S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 2009                                                  A. 3009
 
                       S E N A T E - A S S E M B L Y
 
                             January 23, 2017
                                ___________
 
 IN  SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
   cle seven of the Constitution -- read twice and ordered  printed,  and
   when printed to be committed to the Committee on Finance
 
 IN  ASSEMBLY  --  A  BUDGET  BILL, submitted by the Governor pursuant to
   article seven of the Constitution -- read once  and  referred  to  the
   Committee on Ways and Means

 AN  ACT  to amend the alcoholic beverage control law, in relation to the
   creation of a special license to sell alcoholic  beverages  at  retail
   for  consumption  off  the  premises  (Part A); to amend the alcoholic
   beverage control law, in relation to alcohol in certain motion picture
   theatres,  and  providing  for  the  expiration  and  repeal  of  such
   provisions  upon the expiration thereof (Part B); to amend the tax law
   and the administrative code of the city of New York,  in  relation  to
   the  school  tax reduction credit for residents of a city with a popu-
   lation of one million or more; and to repeal section 54-f of the state
   financial law relating thereto (Part C); to amend  the  real  property
   tax  law,  in  relation to the maximum amount of tax savings allowable
   under the STAR program (Part D); to amend the real  property  tax  law
   and  the  tax  law, in relation to making the STAR income verification
   program mandatory; and  repealing  certain  provisions  of  such  laws
   relating  thereto  (Part  E);  to  amend the real property tax law, in
   relation to authorizing partial payments of property taxes  (Part  F);
   to  amend  the  tax  law,  in relation to the STAR personal income tax
   credit (Part G); to amend the real property tax law and the  tax  law,
   in  relation  to  the  applicability of the STAR credit to cooperative
   apartment corporations; and repealing certain provisions  of  the  tax
   law  relating  thereto  (Part  H); to amend chapter 540 of the laws of
   1992, amending the real property tax  law  relating  to  oil  and  gas
   charges,  in  relation to the effectiveness thereof (Part I); to amend
   the state finance law, in relation to the  veterans'  home  assistance
   fund  (Part J); to amend the economic development law and the tax law,
   in relation to life sciences companies (Part K); to amend the economic
   development law,  in  relation  to  the  employee  training  incentive
   program  (Part  L); to amend the tax law, in relation to extending the
   empire state  film  production  credit  and  empire  state  film  post
   production credit for three years (Part M); to amend the labor law and
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12574-03-7

 S. 2009                             2                            A. 3009
 
   the  tax  law,  in relation to a program to provide tax incentives for
   employers employing at risk youth (Part N); to amend the tax  law,  in
   relation  to  extending  the  alternative  fuels  and electric vehicle
   recharging  property  credit for five years (Part O); to amend the tax
   law, in relation to the investment tax credit (Part P); to  amend  the
   tax law, in relation to the treatment of single member limited liabil-
   ity companies that are disregarded entities in determining eligibility
   for tax credits (Part Q); to amend the tax law, in relation to extend-
   ing  the  top  personal income tax rate for three years; and to repeal
   subparagraph (B) of paragraph 1 of subsection (a), subparagraph (B) of
   paragraph 1 of subsection (b) and subparagraph (B) of paragraph  1  of
   subsection  (c) of section 601 of the tax law, relating to the imposi-
   tion of tax (Part R); to amend the tax law and the administrative code
   of the city of New York, in relation to permanently extending the high
   income charitable contribution deduction limitation (Part S); to amend
   the tax law, in relation to increasing the child  and  dependent  care
   tax  credit  (Part T); to amend the tax law, in relation to the finan-
   cial institution data match system for state tax  collection  purposes
   (Part  U); to amend the civil service law and the tax law, in relation
   to tax clearances for applicants for civil  service  employment  (Part
   V); to amend chapter 266 of the laws of 1986, amending the civil prac-
   tice  law and rules and other laws relating to malpractice and profes-
   sional medical  conduct,  in  relation  to  apportioning  premium  for
   certain  policies;  to  amend part J of chapter 63 of the laws of 2001
   amending chapter 266 of the laws of 1986, amending the civil  practice
   law  and rules and other laws relating to malpractice and professional
   medical conduct, in relation to extending certain provisions  concern-
   ing  the  hospital excess liability pool; and to amend the tax law, in
   relation to  extending  certain  provisions  concerning  the  hospital
   excess  liability  pool  and requiring a tax clearance for doctors and
   dentists to be eligible for such excess coverage (Part  W);  to  amend
   chapter 59 of the laws of 2013, amending the tax law relating to serv-
   ing an income execution with respect to individual tax debtors without
   filing  a  warrant,  in  relation to making the provisions authorizing
   service of income executions on individual tax debtors without  filing
   a warrant permanent (Part X); to amend the tax law, in relation to the
   taxation  of  S corporations; and to repeal certain provisions of such
   law relating thereto (Part Y); to amend the tax law,  in  relation  to
   the  definition  of  New  York  source  income  (Part Z); to close the
   nonresident partnership asset sale loophole (Part AA);  to  amend  the
   tax  law,  in  relation  to requiring marketplace providers to collect
   sales tax (Part BB); to amend the tax law, in relation to closing  the
   existing tax loopholes for transactions between related entities under
   article  28  and  pursuant  to the authority of article 29 of such law
   (Part CC); to amend the tax law, in relation to clarifying the imposi-
   tion of sales tax on gas  service  or  electric  service  of  whatever
   nature (Part DD); to amend the tax law and the county law, in relation
   to  the  imposition  of a surcharge on prepaid wireless communications
   service and devices (Part EE); to amend the public health law and  the
   education law, in relation to tobacco products, herbal cigarettes, and
   vapor  products;  and  to amend the tax law, in relation to imposing a
   tax on vapor products (Part FF); to amend the tax law in  relation  to
   the  amount  of  untaxed cigarettes required to seize a vehicle and to
   increase the penalty for the possession or  sale  of  counterfeit  tax
   stamps  or  the device necessary to manufacture such stamps (Part GG);
   to amend the tax law, in relation to authorizing jeopardy  assessments

 S. 2009                             3                            A. 3009
 
   on cigarette and tobacco product taxes assessed under article 20 ther-
   eof  (Part HH); to amend the tax law, in relation to the imposition of
   a tax on cigars under article 20 thereof (Part II); to amend  the  tax
   law,  in  relation  to  the definition of a conveyance for real estate
   transfer taxes (Part JJ); to amend the tax law,  in  relation  to  the
   additional  real  estate  transfer tax (Part KK); to amend the racing,
   pari-mutuel wagering and breeding law, in relation  to  modifying  the
   funding  of  and improve the operation of drug testing in horse racing
   (Part LL); to amend the racing, pari-mutuel wagering and breeding law,
   the executive law, and the general municipal law, in relation  to  the
   operation  of  charitable gaming; to amend the social services law, in
   relation  to  penalties  for  unauthorized  transactions  relating  to
   certain  public  assistance;  to  amend  the  tax  law, in relation to
   certain income derived from the conduct of certain  games  of  chance;
   and  to  repeal  certain  provisions of the executive law, the general
   municipal law and the tax law relating thereto (Part MM); to amend the
   racing, pari-mutuel wagering and breeding law, in relation to allowing
   for the reprivatization  of  NYRA,  and  under  certain  circumstances
   racing  after  sunset and a reduction in winter racing days (Part NN);
   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  OO);  to amend the tax law, in relation to
   vendor fees paid to vendor tracks (Part PP); to amend the tax law,  in
   relation  to  capital  awards to vendor tracks (Part QQ); and to amend
   the state finance law, in relation  to  the  distribution  of  certain
   gaming aid; and providing for the repeal of such provisions upon expi-
   ration thereof (Part RR)
 
   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 2017-2018
 state  fiscal  year.  Each  component  is wholly contained within a Part
 identified as Parts A through RR. 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

 S. 2009                             4                            A. 3009
 
   Section  1.  The alcoholic beverage control law is amended by adding a
 new section 63-b to read as follows:
   §  63-B.  SPECIAL  LICENSE  TO  SELL ALCOHOLIC BEVERAGES AT RETAIL FOR
 CONSUMPTION OFF THE PREMISES.  1. ANY PERSON WITH  A  WRITTEN  AGREEMENT
 WITH  THE  DEPARTMENT OF AGRICULTURE AND MARKETS TO OPERATE A "TASTE NY"
 STORE MAY MAKE APPLICATION TO THE AUTHORITY FOR  A  SPECIAL  LICENSE  TO
 SELL  ALCOHOLIC  BEVERAGES  AT  RETAIL  FOR CONSUMPTION OFF THE LICENSED
 PREMISES SUBJECT TO THE PROVISIONS OF SUCH WRITTEN AGREEMENT  AND  THOSE
 SET  FORTH HEREIN. NOTWITHSTANDING ANY LAW TO THE CONTRARY, NO ALCOHOLIC
 BEVERAGE SHALL BE SOLD OR TASTINGS ALLOWED ON THE THRUWAY.
   2. AN APPLICATION FOR A LICENSE UNDER THIS SECTION SHALL  BE  IN  SUCH
 FORM  AND  SHALL  CONTAIN  SUCH  INFORMATION AS SHALL BE REQUIRED BY THE
 AUTHORITY AND SHALL BE ACCOMPANIED BY A CHECK OR  DRAFT  IN  THE  AMOUNT
 REQUIRED BY THIS CHAPTER.
   3.  SECTION  FIFTY-FOUR  OF  THIS  CHAPTER  SHALL CONTROL SO FAR AS IS
 APPLICABLE TO THE PROCEDURE IN CONNECTION WITH SUCH APPLICATION.
   4. A LICENSE UNDER THIS SECTION SHALL BE ISSUED TO ALL ELIGIBLE APPLI-
 CANTS EXCEPT FOR GOOD CAUSE SHOWN, PROVIDED, HOWEVER, THAT NO MORE  THAN
 TEN  SUCH  LICENSES  SHALL  BE  IN EFFECT AT ANY TIME, AND THAT ALL SUCH
 LICENSES SHALL BE ISSUED IN A MANNER CONSISTENT  WITH  FEDERAL  LAW  AND
 REGULATIONS.    SUCH LICENSE SHALL BE LIMITED TO THE PREMISES SUBJECT TO
 THE WRITTEN AGREEMENT WITH THE DEPARTMENT OF AGRICULTURE AND MARKETS.
   5. A LICENSE UNDER THIS SECTION SHALL NOT BE SUBJECT TO THE PROVISIONS
 OF SUBDIVISIONS TWO, THREE AND SIX OF SECTION ONE HUNDRED FIVE  OF  THIS
 CHAPTER.
   6.  SUBJECT TO ANY FURTHER RESTRICTION CONTAINED IN THE AGREEMENT WITH
 THE DEPARTMENT OF AGRICULTURE AND  MARKETS,  THE  HOLDER  OF  A  LICENSE
 ISSUED  UNDER  THIS  SECTION MAY OFFER SAMPLES OF ALCOHOLIC BEVERAGES TO
 CUSTOMERS TO BE CONSUMED ON THE LICENSED  PREMISES  UPON  THE  FOLLOWING
 CONDITIONS:
   (A) NO FEE SHALL BE CHARGED FOR ANY SAMPLE;
   (B) EACH SAMPLE SHALL BE LIMITED;
   (I)  IN  THE CASE OF BEER, WINE PRODUCTS AND CIDER, TO THREE OUNCES OR
 LESS;
   (II) IN THE CASE OF WINE, TO TWO OUNCES;
   (III) IN THE CASE OF LIQUOR, TO ONE-QUARTER OUNCE;
   (C) NO SAMPLE SHALL BE PROVIDED TO A CUSTOMER DURING THE HOURS PROHIB-
 ITED BY THE PROVISIONS OF SUBDIVISION FIVE OF SECTION ONE HUNDRED SIX OF
 THIS CHAPTER; AND
   (D) NO CUSTOMER MAY BE PROVIDED WITH MORE THAN THREE  SAMPLES  IN  ONE
 CALENDAR DAY.
   7.  SUBJECT TO ANY FURTHER RESTRICTION CONTAINED IN THE AGREEMENT WITH
 THE DEPARTMENT OF AGRICULTURE AND  MARKETS,  THE  HOLDER  OF  A  LICENSE
 ISSUED UNDER THIS SECTION SHALL NOT:
   (A)  OFFER  ANY  TASTINGS OF, OR SELL, ANY BEER OR CIDER EXCEPT DURING
 THE HOURS IN WHICH BEER MAY BE SOLD FOR CONSUMPTION OFF THE PREMISES  IN
 THE COUNTY IN WHICH THE LICENSED PREMISES IS LOCATED; AND
   (B)  OFFER  ANY TASTINGS OF, OR SELL, ANY LIQUOR OR WINE EXCEPT DURING
 THE HOURS IN WHICH LIQUOR AND WINE MAY BE SOLD FOR CONSUMPTION  OFF  THE
 PREMISES IN THE COUNTY IN WHICH THE LICENSED PREMISES IS LOCATED.
   8. IN ADDITION TO THE SALE OF ALCOHOLIC BEVERAGES, THE FOLLOWING ITEMS
 MAY BE SOLD AT A PREMISES LICENSED UNDER THIS SECTION:
   (A)  NON-ALCOHOLIC  BEVERAGES  FOR CONSUMPTION OFF PREMISES, INCLUDING
 BUT NOT LIMITED TO BOTTLED WATER, JUICE AND SODA BEVERAGES;
   (B) FOOD ITEMS GROWN  OR  PRODUCED  IN  THIS  STATE  NOT  SPECIFICALLY
 PREPARED FOR IMMEDIATE CONSUMPTION UPON THE PREMISES; AND

