent of the amount of the next payment coming due relating to
 the mental health services  facilities  improvement  program  under  any
 agreement  between  the  facilities  development corporation and the New
 York state medical care facilities  finance  agency  multiplied  by  the
 number  of months from the date of the last such payment with respect to
 payments under any such agreement required  to  be  made  semi-annually,
 plus  (ii) those amounts specified in any such agreement with respect to
 payments required to be made other  than  semi-annually,  including  for
 variable  rate  bonds,  interest  rate exchange or similar agreements or
 other financing arrangements permitted by law. Prior to making any  such
 payment,  the  comptroller shall make and deliver to the director of the
 budget and the chairmen of the facilities  development  corporation  and
 the New York state medical care facilities finance agency, a certificate
 stating  the  aggregate amount to be maintained on deposit in the mental
 health services fund to comply in  full  with  the  provisions  of  this
 subdivision.
   §  16. Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, at the request of the director of the  budget,
 up  to $650 million from the unencumbered balance of any special revenue

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 fund or account, agency  fund  or  account,  internal  service  fund  or
 account,  enterprise  fund  or account, or any combination of such funds
 and accounts, to the general fund. The amounts transferred  pursuant  to
 this authorization shall be in addition to any other transfers expressly
 authorized  in  the  2018-19  budget. Transfers from federal funds, debt
 service funds, capital projects funds, the community projects  fund,  or
 funds  that would result in the loss of eligibility for federal benefits
 or federal funds pursuant to federal law, rule, or regulation as assent-
 ed to in chapter 683 of the laws of 1938 and chapter 700 of the laws  of
 1951 are not permitted pursuant to this authorization.
   §  17. Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, at the request of the director of the  budget,
 up  to $100 million from any non-general fund or account, or combination
 of funds and accounts, to the miscellaneous special revenue fund,  tech-
 nology  financing  account  (22207),  the miscellaneous capital projects
 fund, information technology capital financing account (32215),  or  the
 centralized  technology  services  account  (55069),  for the purpose of
 consolidating technology procurement and services.  The  amounts  trans-
 ferred  to  the miscellaneous special revenue fund, technology financing
 account (22207) pursuant to this authorization shall be equal to or less
 than the amount of such monies intended to support information technolo-
 gy costs which are attributable, according to a plan,  to  such  account
 made in pursuance to an appropriation by law. Transfers to the technolo-
 gy  financing  account shall be completed from amounts collected by non-
 general funds or accounts pursuant to a fund deposit schedule or  perma-
 nent  statute,  and  shall  be  transferred  to the technology financing
 account pursuant to a  schedule  agreed  upon  by  the  affected  agency
 commissioner.  Transfers  from  funds  that  would result in the loss of
 eligibility for federal benefits or federal funds  pursuant  to  federal
 law,  rule,  or  regulation as assented to in chapter 683 of the laws of
 1938 and chapter 700 of the laws of 1951 are not permitted  pursuant  to
 this authorization.
   §  18.  Notwithstanding  any  other  law  to  the contrary, up to $145
 million of the assessment reserves remitted to the chair of the workers'
 compensation board pursuant to subdivision 6 of section 151 of the work-
 ers' compensation law shall, at the request of the director of the budg-
 et, be transferred to the state insurance fund, for partial payment  and
 partial  satisfaction  of the state's obligations to the state insurance
 fund under section 88-c of the workers' compensation law.
   § 19. Notwithstanding any law to the contrary, and in accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and  directed to transfer, at the request of the director of the budget,
 up to $400 million from any non-general fund or account, or  combination
 of  funds  and  accounts, to the general fund for the purpose of consol-
 idating technology procurement and  services.  The  amounts  transferred
 pursuant to this authorization shall be equal to or less than the amount
 of  such  monies  intended to support information technology costs which
 are attributable, according to a plan, to such account made in pursuance
 to an appropriation by law. Transfers  to  the  general  fund  shall  be
 completed from amounts collected by non-general funds or accounts pursu-
 ant  to a fund deposit schedule.  Transfers from funds that would result
 in the loss of eligibility for federal benefits or federal funds  pursu-
 ant to federal law, rule, or regulation as assented to in chapter 683 of
 the  laws  of 1938 and chapter 700 of the laws of 1951 are not permitted
 pursuant to this authorization.

 S. 7509--C                         99                         A. 9509--C
 
   § 20. Notwithstanding any provision of law to the contrary, as  deemed
 feasible and advisable by its trustees, the power authority of the state
 of New York is authorized and directed to transfer to the state treasury
 to  the credit of the general fund $20,000,000 for the state fiscal year
 commencing  April  1,  2018,  the  proceeds of which will be utilized to
 support energy-related state activities.
   § 21. Notwithstanding any provision of law, rule or regulation to  the
 contrary,  the  New York state energy research and development authority
 is authorized and directed to make the following  contributions  to  the
 state  treasury to the credit of the general fund on or before March 31,
 2019: (a) $913,000; and (b) $23,000,000 from proceeds collected  by  the
 authority from the auction or sale of carbon dioxide emission allowances
 allocated by the department of environmental conservation.
   §  22.  Subdivision  5  of section 97-rrr of the state finance law, as
 amended by section 21 of part XXX of chapter 59 of the laws of 2017,  is
 amended to read as follows:
   5. Notwithstanding the provisions of section one hundred seventy-one-a
 of  the  tax law, as separately amended by chapters four hundred eighty-
 one and four hundred eighty-four of the laws of nineteen hundred  eight-
 y-one,  and notwithstanding the provisions of chapter ninety-four of the
 laws of two thousand eleven, or any  other  provisions  of  law  to  the
 contrary,  during  the  fiscal  year beginning April first, two thousand
 [seventeen] EIGHTEEN, the state comptroller  is  hereby  authorized  and
 directed  to  deposit  to the fund created pursuant to this section from
 amounts collected pursuant to article twenty-two  of  the  tax  law  and
 pursuant  to  a  schedule submitted by the director of the budget, up to
 [$2,679,997,000] $2,458,909,000, as may be certified in such schedule as
 necessary to meet the purposes of such fund for the fiscal  year  begin-
 ning April first, two thousand [seventeen] EIGHTEEN.
   §  23.  Notwithstanding  any  law  to the contrary, the comptroller is
 hereby authorized and directed to transfer, upon request of the director
 of the budget, on or before March 31, 2019, the following  amounts  from
 the  following  special  revenue  accounts  to the capital projects fund
 (30000), for the purposes of reimbursement to  such  fund  for  expenses
 related to the maintenance and preservation of state assets:
   1. $43,000 from the miscellaneous special revenue fund, administrative
 program account (21982).
   2. $1,478,000 from the miscellaneous special revenue fund, helen hayes
 hospital account (22140).
   3. $366,000 from the miscellaneous special revenue fund, New York city
 veterans' home account (22141).
   4.  $513,000  from  the  miscellaneous  special revenue fund, New York
 state home for veterans' and their dependents at oxford account (22142).
   5. $159,000 from the miscellaneous special revenue fund,  western  New
 York veterans' home account (22143).
   6.  $323,000  from  the  miscellaneous  special revenue fund, New York
 state for veterans in the lower-hudson valley account (22144).
   7. $2,550,000 from the  miscellaneous  special  revenue  fund,  patron
 services account (22163).
   8.  $830,000  from the miscellaneous special revenue fund, long island
 veterans' home account (22652).
   9. $5,379,000 from  the  miscellaneous  special  revenue  fund,  state
 university general income reimbursable account (22653).
   10.  $112,556,000  from  the miscellaneous special revenue fund, state
 university revenue offset account (22655).

 S. 7509--C                         100                        A. 9509--C
 
   11. $557,000  from  the  miscellaneous  special  revenue  fund,  state
 university of New York tuition reimbursement account (22659).
   12. $41,930,000 from the state university dormitory income fund, state
 university dormitory income fund (40350).
   13. $1,000,000 from the miscellaneous special revenue fund, litigation
 settlement and civil recovery account (22117).
   § 24. Intentionally omitted
   §  25. Subdivision 6 of section 4 of the state finance law, as amended
 by section 24 of part UU of chapter 54 of the laws of 2016,  is  amended
 to read as follows:
   6.  Notwithstanding  any  law to the contrary, at the beginning of the
 state fiscal year,  the  state  comptroller  is  hereby  authorized  and
 directed  to  receive  for  deposit  to  the  credit of a fund and/or an
 account such monies as are identified by the director of the  budget  as
 having been intended for such deposit to support disbursements from such
 fund  and/or  account  made  in pursuance of an appropriation by law. As
 soon as practicable upon enactment of the budget, the  director  of  the
 budget  shall,  but  not  less  than  three  days  following preliminary
 submission to the chairs of the senate finance committee and the  assem-
 bly  ways  and means committee, file with the state comptroller an iden-
 tification of specific monies to be so deposited. Any subsequent  change
 regarding  the  monies to be so deposited shall be filed by the director
 of the budget, as soon as practicable, but  not  less  than  three  days
 following  preliminary  submission  to  the chairs of the senate finance
 committee and the assembly ways and means committee.
   All monies identified by the director of the budget to be deposited to
 the credit of a fund and/or account shall be consistent with the  intent
 of  the  budget for the then current state fiscal year as enacted by the
 legislature.
   The provisions of this subdivision shall expire on March thirty-first,
 two thousand [eighteen] TWENTY.
   § 26. Subdivision 4 of section 40 of the state finance law, as amended
 by section 25 of part UU of chapter 54 of the laws of 2016,  is  amended
 to read as follows:
   4.  Every appropriation made from a fund or account to a department or
 agency shall be available for the payment of prior years' liabilities in
 such fund or account for fringe benefits, indirect costs, and telecommu-
 nications expenses and expenses  for  other  centralized  services  fund
 programs  without limit. Every appropriation shall also be available for
 the payment of prior  years'  liabilities  other  than  those  indicated
 above,  but  only  to the extent of one-half of one percent of the total
 amount appropriated to a department or agency in such fund or account.
   The provisions of this subdivision shall  expire  March  thirty-first,
 two thousand [eighteen] TWENTY.
   §  27.  Notwithstanding  any  provision of law to the contrary, in the
 event that federal  legislation,  federal  regulatory  actions,  federal
 executive  actions  or  federal  judicial actions in federal fiscal year
 2019 reduce federal financial participation in Medicaid funding  to  New
 York  state  or its subdivisions by $850 million or more in state fiscal
 years 2018-19 or 2019-20, the director of the  division  of  the  budget
 shall  notify  the  temporary president of the senate and the speaker of
 the assembly in writing that the federal actions  will  reduce  expected
 funding  to  New  York state. The director of the division of the budget
 shall prepare a plan that shall be submitted to the  legislature,  which
 shall (a) specify the total amount of the reduction in federal financial
 participation  in Medicaid, (b) itemize the specific programs and activ-

 S. 7509--C                         101                        A. 9509--C
 
 ities that will be  affected  by  the  reduction  in  federal  financial
 participation  in  Medicaid, and (c) identify the general fund and state
 special revenue fund appropriations and related disbursements that shall
 be  reduced,  and  in  what  program areas, provided, however, that such
 reductions to appropriations and disbursements shall be applied  equally
 and  proportionally to the programs affected by the reduction in federal
 financial participation in Medicaid. Upon such submission, the  legisla-
 ture  shall have 90 days after such submission to either prepare its own
 plan, which may be adopted by concurrent resolution passed by both hous-
 es, or if after 90 days the legislature fails to adopt their  own  plan,
 the reductions to the general fund and state special revenue fund appro-
 priations  and  related  disbursements identified in the division of the
 budget plan will go into effect automatically.
   § 28. Notwithstanding any provision of law to  the  contrary,  in  the
 event  that  federal  legislation,  federal  regulatory actions, federal
 executive actions or federal judicial actions  in  federal  fiscal  year
 2019  reduce  federal  financial  participation  or other federal aid in
 funding to New York state that affects the state operating funds  finan-
 cial  plan  by  $850  million  or  more in state fiscal years 2018-19 or
 2019-20, exclusive of any cuts to Medicaid, the director of the division
 of the budget shall notify the temporary president of the senate and the
 speaker of the assembly in writing that the federal actions will  reduce
 expected  funding to New York state. The director of the division of the
 budget shall prepare a plan that shall be submitted to the  legislature,
 which  shall  (a)  specify  the total amount of the reduction in federal
 aid, (b) itemize the specific  programs  and  activities  that  will  be
 affected by the federal reductions, exclusive of Medicaid, and (c) iden-
 tify  the general fund and state special revenue fund appropriations and
 related disbursements that shall be reduced, and in what program  areas,
 provided,  however, that such reductions to appropriations and disburse-
 ments shall be applied equally and proportionally. Upon such submission,
 the legislature shall have 90  days  after  such  submission  to  either
 prepare  its  own  plan,  which  may be adopted by concurrent resolution
 passed by both houses, or if after 90  days  the  legislature  fails  to
 adopt  their  own  plan,  the  reductions  to the general fund and state
 special revenue fund appropriations and related disbursements identified
 in the division of the budget plan will go into effect automatically.
   § 28-a. Intentionally omitted.
   § 29. Subdivision 1 of section 8-b of the state finance law, as  added
 by chapter 169 of the laws of 1994, is amended to read as follows:
   1.  The comptroller is hereby authorized and directed to assess fringe
 benefit and central service agency indirect  costs  on  all  non-general
 funds,  AND  ON THE GENERAL FUND UPON REQUEST AND AT THE SOLE DISCRETION
 OF THE DIRECTOR OF THE BUDGET, and to  [bill]  CHARGE  such  assessments
 [on]  TO  such  funds. Such fringe benefit and indirect costs [billings]
 ASSESSMENTS shall be based on rates provided to the comptroller  by  the
 director  of  the budget.  Copies of such rates shall be provided to the
 legislative fiscal committees.
   § 30. Notwithstanding any  other  law,  rule,  or  regulation  to  the
 contrary, the state comptroller is hereby authorized and directed to use
 any  balance  remaining  in the mental health services fund debt service
 appropriation, after payment by the state comptroller of all obligations
 required pursuant to any lease, sublease, or other financing arrangement
 between the dormitory authority of the state of New York as successor to
 the New York state medical  care  facilities  finance  agency,  and  the
 facilities development corporation pursuant to chapter 83 of the laws of

 S. 7509--C                         102                        A. 9509--C
 
 1995  and  the  department  of  mental hygiene for the purpose of making
 payments to the dormitory authority of the state of  New  York  for  the
 amount  of  the  earnings  for the investment of monies deposited in the
 mental health services fund that such agency determines will or may have
 to  be  rebated  to the federal government pursuant to the provisions of
 the internal revenue code of 1986, as amended, in order to  enable  such
 agency  to  maintain  the  exemption from federal income taxation on the
 interest paid to the holders of such agency's mental services facilities
 improvement revenue bonds. Annually on or before each  June  30th,  such
 agency  shall  certify to the state comptroller its determination of the
 amounts received in the mental health services fund as a result  of  the
 investment  of  monies  deposited  therein  that  will or may have to be
 rebated to the federal government pursuant  to  the  provisions  of  the
 internal revenue code of 1986, as amended.
   §  31.  Subdivision 1 of section 47 of section 1 of chapter 174 of the
 laws of 1968, constituting the New York state urban  development  corpo-
 ration  act,  as  amended by section 24 of part XXX of chapter 59 of the
 laws of 2017, is amended to read as follows:
   1. Notwithstanding the provisions of any other law  to  the  contrary,
 the  dormitory  authority  and  the corporation are hereby authorized to
 issue bonds or notes in one or more series for the  purpose  of  funding
 project costs for the office of information technology services, depart-
 ment  of  law,  and  other  state  costs  associated  with  such capital
 projects. The aggregate principal  amount  of  bonds  authorized  to  be
 issued  pursuant  to  this  section shall not exceed [four hundred fifty
 million five hundred forty thousand dollars] FIVE HUNDRED FORTY  MILLION
 NINE HUNDRED FIFTY-FOUR THOUSAND DOLLARS, excluding bonds issued to fund
 one or more debt service reserve funds, to pay costs of issuance of such
 bonds, and bonds or notes issued to refund or otherwise repay such bonds
 or  notes  previously  issued.  Such  bonds  and  notes of the dormitory
 authority and the corporation shall not be a debt of the state, and  the
 state  shall not be liable thereon, nor shall they be payable out of any
 funds other than those  appropriated  by  the  state  to  the  dormitory
 authority  and  the  corporation  for  principal,  interest, and related
 expenses pursuant to a service contract and such bonds and  notes  shall
 contain  on  the  face  thereof  a  statement to such effect. Except for
 purposes of complying with  the  internal  revenue  code,  any  interest
 income earned on bond proceeds shall only be used to pay debt service on
 such bonds.
   § 32. Subdivision 1 of section 16 of part D of chapter 389 of the laws
 of  1997,  relating  to  the  financing  of  the correctional facilities
 improvement fund and the youth facility improvement fund, as amended  by
 section  25 of part XXX of chapter 59 of the laws of 2017, is amended to
 read as follows:
   1. Subject to the provisions of chapter 59 of the laws  of  2000,  but
 notwithstanding the provisions of section 18 of section 1 of chapter 174
 of the laws of 1968, the New York state urban development corporation is
 hereby  authorized  to  issue  bonds,  notes and other obligations in an
 aggregate principal amount not to exceed [seven]  EIGHT  billion  [seven
 hundred  forty-one]  EIGHTY-TWO  million [one] EIGHT hundred ninety-nine
 thousand dollars [$7,741,199,000] $8,082,899,000, and shall include  all
 bonds,  notes and other obligations issued pursuant to chapter 56 of the
 laws of 1983, as amended or supplemented. The proceeds  of  such  bonds,
 notes  or  other  obligations shall be paid to the state, for deposit in
 the correctional facilities capital improvement fund to pay for  all  or
 any  portion  of  the amount or amounts paid by the state from appropri-

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 ations or reappropriations made to the  department  of  corrections  and
 community  supervision from the correctional facilities capital improve-
 ment fund for capital projects. The aggregate amount of bonds, notes  or
 other obligations authorized to be issued pursuant to this section shall
 exclude  bonds, notes or other obligations issued to refund or otherwise
 repay bonds, notes or other obligations theretofore issued, the proceeds
 of which were paid to the state for all or  a  portion  of  the  amounts
 expended  by  the  state from appropriations or reappropriations made to
 the department  of  corrections  and  community  supervision;  provided,
 however,  that  upon any such refunding or repayment the total aggregate
 principal amount of outstanding bonds, notes or other obligations may be
 greater than [seven] EIGHT billion [seven hundred forty-one]  EIGHTY-TWO
 million    [one]    EIGHT    hundred    ninety-nine   thousand   dollars
 [$7,741,199,000] $8,082,899,000, only if the present value of the aggre-
 gate debt service of the refunding or repayment bonds,  notes  or  other
 obligations  to  be  issued  shall  not  exceed the present value of the
 aggregate debt service of the bonds, notes or other obligations so to be
 refunded or repaid. For the purposes hereof, the present  value  of  the
 aggregate  debt  service  of  the refunding or repayment bonds, notes or
 other obligations and of the aggregate debt service of the bonds,  notes
 or  other  obligations  so  refunded  or  repaid, shall be calculated by
 utilizing the effective interest rate  of  the  refunding  or  repayment
 bonds,  notes  or other obligations, which shall be that rate arrived at
 by doubling the semi-annual  interest  rate  (compounded  semi-annually)
 necessary  to  discount  the  debt  service payments on the refunding or
 repayment bonds, notes or other obligations from the payment dates ther-
 eof to the date of issue of the refunding or repayment bonds,  notes  or
 other  obligations  and  to  the  price  bid including estimated accrued
 interest or proceeds received by  the  corporation  including  estimated
 accrued interest from the sale thereof.
   §  33.  Paragraph  (a) of subdivision 2 of section 47-e of the private
 housing finance law, as amended by section 26 of part XXX of chapter  59
 of the laws of 2017, is amended to read as follows:
   (a) Subject to the provisions of chapter fifty-nine of the laws of two
 thousand,  in  order  to  enhance and encourage the promotion of housing
 programs and thereby achieve the stated purposes and objectives of  such
 housing  programs, the agency shall have the power and is hereby author-
 ized from time to time to issue negotiable  housing  program  bonds  and
 notes  in  such principal amount as shall be necessary to provide suffi-
 cient funds for the repayment of amounts disbursed (and  not  previously
 reimbursed)  pursuant  to law or any prior year making capital appropri-
 ations or reappropriations for the  purposes  of  the  housing  program;
 provided,  however, that the agency may issue such bonds and notes in an
 aggregate principal amount not  exceeding  $5,981,399,000  five  billion
 [three]  NINE  hundred  [eighty-four]  EIGHTY-ONE  million  [one]  THREE
 hundred ninety-nine thousand dollars, plus a principal amount  of  bonds
 issued to fund the debt service reserve fund in accordance with the debt
 service  reserve  fund requirement established by the agency and to fund
 any other reserves that the agency reasonably deems  necessary  for  the
 security  or  marketability of such bonds and to provide for the payment
 of  fees  and  other  charges  and  expenses,  including   underwriters'
 discount,  trustee  and  rating  agency  fees,  bond  insurance,  credit
 enhancement and liquidity enhancement related to the  issuance  of  such
 bonds  and  notes.  No  reserve  fund securing the housing program bonds
 shall be entitled or eligible to  receive  state  funds  apportioned  or
 appropriated to maintain or restore such reserve fund at or to a partic-

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 ular level, except to the extent of any deficiency resulting directly or
 indirectly  from a failure of the state to appropriate or pay the agreed
 amount under any of the contracts provided for in  subdivision  four  of
 this section.
   §  34.  Subdivision  (b)  of  section 11 of chapter 329 of the laws of
 1991, amending the state finance law and  other  laws  relating  to  the
 establishment of the dedicated highway and bridge trust fund, as amended
 by  section 27 of part XXX of chapter 59 of the laws of 2017, is amended
 to read as follows:
   (b) Any service contract or contracts for projects authorized pursuant
 to sections 10-c, 10-f, 10-g and 80-b of the  highway  law  and  section
 14-k of the transportation law, and entered into pursuant to subdivision
 (a)  of  this  section,  shall  provide for state commitments to provide
 annually to the thruway authority a sum or sums,  upon  such  terms  and
 conditions as shall be deemed appropriate by the director of the budget,
 to fund, or fund the debt service requirements of any bonds or any obli-
 gations  of  the  thruway  authority  issued to fund or to reimburse the
 state for  funding  such  projects  having  a  cost  not  in  excess  of
 [$9,699,586,000]  $10,251,939,000 cumulatively by the end of fiscal year
 [2017-18] 2018-19.
   § 35. Subdivision 1 of section 1689-i of the public  authorities  law,
 as  amended by section 28 of part XXX of chapter 59 of the laws of 2017,
 is amended to read as follows:
   1. The dormitory authority  is  authorized  to  issue  bonds,  at  the
 request  of  the  commissioner of education, to finance eligible library
 construction projects pursuant to section two hundred seventy-three-a of
 the education law, in amounts certified  by  such  commissioner  not  to
 exceed  a  total  principal  amount  of [one] TWO hundred [eighty-three]
 SEVENTEEN million dollars.
   § 36. Subdivision (a) of section 27 of part Y of  chapter  61  of  the
 laws  of  2005,  relating to providing for the administration of certain
 funds and accounts related  to  the  2005-2006  budget,  as  amended  by
 section  29 of part XXX of chapter 59 of the laws of 2017, is amended to
 read as follows:
   (a) Subject to the provisions of chapter 59 of the laws of  2000,  but
 notwithstanding  any provisions of law to the contrary, the urban devel-
 opment corporation is hereby authorized to issue bonds or notes  in  one
 or   more  series  in  an  aggregate  principal  amount  not  to  exceed
 [$173,600,000] $220,100,000 TWO HUNDRED TWENTY MILLION ONE HUNDRED THOU-
 SAND DOLLARS, excluding bonds issued to finance one or more debt service
 reserve funds, to pay costs of issuance of  such  bonds,  and  bonds  or
 notes issued to refund or otherwise repay such bonds or notes previously
 issued,  for  the  purpose  of  financing  capital projects including IT
 initiatives for the division of state police, debt service  and  leases;
 and to reimburse the state general fund for disbursements made therefor.
 Such  bonds  and  notes of such authorized issuer shall not be a debt of
 the state, and the state shall not be liable thereon, nor shall they  be
 payable  out  of any funds other than those appropriated by the state to
 such authorized issuer for debt service and related expenses pursuant to
 any service contract  executed  pursuant  to  subdivision  (b)  of  this
 section  and  such  bonds  and notes shall contain on the face thereof a
 statement to such effect. Except for  purposes  of  complying  with  the
 internal revenue code, any interest income earned on bond proceeds shall
 only be used to pay debt service on such bonds.
   §  37.  Section  44  of  section 1 of chapter 174 of the laws of 1968,
 constituting the New York state urban development  corporation  act,  as

 S. 7509--C                         105                        A. 9509--C
 
 amended  by section 30 of part XXX of chapter 59 of the laws of 2017, is
 amended to read as follows:
   §  44.  Issuance  of  certain  bonds  or notes. 1. Notwithstanding the
 provisions of any other law to the contrary, the dormitory authority and
 the corporation are hereby authorized to issue bonds or notes in one  or
 more  series  for  the purpose of funding project costs for the regional
 economic development council  initiative,  the  economic  transformation
 program,  state university of New York college for nanoscale and science
 engineering, projects within the city of Buffalo  or  surrounding  envi-
 rons,  the  New  York  works economic development fund, projects for the
 retention of professional football in western New York, the empire state
 economic development fund, the  clarkson-trudeau  partnership,  the  New
 York  genome  center, the cornell university college of veterinary medi-
 cine, the olympic  regional  development  authority,  projects  at  nano
 Utica,  onondaga  county  revitalization projects, Binghamton university
 school of pharmacy, New York power electronics manufacturing consortium,
 regional infrastructure projects,  HIGH  TECH  INNOVATION  AND  ECONOMIC
 DEVELOPMENT   INFRASTRUCTURE   PROGRAM,  high  technology  manufacturing
 projects in Chautauqua and Erie county, an industrial scale research and
 development facility in Clinton county,  upstate  revitalization  initi-
 ative  projects,  DOWNSTATE  REVITALIZATION  INITIATIVE, market New York
 projects, fairground buildings, equipment or facilities  used  to  house
 and  promote  agriculture,  the  state fair, the empire state trail, the
 moynihan station development project, the  Kingsbridge  armory  project,
 strategic  economic  development projects, the cultural, arts and public
 spaces fund, water infrastructure in the city  of  Auburn  and  town  of
 Owasco,  a  life  sciences laboratory public health initiative, not-for-
 profit pounds, shelters and humane societies, arts and cultural  facili-
 ties  improvement  program,  restore  New York's communities initiative,
 heavy  equipment,  economic  development  and  infrastructure  projects,
 ROOSEVELT ISLAND OPERATING CORPORATION CAPITAL PROJECTS, and other state
 costs  associated with such projects.  The aggregate principal amount of
 bonds authorized to be issued pursuant to this section shall not  exceed
 [six]  EIGHT  billion  [seven]  THREE hundred [eight] million [two] FIVE
 hundred [fifty-seven] NINETY thousand dollars, excluding bonds issued to
 fund one or more debt service reserve funds, to pay costs of issuance of
 such bonds, and bonds or notes issued to refund or otherwise repay  such
 bonds  or notes previously issued. Such bonds and notes of the dormitory
 authority and the corporation shall not be a debt of the state, and  the
 state  shall not be liable thereon, nor shall they be payable out of any
 funds other than those  appropriated  by  the  state  to  the  dormitory
 authority  and  the  corporation  for  principal,  interest, and related
 expenses pursuant to a service contract and such bonds and  notes  shall
 contain  on  the  face  thereof  a  statement to such effect. Except for
 purposes of complying with  the  internal  revenue  code,  any  interest
 income earned on bond proceeds shall only be used to pay debt service on
 such bonds.
   2.  Notwithstanding  any  other  provision  of law to the contrary, in
 order to assist the dormitory authority and the corporation in undertak-
 ing the financing for project costs for the regional  economic  develop-
 ment  council  initiative,  the  economic  transformation program, state
 university of New York college for nanoscale  and  science  engineering,
 projects  within  the  city  of Buffalo or surrounding environs, the New
 York works economic development fund,  projects  for  the  retention  of
 professional  football  in  western  New York, the empire state economic
 development fund, the clarkson-trudeau partnership, the New York  genome

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 center, the cornell university college of veterinary medicine, the olym-
 pic  regional  development  authority,  projects at nano Utica, onondaga
 county revitalization projects, Binghamton university school of  pharma-
 cy,  New  York  power  electronics  manufacturing  consortium,  regional
 infrastructure projects, NEW YORK STATE CAPITAL ASSISTANCE  PROGRAM  FOR
 TRANSPORTATION,  INFRASTRUCTURE,  AND  ECONOMIC  DEVELOPMENT,  HIGH TECH
 INNOVATION AND ECONOMIC DEVELOPMENT INFRASTRUCTURE PROGRAM,  high  tech-
 nology  manufacturing  projects in Chautauqua and Erie county, an indus-
 trial scale research and development facility in Clinton county, upstate
 revitalization initiative projects, DOWNSTATE REVITALIZATION INITIATIVE,
 market New York projects, fairground buildings, equipment or  facilities
 used  to house and promote agriculture, the state fair, the empire state
 trail, the moynihan station development project, the Kingsbridge  armory
 project, strategic economic development projects, the cultural, arts and
 public  spaces fund, water infrastructure in the city of Auburn and town
 of Owasco, a life sciences laboratory public health initiative, not-for-
 profit pounds, shelters and humane societies, arts and cultural  facili-
 ties  improvement  program,  restore  New York's communities initiative,
 heavy  equipment,  economic  development  and  infrastructure  projects,
 ROOSEVELT ISLAND OPERATING CORPORATION CAPITAL PROJECTS, and other state
 costs associated with such projects the director of the budget is hereby
 authorized to enter into one or more service contracts with the dormito-
 ry  authority  and  the  corporation,  none of which shall exceed thirty
 years in duration, upon such terms and conditions as the director of the
 budget and the dormitory authority and the corporation agree, so  as  to
 annually  provide to the dormitory authority and the corporation, in the
 aggregate, a sum not to exceed  the  principal,  interest,  and  related
 expenses required for such bonds and notes. Any service contract entered
 into  pursuant  to this section shall provide that the obligation of the
 state to pay the amount therein provided shall not constitute a debt  of
 the  state  within  the  meaning  of  any  constitutional  or  statutory
 provision and shall be deemed executory only to  the  extent  of  monies
 available  and  that  no liability shall be incurred by the state beyond
 the monies available for such purpose, subject to  annual  appropriation
 by the legislature. Any such contract or any payments made or to be made
 thereunder  may  be  assigned and pledged by the dormitory authority and
 the corporation as security for its bonds and notes,  as  authorized  by
 this section.
   §  37-a.  Subdivision  (a) of section 1 of part X of chapter 59 of the
 laws of 2004, authorizing the New York state  urban  development  corpo-
 ration  and  the  dormitory  authority of the state of New York to issue
 bonds or notes, as amended by section 53 of part BB of chapter 58 of the
 laws of 2011, is amended to read as follows:
   (a) Subject to the provisions of chapter 59 of the laws of  2000,  but
 notwithstanding any other provision of law to the contrary, the New York
 State  urban  development corporation and the dormitory authority of the
 state of New York are hereby authorized to issue bonds or notes  in  one
 or   more  series  in  an  aggregate  principal  amount  not  to  exceed
 [$243,325,000] $293,325,000 excluding bonds issued  to  finance  one  or
 more debt service reserve funds, to pay costs of issuance of such bonds,
 and  bonds  or  notes  issued to refund or otherwise repay such bonds or
 notes previously issued, for the purpose of financing projects  cost  of
 the  Empire Opportunity Fund; Rebuilding the Empire State Through Oppor-
 tunities in Regional Economies  (RESTORE)  New  York  Program;  and  the
 Community  Capital  Assistance  Program authorized pursuant to Part T of
 chapter 84 of the laws of 2002. Such bonds and notes of the  corporation

 S. 7509--C                         107                        A. 9509--C
 
 or  the  dormitory  authority  shall not be a debt of the state, and the
 state shall not be liable thereon, nor shall they be payable out of  any
 funds  other  than those appropriated by the state to the corporation or
 the  dormitory  authority for debt service and related expenses pursuant
 to any service contract executed pursuant to  subdivision  (b)  of  this
 section  and  such  bonds  and notes shall contain on the face thereof a
 statement to such effect.   Except for purposes of  complying  with  the
 internal revenue code, any interest income earned on bond proceeds shall
 only be used to pay debt service on such bonds. All of the provisions of
 the  New  York state urban development corporation act and the dormitory
 authority act relating to bonds and notes  which  are  not  inconsistent
 with  the  provisions of this section shall apply to obligations author-
 ized by this section, including but not limited to the power  to  estab-
 lish  adequate reserves therefor and to issue renewal notes or refunding
 bonds thereof. The issuance  of  any  bonds  or  notes  hereunder  shall
 further  be  subject  to the approval of the director of the division of
 the budget.
   § 38. Subdivision 3 of section 1285-p of the public  authorities  law,
 as  amended by section 31 of part XXX of chapter 59 of the laws of 2017,
 is amended to read as follows:
   3. The maximum amount of bonds that may be issued for the  purpose  of
 financing  environmental  infrastructure  projects  authorized  by  this
 section shall be [four] FIVE  billion  [nine]  ONE  hundred  [fifty-one]
 FORTY-SEVEN  million  [seven] TWO hundred sixty thousand dollars, exclu-
 sive of bonds issued to fund any debt service reserve funds,  pay  costs
 of issuance of such bonds, and bonds or notes issued to refund or other-
 wise repay bonds or notes previously issued. Such bonds and notes of the
 corporation shall not be a debt of the state, and the state shall not be
 liable  thereon,  nor  shall they be payable out of any funds other than
 those appropriated by the state to the corporation for debt service  and
 related  expenses pursuant to any service contracts executed pursuant to
 subdivision one of this section, and such bonds and notes shall  contain
 on the face thereof a statement to such effect.
   § 39. Intentionally omitted.
   §  40.  Subdivision  (a)  of section 48 of part K of chapter 81 of the
 laws of 2002, relating to providing for the  administration  of  certain
 funds  and  accounts  related  to  the  2002-2003  budget, as amended by
 section 33 of part XXX of chapter 59 of the laws of 2017, is amended  to
 read as follows:
   (a)  Subject  to  the provisions of chapter 59 of the laws of 2000 but
 notwithstanding the provisions of section 18 of  the  urban  development
 corporation  act, the corporation is hereby authorized to issue bonds or
 notes in one or more series in an  aggregate  principal  amount  not  to
 exceed   [$250,000,000]  $253,000,000  TWO-HUNDRED  FIFTY-THREE  MILLION
 DOLLARS excluding bonds issued to fund one or more debt service  reserve
 funds, to pay costs of issuance of such bonds, and bonds or notes issued
 to  refund or otherwise repay such bonds or notes previously issued, for
 the purpose of financing capital costs related to homeland security  and
 training  facilities  for  the division of state police, the division of
 military and naval affairs, and any other state  agency,  including  the
 reimbursement  of any disbursements made from the state capital projects
 fund, and is hereby authorized to issue bonds or notes in  one  or  more
 series  in  an  aggregate  principal amount not to exceed [$654,800,000]
 $748,800,000, SEVEN HUNDRED FORTY-EIGHT MILLION EIGHT  HUNDRED  THOUSAND
 DOLLARS, excluding bonds issued to fund one or more debt service reserve
 funds, to pay costs of issuance of such bonds, and bonds or notes issued

 S. 7509--C                         108                        A. 9509--C
 
 to  refund or otherwise repay such bonds or notes previously issued, for
 the purpose of financing improvements  to  State  office  buildings  and
 other  facilities  located statewide, including the reimbursement of any
 disbursements  made from the state capital projects fund. Such bonds and
 notes of the corporation shall not be a debt of the state, and the state
 shall not be liable thereon, nor shall they be payable out of any  funds
 other  than  those appropriated by the state to the corporation for debt
 service and related expenses pursuant to any service contracts  executed
 pursuant  to  subdivision  (b) of this section, and such bonds and notes
 shall contain on the face thereof a statement to such effect.
   § 41. Subdivision 1 of section 386-b of the public authorities law, as
 amended by section 34 of part XXX of chapter 59 of the laws of 2017,  is
 amended to read as follows:
   1.  Notwithstanding  any  other  provision of law to the contrary, the
 authority, the dormitory authority and the urban development corporation
 are hereby authorized to issue bonds or notes in one or more series  for
 the  purpose  of  financing  peace  bridge projects and capital costs of
 state and local highways, parkways, bridges, the New York state thruway,
 Indian reservation roads, and facilities, and transportation infrastruc-
 ture  projects  including  aviation  projects,  non-MTA   mass   transit
 projects,  and rail service preservation projects, including work appur-
 tenant and ancillary thereto. The aggregate principal  amount  of  bonds
 authorized  to  be issued pursuant to this section shall not exceed four
 billion   [three]   FIVE   hundred    [sixty-four]    million    dollars
 [$4,364,000,000]  $4,500,000,000,  excluding bonds issued to fund one or
 more debt service reserve funds, to pay costs of issuance of such bonds,
 and to refund or otherwise repay such bonds or notes previously  issued.
 Such  bonds  and notes of the authority, the dormitory authority and the
 urban development corporation shall not be a debt of the state, and  the
 state  shall not be liable thereon, nor shall they be payable out of any
 funds other than those appropriated by the state to the  authority,  the
 dormitory authority and the urban development corporation for principal,
 interest,  and  related expenses pursuant to a service contract and such
 bonds and notes shall contain on the face thereof a  statement  to  such
 effect. Except for purposes of complying with the internal revenue code,
 any  interest  income  earned on bond proceeds shall only be used to pay
 debt service on such bonds.
   § 42. Paragraph (c) of subdivision 19 of section 1680  of  the  public
 authorities  law,  as amended by section 35 of part XXX of chapter 59 of
 the laws of 2017, is amended to read as follows:
   (c) Subject to the provisions of chapter fifty-nine of the laws of two
 thousand, the dormitory authority shall not issue any  bonds  for  state
 university  educational  facilities  purposes if the principal amount of
 bonds to be issued when added to the aggregate principal amount of bonds
 issued by the dormitory authority on  and  after  July  first,  nineteen
 hundred  eighty-eight  for  state university educational facilities will
 exceed [twelve]  THIRTEEN  billion  [three]  ONE  hundred  [forty-three]
 SEVENTY-EIGHT   million   EIGHT   HUNDRED  SIXTY-FOUR  THOUSAND  dollars
 $13,178,864,000; provided, however, that bonds issued or  to  be  issued
 shall  be excluded from such limitation if: (1) such bonds are issued to
 refund  state  university  construction  bonds  and   state   university
 construction  notes  previously issued by the housing finance agency; or
 (2) such bonds are issued to refund bonds  of  the  authority  or  other
 obligations  issued for state university educational facilities purposes
 and the present value of the aggregate debt  service  on  the  refunding
 bonds does not exceed the present value of the aggregate debt service on

 S. 7509--C                         109                        A. 9509--C
 
 the bonds refunded thereby; provided, further that upon certification by
 the director of the budget that the issuance of refunding bonds or other
 obligations  issued between April first, nineteen hundred ninety-two and
 March  thirty-first,  nineteen  hundred  ninety-three will generate long
 term economic benefits to the state, as  assessed  on  a  present  value
 basis,  such  issuance will be deemed to have met the present value test
 noted above. For purposes of this subdivision, the present value of  the
 aggregate  debt  service  of  the refunding bonds and the aggregate debt
 service of the bonds refunded, shall be calculated by utilizing the true
 interest cost of the refunding bonds, which shall be that  rate  arrived
 at  by doubling the semi-annual interest rate (compounded semi-annually)
 necessary to discount the debt service payments on the  refunding  bonds
 from  the  payment  dates  thereof to the date of issue of the refunding
 bonds to the purchase price of the refunding bonds,  including  interest
 accrued  thereon  prior  to  the  issuance thereof. The maturity of such
 bonds, other than bonds issued to refund outstanding  bonds,  shall  not
 exceed  the  weighted  average  economic life, as certified by the state
 university construction fund, of the facilities in connection with which
 the bonds are issued, and in any case not  later  than  the  earlier  of
 thirty  years  or  the  expiration of the term of any lease, sublease or
 other agreement relating  thereto;  provided  that  no  note,  including
 renewals  thereof,  shall mature later than five years after the date of
 issuance of such note. The legislature reserves the right  to  amend  or
 repeal  such  limit, and the state of New York, the dormitory authority,
 the state university of New York, and the state university  construction
 fund are prohibited from covenanting or making any other agreements with
 or  for  the  benefit  of bondholders which might in any way affect such
 right.
   § 43. Paragraph (c) of subdivision 14 of section 1680  of  the  public
 authorities  law,  as amended by section 36 of part XXX of chapter 59 of
 the laws of 2017, is amended to read as follows:
   (c) Subject to the provisions of chapter fifty-nine of the laws of two
 thousand, (i) the dormitory authority shall  not  deliver  a  series  of
 bonds for city university community college facilities, except to refund
 or  to  be substituted for or in lieu of other bonds in relation to city
 university community college facilities pursuant to a resolution of  the
 dormitory  authority adopted before July first, nineteen hundred eighty-
 five or any resolution supplemental thereto, if the principal amount  of
 bonds  so  to  be  issued  when  added to all principal amounts of bonds
 previously issued by the dormitory authority for city university  commu-
 nity  college  facilities, except to refund or to be substituted in lieu
 of other bonds in relation to city university community college  facili-
 ties will exceed the sum of four hundred twenty-five million dollars and
 (ii)  the dormitory authority shall not deliver a series of bonds issued
 for city university facilities, including community college  facilities,
 pursuant  to a resolution of the dormitory authority adopted on or after
 July first, nineteen hundred eighty-five, except  to  refund  or  to  be
 substituted for or in lieu of other bonds in relation to city university
 facilities  and except for bonds issued pursuant to a resolution supple-
 mental to a resolution of the dormitory authority adopted prior to  July
 first, nineteen hundred eighty-five, if the principal amount of bonds so
 to  be  issued  when  added  to the principal amount of bonds previously
 issued pursuant to any such resolution, except bonds issued to refund or
 to be substituted for or in lieu of other  bonds  in  relation  to  city
 university  facilities,  will  exceed [seven] EIGHT billion [nine] THREE
 hundred [eighty-one] FOURTEEN million [nine] SIX  hundred  [sixty-eight]

 S. 7509--C                         110                        A. 9509--C
 
 NINETY-ONE  thousand  dollars $8,314,691,000.   The legislature reserves
 the right to amend or repeal such limit, and the state of New York,  the
 dormitory  authority,  the  city university, and the fund are prohibited
 from  covenanting or making any other agreements with or for the benefit
 of bondholders which might in any way affect such right.
   § 44. Subdivision 10-a of section 1680 of the public authorities  law,
 as  amended by section 37 of part XXX of chapter 59 of the laws of 2017,
 is amended to read as follows:
   10-a. Subject to the provisions of chapter fifty-nine of the  laws  of
 two  thousand, but notwithstanding any other provision of the law to the
 contrary, the maximum amount of bonds and notes to be issued after March
 thirty-first, two thousand two, on behalf of the state, in  relation  to
 any  locally  sponsored  community college, shall be nine hundred [four-
 teen] SIXTY-EIGHT million [five] FIVE hundred [ninety]  FORTY-TWO  thou-
 sand  dollars  $968,542,000. Such amount shall be exclusive of bonds and
 notes issued to fund any reserve fund or funds, costs of issuance and to
 refund any outstanding bonds and notes, issued on behalf of  the  state,
 relating to a locally sponsored community college.
   § 45. Subdivision 1 of section 17 of part D of chapter 389 of the laws
 of  1997,  relating  to  the  financing  of  the correctional facilities
 improvement fund and the youth facility improvement fund, as amended  by
 section  38 of part XXX of chapter 59 of the laws of 2017, is amended to
 read as follows:
   1. Subject to the provisions of chapter 59 of the laws  of  2000,  but
 notwithstanding the provisions of section 18 of section 1 of chapter 174
 of the laws of 1968, the New York state urban development corporation is
 hereby  authorized  to  issue  bonds,  notes and other obligations in an
 aggregate principal amount not to exceed [six]  SEVEN  hundred  [eighty-
 two]  SIXTY-NINE  million  [nine]  SIX  hundred fifteen thousand dollars
 [($682,915,000)]  ($769,615,000),  which  authorization  increases   the
 aggregate principal amount of bonds, notes and other obligations author-
 ized by section 40 of chapter 309 of the laws of 1996, and shall include
 all bonds, notes and other obligations issued pursuant to chapter 211 of
 the  laws  of  1990,  as  amended  or supplemented. The proceeds of such
 bonds, notes or other obligations shall be paid to the state, for depos-
 it in the youth facilities improvement fund,  to  pay  for  all  or  any
 portion  of  the amount or amounts paid by the state from appropriations
 or reappropriations made to the office of children and  family  services
 from  the  youth  facilities  improvement fund for capital projects. The
 aggregate amount of bonds, notes and other obligations authorized to  be
 issued  pursuant  to  this  section  shall exclude bonds, notes or other
 obligations issued to refund or otherwise repay bonds,  notes  or  other
 obligations  theretofore  issued, the proceeds of which were paid to the
 state for all or a portion of the amounts expended  by  the  state  from
 appropriations  or  reappropriations  made to the office of children and
 family services; provided, however, that  upon  any  such  refunding  or
 repayment  the  total  aggregate  principal amount of outstanding bonds,
 notes or other obligations may  be  greater  than  [six]  SEVEN  hundred
 [eighty-two]  SIXTY-NINE  million  [nine]  SIX  hundred fifteen thousand
 dollars [($682,915,000)] ($769,615,000), only if the  present  value  of
 the aggregate debt service of the refunding or repayment bonds, notes or
 other obligations to be issued shall not exceed the present value of the
 aggregate debt service of the bonds, notes or other obligations so to be
 refunded  or  repaid.  For the purposes hereof, the present value of the
 aggregate debt service of the refunding or  repayment  bonds,  notes  or
 other  obligations and of the aggregate debt service of the bonds, notes

 S. 7509--C                         111                        A. 9509--C
 
 or other obligations so refunded  or  repaid,  shall  be  calculated  by
 utilizing  the  effective  interest  rate  of the refunding or repayment
 bonds, notes or other obligations, which shall be that rate  arrived  at
 by  doubling  the  semi-annual  interest rate (compounded semi-annually)
 necessary to discount the debt service  payments  on  the  refunding  or
 repayment bonds, notes or other obligations from the payment dates ther-
 eof  to  the date of issue of the refunding or repayment bonds, notes or
 other obligations and to  the  price  bid  including  estimated  accrued
 interest  or  proceeds  received  by the corporation including estimated
 accrued interest from the sale thereof.
   § 46. Paragraph b of subdivision 2 of section  9-a  of  section  1  of
 chapter 392 of the laws of 1973, constituting the New York state medical
 care facilities finance agency act, as amended by section 39 of part XXX
 of chapter 59 of the laws of 2017, is amended to read as follows:
   b.  The  agency shall have power and is hereby authorized from time to
 time to issue negotiable bonds and notes in conformity  with  applicable
 provisions  of  the uniform commercial code in such principal amount as,
 in the opinion of the agency, shall  be  necessary,  after  taking  into
 account  other moneys which may be available for the purpose, to provide
 sufficient funds to  the  facilities  development  corporation,  or  any
 successor agency, for the financing or refinancing of or for the design,
 construction, acquisition, reconstruction, rehabilitation or improvement
 of  mental  health  services  facilities pursuant to paragraph a of this
 subdivision, the payment of interest on mental health services  improve-
 ment  bonds and mental health services improvement notes issued for such
 purposes, the establishment of reserves to secure such bonds and  notes,
 the  cost  or  premium  of  bond insurance or the costs of any financial
 mechanisms which may be used to reduce the debt service  that  would  be
 payable  by the agency on its mental health services facilities improve-
 ment bonds and notes and all other expenditures of the  agency  incident
 to  and  necessary or convenient to providing the facilities development
 corporation, or any successor agency, with funds for  the  financing  or
 refinancing of or for any such design, construction, acquisition, recon-
 struction, rehabilitation or improvement and for the refunding of mental
 hygiene improvement bonds issued pursuant to section 47-b of the private
 housing  finance law; provided, however, that the agency shall not issue
 mental health services facilities improvement bonds  and  mental  health
 services  facilities  improvement notes in an aggregate principal amount
 exceeding eight billion [three] SEVEN hundred [ninety-two] SEVENTY-EIGHT
 MILLION [eight] SEVEN hundred [fifteen] ELEVEN thousand dollars, exclud-
 ing mental health  services  facilities  improvement  bonds  and  mental
 health  services facilities improvement notes issued to refund outstand-
 ing mental health  services  facilities  improvement  bonds  and  mental
 health  services  facilities  improvement notes; provided, however, that
 upon any such refunding or repayment of mental health  services  facili-
 ties improvement bonds and/or mental health services facilities improve-
 ment  notes  the  total aggregate principal amount of outstanding mental
 health services facilities improvement bonds and mental  health  facili-
 ties  improvement  notes may be greater than eight billion [three] SEVEN
 hundred  [ninety-two]  SEVENTY-EIGHT  MILLION  [eight]   SEVEN   hundred
 [fifteen]  ELEVEN  thousand  dollars  $8,778,711,000  only if, except as
 hereinafter provided with respect to mental health  services  facilities
 bonds  and  mental  health  services  facilities  notes issued to refund
 mental hygiene improvement bonds authorized to be issued pursuant to the
 provisions of section 47-b of the private housing finance law, the pres-
 ent value of the aggregate debt service of the  refunding  or  repayment

 S. 7509--C                         112                        A. 9509--C
 
 bonds  to  be issued shall not exceed the present value of the aggregate
 debt service of the bonds to be refunded or repaid. For purposes hereof,
 the present values of the aggregate debt service  of  the  refunding  or
 repayment  bonds,  notes  or other obligations and of the aggregate debt
 service of the bonds, notes or other obligations so refunded or  repaid,
 shall  be  calculated  by  utilizing  the effective interest rate of the
 refunding or repayment bonds, notes or other obligations, which shall be
 that  rate  arrived  at  by  doubling  the  semi-annual  interest   rate
 (compounded  semi-annually)  necessary  to  discount  the  debt  service
 payments on the refunding or repayment bonds, notes or other obligations
 from the payment dates thereof to the date of issue of the refunding  or
 repayment bonds, notes or other obligations and to the price bid includ-
 ing  estimated  accrued  interest  or proceeds received by the authority
 including estimated accrued interest from the sale thereof. Such  bonds,
 other  than bonds issued to refund outstanding bonds, shall be scheduled
 to mature over a term not to exceed the average useful life,  as  certi-
 fied  by  the  facilities  development  corporation, of the projects for
 which the bonds are issued, and in any  case  shall  not  exceed  thirty
 years  and  the  maximum maturity of notes or any renewals thereof shall
 not exceed five years from the date of the original issue of such notes.
 Notwithstanding the provisions of this section, the  agency  shall  have
 the  power  and  is  hereby  authorized  to issue mental health services
 facilities improvement bonds and/or mental  health  services  facilities
 improvement notes to refund outstanding mental hygiene improvement bonds
 authorized  to  be  issued pursuant to the provisions of section 47-b of
 the private housing finance law  and  the  amount  of  bonds  issued  or
 outstanding  for  such  purposes  shall  not be included for purposes of
 determining the amount of bonds issued pursuant  to  this  section.  The
 director of the budget shall allocate the aggregate principal authorized
 to be issued by the agency among the office of mental health, office for
 people with developmental disabilities, and the office of alcoholism and
 substance  abuse services, in consultation with their respective commis-
 sioners to finance bondable appropriations previously  approved  by  the
 legislature.
   §  47.  Subdivision 1 of section 1680-r of the public authorities law,
 as amended by section 41 of part XXX of chapter 59 of the laws of  2017,
 is amended to read as follows:
   1.  Notwithstanding  the  provisions of any other law to the contrary,
 the dormitory authority and the urban development corporation are hereby
 authorized to issue bonds or notes in one or more series for the purpose
 of funding project costs for the capital restructuring financing program
 for health care and related facilities licensed pursuant to  the  public
 health  law  or  the mental hygiene law and other state costs associated
 with such capital projects,  the  health  care  facility  transformation
 programs,  and the essential health care provider program. The aggregate
 principal amount of bonds authorized  to  be  issued  pursuant  to  this
 section  shall  not  exceed  [two] THREE billion [seven hundred million]
 FIFTY MILLION dollars, excluding bonds issued to fund one or  more  debt
 service reserve funds, to pay costs of issuance of such bonds, and bonds
 or  notes issued to refund or otherwise repay such bonds or notes previ-
 ously issued. Such bonds and notes of the dormitory  authority  and  the
 urban  development corporation shall not be a debt of the state, and the
 state shall not be liable thereon, nor shall they be payable out of  any
 funds  other  than  those  appropriated  by  the  state to the dormitory
 authority and the urban development corporation for principal, interest,
 and related expenses pursuant to a service contract and such  bonds  and

 S. 7509--C                         113                        A. 9509--C
 
 notes  shall  contain  on  the  face thereof a statement to such effect.
 Except for purposes of complying with the  internal  revenue  code,  any
 interest  income  earned on bond proceeds shall only be used to pay debt
 service on such bonds.
   § 48. Intentionally omitted.
   §  49.  Subdivision  (a)  of section 28 of part Y of chapter 61 of the
 laws of 2005, relating to providing for the  administration  of  certain
 funds  and  accounts  related  to  the  2005-2006  budget, as amended by
 section 42-a of part XXX of chapter 59 of the laws of 2017,  is  amended
 to read as follows:
   (a)  Subject  to the provisions of chapter 59 of the laws of 2000, but
 notwithstanding any provisions of law  to  the  contrary,  one  or  more
 authorized  issuers  as defined by section 68-a of the state finance law
 are hereby authorized to issue bonds or notes in one or more  series  in
 an  aggregate  principal amount not to exceed [$47,000,000] $67,000,000,
 SIXTY-SEVEN MILLION DOLLARS excluding bonds issued  to  finance  one  or
 more debt service reserve funds, to pay costs of issuance of such bonds,
 and  bonds  or  notes  issued to refund or otherwise repay such bonds or
 notes previously issued, for the purpose of financing  capital  projects
 for  public  protection facilities in the Division of Military and Naval
 Affairs, debt service and leases; and to  reimburse  the  state  general
 fund  for  disbursements  made  therefor.  Such  bonds and notes of such
 authorized issuer shall not be a debt of the state, and the state  shall
 not  be liable thereon, nor shall they be payable out of any funds other
 than those appropriated by the state to such authorized issuer for  debt
 service  and  related expenses pursuant to any service contract executed
 pursuant to subdivision (b) of this section and  such  bonds  and  notes
 shall contain on the face thereof a statement to such effect. Except for
 purposes  of  complying  with  the  internal  revenue code, any interest
 income earned on bond proceeds shall only be used to pay debt service on
 such bonds.
   § 50. Subdivision 1 of section 49 of section 1 of chapter 174  of  the
 laws  of  1968, constituting the New York state urban development corpo-
 ration act, as amended by section 42-b of part XXX of chapter 59 of  the
 laws of 2017, is amended to read as follows:
   1.  Notwithstanding  the  provisions of any other law to the contrary,
 the dormitory authority and the corporation  are  hereby  authorized  to
 issue  bonds  or  notes in one or more series for the purpose of funding
 project costs for the state and municipal facilities program  and  other
 state costs associated with such capital projects. The aggregate princi-
 pal  amount  of  bonds  authorized to be issued pursuant to this section
 shall not exceed [one] TWO billion [nine]  THREE  hundred  [twenty-five]
 TWENTY-THREE  million  FIVE  HUNDRED  THOUSAND  dollars, excluding bonds
 issued to fund one or more debt service reserve funds, to pay  costs  of
 issuance of such bonds, and bonds or notes issued to refund or otherwise
 repay such bonds or notes previously issued. Such bonds and notes of the
 dormitory  authority  and  the  corporation  shall  not be a debt of the
 state, and the state shall not be liable  thereon,  nor  shall  they  be
 payable  out  of any funds other than those appropriated by the state to
 the dormitory authority and the corporation for principal, interest, and
 related expenses pursuant to a service contract and such bonds and notes
 shall contain on the face thereof a statement to such effect. Except for
 purposes of complying with  the  internal  revenue  code,  any  interest
 income earned on bond proceeds shall only be used to pay debt service on
 such bonds.
   § 51. Intentionally omitted.

 S. 7509--C                         114                        A. 9509--C
 
   § 52. Intentionally omitted.
   § 53. Intentionally omitted.
   § 54. Intentionally omitted.
   § 55. Intentionally omitted.
   § 56. Intentionally omitted.
   § 57. Intentionally omitted.
   § 58. Section 55 of chapter 59 of the laws of 2017 relating to provid-
 ing  for the administration of certain funds and accounts related to the
 2017-18 budget  and  authorizing  certain  payments  and  transfers,  is
 amended to read as follows:
   §  55.  This  act shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2017; provided,
 however, that the provisions of sections one, two,  three,  four,  five,
 six,  seven,  eight,  thirteen,  fourteen,  fifteen, sixteen, seventeen,
 eighteen, nineteen, twenty, [twenty-one,] twenty-two,  twenty-two-e  and
 twenty-two-f of this act shall expire March 31, 2018 when upon such date
 the  provisions of such sections shall be deemed repealed; and provided,
 further, that section twenty-two-c of this act shall  expire  March  31,
 2021.
   §  59.  Paragraph  (b) of subdivision 3 and clause (B) of subparagraph
 (iii) of paragraph (j) of subdivision 4 of section 1 of part D of  chap-
 ter 63 of the laws of 2005, relating to the composition and responsibil-
 ities  of  the  New  York  state higher education capital matching grant
 board, as amended by section 45 of part UU of chapter 54 of the laws  of
 2016, are amended to read as follows:
   (b)  Within amounts appropriated therefor, the board is hereby author-
 ized and directed to award matching capital grants  totaling  [240]  TWO
 HUNDRED  SEVENTY  million  dollars. Each college shall be eligible for a
 grant award amount as determined by the calculations pursuant to  subdi-
 vision  five of this section. In addition, such colleges shall be eligi-
 ble to compete for additional funds pursuant to paragraph (h) of  subdi-
 vision four of this section.
   (B)  The  dormitory authority shall not issue any bonds or notes in an
 amount in excess of [240] TWO HUNDRED SEVENTY million  dollars  for  the
 purposes of this section; excluding bonds or notes issued to fund one or
 more debt service reserve funds, to pay costs of issuance of such bonds,
 and  bonds  or  notes  issued to refund or otherwise repay such bonds or
 notes previously issued. Except  for  purposes  of  complying  with  the
 internal  revenue code, any interest on bond proceeds shall only be used
 to pay debt service on such bonds.
   § 60. Subdivision 1 of section 1680-n of the public  authorities  law,
 as  added  by section 46 of part T of chapter 57 of the laws of 2007, is
 amended to read as follows:
   1. Notwithstanding the provisions of any other law  to  the  contrary,
 the  authority  and the urban development corporation are hereby author-
 ized to issue bonds or notes in one or more series for  the  purpose  of
 funding  project  costs for the acquisition of state buildings and other
 facilities. The aggregate principal amount of  bonds  authorized  to  be
 issued  pursuant  to  this  section shall not exceed one hundred [forty]
 SIXTY-FIVE million dollars, excluding bonds issued to fund one  or  more
 debt  service reserve funds, to pay costs of issuance of such bonds, and
 bonds or notes issued to refund or otherwise repay such bonds  or  notes
 previously  issued.  Such bonds and notes of the authority and the urban
 development corporation shall not be a debt of the state, and the  state
 shall  not be liable thereon, nor shall they be payable out of any funds
 other than those appropriated by the state  to  the  authority  and  the

 S. 7509--C                         115                        A. 9509--C
 
 urban  development  corporation  for  principal,  interest,  and related
 expenses pursuant to a service contract and such bonds and  notes  shall
 contain  on  the  face  thereof  a  statement to such effect. Except for
 purposes  of  complying  with  the  internal  revenue code, any interest
 income earned on bond proceeds shall only be used to pay debt service on
 such bonds.
   § 61. Subdivision 1 of section 386-a of the public authorities law, as
 amended by section 46 of part I of chapter 60 of the laws  of  2015,  is
 amended to read as follows:
   1.  Notwithstanding  any  other  provision of law to the contrary, the
 authority, the dormitory authority and the urban development corporation
 are hereby authorized to issue bonds or notes in one or more series  for
 the  purpose  of  assisting the metropolitan transportation authority in
 the financing of transportation facilities  as  defined  in  subdivision
 seventeen  of  section  twelve  hundred  sixty-one  of this chapter. The
 aggregate principal amount of bonds authorized to be issued pursuant  to
 this  section  shall  not exceed one billion [five] SIX hundred [twenty]
 NINETY-FOUR million dollars [($1,520,000,000)] $1,694,000,000, excluding
 bonds issued to fund one or more debt  service  reserve  funds,  to  pay
 costs  of  issuance of such bonds, and to refund or otherwise repay such
 bonds or notes previously issued. Such bonds and notes of the authority,
 the dormitory authority and the urban development corporation shall  not
 be  a  debt of the state, and the state shall not be liable thereon, nor
 shall they be payable out of any funds other than those appropriated  by
 the state to the authority, the dormitory authority and the urban devel-
 opment  corporation for principal, interest, and related expenses pursu-
 ant to a service contract and such bonds and notes shall contain on  the
 face  thereof a statement to such effect. Except for purposes of comply-
 ing with the internal revenue code, any interest income earned  on  bond
 proceeds shall only be used to pay debt service on such bonds.
   §  62.  Subdivision 1 of section 1680-k of the public authorities law,
 as added by section 5 of part J-1 of chapter 109 of the laws of 2006, is
 amended to read as follows:
   1. Subject to the provisions of chapter fifty-nine of the laws of  two
 thousand, but notwithstanding any provisions of law to the contrary, the
 dormitory  authority is hereby authorized to issue bonds or notes in one
 or more series in an aggregate principal  amount  not  to  exceed  forty
 million SEVEN HUNDRED FIFTEEN THOUSAND dollars excluding bonds issued to
 finance one or more debt service reserve funds, to pay costs of issuance
 of  such  bonds,  and bonds or notes issued to refund or otherwise repay
 such bonds or notes previously issued, for the purpose of financing  the
 construction  of the New York state agriculture and markets food labora-
 tory. Eligible project costs may include, but not be limited to the cost
 of design, financing, site investigations, site acquisition and prepara-
 tion, demolition, construction, rehabilitation, acquisition of machinery
 and equipment, and infrastructure improvements. Such bonds and notes  of
 such  authorized issuers shall not be a debt of the state, and the state
 shall not be liable thereon, nor shall they be payable out of any  funds
 other  than  those  appropriated by the state to such authorized issuers
 for debt service and related expenses pursuant to any  service  contract
 executed  pursuant to subdivision two of this section and such bonds and
 notes shall contain on the face thereof  a  statement  to  such  effect.
 Except  for  purposes  of  complying with the internal revenue code, any
 interest income earned on bond proceeds shall only be used to  pay  debt
 service on such bonds.

 S. 7509--C                         116                        A. 9509--C
 
   § 63. Subdivision 13-d of section 5 of section 1 of chapter 359 of the
 laws  of  1968, constituting the facilities development corporation act,
 as amended by chapter 166 of the laws of 1991, is  amended  to  read  as
 follows:
   13-d.  1.  Subject to the terms and conditions of any lease, sublease,
 loan or other financing  agreement  with  the  medical  care  facilities
 finance  agency  in accordance with subdivision 13-c of this section, to
 make loans to voluntary agencies for the purpose of financing  or  refi-
 nancing the design, construction, acquisition, reconstruction, rehabili-
 tation  and  improvement of mental hygiene facilities owned or leased by
 such voluntary agencies provided, however, that  with  respect  to  such
 facilities which are leased by a voluntary agency, the term of repayment
 of  such  loan  shall  not  exceed  the term of such lease including any
 option to renew such lease. Notwithstanding any other provisions of law,
 such loans may be made jointly to one or more voluntary  agencies  which
 own  and  one  or  more  voluntary  agencies which will operate any such
 mental hygiene facility.
   2. SUBJECT TO THE TERMS AND CONDITIONS OF ANY LEASE, SUBLEASE, LOAN OR
 OTHER FINANCING AGREEMENT WITH THE MEDICAL CARE FACILITIES FINANCE AGEN-
 CY, TO MAKE GRANTS TO VOLUNTARY AGENCIES OR PROVIDE PROCEEDS  OF  MENTAL
 HEALTH  SERVICES  FACILITIES  BONDS  OR  NOTES TO THE DEPARTMENT TO MAKE
 GRANTS TO VOLUNTARY AGENCIES OR TO REIMBURSE DISBURSEMENTS  MADE  THERE-
 FOR,  IN  EACH  CASE,  FOR  THE  PURPOSE OF FINANCING OR REFINANCING THE
 DESIGN, CONSTRUCTION, ACQUISITION,  RECONSTRUCTION,  REHABILITATION  AND
 IMPROVEMENT  OF MENTAL HYGIENE FACILITIES OWNED OR LEASED BY SUCH VOLUN-
 TARY AGENCIES.
   § 64. Paragraph a of subdivision 4 of section 9 of section 1 of  chap-
 ter  359  of  the  laws of 1968, constituting the facilities development
 corporation act, as amended by chapter  90  of  the  laws  of  1989,  is
 amended to read as follows:
   a. Upon certification by the director of the budget of the availabili-
 ty  of required appropriation authority, the corporation, or any succes-
 sor agency, is hereby authorized and empowered  to  enter  into  leases,
 subleases,  loans  and other financing agreements with the state housing
 finance agency and/or the state medical care facilities finance  agency,
 and to enter into such amendments thereof as the directors of the corpo-
 ration,  or any successor agency, may deem necessary or desirable, which
 shall provide for (i) the financing or refinancing  of  or  the  design,
 construction, acquisition, reconstruction, rehabilitation or improvement
 of  one  or more mental hygiene facilities or for the refinancing of any
 such facilities for which bonds have  previously  been  issued  and  are
 outstanding,   and   the   purchase   or  acquisition  of  the  original
 furnishings, equipment, machinery and  apparatus  to  be  used  in  such
 facilities  upon  the  completion of work, (ii) the leasing to the state
 housing finance agency or the  state  medical  care  facilities  finance
 agency  of  all  or  any  portion of one or more existing mental hygiene
 facilities and one or more mental hygiene  facilities  to  be  designed,
 constructed,  acquired,  reconstructed, rehabilitated or improved, or of
 real property related to the work to be done,  including  real  property
 originally  acquired  by the appropriate commissioner or director of the
 department in the name of the state pursuant to article  seventy-one  of
 the  mental  hygiene  law,  (iii)  the subleasing of such facilities and
 property by the corporation upon  completion  of  design,  construction,
 acquisition, reconstruction, rehabilitation or improvement, such leases,
 subleases,  loans  or  other  financing agreements to be upon such other
 terms and conditions as may be agreed upon, including terms  and  condi-

 S. 7509--C                         117                        A. 9509--C
 
 tions  relating  to  length  of  term,  maintenance and repair of mental
 hygiene facilities during any such term, and the annual  rentals  to  be
 paid  for  the use of such facilities, property, furnishings, equipment,
 machinery and apparatus, and (iv) the receipt and disposition, including
 loans  OR  GRANTS  to  voluntary  agencies, of proceeds of mental health
 service facilities bonds or notes issued pursuant to section  nine-a  of
 the  New  York  state  medical  care  facilities finance agency act. For
 purposes of the design, construction, acquisition, reconstruction, reha-
 bilitation or improvement work required by the terms of any such  lease,
 sublease  or agreement, the corporation shall act as agent for the state
 housing finance agency or the  state  medical  care  facilities  finance
 agency.  In  the event that the corporation enters into an agreement for
 the financing of any of the aforementioned  facilities  with  the  state
 housing  finance  agency  or  the  state medical care facilities finance
 agency, or in the event that the corporation enters  into  an  agreement
 for the financing or refinancing of any of the aforementioned facilities
 with  one or more voluntary agencies, it shall act on its own behalf and
 not as agent. The appropriate commissioner or director of the department
 on behalf of the department shall approve any such lease, sublease, loan
 or other financing agreement and shall be  a  party  thereto.  All  such
 leases, subleases, loans or other financing agreements shall be approved
 prior to execution by no less than three directors of the corporation.
   §  65.  This  act shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2018; provided,
 however, that the provisions of sections one, two,  three,  four,  five,
 six, seven, eight, twelve, thirteen, fourteen, sixteen, seventeen, eigh-
 teen,  nineteen,  twenty,  twenty-one,  twenty-three,  twenty-seven, and
 twenty-eight of this act shall expire March 31, 2019 when upon such date
 the provisions of such sections shall be deemed repealed.
 
                                 PART CCC
 
   Section 1. Paragraph e of subdivision 1 of section 211-d of the educa-
 tion law, as amended by section 1 of part YYY of chapter 59 of the  laws
 of 2017, is amended to read as follows:
   e.  Notwithstanding  paragraphs  a and b of this subdivision, a school
 district that submitted a contract for excellence for the  two  thousand
 eight--two  thousand nine school year shall submit a contract for excel-
 lence for the  two  thousand  nine--two  thousand  ten  school  year  in
 conformity  with the requirements of subparagraph (vi) of paragraph a of
 subdivision two of this section unless all schools in the  district  are
 identified  as  in  good  standing  and  provided further that, a school
 district that submitted a contract for excellence for the  two  thousand
 nine--two  thousand  ten school year, unless all schools in the district
 are identified as in good standing, shall submit a contract  for  excel-
 lence for the two thousand eleven--two thousand twelve school year which
 shall,  notwithstanding  the  requirements of subparagraph (vi) of para-
 graph a of subdivision two of this section, provide for the  expenditure
 of  an  amount  which  shall  be not less than the product of the amount
 approved by the commissioner in the contract for excellence for the  two
 thousand   nine--two   thousand  ten  school  year,  multiplied  by  the
 district's gap elimination adjustment percentage  and  provided  further
 that, a school district that submitted a contract for excellence for the
 two thousand eleven--two thousand twelve school year, unless all schools
 in  the  district  are  identified  as  in good standing, shall submit a
 contract for excellence for the two thousand twelve--two thousand  thir-

 S. 7509--C                         118                        A. 9509--C
 
 teen  school  year  which  shall,  notwithstanding  the  requirements of
 subparagraph (vi) of paragraph a of subdivision  two  of  this  section,
 provide  for  the  expenditure of an amount which shall be not less than
 the  amount  approved by the commissioner in the contract for excellence
 for the  two  thousand  eleven--two  thousand  twelve  school  year  and
 provided  further  that, a school district that submitted a contract for
 excellence for the two thousand  twelve--two  thousand  thirteen  school
 year,  unless  all  schools  in  the  district are identified as in good
 standing, shall submit a contract for excellence for  the  two  thousand
 thirteen--two thousand fourteen school year which shall, notwithstanding
 the  requirements of subparagraph (vi) of paragraph a of subdivision two
 of this section, provide for the expenditure of an amount which shall be
 not less than the amount approved by the commissioner  in  the  contract
 for excellence for the two thousand twelve--two thousand thirteen school
 year  and  provided  further  that,  a  school district that submitted a
 contract for excellence for  the  two  thousand  thirteen--two  thousand
 fourteen  school year, unless all schools in the district are identified
 as in good standing, shall submit a contract for excellence for the  two
 thousand   fourteen--two  thousand  fifteen  school  year  which  shall,
 notwithstanding the requirements of subparagraph (vi) of paragraph a  of
 subdivision  two  of  this  section,  provide  for the expenditure of an
 amount which shall be not less than the amount approved by  the  commis-
 sioner in the contract for excellence for the two thousand thirteen--two
 thousand  fourteen  school  year;  and  provided  further that, a school
 district that submitted a contract for excellence for the  two  thousand
 fourteen--two  thousand  fifteen  school year, unless all schools in the
 district are identified as in good standing, shall submit a contract for
 excellence for the two thousand  fifteen--two  thousand  sixteen  school
 year  which shall, notwithstanding the requirements of subparagraph (vi)
 of paragraph a of subdivision two  of  this  section,  provide  for  the
 expenditure  of  an  amount  which  shall  be  not  less than the amount
 approved by the commissioner in the contract for excellence for the  two
 thousand  fourteen--two  thousand  fifteen  school  year;  and  provided
 further that a school district that submitted a contract for  excellence
 for  the  two thousand fifteen--two thousand sixteen school year, unless
 all schools in the district are identified as in  good  standing,  shall
 submit a contract for excellence for the two thousand sixteen--two thou-
 sand seventeen school year which shall, notwithstanding the requirements
 of  subparagraph (vi) of paragraph a of subdivision two of this section,
 provide for the expenditure of an amount which shall be  not  less  than
 the  amount  approved by the commissioner in the contract for excellence
 for the two thousand fifteen--two  thousand  sixteen  school  year;  and
 provided  further  that, a school district that submitted a contract for
 excellence for the two thousand sixteen--two thousand  seventeen  school
 year,  unless  all  schools  in  the  district are identified as in good
 standing, shall submit a contract for excellence for  the  two  thousand
 seventeen--two  thousand eighteen school year which shall, notwithstand-
 ing the requirements of subparagraph (vi) of paragraph a of  subdivision
 two  of  this  section,  provide  for the expenditure of an amount which
 shall be not less than the amount approved by the  commissioner  in  the
 contract  for  excellence  for  the  two  thousand sixteen--two thousand
 seventeen school year; AND PROVIDED FURTHER THAT A SCHOOL DISTRICT  THAT
 SUBMITTED  A CONTRACT FOR EXCELLENCE FOR THE TWO THOUSAND SEVENTEEN--TWO
 THOUSAND EIGHTEEN SCHOOL YEAR, UNLESS ALL SCHOOLS IN  THE  DISTRICT  ARE
 IDENTIFIED  AS  IN GOOD STANDING, SHALL SUBMIT A CONTRACT FOR EXCELLENCE
 FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL  YEAR  WHICH

 S. 7509--C                         119                        A. 9509--C
 
 SHALL,  NOTWITHSTANDING  THE  REQUIREMENTS OF SUBPARAGRAPH (VI) OF PARA-
 GRAPH A OF SUBDIVISION TWO OF THIS SECTION, PROVIDE FOR THE  EXPENDITURE
 OF  AN  AMOUNT  WHICH  SHALL BE NOT LESS THAN THE AMOUNT APPROVED BY THE
 COMMISSIONER  IN THE CONTRACT FOR EXCELLENCE FOR THE TWO THOUSAND SEVEN-
 TEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR. For purposes of this paragraph,
 the "gap elimination adjustment percentage" shall be calculated  as  the
 sum  of  one  minus the quotient of the sum of the school district's net
 gap elimination adjustment for two  thousand  ten--two  thousand  eleven
 computed  pursuant  to  chapter  fifty-three of the laws of two thousand
 ten, making appropriations for  the  support  of  government,  plus  the
 school  district's  gap elimination adjustment for two thousand eleven--
 two thousand twelve as computed pursuant to chapter fifty-three  of  the
 laws  of  two  thousand eleven, making appropriations for the support of
 the local assistance budget, including support for general  support  for
 public  schools, divided by the total aid for adjustment computed pursu-
 ant to chapter fifty-three of the laws of two  thousand  eleven,  making
 appropriations  for  the  local assistance budget, including support for
 general support for public schools. Provided, further, that such  amount
 shall  be expended to support and maintain allowable programs and activ-
 ities approved in the two thousand nine--two thousand ten school year or
 to support new or expanded allowable  programs  and  activities  in  the
 current year.
   §  2.  Section  305  of  the  education law is amended by adding a new
 subdivision 58 to read as follows:
   58. A. NO LATER THAN JUNE FIRST, TWO THOUSAND  NINETEEN,  THE  COMMIS-
 SIONER SHALL PREPARE AND SUBMIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT
 OF  THE SENATE AND THE SPEAKER OF THE ASSEMBLY A REPORT THAT PROVIDES AN
 OVERVIEW OF TEACHER DIVERSITY THROUGHOUT THE STATE. SUCH REPORT SHALL:
   (I) STUDY THE POTENTIAL BARRIERS TO: ACHIEVING DIVERSITY WITHIN TEACH-
 ER PREPARATION PROGRAMS; OBTAINING AN INITIAL CERTIFICATE IN THE  CLASS-
 ROOM  TEACHING SERVICE; AND OBTAINING TEACHER CERTIFICATION AS A TEACHER
 AIDE OR TEACHING ASSISTANT;
   (II) INCLUDE AVAILABLE DATA ON RACE, ETHNICITY, GENDER, AND  AGE;  THE
 EFFORTS  HIGHER EDUCATION INSTITUTIONS WITH TEACHER PREPARATION PROGRAMS
 ARE TAKING TO RECRUIT AND RETAIN A DIVERSE STUDENT POPULATION INTO  SUCH
 PROGRAMS;  AND  THE  EFFORTS  THAT  THE  STATE AND SCHOOLS ARE TAKING TO
 ATTRACT, HIRE, AND RETAIN CERTIFIED TEACHERS WHO REFLECT  THE  DIVERSITY
 WITHIN NEW YORK STATE'S SCHOOLS; AND
   (III)  MAKE  RECOMMENDATIONS  ON PROGRAMS, PRACTICES AND POLICIES THAT
 MAY BE IMPLEMENTED  BY  SCHOOLS  AND  TEACHER  PREPARATION  PROGRAMS  TO
 IMPROVE TEACHER DIVERSITY THROUGHOUT THE STATE.
   B.  THE  COMMISSIONER SHALL CONSULT WITH STAKEHOLDERS AND OTHER INTER-
 ESTED PARTIES WHEN PREPARING SUCH REPORT. THE STATE  UNIVERSITY  OF  NEW
 YORK,  THE  CITY  UNIVERSITY  OF NEW YORK, THE COMMISSION ON INDEPENDENT
 COLLEGES AND UNIVERSITIES,  AND  THE  PROPRIETARY  COLLEGE  SECTOR  WITH
 REGISTERED TEACHER EDUCATION PROGRAMS IN THIS STATE SHALL, TO THE EXTENT
 PRACTICABLE,  IDENTIFY AND PROVIDE REPRESENTATIVES TO THE DEPARTMENT, AT
 THE REQUEST OF THE COMMISSIONER, IN ORDER TO PARTICIPATE IN THE DEVELOP-
 MENT AND DRAFTING OF SUCH REPORT.
   § 3. Intentionally omitted.
   § 4. The education law is amended by adding a new section 3614 to read
 as follows:
   § 3614. STATEMENT OF THE TOTAL FUNDING ALLOCATION. 1.  NOTWITHSTANDING
 ANY PROVISION OF LAW, RULE OR REGULATION  TO  THE  CONTRARY,  COMMENCING
 WITH  THE  TWO  THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR FOR
 SCHOOL DISTRICTS WHICH CONTAIN AT LEAST FOUR SCHOOLS AS REPORTED IN  THE

 S. 7509--C                         120                        A. 9509--C
 
 SCHOOL  REPORT  CARD  DATABASE  PRODUCED BY THE COMMISSIONER FOR THE TWO
 THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR AND  WHICH  RECEIVE
 AT  LEAST  FIFTY  PERCENT OF TOTAL REVENUE FROM STATE AID AS REPORTED IN
 THE  FISCAL  PROFILES  MASTER  FILES REPORT PRODUCED BY THE COMMISSIONER
 CONCERNING DATA ON SCHOOL DISTRICT EXPENDITURES AND REVENUES FOR THE TWO
 THOUSAND FIFTEEN--TWO  THOUSAND  SIXTEEN  SCHOOL  YEAR  AND  FOR  SCHOOL
 DISTRICTS  LOCATED IN A CITY WITH A POPULATION OF MORE THAN ONE MILLION,
 AND COMMENCING WITH  THE  TWO  THOUSAND  NINETEEN--TWO  THOUSAND  TWENTY
 SCHOOL  YEAR  FOR  SCHOOL  DISTRICTS CONTAINING AT LEAST FOUR SCHOOLS AS
 REPORTED IN THE SCHOOL REPORT CARD DATABASE PRODUCED BY THE COMMISSIONER
 FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN  SCHOOL  YEAR,  AND
 COMMENCING  WITH THE TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL
 YEAR FOR ALL OTHER SCHOOL DISTRICTS ELIGIBLE FOR AN APPORTIONMENT PURSU-
 ANT TO SUBDIVISION FOUR OF SECTION THIRTY-SIX HUNDRED TWO OF THIS  PART,
 SUCH  SCHOOL DISTRICTS SHALL ANNUALLY SUBMIT TO THE COMMISSIONER AND THE
 DIRECTOR OF THE BUDGET AND SHALL MAKE  PUBLICLY  AVAILABLE  AND  ON  THE
 DISTRICT  WEBSITE  A  DETAILED STATEMENT OF THE TOTAL FUNDING ALLOCATION
 FOR EACH SCHOOL IN THE DISTRICT FOR  THE  UPCOMING  SCHOOL  BUDGET  YEAR
 PRIOR TO THE FIRST DAY OF SUCH SCHOOL YEAR, PROVIDED THAT:
   A.  SUCH  STATEMENTS SHALL BE IN A STATEWIDE UNIFORM FORM DEVELOPED BY
 THE DIRECTOR OF THE  BUDGET,  IN  CONSULTATION  WITH  THE  COMMISSIONER,
 PROVIDED  THAT  WHEN  PREPARING STATEMENTS DISTRICTS SHALL ADHERE TO AND
 COMPLETE THE PRESCRIBED FORM ACCURATELY AND FULLY, AND PROVIDED  FURTHER
 THAT THE DIRECTOR OF THE BUDGET SHALL REQUEST IN SUCH FORM ONLY INFORMA-
 TION  THAT  IS  KNOWN  TO,  OR  MAY  BE ASCERTAINED OR ESTIMATED BY, THE
 DISTRICT. PROVIDED, FURTHER, THAT EACH LOCAL  EDUCATIONAL  AGENCY  SHALL
 INCLUDE  IN  SUCH  STATEMENT THE APPROACH USED TO ALLOCATE FUNDS TO EACH
 SCHOOL AND THAT SUCH STATEMENT SHALL INCLUDE BUT NOT BE LIMITED TO SEPA-
 RATE ENTRIES FOR  EACH  INDIVIDUAL  SCHOOL,  DEMOGRAPHIC  DATA  FOR  THE
 SCHOOL,  PER  PUPIL FUNDING LEVEL, SOURCE OF FUNDS, AND UNIFORM DECISION
 RULES REGARDING ALLOCATION OF CENTRALIZED SPENDING TO INDIVIDUAL SCHOOLS
 FROM ALL FUNDING SOURCES.
   B. WITHIN THIRTY DAYS OF SUBMISSION OF  SUCH  STATEMENT  BY  A  SCHOOL
 DISTRICT,  THE COMMISSIONER AND DIRECTOR OF THE BUDGET SHALL REVIEW SUCH
 STATEMENT AND DETERMINE WHETHER THE STATEMENT IS COMPLETE AND IS IN  THE
 FORMAT REQUIRED BY PARAGRAPH A OF THIS SUBDIVISION. IF SUCH STATEMENT IS
 DETERMINED  TO  BE COMPLETE AND IN THE FORMAT REQUIRED BY PARAGRAPH A OF
 THIS SUBDIVISION, A WRITTEN ACKNOWLEDGEMENT OF SUCH SHALL BE SENT TO THE
 SCHOOL DISTRICT. IF NO DETERMINATION IS MADE BY THE COMMISSIONER AND THE
 DIRECTOR OF THE BUDGET WITHIN THIRTY DAYS OF SUBMISSION  OF  THE  STATE-
 MENT,  SUCH  STATEMENT SHALL BE DEEMED APPROVED. SHOULD THE COMMISSIONER
 OR THE DIRECTOR OF THE BUDGET REQUEST ADDITIONAL  INFORMATION  FROM  THE
 SCHOOL  DISTRICT  TO  DETERMINE  COMPLETENESS,  THE  DEADLINE  SHALL  BE
 EXTENDED BY THIRTY DAYS FROM THE DATE OF SUBMISSION  OF  THE  ADDITIONAL
 REQUESTED  INFORMATION.  IF  THE  COMMISSIONER OR DIRECTOR OF THE BUDGET
 DETERMINE A SCHOOL DISTRICT'S SPENDING  STATEMENT  TO  BE  NONCOMPLIANT,
 SUCH  SCHOOL  DISTRICT  SHALL  BE  ALLOWED  TO SUBMIT A REVISED SPENDING
 STATEMENT AT ANY TIME.
   C. IF A SCHOOL DISTRICT FAILS TO SUBMIT A STATEMENT THAT  IS  COMPLETE
 AND  IN  THE  FORMAT  REQUIRED BY PARAGRAPH A OF THIS SUBDIVISION BY THE
 FIRST DAY OF SUCH SCHOOL YEAR OR IF THE COMMISSIONER OR DIRECTOR OF  THE
 BUDGET  DETERMINE THE SCHOOL DISTRICT'S SPENDING STATEMENT TO BE NONCOM-
 PLIANT, A WRITTEN EXPLANATION SHALL BE PROVIDED AND THE SCHOOL  DISTRICT
 WILL  HAVE  THIRTY  DAYS  TO  CURE. IF THE SCHOOL DISTRICT DOES NOT CURE
 WITHIN THIRTY DAYS, THE COMPTROLLER OF THE CITY  IN  WHICH  SUCH  SCHOOL
 DISTRICT  IS  SITUATED,  OR  IF  THE CITY DOES NOT HAVE AN ELECTED COMP-

 S. 7509--C                         121                        A. 9509--C
 
 TROLLER, THE  CHIEF  FINANCIAL  OFFICER  OF  THE  CITY,  OR  FOR  SCHOOL
 DISTRICTS NOT LOCATED IN A CITY, THE CHIEF FINANCIAL OFFICER OF THE TOWN
 IN  WHICH  THE  MAJORITY  OF  THE  SCHOOL  DISTRICT IS SITUATED SHALL BE
 AUTHORIZED,  AT HIS OR HER DISCRETION, TO OBTAIN APPROPRIATE INFORMATION
 FROM THE SCHOOL DISTRICT, AND SHALL BE AUTHORIZED TO COMPLETE SUCH  FORM
 AND  SUBMIT SUCH STATEMENT TO THE DIRECTOR OF THE BUDGET AND THE COMMIS-
 SIONER FOR APPROVAL IN ACCORDANCE WITH PARAGRAPH B OF THIS  SUBDIVISION.
 WHERE THE COMPTROLLER OR CHIEF FINANCIAL OFFICER EXERCISES THE AUTHORITY
 TO  SUBMIT  SUCH  FORM,  SUCH  SUBMISSION  SHALL OCCUR WITHIN SIXTY DAYS
 FOLLOWING NOTIFICATION OF THE SCHOOL DISTRICT'S FAILURE TO CURE. NOTHING
 IN THIS PARAGRAPH SHALL PRECLUDE A SCHOOL  DISTRICT  FROM  SUBMITTING  A
 SPENDING  STATEMENT  FOR  APPROVAL BY THE DIRECTOR OF THE BUDGET AND THE
 COMMISSIONER AT ANY TIME.
   2. NOTHING IN THIS SECTION SHALL ALTER  OR  SUSPEND  STATUTORY  SCHOOL
 DISTRICT BUDGET AND VOTING OR APPROVAL REQUIREMENTS.
   § 4-a. Section 3601 of the education law, as amended by section 4-a of
 part  A-1  of  chapter 58 of the laws of 2006, and as further amended by
 subdivision (d) of section 1 of part W of chapter  56  of  the  laws  of
 2010, is amended to read as follows:
   §  3601.  When apportioned and how applied. The amount annually appro-
 priated by the legislature for general support for public  schools,  net
 of  disallowances,  refunds, reimbursements and credits, shall be appor-
 tioned by the commissioner each year prior to the dates of  the  respec-
 tive  final payments provided by law and all moneys so apportioned shall
 be applied exclusively to school purposes authorized by  law.    General
 state  aid  claims,  on  forms  prescribed by the commissioner, shall be
 submitted to the commissioner by September second of each  school  year,
 except  that  the  audit report required by subdivision three of section
 twenty-one hundred sixteen-a of this chapter shall be submitted  to  the
 commissioner by October fifteenth following the close of the school year
 audited  for  all  districts other than the city school districts of the
 cities of Buffalo, Rochester, Syracuse, Yonkers  and  New  York  and  by
 January  first  following  the close of the school year audited for such
 city school districts. No aid shall be paid  to  a  school  district  or
 board  of  cooperative  educational  services prior to the submission of
 claims as required by the commissioner, except that no aid certified  as
 payable to a school district by the commissioner of taxation and finance
 pursuant  to  paragraph  (c)  of  subdivision  three of section thirteen
 hundred six-a of the real property tax law shall be withheld due to  the
 failure  of  the  school  district  to  submit  general state aid claims
 required by the commissioner, [and] except that no aids shall  be  with-
 held  due to the failure of a school district to submit the audit report
 required by subdivision three of section twenty-one hundred sixteen-a of
 this chapter until the thirtieth day following the due date specified in
 this section for such report, AND EXCEPT THAT APPORTIONMENT FOR  GENERAL
 SUPPORT  OF  PUBLIC  SCHOOLS  FROM  THE  FUNDS  APPORTIONED  TO A SCHOOL
 DISTRICT FOR THE CURRENT YEAR IN EXCESS OF  THE  AMOUNT  APPORTIONED  TO
 SUCH  SCHOOL  DISTRICT IN THE BASE YEAR SHALL BE WITHHELD UNTIL ISSUANCE
 OF A DETERMINATION OF COMPLIANCE IN WRITING OF  SUCH  SCHOOL  DISTRICT'S
 STATEMENT OF TOTAL FUNDING ALLOCATION BY THE COMMISSIONER AND THE DIREC-
 TOR  OF THE BUDGET AS REQUIRED BY SECTION THIRTY-SIX HUNDRED FOURTEEN OF
 THIS PART, WHENEVER SUCH SHALL OCCUR, PROVIDED THAT FOR PURPOSES OF THIS
 SECTION, "CURRENT YEAR" SHALL MEAN THE CURRENT YEAR AS DEFINED IN  PARA-
 GRAPH  A  OF  SUBDIVISION  ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THIS
 PART AND "BASE YEAR" SHALL MEAN THE BASE YEAR AS DEFINED IN PARAGRAPH  B
 OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THIS PART.