 S. 2009                             5                            A. 3009
 
   (C)  SOUVENIR  ITEMS,  WHICH  SHALL  INCLUDE,  BUT  NOT  BE LIMITED TO
 ARTWORK, CRAFTS, CLOTHING, AGRICULTURAL PRODUCTS AND ANY OTHER  ARTICLES
 WHICH CAN BE CONSTRUED TO PROPAGATE TOURISM WITHIN THE STATE.
   9.  A  LICENSE  ISSUED UNDER THIS SECTION SHALL BE EFFECTIVE FOR THREE
 YEARS AT THREE TIMES THE ANNUAL FEE.
   § 2. Subdivision 3 of section 17 of  the  alcoholic  beverage  control
 law,  as  amended  by  section  3 of chapter 297 of the laws of 2016, is
 amended to read as follows:
   3. To revoke, cancel or suspend for cause any license or permit issued
 under this chapter and/or to impose a civil penalty  for  cause  against
 any  holder  of a license or permit issued pursuant to this chapter. Any
 civil penalty so imposed shall  not  exceed  the  sum  of  ten  thousand
 dollars  as  against  the holder of any retail permit issued pursuant to
 sections ninety-five,  ninety-seven,  ninety-eight,  ninety-nine-d,  and
 paragraph f of subdivision one of section ninety-nine-b of this chapter,
 and  as  against  the  holder  of  any retail license issued pursuant to
 sections fifty-three-a,  fifty-four,  fifty-four-a,  fifty-five,  fifty-
 five-a,  sixty-three,  SIXTY-THREE-B,  sixty-four,  sixty-four-a, sixty-
 four-b, sixty-four-c, seventy-six-f, seventy-nine, eighty-one and eight-
 y-one-a of this chapter, and the  sum  of  thirty  thousand  dollars  as
 against the holder of a license issued pursuant to sections fifty-three,
 sixty-one-a,  sixty-one-b, seventy-six, seventy-six-a, and seventy-eight
 of this chapter, provided that the civil penalty against the holder of a
 wholesale license issued pursuant to section fifty-three of this chapter
 shall not exceed the sum of ten thousand  dollars  where  that  licensee
 violates  provisions  of  this  chapter during the course of the sale of
 beer at retail to a person for consumption at home, and the sum  of  one
 hundred  thousand  dollars  as  against the holder of any license issued
 pursuant to sections fifty-one, sixty-one, and sixty-two of  this  chap-
 ter.  Any  civil penalty so imposed shall be in addition to and separate
 and apart from the terms and provisions of the bond required pursuant to
 section one hundred twelve of this chapter. Provided that no  appeal  is
 pending on the imposition of such civil penalty, in the event such civil
 penalty  imposed  by  the  division remains unpaid, in whole or in part,
 more than forty-five days after written demand for payment has been sent
 by first class mail to the address of the licensed premises, a notice of
 impending default judgment shall be sent by  first  class  mail  to  the
 licensed premises and by first class mail to the last known home address
 of the person who signed the most recent license application. The notice
 of  impending  default  judgment  shall  advise the licensee: (a) that a
 civil penalty was imposed on the licensee; (b) the date the penalty  was
 imposed;  (c)  the  amount  of  the civil penalty; (d) the amount of the
 civil penalty that remains unpaid as of the date of the notice; (e)  the
 violations for which the civil penalty was imposed; and (f) that a judg-
 ment  by  default  will be entered in the supreme court of the county in
 which the licensed premises are located, or other court of civil  juris-
 diction  or  any  other  place provided for the entry of civil judgments
 within the state of New York unless the division receives  full  payment
 of  all civil penalties due within twenty days of the date of the notice
 of impending default judgment. If  full  payment  shall  not  have  been
 received  by the division within thirty days of mailing of the notice of
 impending default judgment, the division shall  proceed  to  enter  with
 such  court a statement of the default judgment containing the amount of
 the penalty or penalties remaining due and unpaid, along with  proof  of
 mailing  of the notice of impending default judgment. The filing of such
 judgment shall have the full force and effect of a default judgment duly

 S. 2009                             6                            A. 3009
 
 docketed with such court pursuant to the civil practice  law  and  rules
 and  shall  in  all  respects  be  governed  by  that chapter and may be
 enforced in the same manner and with the same effect as that provided by
 law  in respect to execution issued against property upon judgments of a
 court of record. A judgment entered pursuant to this  subdivision  shall
 remain  in  full  force  and  effect for eight years notwithstanding any
 other provision of law.
   § 3. Subdivision 3 of section 17 of  the  alcoholic  beverage  control
 law,  as  amended  by  section  4 of chapter 297 of the laws of 2016, is
 amended to read as follows:
   3. To revoke, cancel or suspend for cause any license or permit issued
 under this chapter and/or to impose a civil penalty  for  cause  against
 any  holder  of a license or permit issued pursuant to this chapter. Any
 civil penalty so imposed shall  not  exceed  the  sum  of  ten  thousand
 dollars  as  against  the holder of any retail permit issued pursuant to
 sections ninety-five,  ninety-seven,  ninety-eight,  ninety-nine-d,  and
 paragraph f of subdivision one of section ninety-nine-b of this chapter,
 and  as  against  the  holder  of  any retail license issued pursuant to
 sections fifty-three-a,  fifty-four,  fifty-four-a,  fifty-five,  fifty-
 five-a,  sixty-three,  SIXTY-THREE-B,  sixty-four,  sixty-four-a, sixty-
 four-b,  sixty-four-c,  seventy-six-f,  seventy-nine,  eighty-one,   and
 eighty-one-a  of this chapter, and the sum of thirty thousand dollars as
 against the holder of a license issued pursuant to sections fifty-three,
 sixty-one-a, sixty-one-b, seventy-six, seventy-six-a  and  seventy-eight
 of this chapter, provided that the civil penalty against the holder of a
 wholesale license issued pursuant to section fifty-three of this chapter
 shall  not  exceed  the  sum of ten thousand dollars where that licensee
 violates provisions of this chapter during the course  of  the  sale  of
 beer  at  retail to a person for consumption at home, and the sum of one
 hundred thousand dollars as against the holder  of  any  license  issued
 pursuant to sections fifty-one, sixty-one and sixty-two of this chapter.
 Any  civil  penalty  so imposed shall be in addition to and separate and
 apart from the terms and provisions of the  bond  required  pursuant  to
 section  one  hundred twelve of this chapter. Provided that no appeal is
 pending on the imposition of such civil penalty, in the event such civil
 penalty imposed by the division remains unpaid, in  whole  or  in  part,
 more than forty-five days after written demand for payment has been sent
 by first class mail to the address of the licensed premises, a notice of
 impending  default  judgment  shall  be  sent by first class mail to the
 licensed premises and by first class mail to the last known home address
 of the person who signed the most recent license application. The notice
 of impending default judgment shall advise  the  licensee:  (a)  that  a
 civil  penalty was imposed on the licensee; (b) the date the penalty was
 imposed; (c) the amount of the civil penalty;  (d)  the  amount  of  the
 civil  penalty that remains unpaid as of the date of the notice; (e) the
 violations for which the civil penalty was imposed; and (f) that a judg-
 ment by default will be entered in the supreme court of  the  county  in
 which  the licensed premises are located, or other court of civil juris-
 diction, or any other place provided for the entry  of  civil  judgments
 within  the  state of New York unless the division receives full payment
 of all civil penalties due within twenty days of the date of the  notice
 of  impending  default  judgment.  If  full  payment shall not have been
 received by the division within thirty days of mailing of the notice  of
 impending  default  judgment,  the  division shall proceed to enter with
 such court a statement of the default judgment containing the amount  of
 the  penalty  or penalties remaining due and unpaid, along with proof of

 S. 2009                             7                            A. 3009
 
 mailing of the notice of impending default judgment. The filing of  such
 judgment shall have the full force and effect of a default judgment duly
 docketed  with  such  court pursuant to the civil practice law and rules
 and  shall  in  all  respects  be  governed  by  that chapter and may be
 enforced in the same manner and with the same effect as that provided by
 law in respect to execution issued against property upon judgments of  a
 court  of  record. A judgment entered pursuant to this subdivision shall
 remain in full force and effect  for  eight  years  notwithstanding  any
 other provision of law.
   §  4.  Subdivision 1 of section 56-a of the alcoholic beverage control
 law, as amended by chapter 422 of the laws of 2016, is amended  to  read
 as follows:
   1.  In addition to the annual fees provided for in this chapter, there
 shall be paid to the authority  with  each  initial  application  for  a
 license  filed  pursuant  to  section fifty-one, fifty-one-a, fifty-two,
 fifty-three,  fifty-eight,  fifty-eight-c,   fifty-eight-d,   sixty-one,
 sixty-two,  seventy-six, seventy-seven or seventy-eight of this chapter,
 a filing fee of four hundred dollars; with each initial application  for
 a  license  filed pursuant to section sixty-three, SIXTY-THREE-B, sixty-
 four, sixty-four-a or sixty-four-b of this chapter, a filing fee of  two
 hundred  dollars;  with  each  initial  application  for a license filed
 pursuant to section fifty-three-a, fifty-four, fifty-five, fifty-five-a,
 seventy-nine, eighty-one or eighty-one-a of this chapter, a  filing  fee
 of one hundred dollars; with each initial application for a permit filed
 pursuant  to section ninety-one, ninety-one-a, ninety-two, ninety-two-a,
 ninety-three, ninety-three-a, if such permit is to be issued on a calen-
 dar year basis, ninety-four, ninety-five, ninety-six or ninety-six-a, or
 pursuant to paragraph b, c, e or j of subdivision one of  section  nine-
 ty-nine-b  of  this chapter if such permit is to be issued on a calendar
 year basis, or for an additional bar pursuant  to  subdivision  four  of
 section one hundred of this chapter, a filing fee of twenty dollars; and
 with  each application for a permit under section ninety-three-a of this
 chapter, other than a permit to be issued  on  a  calendar  year  basis,
 section  ninety-seven,  ninety-eight,  ninety-nine,  or ninety-nine-b of
 this chapter, other than a permit to be issued pursuant to paragraph  b,
 c, e or j of subdivision one of section ninety-nine-b of this chapter on
 a calendar year basis, a filing fee of ten dollars.
   §  5.  Subdivision 2 of section 56-a of the alcoholic beverage control
 law, as amended by chapter 422 of the laws of 2016, is amended  to  read
 as follows:
   2.  In addition to the annual fees provided for in this chapter, there
 shall be paid to the authority  with  each  renewal  application  for  a
 license  filed  pursuant  to  section fifty-one, fifty-one-a, fifty-two,
 fifty-three,  fifty-eight,  fifty-eight-c,   fifty-eight-d,   sixty-one,
 sixty-two,  seventy-six, seventy-seven or seventy-eight of this chapter,
 a filing fee of one hundred dollars; with each renewal application for a
 license filed pursuant to  section  sixty-three,  SIXTY-THREE-B,  sixty-
 four,  sixty-four-a  or  sixty-four-b  of  this chapter, a filing fee of
 ninety dollars; with each renewal application for a license filed pursu-
 ant to section seventy-nine, eighty-one or eighty-one-a of this chapter,
 a filing fee of twenty-five dollars; and with each  renewal  application
 for  a license or permit filed pursuant to section fifty-three-a, fifty-
 four, fifty-five, fifty-five-a,  ninety-one,  ninety-one-a,  ninety-two,
 ninety-two-a,  ninety-three, ninety-three-a, if such permit is issued on
 a calendar year basis, ninety-four, ninety-five, ninety-six  or  ninety-
 six-a  of this chapter or pursuant to paragraph b, c, e or j of subdivi-