 S. 7509--C                         122                        A. 9509--C
 
   § 4-b. Section 2590-r-1 of the education law is REPEALED.
   § 5. Intentionally omitted.
   § 6. Intentionally omitted.
   § 7. Intentionally omitted.
   § 8. Intentionally omitted.
   §  9.  Paragraph  r  of subdivision 1 of section 3602 of the education
 law, as amended by section 11 of part B of chapter 57  of  the  laws  of
 2007, is amended to read as follows:
   r.  "Sparsity  count",  for districts operating a kindergarten through
 grade twelve school program, shall mean the product of (i) the base year
 public school enrollment of the district and (ii) THE  SPARSITY  FACTOR,
 WHICH SHALL MEAN the quotient, computed to three decimals without round-
 ing,  of  the positive remainder of twenty-five minus the enrollment per
 square mile divided by fifty and nine tenths, but not  less  than  zero.
 Enrollment  per square mile shall be the quotient, computed to two deci-
 mals without rounding, of the public school  enrollment  of  the  school
 district  on  the  date  enrollment  was counted in accordance with this
 subdivision for the base  year  divided  by  the  square  miles  of  the
 district, as determined by the commissioner.
   §  9-a.  Subdivision 1 of section 3602 of the education law is amended
 by adding a new paragraph hh to read as follows:
   HH. "CONSUMER PRICE INDEX" SHALL MEAN THE QUOTIENT OF: (I) THE AVERAGE
 OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE  UNITED  STATES
 DEPARTMENT  OF LABOR FOR THE TWELVE-MONTH PERIOD PRECEDING JANUARY FIRST
 OF THE CURRENT YEAR MINUS THE AVERAGE OF  THE  NATIONAL  CONSUMER  PRICE
 INDEXES  DETERMINED  BY  THE  UNITED  STATES DEPARTMENT OF LABOR FOR THE
 TWELVE-MONTH PERIOD PRECEDING JANUARY FIRST OF THE PRIOR  YEAR,  DIVIDED
 BY (II) THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY
 THE  UNITED  STATES  DEPARTMENT  OF  LABOR  FOR  THE TWELVE-MONTH PERIOD
 PRECEDING JANUARY FIRST OF THE PRIOR YEAR, WITH THE RESULT EXPRESSED  AS
 A DECIMAL TO THREE PLACES.
   §  9-b. Subdivision 4 of section 3602 of the education law, as amended
 by section 16-a of part YYY of chapter  59  of  the  laws  of  2017,  is
 amended to read as follows:
   4. Total foundation aid. In addition to any other apportionment pursu-
 ant  to this chapter, a school district, other than a special act school
 district as defined in subdivision eight of section four thousand one of
 this chapter, shall be eligible for total foundation aid  equal  to  the
 product  of  total  aidable  foundation  pupil  units  multiplied by the
 district's selected foundation aid, which shall be the greater  of  five
 hundred dollars ($500) or foundation formula aid, provided, however that
 for  the  two  thousand  seven--two  thousand eight through two thousand
 eight--two thousand nine school years, no school district shall  receive
 total  foundation  aid  in excess of the sum of the total foundation aid
 base for aid payable in  the  two  thousand  seven--two  thousand  eight
 school  year  computed  pursuant  to  subparagraph (i) of paragraph j of
 subdivision one of this section, plus the phase-in  foundation  increase
 computed  pursuant  to  paragraph  b  of  this subdivision, and provided
 further that for the two thousand twelve--two thousand  thirteen  school
 year, no school district shall receive total foundation aid in excess of
 the  sum  of  the  total  foundation aid base for aid payable in the two
 thousand eleven--two thousand twelve school year  computed  pursuant  to
 subparagraph  (ii)  of  paragraph  j of subdivision one of this section,
 plus the phase-in foundation increase computed pursuant to  paragraph  b
 of  this  subdivision,  and  provided  further that for the two thousand
 thirteen--two thousand fourteen school year and  thereafter,  no  school

 S. 7509--C                         123                        A. 9509--C
 
 district  shall receive total foundation aid in excess of the sum of the
 total foundation aid base computed  pursuant  to  subparagraph  (ii)  of
 paragraph  j of subdivision one of this section, plus the phase-in foun-
 dation  increase  computed  pursuant to paragraph b of this subdivision,
 and provided further that for the  two  thousand  sixteen--two  thousand
 seventeen  school year, no eligible school districts shall receive total
 foundation aid in excess of the sum of the  total  foundation  aid  base
 computed pursuant to subparagraph (ii) of paragraph j of subdivision one
 of  this  section  plus the sum of (A) the phase-in foundation increase,
 (B) the executive foundation increase with a minimum  increase  pursuant
 to paragraph b-2 of this subdivision, and (C) an amount equal to "COMMU-
 NITY  SCHOOLS  AID" in the computer listing produced by the commissioner
 in support  of  the  executive  budget  request  for  the  two  thousand
 sixteen--two  thousand  seventeen  school  year  and entitled "BT161-7",
 where (1) "eligible school district" shall be defined as a district with
 (a) an unrestricted aid increase of less than seven percent  (0.07)  and
 (b)  a  three  year average free and reduced price lunch percent greater
 than fifteen percent (0.15), and (2) "unrestricted aid  increase"  shall
 mean  the quotient arrived at when dividing (a) the sum of the executive
 foundation aid increase plus the gap elimination adjustment for the base
 year, by (b) the difference of foundation aid for the base year less the
 gap elimination adjustment for the base year, and (3) "executive founda-
 tion increase" shall mean the difference of (a) the  amounts  set  forth
 for  each school district as "FOUNDATION AID" under the heading "2016-17
 ESTIMATED AIDS" in the school  aid  computer  listing  produced  by  the
 commissioner  in  support  of  the  executive budget request for the two
 thousand  sixteen--two  thousand  seventeen  school  year  and  entitled
 "BT161-7"  less  (b)  the  amounts set forth for each school district as
 "FOUNDATION AID" under the heading "2015-16  BASE  YEAR  AIDS"  in  such
 computer  listing  and  provided further that total foundation aid shall
 not be less than the product of the total foundation aid  base  computed
 pursuant  to paragraph j of subdivision one of this section and the due-
 minimum percent which shall be, for the two thousand  twelve--two  thou-
 sand  thirteen  school  year, one hundred and six-tenths percent (1.006)
 and for the two thousand thirteen--two thousand fourteen school year for
 city school districts of those cities having populations  in  excess  of
 one  hundred  twenty-five thousand and less than one million inhabitants
 one hundred and one and one hundred and seventy-six thousandths  percent
 (1.01176),  and  for  all  other  districts one hundred and three-tenths
 percent (1.003), and for the two thousand fourteen--two thousand fifteen
 school year one hundred and eighty-five hundredths percent (1.0085), and
 for the two thousand fifteen--two  thousand  sixteen  school  year,  one
 hundred  thirty-seven hundredths percent (1.0037), subject to allocation
 pursuant to the provisions of subdivision eighteen of this  section  and
 any  provisions of a chapter of the laws of New York as described there-
 in, nor more than the product of such total foundation aid base and  one
 hundred  fifteen percent for any school year other than the two thousand
 seventeen--two thousand eighteen school year,  provided,  however,  that
 for  the  two  thousand sixteen--two thousand seventeen school year such
 maximum shall be no more than the sum of (i) the product of  such  total
 foundation aid base and one hundred fifteen percent plus (ii) the execu-
 tive  foundation  increase and plus (iii) "COMMUNITY SCHOOLS AID" in the
 computer listing produced by the commissioner in support of  the  execu-
 tive budget request for the two thousand sixteen--two thousand seventeen
 school year and entitled "BT161-7" and provided further that for the two
 thousand  nine--two  thousand ten through two thousand eleven--two thou-

 S. 7509--C                         124                        A. 9509--C
 
 sand twelve school years, each school district shall receive total foun-
 dation aid in an amount equal to the amount apportioned to  such  school
 district  for  the  two  thousand  eight--two  thousand nine school year
 pursuant to this subdivision. Total aidable foundation pupil units shall
 be  calculated  pursuant  to  paragraph  g  of  subdivision  two of this
 section. For the purposes of calculating aid pursuant to  this  subdivi-
 sion,  aid for the city school district of the city of New York shall be
 calculated on a citywide basis.
   a. Foundation formula aid. Foundation  formula  aid  shall  equal  the
 remainder  when  the  expected  minimum local contribution is subtracted
 from the product of the foundation amount, the regional cost index,  and
 the  pupil  need  index,  or: (foundation amount x regional cost index x
 pupil need index)- expected minimum local contribution.
   (1) The foundation amount shall reflect the average per pupil cost  of
 general  education instruction in successful school districts, as deter-
 mined by a statistical analysis of the costs of  special  education  and
 general  education  in  successful  school  districts, provided that the
 foundation amount shall be adjusted annually to reflect  the  percentage
 increase  in  the  consumer price index [as computed pursuant to section
 two thousand twenty-two of this chapter] AS DEFINED BY PARAGRAPH  HH  OF
 SUBDIVISION  ONE  OF  THIS  SECTION,  provided that for the two thousand
 eight--two thousand nine school year, for the purpose  of  such  adjust-
 ment,  the  percentage  increase  in  the  consumer price index shall be
 deemed to be two and nine-tenths percent (0.029), and  provided  further
 that  the  foundation  amount  for  the two thousand seven--two thousand
 eight school  year  shall  be  five  thousand  two  hundred  fifty-eight
 dollars, and provided further that for the two thousand seven--two thou-
 sand  eight through two thousand seventeen--two thousand eighteen school
 years, the foundation amount shall be further adjusted by  the  phase-in
 foundation  percent established pursuant to paragraph b of this subdivi-
 sion.
   (2) The regional cost index shall reflect an analysis of labor  market
 costs  based on median salaries in professional occupations that require
 similar credentials to those of positions in the  education  field,  but
 not  including  those  occupations in the education field, provided that
 the regional cost indices for the two thousand seven--two thousand eight
 school year and thereafter shall be as follows:
           Labor Force Region  Index
           Capital District    1.124
           Southern Tier       1.045
           Western New York    1.091
           Hudson Valley       1.314
           Long Island/NYC     1.425
           Finger Lakes        1.141
           Central New York    1.103
           Mohawk Valley       1.000
           North Country       1.000
   (3) The pupil need index shall equal the sum of one plus the  extraor-
 dinary needs percent, provided, however, that the pupil need index shall
 not  be less than one nor more than two. The extraordinary needs percent
 shall be calculated pursuant to paragraph w of subdivision one  of  this
 section.
   (4)  The expected minimum local contribution shall equal the lesser of
 (i) the product of (A) the quotient arrived at when the selected  actual
 valuation  is divided by total wealth foundation pupil units, multiplied
 by (B) the product of the local tax factor,  multiplied  by  the  income

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 wealth  index,  or (ii) the product of (A) the product of the foundation
 amount, the regional cost index, and the pupil need index, multiplied by
 (B) the positive difference, if any, of  one  minus  the  state  sharing
 ratio  for  total  foundation  aid. The local tax factor shall be estab-
 lished by May first of each year by determining the product, computed to
 four decimal places without rounding, of ninety  percent  multiplied  by
 the quotient of the sum of the statewide average tax rate as computed by
 the  commissioner for the current year in accordance with the provisions
 of paragraph e of subdivision one of section thirty-six  hundred  nine-e
 of this part plus the statewide average tax rate computed by the commis-
 sioner  for  the  base  year in accordance with such provisions plus the
 statewide average tax rate computed by the  commissioner  for  the  year
 prior  to  the  base year in accordance with such provisions, divided by
 three, provided however that for the two  thousand  seven--two  thousand
 eight  school  year,  such local tax factor shall be sixteen thousandths
 (0.016), and provided further that for the two thousand eight--two thou-
 sand nine school year, such  local  tax  factor  shall  be  one  hundred
 fifty-four  ten  thousandths  (0.0154). The income wealth index shall be
 calculated pursuant to paragraph d of subdivision three of this section,
 provided, however, that for the purposes of computing the expected mini-
 mum local contribution the income wealth index shall not  be  less  than
 sixty-five percent (0.65) and shall not be more than two hundred percent
 (2.0)  and  provided  however that such income wealth index shall not be
 more than ninety-five percent (0.95) for  the  two  thousand  eight--two
 thousand  nine school year, and provided further that such income wealth
 index shall not be less than zero for  the  two  thousand  thirteen--two
 thousand  fourteen  school  year. The selected actual valuation shall be
 calculated pursuant to paragraph c of subdivision one of  this  section.
 Total  wealth  foundation  pupil  units  shall be calculated pursuant to
 paragraph h of subdivision two of this section.
   b. Phase-in foundation increase. (1) The phase-in foundation  increase
 shall  equal  the  product  of  the  phase-in foundation increase factor
 multiplied by the positive difference, if any, of (i) the product of the
 total aidable  foundation  pupil  units  multiplied  by  the  district's
 selected foundation aid less (ii) the total foundation aid base computed
 pursuant to paragraph j of subdivision one of this section.
   (2)  (i)  Phase-in foundation percent. The phase-in foundation percent
 shall equal one hundred thirteen and  fourteen  one  hundredths  percent
 (1.1314)  for  the two thousand eleven--two thousand twelve school year,
 one hundred ten and thirty-eight hundredths percent (1.1038) for the two
 thousand twelve--two thousand thirteen school year,  one  hundred  seven
 and  sixty-eight  hundredths percent (1.0768) for the two thousand thir-
 teen--two thousand fourteen  school  year,  one  hundred  five  and  six
 hundredths  percent (1.0506) for the two thousand fourteen--two thousand
 fifteen school year,  and  one  hundred  two  and  five  tenths  percent
 (1.0250) for the two thousand fifteen--two thousand sixteen school year.
   (ii)  Phase-in  foundation  increase  factor.  For  the  two  thousand
 eleven--two  thousand  twelve  school  year,  the  phase-in   foundation
 increase  factor  shall  equal thirty-seven and one-half percent (0.375)
 and the phase-in due minimum percent shall equal nineteen and  forty-one
 hundredths  percent  (0.1941), for the two thousand twelve--two thousand
 thirteen school year the phase-in foundation increase factor shall equal
 one and seven-tenths percent (0.017), for the two thousand thirteen--two
 thousand fourteen school year the phase-in  foundation  increase  factor
 shall equal (1) for a city school district in a city having a population
 of  one  million  or  more,  five  and  twenty-three  hundredths percent

 S. 7509--C                         126                        A. 9509--C
 
 (0.0523) or (2) for all other school districts zero percent, for the two
 thousand fourteen--two thousand fifteen school year the phase-in founda-
 tion increase factor shall equal (1) for a city  school  district  of  a
 city  having  a  population  of one million or more, four and thirty-two
 hundredths percent (0.0432) or (2) for a school district  other  than  a
 city  school  district  having  a  population of one million or more for
 which (A) the quotient of the  positive  difference  of  the  foundation
 formula aid minus the foundation aid base computed pursuant to paragraph
 j  of  subdivision one of this section divided by the foundation formula
 aid is greater than twenty-two percent (0.22) and (B) a combined  wealth
 ratio  less  than thirty-five hundredths (0.35), seven percent (0.07) or
 (3) for all other  school  districts,  four  and  thirty-one  hundredths
 percent (0.0431), and for the two thousand fifteen--two thousand sixteen
 school year the phase-in foundation increase factor shall equal: (1) for
 a  city  school district of a city having a population of one million or
 more,  thirteen  and  two  hundred  seventy-four   thousandths   percent
 (0.13274);  or  (2)  for  districts  where  the quotient arrived at when
 dividing (A) the product of the total  aidable  foundation  pupil  units
 multiplied  by  the  district's  selected  foundation aid less the total
 foundation aid base computed pursuant to paragraph j of subdivision  one
 of  this section divided by (B) the product of the total aidable founda-
 tion pupil units multiplied by the district's selected foundation aid is
 greater than nineteen percent (0.19), and where the district's  combined
 wealth  ratio  is  less  than  thirty-three hundredths (0.33), seven and
 seventy-five hundredths percent (0.0775); or (3) for any other  district
 designated  as  high  need pursuant to clause (c) of subparagraph two of
 paragraph c of subdivision six  of  this  section  for  the  school  aid
 computer  listing produced by the commissioner in support of the enacted
 budget for the two thousand seven--two thousand eight  school  year  and
 entitled  "SA0708",  four  percent  (0.04);  or  (4)  for  a city school
 district in a city having a population of one hundred twenty-five  thou-
 sand  or more but less than one million, fourteen percent (0.14); or (5)
 for school districts that were designated as small city school districts
 or central school districts whose boundaries  include  a  portion  of  a
 small  city  for the school aid computer listing produced by the commis-
 sioner in support of the enacted budget for the two thousand  fourteen--
 two  thousand  fifteen school year and entitled "SA1415", four and seven
 hundred fifty-one thousandths percent (0.04751); or (6)  for  all  other
 districts  one  percent  (0.01),  and  for the two thousand sixteen--two
 thousand seventeen school year  the  foundation  aid  phase-in  increase
 factor  shall  equal for an eligible school district the greater of: (1)
 for a city school district in a city with a population of one million or
 more, seven and seven hundred eighty four thousandths percent (0.07784);
 or (2) for a city school district in a city with a  population  of  more
 than two hundred fifty thousand but less than one million as of the most
 recent  federal  decennial  census,  seven  and three hundredths percent
 (0.0703); or (3) for a city school district in a city with a  population
 of  more than two hundred thousand but less than two hundred fifty thou-
 sand as of the most recent federal decennial census, six and seventy-two
 hundredths percent (0.0672); or (4) for a city school district in a city
 with a population of more than one hundred fifty thousand but less  than
 two hundred thousand as of the most recent federal decennial census, six
 and  seventy-four  hundredths percent (0.0674); or (5) for a city school
 district in a city with a population of more than  one  hundred  twenty-
 five  thousand  but  less than one hundred fifty thousand as of the most
 recent federal decennial census, nine and fifty-five hundredths  percent

 S. 7509--C                         127                        A. 9509--C
 
 (0.0955); or (6) for school districts that were designated as small city
 school  districts or central school districts whose boundaries include a
 portion of a small city for the school aid computer listing produced  by
 the  commissioner  in support of the enacted budget for the two thousand
 fourteen--two thousand fifteen school year and entitled "SA141-5" with a
 combined wealth ratio less than one and four tenths (1.4), nine  percent
 (0.09),  provided,  however,  that  for  such  districts  that  are also
 districts designated as high need urban-suburban pursuant to clause  (c)
 of  subparagraph  two  of paragraph c of subdivision six of this section
 for the school aid computer listing  produced  by  the  commissioner  in
 support  of  the enacted budget for the two thousand seven--two thousand
 eight school year and entitled "SA0708",  nine  and  seven  hundred  and
 nineteen  thousandths  percent  (0.09719);  or  (7) for school districts
 designated as high need rural pursuant to clause (c) of subparagraph two
 of paragraph c of subdivision six of this section  for  the  school  aid
 computer  listing produced by the commissioner in support of the enacted
 budget for the two thousand seven--two thousand eight  school  year  and
 entitled  "SA0708",  thirteen and six tenths percent (0.136); or (8) for
 school districts designated as  high  need  urban-suburban  pursuant  to
 clause (c) of subparagraph two of paragraph c of subdivision six of this
 section for the school aid computer listing produced by the commissioner
 in  support  of the enacted budget for the two thousand seven--two thou-
 sand eight school year and entitled  "SA0708",  seven  hundred  nineteen
 thousandths  percent  (0.00719);  or  (9)  for all other eligible school
 districts, forty-seven hundredths  percent  (0.0047),  provided  further
 that  for  the two thousand seventeen--two thousand eighteen school year
 the foundation aid increase phase-in factor shall equal (1)  for  school
 districts with a census 2000 poverty rate computed pursuant to paragraph
 q of subdivision one of this section equal to or greater than twenty-six
 percent  (0.26),  ten  and  three-tenths  percent  (0.103), or (2) for a
 school district in a city with a population in excess of one million  or
 more,  seventeen  and  seventy-seven one-hundredths percent (0.1777), or
 (3) for a city school district in a city with a population of more  than
 two  hundred  fifty  thousand  but less than one million, as of the most
 recent  decennial  census,  twelve  and  sixty-nine  hundredths  percent
 (0.1269)  or  (4) for a city school district in a city with a population
 of more than one hundred fifty thousand but less than two hundred  thou-
 sand,  as  of the most recent federal decennial census, ten and seventy-
 eight one hundredths percent (0.1078), or (5) for a city school district
 in a city with a population of more than one hundred  twenty-five  thou-
 sand  but  less  than  one  hundred fifty thousand as of the most recent
 federal decennial census, nineteen and one hundred eight one-thousandths
 percent (0.19108), or (6) for a city school district in a  city  with  a
 population  of  more than two hundred thousand but less than two hundred
 fifty thousand as of the most recent federal decennial census,  ten  and
 six-tenths  percent  (0.106),  or  (7) for all other districts, four and
 eighty-seven one-hundredths percent (0.0487), and for the  two  thousand
 [eighteen]  NINETEEN--two  thousand  [nineteen]  TWENTY  school year and
 thereafter the commissioner shall annually determine the phase-in  foun-
 dation  increase factor subject to allocation pursuant to the provisions
 of subdivision eighteen of this section and any provisions of a  chapter
 of the laws of New York as described therein.
   b-1.  Notwithstanding  any other provision of law to the contrary, for
 the two thousand seven--two thousand eight school year  and  thereafter,
 the  additional  amount payable to each school district pursuant to this
 subdivision in the current year as total foundation aid, after deducting

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 the total foundation aid base, shall be deemed  a  state  grant  in  aid
 identified  by  the commissioner for general use for purposes of section
 seventeen hundred eighteen of this chapter.
   b-2.  Due minimum for the two thousand sixteen--two thousand seventeen
 school year. Notwithstanding any other provision of law to the contrary,
 for the two thousand sixteen--two thousand  seventeen  school  year  the
 total foundation aid shall not be less than the sum of the total founda-
 tion  aid  base  computed  pursuant to paragraph j of subdivision one of
 this section plus the due minimum  for  the  two  thousand  sixteen--two
 thousand  seventeen  school year, where such due minimum shall equal the
 difference of (1) the product of (A) two percent  (0.02)  multiplied  by
 (B)  the  difference  of total foundation aid for the base year less the
 gap elimination adjustment for the base year, less (2) the  sum  of  (A)
 the  difference  of  the  amounts  set forth for each school district as
 "FOUNDATION AID" under the  heading  "2016-17  ESTIMATED  AIDS"  in  the
 school  aid  computer listing produced by the commissioner in support of
 the executive budget request for the two thousand sixteen--two  thousand
 seventeen  school year and entitled "BT161-7" less the amounts set forth
 for each school district as "FOUNDATION AID" under the heading  "2015-16
 BASE  YEAR  AIDS"  in such computer listing plus (B) the gap elimination
 adjustment for the base year.
   b-3. Due minimum for the two thousand seventeen--two thousand eighteen
 school year. Notwithstanding any other provision of law to the contrary,
 for the two thousand seventeen--two thousand eighteen  school  year  the
 total  foundation  aid  shall  not be less than (A) the sum of the total
 foundation aid base computed pursuant to paragraph j of subdivision  one
 of this section plus the product of (i) the difference of the amount set
 forth  for  such  school  district as "FOUNDATION AID" under the heading
 "2017-18 ESTIMATED AIDS" in the school aid computer listing produced  by
 the  commissioner in support of the executive budget request for the two
 thousand seventeen--two  thousand  eighteen  school  year  and  entitled
 "BT171-8" less the amount set forth for such school district as "FOUNDA-
 TION  AID"  under the heading "2016-17 BASE YEAR AIDS" in the school aid
 computer listing produced by the commissioner in support of  the  execu-
 tive  budget  request for the two thousand seventeen--two thousand eigh-
 teen school year and entitled "BT171-8" multiplied by (ii) one and eigh-
 teen one-hundredths  (1.18),  or  (B)  the  product  of  forty-four  and
 seventy-five one-hundredths percent (0.4475) multiplied by total founda-
 tion aid as computed pursuant to paragraph a of this subdivision, or (C)
 the  sum of the total foundation aid base computed pursuant to paragraph
 j of subdivision one of this section plus the due minimum  for  the  two
 thousand  seventeen--two  thousand  eighteen school year, where such due
 minimum shall equal (1) for school districts with a census 2000  poverty
 rate  computed  pursuant  to  paragraph  q  of  subdivision  one of this
 section, equal  to  or  greater  than  eleven  and  nine-tenths  percent
 (0.119),  the  product  of  the foundation aid base for the two thousand
 seventeen--two  thousand  eighteen  school  year  computed  pursuant  to
 subparagraph  (iii)  of  paragraph  j of subdivision one of this section
 multiplied by three hundred thirty-five ten-thousandths (0.0335), or (2)
 for all other school districts the product of the  foundation  aid  base
 for  the  two  thousand  seventeen--two  thousand  eighteen  school year
 computed pursuant to subparagraph (iii) of paragraph  j  of  subdivision
 one  of  this  section multiplied by two and seventy-four one-hundredths
 percent (0.0274).
   b-4. Additional increase for the two thousand  seventeen-two  thousand
 eighteen  school year. For the two thousand seventeen-two thousand eigh-

 S. 7509--C                         129                        A. 9509--C
 
 teen school year, any school district eligible  to  receive  a  phase-in
 foundation  increase pursuant to this subdivision shall receive an addi-
 tional foundation increase equal to the sum of tiers A, B, C, and  D  as
 defined herein.
   (i)  Tier  A.  For all school districts other than a district within a
 city with a population of one million or more, with  a  combined  wealth
 ratio  less  than two (2.0), where either (A) the quotient arrived at by
 dividing the English language learner count pursuant to paragraph  o  of
 subdivision  one  of this section for the base year by the public school
 district enrollment for the base year pursuant to paragraph n of  subdi-
 vision  one of this section is greater than two one-hundredths (0.02) or
 (B) the quotient arrived at by dividing the difference  of  the  English
 language  learner  count  pursuant  to paragraph o of subdivision one of
 this section for the base year less such count for one year prior to the
 base year by the public school district enrollment for one year prior to
 the base year pursuant to paragraph n of subdivision one of this section
 is greater than one one-thousandth (0.001), tier A shall equal the prod-
 uct of (A) the difference of two minus the combined wealth ratio  multi-
 plied by (B) one hundred dollars ($100.00) multiplied by (C) the English
 language learner count for the base year.
   (ii) Tier B. For any school district (A) where the amount set forth as
 "25% LIMIT CAP ON INCREASE" on the computer file produced by the commis-
 sioner  in support of the enacted budget for the two thousand seven--two
 thousand eight school year and entitled "SA070-8" is less than zero  and
 (B)  with  a  combined  wealth ratio computed pursuant to paragraph c of
 subdivision three of this section greater than one (1.0), tier  B  shall
 equal  the product of (A) the sum of (1) the difference of total founda-
 tion aid less the foundation aid base plus (2)  the  difference  of  the
 amount  set forth for such school district as "FOUNDATION AID" under the
 heading "2017-18 ESTIMATED AIDS" in  the  school  aid  computer  listing
 produced  by the commissioner in support of the executive budget request
 and entitled "BT1718" less the foundation aid base multiplied by (B) ten
 and two-tenths percent (0.102).
   (iii) Tier C. For all school districts with a  combined  wealth  ratio
 for total foundation aid computed pursuant to paragraph c of subdivision
 three  of  this section less than one (1.0), tier C shall be the greater
 of (A) for districts that were designated as small city school districts
 or central school districts whose boundaries  include  a  portion  of  a
 small  city  for the school aid computer listing produced by the commis-
 sioner in support of the enacted budget for the two thousand  fourteen--
 two  thousand  fifteen school year and entitled "SA1415", the product of
 the public school district enrollment for  the  base  year  pursuant  to
 paragraph n of subdivision one of this section multiplied by one hundred
 sixty-seven  dollars  and  forty  cents  ($167.40)  or  (B)  for  school
 districts with a sparsity factor as set forth on  the  computer  listing
 produced  by  the  commissioner in support of the enacted budget for the
 two thousand seventeen--two thousand eighteen school year  and  entitled
 "SA171-8"  of  greater  than  zero,  the  product  of  the public school
 district enrollment for the base year multiplied by one hundred  eighty-
 eight dollars ($188.00).
   (iv)  Tier  D. For all school districts, other than districts within a
 city with a population of one hundred twenty-five thousand or more, with
 a selected poverty rate of greater than eighteen hundredths (0.18), tier
 D shall equal the product of the selected poverty rate multiplied by the
 school district public enrollment for the base year  multiplied  by  two
 hundred  forty  dollars ($240.00), provided, however, that for districts

 S. 7509--C                         130                        A. 9509--C
 
 within a city with a population of greater than one hundred  twenty-five
 thousand but less than one million and a selected poverty rate of great-
 er  than  eighteen  hundredths (0.18), tier D shall equal the product of
 the  selected  poverty rate multiplied by school district public enroll-
 ment for the base year multiplied by three  hundred  forty-four  dollars
 ($344.00), and for a city school district in a city with a population of
 one  million  or  more,  tier  D shall equal the product of the selected
 poverty rate multiplied by school district  public  enrollment  for  the
 base year multiplied by twenty-nine cents ($0.29).
   c.  Public  excess  cost  aid setaside. Each school district shall set
 aside from its total foundation aid computed for the current year pursu-
 ant to this subdivision an amount equal  to  the  product  of:  (i)  the
 difference  between  the  amount  the  school  district  was eligible to
 receive in the two thousand six--two thousand seven school year pursuant
 to or in lieu of paragraph six of subdivision nineteen of  this  section
 as  such  paragraph existed on June thirtieth, two thousand seven, minus
 the amount such district was eligible to receive pursuant to or in  lieu
 of  paragraph five of subdivision nineteen of this section as such para-
 graph existed on June thirtieth, two  thousand  seven,  in  such  school
 year, and (ii) the sum of one and the percentage increase in the consum-
 er  price  index for the current year over such consumer price index for
 the two thousand six--two  thousand  seven  school  year,  [as  computed
 pursuant  to section two thousand twenty-two of this chapter] AS DEFINED
 BY PARAGRAPH HH OF SUBDIVISION ONE OF THIS SECTION. Notwithstanding  any
 other provision of law to the contrary, the public excess cost aid seta-
 side shall be paid pursuant to section thirty-six hundred nine-b of this
 part.
   d.  For  the  two  thousand fourteen--two thousand fifteen through two
 thousand [seventeen] EIGHTEEN--two thousand [eighteen]  NINETEEN  school
 years  a  city  school  district  of  a  city having a population of one
 million or more may use amounts apportioned pursuant to this subdivision
 for afterschool programs.
   e. Community schools aid set-aside. Each  school  district  shall  set
 aside from its total foundation aid computed for the current year pursu-
 ant to this subdivision an amount equal to the sum of (i) the amount, if
 any, set forth for such district as "COMMUNITY SCHL AID (BT1617)" in the
 data  file produced by the commissioner in support of the enacted budget
 for the two thousand sixteen--two thousand  seventeen  school  year  and
 entitled  "SA161-7"  [and],  (ii) the amount, if any, set forth for such
 district as "COMMUNITY SCHL INCR" in  the  data  file  produced  by  the
 commissioner  in  support  of  the  executive budget request for the two
 thousand seventeen--two  thousand  eighteen  school  year  and  entitled
 "BT171-8",  AND (III) THE AMOUNT, IF ANY, SET FORTH FOR SUCH DISTRICT AS
 "COMMUNITY SCHOOLS INCREASE" IN THE DATA FILE PRODUCED  BY  THE  COMMIS-
 SIONER  IN  SUPPORT  OF  THE EXECUTIVE BUDGET FOR THE TWO THOUSAND EIGH-
 TEEN--TWO THOUSAND NINETEEN SCHOOL YEAR  AND  ENTITLED  "BT181-9".  Each
 school  district  shall use such "COMMUNITY SCHL AID (BT1617)" amount to
 support the transformation of school buildings into  community  hubs  to
 deliver  co-located  or  school-linked  academic, health, mental health,
 nutrition, counseling, legal and/or other services to students and their
 families, including but not limited to providing a community school site
 coordinator, or to support other costs incurred  to  maximize  students'
 academic  achievement.  Each  school  district shall use such "COMMUNITY
 SCHL INCR" amount to support the transformation of school buildings into
 community hubs to deliver co-located or school linked academic,  health,
 mental  health  services  and  personnel, after-school programming, dual

 S. 7509--C                         131                        A. 9509--C
 
 language programs, nutrition, counseling, legal and/or other services to
 students and their families, including but not limited  to  providing  a
 community  school  site  coordinator  and  programs for English language
 learners,  or  to  support  other  costs  incurred to maximize students'
 academic achievement, provided however  that  a  school  district  whose
 "COMMUNITY  SCHL  INCR"  amount exceeds one million dollars ($1,000,000)
 shall use an amount equal to the greater of one hundred  fifty  thousand
 dollars  ($150,000)  or ten percent of such "COMMUNITY SCHL INCR" amount
 to support such transformation at schools with extraordinary high levels
 of student need as  identified  by  the  commissioner,  subject  to  the
 approval  of  the director of the budget. EACH SCHOOL DISTRICT SHALL USE
 SUCH "COMMUNITY SCHOOLS  INCREASE"  TO  SUPPORT  THE  TRANSFORMATION  OF
 SCHOOL  BUILDINGS  INTO  COMMUNITY  HUBS TO DELIVER CO-LOCATED OR SCHOOL
 LINKED ACADEMIC, HEALTH, MENTAL HEALTH SERVICES  AND  PERSONNEL,  AFTER-
 SCHOOL PROGRAMMING, DUAL LANGUAGE PROGRAMS, NUTRITION, COUNSELING, LEGAL
 AND/OR  OTHER SERVICES TO STUDENTS AND THEIR FAMILIES, INCLUDING BUT NOT
 LIMITED TO PROVIDING A COMMUNITY SCHOOL SITE  COORDINATOR  AND  PROGRAMS
 FOR  ENGLISH  LANGUAGE  LEARNERS,  OR TO SUPPORT OTHER COSTS INCURRED TO
 MAXIMIZE STUDENTS' ACADEMIC ACHIEVEMENT.
   F. FOUNDATION AID PAYABLE IN THE TWO THOUSAND  EIGHTEEN--TWO  THOUSAND
 NINETEEN  SCHOOL  YEAR.  NOTWITHSTANDING  ANY  PROVISION  OF  LAW TO THE
 CONTRARY, FOUNDATION AID PAYABLE IN THE TWO THOUSAND EIGHTEEN--TWO THOU-
 SAND NINETEEN SCHOOL YEAR SHALL EQUAL THE SUM OF (1) THE FOUNDATION  AID
 BASE PLUS (2) THE GREATER OF (I) THE TWO THOUSAND EIGHTEEN--TWO THOUSAND
 NINETEEN  SCHOOL  YEAR  PHASE-IN INCREASE OR (II) THE TWO THOUSAND EIGH-
 TEEN--TWO THOUSAND NINETEEN SCHOOL YEAR ADDITIONAL INCREASE OR (III) THE
 TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN  SCHOOL  YEAR  DUE  MINIMUM
 PLUS  (3)  THE EXECUTIVE FOUNDATION AID INCREASE, PROVIDED THAT ANY CITY
 SCHOOL DISTRICT IN A CITY WITH A POPULATION OF ONE  HUNDRED  TWENTY-FIVE
 THOUSAND  OR MORE SHALL ONLY BE ELIGIBLE FOR THE TWO THOUSAND EIGHTEEN--
 TWO THOUSAND NINETEEN SCHOOL YEAR PHASE-IN INCREASE. FOR THE PURPOSES OF
 THIS PARAGRAPH, "FOUNDATION  AID  REMAINING"  SHALL  MEAN  THE  POSITIVE
 DIFFERENCE,  IF  ANY, OF (1) THE PRODUCT OF THE TOTAL AIDABLE FOUNDATION
 PUPIL UNITS MULTIPLIED BY THE DISTRICT'S SELECTED  FOUNDATION  AID  LESS
 (2)  THE  TOTAL  FOUNDATION AID BASE COMPUTED PURSUANT TO PARAGRAPH J OF
 SUBDIVISION ONE OF THIS SECTION. FOR THE PURPOSES OF THIS PARAGRAPH:
   (I) THE "TWO THOUSAND  EIGHTEEN--TWO  THOUSAND  NINETEEN  SCHOOL  YEAR
 PHASE-IN  INCREASE"  SHALL  BE  EQUAL  TO  THE PRODUCT OF FOUNDATION AID
 REMAINING MULTIPLIED BY THE GREATER OF THE FOLLOWING  PHASE-IN  PERCENT-
 AGES:
   (A)  ONE  THOUSAND  EIGHT  HUNDRED FORTY-EIGHT ONE HUNDRED THOUSANDTHS
 (0.01848);
   (B) FOR SCHOOL DISTRICTS WHERE (I) THE QUOTIENT ARRIVED AT WHEN DIVID-
 ING FOUNDATION AID REMAINING BY TOTAL FOUNDATION AID IS GREATER THAN ONE
 HALF (0.5) AND (II) WHERE THE DIFFERENCE OF THE THREE YEAR AVERAGE  FREE
 AND  REDUCED  PRICE LUNCH PERCENT FOR THE CURRENT YEAR LESS SUCH AVERAGE
 FOR THE BASE YEAR IS GREATER THAN FOUR ONE-HUNDREDTHS (0.04), FOUR THOU-
 SAND FIVE HUNDRED NINETY-NINE ONE HUNDRED THOUSANDTHS (0.04599);
   (C) FOR SCHOOL DISTRICTS THAT WERE DESIGNATED  AS  SMALL  CITY  SCHOOL
 DISTRICTS OR CENTRAL SCHOOL DISTRICTS WHOSE BOUNDARIES INCLUDE A PORTION
 OF  A  SMALL  CITY  FOR  THE SCHOOL AID COMPUTER LISTING PRODUCED BY THE
 COMMISSIONER IN SUPPORT OF THE ENACTED BUDGET FOR THE TWO THOUSAND FOUR-
 TEEN--TWO THOUSAND FIFTEEN SCHOOL  YEAR  AND  ENTITLED  "SA1415",  THREE
 THOUSAND FOUR HUNDRED NINETY-EIGHT ONE HUNDRED THOUSANDTHS (0.03498);
   (D)  FOR  A  CITY  SCHOOL  DISTRICT IN A CITY WITH A POPULATION OF ONE
 MILLION OR MORE, SEVEN HUNDRED NINETY-THREE TEN THOUSANDTHS (0.0793);

 S. 7509--C                         132                        A. 9509--C
 
   (E) FOR A CITY SCHOOL DISTRICT IN A CITY WITH  A  POPULATION  OF  MORE
 THAN TWO HUNDRED FIFTY THOUSAND BUT LESS THAN ONE MILLION AS OF THE MOST
 RECENT  FEDERAL  DECENNIAL  CENSUS,  EIGHT HUNDRED THREE TEN THOUSANDTHS
 (0.0803);
   (F)  FOR  A  CITY  SCHOOL DISTRICT IN A CITY WITH A POPULATION OF MORE
 THAN TWO HUNDRED THOUSAND BUT LESS THAN TWO HUNDRED FIFTY THOUSAND AS OF
 THE MOST RECENT FEDERAL DECENNIAL CENSUS, FIVE HUNDRED EIGHTY-EIGHT  TEN
 THOUSANDTHS (0.0588);
   (G)  FOR  A  CITY  SCHOOL DISTRICT IN A CITY WITH A POPULATION OF MORE
 THAN ONE HUNDRED FIFTY THOUSAND BUT LESS THAN TWO HUNDRED THOUSAND AS OF
 THE  MOST  RECENT  FEDERAL  DECENNIAL  CENSUS,  SEVENTY-TWO  THOUSANDTHS
 (0.072);
   (H)  FOR  A  CITY  SCHOOL DISTRICT IN A CITY WITH A POPULATION OF MORE
 THAN ONE HUNDRED TWENTY-FIVE THOUSAND BUT LESS THAN  ONE  HUNDRED  FIFTY
 THOUSAND  AS  OF  THE  MOST  RECENT  FEDERAL DECENNIAL CENSUS, ONE-TENTH
 (0.1); OR
   (I) FOR A SCHOOL DISTRICT WHERE THE QUOTIENT ARRIVED AT WHEN  DIVIDING
 FOUNDATION  AID  REMAINING BY TOTAL FOUNDATION AID IS GREATER THAN FOUR-
 TENTHS (0.4), THIRTY-TWO THOUSANDTHS (0.032).
   (II) THE "TWO THOUSAND EIGHTEEN--TWO  THOUSAND  NINETEEN  SCHOOL  YEAR
 ADDITIONAL INCREASE" SHALL EQUAL THE GREATER OF:
   (A)  FOR  SCHOOL DISTRICTS WHERE THE QUOTIENT ARRIVED AT WHEN DIVIDING
 THE ENGLISH LANGUAGE LEARNER COUNT PURSUANT TO PARAGRAPH O  OF  SUBDIVI-
 SION  ONE  OF  THIS SECTION BY PUBLIC SCHOOL DISTRICT ENROLLMENT FOR THE
 BASE YEAR PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF THIS SECTION  IS
 GREATER  THAN THREE HUNDREDTHS (0.03), THE PRODUCT OF SUCH PUBLIC SCHOOL
 DISTRICT ENROLLMENT MULTIPLIED BY THE ELL FACTOR MULTIPLIED  BY  TWENTY-
 EIGHT  DOLLARS  AND  NINETY-TWO  CENTS  ($28.92), WHERE THE "ELL FACTOR"
 SHALL EQUAL THE DIFFERENCE OF THREE LESS  THE  LESSER  OF  THE  COMBINED
 WEALTH  RATIO  FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO PARAGRAPH C
 OF SUBDIVISION THREE OF THIS SECTION OR ONE (1.0);
   (B) FOR SCHOOL DISTRICTS WITH A SPARSITY FACTOR THAT IS  GREATER  THAN
 ZERO, THE PRODUCT OF THE FRPL FACTOR MULTIPLIED BY THE CWR FACTOR MULTI-
 PLIED BY PUBLIC SCHOOL DISTRICT ENROLLMENT FOR THE BASE YEAR PURSUANT TO
 PARAGRAPH N OF SUBDIVISION ONE OF THIS SECTION MULTIPLIED BY ONE HUNDRED
 THIRTY-SEVEN  DOLLARS  AND NINETY-SEVEN CENTS ($137.97), WHERE THE "FRPL
 FACTOR" SHALL EQUAL THE SUM OF ONE-HALF (0.5) PLUS THE  GREATER  OF  THE
 THREE  YEAR AVERAGE FREE AND REDUCED PRICE LUNCH PERCENT FOR THE CURRENT
 YEAR OR SUCH AVERAGE FOR THE BASE YEAR, AND WHERE THE "CWR FACTOR" SHALL
 EQUAL (I) FOR SCHOOL DISTRICTS WITH A COMBINED WEALTH  RATIO  FOR  TOTAL
 FOUNDATION  AID COMPUTED PURSUANT TO PARAGRAPH C OF SUBDIVISION THREE OF
 THIS SECTION LESS THAN FORTY-NINE HUNDREDTHS (0.49), ONE AND THREE-QUAR-
 TERS (1.75), (II) FOR SCHOOL DISTRICTS WITH A COMBINED WEALTH RATIO  FOR
 TOTAL  FOUNDATION  AID  COMPUTED  PURSUANT TO PARAGRAPH C OF SUBDIVISION
 THREE OF THIS SECTION GREATER THAN OR  EQUAL  TO  FORTY-NINE  HUNDREDTHS
 (0.49) BUT LESS THAN ONE (1.0), ONE (1.0), OR (III) FOR SCHOOL DISTRICTS
 WITH  A COMBINED WEALTH RATIO FOR TOTAL FOUNDATION AID COMPUTED PURSUANT
 TO PARAGRAPH C OF SUBDIVISION THREE OF  THIS  SECTION  GREATER  THAN  OR
 EQUAL TO ONE (1.0), THREE-QUARTERS (0.75); OR
   (C)  FOR  SCHOOL  DISTRICTS (1) WHERE THE DIFFERENCE OF THE THREE YEAR
 AVERAGE FREE AND REDUCED PRICE LUNCH PERCENT FOR THE CURRENT  YEAR  LESS
 SUCH  AVERAGE  FOR  THE  BASE  YEAR IS GREATER THAN ONE HUNDRED FIVE TEN
 THOUSANDTHS (0.0105), (2) WITH A COMBINED WEALTH RATIO FOR TOTAL FOUNDA-
 TION AID COMPUTED PURSUANT TO PARAGRAPH C OF SUBDIVISION THREE  OF  THIS
 SECTION  LESS  THAN  NINETY-ONE  HUNDREDTHS  (0.91),  AND  (3) WHERE THE
 QUOTIENT ARRIVED AT WHEN DIVIDING THE FOUNDATION AID  REMAINING  BY  THE

 S. 7509--C                         133                        A. 9509--C
 
 TOTAL FOUNDATION AID IS GREATER THAN TWENTY-THREE HUNDREDTHS (0.23), THE
 PRODUCT  OF  THE  PUBLIC  SCHOOL  DISTRICT  ENROLLMENT FOR THE BASE YEAR
 PURSUANT TO PARAGRAPH H OF SUBDIVISION ONE OF THIS SECTION MULTIPLIED BY
 ONE HUNDRED TWENTY-ONE DOLLARS AND SEVENTY-FIVE CENTS ($121.75).
   (III)  THE  "TWO  THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR
 DUE MINIMUM" SHALL EQUAL THE GREATER OF:
   (A) THE POSITIVE DIFFERENCE, IF ANY, OF THE PRODUCT OF THE  FOUNDATION
 AID  BASE  MULTIPLIED BY NINETEEN THOUSANDTHS (0.019) LESS THE EXECUTIVE
 FOUNDATION AID INCREASE; OR
   (B) THE PRODUCT OF THE EXECUTIVE FOUNDATION AID INCREASE MULTIPLIED BY
 EIGHTEEN HUNDREDTHS (0.18).
   (IV) THE "EXECUTIVE FOUNDATION AID INCREASE" SHALL  BE  EQUAL  TO  THE
 DIFFERENCE  OF  (A)  THE  AMOUNTS  SET FORTH FOR EACH SCHOOL DISTRICT AS
 "FOUNDATION AID" UNDER THE  HEADING  "2018-19  ESTIMATED  AIDS"  IN  THE
 SCHOOL  AID  COMPUTER LISTING PRODUCED BY THE COMMISSIONER IN SUPPORT OF
 THE EXECUTIVE BUDGET REQUEST FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND
 NINETEEN SCHOOL YEAR AND ENTITLED "BT181-9" LESS  (B)  THE  AMOUNTS  SET
 FORTH  FOR  EACH  SCHOOL  DISTRICT AS "FOUNDATION AID" UNDER THE HEADING
 "2017-18 BASE YEAR AIDS" IN SUCH COMPUTER LISTING.
   § 9-c. Intentionally omitted.
   § 9-d. Intentionally omitted.
   § 10. The closing paragraph of subdivision 5-a of section 3602 of  the
 education law, as amended by section 22 of part YYY of chapter 59 of the
 laws of 2017, is amended to read as follows:
   For the two thousand eight--two thousand nine school year, each school
 district  shall  be entitled to an apportionment equal to the product of
 fifteen percent and the additional apportionment  computed  pursuant  to
 this  subdivision  for the two thousand seven--two thousand eight school
 year. For the two thousand nine--two thousand ten through  two  thousand
 [seventeen]  EIGHTEEN--two  thousand  [eighteen]  NINETEEN school years,
 each school district shall be entitled to an apportionment equal to  the
 amount  set  forth  for such school district as "SUPPLEMENTAL PUB EXCESS
 COST" under the heading "2008-09 BASE  YEAR  AIDS"  in  the  school  aid
 computer  listing  produced by the commissioner in support of the budget
 for the two thousand nine--two thousand ten  school  year  and  entitled
 "SA0910".
   §  11. Paragraph b of subdivision 6-c of section 3602 of the education
 law, as amended by section 23 of part YYY of chapter 59 of the  laws  of
 2017, is amended to read as follows:
   b.  For  projects  approved  by the commissioner authorized to receive
 additional building aid pursuant to this subdivision for the purchase of
 stationary metal detectors, security cameras or other  security  devices
 approved  by  the  commissioner that increase the safety of students and
 school personnel, provided that for  purposes  of  this  paragraph  such
 other  security  devices shall be limited to electronic security systems
 and hardened doors, and provided  that  for  projects  approved  by  the
 commissioner on or after the first day of July two thousand thirteen and
 before  the  first day of July two thousand [eighteen] TWENTY-THREE such
 additional aid shall equal the product of (i)  the  building  aid  ratio
 computed for use in the current year pursuant to paragraph c of subdivi-
 sion  six  of this section plus ten percentage points, except that in no
 case shall this amount exceed one hundred percent, and (ii)  the  actual
 approved  expenditures incurred in the base year pursuant to this subdi-
 vision, provided that the limitations on cost allowances  prescribed  by
 paragraph  a  of  subdivision  six  of this section shall not apply, and
 provided further that any projects aided under this  paragraph  must  be

 S. 7509--C                         134                        A. 9509--C
 
 included  in  a  district's  school  safety plan. The commissioner shall
 annually prescribe a special cost allowance  for  metal  detectors,  and
 security  cameras,  and  the approved expenditures shall not exceed such
 cost allowance.
   §  11-a.  Subdivisions b and e of section 11 of part YYY of chapter 59
 of the laws of 2017, amending the education law  relating  to  contracts
 for  excellence  and  the apportionment of public moneys, are amended to
 read as follows:
   b. Penalty eligibility. Only aid penalties  arising  from  late  final
 cost  reports  (1)  (i) for school construction projects approved by the
 commissioner of education prior to July 1, 2011 where such  penalty  has
 not yet been recovered by the commissioner of education or (ii) that are
 already  included  within a multi-year recovery pursuant to a chapter of
 law of the year 2013 or thereafter and  (2)  where  such  total  penalty
 exceeds   [six]  FOUR  one-hundredths  [(0.06)]  (0.04)  of  the  school
 district's total general fund expenditures for  the  base  year  of  the
 notification year, shall be eligible for the provisions of this section.
   e.  Aid  penalty.  For any district with eligible projects pursuant to
 the provisions of this section,  the  commissioner  of  education  shall
 compute a total penalty and shall develop a schedule of no more than ten
 years over which period such penalty shall be recovered, provided that:
   (1)  such  scheduled penalties shall be deducted from the payments due
 to such school district and payable in the month of  June  beginning  in
 the school year after the year in which this section shall have become a
 law  or  the  school year succeeding the notification year, whichever is
 later;
   (2) the amount recovered in the first year of the schedule shall equal
 the sum of (A) [two one-hundredths (0.02)] ONE HUNDRED TWENTY-FIVE  TEN-
 THOUSANDTHS  (0.0125) of such district's total general fund expenditures
 for the year prior to the first year of  such  recovery,  plus  (B)  the
 amount that is recognized as a liability due to other governments by the
 district for the year prior to the first year of such recovery, plus (C)
 the  positive  remainder  of the district's surplus funds, as defined in
 section 1318 of the real property tax law, at  the  close  of  the  year
 prior  to  the  first  year  of  such  recovery  less the product of the
 district's total general fund expenditures for the  year  prior  to  the
 first  year  of  such recovery multiplied by four one-hundredths (0.04),
 provided that the amount recovered in such first year shall  not  exceed
 the portion of the total penalty that has not yet been recovered;
   (3) the amount recovered in each subsequent year shall be recovered by
 deducting  such  excess  payments  from  the payments due to such school
 district and payable in the month of June of subsequent years and  shall
 equal  [two  one-hundredths  (0.02)]  ONE HUNDRED TWENTY-FIVE TEN-THOUS-
 ANDTHS (0.0125) of such district's total general fund  expenditures  for
 the  year  prior  to  the first year of such recovery, provided that the
 amount recovered in each such  subsequent  year  shall  not  exceed  the
 portion of the total penalty that has not yet been recovered;
   (4)  there shall be no interest penalty assessed against such district
 or collected by the state.
   § 12. Subdivision 9 of section 3602 of the education law is amended by
 adding a new paragraph c to read as follows:
   C. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH A OF THIS  SUBDIVISION,
 SCHOOL  DISTRICTS  RECEIVING AN APPORTIONMENT PURSUANT TO PARAGRAPH A OF
 THIS SUBDIVISION IN THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN  OR
 TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR SHALL BE ELIGIBLE
 FOR (A) AN APPORTIONMENT IN THE FOLLOWING SCHOOL YEAR EQUAL TO THE PROD-