 S. 2009                             8                            A. 3009
 
 sion one of section ninety-nine-b, if such permit is issued on a  calen-
 dar  year  basis, or with each renewal application for an additional bar
 pursuant to subdivision four of section one hundred of this  chapter,  a
 filing fee of thirty dollars.
   §  6.  Section  66 of the alcoholic beverage control law is amended by
 adding a new subdivision 11 to read as follows:
   11. THE ANNUAL FEE FOR A SPECIAL LICENSE TO SELL  ALCOHOLIC  BEVERAGES
 AT  RETAIL  FOR  CONSUMPTION  OFF  THE  LICENSED  PREMISES SHALL BE FIVE
 HUNDRED DOLLARS.
   §  7. Section 67 of the alcoholic beverage control law, as amended  by
 section  4  of  part  Z of chapter 85 of the laws of 2002, is amended to
 read as follows:
   § 67. License fees, duration  of  licenses;  fee  for  part  of  year.
 Effective  April  first,  nineteen hundred eighty-three, licenses issued
 pursuant to sections sixty-one, sixty-two,  sixty-three,  SIXTY-THREE-B,
 sixty-four,  sixty-four-a  and  sixty-four-b  of  this  article shall be
 effective for three years at three times that annual fee[, except  that,
 in implementing the purposes of this section, the liquor authority shall
 schedule  the  commencement dates, duration and expiration dates thereof
 to provide for an equal cycle of license renewals issued under each such
 section through the course of the fiscal year. Effective December first,
 nineteen hundred ninety-eight,  licenses  issued  pursuant  to  sections
 sixty-four,  sixty-four-a  and  sixty-four-b  of  this  article shall be
 effective for two years at two times that annual fee,  except  that,  in
 implementing  the  purposes  of this section, the liquor authority shall
 schedule the commencement dates, duration and expiration  dates  thereof
 to provide for an equal cycle of license renewals issued under each such
 section through the course of the fiscal year. Notwithstanding the fore-
 going,  commencing  on December first, nineteen hundred ninety-eight and
 concluding on July thirty-first, two thousand two, a licensee  issued  a
 license  pursuant to section sixty-four, sixty-four-a or sixty-four-b of
 this article may elect to remit the fee for such license in equal annual
 installments. Such installments shall be due on dates established by the
 liquor authority and the failure of a licensee  to  have  remitted  such
 annual  installments after a due date shall be a violation of this chap-
 ter. For licenses issued for less than the three-year licensing  period,
 the  license  fee  shall  be  levied on a pro-rated basis].   The entire
 license fee shall be due and payable at the  time  of  application.  The
 liquor  authority  may  make such rules as shall be appropriate to carry
 out the purpose of this section.
   § 8. Subdivision 8 of section 100 of the  alcoholic  beverage  control
 law,  as  added  by chapter 256 of the laws of 1978 and as renumbered by
 chapter 466 of the laws of 2015, is amended to read as follows:
   8. Within ten days after filing a new application to  sell  liquor  at
 retail    under    section   sixty-three,   SIXTY-THREE-B,   sixty-four,
 sixty-four-a or sixty-four-b of this chapter, a notice thereof,  in  the
 form  prescribed by the authority, shall be posted by the applicant in a
 conspicuous place at the entrance to the proposed premises.  The  appli-
 cant  shall  make  reasonable efforts to insure such notice shall remain
 posted throughout the pendency of the application. The provisions hereof
 shall apply only where no retail  liquor  license  has  previously  been
 granted  for the proposed premise and shall, specifically, not be appli-
 cable to a proposed sale of an existing business engaged in  the  retail
 sale of liquor. The authority may adopt such rules it may deem necessary
 to carry out the purpose of this subdivision.

 S. 2009                             9                            A. 3009

   §  9.  This  act shall take effect on the thirtieth day after it shall
 have become a law; provided, however, that:
   (a)  the  amendments  to  subdivision 3 of section 17 of the alcoholic
 beverage control law made by section two of this act shall be subject to
 the expiration and reversion of such section pursuant to  section  4  of
 chapter  118  of  the  laws of 2012, as amended, when upon such date the
 provisions of section three of this act shall take effect; and
   (b) if chapter 422 of the laws of 2016 shall not have taken effect  on
 or  before  such date then sections four and five of this act shall take
 effect on the same date and in the same manner as such  chapter  of  the
 laws of 2016, takes effect.
 
                                  PART B
 
   Section  1.  Section  106  of  the  alcoholic  beverage control law is
 amended by adding a new subdivision 16 to read as follows:
   16. A PERSON HOLDING A RETAIL ON-PREMISES LICENSE FOR A MOVIE THEATRE,
 OTHER THAN A LICENSE FOR A MOVIE THEATRE THAT MEETS THE  DEFINITIONS  OF
 RESTAURANT AND MEALS, AND WHERE ALL SEATING IS AT TABLES WHERE MEALS ARE
 SERVED, SHALL:
   (A) FOR EVERY PURCHASE OF AN ALCOHOLIC BEVERAGE, REQUIRE THE PURCHASER
 TO  PROVIDE  WRITTEN  EVIDENCE  OF  AGE AS SET FORTH IN PARAGRAPH (B) OF
 SUBDIVISION TWO OF SECTION SIXTY-FIVE-B OF THIS CHAPTER; AND
   (B) ALLOW THE PURCHASE OF ONLY ONE ALCOHOLIC BEVERAGE PER TRANSACTION;
 AND
   (C) ONLY PERMIT THE SALE OR DELIVERY OF ALCOHOLIC  BEVERAGES  DIRECTLY
 TO  AN  INDIVIDUAL  HOLDING  A TICKET FOR A MOTION PICTURE WITH A MOTION
 PICTURE ASSOCIATION OF AMERICA RATING OF "PG-13," "R," OR "NC-17"; AND
   (D) NOT COMMENCE THE SALE OF ALCOHOLIC BEVERAGES UNTIL ONE HOUR  PRIOR
 TO  THE  START OF THE FIRST MOTION PICTURE, AND CEASE ALL SALES OF ALCO-
 HOLIC BEVERAGES AFTER THE CONCLUSION OF THE FINAL MOTION PICTURE.
   § 2. Subdivision 6 of section 64-a of the alcoholic  beverage  control
 law,  as  amended by chapter 475 of the laws of 2011, is amended to read
 as follows:
   6. No special on-premises license shall be granted except for premises
 in which the principal business shall be (a) the sale of food or  bever-
 ages at retail for consumption on the premises or (b) the operation of a
 legitimate  theatre, INCLUDING A MOTION PICTURE THEATRE THAT IS A BUILD-
 ING OR FACILITY WHICH IS REGULARLY USED AND KEPT OPEN PRIMARILY FOR  THE
 EXHIBITION  OF  MOTION  PICTURES  FOR  AT LEAST FIVE OUT OF SEVEN DAYS A
 WEEK, OR ON A REGULAR SEASONAL BASIS OF  NO  LESS  THAN  SIX  CONTIGUOUS
 WEEKS, TO THE GENERAL PUBLIC WHERE ALL AUDITORIUM SEATING IS PERMANENTLY
 AFFIXED  TO  THE  FLOOR  AND  AT  LEAST SIXTY-FIVE PERCENT OF THE MOTION
 PICTURE THEATRE'S ANNUAL GROSS REVENUES IS THE COMBINED RESULT OF ADMIS-
 SION REVENUE FOR THE SHOWING OF MOTION PICTURES AND THE SALE OF FOOD AND
 NON-ALCOHOLIC BEVERAGES, or such other  lawful  adult  entertainment  or
 recreational  facility as the liquor authority, giving due regard to the
 convenience of the public and the strict avoidance of  sales  prohibited
 by  this chapter, shall by regulation classify for eligibility. [Nothing
 contained in this subdivision shall be deemed to authorize the  issuance
 of a license to a motion picture theatre, except those meeting the defi-
 nition of restaurant and meals, and where all seating is at tables where
 meals are served.]
   §  3.  Subdivision 8 of section 64-a of the alcoholic beverage control
 law, as added by chapter 531 of the laws of 1964, is amended to read  as
 follows:

 S. 2009                            10                            A. 3009
 
   8. Every special on-premises licensee shall regularly keep food avail-
 able  for  sale  to  its  customers for consumption on the premises. The
 availability of sandwiches, soups or other foods, whether  fresh,  proc-
 essed,  pre-cooked  or  frozen,  shall  be  deemed  compliance with this
 requirement.    FOR MOTION PICTURE THEATRES LICENSED UNDER PARAGRAPH (B)
 OF SUBDIVISION SIX OF THIS SECTION, FOOD THAT IS TYPICALLY  FOUND  IN  A
 MOTION  PICTURE  THEATRE,  INCLUDING BUT NOT LIMITED TO: POPCORN, CANDY,
 AND LIGHT SNACKS, SHALL BE DEEMED TO BE IN COMPLIANCE WITH THIS REQUIRE-
 MENT. The licensed premises shall comply at all times with all the regu-
 lations of the local department of health.  Nothing  contained  in  this
 subdivision,  however,  shall  be  construed to require that any food be
 sold or purchased with any liquor, nor shall  any  rule,  regulation  or
 standard  be  promulgated or enforced requiring that the sale of food be
 substantial or that the receipts of the business  other  than  from  the
 sale  of  liquor  equal  any set percentage of total receipts from sales
 made therein.
   § 4. Subdivision 9 of section 64-a of the alcoholic  beverage  control
 law,  as added by chapter 531 of the laws of 1964, is amended to read as
 follows:
   9.  IN THE CASE OF A MOTION PICTURE THEATRE  APPLYING  FOR  A  LICENSE
 UNDER  THIS  SECTION,  ANY  MUNICIPALITY  REQUIRED  TO BE NOTIFIED UNDER
 SECTION ONE HUNDRED TEN-B OF THIS CHAPTER MAY EXPRESS  AN  OPINION  WITH
 RESPECT  TO WHETHER THE APPLICATION SHOULD BE APPROVED, AND SUCH OPINION
 MAY BE CONSIDERED IN DETERMINING WHETHER GOOD CAUSE EXISTS TO  DENY  ANY
 SUCH APPLICATION.
   10.  The liquor authority may make such rules as it deems necessary to
 carry out the provisions of this section.
   § 5. This act shall take effect immediately and shall  expire  and  be
 deemed repealed 3 years after such date.

                                  PART C
 
   Section 1. Section 54-f of the state finance law is REPEALED.
   §  2.  Subsection  (ggg)  of  section  606 of the tax law, as added by
 section 1 of part E of chapter 60 of the laws of 2016, and as relettered
 by section 1 of part A of chapter 73 of the laws of 2016, is amended  to
 read as follows:
   (ggg) School tax reduction credit for residents of a city with a popu-
 lation over one million. (1) For taxable years beginning after two thou-
 sand  fifteen, a school tax reduction credit shall be allowed to a resi-
 dent individual of the state  who  is  a  resident  of  a  city  with  a
 population  over  one  million,  as  provided below. The credit shall be
 allowed against the taxes authorized by  this  article  reduced  by  the
 credits  permitted  by this article. If the credit exceeds the tax as so
 reduced, 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
 will  be  paid thereon. For purposes of this subsection, no credit shall
 be granted to an individual with  respect  to  whom  a  deduction  under
 subsection  (c) of section one hundred fifty-one of the internal revenue
 code is allowable to another taxpayer for the taxable year.
   (2) The amount of the credit under this [paragraph]  SUBSECTION  shall
 be  determined  based  upon the taxpayer's income as defined in subpara-
 graph (ii) of paragraph (b) of subdivision four of section four  hundred
 twenty-five of the real property tax law.

 S. 2009                            11                            A. 3009

   (3)  For  TAXABLE  YEARS BEGINNING IN TWO THOUSAND SIXTEEN, THE CREDIT
 SHALL BE DETERMINED AS PROVIDED IN THIS PARAGRAPH, PROVIDED THAT FOR the
 purposes of this paragraph, any taxpayer under subparagraphs (A) and (B)
 of this paragraph with income of more than two  hundred  fifty  thousand
 dollars shall not receive a credit.
   (A) Married individuals filing joint returns and surviving spouses. In
 the  case of married individuals who make a single return jointly and of
 a surviving spouse, the credit shall be one hundred twenty-five dollars.
   (B) All others. In the case of an unmarried individual, a  head  of  a
 household  or  a married individual filing a separate return, the credit
 shall be sixty-two dollars and fifty cents.
   (4) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SIXTEEN, THE CREDIT
 SHALL EQUAL THE "FIXED" AMOUNT  PROVIDED  BY  PARAGRAPH  (4-A)  OF  THIS
 SUBSECTION  PLUS THE "RATE REDUCTION" AMOUNT PROVIDED BY PARAGRAPH (4-B)
 OF THIS SUBSECTION.
   (4-A) THE "FIXED" AMOUNT OF THE CREDIT SHALL BE DETERMINED AS PROVIDED
 IN THIS PARAGRAPH, PROVIDED THAT ANY TAXPAYER WITH INCOME OF  MORE  THAN
 TWO HUNDRED FIFTY THOUSAND DOLLARS SHALL NOT RECEIVE SUCH AMOUNT.
   (A) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES. IN
 THE  CASE OF MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND OF
 A SURVIVING SPOUSE, THE "FIXED"  AMOUNT  OF  THE  CREDIT  SHALL  BE  ONE
 HUNDRED TWENTY-FIVE DOLLARS.
   (B)  ALL  OTHERS.  IN THE CASE OF AN UNMARRIED INDIVIDUAL, A HEAD OF A
 HOUSEHOLD OR A MARRIED INDIVIDUAL FILING A SEPARATE RETURN, THE  "FIXED"
 AMOUNT OF THE CREDIT SHALL BE SIXTY-TWO DOLLARS AND FIFTY CENTS.
   (4-B) THE "RATE REDUCTION" AMOUNT OF THE CREDIT SHALL BE DETERMINED AS
 PROVIDED  IN  THIS  PARAGRAPH, PROVIDED THAT ANY TAXPAYER WITH INCOME OF
 MORE THAN FIVE HUNDRED THOUSAND DOLLARS SHALL NOT RECEIVE SUCH AMOUNT.
   (A) FOR MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND FOR A
 SURVIVING SPOUSE:
 IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
 NOT OVER $21,600                       0.171% OF THE CITY TAXABLE INCOME
 OVER $21,600 BUT NOT OVER $500,000     $37 PLUS 0.228% OF EXCESS OVER
                                          $21,600
 OVER $500,000                              NOT APPLICABLE
   (B) FOR A HEAD OF HOUSEHOLD:
 IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
 NOT OVER $14,400                       0.171% OF THE CITY TAXABLE INCOME
 OVER $14,400 BUT NOT OVER $500,000     $25 PLUS 0.228% OF EXCESS OVER
                                          $14,400
 OVER $500,000                              NOT APPLICABLE
   (C) FOR AN UNMARRIED INDIVIDUAL OR A MARRIED INDIVIDUAL FILING
 A SEPARATE RETURN:
 IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
 NOT OVER $12,000                       0.171% OF THE CITY TAXABLE INCOME
 OVER $12,000 BUT NOT OVER $500,000     $21 PLUS 0.228% OF EXCESS OVER
                                          $12,000
 OVER $500,000                              NOT APPLICABLE
   [(3)] (5) Part-year residents. If a taxpayer changes status during the
 taxable year from resident to nonresident, or from nonresident to  resi-
 dent,  the  school  tax  reduction  credit authorized by this subsection
 shall be prorated according to the number of months  in  the  period  of
 residence.
   §  3.  Paragraphs  1, 2 and 3 of subsection (a) of section 1304 of the
 tax law, as amended by section 2 of part B of chapter 59 of the laws  of
 2015, are amended to read as follows:

 S. 2009                            12                            A. 3009

   (1)  Resident  married  individuals  filing joint returns and resident
 surviving spouses. The tax under this section for each taxable  year  on
 the  city  taxable  income of every city resident married individual who
 makes a single return jointly with his or her  spouse  under  subsection
 (b)  of  section  thirteen  hundred  six of this article and on the city
 taxable income of every city resident surviving spouse shall  be  deter-
 mined in accordance with the following tables:
 
   (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $21,600                       2.7% OF THE CITY TAXABLE INCOME
 OVER $21,600 BUT NOT                   $583 PLUS 3.3% OF EXCESS
 OVER $45,000                             OVER $21,600
 OVER $45,000 BUT NOT                   $1,355 PLUS 3.35% OF EXCESS
 OVER $90,000                             OVER $45,000
 OVER $90,000                           $2,863 PLUS 3.4% OF EXCESS
                                           OVER $90,000
 
 (B) FOR TAXABLE YEAR BEGINNING AFTER TWO THOUSAND FOURTEEN
 AND BEFORE TWO THOUSAND SEVENTEEN:
 If the city taxable income is:         The tax is:
 Not over $21,600                       2.55% of the city taxable income
 Over $21,600 but not                   $551 plus 3.1% of excess
 over $45,000                             over $21,600
 Over $45,000 but not                   $1,276 plus 3.15% of excess
 over $90,000                             over $45,000
 Over $90,000 but not                   $2,694 plus 3.2% of excess
 over $500,000                            over $90,000
 Over $500,000                          $16,803 plus 3.4% of excess
                                          over $500,000
 
   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:
 If the city taxable income is:         The tax is:
 Not over $21,600                       2.55% of the city taxable income
 Over $21,600 but not                   $551 plus 3.1% of excess
 over $45,000                             over $21,600
 Over $45,000 but not                   $1,276 plus 3.15% of excess
 over $90,000                             over $45,000
 Over $90,000 but not                   $2,694 plus 3.2% of excess
 over $500,000                            over $90,000
 Over $500,000                          $15,814 plus 3.4% of excess
                                          over $500,000
 
   (2) Resident heads of households. The tax under this section for  each
 taxable year on the city taxable income of every city resident head of a
 household shall be determined in accordance with the following tables:
   (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $14,400                       2.7% OF THE CITY TAXABLE INCOME
 OVER $14,400 BUT NOT                   $389 PLUS 3.3% OF EXCESS
 OVER $30,000                             OVER $14,400
 OVER $30,000 BUT NOT                   $904 PLUS 3.35% OF EXCESS

 S. 2009                            13                            A. 3009
 
 OVER $60,000                             OVER $30,000
 OVER $60,000                           $1,909 PLUS 3.4% OF EXCESS
                                          OVER $60,000
 
   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SIXTEEN:
 
 If the city taxable income is:         The tax is:
 Not over $14,400                       2.55% of the city taxable income
 Over $14,400 but not                   $367 plus 3.1% of excess
 over $30,000                             over $14,400
 Over $30,000 but not                   $851 plus 3.15% of excess
 over $60,000                             over $30,000
 Over $60,000 but not                   $1,796 plus 3.2% of excess
 over $500,000                            over $60,000
 Over $500,000                          $16,869 plus 3.4% of excess
                                          over $500,000
 
 [(B)] (C) For taxable years beginning after two thousand nine and before
 two thousand fifteen:
 
 If the city taxable income is:         The tax is:
 Not over $14,400                       2.55% of the city taxable income
 Over $14,400 but not                   $367 plus 3.1% of excess
 over $30,000                             over $14,400
 Over $30,000 but not                   $851 plus 3.15% of excess
 over $60,000                             over $30,000
 Over $60,000 but not                   $1,796 plus 3.2% of excess
 over $500,000                            over $60,000
 Over $500,000                          $15,876 plus 3.4% of excess
                                          Over $500,000
 
   (3)  Resident  unmarried  individuals,  resident  married  individuals
 filing separate returns and resident estates and trusts. The  tax  under
 this  section  for each taxable year on the city taxable income of every
 city resident individual who is not a city resident  married  individual
 who  makes  a  single  return  jointly  with  his  or  her  spouse under
 subsection (b) of section thirteen hundred six of this article or a city
 resident head of household or a city resident surviving spouse,  and  on
 the city taxable income of every city resident estate and trust shall be
 determined in accordance with the following tables:

   (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $12,000                       2.7% OF THE CITY TAXABLE INCOME
 OVER $12,000 BUT NOT                   $324 PLUS 3.3% OF EXCESS
 OVER $25,000                             OVER $12,000
 OVER $25,000 BUT NOT                   $753 PLUS 3.35% OF EXCESS
 OVER $50,000                             OVER $25,000
 OVER $50,000                           $1,591 PLUS 3.4% OF EXCESS
                                        OVER $50,000
 
   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SEVENTEEN:

 S. 2009                            14                            A. 3009
 
 If the city taxable income is:         The tax is:
 Not over $12,000                       2.55% of the city taxable income
 Over $12,000 but not                   $306 plus 3.1% of excess
 over $25,000                             over $12,000
 Over $25,000 but not                   $709 plus 3.15% of excess
 over $50,000                             over $25,000
 Over $50,000 but not                   $1,497 plus 3.2% of excess
 over $500,000                          over $50,000
 Over $500,000                          $16,891 plus 3.4%
                                        of excess over $500,000
   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:

 If the city taxable income is:         The tax is:
 Not over $12,000                       2.55% of the city taxable income
 Over $12,000 but not                   $306 plus 3.1% of excess
 over $25,000                             over $12,000
 Over $25,000 but not                   $709 plus 3.15% of excess
 over $50,000                             over $25,000
 Over $50,000 but not                   $1,497 plus 3.2% of excess
 over $500,000                          over $50,000
 Over $500,000                          $15,897 plus 3.4%
                                        of excess over $500,000
   § 4. Paragraphs 1, 2 and 3 of subsection (a) of section 11-1701 of the
 administrative code of the city of New York, as amended by section 3  of
 part  B  of  chapter  59  of  the  laws  of 2015, are amended to read as
 follows:
   (1) Resident married individuals filing  joint  returns  and  resident
 surviving  spouses.  The tax under this section for each taxable year on
 the city taxable income of every city resident  married  individual  who
 makes  a  single return jointly with his or her spouse under subdivision
 (b) of section 11-1751 of this chapter and on the city taxable income of
 every city resident surviving spouse shall be determined  in  accordance
 with the following tables:
 
 (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $21,600                       2.7% OF THE CITY TAXABLE INCOME
 OVER $21,600 BUT NOT                   $583 PLUS 3.3% OF EXCESS
 OVER $45,000                           OVER $21,600
 OVER $45,000 BUT NOT                   $1,355 PLUS 3.35% OF EXCESS
 OVER $90,000                           OVER $45,000
 OVER $90,000                           $2,863 PLUS 3.4% OF EXCESS
                                        OVER $90,000
   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SEVENTEEN:
 
 If the city taxable income is:         The tax is:
 Not over $21,600                       2.55% of the city taxable income
 Over $21,600 but not                   $551 plus 3.1% of excess
 over $45,000                            over $21,600
 Over $45,000 but not                   $1,276 plus 3.15% of excess
 over $90,000                            over $45,000
 Over $90,000 but not                   $2,694 plus 3.2% of excess

 S. 2009                            15                            A. 3009
 
 over $500,000                           over $90,000
 Over $500,000                          $16,803 plus 3.4% of excess
                                         over $500,000
   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:
 
 If the city taxable income is:         The tax is:
 Not over $21,600                       2.55% of the city taxable income
 Over $21,600 but not                   $551 plus 3.1% of excess
 over $45,000                            over $21,600
 Over $45,000 but not                   $1,276 plus 3.15% of excess
 over $90,000                            over $45,000
 Over $90,000 but not                   $2,694 plus 3.2% of excess
 over $500,000                           over $90,000
 Over $500,000                          $15,814 plus 3.4% of excess
                                         over $500,000
 
   (2) Resident heads of households. The tax under this section for  each
 taxable year on the city taxable income of every city resident head of a
 household shall be determined in accordance with the following tables:
   (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $14,400                       2.7% OF THE CITY TAXABLE INCOME
 OVER $14,400 BUT NOT                   $389 PLUS 3.3% OF EXCESS
 OVER $30,000                           OVER $14,400
 OVER $30,000 BUT NOT                   $904 PLUS 3.35% OF EXCESS
 OVER $60,000                           OVER $30,000
 OVER $60,000                           $1,909 PLUS 3.4% OF EXCESS
                                        OVER $60,000
   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SIXTEEN:
 
 If the city taxable income is:         The tax is:
 Not over $14,400                       2.55% of the city taxable income
 Over $14,400 but not                   $367 plus 3.1% of excess
 over $30,000                            over $14,400
 Over $30,000 but not                   $851 plus 3.15% of excess
 over $60,000                            over $30,000
 Over $60,000 but not                   $1,796 plus 3.2% of excess
 over $500,000                           over $60,000
 Over $500,000                          $16,869 plus 3.4% of excess
                                         over $500,000
 
   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:
 
 If the city taxable income is:         The tax is:
 Not over $14,400                       2.55% of the city taxable income
 Over $14,400 but not                   $367 plus 3.1% of excess
 over $30,000                            over $14,400
 Over $30,000 but not                   $851 plus 3.15% of excess
 over $60,000                            over $30,000
 Over $60,000 but not                   $1,796 plus 3.2% of excess
 over $500,000                           over $60,000
 Over $500,000                          $15,876 plus 3.4% of excess

 S. 2009                            16                            A. 3009
 
                                         over $500,000
 
   (3)  Resident  unmarried  individuals,  resident  married  individuals
 filing separate returns and resident estates and trusts. The  tax  under
 this  section  for each taxable year on the city taxable income of every
 city resident individual who is not a married  individual  who  makes  a
 single  return  jointly  with his or her spouse under subdivision (b) of
 section 11-1751 of this chapter or a city resident head of  a  household
 or  a  city resident surviving spouse, and on the city taxable income of
 every city resident estate and trust shall be determined  in  accordance
 with the following tables:

 (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $12,000                       2.7% OF THE CITY TAXABLE INCOME
 OVER $12,000 BUT NOT                   $324 PLUS 3.3% OF EXCESS
 OVER $25,000                            OVER $12,000
 OVER $25,000 BUT NOT                   $753 PLUS 3.35% OF EXCESS
 OVER $50,000                            OVER $25,000
 OVER $50,000                           $1,591 PLUS 3.4% OF EXCESS
                                         OVER $50,000
   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SIXTEEN:
 If the city taxable income is:         The tax is:
 Not over $12,000                       2.55% of the city taxable income
 Over $12,000 but not                   $306 plus 3.1% of excess
 over $25,000                            over $12,000
 Over $25,000 but not                   $709 plus 3.15% of excess
 over $50,000                            over $25,000
 Over $50,000 but not                   $1,497 plus 3.2% of excess
 over $500,000                           over $50,000
 Over $500,000                          $16,891 plus 3.4% of excess
                                         over $500,000
 
   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:
 
 If the city taxable income is:         The tax is:
 Not over $12,000                       2.55% of the city taxable income
 Over $12,000 but not                   $306 plus 3.1% of excess
 over $25,000                            over $12,000
 Over $25,000 but not                   $709 plus 3.15% of excess
 over $50,000                            over $25,000
 Over $50,000 but not                   $1,497 plus 3.2% of excess
 over $500,000                           over $50,000
 Over $500,000                          $15,897 plus 3.4% of excess
                                         over $500,000
 
   § 5. Notwithstanding any provision of law to the contrary, the  method
 of  determining  the  amount  to  be deducted and withheld from wages on
 account of taxes imposed by or pursuant to the authority of  article  30
 of  the  tax law in connection with the implementation of the provisions
 of this act shall be prescribed by  the  commissioner  of  taxation  and
 finance with due consideration to the effect such withholding tables and
 methods would have on the receipt and amount of revenue. The commission-

 S. 2009                            17                            A. 3009
 
 er  of  taxation  and  finance  shall adjust such withholding tables and
 methods in regard to taxable years beginning in 2017 and after  in  such
 manner  as  to  result,  so  far  as practicable, in withholding from an
 employee's  wages  an amount substantially equivalent to the tax reason-
 ably estimated to be due for such taxable  years  as  a  result  of  the
 provisions  of  this act. Provided, however, for tax year 2017 the with-
 holding tables shall reflect  as  accurately  as  practicable  the  full
 amount  of  tax  year  2017 liability so that such amount is withheld by
 December 31, 2017. In carrying out his or her  duties  and  responsibil-
 ities  under  this section, the commissioner of taxation and finance may
 prescribe a similar procedure with respect to the taxes required  to  be
 deducted  and  withheld  by  local  laws  imposing taxes pursuant to the
 authority of articles 30, 30-A and 30-B of the tax law,  the  provisions
 of  any  other  law  in  relation  to  such  a procedure to the contrary
 notwithstanding.
   § 6. 1. Notwithstanding any provision of law to the contrary, no addi-
 tion to tax shall be imposed for failure to pay  the  estimated  tax  in
 subsection  (c)  of  section  685  of the tax law and subdivision (c) of
 section 11-1785 of the administrative code of the city of New York  with
 respect  to  any underpayment of a required installment due prior to, or
 within thirty days of, the effective date of this act to the extent that
 such underpayment was created or increased by  the  amendments  made  by
 this  act, provided, however, that the taxpayer remits the amount of any
 underpayment prior to or with his or her next  quarterly  estimated  tax
 payment.
   2. The commissioner of taxation and finance shall take steps to publi-
 cize  the  necessary  adjustments  to  estimated  tax and, to the extent
 reasonably possible, to inform the taxpayer of the tax liability changes
 made by this act.
   § 7. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2017.
 