 S. 7509--C                         135                        A. 9509--C
 
 UCT OF SIXTY-FIVE PERCENT MULTIPLIED BY THE AID RECEIVED BY THE DISTRICT
 PURSUANT  TO  PARAGRAPH  A OF THIS SUBDIVISION IN THE PRIOR SCHOOL YEAR,
 AND (B) AN APPORTIONMENT IN THE SCHOOL YEAR  AFTER  THE  FOLLOWING  YEAR
 EQUAL  TO  THE  PRODUCT  OF  THIRTY-FIVE  PERCENT  MULTIPLIED BY THE AID
 RECEIVED BY THE DISTRICT PURSUANT TO PARAGRAPH A OF THIS SUBDIVISION  IN
 THE YEAR PRECEDING THE PRIOR YEAR.
   §  13. Subdivision 12 of section 3602 of the education law, as amended
 by section 3 of part A of chapter 56 of the laws  of  2015,  the  fourth
 undesignated  paragraph as added by section 3 of part A of chapter 54 of
 the laws of 2016, the closing paragraph as added by section 24  of  part
 YYY of chapter 59 of the laws of 2017, is amended to read as follows:
   12. Academic enhancement aid. A school district that as of April first
 of  the base year has been continuously identified as a district in need
 of improvement for at least five  years  shall,  for  the  two  thousand
 eight--two  thousand  nine  school  year,  be  entitled to an additional
 apportionment equal to the positive remainder, if any, of (a) the lesser
 of fifteen million dollars or the product of the  total  foundation  aid
 base,  as  defined  by  paragraph  j of subdivision one of this section,
 multiplied by ten percent (0.10), less (b) the positive remainder of (i)
 the sum of the total foundation aid apportioned pursuant to  subdivision
 four of this section and the supplemental educational improvement grants
 apportioned  pursuant to subdivision eight of section thirty-six hundred
 forty-one of this article, less (ii) the total foundation aid base.
   For the two thousand nine--two thousand ten through two thousand four-
 teen--two thousand fifteen school years, each school district  shall  be
 entitled  to  an  apportionment  equal  to the amount set forth for such
 school district as "EDUCATION GRANTS, ACADEMIC  EN"  under  the  heading
 "2008-09  BASE YEAR AIDS" in the school aid computer listing produced by
 the commissioner in support of the budget for the two thousand nine--two
 thousand ten school year and entitled "SA0910", and  such  apportionment
 shall be deemed to satisfy the state obligation to provide an apportion-
 ment  pursuant to subdivision eight of section thirty-six hundred forty-
 one of this article.
   For the two thousand fifteen--two thousand sixteen year,  each  school
 district  shall  be entitled to an apportionment equal to the amount set
 forth for such school district as "ACADEMIC ENHANCEMENT" under the head-
 ing "2014-15 ESTIMATED AIDS" in the school aid computer listing produced
 by the commissioner in support of the budget for the two thousand  four-
 teen--two  thousand fifteen school year and entitled "SA141-5", and such
 apportionment shall be deemed to satisfy the state obligation to provide
 an apportionment pursuant to subdivision  eight  of  section  thirty-six
 hundred forty-one of this article.
   For the two thousand sixteen--two thousand seventeen school year, each
 school  district  shall  be  entitled  to  an apportionment equal to the
 amount set forth for such  school  district  as  "ACADEMIC  ENHANCEMENT"
 under  the  heading  "2015-16 ESTIMATED AIDS" in the school aid computer
 listing produced by the commissioner in support of the  budget  for  the
 two  thousand  fifteen--two  thousand  sixteen  school year and entitled
 "SA151-6", and such apportionment shall be deemed to satisfy  the  state
 obligation  to provide an apportionment pursuant to subdivision eight of
 section thirty-six hundred forty-one of this article.
   For the two thousand seventeen--two  thousand  eighteen  school  year,
 each  school district shall be entitled to an apportionment equal to the
 amount set forth for such  school  district  as  "ACADEMIC  ENHANCEMENT"
 under  the  heading  "2016-17 ESTIMATED AIDS" in the school aid computer
 listing produced by the commissioner in support of the  budget  for  the

 S. 7509--C                         136                        A. 9509--C
 
 two  thousand  sixteen--two  thousand seventeen school year and entitled
 "SA161-7", and such apportionment shall be deemed to satisfy  the  state
 obligation  to provide an apportionment pursuant to subdivision eight of
 section thirty-six hundred forty-one of this article.
   FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR, EACH
 SCHOOL  DISTRICT  SHALL  BE  ENTITLED  TO  AN APPORTIONMENT EQUAL TO THE
 AMOUNT SET FORTH FOR SUCH  SCHOOL  DISTRICT  AS  "ACADEMIC  ENHANCEMENT"
 UNDER  THE  HEADING  "2017-18 ESTIMATED AIDS" IN THE SCHOOL AID COMPUTER
 LISTING PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE  BUDGET  FOR  THE
 TWO  THOUSAND  SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR AND ENTITLED
 "SA171-8", AND SUCH APPORTIONMENT SHALL BE DEEMED TO SATISFY  THE  STATE
 OBLIGATION  TO PROVIDE AN APPORTIONMENT PURSUANT TO SUBDIVISION EIGHT OF
 SECTION THIRTY-SIX HUNDRED FORTY-ONE OF THIS ARTICLE.
   § 14. The opening paragraph of subdivision 16 of section 3602  of  the
 education law, as amended by section 25 of part YYY of chapter 59 of the
 laws of 2017, is amended to read as follows:
   Each  school  district  shall  be  eligible  to receive a high tax aid
 apportionment in the two thousand eight--two thousand nine school  year,
 which  shall equal the greater of (i) the sum of the tier 1 high tax aid
 apportionment, the tier 2 high tax aid apportionment and the tier 3 high
 tax aid apportionment or (ii) the product of the apportionment  received
 by  the school district pursuant to this subdivision in the two thousand
 seven--two thousand eight school year,  multiplied  by  the  due-minimum
 factor,  which shall equal, for districts with an alternate pupil wealth
 ratio computed pursuant to paragraph b  of  subdivision  three  of  this
 section that is less than two, seventy percent (0.70), and for all other
 districts,  fifty percent (0.50). Each school district shall be eligible
 to receive a high tax aid apportionment in the  two  thousand  nine--two
 thousand  ten  through two thousand twelve--two thousand thirteen school
 years in the amount set forth for such school district as "HIGH TAX AID"
 under the heading "2008-09 BASE YEAR AIDS" in the  school  aid  computer
 listing  produced  by  the commissioner in support of the budget for the
 two thousand nine--two thousand ten school year and  entitled  "SA0910".
 Each  school district shall be eligible to receive a high tax aid appor-
 tionment in the two thousand thirteen--two thousand fourteen through two
 thousand [seventeen] EIGHTEEN--two thousand [eighteen]  NINETEEN  school
 years  equal  to the greater of (1) the amount set forth for such school
 district as "HIGH TAX AID" under the heading "2008-09 BASE YEAR AIDS" in
 the school aid computer listing produced by the commissioner in  support
 of  the  budget  for the two thousand nine--two thousand ten school year
 and entitled "SA0910" or (2)  the  amount  set  forth  for  such  school
 district as "HIGH TAX AID" under the heading "2013-14 ESTIMATED AIDS" in
 the  school aid computer listing produced by the commissioner in support
 of the executive  budget  for  the  2013-14  fiscal  year  and  entitled
 "BT131-4".
   § 15. The opening paragraph of subdivision 10 of section 3602-e of the
 education law, as amended by section 26 of part YYY of chapter 59 of the
 laws of 2017, is amended to read as follows:
   Notwithstanding  any  provision  of  law  to the contrary, (i) for aid
 payable in the two thousand eight--two thousand nine  school  year,  the
 grant to each eligible school district for universal prekindergarten aid
 shall  be  computed  pursuant  to this subdivision, and (ii) for the two
 thousand nine--two thousand ten and two thousand ten--two thousand elev-
 en school years, each school district shall be eligible  for  a  maximum
 grant equal to the amount computed for such school district for the base
 year in the electronic data file produced by the commissioner in support

 S. 7509--C                         137                        A. 9509--C
 
 of  the  two thousand nine--two thousand ten education, labor and family
 assistance budget, provided, however, that in the  case  of  a  district
 implementing  programs  for  the  first  time  or implementing expansion
 programs  in the two thousand eight--two thousand nine school year where
 such programs operate for a minimum of ninety days  in  any  one  school
 year  as  provided  in section 151-1.4 of the regulations of the commis-
 sioner, for the two thousand nine--two thousand  ten  and  two  thousand
 ten--two  thousand  eleven  school  years, such school district shall be
 eligible for a maximum grant equal to the amount  computed  pursuant  to
 paragraph  a  of  subdivision  nine  of this section in the two thousand
 eight--two thousand nine school year, and (iii)  for  the  two  thousand
 eleven--two  thousand  twelve  school year each school district shall be
 eligible for a maximum grant equal to the  amount  set  forth  for  such
 school  district as "UNIVERSAL PREKINDERGARTEN" under the heading "2011-
 12 ESTIMATED AIDS" in the school aid computer listing  produced  by  the
 commissioner  in  support  of  the enacted budget for the 2011-12 school
 year and entitled "SA111-2", and (iv) for two thousand twelve--two thou-
 sand thirteen  through  two  thousand  sixteen--two  thousand  seventeen
 school  years each school district shall be eligible for a maximum grant
 equal to the greater of  (A)  the  amount  set  forth  for  such  school
 district  as "UNIVERSAL PREKINDERGARTEN" under the heading "2010-11 BASE
 YEAR AIDS" in the school aid computer listing produced  by  the  commis-
 sioner  in support of the enacted budget for the 2011-12 school year and
 entitled "SA111-2", or (B) the amount set forth for such school district
 as "UNIVERSAL PREKINDERGARTEN" under  the  heading  "2010-11  BASE  YEAR
 AIDS" in the school aid computer listing produced by the commissioner on
 May  fifteenth,  two thousand eleven pursuant to paragraph b of subdivi-
 sion twenty-one of section three hundred five of this chapter,  and  (v)
 for  the  two thousand seventeen--two thousand eighteen AND TWO THOUSAND
 EIGHTEEN--TWO  THOUSAND  NINETEEN  school  [year]  YEARS,  each   school
 district shall be eligible to receive a grant amount equal to the sum of
 (A)  the amount set forth for such school district as "UNIVERSAL PREKIN-
 DERGARTEN" under the heading "2016-17 ESTIMATED AIDS" in the school  aid
 computer  listing produced by the commissioner in support of the enacted
 budget for the two thousand sixteen--two thousand seventeen school  year
 and  entitled  "SA161-7"  plus  (B)  the  amount  awarded to such school
 district for the priority full-day prekindergarten and expanded half-day
 prekindergarten grant program for high need students for the  two  thou-
 sand  sixteen--two  thousand  seventeen  school year pursuant to chapter
 fifty-three of the laws of two thousand thirteen, and (vi) for  the  two
 thousand  [eighteen]  NINETEEN--two  thousand  [nineteen]  TWENTY school
 year, each school district shall be eligible to receive a  grant  amount
 equal to the sum of (A) the amount set forth for such school district as
 "UNIVERSAL  PREKINDERGARTEN" in the school aid computer listing produced
 by the commissioner in support of the enacted budget for the  two  thou-
 sand  [seventeen] EIGHTEEN--two thousand [eighteen] NINETEEN school year
 plus (B) the amount awarded to such  school  district  for  the  federal
 preschool  development  expansion grant for the two thousand seventeen--
 two thousand eighteen school year pursuant to the American Recovery  and
 Reinvestment Act of 2009 (ARRA), Sections 14005, 14006, and 14013, Title
 XIV, (Public Law 112-10), as amended by section 1832(b) of Division B of
 the  Department  of Defense and Full-Year Continuing Appropriations Act,
 2011 (Pub. L. 112-10), and the Department  of  Education  Appropriations
 Act,  2012  (Title  III  Division  F of Pub. L. 112-74, the Consolidated
 Appropriations Act, 2012)[, and (vii) for the two thousand nineteen--two
 thousand twenty school year, each school district shall be  eligible  to

 S. 7509--C                         138                        A. 9509--C

 receive  a grant amount equal to the sum of (A) the amount set forth for
 such school district as "UNIVERSAL PREKINDERGARTEN  ALLOCATION"  on  the
 computer  file  produced  by  the commissioner in support of the enacted
 budget for the two thousand eighteen--two thousand nineteen school year]
 plus  [(B)]  (C)  the  amount  awarded  to  such school district for the
 expanded prekindergarten program for three and four  year-olds  for  the
 two  thousand  eighteen--two  thousand  nineteen school year pursuant to
 chapter sixty-one of the laws of two thousand fifteen plus [(C)] (D) the
 amount awarded to such school district for the expanded  prekindergarten
 for  three-year-olds in high need districts program for the two thousand
 eighteen--two thousand nineteen school year pursuant to  chapter  fifty-
 three  of  the  laws  of  two thousand sixteen plus [(D)] (E) the amount
 awarded to such school district for the expanded prekindergarten program
 for three- and four-year-olds for the two thousand  eighteen--two  thou-
 sand nineteen school year pursuant to a chapter of the laws of two thou-
 sand  seventeen  plus  [(E)]  (F)  the  amount  awarded  to  such school
 district, subject to an available appropriation, through the pre-kinder-
 garten expansion grant for the two thousand eighteen--two thousand nine-
 teen school year,  provided  that  such  school  district  has  met  all
 requirements  pursuant  to  this section, and [(viii)] (VII) for the two
 thousand twenty--two thousand twenty-one  school  year  and  thereafter,
 each  school  district shall be eligible to receive a grant amount equal
 to the sum of (A) the amount set  forth  for  such  school  district  as
 "UNIVERSAL  PREKINDERGARTEN ALLOCATION" on the computer file produced by
 the commissioner in support of the enacted budget  for  the  prior  year
 plus  (B)  the  amount  awarded  to  such school district, subject to an
 available appropriation, through the  pre-kindergarten  expansion  grant
 for  the  prior  year,  provided  that  such school district has met all
 requirements pursuant to this section, and  provided  further  that  the
 maximum  grant  shall  not  exceed  the  total actual grant expenditures
 incurred by the school district in the current school year  as  approved
 by the commissioner.
   § 16. Subparagraphs (ii) and (iii) of paragraph b of subdivision 10 of
 section  3602-e  of  the education law, as amended by section 26 of part
 YYY of chapter 59 of the laws of 2017, are amended to read as follows:
   (ii) "Full-day prekindergarten pupils" shall equal:
   For the two thousand seventeen--two thousand eighteen school year  the
 sum  of,  from  the  priority  full-day prekindergarten program, (A) the
 maximum aidable pupils such district was eligible to serve in  the  base
 year  plus  (B)  the  maximum aidable number of half-day prekindergarten
 pupils converted into a full-day prekindergarten pupil in the base year;
   For the two thousand eighteen--two thousand nineteen school  year  the
 sum  of,  from  [each of (A)] the programs pursuant to this section [and
 (B) the federal preschool development expansion  grant,  (1)],  (A)  the
 maximum aidable full-day prekindergarten pupils such district was eligi-
 ble  to serve in the base year plus [(2)] (B) the maximum aidable number
 of half-day prekindergarten pupils converted into a full-day  prekinder-
 garten pupil in the base year;
   For the two thousand nineteen--two thousand twenty school year the sum
 of,  from  each  of  (A)  the programs pursuant to this section, (B) THE
 FEDERAL PRESCHOOL DEVELOPMENT EXPANSION GRANT, (C) the expanded  prekin-
 dergarten  program,  [(C)]  (D)  the expanded prekindergarten for three-
 year-olds, [(D)] (E) the expanded prekindergarten program for three- and
 four-year-olds, and [(E)] (F) the prekindergarten expansion  grant,  (1)
 the  maximum  aidable  full-day prekindergarten pupils such district was
 eligible to serve in the base year, plus (2) the maximum aidable  number

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 of  half-day prekindergarten pupils converted into a full-day prekinder-
 garten pupil in the base year;
   For  the  two thousand twenty--two thousand twenty-one school year and
 thereafter the sum of, from each of (A) the programs  pursuant  to  this
 section  and  (B)  the pre-kindergarten expansion grant, (1) the maximum
 aidable full-day prekindergarten pupils such district  was  eligible  to
 serve  in the base year, plus (2) the maximum aidable number of half-day
 prekindergarten pupils converted into a full-day  prekindergarten  pupil
 in the base year;
   (iii) "Half-day prekindergarten pupils" shall equal:
   For  the two thousand seventeen--two thousand eighteen school year the
 sum of the maximum aidable half-day prekindergarten pupils such district
 was eligible to serve for the base year from (A) the program pursuant to
 this section plus such pupils from (B) the priority full-day  prekinder-
 garten  program,  less the maximum aidable number of half-day prekinder-
 garten pupils converted into a full-day prekindergarten pupil under  the
 priority full-day prekindergarten program for the base year;
   For  the  two thousand eighteen--two thousand nineteen school year the
 maximum aidable half-day prekindergarten pupils such district was eligi-
 ble to serve for the base year from [(A) the program  pursuant  to  this
 section  less (B) the maximum aidable number of half-day prekindergarten
 pupils converted into a full-day prekindergarten pupil under the federal
 preschool development expansion grant for the  base  year]  THE  PROGRAM
 PURSUANT TO THIS SECTION;
   For the two thousand nineteen--two thousand twenty school year the sum
 of the maximum aidable half-day prekindergarten pupils such district was
 eligible  to  serve  for  the base year from (A) the program pursuant to
 this section plus such pupils  from  (B)  the  expanded  prekindergarten
 program  plus  such  pupils  from  (C)  the expanded prekindergarten for
 three-year-olds plus such pupils from (D) the  expanded  prekindergarten
 program  for  three-  and  four-year-olds  plus such pupils from (E) the
 prekindergarten expansion grant, less the sum  of  the  maximum  aidable
 number  of  half-day  prekindergarten  pupils  converted into a full-day
 prekindergarten pupil under each of (1) THE FEDERAL PRESCHOOL  EXPANSION
 GRANT  FOR  THE BASE YEAR PLUS SUCH PUPILS FROM (2) the expanded prekin-
 dergarten program plus such pupils from [(2)] (3) the  expanded  prekin-
 dergarten  for  three-year-olds  plus  such  pupils  from  [(3)] (4) the
 expanded prekindergarten program for three- and four-year-olds plus such
 pupils from [(4)] (5) the prekindergarten expansion grant for  the  base
 year;
   For  the  two thousand twenty--two thousand twenty-one school year and
 thereafter the sum  of  the  maximum  aidable  half-day  prekindergarten
 pupils  such  district  was eligible to serve for the base year from (A)
 the program pursuant to this section plus such pupils from (B) the  pre-
 kindergarten  expansion  grant, less the maximum aidable number of half-
 day prekindergarten pupils converted  into  a  full-day  prekindergarten
 pupil under the prekindergarten expansion grant for the base year;
   §  17.  The  closing  paragraph  of  paragraph  b of subdivision 10 of
 section 3602-e of the education law, as amended by section  26  of  part
 YYY of chapter 59 of the laws of 2017, is amended to read as follows:
   For the purposes of this paragraph:
   (A) "Priority full-day prekindergarten program" shall mean the priori-
 ty  full-day prekindergarten and expanded half-day prekindergarten grant
 program for high need students pursuant to chapter  fifty-three  of  the
 laws of two thousand thirteen;

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   (B)"Federal  preschool  development  expansion  grant"  shall mean the
 federal preschool development expansion grant pursuant to  the  American
 Recovery and Reinvestment Act of 2009 (ARRA), Sections 14005, 14006, and
 14013,  Title XIV, (Public Law 112-10), as amended by section 1832(b) of
 Division  B of the Department of Defense and Full-Year Continuing Appro-
 priations Act, 2011 (Pub. L. 112-10), and the  Department  of  Education
 Appropriations  Act,  2012 (Title III Division F of Pub. L.  112-74, the
 Consolidated Appropriations Act, 2012);
   (C) "Expanded prekindergarten program" shall mean the expanded prekin-
 dergarten program for three- and  four  year-olds  pursuant  to  chapter
 sixty-one of the laws of two thousand fifteen;
   (D)  "Expanded  prekindergarten  for  three-year-olds"  shall mean the
 expanded prekindergarten for  three-year-olds  in  high  need  districts
 program  pursuant  to  chapter  fifty-three  of the laws of two thousand
 sixteen;
   (E) "Expanded prekindergarten program for three-  and  four-year-olds"
 shall  mean  the  expanded  prekindergarten program for three- and four-
 year-olds pursuant to a chapter of the laws of two thousand seventeen;
   (F) "Prekindergarten expansion grant" shall mean  the  prekindergarten
 expansion  grant  for  the  two thousand eighteen--two thousand nineteen
 school year and thereafter, PURSUANT TO  SUBDIVISION  EIGHTEEN  OF  THIS
 SECTION,  to  the extent such program was available subject to appropri-
 ation, and provided that such school district has met  all  requirements
 pursuant to this section.
   §  18.  Subdivision  11  of  section  3602-e  of the education law, as
 amended by section 27 of part YYY of chapter 59 of the laws of 2017,  is
 amended to read as follows:
   11. Maintenance of effort reduction. Where a school district's current
 year  prekindergarten  pupils  served  is  less than its prekindergarten
 maintenance of effort base, the school district shall have  its  current
 year  apportionment [reduced by] EQUAL TO the product of the maintenance
 of effort factor computed in paragraph b  of  subdivision  ten  of  this
 section multiplied by the grant amount it was eligible to receive pursu-
 ant to subdivision ten of this section.
   §  18-a.  Subdivision  18  of  section 3602-e of the education law, as
 added by section 30 of part YYY of chapter 59 of the laws  of  2017,  is
 amended to read as follows:
   18.  Universal  prekindergarten expansion grants. A. Subject to avail-
 able appropriation, any additional funding for pre-kindergarten  in  the
 two  thousand eighteen--two thousand nineteen school year and thereafter
 shall be made  available  for  additional  grants  for  pre-kindergarten
 programs; PROVIDED THAT SUCH GRANTS SHALL BE AWARDED TO SCHOOL DISTRICTS
 TO  ESTABLISH  NEW FULL-DAY AND HALF-DAY PREKINDERGARTEN PLACEMENTS. ALL
 SCHOOL DISTRICTS SHALL BE ELIGIBLE TO APPLY FOR SUCH GRANTS, WHICH SHALL
 BE AWARDED BASED ON FACTORS INCLUDING, BUT NOT LIMITED TO,  THE  FOLLOW-
 ING:  (I) MEASURES OF SCHOOL DISTRICT NEED, (II) MEASURES OF THE NEED OF
 STUDENTS  TO  BE  SERVED  BY  THE  SCHOOL  DISTRICT,  (III)  THE  SCHOOL
 DISTRICT'S  PROPOSAL  TO  TARGET  THE HIGHEST-NEED SCHOOLS AND STUDENTS,
 (IV) THE EXTENT TO WHICH THE DISTRICT'S PROPOSAL WOULD PRIORITIZE  FUNDS
 TO MAXIMIZE THE TOTAL NUMBER OF ELIGIBLE CHILDREN IN THE DISTRICT SERVED
 IN PREKINDERGARTEN PROGRAMS, AND (V) PROPOSAL QUALITY.
   B.  SUCH  GRANTS SHALL ONLY BE AVAILABLE TO SUPPORT PROGRAMS: (I) THAT
 AGREE TO OFFER INSTRUCTION CONSISTENT WITH  APPLICABLE  NEW  YORK  STATE
 PREKINDERGARTEN EARLY LEARNING STANDARDS; AND (II) THAT OTHERWISE COMPLY
 WITH ALL OF THE SAME RULES AND REQUIREMENTS AS UNIVERSAL PREKINDERGARTEN
 PROGRAMS PURSUANT TO THIS SECTION.

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   C.  A  SCHOOL DISTRICT'S GRANT SHALL EQUAL THE PRODUCT OF: (I) (A) TWO
 MULTIPLIED BY THE APPROVED NUMBER OF NEW FULL-DAY PREKINDERGARTEN PLACE-
 MENTS PLUS (B) THE APPROVED NUMBER OF HALF-DAY PREKINDERGARTEN PLACEMENT
 CONVERSIONS AND NEW HALF-DAY PREKINDERGARTEN PLACEMENTS,  AND  (II)  THE
 DISTRICT'S  SELECTED  AID PER PREKINDERGARTEN PUPIL PURSUANT TO SUBPARA-
 GRAPH (I) OF PARAGRAPH B OF SUBDIVISION TEN OF THIS  SECTION;  PROVIDED,
 HOWEVER,  THAT  NO DISTRICT SHALL RECEIVE A GRANT IN EXCESS OF THE TOTAL
 ACTUAL GRANT EXPENDITURES INCURRED BY THE DISTRICT IN THE CURRENT SCHOOL
 YEAR AS APPROVED BY THE COMMISSIONER.
   § 18-b. Subparagraph (ii) of paragraph (c) of subdivision 8 of section
 3602-ee of the education law, as amended by section 31-a of part YYY  of
 chapter 59 of the laws of 2017, is amended to read as follows:
   (ii)  Provided  that, notwithstanding any provisions of this paragraph
 to the contrary, for the two thousand  seventeen-two  thousand  eighteen
 AND  TWO  THOUSAND EIGHTEEN-TWO THOUSAND NINETEEN school [year] YEARS an
 exemption to the certification requirement of subparagraph (i)  of  this
 paragraph  may  be  made  for  a teacher without certification valid for
 service in the early childhood grades who possesses a  written  plan  to
 obtain  certification  and  who  has  registered in the ASPIRE workforce
 registry as required under regulations of the commissioner of the office
 of children and family services.  Notwithstanding any exemption provided
 by this subparagraph, certification shall be required for employment  no
 later than June thirtieth, two thousand [eighteen] NINETEEN.
   §  19.  Subdivision  16  of  section  3602-ee of the education law, as
 amended by section 31 of part YYY of chapter 59 of the laws of 2017,  is
 amended to read as follows:
   16.  The authority of the department to administer the universal full-
 day pre-kindergarten program shall expire June thirtieth,  two  thousand
 [eighteen] NINETEEN; provided that the program shall continue and remain
 in full effect.
   § 20. Intentionally omitted.
   § 21. The opening paragraph of section 3609-a of the education law, as
 amended  by section 33 of part YYY of chapter 59 of the laws of 2017, is
 amended to read as follows:
   For aid payable in the two thousand seven--two thousand  eight  school
 year  through the two thousand [seventeen] EIGHTEEN--two thousand [eigh-
 teen] NINETEEN school year, "moneys apportioned" shall mean  the  lesser
 of (i) the sum of one hundred percent of the respective amount set forth
 for  each  school  district  as  payable pursuant to this section in the
 school aid computer listing for the current year produced by the commis-
 sioner in support of the budget which includes the appropriation for the
 general support for public schools for the prescribed payments and indi-
 vidualized payments due prior to April first for the current  year  plus
 the  apportionment  payable  during  the current school year pursuant to
 subdivision six-a and subdivision fifteen of section thirty-six  hundred
 two  of  this part minus any reductions to current year aids pursuant to
 subdivision seven of section thirty-six hundred four of this part or any
 deduction from  apportionment  payable  pursuant  to  this  chapter  for
 collection  of a school district basic contribution as defined in subdi-
 vision eight of section forty-four hundred one of this chapter, less any
 grants provided pursuant to subparagraph two-a of paragraph b of  subdi-
 vision  four  of section ninety-two-c of the state finance law, less any
 grants provided pursuant to subdivision six of section ninety-seven-nnnn
 of the state finance law, less any grants provided pursuant to  subdivi-
 sion  twelve of section thirty-six hundred forty-one of this article, or
 (ii) the apportionment calculated by the commissioner based on  data  on

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 file  at  the  time the payment is processed; provided however, that for
 the purposes of any payments made pursuant to this section prior to  the
 first business day of June of the current year, moneys apportioned shall
 not  include any aids payable pursuant to subdivisions six and fourteen,
 if applicable, of section thirty-six hundred two of this part as current
 year aid for debt service on bond anticipation notes and/or bonds  first
 issued in the current year or any aids payable for full-day kindergarten
 for  the current year pursuant to subdivision nine of section thirty-six
 hundred two of this part. The definitions of "base  year"  and  "current
 year"  as set forth in subdivision one of section thirty-six hundred two
 of this part shall apply to this section. For aid  payable  in  the  two
 thousand  [seventeen]  EIGHTEEN--two thousand [eighteen] NINETEEN school
 year, reference to such "school aid computer  listing  for  the  current
 year" shall mean the printouts entitled ["SA171-8"] "SA181-9".
   §  22.  Paragraph  b of subdivision 2 of section 3612 of the education
 law, as amended by section 34 of part YYY of chapter 59 of the  laws  of
 2017, is amended to read as follows:
   b. Such grants shall be awarded to school districts, within the limits
 of funds appropriated therefor, through a competitive process that takes
 into  consideration  the  magnitude  of  any shortage of teachers in the
 school district, the number of teachers employed in the school  district
 who hold temporary licenses to teach in the public schools of the state,
 the  number of provisionally certified teachers, the fiscal capacity and
 geographic sparsity of the district, the  number  of  new  teachers  the
 school district intends to hire in the coming school year and the number
 of summer in the city student internships proposed by an eligible school
 district,  if applicable. Grants provided pursuant to this section shall
 be used only for the purposes enumerated in this section.  Notwithstand-
 ing any other provision of law to the contrary, a city  school  district
 in a city having a population of one million or more inhabitants receiv-
 ing a grant pursuant to this section may use no more than eighty percent
 of  such  grant  funds  for any recruitment, retention and certification
 costs associated with transitional certification of  teacher  candidates
 for  the  school  years  two  thousand one--two thousand two through two
 thousand [seventeen] EIGHTEEN--two thousand [eighteen] NINETEEN.
   § 23. Subdivision 6 of section 4402 of the education law,  as  amended
 by  section 35 of part YYY of chapter 59 of the laws of 2017, is amended
 to read as follows:
   6. Notwithstanding any other law, rule or regulation to the  contrary,
 the  board  of  education of a city school district with a population of
 one hundred twenty-five thousand or more inhabitants shall be  permitted
 to  establish  maximum  class  sizes  for  special  classes  for certain
 students with disabilities in accordance with  the  provisions  of  this
 subdivision. For the purpose of obtaining relief from any adverse fiscal
 impact  from under-utilization of special education resources due to low
 student attendance in  special  education  classes  at  the  middle  and
 secondary level as determined by the commissioner, such boards of educa-
 tion  shall, during the school years nineteen hundred ninety-five--nine-
 ty-six through June thirtieth, two thousand [eighteen] NINETEEN  of  the
 two  thousand  [seventeen]  EIGHTEEN--two  thousand  [eighteen] NINETEEN
 school year, be authorized to increase class sizes  in  special  classes
 containing students with disabilities whose age ranges are equivalent to
 those  of  students  in  middle  and secondary schools as defined by the
 commissioner for purposes of this section by up to but not to exceed one
 and two tenths times the applicable  maximum  class  size  specified  in
 regulations  of the commissioner rounded up to the nearest whole number,

 S. 7509--C                         143                        A. 9509--C
 
 provided that in a city school  district  having  a  population  of  one
 million  or  more, classes that have a maximum class size of fifteen may
 be increased by no more than one student and provided that the projected
 average  class size shall not exceed the maximum specified in the appli-
 cable regulation, provided that such authorization  shall  terminate  on
 June  thirtieth,  two thousand. Such authorization shall be granted upon
 filing of a notice by such a board of education  with  the  commissioner
 stating the board's intention to increase such class sizes and a certif-
 ication  that  the  board will conduct a study of attendance problems at
 the secondary level and will  implement  a  corrective  action  plan  to
 increase  the rate of attendance of students in such classes to at least
 the rate for students attending regular education classes  in  secondary
 schools  of the district. Such corrective action plan shall be submitted
 for approval by the commissioner by a date during  the  school  year  in
 which  such  board  increases  class  sizes as provided pursuant to this
 subdivision to be prescribed by the commissioner. Upon at  least  thirty
 days  notice  to  the board of education, after conclusion of the school
 year in which such board increases class sizes as provided  pursuant  to
 this subdivision, the commissioner shall be authorized to terminate such
 authorization  upon  a  finding  that the board has failed to develop or
 implement an approved corrective action plan.
   § 24. Intentionally omitted.
   § 25. Subdivision b of section 2 of chapter 756 of the laws  of  1992,
 relating  to funding a program for work force education conducted by the
 consortium for worker education in New York city, as amended by  section
 44  of part YYY of chapter 59 of the laws of 2017, is amended to read as
 follows:
   b. Reimbursement for programs approved in accordance with  subdivision
 a  of this section for the [2015--2016 school year shall not exceed 60.7
 percent of the lesser of such approvable costs per contact hour or thir-
 teen dollars and forty cents per contact hour,  reimbursement  for  the]
 2016--2017  school  year  shall not exceed 60.3 percent of the lesser of
 such approvable costs per contact hour or thirteen dollars ninety  cents
 per  contact  hour,  [and]  reimbursement for the 2017--2018 school year
 shall not exceed 60.4 percent of the lesser of such approvable costs per
 contact hour or thirteen dollars and ninety cents per contact hour,  AND
 REIMBURSEMENT  FOR  THE  2018--2019  SCHOOL  YEAR  SHALL NOT EXCEED 59.4
 PERCENT OF THE LESSER OF SUCH APPROVABLE COSTS PER CONTACT HOUR OR FOUR-
 TEEN DOLLARS AND NINETY-FIVE CENTS PER CONTACT  HOUR,  where  a  contact
 hour  represents  sixty  minutes  of instruction services provided to an
 eligible adult.   Notwithstanding any other  provision  of  law  to  the
 contrary,  [for  the 2015--2016 school year such contact hours shall not
 exceed one million five hundred ninety-nine thousand fifteen (1,599,015)
 hours; whereas] for the 2016--2017 school year such contact hours  shall
 not  exceed  one  million  five hundred fifty-one thousand three hundred
 twelve (1,551,312); [and] WHEREAS for the 2017--2018  school  year  such
 contact hours shall not exceed one million five hundred forty-nine thou-
 sand four hundred sixty-three (1,549,463); AND FOR THE 2018--2019 SCHOOL
 YEAR  SUCH  CONTACT  HOURS  SHALL  NOT  EXCEED  ONE MILLION FOUR HUNDRED
 SIXTY-THREE THOUSAND NINE HUNDRED  SIXTY-THREE  (1,463,963).    Notwith-
 standing  any  other provision of law to the contrary, the apportionment
 calculated for the city school district of the city of New York pursuant
 to subdivision 11 of section 3602 of the education law shall be computed
 as if such contact hours provided by the consortium  for  worker  educa-
 tion,  not  to  exceed the contact hours set forth herein, were eligible

 S. 7509--C                         144                        A. 9509--C
 
 for aid in accordance with the provisions  of  such  subdivision  11  of
 section 3602 of the education law.
   §  26. Section 4 of chapter 756 of the laws of 1992, relating to fund-
 ing a program for work force education conducted by the  consortium  for
 worker  education  in New York city, is amended by adding a new subdivi-
 sion w to read as follows:
   W. THE PROVISIONS OF  THIS  SUBDIVISION  SHALL  NOT  APPLY  AFTER  THE
 COMPLETION  OF  PAYMENTS FOR THE 2018--2019 SCHOOL YEAR. NOTWITHSTANDING
 ANY INCONSISTENT PROVISIONS OF LAW, THE COMMISSIONER OF EDUCATION  SHALL
 WITHHOLD  A  PORTION  OF EMPLOYMENT PREPARATION EDUCATION AID DUE TO THE
 CITY SCHOOL DISTRICT OF THE CITY OF NEW YORK TO SUPPORT A PORTION OF THE
 COSTS OF THE WORK FORCE EDUCATION PROGRAM. SUCH MONEYS SHALL BE CREDITED
 TO THE ELEMENTARY AND SECONDARY EDUCATION FUND-LOCAL ASSISTANCE  ACCOUNT
 AND SHALL NOT EXCEED THIRTEEN MILLION DOLLARS ($13,000,000).
   §  27. Section 6 of chapter 756 of the laws of 1992, relating to fund-
 ing a program for work force education conducted by the  consortium  for
 worker  education in New York city, as amended by section 46 of part YYY
 of chapter 59 of the laws of 2017, is amended to read as follows:
   § 6. This act shall take effect July 1,  1992,  and  shall  be  deemed
 repealed on June 30, [2018] 2019.
   §  27-a. Paragraph a-1 of subdivision 11 of section 3602 of the educa-
 tion law, as amended by section 60 of part YYY of chapter 59 of the laws
 of 2017, is amended to read as follows:
   a-1. Notwithstanding the provisions of paragraph a  of  this  subdivi-
 sion, for aid payable in the school years two thousand--two thousand one
 through  two  thousand nine--two thousand ten, and two thousand eleven--
 two thousand twelve through two thousand [seventeen] EIGHTEEN--two thou-
 sand [eighteen] NINETEEN, the commissioner may set aside an  amount  not
 to  exceed  two  million  five  hundred  thousand dollars from the funds
 appropriated for purposes of this subdivision for the purpose of serving
 persons twenty-one years of age or older who have not been  enrolled  in
 any  school  for  the  preceding school year, including persons who have
 received a high school diploma or high school  equivalency  diploma  but
 fail  to  demonstrate basic educational competencies as defined in regu-
 lation by the  commissioner,  when  measured  by  accepted  standardized
 tests, and who shall be eligible to attend employment preparation educa-
 tion programs operated pursuant to this subdivision.
   §  28. Subdivisions 22 and 24 of section 140 of chapter 82 of the laws
 of 1995, amending the education law and certain other laws  relating  to
 state  aid  to  school  districts and the appropriation of funds for the
 support of government, as amended by section 47 of part YYY  of  chapter
 59 of the laws of 2017, are amended to read as follows:
   (22)  sections  one  hundred twelve, one hundred thirteen, one hundred
 fourteen, one hundred fifteen and one hundred sixteen of this act  shall
 take effect on July 1, 1995; provided, however, that section one hundred
 thirteen of this act shall remain in full force and effect until July 1,
 [2018] 2019 at which time it shall be deemed repealed;
   (24)  sections one hundred eighteen through one hundred thirty of this
 act shall be deemed to have been in full force and effect on  and  after
 July 1, 1995; provided further, however, that the amendments made pursu-
 ant to section one hundred twenty-four of this act shall be deemed to be
 repealed on and after July 1, [2018] 2019;
   § 29. Intentionally omitted.
   § 30. Section 8 of chapter 89 of the laws of 2016, relating to supple-
 mentary funding for dedicated programs for public school students in the

 S. 7509--C                         145                        A. 9509--C
 
 East  Ramapo  central  school district, as amended by section 49 of part
 YYY of chapter 59 of the laws of 2017, is amended to read as follows:
   §  8.  This act shall take effect July 1, 2016 and shall expire and be
 deemed repealed June 30, [2018]  2019,  EXCEPT  THAT  PARAGRAPH  (B)  OF
 SECTION  FIVE OF THIS ACT AND SECTION SEVEN OF THIS ACT SHALL EXPIRE AND
 BE DEEMED REPEALED JUNE 30, 2021.
   § 31. Section 12 of chapter 147 of the  laws  of  2001,  amending  the
 education  law  relating  to conditional appointment of school district,
 charter school or BOCES employees, as amended by section 50 of part  YYY
 of chapter 59 of the laws of 2017, is amended to read as follows:
   §  12.  This  act shall take effect on the same date as chapter 180 of
 the laws of 2000 takes effect, and shall expire July 1, [2018] 2019 when
 upon such date the provisions of this act shall be deemed repealed.
   § 32. Subdivision 1 of section 167 of chapter 169 of the laws of 1994,
 relating to certain provisions related to the 1994-95 state  operations,
 aid to localities, capital projects and debt service budgets, as amended
 by section 32 of part A of chapter 54 of the laws of 2016, is amended to
 read as follows:
   1.  Sections  one  through seventy of this act shall be deemed to have
 been in full force and effect as of April  1,  1994  provided,  however,
 that  sections  one,  two,  twenty-four,  twenty-five  and  twenty-seven
 through seventy of this act shall expire and be deemed repealed on March
 31, 2000; provided, however, that section twenty of this act shall apply
 only to hearings commenced prior to  September  1,  1994,  and  provided
 further  that  section twenty-six of this act shall expire and be deemed
 repealed on March 31, 1997; and  provided  further  that  sections  four
 through fourteen, sixteen, and eighteen, nineteen and twenty-one through
 twenty-one-a  of  this  act shall expire and be deemed repealed on March
 31, 1997; and provided further that sections three, fifteen,  seventeen,
 twenty,  twenty-two  and  twenty-three  of  this act shall expire and be
 deemed repealed on March 31, [2018] 2020.
   § 33. Section 4 of chapter 425 of  the  laws  of  2002,  amending  the
 education  law  relating  to  the  provision of supplemental educational
 services, attendance at a safe  public  school  and  the  suspension  of
 pupils  who  bring  a  firearm  to  or possess a firearm at a school, as
 amended by section 12 of part YYY of chapter 59 of the laws of 2017,  is
 amended to read as follows:
   §  4.  This act shall take effect July 1, 2002 and shall expire and be
 deemed repealed June 30, [2018] 2019.
   § 34. Section 5 of chapter 101 of  the  laws  of  2003,  amending  the
 education law relating to the implementation of the No Child Left Behind
 Act  of  2001, as amended by section 13 of part YYY of chapter 59 of the
 laws of 2017, is amended to read as follows:
   § 5. This act shall take effect immediately;  provided  that  sections
 one,  two  and  three of this act shall expire and be deemed repealed on
 June 30, [2018] 2019.
   § 35. Section 2 of subpart B of part AA of chapter 56 of the  laws  of
 2014, amending the education law relating to providing that standardized
 test  scores  shall  not be included on a student's permanent record, is
 amended to read as follows:
   § 2. This act shall take effect immediately and shall  expire  and  be
 deemed repealed on December 31, [2018] 2019.
   § 36. School bus driver training. In addition to apportionments other-
 wise  provided  by section 3602 of the education law, for aid payable in
 the 2018-2019 school year, the commissioner of education shall  allocate
 school  bus  driver  training  grants  to school districts and boards of

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 cooperative educational services pursuant to sections 3650-a, 3650-b and
 3650-c of the education law, or for contracts directly with not-for-pro-
 fit educational organizations for the purposes  of  this  section.  Such
 payments  shall  not exceed four hundred thousand dollars ($400,000) per
 school year.
   § 37. Special apportionment for salary  expenses.  a.  Notwithstanding
 any  other  provision  of  law,  upon application to the commissioner of
 education, not sooner than the first day of  the  second  full  business
 week  of  June  2019  and  not later than the last day of the third full
 business week of June 2019, a school district eligible for an apportion-
 ment pursuant to section 3602 of the education law shall be eligible  to
 receive  an  apportionment pursuant to this section, for the school year
 ending June 30, 2019, for salary expenses incurred between April  1  and
 June 30, 2018 and such apportionment shall not exceed the sum of (i) the
 deficit  reduction assessment of 1990--1991 as determined by the commis-
 sioner of education, pursuant to paragraph f of subdivision 1 of section
 3602 of the education law, as in effect through June 30, 1993, plus (ii)
 186 percent of such amount for a city school district in a city  with  a
 population in excess of 1,000,000 inhabitants, plus (iii) 209 percent of
 such  amount  for  a city school district in a city with a population of
 more than 195,000 inhabitants and less than 219,000 inhabitants  accord-
 ing  to  the  latest  federal  census, plus (iv) the net gap elimination
 adjustment for 2010--2011, as determined by the commissioner  of  educa-
 tion pursuant to chapter 53 of the laws of 2010, plus (v) the gap elimi-
 nation  adjustment  for  2011--2012 as determined by the commissioner of
 education pursuant to subdivision 17 of section 3602  of  the  education
 law,  and provided further that such apportionment shall not exceed such
 salary expenses. Such application shall be made by  a  school  district,
 after the board of education or trustees have adopted a resolution to do
 so and in the case of a city school district in a city with a population
 in excess of 125,000 inhabitants, with the approval of the mayor of such
 city.
   b.  The  claim  for  an  apportionment to be paid to a school district
 pursuant to subdivision a of this section  shall  be  submitted  to  the
 commissioner  of  education  on  a form prescribed for such purpose, and
 shall be payable upon determination by such commissioner that  the  form
 has been submitted as prescribed. Such approved amounts shall be payable
 on  the  same  day in September of the school year following the year in
 which application was made as funds provided  pursuant  to  subparagraph
 (4) of paragraph b of subdivision 4 of section 92-c of the state finance
 law,  on  the  audit  and  warrant  of the state comptroller on vouchers
 certified or approved by the commissioner of  education  in  the  manner
 prescribed  by  law  from  moneys in the state lottery fund and from the
 general fund to the extent that the amount paid  to  a  school  district
 pursuant  to  this  section  exceeds the amount, if any, due such school
 district pursuant to subparagraph (2) of paragraph a of subdivision 1 of
 section 3609-a of the education law in the  school  year  following  the
 year in which application was made.
   c.  Notwithstanding  the provisions of section 3609-a of the education
 law, an amount equal to the amount paid to a school district pursuant to
 subdivisions a and b of this section shall first be  deducted  from  the
 following  payments  due  the  school  district  during  the school year
 following the year in which application was made  pursuant  to  subpara-
 graphs  (1),  (2),  (3),  (4) and (5) of paragraph a of subdivision 1 of
 section 3609-a of the education law in the following order: the  lottery
 apportionment  payable  pursuant  to  subparagraph (2) of such paragraph

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 followed by the fixed fall payments payable pursuant to subparagraph (4)
 of such paragraph and then followed by the district's  payments  to  the
 teachers'  retirement  system pursuant to subparagraph (1) of such para-
 graph, and any remainder to be deducted from the individualized payments
 due  the  district  pursuant to paragraph b of such subdivision shall be
 deducted on a chronological basis starting with the earliest payment due
 the district.
   § 38. Special apportionment for public pension accruals.  a.  Notwith-
 standing any other provision of law, upon application to the commission-
 er  of education, not later than June 30, 2019, a school district eligi-
 ble for an apportionment pursuant to section 3602 of the  education  law
 shall  be eligible to receive an apportionment pursuant to this section,
 for the school year ending June 30, 2019 and  such  apportionment  shall
 not  exceed  the  additional  accruals  required  to  be  made by school
 districts in the 2004--2005 and 2005--2006 school years associated  with
 changes  for  such  public pension liabilities. The amount of such addi-
 tional accrual shall be certified to the commissioner  of  education  by
 the  president of the board of education or the trustees or, in the case
 of a city school district in a city  with  a  population  in  excess  of
 125,000  inhabitants,  the mayor of such city. Such application shall be
 made by a school district, after the board of education or trustees have
 adopted a resolution to do so and in the case of a city school  district
 in  a  city with a population in excess of 125,000 inhabitants, with the
 approval of the mayor of such city.
   b. The claim for an apportionment to be  paid  to  a  school  district
 pursuant  to  subdivision  a  of  this section shall be submitted to the
 commissioner of education on a form prescribed  for  such  purpose,  and
 shall  be  payable upon determination by such commissioner that the form
 has been submitted as prescribed. Such approved amounts shall be payable
 on the same day in September of the school year following  the  year  in
 which  application  was  made as funds provided pursuant to subparagraph
 (4) of paragraph b of subdivision 4 of section 92-c of the state finance
 law, on the audit and warrant  of  the  state  comptroller  on  vouchers
 certified  or  approved  by  the commissioner of education in the manner
 prescribed by law from moneys in the state lottery  fund  and  from  the
 general  fund  to  the  extent that the amount paid to a school district
 pursuant to this section exceeds the amount, if  any,  due  such  school
 district pursuant to subparagraph (2) of paragraph a of subdivision 1 of
 section  3609-a  of  the  education law in the school year following the
 year in which application was made.
   c. Notwithstanding the provisions of section 3609-a of  the  education
 law, an amount equal to the amount paid to a school district pursuant to
 subdivisions  a  and  b of this section shall first be deducted from the
 following payments due  the  school  district  during  the  school  year
 following  the  year  in which application was made pursuant to subpara-
 graphs (1), (2), (3), (4) and (5) of paragraph a  of  subdivision  1  of
 section  3609-a of the education law in the following order: the lottery
 apportionment payable pursuant to subparagraph  (2)  of  such  paragraph
 followed by the fixed fall payments payable pursuant to subparagraph (4)
 of  such  paragraph  and then followed by the district's payments to the
 teachers' retirement system pursuant to subparagraph (1) of  such  para-
 graph, and any remainder to be deducted from the individualized payments
 due  the  district  pursuant to paragraph b of such subdivision shall be
 deducted on a chronological basis starting with the earliest payment due
 the district.