                                  PART D
 
   Section 1. Subparagraph (i) of  paragraph  (a)  of  subdivision  2  of
 section  1306-a of the real property tax law, as amended by section 6 of
 part N of chapter 58 of the laws of 2011, is amended to read as follows:
   (i) The tax savings for each parcel receiving the exemption authorized
 by section four hundred twenty-five of this chapter shall be computed by
 subtracting the amount actually  levied  against  the  parcel  from  the
 amount  that  would  have been levied if not for the exemption, provided
 however, that [beginning with] FOR the two thousand eleven-two  thousand
 twelve THROUGH TWO THOUSAND SIXTEEN-TWO THOUSAND SEVENTEEN 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 SEVENTEEN-TWO THOUSAND EIGHTEEN SCHOOL  YEAR,
 THE  TAX  SAVINGS  APPLICABLE  TO  ANY  PORTION SHALL NOT EXCEED THE TAX
 SAVINGS FOR THE PRIOR YEAR. The tax savings attributable  to  the  basic
 and  enhanced exemptions shall be calculated separately. It shall be the
 responsibility of the commissioner to calculate tax savings  limitations
 for purposes of this subdivision.
   § 2. This act shall take effect immediately.

 S. 2009                            18                            A. 3009
 
                                  PART E
 
   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 EIGHTEEN, 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] EIGHTEEN,
 the application form shall indicate that [the] ALL owners of the proper-
 ty and any owners' spouses residing on the premises [may  authorize  the
 assessor to] MUST have their income eligibility verified annually [ther-
 eafter]  by  the [state] department [of taxation and finance, in lieu of
 furnishing copies of the applicable income tax return  or  returns  with
 the  application.  If the owners of the property and any owners' spouses
 residing on the premises elect to participate  in  this  program,  which
 shall  be  known as the STAR income verification program, they] AND must
 furnish their taxpayer identification numbers  in  order  to  facilitate
 matching  with records of the department. [Thereafter, their] THE income
 eligibility  OF  SUCH  PERSONS  shall  be  verified  annually   by   the
 department, and the assessor shall not request income documentation from
 them[,  unless  such  department  advises  the assessor that they do not
 satisfy the applicable income eligibility requirements, or  that  it  is
 unable to determine whether they satisfy those requirements]. All APPLI-
 CANTS  FOR  THE  ENHANCED  EXEMPTION  AND  ALL  assessing units shall be
 required to participate in this program, WHICH SHALL  BE  KNOWN  AS  THE
 STAR INCOME VERIFICATION PROGRAM.
   (B) WHERE THE COMMISSIONER FINDS THAT THE ENHANCED EXEMPTION SHOULD BE
 REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE
 TO THE ENHANCED EXEMPTION HAS BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE
 PROPERTY  OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS-
 SIONER EVIDENCE TO THE CONTRARY. WHERE THE COMMISSIONER FINDS  THAT  THE

 S. 2009                            19                            A. 3009
 
 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 OF TAXATION AND FINANCE. IF A TAXPAYER IS DISSAT-
 ISFIED WITH THE  DEPARTMENT'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 DETERMINATION. 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  OF  TAXATION AND
 FINANCE, 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

 S. 2009                            20                            A. 3009
 
 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.
   §  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.

 S. 2009                            21                            A. 3009

   (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
 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

 S. 2009                            22                            A. 3009
 
 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 EIGHTEEN, 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 2018 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 F
 
   Section  1.  Section  928-a  of the real property tax law, as added by
 chapter 680 of the laws of 1994, subdivision 1  as  further  amended  by
 subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010
 and  subdivision  2  as  amended  by chapter 199 of the laws of 1997, is
 amended to read as follows:
   §  928-a.  Partial  payment  of  taxes.  1.  (A)  Notwithstanding  the
 provisions  of any general or special law to the contrary, [the board of
 supervisors or the county legislature of any county  may  by  resolution
 authorize  the  collecting  officers  in  one  or more of the classes of
 municipal corporations described  herein]  EACH  COLLECTING  OFFICER  IS
 HEREBY  AUTHORIZED  to  accept  from  any  taxpayer  at any time partial
 payments for or on account  of  taxes,  special  ad  valorem  levies  or
 special assessments [in such amount or manner and apply such payments on

 S. 2009                            23                            A. 3009

 account  thereof in such manner as may be prescribed by such resolution;
 provided, however, that such resolution], UNLESS THE GOVERNING  BODY  OF
 THE  MUNICIPAL  CORPORATION THAT EMPLOYS THE COLLECTING OFFICER HAS: (I)
 PASSED A RESOLUTION DISALLOWING PARTIAL PAYMENTS OR (II) PASSED A RESOL-
 UTION  LIMITING  THE  CONDITIONS  UNDER  WHICH  PARTIAL PAYMENTS WILL BE
 ACCEPTED, IN WHICH CASE PARTIAL PAYMENTS SHALL BE ACCEPTED IN ACCORDANCE
 WITH THE CONDITIONS SET FORTH IN THE RESOLUTION.
   (B) SUCH RESOLUTION MAY REQUIRE A SERVICE CHARGE  NOT  TO  EXCEED  TEN
 DOLLARS  TO BE PAID WITH EACH PARTIAL PAYMENT. SUCH SERVICE CHARGE SHALL
 BELONG TO THE MUNICIPAL CORPORATION THAT EMPLOYS THE COLLECTING OFFICER.
   (C) WHERE A STATEMENT OF TAXES CONTAINS SEPARATE CHARGES FOR  SEPARATE
 PURPOSES, ANY PARTIAL PAYMENTS SHALL BE APPLIED PROPORTIONATELY THERETO.
   (D)  WHERE SCHOOL DISTRICT TAXES ARE PAYABLE TO THE COLLECTING OFFICER
 OF A CITY OR TOWN THAT HAS NOT ACTED TO DISALLOW PARTIAL  PAYMENTS,  THE
 GOVERNING  BODY OF THE SCHOOL DISTRICT MAY PASS A RESOLUTION DISALLOWING
 PARTIAL PAYMENTS FOR SCHOOL DISTRICT PURPOSES. IF IT HAS  NOT  DONE  SO,
 THEN  THE  COLLECTING  OFFICER  SHALL  BE  AUTHORIZED  TO ACCEPT PARTIAL
 PAYMENTS OF SCHOOL DISTRICT TAXES UNDER THE SAME CONDITIONS AS MAY APPLY
 TO CITY OR TOWN TAXES.
   (E) ANY RESOLUTION ADOPTED PURSUANT TO THIS SECTION shall  be  adopted
 AT  LEAST  SIXTY  DAYS  prior to the preparation and delivery of the tax
 rolls to the appropriate collecting officers. A copy of  any  resolution
 [enacting,  amending  or  repealing  any  such  partial payment program]
 ADOPTED PURSUANT TO THIS SECTION, OR AMENDING OR REPEALING A  RESOLUTION
 ADOPTED  PURSUANT  TO THIS SECTION, shall be filed with the commissioner
 AND, IN THE CASE OF A RESOLUTION ADOPTED BY A SCHOOL DISTRICT, WITH  THE
 CITY  OR TOWN CLERK, no later than thirty days after the adoption there-
 of.
   2. [Such resolution shall apply to one or more of the following class-
 es of municipal corporations: (a) all towns within the county;  (b)  all
 cities for which the county enforces the collection of delinquent taxes;
 or  (c)  all  villages  for  which the county enforces the collection of
 delinquent taxes. If the resolution does not specify the class or class-
 es of municipal corporations to which it applies, it shall be deemed  to
 apply only to the towns in the county.
   3.]  After any partial payment authorized pursuant to this section has
 been paid, interest and penalties shall be charged  against  the  unpaid
 balance only. The acceptance of a partial payment by any official pursu-
 ant  to  this section shall not be deemed to affect any liens and powers
 of any [county]  MUNICIPAL  CORPORATION  conferred  in  any  general  or
 special  act,  but such rights and powers shall remain in full force and
 effect to enforce collection of the unpaid balance of such  tax  or  tax
 liens together with interest, penalties and other lawful charges.
   3.  A  COLLECTING OFFICER WHO IS AUTHORIZED TO ACCEPT PARTIAL PAYMENTS
 PURSUANT TO THIS SECTION MAY NOT DECLINE TO DO SO.
   4. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO AUTHORIZE A COLLECT-
 ING OFFICER TO ACCEPT A PARTIAL PAYMENT AFTER THE EXPIRATION OF  HIS  OR
 HER  WARRANT,  OR  AT ANY OTHER TIME THAT SUCH COLLECTING OFFICER IS NOT
 AUTHORIZED TO ACCEPT TAX PAYMENTS.
   § 2. This act shall take effect immediately and  shall  apply  to  the
 collection of real property taxes, special ad valorem levies and special
 assessments for fiscal years beginning on and after January 1, 2019.
 
                                  PART G

 S. 2009                            24                            A. 3009
 
   Section  1.  Paragraph 7 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:
   (7)  Disclosure  of  incomes  AND  OTHER  INFORMATION.   (A) Where the
 commissioner has denied a taxpayer's claim for the credit authorized  by
 this  subsection  in whole or in part on the grounds that the affiliated
 income of the parcel in  question  exceeds  the  applicable  limit,  the
 commissioner  shall  have  the  authority to reveal to that taxpayer the
 names and incomes of the other taxpayers whose incomes were included  in
 the computation of such affiliated income.
   (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 SHALL BE PUBLIC INFORMATION TO THE
 SAME EXTENT AS THE NAMES AND ADDRESSES OF INDIVIDUALS WHO  HAVE  APPLIED
 FOR  OR  ARE  RECEIVING  THE  STAR  EXEMPTION AUTHORIZED BY SECTION FOUR
 HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.
   § 2. This act shall take effect immediately.
 
                                  PART H
 
   Section 1. Subparagraph (ii) of paragraph  (k)  of  subdivision  2  of
 section  425  of  the  real property tax law, as amended by section 2 of
 part A of chapter 405 of the  laws  of  1999,  is  amended  to  read  as
 follows:
   (ii)  That proportion of the assessment of such real property owned by
 a cooperative apartment corporation determined by  the  relationship  of
 such  real  property  vested  in  such tenant-stockholder to such entire
 parcel and the buildings thereon owned  by  such  cooperative  apartment
 corporation in which such tenant-stockholder resides shall be subject to
 exemption  from  taxation  pursuant to this section and any exemption so
 granted shall be credited by the appropriate  taxing  authority  against
 the assessed valuation of such real property. Upon the completion of the
 final  assessment  roll,  or  as  soon thereafter as is practicable, the
 assessor shall forward to the cooperative apartment corporation a state-
 ment setting forth the exemption attributable to each  eligible  tenant-
 stockholder.  The  reduction in real property taxes attributable to each
 eligible tenant-stockholder shall be credited by the cooperative  apart-
 ment  corporation  against the amount of such taxes otherwise payable by
 or chargeable  to  such  tenant-stockholder.  THE  ASSESSOR  SHALL  ALSO
 FORWARD TO THE COMMISSIONER, AT THE TIME AND IN THE MANNER PRESCRIBED BY
 THE  COMMISSIONER,  A STATEMENT SETTING FORTH THE TAXABLE ASSESSED VALUE
 ATTRIBUTABLE  TO  EACH  TENANT-STOCKHOLDER,  WITHOUT   REGARD   TO   THE
 EXEMPTION,  AND  SUCH  OTHER  INFORMATION AS THE COMMISSIONER SHALL DEEM
 NECESSARY TO PROPERLY CALCULATE THE STAR CREDIT AUTHORIZED BY SUBSECTION
 (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW FOR THOSE  TENANT-STOCK-
 HOLDERS WHO QUALIFY FOR IT.
   §  2.  Subparagraph  (E) 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:
   (E)  "Qualifying  taxes"  means  the  school  district taxes that were
 levied upon the taxpayer's primary residence for the  associated  fiscal
 year  that  were  actually paid by the taxpayer during the taxable year;
 or, in the case of a city school district that  is  subject  to  article
 fifty-two  of  the  education law, the combined city and school district
 taxes that were levied upon the taxpayer's  primary  residence  for  the
 associated  fiscal  year  that were actually paid by the taxpayer during

 S. 2009                            25                            A. 3009

 the taxable year. PROVIDED, HOWEVER, THAT IN THE CASE OF  A  COOPERATIVE
 APARTMENT, "QUALIFYING TAXES" MEANS THE SCHOOL DISTRICT TAXES THAT WOULD
 HAVE  BEEN  LEVIED UPON THE TENANT-STOCKHOLDER'S PRIMARY RESIDENCE IF IT
 WERE SEPARATELY ASSESSED, AS DETERMINED BY THE COMMISSIONER BASED ON THE
 STATEMENT  PROVIDED  BY  THE  ASSESSOR  PURSUANT TO SUBPARAGRAPH (II) OF
 PARAGRAPH (K) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE  OF
 THE  REAL  PROPERTY  TAX  LAW, OR IN THE CASE OF A COOPERATIVE APARTMENT
 CORPORATION THAT IS DESCRIBED IN SUBPARAGRAPH (IV) OF PARAGRAPH  (K)  OF
 SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY
 TAX LAW, ONE THIRD OF SUCH AMOUNT. In no case shall the term "qualifying
 taxes" be construed to include penalties or interest.
   §  3.  Subparagraph  (A) of paragraph 6 of subsection (eee) of section
 606 of the tax law is REPEALED.
   § 4. This act shall take effect immediately, provided that section one
 of this act shall apply to final assessment rolls used  to  levy  school
 taxes for school years beginning on and after July 1, 2017, and provided
 further  that  sections two and three of this act shall apply to taxable
 years beginning on and after January 1, 2017.
 
                                  PART I
 
   Section 1. Section 2 of chapter 540 of the laws of 1992, amending  the
 real  property  tax  law  relating to oil and gas charges, as amended by
 section 1 of part C of chapter 59 of the laws of  2014,  is  amended  to
 read as follows:
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 1992; provided,
 however that any charges imposed by section 593 of the real property tax
 law as added by section one of this act shall first be  due  for  values
 for assessment rolls with tentative completion dates after July 1, 1992,
 and  provided  further,  that  this  act  shall remain in full force and
 effect until March 31, [2018] 2021, at which time  section  593  of  the
 real  property  tax  law  as  added  by section one of this act shall be
 repealed.
   § 2. This act shall take effect immediately.
 
                                  PART J
 
   Section 1. Subdivision 5 of section 81 of the state  finance  law,  as
 added by chapter 432 of the laws of 2016, is amended to read as follows:
   5.  Moneys  shall be payable from the fund on the audit and warrant of
 the comptroller on vouchers approved and certified by  the  commissioner
 of health, for veterans' homes operated by the department of health, and
 by the [commissioner of education] CHANCELLOR OF THE STATE UNIVERSITY OF
 NEW YORK, for the veterans' home operated by the state university of New
 York.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after November 14, 2016.
 
                                  PART K
 
   Section 1. Section 352 of the economic development law,  as  added  by
 section  1 of part MM of chapter 59 of the laws of 2010, subdivisions 7,
 8, 9, 10, 12, 13, 14, 15, 16, 17, 18, 19,  20  and  21  as  amended  and
 subdivision 11 as added by section 1 of part K of chapter 59 of the laws
 of 2015, is amended to read as follows:

 S. 2009                            26                            A. 3009
 
   § 352. Definitions. For the purposes of this article:
   1.  "Agriculture"  means  both agricultural production (establishments
 performing the complete farm or ranch operation, such as farm  owner-op-
 erators,  tenant  farm  operators,  and  sharecroppers) and agricultural
 support (establishments that perform one or more  activities  associated
 with farm operation, such as soil preparation, planting, harvesting, and
 management, on a contract or fee basis).
   2. "Back office operations" means a business function that may include
 one  or  more of the following activities: customer service, information
 technology and data processing, human resources, accounting and  related
 administrative functions.
   3. "Benefit-cost ratio" means the following calculation: the numerator
 is the sum of (i) the value of all remuneration projected to be paid for
 all  net new jobs during the period of participation in the program, and
 (ii) the value of capital investments to be made by the business  enter-
 prise during the period of participation in the program, and the denomi-
 nator  is  the amount of total tax benefits under this article that will
 be used and refunded.
   4. "Certificate of eligibility"  means  the  document  issued  by  the
 department  to  an  applicant  that  has  completed an application to be
 admitted into the excelsior jobs program and has been accepted into  the
 program  by  the  department. Possession of a certificate of eligibility
 does not by itself guarantee the eligibility to claim the tax credit.
   5. "Certificate of tax credit" means the document issued to a  partic-
 ipant  by  the  department,  after  the department has verified that the
 participant has met all applicable eligibility criteria in this article.
 The certificate shall be issued annually if such criteria are  satisfied
 and  shall specify the exact amount of each of the tax credit components
 under this article that a participant may  claim,  pursuant  to  section
 three  hundred fifty-five of this article, and shall specify the taxable
 year in which such credit may be claimed.
   6. "Distribution center" means a large scale facility involving  proc-
 essing,  repackaging  and/or movement of finished or semi-finished goods
 to retail locations across a multi-state area.
   7. "Entertainment company" means a corporation,  partnership,  limited
 partnership,  or  other  entity principally engaged in the production or
 post production of (i) motion pictures,  which  shall  include  feature-
 length  films  and  television  films,  (ii) instructional videos, (iii)
 televised commercial advertisements, (iv) animated  films  or  cartoons,
 (v) music videos, (vi) television programs, which shall include, but not
 be  limited  to,  television series, television pilots, and single tele-
 vision episodes, or (vii) programs primarily intended for  radio  broad-
 cast. "Entertainment company" shall not include an entity (i) principal-
 ly engaged in the live performance of events, including, but not limited
 to,  theatrical  productions,  concerts,  circuses, and sporting events,
 (ii) principally engaged in the production of content intended primarily
 for industrial, corporate or institutional end-users, (iii)  principally
 engaged  in  the  production  of  fundraising films or programs, or (iv)
 engaged in the production of content  for  which  records  are  required
 under  section  2257  of  title 18, United States code, to be maintained
 with respect to any performer in such production.
   8. "Financial services data centers  or  financial  services  customer
 back  office  operations"  means  operations  that  manage  the  data or
 accounts of existing customers or provide product or service information
 and support to customers  of  financial  services  companies,  including
 banks,  other  lenders,  securities and commodities brokers and dealers,

 S. 2009                            27                            A. 3009
 
 investment banks,  portfolio  managers,  trust  offices,  and  insurance
 companies.
   9. "Investment zone" shall mean an area within the state that had been
 designated under paragraph (i) of subdivision (a) and subdivision (d) of
 section  nine  hundred fifty-eight of the general municipal law that was
 wholly contained within up to  four  distinct  and  separate  contiguous
 areas  as  of the date immediately preceding the date the designation of
 such area expired pursuant to section nine  hundred  sixty-nine  of  the
 general municipal law.
   10.  "LIFE  SCIENCES"  MEANS  THE  FIELDS OF BIOTECHNOLOGY, PHARMACEU-
 TICALS,  BIOMEDICAL  TECHNOLOGIES,  LIFE  SYSTEMS  TECHNOLOGIES,  HEALTH
 INFORMATICS, HEALTH ROBOTICS AND BIOMEDICAL DEVICES.
   11.  "LIFE SCIENCES COMPANY" MEANS A CORPORATION, PARTNERSHIP, LIMITED
 PARTNERSHIP, OR OTHER ENTITY ENGAGED IN LIFE SCIENCES, AND AN  ORGANIZA-
 TION  OR  INSTITUTION  THAT  DEVOTES  THE MAJORITY OF ITS EFFORTS IN THE
 VARIOUS STAGES OF RESEARCH, DEVELOPMENT, TECHNOLOGY TRANSFER AND COMMER-
 CIALIZATION RELATED TO LIFE SCIENCES.
   12. "Manufacturing" means the process of working  raw  materials  into
 products  suitable for use or which gives new shapes, new quality or new
 combinations to matter which has already gone  through  some  artificial
 process  by  the  use  of machinery, tools, appliances, or other similar
 equipment. "Manufacturing" does not include an operation  that  involves
 only  the  assembly  of  components,  provided, however, the assembly of
 motor vehicles or other high value-added products  shall  be  considered
 manufacturing.
   [11.]  13.  "Music  production"  means  the  process of creating sound
 recordings of at least eight minutes,  recorded  in  professional  sound
 studios,  intended  for  commercial release. "Music production" does not
 include recording of live concerts, or  recordings  that  are  primarily
 spoken  word or wildlife or nature sounds, or produced for instructional
 use or advertising or promotional purposes.
   [12.] 14. "Net new jobs" means:
   (a) jobs created in this state that (i) are new to the state,
   (ii) have not been transferred from employment with  another  business
 located in this state including from a related person in this state,
   (iii)  are  either full-time wage-paying jobs or equivalent to a full-
 time wage-paying job requiring at least thirty-five hours per week, and
   (iv) are filled for more than six months; or
   (b) jobs obtained by an entertainment company in this state (i)  as  a
 result  of  the termination of a licensing agreement with another enter-
 tainment company, (ii) that the commissioner determines to be at risk of
 leaving the state as a direct result of the termination, (iii) that  are
 either full-time wage-paying jobs or equivalent to a full-time wage-pay-
 ing job requiring at least thirty-five hours per week, and (iv) that are
 filled for more than six months.
   [13.] 15. "Participant" means a business entity that:
   (a)  has  completed  an application prescribed by the department to be
 admitted into the program;
   (b) has been issued a certificate of eligibility by the department;
   (c) has demonstrated that it meets the eligibility criteria in section
 three hundred fifty-three and subdivision two of section  three  hundred
 fifty-four of this article; and
   (d) has been certified as a participant by the commissioner.
   [14.]  16. "Preliminary schedule of benefits" means the maximum aggre-
 gate amount of each component of the tax credit that  a  participant  in
 the excelsior jobs program is eligible to receive pursuant to this arti-

 S. 2009                            28                            A. 3009
 
 cle.  The schedule shall indicate the annual amount of each component of
 the credit a participant may claim in each of its ten years of eligibil-
 ity.    The  preliminary  schedule  of  benefits  shall be issued by the
 department  when  the  department approves the application for admission
 into the program. The commissioner may  amend  that  schedule,  provided
 that  the  commissioner  complies  with the credit caps in section three
 hundred fifty-nine of this article.
   [15.] 17. "Qualified investment" means an investment in tangible prop-
 erty (including a building or a  structural  component  of  a  building)
 owned by a business enterprise which:
   (a)  is depreciable pursuant to section one hundred sixty-seven of the
 internal revenue code;
   (b) has a useful life of four years or more;
   (c) is acquired by purchase as defined in section one  hundred  seven-
 ty-nine (d) of the internal revenue code;
   (d) has a situs in this state; and
   (e) is placed in service in the state on or after the date the certif-
 icate of eligibility is issued to the business enterprise.
   [16.]  18.  "Regionally  significant project" means (a) a manufacturer
 creating at least fifty net new jobs in the state and making significant
 capital investment in the state; (b) a business creating at least twenty
 net new jobs in agriculture in the state and making significant  capital
 investment  in  the  state,  (c) a financial services firm, distribution
 center, or back office operation creating at least three hundred net new
 jobs in the state and  making  significant  capital  investment  in  the
 state,  (d) a scientific research and development firm creating at least
 twenty net new jobs in the state, and making significant capital invest-
 ment in the state, (E) A LIFE SCIENCES COMPANY CREATING AT LEAST  TWENTY
 NET  NEW  JOBS IN THE STATE AND MAKING SIGNIFICANT CAPITAL INVESTMENT IN
 THE STATE or [(e)] (F) an entertainment company creating or obtaining at
 least two hundred net new jobs in the state and making significant capi-
 tal investment in the state. Other businesses creating three hundred  or
 more net new jobs in the state and making significant capital investment
 in  the  state  may  be  considered eligible as a regionally significant
 project by the commissioner as well. The commissioner  shall  promulgate
 regulations  pursuant to section three hundred fifty-six of this article
 to determine what constitutes significant capital investment for each of
 the project categories indicated in this subdivision and what additional
 criteria a business must meet to be eligible as a regionally significant
 project, including, but not limited to, whether  a  business  exports  a
 substantial  portion of its products or services outside of the state or
 outside of a metropolitan statistical area or county within the state.
   [17.] 19. "Related  person"  means  a  "related  person"  pursuant  to
 subparagraph  (c)  of  paragraph three of subsection (b) of section four
 hundred sixty-five of the internal revenue code.
   [18.] 20. "Remuneration" means wages and benefits paid to an  employee
 by a participant in the excelsior jobs program.
   [19.] 21. "Research and development expenditures" mean the expenses of
 the  business  enterprise that are qualified research expenses under the
 federal research and development credit under section forty-one  of  the
 internal  revenue  code  and are attributable to activities conducted in
 the state. If the federal research and development credit  has  expired,
 then the research and development expenditures shall be calculated as if
 the  federal research and development credit structure and definition in
 effect in federal tax year two thousand nine were still in effect.