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   § 39. a. Notwithstanding any other law,  rule  or  regulation  to  the
 contrary,  any moneys appropriated to the state education department may
 be suballocated to other state departments or agencies,  as  needed,  to
 accomplish the intent of the specific appropriations contained therein.
   b.  Notwithstanding any other law, rule or regulation to the contrary,
 moneys appropriated to the state education department from  the  general
 fund/aid  to  localities,  local  assistance  account-001,  shall be for
 payment of financial assistance, as  scheduled,  net  of  disallowances,
 refunds, reimbursement and credits.
   c.  Notwithstanding any other law, rule or regulation to the contrary,
 all moneys appropriated to the state education  department  for  aid  to
 localities shall be available for payment of aid heretofore or hereafter
 to  accrue  and may be suballocated to other departments and agencies to
 accomplish the intent of the specific appropriations contained therein.
   d. Notwithstanding any other law, rule or regulation to the  contrary,
 moneys  appropriated  to  the  state  education  department  for general
 support for public schools may be interchanged with any  other  item  of
 appropriation  for general support for public schools within the general
 fund local assistance account office of  prekindergarten  through  grade
 twelve education programs.
   § 40. Notwithstanding the provision of any law, rule, or regulation to
 the  contrary,  the  city school district of the city of Rochester, upon
 the consent of the board of  cooperative  educational  services  of  the
 supervisory  district  serving  its  geographic region may purchase from
 such board for the 2018--2019 school year,  as  a  non-component  school
 district, services required by article 19 of the education law.
   §  41.  The amounts specified in this section shall be a setaside from
 the state funds which each such district is  receiving  from  the  total
 foundation aid:
   a.  for the development, maintenance or expansion of magnet schools or
 magnet school programs for the 2018--2019  school  year.  For  the  city
 school  district  of  the  city of New York there shall be a setaside of
 foundation aid equal to forty-eight  million  one  hundred  seventy-five
 thousand  dollars  ($48,175,000) including five hundred thousand dollars
 ($500,000) for the Andrew Jackson High  School;  for  the  Buffalo  city
 school   district,   twenty-one  million  twenty-five  thousand  dollars
 ($21,025,000); for the Rochester city school district,  fifteen  million
 dollars  ($15,000,000);  for the Syracuse city school district, thirteen
 million dollars ($13,000,000); for the  Yonkers  city  school  district,
 forty-nine  million five hundred thousand dollars ($49,500,000); for the
 Newburgh city school district, four million six hundred forty-five thou-
 sand dollars ($4,645,000); for the Poughkeepsie  city  school  district,
 two million four hundred seventy-five thousand dollars ($2,475,000); for
 the Mount Vernon city school district, two million dollars ($2,000,000);
 for  the New Rochelle city school district, one million four hundred ten
 thousand dollars ($1,410,000); for the Schenectady city school district,
 one million eight hundred thousand dollars ($1,800,000);  for  the  Port
 Chester  city  school  district,  one million one hundred fifty thousand
 dollars ($1,150,000); for the White Plains city  school  district,  nine
 hundred  thousand  dollars ($900,000); for the Niagara Falls city school
 district, six hundred thousand dollars ($600,000); for the  Albany  city
 school  district,  three  million  five  hundred  fifty thousand dollars
 ($3,550,000); for the Utica city school district,  two  million  dollars
 ($2,000,000);  for  the Beacon city school district, five hundred sixty-
 six  thousand  dollars  ($566,000);  for  the  Middletown  city   school
 district,  four  hundred  thousand  dollars ($400,000); for the Freeport

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 union free school district, four hundred  thousand  dollars  ($400,000);
 for  the  Greenburgh  central  school  district,  three hundred thousand
 dollars ($300,000);  for  the  Amsterdam  city  school  district,  eight
 hundred  thousand  dollars  ($800,000);  for  the  Peekskill city school
 district, two hundred thousand dollars ($200,000); and  for  the  Hudson
 city school district, four hundred thousand dollars ($400,000).
   b.  Notwithstanding any inconsistent provision of law to the contrary,
 a school district setting aside such foundation  aid  pursuant  to  this
 section  may  use  such  setaside  funds  for:  (i) any instructional or
 instructional support costs associated with the operation  of  a  magnet
 school; or (ii) any instructional or instructional support costs associ-
 ated with implementation of an alternative approach to promote diversity
 and/or enhancement of the instructional program and raising of standards
 in  elementary and secondary schools of school districts having substan-
 tial concentrations of minority students.
   c. The commissioner of education shall not be authorized  to  withhold
 foundation aid from a school district that used such funds in accordance
 with  this  paragraph,  notwithstanding any inconsistency with a request
 for proposals issued by such commissioner for the purpose of  attendance
 improvement  and  dropout prevention for the 2018--2019 school year, and
 for any city school district in a city having a population of more  than
 one  million,  the  setaside  for  attendance  improvement  and  dropout
 prevention shall equal the amount set aside in the base  year.  For  the
 2018--2019  school  year,  it  is  further provided that any city school
 district in a city having a population of more than  one  million  shall
 allocate  at  least  one-third  of any increase from base year levels in
 funds set aside pursuant to the requirements of this section to communi-
 ty-based organizations. Any increase required pursuant to  this  section
 to  community-based  organizations  must  be  in addition to allocations
 provided to community-based organizations in the base year.
   d. For the purpose of teacher support for the 2018--2019 school  year:
 for  the city school district of the city of New York, sixty-two million
 seven hundred seven thousand dollars ($62,707,000); for the Buffalo city
 school district, one million seven hundred  forty-one  thousand  dollars
 ($1,741,000); for the Rochester city school district, one million seven-
 ty-six  thousand  dollars  ($1,076,000);  for  the  Yonkers  city school
 district,  one  million  one  hundred   forty-seven   thousand   dollars
 ($1,147,000);  and  for the Syracuse city school district, eight hundred
 nine thousand dollars ($809,000). All funds made available to  a  school
 district  pursuant  to  this section shall be distributed among teachers
 including prekindergarten teachers and teachers of adult vocational  and
 academic  subjects in accordance with this section and shall be in addi-
 tion to salaries heretofore or hereafter negotiated or  made  available;
 provided,  however,  that all funds distributed pursuant to this section
 for the current year shall be deemed to incorporate all  funds  distrib-
 uted  pursuant to former subdivision 27 of section 3602 of the education
 law for prior years. In school districts where the teachers are  repres-
 ented  by  certified  or  recognized  employee organizations, all salary
 increases funded pursuant to this section shall be determined  by  sepa-
 rate  collective  negotiations  conducted pursuant to the provisions and
 procedures of article 14 of the civil service law,  notwithstanding  the
 existence  of  a  negotiated  agreement  between a school district and a
 certified or recognized employee organization.
   § 42. Support of public libraries. The  moneys  appropriated  for  the
 support  of  public  libraries by a chapter of the laws of 2017 enacting
 the aid to localities budget shall  be  apportioned  for  the  2018-2019

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 state  fiscal  year  in  accordance with the provisions of sections 271,
 272, 273, 282, 284, and 285 of the  education  law  as  amended  by  the
 provisions  of this chapter and the provisions of this section, provided
 that library construction aid pursuant to section 273-a of the education
 law  shall  not  be  payable  from the appropriations for the support of
 public libraries and provided further that no library, library system or
 program, as defined by the commissioner of education, shall receive less
 total system or program aid than it  received  for  the  year  2001-2002
 except as a result of a reduction adjustment necessary to conform to the
 appropriations for support of public libraries.
   Notwithstanding  any other provision of law to the contrary the moneys
 appropriated for the support of public libraries for the year  2018-2019
 by a chapter of the laws of 2018 enacting the education, labor and fami-
 ly  assistance  budget  shall  fulfill the state's obligation to provide
 such aid and, pursuant to a plan developed by the commissioner of educa-
 tion and approved by the director of the  budget,  the  aid  payable  to
 libraries  and  library systems pursuant to such appropriations shall be
 reduced proportionately to assure that the total amount of  aid  payable
 does not exceed the total appropriations for such purpose.
   § 42-a. Subdivision a of section 5 of chapter 121 of the laws of 1996,
 relating  to  authorizing  the  Roosevelt  union free school district to
 finance deficits by the issuance of serial bonds, as amended by  section
 38  of part YYY of chapter 59 of the laws of 2017, is amended to read as
 follows:
   a. Notwithstanding any other provisions of law,  upon  application  to
 the  commissioner of education submitted not sooner than April first and
 not later than June thirtieth of the applicable school year, the  Roose-
 velt  union  free school district shall be eligible to receive an appor-
 tionment pursuant to this chapter for salary expenses, including related
 benefits, incurred between April first and June thirtieth of such school
 year.  Such apportionment shall not exceed: for the 1996-97 school  year
 through   the  [2017-18]  2018-19  school  year,  four  million  dollars
 ($4,000,000); for the  [2018-19]  2019-20  school  year,  three  million
 dollars ($3,000,000); for the [2019-20] 2020-21 school year, two million
 dollars ($2,000,000); for the [2020-21] 2021-22 school year, one million
 dollars  ($1,000,000);  and  for the [2021-22] 2022-23 school year, zero
 dollars.   Such annual application shall be  made  after  the  board  of
 education  has  adopted  a  resolution to do so with the approval of the
 commissioner of education.
   § 42-b. Subdivision 4 of section 3627 of the education law, as amended
 by section 53 of part A of chapter 54 of the laws of 2016, is amended to
 read as follows:
   4. Notwithstanding any other provision of law  to  the  contrary,  any
 expenditures for transportation provided pursuant to this section in the
 two  thousand thirteen--two thousand fourteen school year and thereafter
 and otherwise eligible for transportation aid  pursuant  to  subdivision
 seven of section thirty-six hundred two of this article shall be consid-
 ered  approved  transportation expenses eligible for transportation aid,
 provided further that for the two thousand thirteen--two thousand  four-
 teen  school year such aid shall be limited to eight million one hundred
 thousand dollars and for the two thousand fourteen--two thousand fifteen
 school year such aid shall be limited to the sum of twelve  million  six
 hundred  thousand  dollars plus the base amount and for the two thousand
 fifteen--two thousand sixteen school year and thereafter such aid  shall
 be  limited  to  the  sum  of  [seventeen]  EIGHTEEN million [one] EIGHT
 hundred AND FIFTY thousand dollars plus the base amount. For purposes of

 S. 7509--C                         151                        A. 9509--C
 
 this subdivision, "base amount" means the amount of  transportation  aid
 paid  to  the school district for expenditures incurred in the two thou-
 sand twelve--two thousand thirteen school year for  transportation  that
 would  have  been  eligible  for  aid  pursuant to this section had this
 section been in effect in such school year, except that subdivision  six
 of this section shall be deemed not to have been in effect. And provided
 further  that  the school district shall continue to annually expend for
 the transportation described in subdivision one of this section at least
 the expenditures used for the base amount.
   § 43. Severability. The provisions of this act shall be severable, and
 if the application of  any  clause,  sentence,  paragraph,  subdivision,
 section  or  part  of  this  act  to any person or circumstance shall be
 adjudged by any court of competent  jurisdiction  to  be  invalid,  such
 judgment shall not necessarily affect, impair or invalidate the applica-
 tion of any such clause, sentence, paragraph, subdivision, section, part
 of  this  act  or  remainder  thereof,  as the case may be, to any other
 person or circumstance, but shall be confined in its  operation  to  the
 clause,  sentence,  paragraph,  subdivision,  section  or  part  thereof
 directly involved in the controversy in which such judgment  shall  have
 been rendered.
   §  44.  This act shall take effect immediately, and shall be deemed to
 have been in full force and effect on and after April 1, 2018; provided,
 however, that:
   1. Sections one, nine, nine-a, nine-b, ten, eleven, twelve,  thirteen,
 fourteen,  fifteen,  sixteen, seventeen, eighteen, nineteen, twenty-one,
 twenty-two, twenty-three, thirty-six, forty and forty-one  of  this  act
 shall take effect July 1, 2018; and
   2.    Sections  four and four-a of this act shall expire and be deemed
 repealed June 30, 2023; and
   3. The amendments to chapter 756 of the  laws  of  1992,  relating  to
 funding  a  program for work force education conducted by the consortium
 for worker education in New York city made by sections  twenty-five  and
 twenty-six  of  this act shall not affect the repeal of such chapter and
 shall be deemed repealed therewith; and
   4. Section twenty-eight of this act shall be deemed to  have  been  in
 full  force and effect on and after the effective date of section 140 of
 chapter 82 of the laws of 1995; and
   5.  The amendments to paragraph b-1 of subdivision 4 of  section  3602
 of the education law made by section nine-b of this act shall not affect
 the expiration of such paragraph and shall expire therewith.
 
                                 PART DDD
 
   Section  1.  Paragraph  (c) of subdivision 2 of section 1 of part A of
 chapter 85 of the laws of 2017, relating to creating the  Lake  Ontario-
 St.  Lawrence  Seaway  flood recovery and International Joint Commission
 Plan 2014 mitigation grant program, as amended by section 2 of part J of
 chapter 61 of the laws of 2017, is amended to read as follows:
   (c) The New York state urban development corporation shall  administer
 this  grant program, which shall not exceed in the aggregate $15,000,000
 PLUS ANY FUNDS DIRECTED FROM THE PROGRAMS AUTHORIZED IN  SUBDIVISIONS  3
 AND  4  OF THIS SECTION. Such corporation and other relevant state agen-
 cies and state authorities  are  hereby  empowered  to  establish  grant
 guidelines  and  additional  eligibility criteria as deemed necessary to
 effectuate the administration of this program. Any grant guidelines  and
 eligibility  criteria  established  by  the corporation pursuant to this

 S. 7509--C                         152                        A. 9509--C
 
 subdivision shall be equivalent to, and shall not  be  more  restrictive
 than,  those  established by the New York State Urban Development Corpo-
 ration, doing business as the Empire State Development  Corporation,  in
 the  grant  programs it administered pursuant to part H of chapter 56 of
 the laws of 2011. In providing assistance pursuant to this  subdivision,
 the  New  York state urban development corporation shall give preference
 to applicants that demonstrate the greatest  need,  based  on  available
 flood damage data provided by applicable state and/or federal agencies.
   §  2. Paragraph (c) of subdivision 3 of section 1 of part A of chapter
 85 of the laws of  2017,  relating  to  creating  the  Lake  Ontario-St.
 Lawrence  Seaway  flood recovery and International Joint Commission Plan
 2014 mitigation grant program, as amended by section  2  of  part  J  of
 chapter 61 of the laws of 2017, is amended to read as follows:
   (c)  The  affordable  housing  corporation shall administer this grant
 program, which shall not exceed in the aggregate  $15,000,000  PLUS  ANY
 FUNDS  DIRECTED  FROM THE PROGRAMS AUTHORIZED IN SUBDIVISIONS 2 AND 4 OF
 THIS SECTION. Such corporation and other relevant state agency or  state
 authorities are hereby empowered to establish grant guidelines and addi-
 tional eligibility criteria as deemed necessary to effectuate the admin-
 istration  of this program.  Any grant guidelines and eligibility crite-
 ria established by the corporation pursuant to this subdivision shall be
 equivalent to, and shall not be more restrictive than, those established
 by the New York State Urban Development Corporation, doing  business  as
 the  Empire  State  Development  Corporation,  in  the grant programs it
 administered pursuant to part H of chapter 56 of the laws of 2011.    In
 providing  assistance pursuant to this subdivision, the affordable hous-
 ing corporation shall give preference to applicants that demonstrate the
 greatest need, based on available flood damage data provided by applica-
 ble state and/or federal agencies.
   § 3. Paragraph (c) of subdivision 4 of section 1 of part A of  chapter
 85  of  the  laws  of  2017,  relating  to creating the Lake Ontario-St.
 Lawrence Seaway flood recovery and International Joint  Commission  Plan
 2014  mitigation  grant  program,  as  amended by section 2 of part J of
 chapter 61 of the laws of 2017, is amended to read as follows:
   (c) The housing trust fund corporation  shall  administer  this  grant
 program,  which  shall  not exceed in the aggregate $15,000,000 PLUS ANY
 FUNDS DIRECTED FROM THE PROGRAMS AUTHORIZED IN SUBDIVISIONS 2 AND  3  OF
 THIS  SECTION.  Such  corporation,  and other relevant state agencies or
 state authorities, is hereby empowered to establish grant guidelines and
 additional eligibility criteria, based on available  flood  damage  data
 provided by applicable state and/or federal agencies, as it deems neces-
 sary to effectuate the administration of this program.  Any grant guide-
 lines  and  eligibility criteria established by the corporation pursuant
 to this subdivision shall be  equivalent  to,  and  shall  not  be  more
 restrictive than, those established by the New York State Urban Develop-
 ment  Corporation, doing business as the Empire State Development Corpo-
 ration, in the grant programs it administered  pursuant  to  part  H  of
 chapter  56  of  the laws of 2011.   In providing assistance pursuant to
 this subdivision, the corporation shall give  preference  to  applicants
 that demonstrate the greatest need, based on available flood damage data
 provided by applicable state and/or federal agencies.
   § 4. This act shall take effect immediately.
 
                                 PART EEE

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   Section  1.  The  tax department shall be required to set up an online
 application system for taxpayers to submit claims for reimbursements  of
 payments  of interest on fixed and final determinations of underpayments
 of federal tax liability for the 2019, 2020 and 2021 tax year that arise
 from the taxpayers' reliance on amendments to the tax law enacted in the
 year  2018.  In  order to receive such reimbursement, taxpayers shall be
 required to submit their reimbursement claims to the department of taxa-
 tion and finance within 60 days of making their payments of interest  to
 the internal revenue service.
   § 2. This act shall take effect immediately.
 
                                 PART FFF
 
   Section  1.  This Part enacts into law major components of legislation
 relating to the conversion of certain entities  that  have  been  issued
 certificates  of  authority pursuant to article forty-four of the public
 health law. Each component is wholly contained within a Subpart  identi-
 fied  as  Subparts  A  and  B.  The  effective  date for each particular
 provision contained within such Subpart is set forth in the last section
 of such Subpart.  Any  provision  in  any  section  contained  within  a
 Subpart,  including  the  effective  date  of the Subpart, which makes 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 corre-
 sponding section of the Subpart in which it is found. Section  three  of
 this Part sets forth the general effective date of this Part.
 
                                 SUBPART A

   Section  1.  The  state finance law is amended by adding a new section
 92-hh to read as follows:
   § 92-HH. HEALTH CARE TRANSFORMATION FUND. 1. THERE  IS  HEREBY  ESTAB-
 LISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSION-
 ER OF TAXATION AND FINANCE A FUND TO BE KNOWN AS THE "HEALTH CARE TRANS-
 FORMATION FUND".
   2.  SUCH FUND SHALL CONSIST OF MONEYS PAID THERETO FROM (A) CONTINGENT
 RESERVES REDEPLOYED PURSUANT TO SECTION FORTY-FOUR  HUNDRED  SIXTEEN  OF
 THE  PUBLIC  HEALTH LAW, (B) MONEYS TRANSFERRED TO SUCH FUND PURSUANT TO
 LAW, AND (C) CONTRIBUTIONS, CONSISTING OF GRANTS OF ANY MONEY, INCLUDING
 GRANTS OR OTHER FINANCIAL ASSISTANCE FROM ANY AGENCY  OF  GOVERNMENT  OR
 ANY OTHER SOURCE, TO BE PAID INTO THIS FUND.
   3.  MONEYS  IN THE HEALTH CARE TRANSFORMATION FUND SHALL BE KEPT SEPA-
 RATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF
 THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE.
   4. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, MONEYS OF THE
 HEALTH CARE TRANSFORMATION FUND SHALL BE AVAILABLE FOR TRANSFER  TO  ANY
 OTHER  FUND  OF  THE STATE AS AUTHORIZED AND DIRECTED BY THE DIRECTOR OF
 THE BUDGET TO  SUPPORT  HEALTH  CARE  DELIVERY,  INCLUDING  FOR  CAPITAL
 INVESTMENT,  DEBT  RETIREMENT OR RESTRUCTURING, HOUSING AND OTHER SOCIAL
 DETERMINANTS OF HEALTH, OR TRANSITIONAL OPERATING SUPPORT TO HEALTH CARE
 PROVIDERS.
   5. WITHIN FIFTEEN DAYS AFTER EXECUTING  OR  MODIFYING  AN  ALLOCATION,
 TRANSFER,  DISTRIBUTION  OR  OTHER USE OF THE HEALTH CARE TRANSFORMATION
 FUND, THE COMMISSIONER SHALL PROVIDE WRITTEN NOTICE TO THE CHAIRS OF THE
 SENATE FINANCE COMMITTEE, THE ASSEMBLY WAYS  AND  MEANS  COMMITTEE,  THE
 SENATE  AND  ASSEMBLY INSURANCE COMMITTEES, AND THE SENATE AND  ASSEMBLY
 HEALTH COMMITTEES. SUCH NOTICE SHALL INCLUDE, BUT SHALL NOT  BE  LIMITED

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 TO,  INFORMATION  ON  THE  AMOUNT,  DATE, AND PURPOSE OF THE ALLOCATION,
 TRANSFER, DISTRIBUTION, OR  OTHER  USE,  AND  THE  METHODOLOGY  USED  TO
 DISTRIBUTE THE MONEYS.
   6.  THE  DIRECTOR OF THE BUDGET SHALL PROVIDE QUARTERLY REPORTS TO THE
 CHAIR OF THE  SENATE FINANCE COMMITTEE AND THE  CHAIR  OF  THE  ASSEMBLY
 WAYS AND MEANS COMMITTEE ON THE RECEIPTS AND DISTRIBUTIONS OF THE HEALTH
 CARE TRANSFORMATION FUND, INCLUDING AN ITEMIZATION  OF SUCH RECEIPTS AND
 DISBURSEMENTS,  THE  HISTORICAL  AND  PROJECTED  EXPENDITURES,  AND  THE
 PROJECTED FUND BALANCE.
   § 2. This act shall take effect immediately.
 
                                 SUBPART B
 
   Section 1. The public health law is amended by adding  a  new  section
 4416 to read as follows:
   §  4416.  EXCESS RESERVES OF CERTAIN HEALTH MAINTENANCE ORGANIZATIONS.
 1. THE COMMISSIONER IS AUTHORIZED TO REQUIRE  ANY  COMPREHENSIVE  HEALTH
 SERVICES  PLAN  ISSUED  A SPECIAL PURPOSE CERTIFICATE OF AUTHORITY UNDER
 SECTION FORTY-FOUR HUNDRED THREE-A OF THIS ARTICLE, THAT  SATISFIES  THE
 DEFINITION  OF  CORPORATION  IN  SUBPARAGRAPH  FIVE  OF PARAGRAPH (A) OF
 SECTION ONE HUNDRED TWO OF THE  NOT-FOR-PROFIT  CORPORATION  LAW  OR  IS
 EXEMPT  FROM TAXATION UNDER SECTION 501 OF THE INTERNAL  REVENUE CODE OF
 1986 TO SUBMIT ALL FINANCIAL AND OTHER BOOKS AND RECORDS THE COMMISSION-
 ER DEEMS NECESSARY IN ORDER TO EVALUATE AN ORGANIZATION'S RESERVES.  THE
 COMMISSIONER, IN CONSULTATION WITH THE SUPERINTENDENT OF THE  DEPARTMENT
 OF  FINANCIAL  SERVICES,  SHALL EXAMINE SUCH BOOKS AND RECORDS AND SHALL
 ISSUE A REPORT ON THE HEALTH MAINTENANCE  ORGANIZATION'S  RESERVES.    A
 REQUEST  UNDER  THIS SECTION MAY BE MADE NO MORE THAN TWO TIMES PER YEAR
 PER PLAN.
   2. EXCEPT FOR ANY PUBLIC  BENEFIT  CORPORATION,  THE  COMMISSIONER  IS
 AUTHORIZED  TO PROMULGATE REGULATIONS ESTABLISHING A PRESUMPTIVE RESERVE
 CEILING FOR ANY COMPREHENSIVE HEALTH  SERVICES  PLAN  ISSUED  A  SPECIAL
 PURPOSE  CERTIFICATE  OF  AUTHORITY  UNDER  SECTION  FORTY-FOUR  HUNDRED
 THREE-A OF THIS ARTICLE THAT SATISFIES THE DEFINITION OF CORPORATION  IN
 SUBPARAGRAPH  FIVE  OF  PARAGRAPH  (A) OF SECTION ONE HUNDRED TWO OF THE
 NOT-FOR-PROFIT CORPORATION LAW OR THAT IS  EXEMPT  FROM  TAXATION  UNDER
 SECTION 501 OF THE INTERNAL REVENUE CODE OF 1986. SUCH REGULATIONS SHALL
 EXPRESS  THE  PRESUMPTIVE RESERVE CEILING AS A PERCENTAGE OF THE MINIMUM
 CONTINGENT RESERVES APPLICABLE TO SUCH HEALTH MAINTENANCE ORGANIZATIONS.
 THE PRESUMPTIVE RESERVE CEILING SHALL BE NO LESS THAN ONE HUNDRED  FIFTY
 PERCENT  OF THE MINIMUM CONTINGENT RESERVES APPLICABLE TO SUCH PLANS. IN
 THE EVENT THAT THE COMMISSIONER DETERMINES THAT A PLAN SUBJECT  TO  THIS
 SUBDIVISION  HAS  RESERVES  IN EXCESS OF THE PRESUMPTIVE RESERVE CEILING
 FOR TWO CONSECUTIVE QUARTERS, THE COMMISSIONER MAY  MAKE  A  PRELIMINARY
 DETERMINATION  THAT  ALL  OR A PORTION OF SUCH RESERVES IN EXCESS OF THE
 CEILING SHOULD BE REDEPLOYED BY DEPOSITING SUCH EXCESS RESERVES  IN  THE
 HEALTH  CARE  TRANSFORMATION  FUND PURSUANT TO SUBDIVISION THREE OF THIS
 SECTION. PRIOR TO MAKING A PRELIMINARY DETERMINATION,  THE  COMMISSIONER
 SHALL  CONSIDER  WHETHER  SUCH REDEPLOYMENT IS CONSISTENT WITH FINANCIAL
 SOUNDNESS AND EFFICIENCY AND TO THE EXTENT TO WHICH  SUCH  RESERVES  ARE
 BEING  MAINTAINED  CONSISTENT  WITH THE PROGRAMMATIC GOALS OF THE STATE.
 UPON MAKING SUCH A PRELIMINARY DETERMINATION, THE DEPARTMENT SHALL NOTI-
 FY THE PLAN AND THE PLAN SHALL BE  AFFORDED  AN  OPPORTUNITY  TO  SUBMIT
 INFORMATION  TO THE DEPARTMENT TO JUSTIFY WHY SUCH RESERVES IN EXCESS OF
 THE CEILING ARE NECESSARY AND SHOULD NOT BE  SO  REDEPLOYED.    PROVIDED

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 HOWEVER,  UNDER NO CIRCUMSTANCES SHALL THE REDEPLOYMENT OF SUCH RESERVES
 FOR ANY PLAN EXCEED SEVEN HUNDRED AND FIFTY MILLION DOLLARS ANNUALLY.
   3.  IF,  AFTER  CONSIDERING THE INFORMATION SUBMITTED BY THE PLAN, THE
 COMMISSIONER ADHERES TO THE PRELIMINARY DETERMINATION THAT THE  RESERVES
 IN  EXCESS  OF  THE CEILING SHOULD BE REDEPLOYED, THE COMMISSIONER SHALL
 DIRECT THAT SUCH RESERVES BE DEPOSITED TO THE HEALTH CARE TRANSFORMATION
 FUND ESTABLISHED PURSUANT TO SECTION NINETY-TWO-HH OF THE STATE  FINANCE
 LAW  OR ITS SUCCESSOR TO BE USED FOR INVESTMENT IN THE TRANSFORMATION OF
 HEALTH CARE DELIVERY, INCLUDING FOR CAPITAL INVESTMENT, DEBT  RETIREMENT
 OR  RESTRUCTURING,  HOUSING  AND OTHER SOCIAL DETERMINANTS OF HEALTH, OR
 TRANSITIONAL OPERATING SUPPORT TO HEALTH CARE PROVIDERS, PURSUANT  TO  A
 PLAN  PREPARED  BY  THE COMMISSIONER AND APPROVED BY THE DIRECTOR OF THE
 DIVISION OF THE BUDGET.
   4. NOTWITHSTANDING ANY LAW TO THE CONTRARY, ON OR AFTER AUGUST  FIRST,
 TWO  THOUSAND  EIGHTEEN  NO  ENTITY  SUBJECT  TO SUBDIVISION TWO OF THIS
 SECTION SHALL TRANSFER OR LOAN ANY FUNDS TO ANY SUBSIDIARY OR MEMBER  OF
 THE  ENTITY'S HOLDING COMPANY SYSTEM OR TO A MEMBER OR STOCKHOLDER WHERE
 A PURPOSE OF THE TRANSFER OR LOAN IS TO AVOID THE  APPLICATION  OF  THIS
 SECTION.
   § 2. This act shall take effect August 1, 2018 and shall expire and be
 deemed  repealed  August  1, 2023, but, shall not apply to any entity or
 any subsidiary or affiliate of such entity that disposes  of  all  or  a
 material  portion  of its assets pursuant to a transaction that: (1) was
 the subject of a request for  regulatory  approval  first  made  to  the
 commissioner  of  health between January 1, 2017, and December 31, 2017;
 and (2) receives regulatory approval from  the  commissioner  of  health
 prior to July 31, 2018.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or subpart 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  subpart  thereof  directly involved in the controversy in which such
 judgment shall have been rendered. It  is  hereby  declared  to  be  the
 intent  of the legislature that this act would have been enacted even if
 such invalid provisions had not been included herein.
   § 3. This act shall take effect immediately  provided,  however,  that
 the  applicable effective date of Subparts A and B of this Part shall be
 as specifically set forth in the last section of such Subparts.

                                 PART GGG
 
   Section 1. The opening paragraph of subdivision 3 of  section  5-a  of
 the  legislative law, as amended by section 1 of part S of chapter 57 of
 the laws of 2016, is amended to read as follows:
   Any member of the assembly serving in a special capacity in a position
 set forth in the following schedule shall  be  paid  the  allowance  set
 forth  in such schedule only for the legislative term commencing January
 first, two thousand [seventeen] NINETEEN and terminating December  thir-
 ty-first, two thousand [eighteen] TWENTY:
   §  2.  Section  13  of  chapter  141 of the laws of 1994, amending the
 legislative law and the state finance law relating to the operation  and
 administration of the legislature, as amended by section 1 of part CC of
 chapter 55 of the laws of 2017, is amended to read as follows:
   §  13.  This  act shall take effect immediately and shall be deemed to
 have been in full force and effect as of April 1, 1994,  provided  that,

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 the  provisions  of  section  5-a  of  the legislative law as amended by
 sections two and two-a of this act shall take effect on January 1, 1995,
 and provided further that, the provisions of article 5-A of the legisla-
 tive  law  as  added  by section eight of this act shall expire June 30,
 [2018] 2019 when upon such date the provisions of such article shall  be
 deemed  repealed;  and  provided further that section twelve of this act
 shall be deemed to have been in full force and effect on and after April
 10, 1994.
   § 3. This act shall take effect  immediately,  provided,  however,  if
 section  two  of  this  act  shall take effect on or after June 30, 2018
 section two of this act shall be deemed to have been in full  force  and
 effect on and after June 30, 2018.
 
                                 PART HHH
 
   Section  1.  There  is  hereby established a compensation committee to
 examine, evaluate and make  recommendations  with  respect  to  adequate
 levels  of compensation, non-salary benefits, and allowances pursuant to
 section 5-a of the legislative law,  for  members  of  the  legislature,
 statewide  elected  officials,  and  those state officers referred to in
 section 169 of the executive law. The committee shall  be  comprised  of
 the  chief  judge of the state of New York, the comptroller of the state
 of New York, the chairman of the State University of New York  board  of
 trustees and 52nd comptroller for the state of New York, the comptroller
 for the city of New York, and the chairman of the city university of New
 York board of trustees and 42nd comptroller for the city of New York.
   §  2.  1. In accordance with the provisions of this act, the committee
 shall examine the prevailing adequacy of pay levels, allowances pursuant
 to section 5-a of the legislative law, and  other  non-salary  benefits,
 for  members  of the legislature, statewide elected officials, and those
 state officers referred to in section 169 of the executive law.
   2. The committee shall determine whether,  on  January  1,  2019,  the
 annual  salary  and  allowances of members of the legislature, statewide
 elected officials, and salaries of state officers referred to in section
 169 of the executive law, warrant an increase.
   3. In discharging its responsibilities under subdivision two  of  this
 section,  the  committee shall take into account all appropriate factors
 including, but not limited  to:  the  parties'  performance  and  timely
 fulfillment  of their statutory and Constitutional responsibilities; the
 overall economic climate; rates of inflation; changes  in  public-sector
 spending; the levels of compensation and non-salary benefits received by
 executive  branch  officials  and legislators of other states and of the
 federal government; the levels of compensation and  non-salary  benefits
 received by comparable professionals in government, academia and private
 and  nonprofit  enterprise; the ability to attract talent in competition
 with comparable private sector positions; and  the  state's  ability  to
 fund increases in compensation and non-salary benefits.
   4.  a.  The  committee  may  implement cost-of-living adjustments that
 apply annually and/or phase-in salary adjustments annually for 3  years,
 provided  that no such adjustment shall be implemented beyond January 1,
 2021.
   b. Any phase-in of a salary increase or cost of living adjustment will
 be conditioned upon performance of the executive and legislative  branch
 and  upon the timely legislative passage of the budget for the preceding
 year.

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   c. For purposes of paragraph b of this subdivision, the term "legisla-
 tive passage of the budget" shall have the same meaning  as  defined  in
 subdivision 3 of section 5 of the legislative law.
   §  3.  1. The committee shall only meet within the state and must hold
 at least one hearing at which the public will be afforded an opportunity
 to provide comments.  The committee may hold additional public  hearings
 as it deems necessary. Such additional hearings, if any, may allow for a
 public comment period.
   2.  The  members  of  the  committee shall receive no compensation for
 their services but shall be allowed their actual and necessary  expenses
 incurred  in  the  performance  of  their  duties  hereunder.    Nothing
 contained herein shall prohibit a member of the committee from receiving
 his or her salary earned by reason of their state employee position. The
 members of the committee shall perform the duties herein personally,  no
 delegation of authority or attendance is allowed.
   3.  No  member of the committee shall be disqualified from holding any
 other public office or employment, nor shall he or she forfeit any  such
 office  or  employment  by  reason of his or her appointment pursuant to
 this section, notwithstanding the provisions of any general, special  or
 local law, regulation, ordinance or city charter.
   4.  To the maximum extent feasible, the committee shall be entitled to
 request and receive and shall utilize and be provided with such  facili-
 ties,  resources  and  data  of  any court, department, division, board,
 bureau, committee, agency or public authority of the state or any  poli-
 tical subdivision thereof as it may reasonably request to properly carry
 out its powers and duties pursuant to this act.
   5. The committee may request, and shall receive, reasonable assistance
 from  state  agency personnel as is necessary for the performance of its
 function.
   § 4. 1. The committee shall make a report  to  the  governor  and  the
 legislature of its findings, conclusions, determinations and recommenda-
 tions,  if  any, and should submit such report by December 10, 2018. Any
 findings, conclusions, determinations and recommendations in the  report
 must be adopted by a majority vote of the committee.  Each member of the
 committee shall report their vote and describe their reasoning for their
 determination.
   2.  Each  recommendation made to implement a determination pursuant to
 section two of this act shall have the force of law,  and  shall  super-
 sede,  where  appropriate, inconsistent provisions of section 169 of the
 executive law, and sections 5 and 5-a of  the  legislative  law,  unless
 modified  or  abrogated by statute prior to January first of the year as
 to which such determination applies to legislative and executive compen-
 sation.
   § 5. Date of  entitlement  to  salary  increase.  Notwithstanding  the
 provisions of this act or of any other law, each phase of an increase in
 salary  or compensation of any member, official, or officer provided for
 by this act shall be added to the salary or compensation of such member,
 statewide elected official, or officer at the beginning of that  payroll
 period  the  first  day  of  which  is nearest to, but not prior to, the
 effective date of such increase as provided  in  this  act.  The  annual
 salaries  as prescribed pursuant to this act, whenever adjusted pursuant
 to the provisions of this act, shall be rounded to the nearest  multiple
 of one hundred dollars.
   §  6.  Notwithstanding  Part  E of chapter 60 of the laws of 2015, the
 committee established pursuant to this act, while  in  existence,  shall
 make all determinations of legislative salaries and allowances and sala-

 S. 7509--C                         158                        A. 9509--C
 
 ries  of  statewide  elected officials and those officers referred to in
 section 169 of the executive law.  Upon  the  repeal  of  the  committee
 created  by this act, the commission established under Part E of chapter
 60  of  the  laws  of 2015 shall resume its responsibility to review and
 examine such salaries and allowances in accordance  with  the  terms  of
 such Part E.
   §  7.  This  act shall take effect immediately and shall expire and be
 deemed repealed December 31, 2018; provided,  however,  any  recommenda-
 tions  of  the  committee  that have been determined prior to such date,
 including 3 annual cost of living or salary adjustments, shall  continue
 to be in effect until amended or repealed by a subsequent recommendation
 of the commission on legislative, judicial and executive compensation or
 by passage of a new statute.
 
                                 PART III
 
   Section  1.  Section  5  of part HH of chapter 59 of the laws of 2014,
 amending the tax law relating to a  musical  and  theatrical  production
 credit, 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] 8 years after such date.
   § 2. This act shall take effect immediately.
 
                                 PART JJJ
 
   Section 1. Short title. This act shall be known an may be cited as the
 "Democracy Protection Act".
   §  2.  Section  14-100  of the election law is amended by adding a new
 subdivision 17 to read as follows:
   17. "FOREIGN NATIONAL" MEANS FOREIGN NATIONAL AS SUCH TERM IS  DEFINED
 BY  SUBSECTION  (B)  OF  SECTION  30121 OF TITLE 52 OF THE UNITED STATES
 CODE.
   § 3. Section 14-106 of the election law, as amended by  section  3  of
 subpart  C  of  part  H of chapter 55 of the laws of 2014, is amended to
 read as follows:
   § 14-106. Political communication. The statements required to be filed
 under the provisions of this article next succeeding a primary,  general
 or  special  election  shall  be accompanied by a copy of all broadcast,
 cable or satellite schedules and scripts, [internet]  PAID  INTERNET  OR
 DIGITAL,  print and other types of advertisements, pamphlets, circulars,
 flyers, brochures, letterheads and other  printed  matter  purchased  or
 produced,  and  reproductions  of statements or information published to
 five hundred or more members of a general public audience by computer or
 other electronic device including but not limited to electronic mail  or
 text message, purchased in connection with such election by or under the
 authority  of  the  person  filing the statement or the committee or the
 person on whose behalf it is filed, as the case  may  be.  Such  copies,
 schedules and scripts shall be preserved by the officer with whom or the
 board  with  which  it  is required to be filed for a period of one year
 from the date of filing thereof.

 S. 7509--C                         159                        A. 9509--C
 
   § 4. Paragraph (a) of subdivision 1 of section 14-107 of the  election
 law,  as  amended  by  section 1 of part A of chapter 286 of the laws of
 2016, is amended to read as follows:
   (a)  "Independent  expenditure"  means an expenditure made by an inde-
 pendent expenditure committee [conveyed to five hundred or more  members
 of  a  general  public  audience]  in  the form of (i) an audio or video
 communication via broadcast, cable or satellite, (ii) a written communi-
 cation via  advertisements,  pamphlets,  circulars,  flyers,  brochures,
 letterheads  or (iii) other published statements, WHERE SUCH EXPENDITURE
 IS CONVEYED TO FIVE HUNDRED OR MORE MEMBERS OF A  GENERAL  PUBLIC  AUDI-
 ENCE,  OR  IN  THE  FORM  OF  ANY PAID INTERNET OR DIGITAL ADVERTISEMENT
 TARGETED TO FIFTY OR MORE MEMBERS OF A GENERAL PUBLIC  AUDIENCE,  which:
 (i) irrespective of when such communication is made, contains words such
 as  "vote,"  "oppose,"  "support," "elect," "defeat," or "reject," which
 call for the election or defeat of  the  clearly  identified  candidate,
 (ii)  refers to and advocates for or against a clearly identified candi-
 date or ballot proposal on or after January first of  the  year  of  the
 election  in  which  such  candidate  is seeking office or such proposal
 shall appear on the ballot, or (iii) within sixty days before a  general
 or  special  election  for  the office sought by the candidate or thirty
 days before a primary election, includes or references a clearly identi-
 fied candidate.  An independent expenditure shall not  include  communi-
 cations where such candidate, the candidate's political committee or its
 agents,  a  party committee or its agents, or a constituted committee or
 its agents or a political committee formed to  promote  the  success  or
 defeat  of  a  ballot  proposal  or  its agents, did authorize, request,
 suggest, foster or cooperate in such communication.
   § 5. Subdivision 2 of section 14-107 of the election law,  as  amended
 by section 2 of part A of chapter 286 of the laws of 2016, is amended to
 read as follows:
   2.  Whenever  any  person makes an independent expenditure [that costs
 one thousand dollars or more in the aggregate], such communication shall
 clearly state the  name  of  the  person  who  paid  for,  or  otherwise
 published  or  distributed  the communication and state, with respect to
 communications regarding candidates,  that  the  communication  was  not
 expressly  authorized  or  requested  by any candidate, or by any candi-
 date's political committee or any of its agents.
   § 6. The opening paragraph of subdivision 3 of section 14-107  of  the
 election  law,  as  amended by section 3 of part A of chapter 286 of the
 laws of 2016, is amended to read as follows:
   Any person prior to making any  independent  expenditure  shall  first
 register  with the state board of elections as a political committee and
 as an independent expenditure committee in conformance with this article
 PROVIDED, HOWEVER, THAT NO FOREIGN NATIONAL, GOVERNMENT, INSTRUMENTALITY
 OR AGENT MAY REGISTER AS AN INDEPENDENT EXPENDITURE  COMMITTEE  FOR  THE
 PURPOSE  OF  MAKING  INDEPENDENT  EXPENDITURES  IN  ANY  STATE  OR LOCAL
 ELECTION. Such person  shall  comply  with  all  disclosure  obligations
 required for political committees by law and shall provide the following
 additional information upon registration:
   §  7.  Subparagraph  (i)  of paragraph (a) of subdivision 4 of section
 14-107 of the election law, as added by section 4 of part A  of  chapter
 286 of the laws of 2016, is amended to read as follows:
   (i)  Any independent expenditure committee who has registered pursuant
 to subdivision three of this section shall disclose to the  state  board
 of  elections  electronically, once a week on Monday any contribution to
 such committee of one thousand dollars or more [or],  ANY  expenditures,

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 EXCEPT  PAID  INTERNET AND DIGITAL ADVERTISEMENTS, MADE by such [person]
 COMMITTEE over five thousand dollars, AND ANY INDEPENDENT EXPENDITURE IN
 THE FORM OF A PAID INTERNET OR DIGITAL ADVERTISEMENT OVER  FIVE  HUNDRED
 DOLLARS made during the reporting period.
   §  8.  Subparagraph  (ii) of paragraph (a) of subdivision 4 of section
 14-107 of the election law, as added by section 4 of part A  of  chapter
 286 of the laws of 2016, is amended to read as follows:
   (ii) Any independent expenditure committee who has registered with the
 state  board  of elections pursuant to subdivision three of this section
 shall disclose to the state board of  elections  electronically,  within
 twenty-four  hours  [of  receipt],  any contribution to such independent
 expenditure committee of one thousand dollars  or  more  OR  EXPENDITURE
 MADE  BY  SUCH  COMMITTEE  OVER FIVE THOUSAND DOLLARS made within thirty
 days before any primary, general, or special election.
   § 9. Subdivision 5 of section 14-107 of the election law, as added  by
 section  4  of subpart C of part H of chapter 55 of the laws of 2014, is
 amended to read as follows:
   5. A copy of all political communications paid for by the  independent
 expenditure,  including but not limited to broadcast, cable or satellite
 schedules and scripts,  advertisements,  pamphlets,  circulars,  flyers,
 brochures, letterheads and other printed matter and statements or infor-
 mation  conveyed  to  one  thousand  or more members of a general public
 audience by computer or other electronic devices, AND PAID  INTERNET  OR
 DIGITAL ADVERTISEMENTS, shall be filed with the state board of elections
 with the statements required by this section.
   §  10.  Section  14-107 of the election law is amended by adding a new
 subdivision 5-a to read as follows:
   5-A. THE STATE BOARD OF ELECTIONS SHALL MAINTAIN  AND  MAKE  AVAILABLE
 ONLINE  FOR  PUBLIC  INSPECTION IN A MACHINE READABLE FORMAT, A COMPLETE
 RECORD OF ANY INDEPENDENT EXPENDITURE IN THE FORM OF A PAID INTERNET  OR
 DIGITAL  ADVERTISEMENT  REQUIRED  TO  BE FILED UNDER SUBDIVISION FIVE OF
 THIS SECTION. THE RECORD SHALL BE MAINTAINED FOR A PERIOD NO  LESS  THAN
 FIVE  YEARS  FROM  THE  DATE OF FILING AND CONTAIN A DIGITAL COPY OF THE
 INDEPENDENT EXPENDITURE AND THE INFORMATION PROVIDED ON THE REGISTRATION
 FORM OF THE INDEPENDENT EXPENDITURE COMMITTEE  MAKING  SUCH  EXPENDITURE
 PURSUANT TO PARAGRAPHS (A) AND (B) OF SUBDIVISION THREE OF THIS SECTION.
 THE  STATE BOARD OF ELECTIONS SHALL PROMULGATE RULES NECESSARY TO COMPLY
 WITH THE PROVISIONS OF THIS SUBDIVISION  WHICH  SHALL  BE  EFFECTIVE  NO
 LATER  THAN  ONE  HUNDRED  TWENTY  DAYS AFTER THE EFFECTIVE DATE OF THIS
 SUBDIVISION.
   § 11. The election law is amended by adding a new section 14-107-b  to
 read as follows:
   § 14-107-B. INDEPENDENT EXPENDITURE VERIFICATION. 1. UPON THE PURCHASE
 OF A COMMUNICATION IN THE FORM OF AN INDEPENDENT EXPENDITURE, AS DEFINED
 IN  SECTION  14-107  OF THIS ARTICLE, EACH TELEVISION OR RADIO BROADCAST
 STATION, PROVIDER OF CABLE OR SATELLITE TELEVISION, OR  ONLINE  PLATFORM
 SHALL  REQUIRE  THAT  THE  INDEPENDENT EXPENDITURE COMMITTEE MAKING SUCH
 PURCHASE FILE WITH SUCH STATION, PROVIDER OR  PLATFORM  A  COPY  OF  THE
 REGISTRATION  FORM  FILED  BY  SUCH  COMMITTEE  WITH  THE STATE BOARD OF
 ELECTIONS PURSUANT TO SUBDIVISION THREE OF SECTION 14-107 OF THIS  ARTI-
 CLE.
   2.  THE STATE BOARD OF ELECTIONS SHALL PROMULGATE REGULATIONS DEFINING
 THE SCOPE OF THE TERM "ONLINE PLATFORM" AS  USED  IN  THIS  SECTION.  IN
 PROMULGATING  SUCH  REGULATIONS, THE STATE BOARD SHALL TAKE INTO ACCOUNT
 THE NUMBER OF UNIQUE UNITED STATES VISITORS  TO  THE  PLATFORM  AND  THE
 EXTENT TO WHICH THE PLATFORM PUBLISHES PAID INTERNET OR DIGITAL COMMUNI-

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 CATIONS.   ANY PUBLIC-FACING WEBSITE, WEB APPLICATION, OR DIGITAL APPLI-
 CATION, INCLUDING, BUT NOT LIMITED TO, A SOCIAL NETWORK, AD NETWORK,  OR
 SEARCH  ENGINE,  MAY  BE DESIGNATED AN "ONLINE PLATFORM" PURSUANT TO THE
 STATE  BOARD'S  REGULATIONS.  SUCH  REGULATIONS  SHALL BE PROMULGATED NO
 LATER THAN ONE HUNDRED TWENTY DAYS AFTER  THE  EFFECTIVE  DATE  OF  THIS
 SECTION.
   § 12. Subdivision 3 of section 14-126 of the election law, as added by
 section  6  of subpart C of part H of chapter 55 of the laws of 2014, is
 amended and a new subdivision 7 is added to read as follows:
   3. Any person who falsely identifies or knowingly  fails  to  identify
 any  independent  expenditure  as required by subdivision two of section
 14-107 of this article shall be subject to a civil  penalty  up  to  one
 thousand  dollars  or  up to the cost of the communication, whichever is
 greater, in a special proceeding or civil action brought  by  the  state
 board of elections chief enforcement counsel [or imposed directly by the
 state  board of elections] PURSUANT TO PARAGRAPH (A) OF SUBDIVISION FIVE
 OF SECTION 3-104 OF THIS CHAPTER.  For purposes of this subdivision, the
 term "person" shall mean a person, group of persons, corporation,  unin-
 corporated  business  entity,  labor  organization or business, trade or
 professional association or organization or political committee.
   7. ANY ONLINE PLATFORM THAT FAILS TO COMPLY WITH THE  REQUIREMENTS  OF
 SECTION  14-107-B OF THIS ARTICLE SHALL BE SUBJECT TO A CIVIL PENALTY UP
 TO ONE THOUSAND DOLLARS FOR EACH VIOLATION IN A  SPECIAL  PROCEEDING  OR
 CIVIL  ACTION  BROUGHT BY THE STATE BOARD OF ELECTIONS CHIEF ENFORCEMENT
 COUNSEL PURSUANT TO PARAGRAPH (A) OF SUBDIVISION FIVE OF  SECTION  3-104
 OF THIS CHAPTER.
   §  13.  This  act shall take effect immediately and shall apply to all
 communications made on or after the thirtieth day following the date  on
 which  the rules promulgated by the state board of elections pursuant to
 subdivision 2 of section 14-107-b of this article, as added  by  section
 eleven  of  this  act,  shall  have become effective; provided that, the
 state board of elections shall  notify  the  legislative  bill  drafting
 commission  when  such rules are promulgated and effective in order that
 the commission may maintain an accurate and timely effective  data  base
 of the official text of the laws of the state of New York in furtherance
 of  effectuating the provisions of section 44 of the legislative law and
 section 70-b of the public officers law.
 
                                 PART KKK
 
   Section 1. This act shall be known and may be cited as the  "New  York
 City Rikers Island Jail Complex Replacement act".
   § 2. For the purposes of this act:
   (a)  "Authorized  entity"  shall  mean the New York City department of
 design and construction.
   (b) "Best value" shall mean  the  basis  for  awarding  contracts  for
 services  to  a  proposer  that  optimizes quality, cost and efficiency,
 price and performance criteria, which may include, but  is  not  limited
 to:
   (1) The quality of the proposer's performance on previous projects;
   (2) The timeliness of the proposer's performance on previous projects;
   (3) The level of customer satisfaction with the proposer's performance
 on previous projects;
   (4)  The  proposer's  record of performing previous projects on budget
 and ability to minimize cost overruns;
   (5) The proposer's ability to limit change orders;

 S. 7509--C                         162                        A. 9509--C
 
   (6) The proposer's ability to prepare appropriate project plans;
   (7) The proposer's technical capacities;
   (8) The individual qualifications of the proposer's key personnel;
   (9) The proposer's ability to assess and manage risk and minimize risk
 impact;
   (10) The proposer's financial capability;
   (11)  The  proposer's  ability to comply with applicable requirements,
 including the provisions of articles 145, 147 and 148 of  the  education
 law;
   (12)  The proposer's past record of compliance with federal, state and
 local laws, rules, licensing requirements, where applicable, and  execu-
 tive  orders, including but not limited to compliance with the labor law
 and other applicable labor and prevailing wage laws, article 15-A of the
 executive law, and any other  applicable  laws  concerning  minority-and
 women-owned business enterprise participation;
   (13) The proposer's record of complying with existing labor standards,
 maintaining  harmonious  labor  relations, and protecting the health and
 safety of workers and payment of wages above any locally-defined  living
 wage; and
   (14)  A quantitative factor to be used in evaluation of bids or offers
 for awarding of contracts for bidders or offerers that are certified  as
 minority-  or  women-owned business enterprises pursuant to article 15-A
 of the executive law, and certified pursuant to local law  as  minority-
 or  women-owned business enterprises. Where an agency identifies a quan-
 titative factor pursuant to this paragraph, the agency must specify that
 business certified as  minority-  or  women-owned  business  enterprises
 pursuant to article 15-A of the executive law as well as those certified
 as  minority- or women-owned business enterprises or pursuant to section
 thirteen hundred four of the New York City charter are eligible to qual-
 ify for such factor.  Nothing in this paragraph shall be construed as  a
 requirement  that such businesses be concurrently certified as minority-
 or women-owned business enterprises under both article 15-A of the exec-
 utive law and section 1304 of the New York City charter to  qualify  for
 such quantitative factor.
   (c)  "Cost  plus" shall mean compensating a contractor for the cost to
 complete a contract by reimbursing actual costs for labor, equipment and
 materials plus an additional amount for overhead and profit.
   (d) "Design-build contract" shall mean a contract for the  design  and
 construction  of a public work with a single entity, which may be a team
 comprised of separate entities.
   (e) "Project labor agreement" shall have  the  meaning  set  forth  in
 subdivision 1 of section 222 of the labor law. A project labor agreement
 shall  require  participation in apprentice training programs in accord-
 ance with paragraph (e) of subdivision 2 of such section.
   (f) "Public work" shall mean a public work in the  city  of  New  York
 related to the following, and shall refer to this public work:
   for  the construction or reconstruction of any new or existing correc-
 tional  facilities  by  the  New  York  City  department  of  design  or
 construction  where  such  construction  or reconstruction is determined
 necessary for the timely closure of the Rikers Island Jail  Complex  and
 where  such construction or reconstruction has been approved by majority
 vote of the New York state commission of correction.
   § 3. Any contract for a public work undertaken pursuant to  a  project
 labor agreement in accordance with section 222 of the labor law may be a
 design-build contract in accordance with this act.

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   §  4. Notwithstanding any general, special or local law, rule or regu-
 lation to the contrary, including but not limited to article 5-A of  the
 general  municipal  law, and in conformity with the requirements of this
 act, for any public work that has an estimated total cost  of  not  less
 than  ten  million dollars and is undertaken pursuant to a project labor
 agreement in accordance with section 222 of the labor law, an authorized
 entity charged with awarding a contract for  public  work  may  use  the
 alternative delivery method referred to as design-build contracts.
   (a)  A  contractor  selected by such authorized entity to enter into a
 design-build contract shall be selected through a  two-step  method,  as
 follows:
   (1)  Step  one.  Generation of a list of responding entities that have
 demonstrated  the  general  capability  to  perform   the   design-build
 contract.  Such  list  shall consist of a specified number of responding
 entities, as determined by an authorized entity, and shall be  generated
 based  upon  the  authorized  entity's review of responses to a publicly
 advertised request for qualifications.  The authorized entity's  request
 for  qualifications  shall  include  a general description of the public
 work, the maximum number of responding entities to be  included  on  the
 list,  the selection criteria to be used and the relative weight of each
 criteria in generating the list. Such selection criteria  shall  include
 the  qualifications  and experience of the design and construction team,
 organization, demonstrated responsibility, ability of the team or  of  a
 member  or  members  of the team to comply with applicable requirements,
 including the provisions of articles 145, 147, and 148 of the  education
 law, past record of compliance with the labor law, and such other quali-
 fications the authorized entity deems appropriate, which may include but
 are  not  limited  to  project  understanding,  financial capability and
 record of past performance. The authorized  entity  shall  evaluate  and
 rate  all  responding  entities to the request for qualifications. Based
 upon such ratings, the authorized entity shall list the responding enti-
 ties that shall receive a request for proposals in accordance with para-
 graph two of this subdivision.  To the extent consistent with applicable
 federal law, the authorized entity shall  consider,  when  awarding  any
 contract  pursuant  to this section, the participation of (i) responding
 entities that are certified as minority- or women-owned business  enter-
 prises  pursuant  to  article  15-A  of  the executive law, or certified
 pursuant to local law as minority- or women-owned business  enterprises;
 and  (ii) small business concerns identified pursuant to subdivision (b)
 of section 139-g of the state finance law.
   (2) Step two. Selection of the proposal which is the best value to the
 authorized entity. The authorized  entity  shall  issue  a  request  for
 proposals to the responding entities listed pursuant to paragraph one of
 this  subdivision.  If  such  a  responding entity consists of a team of
 separate entities, the entities that compromise such a team must  remain
 unchanged from the responding entity as listed pursuant to paragraph one
 of  this subdivision unless otherwise approved by the authorized entity.
 The request for proposals shall set forth the  public  work's  scope  of
 work,  and  other  requirements, as determined by the authorized entity,
 which may include separate goals for  work  under  the  contract  to  be
 performed  by  businesses certified as minority- or women-owned business
 enterprises pursuant to article 15-A of the executive law, or  certified
 pursuant  to local law as minority- or women-owned business enterprises.
 The request for proposals shall also specify the criteria to be used  to
 evaluate the responses and the relative weight of each of such criteria.
 Such  criteria  shall  include  the  proposal's cost, the quality of the

 S. 7509--C                         164                        A. 9509--C
 
 proposal's solution, the qualifications and experience of the  proposer,
 and  other  factors deemed pertinent by the authorized entity, which may
 include, but shall not be limited to, the proposal's manner and schedule
 of  project  implementation, the proposer's ability to complete the work
 in a timely and satisfactory manner, maintenance costs of the  completed
 public  work, maintenance of traffic approach, and community impact. Any
 contract awarded pursuant to this act shall be awarded to  a  responsive
 and  responsible  proposer,  which,  in consideration of these and other
 specified criteria deemed pertinent, offers the best  value,  as  deter-
 mined  by the authorized entity. The request for proposals shall include
 a statement that proposers shall designate in writing those portions  of
 the proposal that contain trade secrets or other proprietary information
 that  are to remain confidential; that the material designated as confi-
 dential shall be readily separable from the proposal.  Nothing  in  this
 subdivision  shall  be  construed to prohibit the authorized entity from
 negotiating final contract terms  and  conditions  including  cost.  All
 proposals  submitted shall be scored according to the criteria listed in
 the request for proposals and such final scores shall  be  published  on
 the authorized entity's website.
   (b)  An  authorized  entity  awarding  a  design-build  contract  to a
 contractor offering the best value may but shall not be required to  use
 the following types of contracts:
   (1)  A  cost-plus  not  to  exceed  guaranteed  maximum  price form of
 contract in which the authorized entity shall be entitled to monitor and
 audit all costs. In establishing the schedule and process for  determin-
 ing  a  guaranteed  maximum  price,  the contract between the authorized
 entity and the contractor shall:
   (i) Describe the scope of the work and the  cost  of  performing  such
 work,
   (ii) Include a detailed line item cost breakdown,
   (iii)  Include a list of all drawings, specifications and other infor-
 mation on which the guaranteed maximum price is based,
   (iv) Include the dates of substantial and final  completion  on  which
 the guaranteed maximum price is based, and
   (v) Include a schedule of unit prices; or
   (2) A lump sum contract in which the contractor agrees to accept a set
 dollar  amount  for  a  contract  which  comprises  a single bid without
 providing a cost breakdown for all costs such as for  equipment,  labor,
 materials,  as well as such contractor's profit for completing all items
 of work comprising the public work.
   § 5. Any contract entered into pursuant to this act  shall  include  a
 clause  requiring  that  any professional services regulated by articles
 145, 147 and 148 of the education law shall be performed and stamped and
 sealed, where appropriate, by a professional licensed in accordance with
 the appropriate articles.
   § 6. Construction or reconstruction  with  respect  to  each  contract
 entered  into  by  an  authorized  entity  pursuant to this act shall be
 deemed a "public work" to be performed in accordance with the provisions
 of article 8 of the labor law, as well as subject to sections 200,  240,
 241  and 242 of such law and enforcement of prevailing wage requirements
 pursuant to applicable law or, for projects or  public  works  receiving
 federal  aid,  applicable  federal requirements for prevailing wage. Any
 contract entered into pursuant  to  this  act  shall  include  a  clause
 requiring the selected design builder to obligate every tier of contrac-
 tor  working  on the public work to comply with the project labor agree-
 ment referenced in section three of this act, and shall include  project

 S. 7509--C                         165                        A. 9509--C
 
 labor   agreement   compliance  monitoring  and  enforcement  provisions
 consistent with the applicable project labor agreement.
   §  7.  Each  contract entered into by an authorized entity pursuant to
 this act shall comply with the  objectives  and  goals  with  regard  to
 minority-  and women-owned business enterprises pursuant to, as applica-
 ble, section 6-129 of the administrative code of the city of  New  York,
 or,  for  projects  or  public  works  receiving federal aid, applicable
 federal requirements for disadvantaged business enterprises or minority-
 and women-owned business enterprises.
   § 8. Public works undertaken by an authorized entity pursuant to  this
 act  shall  be  subject to the requirements of article 8 of the environ-
 mental conservation law, and, where applicable, the requirements of  the
 national environmental policy act.
   §  9.  (a)  Notwithstanding  any provision of law to the contrary, all
 rights or benefits, including terms and conditions  of  employment,  and
 protection  of  civil  service  and  collective bargaining status of all
 employees of authorized entities solely in connection  with  the  public
 works identified in subdivision (f) of section two of this act, shall be
 preserved and protected.
   (b)  Nothing  in this act shall result in the: (1) displacement of any
 currently  employed  worker  or  loss  of  position  (including  partial
 displacement  such  as  a  reduction  in the hours of non-overtime work,
 wages or employment benefits), or result in the impairment  of  existing
 collective  bargaining  agreements;  and (2) transfer of existing duties
 and functions related to maintenance and operations currently  performed
 by existing employees of authorized entities to a contractor.
   (c)  Employees  of  authorized  entities  using design-build contracts
 serving in positions in newly created titles shall be  assigned  to  the
 appropriate  bargaining  unit.  Nothing  contained  in this act shall be
 construed to affect (1) the existing rights of employees of  such  enti-
 ties  pursuant  to  an existing collective bargaining agreement, (2) the
 existing representational  relationships  among  employee  organizations
 representing employees of such entities, or (3) the bargaining relation-
 ships between such entities and such employee organizations.
   §  10. The submission of a proposal or responses or the execution of a
 design-build contract pursuant to this act shall not be construed to  be
 a violation of section 6512 of the education law.
   §  11.  Nothing  contained  in this act shall limit the right or obli-
 gation of any authorized entity to comply with  the  provisions  of  any
 existing contract or to award contracts as otherwise provided by law.
   §  12.  Any  construction or reconstruction performed pursuant to this
 act shall be subject to any applicable uniform land  use  review  proce-
 dures and local zoning requirements.
   §  13.  Before  the demolition of any correctional facility located on
 the Rikers Island Jail Complex, a substitute correctional facility  must
 be  identified and if such facility is defined as a public works project
 pursuant  to  this  act,  such  public  works  project  must  be   fully
 constructed before such demolition may occur.
   §  14.  This act shall take effect immediately and shall expire and be
 deemed repealed two years after such date, provided that,  public  works
 with  requests  for  qualifications issued prior to such repeal shall be
 permitted to continue under this act notwithstanding such repeal.
 
                                 PART LLL

 S. 7509--C                         166                        A. 9509--C
 
   Section 1. This act shall be known and may be cited as the  "New  York
 city housing authority modernization investment act".
   § 2. For the purposes of this act:
   (a)  "Authorized  entity"  shall  mean the New York city department of
 design and construction, and the New York city housing authority.
   (b) "Best value" shall mean  the  basis  for  awarding  contracts  for
 services  to  a  proposer  that  optimizes quality, cost and efficiency,
 price and performance criteria, which may include, but  is  not  limited
 to:
   (1) The quality of the proposer's performance on previous projects;
   (2) The timeliness of the proposer's performance on previous projects;
   (3) The level of customer satisfaction with the proposer's performance
 on previous projects;
   (4)  The  proposer's  record of performing previous projects on budget
 and ability to minimize cost overruns;
   (5) The proposer's ability to limit change orders;
   (6) The proposer's ability to prepare appropriate project plans;
   (7) The proposer's technical capacities;
   (8) The individual qualifications of the proposer's key personnel;
   (9) The proposer's ability to assess and manage risk and minimize risk
 impact;
   (10) The proposer's financial capability;
   (11) The proposer's ability to comply  with  applicable  requirements,
 including  the  provisions of articles 145, 147 and 148 of the education
 law;
   (12) The proposer's past record of compliance with federal, state  and
 local  laws, rules, licensing requirements, where applicable, and execu-
 tive orders, including but not limited to compliance with the labor  law
 and other applicable labor and prevailing wage laws, article 15-A of the
 executive  law,  and  any other applicable laws concerning minority- and
 women-owned business enterprise participation;
   (13) The proposer's record of complying with existing labor standards,
 maintaining harmonious labor relations, and protecting  the  health  and
 safety  of workers and payment of wages above any locally-defined living
 wage; and
   (14) A quantitative factor to be used in evaluation of bids or  offers
 for  awarding of contracts for bidders or offerers that are certified as
 minority- or women-owned business enterprises pursuant to  article  15-A
 of  the  executive law, and certified pursuant to local law as minority-
 or women-owned business enterprises. Where an agency identifies a  quan-
 titative factor pursuant to this paragraph, the agency must specify that
 businesses  certified  as  minority- or women-owned business enterprises
 pursuant to article 15-A of the executive law as well as those certified
 as minority- or women-owned business enterprises or pursuant to  section
 1304  of  the  New  York  City  charter are eligible to qualify for such
 factor. Nothing in this paragraph shall be construed  as  a  requirement
 that  such  businesses  be concurrently certified as minority- or women-
 owned business enterprises under both article 15-A of the executive  law
 and  section 1304 of the New York City charter to qualify for such quan-
 titative factors.  Such basis shall reflect, wherever  possible,  objec-
 tive and quantifiable analysis.
   (c)  "Cost  plus" shall mean compensating a contractor for the cost to
 complete a contract by reimbursing actual costs for labor, equipment and
 materials plus an additional amount for overhead and profit.

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   (d) "Design-build contract" shall mean a contract for the  design  and
 construction  of a public work with a single entity, which may be a team
 comprised of separate entities.
   (e)  "Project  labor  agreement"  shall  have the meaning set forth in
 subdivision 1 of section 222 of the labor law. A project labor agreement
 shall require participation in apprentice training programs  in  accord-
 ance with paragraph (e) of subdivision 2 of such section.
   (f)  "Public  work"  shall  mean a public work in the city of New York
 related to the following, and shall  refer  to  this  public  work;  the
 construction  or  reconstruction  of residential properties owned by the
 New York City  housing  authority  where  such  construction  or  recon-
 struction  is  required to remediate certain conditions of habitability,
 including but not limited to, roof repair, lead or  mold  abatement  and
 remediation,  plumbing  installation  or  repair, boiler installation or
 repair, or any structural  repair  where  such  construction  or  recon-
 struction  is  deemed  necessary in accordance with the terms of a state
 declaration of a disaster emergency pursuant to  section  402-d  of  the
 public housing law.
   §  3.  Any contract for a public work undertaken pursuant to a project
 labor agreement in accordance with section 222 of the labor law may be a
 design-build contract in accordance with this act.
   § 4. Notwithstanding any general, special or local law, rule or  regu-
 lation  to the contrary, including but not limited to article 5-A of the
 general municipal law, section 151 of the public  housing  law,  and  in
 conformity  with  the requirements of this act, for any public work that
 is undertaken pursuant to a project labor agreement in  accordance  with
 section 222 of the labor law, an authorized entity charged with awarding
 a  contract  for  public  work  may  use the alternative delivery method
 referred to as design-build contracts.
   (a) A contractor selected by such authorized entity to  enter  into  a
 design-build  contract  shall  be selected through a two-step method, as
 follows:
   (1) Step one. Generation of a list of responding  entities  that  have
 demonstrated   the   general  capability  to  perform  the  design-build
 contract. Such list shall consist of a specified  number  of  responding
 entities,  as determined by an authorized entity, and shall be generated
 based upon the authorized entity's review of  responses  to  a  publicly
 advertised  request for qualifications.  The authorized entity's request
 for qualifications shall include a general  description  of  the  public
 work,  the  maximum  number of responding entities to be included on the
 list, the selection criteria to be used and the relative weight of  each
 criteria  in  generating the list. Such selection criteria shall include
 the qualifications and experience of the design and  construction  team,
 organization,  demonstrated  responsibility, ability of the team or of a
 member or members of the team to comply  with  applicable  requirements,
 including  the provisions of articles 145, 147, and 148 of the education
 law, past record of compliance with the labor law, and such other quali-
 fications the authorized entity deems appropriate, which may include but
 are not limited  to  project  understanding,  financial  capability  and
 record  of  past  performance.  The authorized entity shall evaluate and
 rate all responding entities to the request  for  qualifications.  Based
 upon such ratings, the authorized entity shall list the responding enti-
 ties that shall receive a request for proposals in accordance with para-
 graph two of this subdivision.  To the extent consistent with applicable
 federal  law,  the  authorized  entity shall consider, when awarding any
 contract pursuant to this section, the participation of: (i)  responding

 S. 7509--C                         168                        A. 9509--C
 
 entities  that are certified as minority- or women-owned business enter-
 prises pursuant to article 15-A  of  the  executive  law,  or  certified
 pursuant  to local law as minority- or women-owned business enterprises;
 and  (ii) small business concerns identified pursuant to subdivision (b)
 of section 139-g of the state finance law.
   (2) Step two. Selection of the proposal which is the best value to the
 authorized entity. The authorized  entity  shall  issue  a  request  for
 proposals to the responding entities listed pursuant to paragraph one of
 this  subdivision.  If  such  a  responding entity consists of a team of
 separate entities, the entities that comprise such a  team  must  remain
 unchanged from the responding entity as listed pursuant to paragraph one
 of  this subdivision unless otherwise approved by the authorized entity.
 The request for proposals shall set forth the  public  work's  scope  of
 work,  and  other  requirements, as determined by the authorized entity,
 which may include separate goals for  work  under  the  contract  to  be
 performed  by  businesses certified as minority- or women-owned business
 enterprises pursuant to article 15-A of the executive law, or  certified
 pursuant  to local law as minority- or women-owned business enterprises.
 The request for proposals shall also specify the criteria to be used  to
 evaluate the responses and the relative weight of each of such criteria.
 Such  criteria  shall  include  the  proposal's cost, the quality of the
 proposal's solution, the qualifications and experience of the  proposer,
 and  other  factors deemed pertinent by the authorized entity, which may
 include, but shall not be limited to, the proposal's manner and schedule
 of project implementation, the proposer's ability to complete  the  work
 in  a timely and satisfactory manner, maintenance costs of the completed
 public work, maintenance of traffic approach, and community impact.  Any
 contract  awarded  pursuant to this act shall be awarded to a responsive
 and responsible proposer, which, in consideration  of  these  and  other
 specified  criteria  deemed  pertinent, offers the best value, as deter-
 mined by the authorized entity. The request for proposals shall  include
 a  statement that proposers shall designate in writing those portions of
 the proposal that contain trade secrets or other proprietary information
 that are to remain confidential; that the material designated as  confi-
 dential  shall  be  readily separable from the proposal. Nothing in this
 subdivision shall be construed to prohibit the  authorized  entity  from
 negotiating  final  contract  terms  and  conditions including cost. All
 proposals submitted shall be scored according to the criteria listed  in
 the  request  for  proposals and such final scores shall be published on
 the authorized entity's website.
   (b) An  authorized  entity  awarding  a  design-build  contract  to  a
 contractor  offering the best value may but shall not be required to use
 the following types of contracts:
   (1) A cost-plus  not  to  exceed  guaranteed  maximum  price  form  of
 contract in which the authorized entity shall be entitled to monitor and
 audit  all costs. In establishing the schedule and process for determin-
 ing a guaranteed maximum price,  the  contract  between  the  authorized
 entity and the contractor shall:
   (i)  Describe  the  scope  of the work and the cost of performing such
 work,
   (ii) Include a detailed line item cost breakdown,
   (iii) Include a list of all drawings, specifications and other  infor-
 mation on which the guaranteed maximum price is based,
   (iv)  Include  the  dates of substantial and final completion on which
 the guaranteed maximum price is based, and
   (v) Include a schedule of unit prices; or

 S. 7509--C                         169                        A. 9509--C
 
   (2) A lump sum contract in which the contractor agrees to accept a set
 dollar amount for a  contract  which  comprises  a  single  bid  without
 providing  a  cost breakdown for all costs such as for equipment, labor,
 materials, as well as such contractor's profit for completing all  items
 of work comprising the public work.
   §  5.  Any  contract entered into pursuant to this act shall include a
 clause requiring that any professional services  regulated  by  articles
 145, 147 and 148 of the education law shall be performed and stamped and
 sealed, where appropriate, by a professional licensed in accordance with
 the appropriate articles.
   §  6.  Construction  with  respect to each contract entered into by an
 authorized entity pursuant to this act shall be deemed a  "public  work"
 to  be  performed  in accordance with the provisions of article 8 of the
 labor law, as well as subject to sections 200, 240, 241 and 242 of  such
 law and enforcement of prevailing wage requirements pursuant to applica-
 ble law or, for projects or public works receiving federal aid, applica-
 ble  federal requirements for prevailing wage. Any contract entered into
 pursuant to this act shall  include  a  clause  requiring  the  selected
 design  builder  to  obligate  every  tier  of contractor working on the
 public work to comply with the project  labor  agreement  referenced  in
 section  three  of  this  act, and shall include project labor agreement
 compliance monitoring and enforcement  provisions  consistent  with  the
 applicable project labor agreement.
   §  7.  Each  contract entered into by an authorized entity pursuant to
 this act shall comply with the  objectives  and  goals  with  regard  to
 minority-  and women-owned business enterprises pursuant to, as applica-
 ble, section 6-129 of the administrative code of the city of  New  York,
 or,  for  projects  or  public  works  receiving federal aid, applicable
 federal requirements for disadvantaged business enterprises or minority-
 and women-owned business enterprises.
   § 8. Public works undertaken by an authorized entity pursuant to  this
 act  shall  be  subject to the requirements of article 8 of the environ-
 mental conservation law, and, where applicable, the requirements of  the
 national environmental policy act.
   §  9.  (a)  Notwithstanding  any provision of law to the contrary, all
 rights or benefits, including terms and conditions  of  employment,  and
 protection  of  civil  service  and  collective bargaining status of all
 employees of authorized entities solely in connection  with  the  public
 works identified in subdivision (f) of section two of this act, shall be
 preserved and protected.
   (b)  Nothing  in this act shall result in the: (1) displacement of any
 currently  employed  worker  or  loss  of  position  (including  partial
 displacement  such  as  a  reduction  in the hours of non-overtime work,
 wages or employment benefits), or result in the impairment  of  existing
 collective  bargaining  agreements;  and (2) transfer of existing duties
 and functions related to maintenance and operations currently  performed
 by existing employees of authorized entities to a contractor.
   (c)  Employees  of  authorized  entities  using design-build contracts
 serving in positions in newly created titles shall be  assigned  to  the
 appropriate  bargaining  unit.  Nothing  contained  in this act shall be
 construed to affect: (1) the existing rights of employees of such  enti-
 ties  pursuant  to  an existing collective bargaining agreement, (2) the
 existing representational  relationships  among  employee  organizations
 representing employees of such entities, or (3) the bargaining relation-
 ships between such entities and such employee organizations.

 S. 7509--C                         170                        A. 9509--C
 
   §  10. The submission of a proposal or responses or the execution of a
 design-build contract pursuant to this act shall not be construed to  be
 a violation of section 6512 of the education law.
   §  11.  Nothing  contained  in this act shall limit the right or obli-
 gation of any authorized entity to comply with  the  provisions  of  any
 existing contract or to award contracts as otherwise provided by law.
   §  12.  This act shall take effect immediately and shall expire and be
 deemed repealed 2 years after such date,  provided  that,  public  works
 with  requests  for  qualifications issued prior to such repeal shall be
 permitted to continue under this act notwithstanding such repeal.
 
                                 PART MMM

   Section 1. This act shall be known and may be cited as the  "New  York
 Pennsylvania Station Public Safety Improvements Act".
   § 2. It is hereby found and declared, that the rail and transportation
 facility  known  as  New  York  Pennsylvania Station ("Penn Station") is
 antiquated, substandard, and inadequate to meet  current  transportation
 and  public safety needs and presents an unreasonable safety risk to the
 public; Penn Station serves as a major transportation hub for the Metro-
 politan Transportation Authority ("MTA"), New York City Transit, Amtrak,
 the Long Island Railroad, and the New Jersey Transit. It serves hundreds
 of millions of passengers on an annual basis. Well over 600,000  passen-
 gers  travel  through Penn Station on a daily basis. This is more people
 than travel through LaGuardia, John F. Kennedy International, and Newark
 Liberty International airports combined. Penn  Station  is  in  need  of
 modernization  to  meet  public  safety needs. Penn Station is currently
 overcrowded, hard to navigate, at times often chaotic and has a  limited
 capacity  for security and proper policing. Penn Station is in desperate
 need of more access and egress to allow better entrance and exit capaci-
 ty and expedited evacuation  procedures.  In  this  time  of  heightened
 terrorist threats Penn Station needs more controlled points for security
 monitoring  and equipment. Passenger flow and security access must allow
 manageability in emergency situations. The  current  situation  poses  a
 clear  public  safety  hazard.  With  the  new adjoining Farley Building
 Moynihan Train Hall soon to be completed, the proposed  Gateway  Tunnel,
 and  improved Long Island Railroad access the number of commuters enter-
 ing Penn Station is expected to increase dramatically.
   § 3. It is further found and declared that such conditions and circum-
 stances require action to repair or redevelop such facilities into safe,
 modern, efficient facilities to assure the safety and comfort of travel-
 ers. Work is currently underway within Penn Station to improve  passage-
 ways,  concourses,  lighting  and  amenities.  Connections  with the new
 Moynihan Train Hall at Farley are also underway, as well as planning for
 remaining necessary  improvements  to  access  and  egress  and  to  the
 surrounding  areas  to  position  such  areas to accommodate and attract
 passengers and evolving technological and business and commercial  needs
 and practices.
   §  4. This is a pressing public safety and transportation issue and is
 a major objective for the State to resolve and  should  be  made  a  top
 priority.  MTA  and  the  New  York  state urban development corporation
 ("UDC") should coordinate and consult with community  leaders,  business
 groups and federal and city government to design a solution.
   § 5. The State will provide funds to UDC to begin with the planning of
 any such redevelopment.
   § 6. This act shall take effect immediately.

 S. 7509--C                         171                        A. 9509--C
 
                                 PART NNN
 
   Section  1. Paragraph 34 of subdivision (b) of section 1101 of the tax
 law, as amended by section 17 of part AAA of chapter 59 of the  laws  of
 2017, is amended to read as follows:
   (34)  Transportation service. The service of transporting, carrying or
 conveying a person or persons by livery service;  whether  to  a  single
 destination  or  to  multiple destinations; and whether the compensation
 paid by or on behalf of the passenger is based on  mileage,  trip,  time
 consumed  or  any  other  basis.  A service that begins and ends in this
 state is deemed intra-state even if it passes outside this state  during
 a  portion of the trip. However, transportation service does not include
 transportation of persons in connection  with  funerals.  Transportation
 service  includes  transporting,  carrying, or conveying property of the
 person being transported, whether owned  by  or  in  the  care  of  such
 person.  Notwithstanding the foregoing, transportation service shall not
 include a TNC prearranged trip, as  that  term  is  defined  in  article
 forty-four-B  of  the  vehicle  and  traffic law, that is subject to tax
 under article twenty-nine-B of this chapter.  In  addition  to  what  is
 included  in  the  definition  of  "receipt"  in paragraph three of this
 subdivision, receipts from the sale of transportation service subject to
 tax include any handling, carrying, baggage, booking  service,  adminis-
 trative,  mark-up,  additional,  or other charge, of any nature, made in
 conjunction  with  the  transportation  service.  Livery  service  means
 service  provided by limousine, black car or other motor vehicle, with a
 driver, but excluding (i) a taxicab, (ii) a bus, and (iii), in a city of
 one million or more in this state, an  affiliated  livery  vehicle,  and
 excluding  any scheduled public service. Limousine means [a] ANY vehicle
 with a seating capacity of up to fourteen persons, excluding the driver,
 AND ANY VEHICLE WITH A SEATING CAPACITY OF BETWEEN  FIFTEEN  AND  TWENTY
 PERSONS,  EXCLUDING  THE DRIVER, THAT HAS ONLY TWO AXLES AND FOUR TIRES.
 "BUS" MEANS ANY MOTOR VEHICLE  WITH  A  SEATING  CAPACITY  OF  AT  LEAST
 FIFTEEN  PERSONS,  EXCLUDING THE DRIVER, THAT DOES NOT OTHERWISE QUALIFY
 AS A LIMOUSINE.  Black car means a for-hire vehicle  dispatched  from  a
 central  facility.    "Affiliated livery vehicle" means a for-hire motor
 vehicle with a seating capacity of up  to  six  persons,  including  the
 driver,  other  than a black car or luxury limousine, that is authorized
 and licensed by the taxi and limousine  commission  of  a  city  of  one
 million  or  more  to  be dispatched by a base station located in such a
 city and regulated by such taxi and limousine commission; and the charg-
 es for service provided by an affiliated livery vehicle are on the basis
 of flat rate, time, mileage, or zones and not  on  a  garage  to  garage
 basis.
   §  2.  The  tax law is amended by adding a new article 29-C to read as
 follows:
                               ARTICLE 29-C
                           CONGESTION SURCHARGE
 SECTION 1299. DEFINITIONS.
         1299-A. IMPOSITION OF TAX.
         1299-B. LIABILITY FOR SURCHARGE.
         1299-C. REGISTRATION.
         1299-D. RETURNS AND PAYMENT OF SURCHARGE.
         1299-E. RECORDS TO BE KEPT.
         1299-F. SECRECY OF RETURNS AND REPORTS.
         1299-G. PRACTICE AND PROCEDURE.
         1299-H. DEPOSIT AND DISPOSITION OF REVENUE.

 S. 7509--C                         172                        A. 9509--C
 
         1299-I. COOPERATION BY REGULATORY AGENCIES.
   §  1299.  DEFINITIONS.  (A) "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP,
 LIMITED LIABILITY COMPANY, SOCIETY, ASSOCIATION,  JOINT  STOCK  COMPANY,
 CORPORATION,  ESTATE,  RECEIVER, TRUSTEE, ASSIGNEE, REFEREE OR ANY OTHER
 PERSON  ACTING  IN  A  FIDUCIARY  OR  REPRESENTATIVE  CAPACITY,  WHETHER
 APPOINTED  BY  A  COURT OR OTHERWISE, ANY COMBINATION OF INDIVIDUALS AND
 ANY OTHER FORM OF UNINCORPORATED ENTERPRISE OWNED OR CONDUCTED BY TWO OR
 MORE PERSONS.
   (B) "MOTOR VEHICLE" SHALL HAVE THE SAME MEANING AS THE TERM IS DEFINED
 IN SECTION ONE HUNDRED TWENTY-FIVE OF THE VEHICLE AND TRAFFIC LAW.
   (C) "FOR-HIRE VEHICLE" MEANS A MOTOR VEHICLE, OTHER THAN AN  AMBULANCE
 AS DEFINED BY SECTION ONE HUNDRED-B OF THE VEHICLE AND TRAFFIC LAW AND A
 BUS  AS  DEFINED  IN PARAGRAPH THIRTY-FOUR OF SUBDIVISION (B) OF SECTION
 ELEVEN HUNDRED ONE OF THIS CHAPTER, CARRYING PASSENGERS FOR HIRE.
   (D) "POOL VEHICLE" MEANS A FOR-HIRE VEHICLE THAT IS AVAILABLE FOR  THE
 SHARED  PROVISION OF TRANSPORTATION BY TWO OR MORE PASSENGERS (OR GROUPS
 OF PASSENGERS) THAT SEPARATELY REQUEST TRANSPORTATION AND (I)  ARE  EACH
 CHARGED  THE SAME PREDETERMINED AMOUNT PER RIDE, OR (II) ARE EACH BILLED
 INDEPENDENTLY FOR A RIDE IN AN  AMOUNT  THAT  IS  PROPORTIONATE  TO  THE
 TRANSPORTATION THEY RECEIVE.
   (E)  "FOR-HIRE TRANSPORTATION TRIP" MEANS TRANSPORTATION PROVIDED IN A
 FOR-HIRE VEHICLE THAT IS NOT A POOL VEHICLE, REGARDLESS OF THE NUMBER OF
 STOPS, FOR WHICH A CHARGE IS MADE, BUT SHALL NOT INCLUDE  TRANSPORTATION
 PROVIDED  BY,  OR  PURSUANT  TO A CONTRACT WITH, SCHOOL DISTRICTS, OR IN
 CONNECTION WITH FUNERALS.
   (F) "CONGESTION ZONE" MEANS THE GEOGRAPHIC AREA OF  THE  CITY  OF  NEW
 YORK, IN THE BOROUGH OF MANHATTAN, SOUTH OF AND EXCLUDING 96TH STREET.
   (G)  "REGULATORY  AGENCY" MEANS ANY ENTITY IN THE STATE THAT REGULATES
 ANY PERSON OR MOTOR VEHICLE INVOLVED IN THE PROVISION OF FOR-HIRE TRANS-
 PORTATION TRIPS, INCLUDING THE OWNERS, AGENTS AND  DRIVERS  OF  FOR-HIRE
 VEHICLES.
   §  1299-A.  IMPOSITION  OF  TAX.  (A)  IN ADDITION TO ANY OTHER TAX OR
 ASSESSMENT IMPOSED BY  THIS  CHAPTER  OR  OTHER  LAW,  THERE  IS  HEREBY
 IMPOSED,  BEGINNING ON JANUARY FIRST, TWO THOUSAND NINETEEN, A SURCHARGE
 ON FOR-HIRE TRANSPORTATION TRIPS OF TWO DOLLARS AND  SEVENTY-FIVE  CENTS
 FOR  EACH  SUCH  TRIP  THAT  ORIGINATES AND TERMINATES IN THE CONGESTION
 ZONE, FOR EACH SUCH TRIP THAT  ORIGINATES  ANYWHERE  IN  THE  STATE  AND
 TERMINATES  WITHIN  THE  CONGESTION ZONE, FOR EACH SUCH TRIP THAT ORIGI-
 NATES IN THE CONGESTION ZONE AND TERMINATES ANYWHERE IN THIS STATE,  AND
 FOR  EACH  SUCH  TRIP THAT ORIGINATES ANYWHERE IN THE STATE, ENTERS INTO
 THE CONGESTION ZONE WHILE IN TRANSIT, AND  TERMINATES  ANYWHERE  IN  THE
 STATE.  FOR  PURPOSES OF THIS SUBSECTION, A FOR-HIRE TRANSPORTATION TRIP
 SHALL BE DEEMED TO ORIGINATE IN THE CONGESTION ZONE WHEN ANY  REQUESTING
 PASSENGER  IS  PICKED  UP  THERE (OR IF THE BILLING FOR THE RIDE, OR ANY
 PORTION THEREOF, IS COMMENCED THERE), AND IS DEEMED TO TERMINATE IN  THE
 CONGESTION  ZONE  WHEN  ANY  REQUESTING  PASSENGER IS DROPPED OFF THERE.
 PROVIDED HOWEVER, IF THE FOR-HIRE TRANSPORTATION TRIP IS PROVIDED  BY  A
 FOR-HIRE  VEHICLE  THAT IS ALSO SUBJECT TO ARTICLE TWENTY-NINE-A OF THIS
 CHAPTER, EXCLUDING A HAIL  VEHICLE AS DEFINED BY SUCH ARTICLE, THE  RATE
 OF  SURCHARGE UNDER THIS SUBSECTION SHALL BE TWO DOLLARS AND FIFTY CENTS
 FOR EACH TRIP.
   (B) IN ADDITION TO ANY OTHER TAX OR ASSESSMENT IMPOSED BY THIS CHAPTER
 OR OTHER LAW, BEGINNING ON JANUARY FIRST, TWO THOUSAND  NINETEEN,  THERE
 IS  HEREBY  IMPOSED  ON  TRANSPORTATION  PROVIDED  BY  POOL  VEHICLES  A
 SURCHARGE OF SEVENTY-FIVE CENTS FOR EACH PERSON  THAT  BOTH  ENTERS  AND

 S. 7509--C                         173                        A. 9509--C
 
 EXITS  THE  POOL  VEHICLE IN THE STATE, AND WHO IS PICKED UP IN, DROPPED
 OFF IN, OR TRAVELS THROUGH THE CONGESTION ZONE.
   (C) NOTWITHSTANDING THE FOREGOING, THE SURCHARGE IMPOSED BY THIS ARTI-
 CLE  SHALL NOT APPLY TO TRANSPORTATION SERVICES THAT ARE ADMINISTERED BY
 OR ON BEHALF OF THE  METROPOLITAN  TRANSPORTATION  AUTHORITY,  INCLUDING
 PARATRANSIT SERVICES.
   (D)  RECEIPTS SUBJECT TO TAX UNDER PARAGRAPH TEN OF SUBDIVISION (C) OF
 SECTION ELEVEN HUNDRED FIVE OF THIS CHAPTER, AS WELL AS THE  GROSS  TRIP
 FARE OF EVERY TNC PREARRANGED TRIP AS THOSE TERMS ARE DEFINED BY SECTION
 TWELVE  HUNDRED  NINETY-ONE  OF THIS CHAPTER, SHALL BE DEEMED TO EXCLUDE
 ANY SURCHARGE IMPOSED BY THIS ARTICLE.
   § 1299-B. LIABILITY FOR SURCHARGE. (A) NOTWITHSTANDING  ANY  PROVISION
 OF  LAW  TO  THE CONTRARY, ANY PERSON THAT DISPATCHES A MOTOR VEHICLE BY
 ANY MEANS THAT PROVIDES TRANSPORTATION THAT IS SUBJECT  TO  A  SURCHARGE
 IMPOSED  BY  THIS ARTICLE, INCLUDING TRANSPORTATION NETWORK COMPANIES AS
 DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW, SHALL BE
 LIABLE FOR THE SURCHARGE IMPOSED BY THIS ARTICLE,  EXCEPT  THAT  IN  THE
 CASE  OF  TAXICAB  TRIPS AND HAIL VEHICLE TRIPS THAT ARE ALSO SUBJECT TO
 TAX PURSUANT TO ARTICLE TWENTY-NINE-A OF THIS CHAPTER, ONLY THE  TAXICAB
 OWNER  OR  HAIL  BASE LIABLE FOR THAT TAX SHALL BE THE PERSON LIABLE FOR
 THE SURCHARGE IMPOSED BY THIS ARTICLE. FOR PURPOSES OF THIS SECTION, THE
 TERMS "TAXICAB TRIPS," "HAIL VEHICLE TRIPS," "TAXICAB OWNER," AND  "HAIL
 BASE"  SHALL  HAVE THE SAME MEANING AS THEY DO IN SECTION TWELVE HUNDRED
 EIGHTY OF THIS CHAPTER.
   (B) NOTWITHSTANDING ANY LAW TO THE CONTRARY: (1) THE SURCHARGE IMPOSED
 BY THIS ARTICLE MUST BE PASSED ALONG TO PASSENGERS AND SEPARATELY STATED
 ON ANY RECEIPT THAT IS PROVIDED TO SUCH PASSENGERS. THE PASSING ALONG OF
 SUCH SURCHARGE SHALL NOT BE CONSTRUED BY  ANY  COURT  OR  ADMINISTRATIVE
 BODY  AS  THE  IMPOSITION  OF THE SURCHARGE ON THE PERSON OR ENTITY THAT
 PAYS FOR THE FOR-HIRE TRANSPORTATION TRIP. ALL REGULATORY AGENCIES  MUST
 ADJUST  ANY  FARES  THAT ARE AUTHORIZED BY THEM TO INCLUDE THE SURCHARGE
 IMPOSED BY THIS ARTICLE, AND  MUST  REQUIRE  THAT  ANY  METER  OR  OTHER
 INSTRUMENT  USED  IN  ANY  FOR-HIRE VEHICLE REGULATED BY IT TO CALCULATE
 FARES BE ADJUSTED TO INCLUDE THE SURCHARGE.
   (2) NEITHER THE FAILURE OF A REGULATORY AGENCY TO ADJUST FARES NOR THE
 FAILURE TO ADJUST A METER OR OTHER INSTRUMENT USED IN A FOR-HIRE VEHICLE
 TO CALCULATE FARES SHALL RELIEVE ANY PERSON  LIABLE  FOR  THE  SURCHARGE
 IMPOSED BY THIS ARTICLE FROM THE OBLIGATION TO PAY SUCH SURCHARGE.
   §  1299-C.  REGISTRATION.  (A)  EVERY  PERSON LIABLE FOR THE SURCHARGE
 IMPOSED BY THIS ARTICLE SHALL FILE  WITH  THE  COMMISSIONER  A  PROPERLY
 COMPLETED  APPLICATION  FOR  A  CERTIFICATE  OF  REGISTRATION, IN A FORM
 PRESCRIBED BY THE COMMISSIONER. SUCH APPLICATION SHALL BE ACCOMPANIED BY
 A FEE OF ONE DOLLAR AND FIFTY CENTS, AND SHALL SET FORTH  THE  NAME  AND
 ADDRESS  OF  THE  REGISTRANT, AND ANY OTHER INFORMATION THAT THE COMMIS-
 SIONER MAY REQUIRE. NOTWITHSTANDING THE FORGOING, ANY PERSON LIABLE  FOR
 A  SURCHARGE  IMPOSED  BY THIS ARTICLE THAT WILL INCUR SUCH LIABILITY NO
 MORE THAN ONE TIME IN ANY SINGLE CALENDAR MONTH SHALL NOT BE SUBJECT  TO
 THE PROVISIONS OF THIS PARAGRAPH.
   (B)  EXCEPT  AS  OTHERWISE  PROVIDED IN THIS SECTION, THE COMMISSIONER
 SHALL ISSUE A CERTIFICATE OF REGISTRATION TO EACH  PERSON  THAT  APPLIES
 FOR  ONE  FOR A SPECIFIED TERM OF NOT LESS THAN THREE YEARS. ANY CERTIF-
 ICATE OF REGISTRATION REFERRED TO IN THIS PARAGRAPH SHALL BE SUBJECT  TO
 RENEWAL  IN  ACCORDANCE  WITH RULES PROMULGATED BY THE COMMISSIONER, AND
 UPON THE PAYMENT OF A FEE OF ONE DOLLAR AND FIFTY CENTS. WHETHER OR  NOT
 SUCH  CERTIFICATE  OF  REGISTRATION  IS  ISSUED FOR A SPECIFIED TERM, IT
 SHALL BE SUBJECT TO SUSPENSION OR REVOCATION AS  PROVIDED  FOR  IN  THIS