 S. 2009                            29                            A. 3009

   [20.] 22.  "Scientific  research  and  development"  means  conducting
 research  and experimental development in the physical, engineering, and
 life sciences, including but not limited  to  agriculture,  electronics,
 environmental,  biology,  botany,  biotechnology,  computers, chemistry,
 food, fisheries, forests, geology, health, mathematics, medicine, ocean-
 ography,  pharmacy, physics, veterinary, and other allied subjects.  For
 the purposes of this article, scientific research and  development  does
 not include medical or veterinary laboratory testing facilities.
   [21.]  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 general  busi-
 ness 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.
   § 2. Subdivisions 1 and 3 of section 353 of the  economic  development
 law,  as  amended  by  section  2 of part K of chapter 59 of the laws of
 2015, are amended to read as follows:
   1. To be a participant in the excelsior jobs program, a business enti-
 ty shall operate in New York state predominantly:
   (a) as a financial services data center or a financial  services  back
 office operation;
   (b) in manufacturing;
   (c) in software development and new media;
   (d) in scientific research and development;
   (e) in agriculture;
   (f)  in  the  creation  or  expansion of back office operations in the
 state;
   (g) in a distribution center;
   (h) in an  industry  with  significant  potential  for  private-sector
 economic  growth  and  development  in  this state as established by the
 commissioner in regulations promulgated pursuant  to  this  article.  In
 promulgating  such  regulations  the  commissioner shall include job and
 investment criteria;
   (i) as an entertainment company; [or]
   (j) in music production; OR
   (K) AS A LIFE SCIENCES COMPANY.
   3. For the purposes of this article, in order to  participate  in  the
 excelsior  jobs  program,  a  business entity operating predominantly in
 manufacturing must create at least ten net new jobs; a  business  entity
 operating predominately in agriculture must create at least five net new
 jobs;  a  business entity operating predominantly as a financial service
 data center or financial services customer back  office  operation  must
 create at least fifty net new jobs; a business entity operating predomi-
 nantly  in scientific research and development must create at least five
 net new jobs; a business  entity  operating  predominantly  in  software
 development  must  create  at least five net new jobs; a business entity
 creating or expanding back office operations must create at least  fifty
 net  new  jobs;  a  business  entity  operating  predominately  in music
 production must create at least five net new  jobs;  a  business  entity
 operating  predominantly  as  an  entertainment  company  must create or
 obtain at least one hundred net new jobs; or a business entity operating
 predominantly as a distribution center in the state must create at least
 seventy-five net new jobs,  notwithstanding  subdivision  five  of  this
 section; OR A BUSINESS ENTITY OPERATING PREDOMINATELY AS A LIFE SCIENCES
 COMPANY  MUST  CREATE  AT  LEAST FIVE NET NEW JOBS; or a business entity
 must be a regionally significant project as defined in this article; or

 S. 2009                            30                            A. 3009
 
   § 3. Subdivision 4 of section 353 of the economic development law,  as
 amended  by  section  1  of part C of chapter 68 of the laws of 2013, is
 amended to read as follows:
   4.  A business entity operating predominantly in one of the industries
 referenced in paragraphs (a) through (h) OR IN PARAGRAPH (K) of subdivi-
 sion one of this section but which does not meet the job requirements of
 subdivision three of this section must have at least  twenty-five  full-
 time job equivalents unless such business is a business entity operating
 predominantly  in manufacturing then it must have at least ten full-time
 job equivalents and must demonstrate that its benefit-cost ratio  is  at
 least ten to one.
   §  4. Subdivision 5 of section 354 of the economic development law, as
 amended by section 2 of part O of chapter 60 of the  laws  of  2016,  is
 amended to read as follows:
   5.  A participant may claim tax benefits commencing in the first taxa-
 ble year that the business enterprise  receives  a  certificate  of  tax
 credit  or  the first taxable year listed on its preliminary schedule of
 benefits, whichever is later. A participant may claim such benefits  for
 the  next  nine consecutive taxable years, provided that the participant
 demonstrates to the department that it continues to satisfy  the  eligi-
 bility  criteria  specified in section three hundred fifty-three of this
 article and subdivision two of this section in  each  of  those  taxable
 years, and provided that no tax credits may be allowed for taxable years
 beginning on or after January first, two thousand [twenty-seven] THIRTY.
 If,  in  any given year, a participant who has satisfied the eligibility
 criteria specified in section three hundred fifty-three of this  article
 realizes  job  creation less than the estimated amount, the credit shall
 be reduced by the proportion of actual job  creation  to  the  estimated
 amount,  provided the proportion is at least seventy-five percent of the
 jobs estimated.
   § 5. Section 359 of  the  economic  development  law,  as  amended  by
 section  1  of  part  O of chapter 60 of the laws of 2016, is amended to
 read as follows:
   § 359. Cap on tax credit. The total amount of tax  credits  listed  on
 certificates  of  tax  credit issued by the commissioner for any taxable
 year may not exceed the limitations set forth in this section.  One-half
 of  any  amount of tax credits not awarded for a particular taxable year
 in years two thousand eleven through two  thousand  twenty-four  may  be
 used by the commissioner to award tax credits in another taxable year.
 
 Credit components in the aggregate           With respect to taxable
 shall not exceed:                            years beginning in:
 
           $ 50 million                               2011
           $ 100 million                              2012
           $ 150 million                              2013
           $ 200 million                              2014
           $ 250 million                              2015
           $ 183 million                              2016
           $ 183 million                              2017
           $ 183 million                              2018
           $ 183 million                              2019
           $ 183 million                              2020
           $ 183 million                              2021
           $ 133 million                              2022
           $ 83 million                               2023

 S. 2009                            31                            A. 3009
 
           $ 36 million                               2024
 
   Twenty-five  percent  of  tax credits shall be allocated to businesses
 accepted into the  program  under  subdivision  four  of  section  three
 hundred  fifty-three  of  this  article  and seventy-five percent of tax
 credits shall be allocated to businesses accepted into the program under
 subdivision three of section three hundred fifty-three of this article.
   Provided, however, if by September thirtieth of a calendar  year,  the
 department  has  not  allocated  the full amount of credits available in
 that year to either: (i) businesses  accepted  into  the  program  under
 subdivision four of section three hundred fifty-three of this article or
 (ii)  businesses  accepted  into  the program under subdivision three of
 section three hundred fifty-three of this article, the commissioner  may
 allocate  any  remaining  tax  credits  to businesses referenced in this
 paragraph as needed; provided, however, that under no circumstances  may
 the  aggregate  statutory  cap  for  all  program years be exceeded. One
 hundred percent of the unawarded amounts remaining at  the  end  of  two
 thousand twenty-four may be allocated in subsequent years, notwithstand-
 ing  the  fifty  percent  limitation  on  any amounts of tax credits not
 awarded in taxable years two thousand eleven through two thousand  twen-
 ty-four.  Provided,  however,  no tax credits may be allowed for taxable
 years beginning on or after January first, two  thousand  [twenty-seven]
 THIRTY.
   §  6.  Subdivision  (b)  of  section  31 of the tax law, as amended by
 section 3 of part O of chapter 60 of the laws of  2016,  is  amended  to
 read as follows:
   (b) To be eligible for the excelsior jobs program credit, the taxpayer
 shall  have  been issued a "certificate of tax credit" by the department
 of economic development pursuant to subdivision four  of  section  three
 hundred  fifty-four  of  the economic development law, which certificate
 shall set forth the amount of each credit component that may be  claimed
 for  the  taxable year. A taxpayer may claim such credit for ten consec-
 utive taxable years commencing  in  the  first  taxable  year  that  the
 taxpayer  receives a certificate of tax credit or the first taxable year
 listed on its preliminary schedule  of  benefits,  whichever  is  later,
 provided  that no tax credits may be allowed for taxable years beginning
 on or after January first, two  thousand  [twenty-seven]  THIRTY.    The
 taxpayer shall be allowed to claim only the amount listed on the certif-
 icate  of  tax  credit  for  that taxable year. Such certificate must be
 attached to the taxpayer's return. No cost or expense paid  or  incurred
 by  the  taxpayer shall be the basis for more than one component of this
 credit or any other tax credit, except  as  provided  in  section  three
 hundred fifty-five of the economic development law.
   §  7.  The  tax  law  is amended by adding a new section 43 to read as
 follows:
   § 43. LIFE SCIENCES TAX CREDITS. (A) LIFE SCIENCES RESEARCH AND DEVEL-
 OPMENT TAX CREDIT. (1) ALLOWANCE OF CREDIT. (I) A  TAXPAYER  THAT  IS  A
 QUALIFIED  LIFE  SCIENCES  COMPANY, OR THAT IS A SOLE PROPRIETOR OF OR A
 PARTNER IN A PARTNERSHIP THAT IS A QUALIFIED LIFE SCIENCES COMPANY OR  A
 SHAREHOLDER  OF  A  NEW  YORK  S  CORPORATION  THAT  IS A QUALIFIED LIFE
 SCIENCES COMPANY, AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR  TWENTY-
 TWO  OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSU-
 ANT TO THE PROVISIONS REFERRED TO IN SUBDIVISION (E)  OF  THIS  SECTION,
 FOR  A  PERIOD  OF FIVE YEARS, AS PROVIDED IN CLAUSE (B) OF SUBPARAGRAPH
 (II) OF THIS PARAGRAPH, TO BE COMPUTED AS PROVIDED IN THIS  SUBDIVISION.

 S. 2009                            32                            A. 3009
 
 SUCH  CREDIT MAY BE CLAIMED IN THE TAXABLE YEAR SPECIFIED ON THE CERTIF-
 ICATE OF TAX CREDIT ISSUED TO THE QUALIFIED LIFE SCIENCES COMPANY.
   (II)(A) FOR A QUALIFIED LIFE SCIENCES COMPANY THAT EMPLOYS TEN OR MORE
 PERSONS DURING THE TAXABLE YEAR, THE AMOUNT OF THE CREDIT SHALL BE EQUAL
 TO  FIFTEEN  PERCENT  OF SUCH QUALIFIED LIFE SCIENCES COMPANY'S RESEARCH
 AND DEVELOPMENT EXPENDITURES IN THIS STATE FOR THE TAXABLE YEAR.  FOR  A
 QUALIFIED  LIFE  SCIENCES  COMPANY  THAT  EMPLOYS  LESS THAN TEN PERSONS
 DURING THE TAXABLE YEAR, THE AMOUNT OF THE  CREDIT  SHALL  BE  EQUAL  TO
 TWENTY  PERCENT  OF  SUCH QUALIFIED LIFE SCIENCES COMPANY'S RESEARCH AND
 DEVELOPMENT EXPENDITURES IN THIS STATE FOR THE TAXABLE YEAR.
   (B) THE CREDIT SHALL BE ALLOWED ONLY WITH RESPECT TO THE FIRST TAXABLE
 YEAR DURING WHICH THE CRITERIA SET FORTH IN THIS  PARAGRAPH  ARE  SATIS-
 FIED,  AND WITH RESPECT TO EACH OF THE FOUR TAXABLE YEARS NEXT FOLLOWING
 (BUT ONLY, WITH RESPECT TO EACH OF SUCH  YEARS,  IF  SUCH  CRITERIA  ARE
 SATISFIED).    SUBSEQUENT CERTIFICATIONS OF THE LIFE SCIENCES COMPANY BY
 THE DEPARTMENT OF ECONOMIC  DEVELOPMENT  PURSUANT  TO  THIS  SUBDIVISION
 SHALL  NOT EXTEND THE FIVE TAXABLE YEAR TIME LIMITATION ON THE ALLOWANCE
 OF THE CREDIT SET FORTH IN THE PRECEDING SENTENCE.
   (III) THE TOTAL  AMOUNT  OF  CREDIT  ALLOWABLE  TO  A  QUALIFIED  LIFE
 SCIENCES  COMPANY, OR, IF THE LIFE SCIENCES COMPANY IS PROPERLY INCLUDED
 OR REQUIRED TO BE INCLUDED IN A COMBINED REPORT, TO THE COMBINED  GROUP,
 TAKEN  IN THE AGGREGATE, SHALL NOT EXCEED FIVE HUNDRED THOUSAND DOLLARS.
 IF THE LIFE SCIENCES COMPANY IS A PARTNER IN A PARTNERSHIP OR SHAREHOLD-
 ER OF A NEW YORK S CORPORATION, THEN THE TOTAL AMOUNT OF  CREDIT  ALLOW-
 ABLE  SHALL  BE APPLIED AT THE ENTITY LEVEL, SO THAT THE TOTAL AMOUNT OF
 CREDIT ALLOWABLE TO ALL THE PARTNERS OR SHAREHOLDERS OF EACH SUCH  ENTI-
 TY,  TAKEN  IN  THE  AGGREGATE,  DOES  NOT  EXCEED FIVE HUNDRED THOUSAND
 DOLLARS.
   (IV) NO  RESEARCH  AND  DEVELOPMENT  EXPENDITURES  MADE  BY  THE  LIFE
 SCIENCES  COMPANY  AND USED EITHER AS THE BASIS FOR THE ALLOWANCE OF THE
 CREDIT PROVIDED FOR PURSUANT TO THIS SUBDIVISION OR USED IN  THE  CALCU-
 LATION OF THE CREDIT PROVIDED PURSUANT TO THIS SUBDIVISION SHALL BE USED
 TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER OR BE USED IN
 THE CALCULATION OF ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER.
   (2)  MAXIMUM  AMOUNT  OF  CREDITS. THE AGGREGATE AMOUNT OF TAX CREDITS
 ALLOWED UNDER THIS SUBDIVISION TO TAXPAYERS SUBJECT TO TAX  UNDER  ARTI-
 CLES  NINE-A AND TWENTY-TWO OF THIS CHAPTER IN ANY TAXABLE YEAR SHALL BE
 TEN MILLION DOLLARS, AND SHALL BE ALLOTTED FROM THE FUNDS AVAILABLE  FOR
 TAX  CREDITS  UNDER  ARTICLE  SEVENTEEN OF THE ECONOMIC DEVELOPMENT LAW.
 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 LIFE  SCIENCES  RESEARCH
 AND  DEVELOPMENT TAX CREDIT WITH SUCH DEPARTMENT. IF THE TOTAL AMOUNT OF
 ALLOCATED CREDITS APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE  AGGRE-
 GATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SUBDIVISION,
 SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY
 OF THE SUBSEQUENT YEAR.
   (B) ANGEL INVESTOR TAX CREDIT. (1) ALLOWANCE OF CREDIT. (I) A TAXPAYER
 THAT IS A QUALIFIED ANGEL INVESTOR, OR THAT IS A SOLE PROPRIETOR OF OR A
 PARTNER  IN A PARTNERSHIP THAT IS A QUALIFIED ANGEL INVESTOR OR A SHARE-
 HOLDER OF A NEW YORK S CORPORATION THAT IS A QUALIFIED  ANGEL  INVESTOR,
 AND  IS  SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP-
 TER, SHALL BE ALLOWED  A  CREDIT  AGAINST  SUCH  TAX,  PURSUANT  TO  THE
 PROVISIONS  REFERRED TO IN SUBDIVISION (E) OF THIS SECTION, FOR A PERIOD
 OF TEN YEARS, TO BE COMPUTED AS PROVIDED  IN  THIS  SUBDIVISION.    SUCH