 S. 7509--C                         174                        A. 9509--C
 
 SECTION.  EACH  CERTIFICATE SHALL STATE THE REGISTRANT, THE REGISTRANT'S
 TAXPAYER ID NUMBER, AND VEHICLE  (OR  VEHICLES)  IT  IS  APPLICABLE  TO.
 CERTIFICATES  OF  REGISTRATION  ISSUED PURSUANT TO THIS ARTICLE SHALL BE
 NON-ASSIGNABLE  AND  NON-TRANSFERABLE,  AND  SHALL BE SURRENDERED TO THE
 COMMISSIONER IMMEDIATELY UPON THE REGISTRANT'S CEASING TO DO BUSINESS AT
 THE ADDRESS PROVIDED IN ITS APPLICATION, UNLESS  THE  REGISTRANT  AMENDS
 ITS  CERTIFICATE OF REGISTRATION IN ACCORDANCE WITH RULES PROMULGATED BY
 THE COMMISSIONER. ALL REGISTRANTS MUST NOTIFY THE COMMISSIONER OF CHANG-
 ES TO ANY OF THE INFORMATION STATED ON THEIR  CERTIFICATE  OF  REGISTRA-
 TION,  INCLUDING VEHICLE CHANGES, IF ANY, ON A CALENDAR QUARTERLY BASIS,
 AND SHALL AMEND THEIR CERTIFICATES OF REGISTRATION ACCORDINGLY.
   (C) (1) THE COMMISSIONER MAY REFUSE TO ISSUE A CERTIFICATE  OF  REGIS-
 TRATION TO A PERSON, OR MAY SUSPEND OR REVOKE A CERTIFICATE OF REGISTRA-
 TION  THAT WAS ISSUED TO A PERSON, PURSUANT TO THIS SECTION UPON FINDING
 THAT: (I) SUCH PERSON FAILED TO PAY ANY MONIES THAT ARE  FINALLY  DETER-
 MINED  TO  BE  DUE FOR ANY TAX OR IMPOSITION THAT IS ADMINISTERED BY THE
 COMMISSIONER; (II) SUCH PERSON FAILED TO FILE ANY REPORT OR RETURN  THAT
 IS  DUE  FROM IT UNDER THIS CHAPTER; (III) SUCH PERSON WILLFULLY FILED A
 FALSE REPORT, RETURN OR OTHER DOCUMENT DUE UNDER THIS CHAPTER; (IV) SUCH
 PERSON WILLFULLY VIOLATED ANY PROVISION OF THIS ARTICLE, OR ANY RULE  OR
 REGULATION  OF THE COMMISSIONER PROMULGATED UNDER THIS ARTICLE; OR (V) A
 CERTIFICATE OF REGISTRATION ISSUED PURSUANT  TO  THIS  SECTION  TO  SUCH
 PERSON,  OR  TO  ANY BUSINESS OR ENTITY UNDER CONTROL OF SUCH PERSON, OR
 THAT IS SUBJECT  TO  SUBSTANTIALLY  THE  SAME  OWNERSHIP,  DIRECTION  OR
 CONTROL  OF  SUCH  PERSON, HAS BEEN REVOKED OR SUSPENDED WITHIN ONE YEAR
 FROM THE DATE ON WHICH A CERTIFICATE OF REGISTRATION IS FILED.
   (2) A NOTICE OF PROPOSED REVOCATION, SUSPENSION OR  REFUSAL  TO  ISSUE
 SHALL BE GIVEN TO THE PERSON THAT APPLIES FOR A CERTIFICATE OF REGISTRA-
 TION  PURSUANT  TO THIS SECTION IN THE MANNER PRESCRIBED FOR A NOTICE OF
 DEFICIENCY IN SUBSECTION (A) OF SECTION ONE THOUSAND EIGHTY-ONE OF  THIS
 CHAPTER,  AND EXCEPT AS OTHERWISE PROVIDED HEREIN, ALL THE PROVISIONS OF
 ARTICLE TWENTY-SEVEN OF THIS CHAPTER APPLICABLE TO A NOTICE OF DEFICIEN-
 CY SHALL APPLY TO A NOTICE ISSUED PURSUANT TO THIS PARAGRAPH, INSOFAR AS
 SUCH PROVISIONS CAN BE MADE APPLICABLE TO SUCH  NOTICE,  AND  WITH  SUCH
 MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT THE LANGUAGE OF SUCH
 PROVISIONS  TO  THE  NOTICE AUTHORIZED BY THIS PARAGRAPH. ALL NOTICES OF
 PROPOSED REVOCATION, SUSPENSION OR REFUSAL  TO  ISSUE  SHALL  CONTAIN  A
 STATEMENT  ADVISING THE PERSON TO WHOM IT IS ISSUED THAT THE SUSPENSION,
 REVOCATION OR REFUSAL TO ISSUE MAY BE CHALLENGED THROUGH A HEARING PROC-
 ESS AND THAT THE PETITION FOR SUCH CHALLENGE  MUST  BE  FILED  WITH  THE
 DIVISION  OF  TAX  APPEALS  WITHIN  NINETY DAYS AFTER THE GIVING OF SUCH
 NOTICE.
   (3) IN THE CASE OF A PROPOSED REVOCATION OR SUSPENSION, NOTICE OF SUCH
 MUST BE GIVEN TO A PERSON WITHIN THREE YEARS FROM THE DATE OF THE ACT OR
 OMISSION DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION, EXCEPT THAT  IN
 THE  CASE  OF ACTS INVOLVING FALSITY OR FRAUD, SUCH NOTICE MAY BE ISSUED
 AT ANY TIME.
   (4) IN ANY OF THE  FOREGOING  INSTANCES  WHERE  THE  COMMISSIONER  MAY
 SUSPEND  OR REVOKE OR REFUSE TO ISSUE A CERTIFICATE OF REGISTRATION, THE
 COMMISSIONER MAY CONDITION THE RETENTION OR ISSUANCE OF A CERTIFICATE OF
 REGISTRATION UPON THE FILING OF A BOND OR THE  DEPOSIT  OF  TAX  IN  THE
 MANNER  PROVIDED IN PARAGRAPH TWO OR THREE OF SUBDIVISION (E) OF SECTION
 ELEVEN HUNDRED THIRTY-SEVEN OF THIS CHAPTER.
   (D) IF THE COMMISSIONER CONSIDERS IT NECESSARY FOR THE PROPER ADMINIS-
 TRATION OF THE SURCHARGE IMPOSED BY THIS ARTICLE, HE OR SHE MAY  REQUIRE
 EVERY  PERSON WHO HOLDS A CERTIFICATE OF REGISTRATION ISSUED PURSUANT TO

 S. 7509--C                         175                        A. 9509--C
 
 THIS SECTION TO APPLY FOR A NEW CERTIFICATE OF REGISTRATION IN SUCH FORM
 AND AT SUCH TIME AS THE COMMISSIONER MAY  PRESCRIBE,  AND  TO  SURRENDER
 EACH PREVIOUSLY ISSUED CERTIFICATE OF REGISTRATION. THE COMMISSIONER MAY
 REQUIRE  SUCH  FILING  AND SUCH SURRENDER NOT MORE OFTEN THAN ONCE EVERY
 THREE YEARS. UPON THE FILING OF AN APPLICATION FOR A NEW CERTIFICATE  OF
 REGISTRATION  AND  THE  SURRENDER OF ALL PREVIOUS SUCH CERTIFICATES, THE
 COMMISSIONER SHALL ISSUE, WITHIN  SUCH  TIME  AS  THE  COMMISSIONER  MAY
 PRESCRIBE,  A  NEW  CERTIFICATE OF REGISTRATION, WITHOUT CHARGE, TO EACH
 REGISTRANT.
   § 1299-D. RETURNS AND PAYMENT OF SURCHARGE. (A)  EVERY  PERSON  LIABLE
 FOR  THE  SURCHARGE IMPOSED BY THIS ARTICLE SHALL FILE A RETURN WITH THE
 COMMISSIONER ON A MONTHLY BASIS. EACH RETURN SHALL SHOW  THE  NUMBER  OF
 FOR-HIRE TRANSPORTATION TRIPS, OR THE NUMBER OF POOL VEHICLE PASSENGERS,
 SUBJECT  TO THE SURCHARGE IMPOSED BY THIS ARTICLE IN THE MONTH FOR WHICH
 THE RETURN IS FILED, ALONG WITH SUCH OTHER INFORMATION  AS  THE  COMMIS-
 SIONER  MAY REQUIRE. THE RETURNS REQUIRED BY THIS SECTION SHALL BE FILED
 WITHIN TWENTY DAYS AFTER THE END OF THE MONTH COVERED  THEREBY.  IF  THE
 COMMISSIONER  DEEMS  IT NECESSARY TO ENSURE THE PAYMENT OF THE SURCHARGE
 IMPOSED BY THIS ARTICLE, HE OR SHE MAY REQUIRE RETURNS TO  BE  MADE  FOR
 SHORTER  PERIODS  THAN  PRESCRIBED  BY  THE FOREGOING PROVISIONS OF THIS
 SECTION, AND UPON SUCH DATES AS MAY BE SPECIFIED. THE  FORM  OF  RETURNS
 SHALL  BE PRESCRIBED BY THE COMMISSIONER AND SHALL CONTAIN SUCH INFORMA-
 TION AS THE COMMISSIONER MAY DEEM  NECESSARY  FOR  THE  PROPER  ADMINIS-
 TRATION  OF  THIS  ARTICLE. THE COMMISSIONER MAY REQUIRE THAT RETURNS BE
 FILED ELECTRONICALLY.
   (B) EVERY PERSON LIABLE FOR THE  SURCHARGE  IMPOSED  BY  THIS  ARTICLE
 SHALL,  AT  THE  TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE
 TOTAL AMOUNT OF ALL SURCHARGES DUE UNDER THIS ARTICLE. SUCH AMOUNT SHALL
 BE DUE AND PAYABLE ON THE DATE SPECIFIED FOR THE FILING  OF  THE  RETURN
 FOR SUCH PERIOD, WITHOUT REGARD TO WHETHER A RETURN IS FILED, OR WHETHER
 THE  RETURN THAT IS FILED CORRECTLY SHOWS THE CORRECT NUMBER OF FOR-HIRE
 TRIPS ARE SUBJECT THE SURCHARGE, OR THE  CORRECT  SURCHARGE  AMOUNT  DUE
 THEREON.  THE  COMMISSIONER MAY REQUIRE THAT THE SURCHARGE BE PAID ELEC-
 TRONICALLY.
   (C) IN ADDITION TO ANY OTHER PENALTY OR INTEREST  PROVIDED  FOR  UNDER
 THIS  ARTICLE  OR OTHER LAW, AND UNLESS IT IS SHOWN THAT SUCH FAILURE IS
 DUE TO REASONABLE CAUSE AND NOT  DUE  TO  WILLFUL  NEGLECT,  ANY  PERSON
 LIABLE  FOR THE SURCHARGE IMPOSED BY THIS ARTICLE THAT FAILS TO PAY SUCH
 SURCHARGE WHEN DUE SHALL BE LIABLE FOR A PENALTY IN AN AMOUNT  EQUAL  TO
 TWO HUNDRED PERCENT OF THE TOTAL SURCHARGE AMOUNT THAT IS DUE.
   §  1299-E.  RECORDS  TO BE KEPT. EVERY PERSON LIABLE FOR THE SURCHARGE
 IMPOSED BY THIS ARTICLE SHALL KEEP, AND SHALL MAKE AVAILABLE FOR  REVIEW
 UPON DEMAND BY THE COMMISSIONER:
   (1)  RECORDS  OF  EVERY  TRIP  PROVIDED OR ARRANGED BY SUCH PERSON, OR
 PROVIDED THROUGH THE USE OF A FOR-HIRE VEHICLE OWNED OR LEASED  BY  SUCH
 PERSON, INCLUDING ALL AMOUNTS PAID, CHARGED OR DUE THEREON, IN SUCH FORM
 AS THE COMMISSIONER MAY REQUIRE;
   (2) TRUE AND COMPLETE COPIES OF ANY RECORDS REQUIRED TO BE KEPT BY ANY
 APPLICABLE REGULATORY DEPARTMENT OR AGENCY; AND
   (3) SUCH OTHER RECORDS AND INFORMATION AS THE COMMISSIONER MAY REQUIRE
 TO PERFORM HIS OR HER DUTIES UNDER THIS ARTICLE.
   §  1299-F.  SECRECY  OF  RETURNS AND REPORTS. (A) EXCEPT IN ACCORDANCE
 WITH PROPER JUDICIAL ORDER OR AS OTHERWISE PROVIDED BY LAW, IT SHALL  BE
 UNLAWFUL  FOR  THE  COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART-
 MENT, ANY PERSON ENGAGED OR RETAINED BY THE DEPARTMENT ON AN INDEPENDENT
 CONTRACT BASIS, OR ANY PERSON WHO IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF

 S. 7509--C                         176                        A. 9509--C
 
 THE CONTENTS OF A RETURN OR REPORT FILED WITH THE COMMISSIONER  PURSUANT
 TO  THIS ARTICLE, TO DIVULGE OR MAKE KNOWN IN ANY MANNER ANY PARTICULARS
 SET FORTH OR DISCLOSED IN  ANY  SUCH  RETURN  OR  REPORT.  THE  OFFICERS
 CHARGED  WITH  THE  CUSTODY  OF  SUCH  RETURNS  AND REPORTS SHALL NOT BE
 REQUIRED TO PRODUCE ANY OF THEM OR EVIDENCE  OF  ANYTHING  CONTAINED  IN
 THEM  IN  ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF OF THE
 COMMISSIONER IN AN ACTION OR PROCEEDING UNDER  THE  PROVISIONS  OF  THIS
 CHAPTER,  OR  IN ANY OTHER ACTION OR PROCEEDING INVOLVING THE COLLECTION
 OF A TAX DUE UNDER THIS CHAPTER TO WHICH THE STATE, THE COMMISSIONER  OR
 AN  AGENCY THAT IS AUTHORIZED TO PERMIT OR REGULATE THE PROVISION OF ANY
 RELEVANT TRANSPORTATION IS A PARTY OR A CLAIMANT, OR ON  BEHALF  OF  ANY
 PARTY  TO ANY ACTION, PROCEEDING OR HEARING UNDER THE PROVISIONS OF THIS
 ARTICLE, WHEN THE RETURNS OR THE REPORTS OR THE FACTS SHOWN THEREBY  ARE
 DIRECTLY INVOLVED IN SUCH ACTION, PROCEEDING OR HEARING, IN ANY OF WHICH
 EVENTS  THE  COURT,  OR  IN  THE  CASE OF A HEARING, THE DIVISION OF TAX
 APPEALS, 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,  HOWEVER,  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 COMPTROLLER; 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 THERE-
 IN,  BY OR TO THE ATTORNEY GENERAL OR OTHER LEGAL REPRESENTATIVES 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  THEREFROM;  NOR  TO
 PROHIBIT  THE  DELIVERY  TO A PERSON LIABLE FOR THE SURCHARGE IMPOSED BY
 THIS ARTICLE, OR A DULY AUTHORIZED REPRESENTATIVE OF SUCH,  A  CERTIFIED
 COPY OF ANY RETURN OR REPORT FILED BY SUCH PERSON PURSUANT TO THIS ARTI-
 CLE,  NOR  TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLASSIFIED AS TO
 PREVENT THE IDENTIFICATION OF PARTICULAR  RETURNS  OR  REPORTS  AND  THE
 ITEMS  THEREOF;  NOR  TO  PROHIBIT THE DISCLOSURE, IN SUCH MANNER AS THE
 COMMISSIONER DEEMS APPROPRIATE, OF THE NAMES AND OTHER APPROPRIATE IDEN-
 TIFYING INFORMATION OF THOSE  PERSONS  REQUIRED  TO  PAY  THE  SURCHARGE
 IMPOSED BY THIS ARTICLE.
   (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
 THE  COMMISSIONER MAY PERMIT THE SECRETARY OF THE TREASURY OF THE UNITED
 STATES OR SUCH SECRETARY'S DELEGATE, OR THE AUTHORIZED REPRESENTATIVE OF
 EITHER SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE,  OR
 MAY  FURNISH TO SUCH OFFICER OR SUCH OFFICER'S AUTHORIZED REPRESENTATIVE
 AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH  PERSON  WITH  INFORMATION
 CONCERNING  AN  ITEM  CONTAINED  IN ANY SUCH RETURN, OR DISCLOSED BY ANY
 INVESTIGATION OF LIABILITY UNDER THIS ARTICLE, BUT SUCH PERMISSION SHALL
 BE GRANTED OR SUCH INFORMATION FURNISHED ONLY IF THE LAWS OF THE  UNITED
 STATES  GRANT  SUBSTANTIALLY  SIMILAR  PRIVILEGES TO THE COMMISSIONER OR
 OFFICER OF THIS STATE CHARGED WITH THE ADMINISTRATION OF  THE  SURCHARGE
 IMPOSED  BY THIS ARTICLE, AND ONLY IF SUCH INFORMATION IS TO BE USED FOR
 PURPOSES OF TAX ADMINISTRATION ONLY; AND PROVIDED  FURTHER  THE  COMMIS-
 SIONER  MAY  FURNISH  TO  THE  COMMISSIONER  OF INTERNAL REVENUE OR SUCH
 COMMISSIONER'S AUTHORIZED REPRESENTATIVE SUCH RETURNS FILED  UNDER  THIS

 S. 7509--C                         177                        A. 9509--C
 
 ARTICLE  AND  OTHER  TAX  INFORMATION, AS SUCH COMMISSIONER MAY CONSIDER
 PROPER, FOR USE IN COURT  ACTIONS  OR  PROCEEDINGS  UNDER  THE  INTERNAL
 REVENUE  CODE, WHETHER CIVIL OR CRIMINAL, WHERE A WRITTEN REQUEST THERE-
 FOR  HAS  BEEN MADE TO THE COMMISSIONER BY THE SECRETARY OF THE TREASURY
 OF THE UNITED STATES OR SUCH SECRETARY'S DELEGATE, PROVIDED THE LAWS  OF
 THE UNITED STATES GRANT SUBSTANTIALLY SIMILAR POWERS TO THE SECRETARY OF
 THE  TREASURY  OF  THE  UNITED  STATES OR HIS OR HER DELEGATE. WHERE THE
 COMMISSIONER HAS SO AUTHORIZED USE OF RETURNS AND OTHER  INFORMATION  IN
 SUCH  ACTIONS  OR  PROCEEDINGS, OFFICERS AND EMPLOYEES OF THE DEPARTMENT
 MAY TESTIFY IN SUCH ACTIONS OR PROCEEDINGS IN RESPECT TO SUCH RETURNS OR
 OTHER INFORMATION.
   (C) (1) ANY OFFICER OR EMPLOYEE OF THE STATE  WHO  WILLFULLY  VIOLATES
 THE  PROVISIONS  OF  SUBDIVISION  (A) OF THIS SECTION SHALL BE DISMISSED
 FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE FOR  A  PERIOD
 OF FIVE YEARS THEREAFTER.
   (2)  CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN
 OF THIS CHAPTER.
   § 1299-G. PRACTICE AND PROCEDURE. THE PROVISIONS  OF  ARTICLE  TWENTY-
 SEVEN  OF THIS CHAPTER SHALL APPLY WITH RESPECT TO THE ADMINISTRATION OF
 AND PROCEDURE WITH RESPECT 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 TWENTY-SEVEN HAD BEEN INCORPORATED IN FULL INTO THIS ARTI-
 CLE AND HAD EXPRESSLY REFERRED TO THE SURCHARGE IMPOSED BY THIS ARTICLE,
 EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH
 A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE.
   § 1299-H. DEPOSIT AND  DISPOSITION  OF  REVENUE.  (A)  ANY  SURCHARGE,
 INTEREST,  AND PENALTIES 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 COMPTROLLER, TO THE CREDIT OF THE
 COMPTROLLER  IN TRUST FOR THE METROPOLITAN TRANSPORTATION AUTHORITY.  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 COMPTROLLER. THE COMPTROLLER  SHALL  REQUIRE  ADEQUATE
 SECURITY  FROM  ALL SUCH DEPOSITORIES. OF THE TOTAL REVENUE COLLECTED OR
 RECEIVED UNDER THIS ARTICLE, THE COMPTROLLER SHALL RETAIN SUCH AMOUNT AS
 THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR  REFUNDS  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 COMPTROLLER, A REASONABLE AMOUNT NECESSARY TO
 EFFECTUATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE  THE
 DEPARTMENT  FOR THE COSTS INCURRED TO ADMINISTER, COLLECT AND DISTRIBUTE
 THE SURCHARGE, INTEREST, AND PENALTIES IMPOSED BY THIS ARTICLE.
   (B) ON OR BEFORE THE TWELFTH DAY OF EACH MONTH, AFTER  RESERVING  SUCH
 AMOUNT  FOR  SUCH  REFUNDS AND DEDUCTING SUCH AMOUNTS FOR SUCH COSTS, AS
 PROVIDED FOR IN SUBDIVISION (A) OF THIS SECTION, THE COMMISSIONER  SHALL
 CERTIFY TO THE COMPTROLLER THE AMOUNT OF REVENUES SO RECEIVED DURING THE
 PRIOR  MONTH  AS  A  RESULT  OF THE SURCHARGE, INTEREST AND PENALTIES SO
 IMPOSED.  NOTWITHSTANDING ANY PROVISION OF LAW TO  THE  CONTRARY,  AFTER
 DEDUCTING  THE  AMOUNTS  SPECIFIED  IN  THE PREVIOUS SENTENCE, THE FIRST
 THREE HUNDRED SIXTY-TWO MILLION DOLLARS COLLECTED OR RECEIVED IN  CALEN-
 DAR  YEAR  TWO  THOUSAND  NINETEEN,  THE FIRST THREE HUNDRED ONE MILLION
 DOLLARS COLLECTED OR RECEIVED IN CALENDAR YEAR TWO THOUSAND TWENTY,  AND
 THE  FIRST  THREE  HUNDRED MILLION DOLLARS COLLECTED OR RECEIVED IN EACH
 CALENDAR YEAR THEREAFTER, SHALL BE DEPOSITED BY THE COMPTROLLER, WITHOUT
 APPROPRIATION, PURSUANT TO SUBDIVISION (C) OF  THIS  SECTION.  THE  NEXT
 FIFTY  MILLION  DOLLARS COLLECTED OR RECEIVED IN CALENDAR YEAR TWO THOU-

 S. 7509--C                         178                        A. 9509--C
 
 SAND NINETEEN, AND IN EACH YEAR THEREAFTER, IN EXCESS OF FUNDS COLLECTED
 AND DEPOSITED PURSUANT TO SUBDIVISION (C)  OF  THIS  SECTION,  SHALL  BE
 DEPOSITED  BY THE COMPTROLLER, WITHOUT APPROPRIATION, PURSUANT TO SUBDI-
 VISION (D) OF THIS SECTION, PROVIDED, HOWEVER, THAT ANY UNCOMMITTED FUND
 BALANCE AT THE END OF EACH CALENDAR YEAR THROUGH THE APPROVAL PROCESS OF
 SUBDIVISION  THREE  OF  SECTION  TWELVE  HUNDRED SEVENTY-I OF THE PUBLIC
 AUTHORITIES LAW SHALL BE TRANSFERRED ON THE LAST  BUSINESS  DAY  OF  THE
 CALENDAR  YEAR  BY  THE  METROPOLITAN  TRANSPORTATION AUTHORITY FROM THE
 OUTER BOROUGH  TRANSPORTATION  ACCOUNT  TO  THE  GENERAL  TRANSPORTATION
 ACCOUNT  OF  THE NEW YORK CITY TRANSPORTATION ASSISTANCE FUND CREATED BY
 SECTION TWELVE HUNDRED SEVENTY-I OF  THE  PUBLIC  AUTHORITIES  LAW.  ANY
 AMOUNTS  COLLECTED  OR  RECEIVED, IN ANY YEAR, THAT ARE IN EXCESS OF THE
 AMOUNTS DEPOSITED PURSUANT TO SUBDIVISIONS (C) AND (D) OF THIS  SECTION,
 SHALL  BE  DEPOSITED BY THE COMPTROLLER, WITHOUT APPROPRIATION, PURSUANT
 TO SUBDIVISION (E) OF THIS SECTION.
   (C) THE AMOUNT OF REVENUES SO CERTIFIED SHALL  BE  PAID  OVER  BY  THE
 FIFTEENTH BUSINESS DAY OF EACH SUCCEEDING MONTH FROM SUCH ACCOUNT, WITH-
 OUT  APPROPRIATION,  INTO THE SUBWAY ACTION PLAN ACCOUNT OF THE NEW YORK
 CITY TRANSPORTATION ASSISTANCE  FUND  ESTABLISHED  PURSUANT  TO  SECTION
 TWELVE HUNDRED SEVENTY-I OF THE PUBLIC AUTHORITIES LAW.
   (D)  THE  AMOUNT  OF  REVENUES  SO CERTIFIED THAT ARE IN EXCESS OF THE
 AMOUNTS DEPOSITED AS PROVIDED IN SUBDIVISION (C) OF THIS SECTION,  SHALL
 BE PAID OVER BY THE FIFTEENTH BUSINESS DAY OF EACH SUCCEEDING MONTH FROM
 SUCH  ACCOUNT, WITHOUT APPROPRIATION, INTO THE OUTER BOROUGH TRANSPORTA-
 TION ACCOUNT OF THE NEW YORK CITY TRANSPORTATION ASSISTANCE FUND  ESTAB-
 LISHED  PURSUANT  TO  SECTION  TWELVE  HUNDRED  SEVENTY-I  OF THE PUBLIC
 AUTHORITIES LAW.
   (E) THE AMOUNT OF REVENUES SO CERTIFIED THAT  ARE  IN  EXCESS  OF  THE
 AMOUNTS  DEPOSITED  AS  PROVIDED  IN  SUBDIVISIONS  (C)  AND (D) OF THIS
 SECTION, SHALL BE PAID OVER  BY  THE  FIFTEENTH  BUSINESS  DAY  OF  EACH
 SUCCEEDING  MONTH  FROM  SUCH  ACCOUNT,  WITHOUT APPROPRIATION, INTO THE
 GENERAL TRANSPORTATION ACCOUNT  OF  THE  NEW  YORK  CITY  TRANSPORTATION
 ASSISTANCE FUND ESTABLISHED PURSUANT TO SECTION TWELVE HUNDRED SEVENTY-I
 OF THE PUBLIC AUTHORITIES LAW.
   (F)  NOTWITHSTANDING  ANY  PROVISION  OF  LAW  TO  THE  CONTRARY,  ANY
 SURCHARGE IMPOSED BY THIS ARTICLE THAT IS PAID IN CONNECTION WITH TRANS-
 PORTATION PROVIDED TO PERSONS ELIGIBLE FOR MEDICAL  ASSISTANCE  WHO  ARE
 TRANSPORTED PURSUANT TO SECTION THREE HUNDRED SIXTY-FIVE-H OF THE SOCIAL
 SERVICES  LAW SHALL BE TRANSFERRED ON A QUARTERLY BASIS FROM THE ACCOUNT
 SPECIFIED IN PARAGRAPH (A) OF THIS SECTION TO  THE  MEDICAID  MANAGEMENT
 INFORMATION SYSTEM ESCROW FUND. THE COMMISSIONER OF HEALTH SHALL COLLECT
 THE  MEDICAID TRANSPORTATION DATA NECESSARY TO DETERMINE AN AMOUNT TO BE
 TRANSFERRED EACH QUARTER; PROVIDED THAT SUCH AMOUNT SHALL BE  RECONCILED
 IN  THE SUBSEQUENT QUARTER TO REFLECT ACTUAL MEDICAID SURCHARGE EXPENDI-
 TURES; AND FURTHER PROVIDED  THAT  ANY  DIFFERENCE  BETWEEN  THE  AMOUNT
 TRANSFERRED  AND  THE  RECONCILED AMOUNT SHALL BE ADDED TO OR SUBTRACTED
 FROM THE AMOUNT TRANSFERRED IN THE FOLLOWING QUARTER.
   § 1299-I. COOPERATION BY REGULATORY AGENCIES. ALL REGULATORY  AGENCIES
 SHALL  COOPERATE  WITH  AND  ASSIST  THE  COMMISSIONER TO EFFECTUATE THE
 PURPOSES OF THIS ARTICLE AND THE COMMISSIONER'S  RESPONSIBILITIES  HERE-
 UNDER.  SUCH COOPERATION SHALL INCLUDE OBTAINING, FURNISHING, AND TIMELY
 UPDATING CURRENT, COMPLETE AND ACCURATE NAMES, ADDRESSES AND  ALL  OTHER
 INFORMATION  CONCERNING: (1) EVERY FOR-HIRE VEHICLE OWNER, OPERATOR, AND
 DRIVER OF FOR-HIRE VEHICLES LICENSED  OR  PERMITTED  BY  SUCH  LICENSING
 AGENCY; (2) EVERY AGENT OF SUCH PERSON, IF ANY; AND (3) ANY OTHER PERSON
 OR  ENTITY  THAT IS LICENSED OR PERMITTED BY SUCH LICENSING AGENCY. SUCH

 S. 7509--C                         179                        A. 9509--C
 
 COOPERATION SHALL ALSO INCLUDE FURNISHING TO THE COMMISSIONER ALL  WRIT-
 TEN,  COMPUTERIZED,  AUTOMATED  OR  ELECTRONIC RECORDS IN THE REGULATORY
 AGENCY'S POSSESSION, OR IN THE POSSESSION OF ANY OF ITS AGENTS,  INSTRU-
 MENTALITIES,  CONTRACTORS, OR ANY OTHER PERSON AUTHORIZED OR REQUIRED TO
 OBTAIN OR POSSESS SUCH RECORDS OR  INFORMATION,  THAT  ACCOUNT  FOR  ANY
 TRANSPORTATION  AND OPERATION FOR HIRE PROVIDED BY A LICENSED OR PERMIT-
 TED PERSON OR ENTITY. SUCH INFORMATION SHALL BE PROVIDED TO THE  COMMIS-
 SIONER WITHOUT COST, AND IN A FORMAT PRESCRIBED BY THE COMMISSIONER.
   § 3. 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,  subdivision  one  or  two  of section five
 hundred fourteen, subsection (e) of section  six  hundred  ninety-seven,
 subsection  (a)  of section nine hundred ninety-four, subdivision (a) of
 section eleven hundred forty-six, section twelve  hundred  eighty-seven,
 section twelve hundred ninety-six, SECTION TWELVE HUNDRED NINETY-NINE-F,
 subdivision (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.
   § 4. The public authorities law is amended by  adding  a  new  section
 1270-i to read as follows:
   § 1270-I. NEW YORK CITY TRANSPORTATION ASSISTANCE FUND. 1. THE AUTHOR-
 ITY  SHALL CREATE AND ESTABLISH A FUND TO BE KNOWN AS THE "NEW YORK CITY
 TRANSPORTATION ASSISTANCE FUND" WHICH SHALL BE KEPT  SEPARATE  FROM  AND
 SHALL  NOT BE COMMINGLED WITH ANY OTHER MONEYS OF THE AUTHORITY. THE NEW
 YORK CITY TRANSPORTATION ASSISTANCE FUND SHALL CONSIST OF THREE SEPARATE
 ACCOUNTS: (I) THE "SUBWAY ACTION PLAN ACCOUNT"; (II) THE "OUTER  BOROUGH
 TRANSPORTATION ACCOUNT"; AND (III) THE "GENERAL TRANSPORTATION ACCOUNT".
 THE  AUTHORITY  SHALL MAKE DEPOSITS IN THE SUBWAY ACTION PLAN ACCOUNT OF
 THE MONEYS RECEIVED BY IT PURSUANT TO THE PROVISIONS OF SUBDIVISION  (C)
 OF  SECTION  TWELVE  HUNDRED  NINETY-NINE-H OF THE TAX LAW IN ACCORDANCE
 WITH THE PROVISIONS THEREOF, SHALL MAKE DEPOSITS IN  THE  OUTER  BOROUGH
 TRANSPORTATION  ACCOUNT  OF  THE  MONEYS  RECEIVED BY IT PURSUANT TO THE
 PROVISIONS OF SUBDIVISION (D) OF SECTION TWELVE HUNDRED NINETY-NINE-H OF
 THE TAX LAW IN ACCORDANCE WITH THE PROVISIONS THEREOF,  AND  SHALL  MAKE
 DEPOSITS IN THE GENERAL TRANSPORTATION ACCOUNT OF THE MONEYS RECEIVED BY
 IT  PURSUANT  TO  THE  PROVISIONS  OF  SUBDIVISION (E) OF SECTION TWELVE
 HUNDRED NINETY-NINE-H OF THE TAX LAW IN ACCORDANCE WITH  THE  PROVISIONS
 THEREOF,  AND  PURSUANT  TO  THE  PROVISIONS  OF  SECTION ELEVEN HUNDRED
 ELEVEN-C OF VEHICLE AND TRAFFIC LAW.
   2. MONEYS IN THE SUBWAY ACTION PLAN ACCOUNT  SHALL  BE  USED  FOR  THE
 EXCLUSIVE  PURPOSE  OF  FUNDING  THE  OPERATING AND CAPITAL COSTS OF THE
 METROPOLITAN TRANSPORTATION AUTHORITY'S  NEW  YORK  CITY  SUBWAY  ACTION
 PLAN.  SUCH FUNDS MAY BE USED FOR INFRASTRUCTURE INCLUDING CONSTRUCTION,
 RECONSTRUCTION,  RECONDITIONING  AND  PRESERVATION   OF   TRANSPORTATION
 SYSTEMS,  FACILITIES  AND  EQUIPMENT,  ACQUISITION  OF PROPERTY, AND FOR
 OPERATING COSTS  INCLUDING  PERSONAL  SERVICES,  NON-PERSONAL  SERVICES,
 FRINGE BENEFITS, AND CONTRACTUAL SERVICES. FUNDS MAY ALSO BE USED TO PAY
 OR  TO  REIMBURSE  THE  AUTHORITY  FOR  ITS  PAYMENT OF DEBT SERVICE AND
 RESERVE REQUIREMENTS ON THAT PORTION OF AUTHORITY BONDS AND NOTES ISSUED

 S. 7509--C                         180                        A. 9509--C
 
 BY THE AUTHORITY FOR CAPITAL COSTS OF  THE  METROPOLITAN  TRANSPORTATION
 AUTHORITY'S NEW YORK CITY SUBWAY ACTION PLAN.
   3.  MONEYS  IN  THE OUTER BOROUGH TRANSPORTATION ACCOUNT SHALL BE USED
 FOR THE EXCLUSIVE PURPOSE OF FUNDING THE OPERATING AND CAPITAL COSTS  OF
 METROPOLITAN TRANSPORTATION AUTHORITY FACILITIES, EQUIPMENT AND SERVICES
 IN  THE  COUNTIES OF BRONX, KINGS, QUEENS AND RICHMOND, AND ANY PROJECTS
 IMPROVING TRANSPORTATION CONNECTIONS FROM  SUCH  COUNTIES  TO  NEW  YORK
 COUNTY.   SUCH   FUNDS   MAY   BE   USED  FOR  INFRASTRUCTURE  INCLUDING
 CONSTRUCTION, RECONSTRUCTION, RECONDITIONING AND PRESERVATION OF  TRANS-
 PORTATION  SYSTEMS,  FACILITIES  AND EQUIPMENT, ACQUISITION OF PROPERTY,
 AND  FOR  OPERATING  COSTS  INCLUDING  PERSONAL  SERVICES,  NON-PERSONAL
 SERVICES,  FRINGE BENEFITS, AND CONTRACTUAL SERVICES.  FUNDS MAY ALSO BE
 USED TO FUND A TOLL REDUCTION PROGRAM FOR ANY CROSSINGS UNDER THE JURIS-
 DICTION OF THE METROPOLITAN TRANSPORTATION AUTHORITY OR ITS SUBSIDIARIES
 OR AFFILIATES.   FUNDS MAY ALSO BE USED  TO  PAY  OR  TO  REIMBURSE  THE
 AUTHORITY  FOR  ITS  PAYMENT OF DEBT SERVICE AND RESERVE REQUIREMENTS ON
 THAT PORTION OF AUTHORITY BONDS AND NOTES THAT HAVE BEEN ISSUED  BY  THE
 AUTHORITY  SPECIFICALLY  FOR  THE  AUTHORIZED  PURPOSE  OF THIS ACCOUNT.
 NOTWITHSTANDING ANY LAW TO THE CONTRARY, FINAL APPROVAL OF  THE  USE  OF
 ANY  FUNDS  PAID  INTO THE OUTER BOROUGH TRANSPORTATION ACCOUNT SHALL BE
 UNANIMOUSLY APPROVED BY THREE MEMBERS OF THE METROPOLITAN TRANSPORTATION
 AUTHORITY CAPITAL PROGRAM REVIEW BOARD, ESTABLISHED PURSUANT TO  SECTION
 TWELVE HUNDRED SIXTY-NINE-A OF THIS TITLE SO DESIGNATED PURSUANT TO THIS
 SUBDIVISION.  FOR  PURPOSES  OF  SUCH  FINAL  APPROVALS THE THREE VOTING
 MEMBERS ARE: THE MEMBER APPOINTED UPON RECOMMENDATION BY  THE  TEMPORARY
 PRESIDENT  OF  THE  SENATE;  THE MEMBER APPOINTED UPON RECOMMENDATION OF
 SPEAKER OF THE ASSEMBLY; AND THE MEMBER APPOINTED BY THE GOVERNOR.
   4. MONEYS IN THE GENERAL TRANSPORTATION  ACCOUNT  SHALL  BE  USED  FOR
 FUNDING  THE OPERATING AND CAPITAL COSTS OF THE METROPOLITAN TRANSPORTA-
 TION AUTHORITY. SUCH FUNDS MAY  BE  USED  FOR  INFRASTRUCTURE  INCLUDING
 CONSTRUCTION,  RECONSTRUCTION, RECONDITIONING AND PRESERVATION OF TRANS-
 PORTATION SYSTEMS, FACILITIES AND EQUIPMENT,  ACQUISITION  OF  PROPERTY,
 AND  FOR  OPERATING  COSTS  INCLUDING  PERSONAL  SERVICES,  NON-PERSONAL
 SERVICES, FRINGE BENEFITS, AND CONTRACTUAL SERVICES. FUNDS MAY  ALSO  BE
 USED  TO  PAY  OR  TO  REIMBURSE  THE  AUTHORITY FOR ITS PAYMENT OF DEBT
 SERVICE AND RESERVE REQUIREMENTS ON THAT PORTION OF AUTHORITY BONDS  AND
 NOTES  THAT  HAVE  BEEN  ISSUED  BY  THE  AUTHORITY SPECIFICALLY FOR THE
 PURPOSES OF THIS ACCOUNT.
   5. ANY REVENUES DEPOSITED IN THE SUBWAY ACTION PLAN ACCOUNT, THE OUTER
 BOROUGH TRANSPORTATION ACCOUNT, OR THE  GENERAL  TRANSPORTATION  ACCOUNT
 PURSUANT  TO  SUBDIVISION  ONE OF THIS SECTION SHALL BE USED EXCLUSIVELY
 FOR THE PURPOSES DESCRIBED, RESPECTIVELY, IN  SUBDIVISIONS  TWO,  THREE,
 AND  FOUR OF THIS SECTION. SUCH REVENUES SHALL ONLY SUPPLEMENT AND SHALL
 NOT SUPPLANT ANY FEDERAL, STATE, OR LOCAL FUNDS EXPENDED BY  THE  METRO-
 POLITAN TRANSPORTATION AUTHORITY, SUCH AUTHORITY'S AFFILIATES OR SUBSID-
 IARIES FOR SUCH RESPECTIVE PURPOSES.
   6.  ANY  REVENUES  DEPOSITED  INTO  THE  NEW  YORK CITY TRANSPORTATION
 ASSISTANCE FUND PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL NOT BE
 DIVERTED INTO THE GENERAL FUND OF THE STATE, ANY OTHER FUND  ESTABLISHED
 BY  THE  CHAPTER  OF  THE LAWS OF TWO THOUSAND EIGHTEEN WHICH ADDED THIS
 SUBDIVISION, ANY OTHER FUND MAINTAINED FOR  THE  SUPPORT  OF  ANY  OTHER
 GOVERNMENTAL  PURPOSE, OR FOR ANY OTHER PURPOSE NOT AUTHORIZED BY SUBDI-
 VISIONS TWO, THREE AND FOUR OF THIS SECTION.
   7. THE AUTHORITY SHALL REPORT ON THE RECEIPT AND  USES  OF  ALL  FUNDS
 RECEIVED  BY  THE  NEW  YORK CITY TRANSPORTATION ASSISTANCE FUND, AND IN
 EACH OF ITS ACCOUNTS, TO THE DIRECTOR OF THE BUDGET, THE TEMPORARY PRES-

 S. 7509--C                         181                        A. 9509--C
 
 IDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY, ON AN ANNUAL BASIS
 NO LATER THAN THE FIRST DAY OF FEBRUARY.
   §  5.  The  public  authorities law is amended by adding a new section
 1279-d to read as follows:
   § 1279-D. SUPPLEMENTAL REVENUE REPORTING  PROGRAM.  1.  ON  OR  BEFORE
 JANUARY  FIRST,  TWO  THOUSAND  NINETEEN,  THE AUTHORITY SHALL DEVELOP A
 SUPPLEMENTAL REVENUE REPORTING PROGRAM. SUCH  PROGRAM  SHALL  PROVIDE  A
 DETAILED  ACCOUNTING  OF  THE AMOUNT SPENT FROM SUPPLEMENTAL REVENUES ON
 ACTIONS, MEASURES OR PROJECTS UNDERTAKEN TO REDUCE MAJOR INCIDENTS  THAT
 HAVE  BEEN  FOUND  TO  CAUSE  DELAYS TO THE NEW YORK CITY SUBWAY SYSTEM,
 INCLUDING BUT NOT LIMITED TO: TRACK INCIDENTS; SIGNAL  FAILURE;  PERSONS
 ON  THE  TRACK;  POLICE  AND MEDICAL ACTIVITY; STRUCTURAL AND ELECTRICAL
 PROBLEMS; AND BROKEN TRAINCAR EQUIPMENT. THE  INFORMATION  DESCRIBED  IN
 THIS  SUBDIVISION,  INCLUDING  THE  SPENDING  DETAILS AND THE ASSOCIATED
 CATEGORY OF MAJOR INCIDENT, SHALL BE UPDATED QUARTERLY AND BE PROMINENT-
 LY POSTED TOGETHER ON THE AUTHORITY'S WEBSITE.
   2. DEFINITIONS. FOR PURPOSES OF THIS SECTION, "SUPPLEMENTAL  REVENUES"
 SHALL  INCLUDE  ANY  FUNDS  APPROPRIATED BY THE STATE OR THE CITY OF NEW
 YORK TO SUPPORT THE NYC SUBWAY ACTION PLAN APPROVED BY THE BOARD OF  THE
 AUTHORITY  AND  ANY REVENUES RECEIVED PURSUANT TO SECTION TWELVE HUNDRED
 NINETY-NINE-H OF THE TAX LAW.
   § 6. Section 1111-c of the  vehicle  and  traffic  law,  as  added  by
 section 9 of part II of chapter 59 of the laws of 2010, paragraphs 1 and
 4  of  subdivision  (a),  subdivision  (b),  paragraphs 3, 4, 5 and 6 of
 subdivision (c) and subdivision (e) as amended by  chapter  239  of  the
 laws of 2015, is amended to read as follows:
   §  1111-c.  Owner liability for failure of operator to comply with bus
 lane restrictions. (a) 1. Notwithstanding any other  provision  of  law,
 the  city  of New York is hereby authorized and empowered to establish a
 bus rapid transit program imposing monetary liability on the owner of  a
 vehicle  for  failure  of  an  operator  thereof to comply with bus lane
 restrictions in such city in accordance  with  the  provisions  of  this
 section.  The  New  York city department of transportation or applicable
 mass transit agency, for purposes of the implementation of such program,
 shall operate bus lane photo devices only within designated bus lanes in
 such bus rapid transit program. Such  bus  lane  photo  devices  may  be
 stationary  or  mobile and shall be activated at locations determined by
 such department of transportation  and/or  on  buses  selected  by  such
 department  of  transportation  in consultation with the applicable mass
 transit agency, HOWEVER, THE APPLICABLE MASS  TRANSIT  AGENCY  MAY  ALSO
 INSTALL  NO LESS THAN FIFTY MOBILE BUS LANE PHOTO DEVICES ON BUSES OPER-
 ATING ON DESIGNATED BUS LANES IN SUCH BUS RAPID  TRANSIT  PROGRAM  BELOW
 96TH  STREET  IN  THE BOROUGH OF MANHATTAN, IN CONSULTATION WITH THE NEW
 YORK CITY DEPARTMENT OF TRANSPORTATION FOR THE PURPOSES OF THIS SECTION.
   2. Any image or images captured by bus lane  photo  devices  shall  be
 inadmissible  in  any disciplinary proceeding convened by the applicable
 mass transit agency or any subsidiary thereof and any proceeding  initi-
 ated  by the department involving licensure privileges of bus operators.
 Any mobile bus lane photo device mounted on  a  bus  shall  be  directed
 outwardly  from  such  bus  to  capture  images  of vehicles operated in
 violation of bus lane restrictions, and images produced by  such  device
 shall  not be used for any other purpose in the absence of a court order
 requiring such images to be produced.
   3. The city of New York shall adopt and enforce  measures  to  protect
 the privacy of drivers, passengers, pedestrians and cyclists whose iden-

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 tity  and  identifying  information  may be captured by a bus lane photo
 device.  Such measures shall include:
   (i)  utilization  of  necessary  technologies to ensure, to the extent
 practicable, that images produced by such bus lane photo  devices  shall
 not  include  images  that  identify  the driver, the passengers, or the
 contents of the vehicle, provided, however, that no notice of  liability
 issued  pursuant  to  this  section shall be dismissed solely because an
 image allows for the identification of the  driver,  the  passengers  or
 other contents of a vehicle;
   (ii)  a  prohibition  on the use or dissemination of vehicles' license
 plate information and other information and images captured by bus  lane
 photo  devices except: (A) as required to establish liability under this
 section or collect payment of penalties; (B) as required by court order;
 or (C) as otherwise required by law;
   (iii)  the  installation  of  signage  at  regular  intervals   within
 restricted  bus  lanes  stating  that bus lane photo devices are used to
 enforce restrictions on vehicular traffic in bus lanes; and
   (iv) oversight procedures to ensure compliance with the aforementioned
 privacy protection measures.
   4. Within the city of New York, such bus lane photo devices shall only
 be operated on designated bus lanes within the bus rapid transit program
 and only from [7:00] 6:00 a.m.  to [7:00] 10:00 p.m. Warning notices  of
 violation will be issued during the first sixty days that bus lane photo
 devices are operated on each route in the bus rapid transit program that
 is established after June fifteenth, two thousand fifteen.
   (b)  If  the  city  of  New  York  has established a bus rapid transit
 program pursuant to subdivision (a) of this  section,  the  owner  of  a
 vehicle  shall  be liable for a penalty imposed pursuant to this section
 if such vehicle was used or operated with the permission of  the  owner,
 express or implied, in violation of any bus lane restrictions that apply
 to routes within such program, and such violation is evidenced by infor-
 mation  obtained  from a bus lane photo device; provided however that no
 owner of a vehicle shall be liable for a  penalty  imposed  pursuant  to
 this  section  where  the operator of such vehicle has been convicted of
 the underlying violation of any bus lane restrictions.
   (c) For purposes of this section, the following terms shall  have  the
 following meanings:
   1.  "owner"  shall  have the meaning provided in article two-B of this
 chapter.
   2. "bus lane photo device" shall mean a  device  that  is  capable  of
 operating  independently  of  an enforcement officer and produces one or
 more images of each vehicle at the time it is in violation of  bus  lane
 restrictions.
   3.  "bus  lane  restrictions"  shall  mean  restrictions on the use of
 designated traffic lanes by vehicles other than buses imposed on  routes
 within a bus rapid transit program by local law and signs erected by the
 department  of  transportation of a city that establishes such a program
 pursuant to this section.
   4. "Bus Rapid Transit Phase I plan" shall mean the following five  bus
 rapid  transit  routes  as designated by the New York city department of
 transportation: Fordham  Road,  First/Second  Avenue,  Nostrand  Avenue,
 Thirty-Fourth  Street, Hylan Boulevard, and an undesignated route in the
 borough of Queens not to exceed ten miles.
   5. "bus rapid transit program" shall mean up to ten routes  designated
 by  the  New York city department of transportation in consultation with
 the applicable mass transit agency, in addition to the Bus Rapid Transit

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 Phase I plan routes, that operate on designated bus lanes and  that  may
 include upgraded signage, enhanced road markings, minimum bus stop spac-
 ing,  off-board fare payment, traffic signal priority for buses, and any
 other enhancement that increases bus speed or reliability.
   6. "designated bus lane" shall mean a lane dedicated for the exclusive
 use of buses with the exceptions allowed under 4-12(m) and 4-08(a)(3) of
 title 34 of the rules of the city of New York.
   (d)  A  certificate,  sworn to or affirmed by a technician employed by
 the city in which the charged violation occurred, or a facsimile  there-
 of, based upon inspection of photographs, microphotographs, videotape or
 other  recorded  images  produced  by  a bus lane photo device, shall be
 prima facie evidence of the facts contained  therein.  Any  photographs,
 microphotographs,  videotape  or other recorded images evidencing such a
 violation shall be available for inspection in any proceeding to adjudi-
 cate the liability for such violation pursuant to this section.
   (e) An owner liable for a violation of a bus lane restriction  imposed
 on  any  route  within  a  bus rapid transit program shall be liable for
 monetary penalties in accordance with a schedule of fines and  penalties
 promulgated  by  the  parking violations bureau of the city of New York;
 provided, however, that the monetary penalty for violating  a  bus  lane
 restriction  shall  not  exceed  one  hundred fifteen dollars; provided,
 further, that an owner shall be liable for an additional penalty not  to
 exceed twenty-five dollars for each violation for the failure to respond
 to a notice of liability within the prescribed time period.
   (f)  An  imposition of liability pursuant to this section shall not be
 deemed a conviction of an operator and shall not be  made  part  of  the
 operating  record of the person upon whom such liability is imposed, nor
 shall it be used for insurance purposes in the provision of motor  vehi-
 cle insurance coverage.
   (g) 1. A notice of liability shall be sent by first class mail to each
 person  alleged  to  be liable as an owner for a violation of a bus lane
 restriction. Personal delivery to the owner shall  not  be  required.  A
 manual or automatic record of mailing prepared in the ordinary course of
 business shall be prima facie evidence of the facts contained therein.
   2.  A  notice  of  liability shall contain the name and address of the
 person alleged to be liable as an owner for a violation of  a  bus  lane
 restriction,  the  registration  number  of the vehicle involved in such
 violation, the location where such violation took  place  including  the
 street  address  or  cross  streets,  one or more images identifying the
 violation, the date and time of such violation  and  the  identification
 number  of  the  bus  lane  photo device which recorded the violation or
 other document locator number.
   3. The notice of liability  shall  contain  information  advising  the
 person charged of the manner and the time in which he or she may contest
 the liability alleged in the notice. Such notice of liability shall also
 contain  a warning to advise the persons charged that failure to contest
 in the manner and time provided shall be deemed an admission of  liabil-
 ity and that a default judgment may be entered thereon.
   4.  The notice of liability shall be prepared and mailed by the agency
 or agencies designated by the city of New  York,  or  any  other  entity
 authorized  by  such  city  to  prepare  and  mail  such notification of
 violation.
   5. Adjudication of the liability imposed upon owners by  this  section
 shall be by the New York city parking violations bureau.
   (h)  If  an owner of a vehicle receives a notice of liability pursuant
 to this section for any  time  period  during  which  such  vehicle  was

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 reported  to  the police department as having been stolen, it shall be a
 valid defense to an allegation of liability for a  violation  of  a  bus
 lane  restriction  that  the  vehicle had been reported to the police as
 stolen  prior to the time the violation occurred and had not been recov-
 ered by such time. For purposes of asserting  the  defense  provided  by
 this  subdivision  it  shall  be sufficient that a certified copy of the
 police report on the stolen vehicle be sent by first class mail  to  the
 parking violations bureau of such city.
   (i)  1.  An  owner  who  is a lessor of a vehicle to which a notice of
 liability was issued pursuant to subdivision (g) of this  section  shall
 not  be  liable  for  the  violation of a bus lane restriction, provided
 that:
   (i) prior to the violation, the lessor has  filed  with  such  parking
 violations  bureau  in  accordance  with  the  provisions of section two
 hundred thirty-nine of this chapter; and
   (ii) within thirty-seven days after receiving notice from such  bureau
 of the date and time of a liability, together with the other information
 contained  in  the  original  notice of liability, the lessor submits to
 such bureau the correct name and address of the lessee  of  the  vehicle
 identified  in  the  notice  of liability at the time of such violation,
 together with such other additional information contained in the rental,
 lease or other contract document, as may be reasonably required by  such
 bureau pursuant to regulations that may be promulgated for such purpose.
   2.  Failure  to comply with subparagraph (ii) of paragraph one of this
 subdivision shall render the lessor liable for the penalty prescribed in
 this section.
   3. Where the lessor complies with the provisions of paragraph  one  of
 this  subdivision,  the  lessee  of  such  vehicle  on  the date of such
 violation shall be deemed to be the owner of such vehicle  for  purposes
 of this section, shall be subject to liability for such violation pursu-
 ant  to this section and shall be sent a notice of liability pursuant to
 subdivision (g) of this section.
   (j) If the owner liable for a violation of a bus lane restriction  was
 not  the operator of the vehicle at the time of the violation, the owner
 may maintain an action for indemnification against the operator.
   (k) Nothing in this section shall be construed to limit the  liability
 of an operator of a vehicle for any violation of bus lane restrictions.
   (l)  If  the city of New York adopts a bus rapid transit demonstration
 program pursuant to subdivision (a) of this section it  shall  submit  a
 report on the results of the use of bus lane photo devices to the gover-
 nor, the temporary president of the senate and the speaker of the assem-
 bly  by April first, two thousand twelve and every two years thereafter.
 Such report shall include, but not be limited to:
   1. a description of the locations and/or buses where  bus  lane  photo
 devices were used;
   2.  the  total  number  of violations recorded on a monthly and annual
 basis;
   3. the total number of notices of liability issued;
   4. the number of fines and total amount of fines paid after the  first
 notice of liability;
   5.  the  number  of violations adjudicated and results of such adjudi-
 cations including breakdowns of dispositions made;
   6. the total amount of revenue realized by such city and  any  partic-
 ipating mass transit agency;
   7. the quality of the adjudication process and its results;
   8. the total number of cameras by type of camera;

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   9.  the total cost to the city and the total cost to any participating
 mass transit agency; and
   10.  a  detailed  report on the bus speeds, reliability, and ridership
 before and after implementation of the bus rapid  transit  demonstration
 program for each bus route, including current statistics.
   (M)  ANY  REVENUE  FROM FINES AND PENALTIES COLLECTED PURSUANT TO THIS
 SECTION FROM ANY MOBILE BUS LANE PHOTO DEVICES THAT WERE  AUTHORIZED  TO
 BE  INSTALLED PURSUANT TO A CHAPTER OF THE LAWS OF TWO THOUSAND EIGHTEEN
 THAT ADDED THIS SUBDIVISION SHALL BE REMITTED BY THE CITY OF NEW YORK TO
 THE APPLICABLE MASS TRANSIT AGENCY ON A QUARTERLY BASIS TO BE  DEPOSITED
 IN  THE  GENERAL TRANSPORTATION ACCOUNT OF THE NEW YORK CITY TRANSPORTA-
 TION ASSISTANCE FUND ESTABLISHED  PURSUANT  TO  SECTION  TWELVE  HUNDRED
 SEVENTY-I OF THE PUBLIC AUTHORITIES LAW.
   §  7.  Metropolitan  transportation sustainability advisory workgroup.
 1. There is hereby established the metropolitan transportation sustaina-
 bility advisory workgroup (the "workgroup") which shall consist  of  ten
 members,  two  of  whom  shall be appointed by the governor, two of whom
 shall be appointed by the speaker of the assembly, two of whom shall  be
 appointed by the temporary president of the senate, one of whom shall be
 appointed  by  the  mayor  of the city of New York, one of whom shall be
 appointed by the chairman of the metropolitan transportation  authority,
 one  of whom shall be appointed by the commissioner of the New York city
 department of transportation and one of whom shall be appointed  by  the
 commissioner  of  the  New  York state department of transportation. The
 chair of the workgroup shall be nominated by the governor.
   2. The advisory workgroup shall undertake a review of the actions  and
 measures  that  are  necessary to provide safe, adequate, efficient, and
 reliable transportation within the city of New York and the metropolitan
 commuter transportation district  within  any  available  resources  and
 shall  review  and  make  recommendations regarding: (a) the adequacy of
 public transportation provided by  the  MTA,  the  Metro-North  Commuter
 Railroad,  the  New York City Transit Authority and the Long Island Rail
 Road, including but not limited to the reliability, sustainability,  and
 transparency  on  project  selection; (b) sustainable funding for public
 transportation needs; (c) motor vehicular traffic within the city of New
 York, including, but not limited to, taxicab and for-hire vehicle trips;
 (d) transportation strategies to advance  the  furtherance  of  environ-
 mental  goals;  (e)  tolling of intra-borough bridges within the city of
 New York; (f) taxicab and for-hire vehicle trips including those  origi-
 nating  and/or  terminating within, or transiting, particular geographic
 areas using publicly available information; and (g) the feasibility of a
 reduced fare program for transportation on New York city transit author-
 ity systems, the Long Island Rail  Road  and  the  Metro-North  Commuter
 Railroad   for  students  attending  a  university,  college,  community
 college, or post-secondary  vocational  institution,  which  is  located
 within the city of New York.
   3.  The advisory workgroup shall, on or before December 31, 2018, by a
 majority vote approve and issue a final report  and  recommendations  to
 the  governor, the temporary president of the senate, the speaker of the
 assembly, the mayor of the city of New York, and the Metropolitan Trans-
 portation Authority.
   4. For the purposes of this section, the following  terms  shall  have
 the following meanings:
   (a)  "Metropolitan  Commuter  Transportation  District" shall mean the
 commuter transportation district as established by section 1262  of  the
 public authorities law;

 S. 7509--C                         186                        A. 9509--C
 
   (b)  "Metropolitan  transportation  authority" or "MTA" shall mean the
 corporation created by section 1263 of the public authorities law;
   (c)  "Taxicab"  shall have the same meaning as such term is defined by
 section 148-a of the vehicle and traffic law and section 19-502  of  the
 administrative code of the city of New York; and
   (d) "For-hire vehicle" shall mean a motor vehicle, other than an ambu-
 lance  as  defined by section 100-b of the vehicle and traffic law and a
 bus as defined in paragraph 34 of subdivision (b) of section 1101 of the
 tax law, carrying passengers for hire.
   § 8. This act shall take effect immediately; provided that:
   a. the amendments to section 1111-c of the  vehicle  and  traffic  law
 made  by  section  six  of  this act shall not affect the repeal of such
 section and shall be deemed repealed therewith; and
   b. the provisions of section seven of this act  shall  expire  and  be
 deemed repealed April 1, 2019.
 
                                 PART OOO

   Section  1. The opening paragraph of subdivision (h) of section 121 of
 chapter 261 of the laws of 1988, amending  the  state  finance  law  and
 other  laws relating to the New York state infrastructure trust fund, as
 amended by section 1 of part CCC of chapter 59 of the laws of  2017,  is
 amended to read as follows:
   The  provisions  of  sections  sixty-two through sixty-six of this act
 [shall expire April fifteenth, two thousand eighteen, provided, however,
 that if the statewide disparity study  regarding  the  participation  of
 minority   and  women-owned  business  enterprises  in  state  contracts
 required pursuant to subdivision one of section three  hundred  twelve-a
 of  the executive law is completed and delivered to the governor and the
 legislature on or before June thirtieth, two  thousand  seventeen,  then
 the  provisions  of  sections  sixty-two  through sixty-six of this act]
 shall expire on December thirty-first, two thousand [eighteen] NINETEEN,
 except that:
   § 2. This act shall take effect immediately.
 
                                 PART PPP
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York city housing authority emergency management act".
   §  2.  The public housing law is amended by adding a new section 402-d
 to read as follows:
   § 402-D.  THE GOVERNOR MAY ISSUE AN EXECUTIVE ORDER, PURSUANT TO ARTI-
 CLE TWO-B OF THE EXECUTIVE LAW AND SUBJECT  TO  THE  AVAILABILITY  OF  A
 STATE  APPROPRIATION, WHICH SHALL GOVERN THE EXAMINATION AND REMEDIATION
 OF CONDITIONS, INCLUDING THE CONSTRUCTION OR RECONSTRUCTION  AS  MAY  BE
 REQUIRED,  OF  RESIDENTIAL  PROPERTIES  OWNED  BY  THE AUTHORITY AND THE
 DEVELOPMENT AND EXECUTION OF A PLAN TO REMEDIATE SUCH CONDITIONS.
   § 3. This act shall take effect immediately.
 
                                 PART QQQ
 
   Section 1. This act shall be known and may be cited as the  "New  York
 city BQE Design-Build act".
   § 2. For the purposes of this act:

 S. 7509--C                         187                        A. 9509--C
 
   (a)  "Authorized  entity"  shall  mean the New York city department of
 design and construction, and the New York city department of transporta-
 tion.
   (b)  "Best  value"  shall  mean  the  basis for awarding contracts for
 services to a proposer that  optimizes  quality,  cost  and  efficiency,
 price  and  performance  criteria, which may include, but is not limited
 to:
   (1) The quality of the proposer's performance on previous projects;
   (2) The timeliness of the proposer's performance on previous projects;
   (3) The level of customer satisfaction with the proposer's performance
 on previous projects;
   (4) The proposer's record of performing previous  projects  on  budget
 and ability to minimize cost overruns;
   (5) The proposer's ability to limit change orders;
   (6) The proposer's ability to prepare appropriate project plans;
   (7) The proposer's technical capacities;
   (8) The individual qualifications of the proposer's key personnel;
   (9) The proposer's ability to assess and manage risk and minimize risk
 impact;
   (10) The proposer's financial capability;
   (11)  The  proposer's  ability to comply with applicable requirements,
 including the provisions of articles 145, 147 and 148 of  the  education
 law;
   (12)  The proposer's past record of compliance with federal, state and
 local laws, rules, licensing requirements, where applicable, and  execu-
 tive  orders, including but not limited to compliance with the labor law
 and other applicable labor and prevailing wage laws, article 15-A of the
 executive law, and any other applicable laws  concerning  minority-  and
 women-owned business enterprise participation;
   (13) The proposer's record of complying with existing labor standards,
 maintaining  harmonious  labor  relations, and protecting the health and
 safety of workers and payment of wages above any locally-defined  living
 wage; and
   (14)  A quantitative factor to be used in evaluation of bids or offers
 for awarding of contracts for bidders or offerers that are certified  as
 minority-  or  women-owned business enterprises pursuant to article 15-A
 of the executive law, and certified pursuant to local law  as  minority-
 or  women-owned business enterprises. Where an agency identifies a quan-
 titative factor pursuant to this paragraph, the agency must specify that
 businesses certified as minority- or  women-owned  business  enterprises
 pursuant to article 15-A of the executive law as well as those certified
 as  minority- or women-owned business enterprises or pursuant to section
 1304 of the New York City charter  are  eligible  to  qualify  for  such
 factor.  Nothing  in  this paragraph shall be construed as a requirement
 that such businesses be concurrently certified as  minority-  or  women-
 owned  business enterprises under both article 15-A of the executive law
 and section 1304 of the New York City charter to qualify for such  quan-
 titative  factors.   Such basis shall reflect, wherever possible, objec-
 tive and quantifiable analysis.
   (c) "Cost plus" shall mean compensating a contractor for the  cost  to
 complete a contract by reimbursing actual costs for labor, equipment and
 materials plus an additional amount for overhead and profit.
   (d)  "Design-build  contract" shall mean a contract for the design and
 construction of a public work with a single entity, which may be a  team
 comprised of separate entities.

 S. 7509--C                         188                        A. 9509--C
 
   (e)  "Project  labor  agreement"  shall  have the meaning set forth in
 subdivision 1 of section 222 of the labor law. A project labor agreement
 shall require participation in apprentice training programs  in  accord-
 ance with paragraph (e) of subdivision 2 of such section.
   (f)  "Public  work"  shall  mean a public work in the city of New York
 related to the following, and shall refer to this public work;  Brooklyn
 Queens  Expressway, from the vicinity of Atlantic avenue to the vicinity
 of Sands street in Kings county.
   § 3. Any contract for a public work undertaken pursuant to  a  project
 labor agreement in accordance with section 222 of the labor law may be a
 design-build contract in accordance with this act.
   §  4. Notwithstanding any general, special or local law, rule or regu-
 lation to the contrary, including but not limited to article 5-A of  the
 general  municipal  law  and in conformity with the requirements of this
 act, for any public work that has an estimated cost of not less than ten
 million dollars and is undertaken pursuant to a project labor  agreement
 in  accordance  with  section 222 of the labor law, an authorized entity
 charged with awarding a contract for public work may use the alternative
 delivery method referred to as design-build contracts.
   (a) A contractor selected by such authorized entity to  enter  into  a
 design-build  contract  shall  be selected through a two-step method, as
 follows:
   (1) Step one. Generation of a list of responding  entities  that  have
 demonstrated   the   general  capability  to  perform  the  design-build
 contract. Such list shall consist of a specified  number  of  responding
 entities,  as determined by an authorized entity, and shall be generated
 based upon the authorized entity's review of  responses  to  a  publicly
 advertised  request for qualifications.  The authorized entity's request
 for qualifications shall include a general  description  of  the  public
 work,  the  maximum  number of responding entities to be included on the
 list, the selection criteria to be used and the relative weight of  each
 criteria  in  generating the list. Such selection criteria shall include
 the qualifications and experience of the design and  construction  team,
 organization,  demonstrated  responsibility, ability of the team or of a
 member or members of the team to comply  with  applicable  requirements,
 including  the provisions of articles 145, 147, and 148 of the education
 law, past record of compliance with the labor law, and such other quali-
 fications the authorized entity deems appropriate, which may include but
 are not limited  to  project  understanding,  financial  capability  and
 record  of  past  performance.  The authorized entity shall evaluate and
 rate all responding entities to the request  for  qualifications.  Based
 upon such ratings, the authorized entity shall list the responding enti-
 ties that shall receive a request for proposals in accordance with para-
 graph two of this subdivision.  To the extent consistent with applicable
 federal  law,  the  authorized  entity shall consider, when awarding any
 contract pursuant to this section, the participation of: (i)  responding
 entities  that are certified as minority- or women-owned business enter-
 prises pursuant to article 15-A  of  the  executive  law,  or  certified
 pursuant  to local law as minority- or women-owned business enterprises;
 and (ii) small business concerns identified pursuant to subdivision  (b)
 of section 139-g of the state finance law.
   (2) Step two. Selection of the proposal which is the best value to the
 authorized  entity.  The  authorized  entity  shall  issue a request for
 proposals to the responding entities listed pursuant to paragraph one of
 this subdivision. If such a responding entity  consists  of  a  team  of
 separate  entities,  the  entities that comprise such a team must remain

 S. 7509--C                         189                        A. 9509--C
 
 unchanged from the responding entity as listed pursuant to paragraph one
 of this subdivision unless otherwise approved by the authorized  entity.
 The  request  for  proposals  shall set forth the public work's scope of
 work,  and  other  requirements, as determined by the authorized entity,
 which may include separate goals for  work  under  the  contract  to  be
 performed  by  businesses certified as minority- or women-owned business
 enterprises pursuant to article 15-A of the executive law, or  certified
 pursuant  to local law as minority- or women-owned business enterprises.
 The request for proposals shall also specify the criteria to be used  to
 evaluate the responses and the relative weight of each of such criteria.
 Such  criteria  shall  include  the  proposal's cost, the quality of the
 proposal's solution, the qualifications and experience of the  proposer,
 and  other  factors deemed pertinent by the authorized entity, which may
 include, but shall not be limited to, the proposal's manner and schedule
 of project implementation, the proposer's ability to complete  the  work
 in  a timely and satisfactory manner, maintenance costs of the completed
 public work, maintenance of traffic approach, and community impact.  Any
 contract  awarded  pursuant to this act shall be awarded to a responsive
 and responsible proposer, which, in consideration  of  these  and  other
 specified  criteria  deemed  pertinent, offers the best value, as deter-
 mined by the authorized entity. The request for proposals shall  include
 a  statement that proposers shall designate in writing those portions of
 the proposal that contain trade secrets or other proprietary information
 that are to remain confidential; that the material designated as  confi-
 dential  shall  be  readily separable from the proposal. Nothing in this
 subdivision shall be construed to prohibit the  authorized  entity  from
 negotiating  final  contract  terms  and  conditions including cost. All
 proposals submitted shall be scored according to the criteria listed  in
 the  request  for  proposals and such final scores shall be published on
 the authorized entity's website.
   (b) An  authorized  entity  awarding  a  design-build  contract  to  a
 contractor  offering the best value may but shall not be required to use
 the following types of contracts:
   (1) A cost-plus  not  to  exceed  guaranteed  maximum  price  form  of
 contract in which the authorized entity shall be entitled to monitor and
 audit  all costs. In establishing the schedule and process for determin-
 ing a guaranteed maximum price,  the  contract  between  the  authorized
 entity and the contractor shall:
   (i)  Describe  the  scope  of the work and the cost of performing such
 work,
   (ii) Include a detailed line item cost breakdown,
   (iii) Include a list of all drawings, specifications and other  infor-
 mation on which the guaranteed maximum price is based,
   (iv)  Include  the  dates of substantial and final completion on which
 the guaranteed maximum price is based, and
   (v) Include a schedule of unit prices; or
   (2) A lump sum contract in which the contractor agrees to accept a set
 dollar amount for a  contract  which  comprises  a  single  bid  without
 providing  a  cost breakdown for all costs such as for equipment, labor,
 materials, as well as such contractor's profit for completing all  items
 of work comprising the public work.
   §  5.  Any  contract entered into pursuant to this act shall include a
 clause requiring that any professional services  regulated  by  articles
 145, 147 and 148 of the education law shall be performed and stamped and
 sealed, where appropriate, by a professional licensed in accordance with
 the appropriate articles.

 S. 7509--C                         190                        A. 9509--C
 
   §  6.  Construction  with  respect to each contract entered into by an
 authorized entity pursuant to this act shall be deemed a  "public  work"
 to  be  performed  in accordance with the provisions of article 8 of the
 labor law, as well as subject to sections 200, 240, 241 and 242 of  such
 law and enforcement of prevailing wage requirements pursuant to applica-
 ble law or, for projects or public works receiving federal aid, applica-
 ble  federal requirements for prevailing wage. Any contract entered into
 pursuant to this act shall  include  a  clause  requiring  the  selected
 design  builder  to  obligate  every  tier  of contractor working on the
 public work to comply with the project  labor  agreement  referenced  in
 section  three  of  this  act, and shall include project labor agreement
 compliance monitoring and enforcement  provisions  consistent  with  the
 applicable project labor agreement.
   §  7.  Each  contract entered into by an authorized entity pursuant to
 this act shall comply with the  objectives  and  goals  with  regard  to
 minority-  and women-owned business enterprises pursuant to, as applica-
 ble, section 6-129 of the administrative code of the city of  New  York,
 or,  for  projects  or  public  works  receiving federal aid, applicable
 federal requirements for disadvantaged business enterprises or minority-
 and women-owned business enterprises.
   § 8. Public works undertaken by an authorized entity pursuant to  this
 act  shall  be  subject to the requirements of article 8 of the environ-
 mental conservation law, and, where applicable, the requirements of  the
 national environmental policy act.
   §  9.  (a)  Notwithstanding  any provision of law to the contrary, all
 rights or benefits, including terms and conditions  of  employment,  and
 protection  of  civil  service  and  collective bargaining status of all
 employees of authorized entities solely in connection  with  the  public
 works identified in subdivision (f) of section two of this act, shall be
 preserved and protected.
   (b)  Nothing  in this act shall result in the: (1) displacement of any
 currently  employed  worker  or  loss  of  position  (including  partial
 displacement  such  as  a  reduction  in the hours of non-overtime work,
 wages or employment benefits), or result in the impairment  of  existing
 collective  bargaining  agreements;  and (2) transfer of existing duties
 and functions related to maintenance and operations currently  performed
 by existing employees of authorized entities to a contractor.
   (c)  Employees  of  authorized  entities  using design-build contracts
 serving in positions in newly created titles shall be  assigned  to  the
 appropriate  bargaining  unit.  Nothing  contained  in this act shall be
 construed to affect: (1) the existing rights of employees of such  enti-
 ties  pursuant  to  an existing collective bargaining agreement, (2) the
 existing representational  relationships  among  employee  organizations
 representing employees of such entities, or (3) the bargaining relation-
 ships between such entities and such employee organizations.
   §  10. The submission of a proposal or responses or the execution of a
 design-build contract pursuant to this act shall not be construed to  be
 a violation of section 6512 of the education law.
   §  11.  Nothing  contained  in this act shall limit the right or obli-
 gation of any authorized entity to comply with  the  provisions  of  any
 existing contract or to award contracts as otherwise provided by law.
   §  12.  For  any  design-build  contract  for a public work defined by
 subdivision (f) of section two of this act, the City of New York or  its
 respective  departments  shall receive approval from the Commissioner of
 New York State Department of Transportation before any request for qual-

 S. 7509--C                         191                        A. 9509--C
 
 ification is issued, such  a  contract  award  is  finalized,  and  such
 contract is executed.
   §  13.  This act shall take effect immediately and shall expire and be
 deemed repealed 2 years after such date,  provided  that,  public  works
 with  requests  for  qualifications issued prior to such repeal shall be
 permitted to continue under this act notwithstanding such repeal.
 
                                 PART RRR

   Section 1. Subdivision 1 of section 208 of the civil service  law,  as
 amended  by  chapter  503  of  the  laws of 1971, is amended and two new
 subdivisions 4 and 5 are added to read as follows:
   1. A public employer shall extend to an employee  organization  certi-
 fied or recognized pursuant to this article the following rights:
   (a)  to  represent  the  employees in negotiations notwithstanding the
 existence of an agreement with an employee organization that is no long-
 er certified or recognized, and in the settlement of grievances; and
   (b) to membership dues deduction, upon presentation of dues  deduction
 authorization  cards  signed by individual employees.  A PUBLIC EMPLOYER
 SHALL COMMENCE MAKING SUCH DEDUCTIONS AS SOON AS PRACTICABLE, BUT IN  NO
 CASE  LATER  THAN  THIRTY  DAYS  AFTER  RECEIVING PROOF OF A SIGNED DUES
 DEDUCTION AUTHORIZATION CARD; AND SUCH DUES SHALL BE TRANSMITTED TO  THE
 CERTIFIED  OR RECOGNIZED EMPLOYEE ORGANIZATION WITHIN THIRTY DAYS OF THE
 DEDUCTION. A PUBLIC EMPLOYER SHALL  ACCEPT  A  SIGNED  AUTHORIZATION  TO
 DEDUCT FROM THE SALARY OF A PUBLIC EMPLOYEE AN AMOUNT FOR THE PAYMENT OF
 HIS  OR  HER  DUES IN ANY FORMAT PERMITTED BY ARTICLE THREE OF THE STATE
 TECHNOLOGY LAW. THE RIGHT TO SUCH MEMBERSHIP DUES DEDUCTION SHALL REMAIN
 IN FULL FORCE AND EFFECT UNTIL:
   (I) AN INDIVIDUAL EMPLOYEE REVOKES MEMBERSHIP IN THE  EMPLOYEE  ORGAN-
 IZATION  IN  WRITING IN ACCORDANCE WITH THE TERMS OF THE SIGNED AUTHORI-
 ZATION; OR
   (II) THE INDIVIDUAL EMPLOYEE IS  NO  LONGER  EMPLOYED  BY  THE  PUBLIC
 EMPLOYER,  PROVIDED  THAT  IF  SUCH  EMPLOYEE IS, WITHIN A PERIOD OF ONE
 YEAR, EMPLOYED BY THE SAME PUBLIC EMPLOYER IN A POSITION REPRESENTED  BY
 THE  SAME  EMPLOYEE ORGANIZATION, THE RIGHT TO SUCH DUES DEDUCTION SHALL
 BE AUTOMATICALLY REINSTATED.
   (C) SHOULD THE INDIVIDUAL EMPLOYEE WHO HAS  SIGNED  A  DUES  DEDUCTION
 AUTHORIZATION CARD EITHER BE REMOVED FROM A PUBLIC EMPLOYER'S PAYROLL OR
 OTHERWISE  PLACED  ON  ANY  TYPE  OF  INVOLUNTARY  OR VOLUNTARY LEAVE OF
 ABSENCE, WHETHER PAID OR UNPAID, SUCH PUBLIC EMPLOYEE'S MEMBERSHIP IN AN
 EMPLOYEE ORGANIZATION SHALL BE CONTINUED  UPON  THAT  PUBLIC  EMPLOYEE'S
 RETURN TO THE PAYROLL OR RESTORATION TO ACTIVE DUTY FROM SUCH A LEAVE OF
 ABSENCE.
   4. (A) WITHIN THIRTY DAYS OF A PUBLIC EMPLOYEE FIRST BEING EMPLOYED OR
 REEMPLOYED BY A PUBLIC EMPLOYER, OR WITHIN THIRTY DAYS OF BEING PROMOTED
 OR TRANSFERRED TO A NEW BARGAINING UNIT, THE PUBLIC EMPLOYER SHALL NOTI-
 FY  THE  EMPLOYEE  ORGANIZATION, IF ANY, THAT REPRESENTS THAT BARGAINING
 UNIT OF THE EMPLOYEE'S  NAME,  ADDRESS,  JOB  TITLE,  EMPLOYING  AGENCY,
 DEPARTMENT OR OTHER OPERATING UNIT, AND WORK LOCATION; AND
   (B)  WITHIN THIRTY DAYS OF PROVIDING THE NOTICE IN PARAGRAPH A OF THIS
 SUBDIVISION, A PUBLIC EMPLOYER SHALL ALLOW A  DULY  APPOINTED  REPRESEN-
 TATIVE OF THE EMPLOYEE ORGANIZATION THAT REPRESENTS THAT BARGAINING UNIT
 TO MEET WITH SUCH EMPLOYEE FOR A REASONABLE AMOUNT OF TIME DURING HIS OR
 HER  WORK  TIME WITHOUT CHARGE TO LEAVE CREDITS, UNLESS OTHERWISE SPECI-
 FIED WITHIN AN AGREEMENT BARGAINED COLLECTIVELY UNDER  ARTICLE  FOURTEEN
 OF  THE  CIVIL  SERVICE LAW, PROVIDED HOWEVER THAT ARRANGEMENTS FOR SUCH

 S. 7509--C                         192                        A. 9509--C
 
 MEETING MUST BE SCHEDULED IN CONSULTATION WITH  A  DESIGNATED  REPRESEN-
 TATIVE OF THE PUBLIC EMPLOYER.
   5.  (A)  IF  ANY  CLAUSE,  SENTENCE, PARAGRAPH, OR SUBDIVISION OF THIS
 SECTION SHALL BE ADJUDGED BY A COURT OF  COMPETENT  JURISDICTION  TO  BE
 UNCONSTITUTIONAL  OR  OTHERWISE INVALID, SUCH JUDGMENT SHALL NOT AFFECT,
 IMPAIR OR INVALIDATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN ITS
 OPERATION TO THE CLAUSE, SENTENCE, PARAGRAPH,  OR  SUBDIVISION  OF  THIS
 SECTION  DIRECTLY  INVOLVED  IN  THE  CONTROVERSY IN WHICH SUCH JUDGMENT
 SHALL HAVE BEEN RENDERED.
   (B) IF ANY CLAUSE, SENTENCE, PARAGRAPH, OR PART OF A  SIGNED  AUTHORI-
 ZATION  SHALL  BE  ADJUDGED  BY  A COURT OF COMPETENT JURISDICTION TO BE
 UNCONSTITUTIONAL OR OTHERWISE  INVALID,  SUCH  DETERMINATION  SHALL  NOT
 AFFECT,  IMPAIR OR INVALIDATE THE REMAINDER OF SUCH SIGNED AUTHORIZATION
 BUT SHALL BE CONFINED IN ITS OPERATION TO THE  CLAUSE,  SENTENCE,  PARA-
 GRAPH,  OR  PART  OF  THE  SIGNED AUTHORIZATION DIRECTLY INVOLVED IN THE
 CONTROVERSY IN WHICH SUCH JUDGMENT SHALL HAVE BEEN RENDERED.
   § 2. Subdivision 1 of section 93-b of the general  municipal  law,  as
 amended  by  chapter  632  of  the  laws  of 1964, is amended to read as
 follows:
   1.  The fiscal or disbursing officer of every municipal corporation or
 other civil division or political subdivision of  the  state  is  hereby
 authorized  to  deduct  from  the wage or salary of any employee of such
 municipal corporation or civil division or political subdivision of  the
 state  such  amount that such employee may specify in writing filed with
 such fiscal or disbursing officer for the payment  of  dues  in  a  duly
 organized  association or organization of civil service employees and to
 transmit the sum so deducted to the said  association  or  organization.
 Any  such  written  authorization  [may be withdrawn by such employee or
 member at any time by filing written notice of such withdrawal with  the
 fiscal  or disbursing officer] SHALL REMAIN IN EFFECT IN ACCORDANCE WITH
 SUBDIVISION ONE OF SECTION TWO HUNDRED EIGHT OF THE CIVIL SERVICE LAW.
   § 3. Subdivision 2 of section 201 of the state finance law, as amended
 by chapter 233 of the laws of 1992, is amended to read as follows:
   2. The comptroller is hereby authorized to deduct from the  salary  of
 any  employee  of  the state such amount as such employee may specify in
 writing filed in a manner determined by the comptroller for the  payment
 of  membership  dues  in a duly organized association or organization of
 civil service employees or faculty members of the state  university  and
 to  transmit  the  sums so deducted to the said association or organiza-
 tion. Any such written authorization [may be withdrawn by such  employee
 at  any  time  upon filing written notice of such withdrawal in a manner
 determined by the comptroller] SHALL REMAIN IN EFFECT IN ACCORDANCE WITH
 SUBDIVISION ONE OF SECTION TWO HUNDRED EIGHT OF THE CIVIL  SERVICE  LAW.
 The  foregoing notwithstanding, and subject to the provisions of article
 fourteen of the civil service  law,  such  deductions  and  transmittals
 shall be terminated as to one or more such associations or organizations
 in  accordance  with  the written directions of the director of employee
 relations, not more than thirty days after receipt by the comptroller of
 such directions. The deductions and transmittals which were the  subject
 of  such  directions shall not thereafter be resumed without the written
 approval of such director.
   § 4. Subdivision 2 of section 209-a  of  the  civil  service  law,  as
 amended  by  chapter  467  of  the  laws  of 1990, is amended to read as
 follows:
   2. Improper employee organization practices. It shall be  an  improper
 practice  for an employee organization or its agents deliberately (a) to

 S. 7509--C                         193                        A. 9509--C
 
 interfere with, restrain or coerce public employees in the  exercise  of
 the  rights  granted in section two hundred two, or to cause, or attempt
 to cause, a public employer to do so PROVIDED, HOWEVER, THAT AN EMPLOYEE
 ORGANIZATION  DOES NOT INTERFERE WITH, RESTRAIN OR COERCE PUBLIC EMPLOY-
 EES WHEN IT LIMITS ITS SERVICES TO AND REPRESENTATION OF NON-MEMBERS  IN
 ACCORDANCE WITH THIS SUBDIVISION; (b) to refuse to negotiate collective-
 ly  in good faith with a public employer, provided it is the duly recog-
 nized or certified representative of the employees of such employer;  or
 (c)  to breach its duty of fair representation to public employees under
 this article. NOTWITHSTANDING ANY LAW, RULE OR REGULATION TO THE CONTRA-
 RY, AN EMPLOYEE ORGANIZATION'S DUTY OF FAIR REPRESENTATION TO  A  PUBLIC
 EMPLOYEE IT REPRESENTS BUT WHO IS NOT A MEMBER OF THE EMPLOYEE ORGANIZA-
 TION  SHALL BE LIMITED TO THE NEGOTIATION OR ENFORCEMENT OF THE TERMS OF
 AN AGREEMENT WITH THE PUBLIC EMPLOYER.  NO  PROVISION  OF  THIS  ARTICLE
 SHALL BE CONSTRUED TO REQUIRE AN EMPLOYEE ORGANIZATION TO PROVIDE REPRE-
 SENTATION  TO  A NON-MEMBER (I) DURING QUESTIONING BY THE EMPLOYER, (II)
 IN STATUTORY OR ADMINISTRATIVE PROCEEDINGS OR TO  ENFORCE  STATUTORY  OR
 REGULATORY  RIGHTS, OR (III) IN ANY STAGE OF A GRIEVANCE, ARBITRATION OR
 OTHER CONTRACTUAL PROCESS CONCERNING THE EVALUATION OR DISCIPLINE  OF  A
 PUBLIC EMPLOYEE WHERE THE NON-MEMBER IS PERMITTED TO PROCEED WITHOUT THE
 EMPLOYEE ORGANIZATION AND BE REPRESENTED BY HIS OR HER OWN ADVOCATE. NOR
 SHALL  ANY  PROVISION  OF THIS ARTICLE PROHIBIT AN EMPLOYEE ORGANIZATION
 FROM PROVIDING LEGAL,  ECONOMIC  OR  JOB-RELATED  SERVICES  OR  BENEFITS
 BEYOND  THOSE  PROVIDED  IN THE AGREEMENT WITH A PUBLIC EMPLOYER ONLY TO
 ITS MEMBERS.
   § 5. Nothing in this act shall be construed  to  impede,  infringe  or
 diminish  the  rights and benefits which accrue to an employee organiza-
 tion through a bonafide collective bargaining agreement.
   § 6. This act shall take effect immediately.
 
                                 PART SSS
 
   Section 1. Subdivision 2 of section 3204  of  the  education  law,  as
 amended  by  chapter  827  of  the  laws  of 1982, is amended to read as
 follows:
   2. Quality and language of instruction;  text-books.  (I)  Instruction
 may  be  given  only  by  a  competent  teacher.  In the teaching of the
 subjects of instruction prescribed by this section, English shall be the
 language of  instruction,  and  text-books  used  shall  be  written  in
 English,  except  that  for a period of three years, which period may be
 extended by the commissioner with respect  to  individual  pupils,  upon
 application  therefor by the appropriate school authorities, to a period
 not in excess of six years, from  the  date  of  enrollment  in  school,
 pupils  who, by reason of foreign birth or ancestry have limited English
 proficiency, shall be provided with instructional programs as  specified
 in  subdivision two-a of this section and the regulations of the commis-
 sioner. The purpose of providing such pupils with instruction  shall  be
 to enable them to develop academically while achieving competence in the
 English  language.  Instruction  given  to  a  minor elsewhere than at a
 public school shall be at least substantially equivalent to the instruc-
 tion given to minors of like age and attainments at the  public  schools
 of the city or district where the minor resides.
   (II)  FOR  PURPOSES OF CONSIDERING SUBSTANTIAL EQUIVALENCE PURSUANT TO
 THIS SUBDIVISION FOR NONPUBLIC ELEMENTARY AND MIDDLE SCHOOLS  THAT  ARE:
 (1) NON-PROFIT CORPORATIONS, (2) HAVE A BI-LINGUAL PROGRAM, AND (3) HAVE
 AN  EDUCATIONAL  PROGRAM THAT EXTENDS FROM NO LATER THAN NINE A.M. UNTIL

 S. 7509--C                         194                        A. 9509--C
 
 NO EARLIER THAN FOUR P.M. FOR GRADES ONE THROUGH THREE, AND  NO  EARLIER
 THAN  FIVE THIRTY P.M. FOR GRADES FOUR THROUGH EIGHT, ON THE MAJORITY OF
 WEEKDAYS, THE DEPARTMENT SHALL CONSIDER THE FOLLOWING, BUT  NOT  LIMITED
 TO:  IF  THE  CURRICULUM PROVIDES ACADEMICALLY RIGOROUS INSTRUCTION THAT
 DEVELOPS CRITICAL THINKING SKILLS IN THE SCHOOL'S STUDENTS, TAKING  INTO
 ACCOUNT  THE  ENTIRETY  OF THE CURRICULUM, OVER THE COURSE OF ELEMENTARY
 AND MIDDLE SCHOOL, INCLUDING INSTRUCTION IN ENGLISH  THAT  WILL  PREPARE
 PUPILS  TO  READ  FICTION AND NONFICTION TEXT FOR INFORMATION AND TO USE
 THAT INFORMATION TO CONSTRUCT WRITTEN ESSAYS THAT STATE A POINT OF  VIEW
 OR  SUPPORT  AN  ARGUMENT;  INSTRUCTION IN MATHEMATICS THAT WILL PREPARE
 PUPILS TO SOLVE REAL WORLD PROBLEMS USING BOTH NUMBER SENSE AND  FLUENCY
 WITH  MATHEMATICAL  FUNCTIONS  AND OPERATIONS; INSTRUCTION IN HISTORY BY
 BEING ABLE TO INTERPRET AND ANALYZE PRIMARY TEXT TO IDENTIFY AND EXPLORE
 IMPORTANT EVENTS IN HISTORY, TO CONSTRUCT WRITTEN  ARGUMENTS  USING  THE
 SUPPORTING  INFORMATION  THEY  GET  FROM PRIMARY SOURCE MATERIAL, DEMON-
 STRATE AN UNDERSTATING OF THE ROLE OF GEOGRAPHY  AND  ECONOMICS  IN  THE
 ACTIONS  OF  WORLD CIVILIZATIONS, AND AN UNDERSTANDING OF CIVICS AND THE
 RESPONSIBILITIES OF CITIZENS IN WORLD COMMUNITIES;  AND  INSTRUCTION  IN
 SCIENCE BY LEARNING HOW TO GATHER, ANALYZE AND INTERPRET OBSERVABLE DATA
 TO  MAKE  INFORMED  DECISIONS  AND  SOLVE PROBLEMS MATHEMATICALLY, USING
 DEDUCTIVE AND INDUCTIVE REASONING TO SUPPORT A HYPOTHESIS,  AND  HOW  TO
 DIFFERENTIATE BETWEEN CORRELATIONAL AND CAUSAL RELATIONSHIPS.
   (III)  FOR PURPOSES OF CONSIDERING SUBSTANTIAL EQUIVALENCE PURSUANT TO
 THIS SUBDIVISION FOR NONPUBLIC HIGH SCHOOLS THAT:  (1)  ARE  ESTABLISHED
 FOR  PUPILS  IN HIGH SCHOOL WHO HAVE GRADUATED FROM AN ELEMENTARY SCHOOL
 THAT PROVIDES INSTRUCTION AS DESCRIBED IN THIS SECTION, (2) ARE  A  NON-
 PROFIT  CORPORATION,  (3)  HAVE  A  BI-LINGUAL  PROGRAM, AND (4) HAVE AN
 EDUCATIONAL PROGRAM THAT EXTENDS FROM NO LATER THAN NINE A.M.  UNTIL  NO
 EARLIER  THAN  SIX P.M. ON THE MAJORITY OF WEEKDAYS THE DEPARTMENT SHALL
 CONSIDER THE FOLLOWING BUT NOT LIMITED TO: IF  THE  CURRICULUM  PROVIDES
 ACADEMICALLY RIGOROUS INSTRUCTION THAT DEVELOPS CRITICAL THINKING SKILLS
 IN THE SCHOOL'S STUDENTS, THE OUTCOMES OF WHICH, TAKING INTO ACCOUNT THE
 ENTIRETY OF THE CURRICULUM, RESULT IN A SOUND BASIC EDUCATION.
   (IV) NOTHING HEREIN SHALL BE CONSTRUED TO ENTITLE OR PERMIT ANY SCHOOL
 TO  RECEIVE AN INCREASE IN MANDATED SERVICES AID PURSUANT TO 8 NYCRR 176
 ON ACCOUNT OF PROVIDING A LONGER SCHOOL DAY.
   (V) THE COMMISSIONER SHALL  BE  THE  ENTITY  THAT  DETERMINES  WHETHER
 NONPUBLIC  ELEMENTARY  AND  SECONDARY SCHOOLS ARE IN COMPLIANCE WITH THE
 ACADEMIC REQUIREMENTS SET FORTH IN PARAGRAPHS (II)  AND  (III)  OF  THIS
 SUBDIVISION.
   § 2. This act shall take effect immediately.
 
                                 PART TTT
 
                           Intentionally Omitted
 
                                 PART UUU
 
   Section  1.  Subdivision 3 of section 2825-f of the public health law,
 as added by section 1 of part Q of a chapter of the laws of 2018  amend-
 ing the public health law relating to the health care facility transfor-
 mation  program,  as  proposed  in legislative bill numbers S.7507-C and
 A.9507-C, is amended to read as follows:
   3. Notwithstanding  section  one  hundred  sixty-three  of  the  state
 finance  law or any inconsistent provision of law to the contrary, up to
 [four hundred seventy-five] FIVE HUNDRED TWENTY-FIVE million dollars  of

 S. 7509--C                         195                        A. 9509--C
 
 the  funds  appropriated  for  this  program  shall be awarded without a
 competitive bid or request for proposal process  for  grants  to  health
 care providers (hereafter "applicants"). Provided, however, that a mini-
 mum  of:  (a) sixty million dollars of total awarded funds shall be made
 to community-based health care providers, which  for  purposes  of  this
 section  shall  be defined as a diagnostic and treatment center licensed
 or granted an operating certificate under this article; a mental  health
 clinic  licensed or granted an operating certificate under article thir-
 ty-one of the mental hygiene law; a  substance  use  disorder  treatment
 clinic  licensed or granted an operating certificate under article thir-
 ty-two of the mental hygiene law; a  primary  care  provider;  a  clinic
 licensed  or  granted  an operating certificate under article sixteen of
 the mental hygiene law; a  home  care  provider  certified  or  licensed
 pursuant  to article thirty-six of this chapter; or hospices licensed or
 granted an operating certificate pursuant to article forty of this chap-
 ter and (b) forty-five million dollars of the total awarded funds  shall
 be made to residential health care facilities.
   §  2.  This  act  shall  take  effect on the same date and in the same
 manner as Part Q of a chapter of the laws of 2018, amending  the  public
 health  law relating to the health care facility transformation program,
 as proposed in legislative bill numbers  S.7507-C  and  A.9507-C,  takes
 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 UUU of this act shall
 be as specifically set forth in the last section of such Parts.