 S. 2009                            33                            A. 3009
 
 CREDIT SHALL BE CLAIMED IN THE TAXABLE YEAR SPECIFIED ON THE CERTIFICATE
 OF ANGEL INVESTMENT ISSUED TO THE QUALIFIED ANGEL INVESTOR.
   (II) THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF
 EACH ANGEL INVESTMENT MADE DURING THE TAXABLE YEAR.
   (III) THE TOTAL AMOUNT OF CREDIT ALLOWABLE TO A QUALIFIED ANGEL INVES-
 TOR,  OR,  IF  THE  QUALIFIED  ANGEL  INVESTOR  IS  PROPERLY INCLUDED OR
 REQUIRED TO BE INCLUDED IN A COMBINED REPORT,  TO  THE  COMBINED  GROUP,
 TAKEN  IN  THE  AGGREGATE,  SHALL  NOT EXCEED TWO HUNDRED FIFTY THOUSAND
 DOLLARS. IF THE ANGEL INVESTOR IS A PARTNER IN A PARTNERSHIP  OR  SHARE-
 HOLDER  OF  A  NEW  YORK  S CORPORATION, THEN THE TOTAL AMOUNT OF CREDIT
 ALLOWABLE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE TOTAL AMOUNT
 OF CREDIT ALLOWABLE TO ALL THE PARTNERS OR  SHAREHOLDERS  OF  EACH  SUCH
 ENTITY,  TAKEN IN THE AGGREGATE, DOES NOT EXCEED TWO HUNDRED FIFTY THOU-
 SAND DOLLARS.
   (IV) NO INVESTMENT MADE BY THE TAXPAYER AND USED EITHER AS  THE  BASIS
 FOR  THE  ALLOWANCE OF THE CREDIT PROVIDED FOR PURSUANT TO THIS SUBDIVI-
 SION OR USED IN THE CALCULATION OF THE CREDIT PROVIDED PURSUANT TO  THIS
 SUBDIVISION  SHALL BE USED TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO
 THIS CHAPTER OR USED IN THE CALCULATION  OF  ANY  OTHER  CREDIT  ALLOWED
 PURSUANT TO THIS CHAPTER.
   (2)  RECAPTURE. (I) IF THE CERTIFICATE OF ANGEL INVESTMENT OF AN ANGEL
 INVESTOR ISSUED BY THE DEPARTMENT OF  ECONOMIC  DEVELOPMENT  UNDER  THIS
 SECTION IS REVOKED BY SUCH DEPARTMENT BECAUSE THE INVESTMENT MADE BY THE
 ANGEL  INVESTOR  DOES NOT MEET THE ELIGIBILITY REQUIREMENTS SET FORTH IN
 THIS SECTION AND IN REGULATION, THE AMOUNT OF CREDIT DESCRIBED  IN  THIS
 SUBDIVISION  AND CLAIMED BY SUCH ANGEL INVESTOR PRIOR TO THAT REVOCATION
 SHALL BE ADDED BACK AS TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCA-
 TION BECOMES FINAL.
   (II) WHERE A TAXPAYER SELLS, TRANSFERS OR OTHERWISE DISPOSES OF CORPO-
 RATE STOCK, A PARTNERSHIP INTEREST OR OTHER OWNERSHIP  INTEREST  ARISING
 FROM  THE  MAKING OF AN ANGEL INVESTMENT THAT WAS THE BASIS, IN WHOLE OR
 IN PART, FOR THE ALLOWANCE OF THE CREDIT PROVIDED FOR UNDER THIS  SUBDI-
 VISION, OR WHERE AN INVESTMENT THAT WAS THE BASIS FOR SUCH ALLOWANCE IS,
 IN WHOLE OR IN PART, RECOVERED BY SUCH TAXPAYER, AND SUCH DISPOSITION OR
 RECOVERY  OCCURS  DURING  THE  TAXABLE YEAR OR WITHIN FORTY-EIGHT MONTHS
 FROM THE CLOSE OF THE TAXABLE YEAR WITH RESPECT TO WHICH SUCH CREDIT  IS
 ALLOWED, THE TAXPAYER SHALL ADD BACK AS TAX, WITH RESPECT TO THE TAXABLE
 YEAR  IN WHICH THE DISPOSITION OR RECOVERY DESCRIBED ABOVE OCCURRED, THE
 AMOUNT OF THE CREDIT ORIGINALLY CLAIMED BY THE TAXPAYER.
   (3) MAXIMUM AMOUNT OF CREDITS. THE AGGREGATE  AMOUNT  OF  TAX  CREDITS
 ALLOWED  UNDER  THIS SUBDIVISION TO TAXPAYERS SUBJECT TO TAX UNDER ARTI-
 CLES NINE-A AND TWENTY-TWO OF THIS CHAPTER IN ANY TAXABLE YEAR SHALL  BE
 FIVE  MILLION  DOLLARS.  SUCH AGGREGATE AMOUNT OF CREDITS SHALL BE ALLO-
 CATED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT AMONG TAXPAYERS IN ORDER
 OF PRIORITY BASED UPON THE DATE OF FILING AN APPLICATION FOR  ALLOCATION
 OF  ANGEL  INVESTOR TAX 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 SUBDI-
 VISION, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR  ON  THE
 FIRST DAY OF THE SUBSEQUENT YEAR.
   (C)  DEFINITIONS.  AS  USED  IN THIS SECTION THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (1) "ANGEL INVESTMENT" MEANS AN INVESTMENT IN THE FORM OF  A  CONTRIB-
 UTION  TO  THE  CAPITAL OF THE QUALIFIED LIFE SCIENCES COMPANY, PROVIDED
 THAT SUCH INVESTMENT IS AT RISK AND IS NOT  SECURED  OR  GUARANTEED.  AN
 "ANGEL  INVESTMENT"  DOES NOT INCLUDE ANY LOANS, OR INVESTMENTS IN HEDGE

 S. 2009                            34                            A. 3009

 FUNDS OR COMMODITY FUNDS WITH INSTITUTIONAL INVESTORS  OR  WITH  INVEST-
 MENTS  IN  A  BUSINESS  INVOLVED  IN  RETAIL,  REAL ESTATE, PROFESSIONAL
 SERVICES, GAMING OR FINANCIAL SERVICES.
   (2)  "ANGEL  INVESTOR" MEANS AN ACCREDITED INVESTOR, AS DEFINED BY THE
 UNITED STATE SECURITIES AND  EXCHANGE  COMMISSION  PURSUANT  TO  SECTION
 SEVENTY-SEVEN-B OF TITLE FIFTEEN OF THE UNITED STATES CODE, OR A NETWORK
 OF  ACCREDITED  INVESTORS,  THAT  REVIEWS NEW OR PROPOSED BUSINESSES FOR
 POTENTIAL INVESTMENT AND THAT  MAY  SEEK  ACTIVE  INVOLVEMENT,  SUCH  AS
 CONSULTING  AND  MENTORING, IN A LIFE SCIENCES COMPANY. "ANGEL INVESTOR"
 DOES NOT INCLUDE A PERSON CONTROLLING,  DIRECTLY  OR  INDIRECTLY,  FIFTY
 PERCENT  OR  MORE  OF THE LIFE SCIENCES COMPANY INVESTED IN BY THE ANGEL
 INVESTOR OR WHO IS INVOLVED IN THE LIFE SCIENCES COMPANY IN A  FULL-TIME
 PROFESSIONAL  CAPACITY, AND DOES NOT INCLUDE A CORPORATION OF WHICH SUCH
 LIFE SCIENCES COMPANY IS A DIRECT OR INDIRECT SUBSIDIARY, AS DEFINED  IN
 SECTION TWO HUNDRED EIGHT OF THIS CHAPTER.
   (3)  "CERTIFICATE  OF ANGEL INVESTMENT" MEANS THE DOCUMENT ISSUED TO A
 QUALIFIED ANGEL INVESTOR BY THE DEPARTMENT OF ECONOMIC  DEVELOPMENT  FOR
 EACH  ANGEL  INVESTMENT  MADE BY THE QUALIFIED ANGEL INVESTOR, AFTER THE
 DEPARTMENT OR ECONOMIC DEVELOPMENT HAS VERIFIED THAT SUCH ANGEL INVESTOR
 HAS MET ALL APPLICABLE CRITERIA IN THIS SECTION TO BE ELIGIBLE  FOR  THE
 ANGEL INVESTOR TAX CREDIT ALLOWED UNDER SUBDIVISION (B) OF THIS SECTION,
 INCLUDING  BUT  NOT LIMITED TO CERTIFYING THAT THE LIFE SCIENCES COMPANY
 IN WHICH THE ANGEL INVESTOR HAS MADE SUCH INVESTMENT IS A QUALIFIED LIFE
 SCIENCES COMPANY. THE CERTIFICATE  SHALL  BE  ISSUED  ANNUALLY  IF  SUCH
 CRITERIA  ARE SATISFIED AND SHALL SPECIFY THE EXACT AMOUNT OF EACH ANGEL
 INVESTMENT MADE BY THE ANGEL INVESTOR AND THE AMOUNT OF THE  TAX  CREDIT
 THAT  MAY BE CLAIMED BY SUCH ANGEL INVESTOR, PURSUANT TO SUBDIVISION (B)
 OF THIS SECTION, AND SHALL SPECIFY THE TAXABLE YEAR IN WHICH SUCH CREDIT
 MAY BE CLAIMED.
   (4) "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A  QUALI-
 FIED  LIFE  SCIENCES  COMPANY BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT,
 AFTER THE DEPARTMENT OF ECONOMIC DEVELOPMENT HAS VERIFIED THAT SUCH LIFE
 SCIENCES COMPANY HAS MET ALL APPLICABLE CRITERIA IN THIS SECTION  TO  BE
 ELIGIBLE  FOR  THE  LIFE  SCIENCES  RESEARCH  AND DEVELOPMENT TAX CREDIT
 ALLOWED UNDER SUBDIVISION (A) OF THIS SECTION, INCLUDING BUT NOT LIMITED
 TO VERIFYING THAT THE LIFE SCIENCES  COMPANY  IS  A  NEW  BUSINESS.  THE
 CERTIFICATE  SHALL BE ISSUED ANNUALLY IF SUCH CRITERIA ARE SATISFIED AND
 SHALL SPECIFY THE EXACT AMOUNT OF THE LIFE SCIENCES RESEARCH AND  DEVEL-
 OPMENT  TAX  CREDIT  THAT MAY BE CLAIMED BY SUCH QUALIFIED LIFE SCIENCES
 COMPANY, PURSUANT TO SUBDIVISION (A) OF THIS SECTION, AND SHALL  SPECIFY
 THE TAXABLE YEAR IN WHICH SUCH CREDIT MAY BE CLAIMED.
   (5) "NEW BUSINESS" MEANS ANY BUSINESS THAT QUALIFIES AS A NEW BUSINESS
 UNDER  EITHER  PARAGRAPH  (F)  OF SUBDIVISION ONE OF SECTION TWO HUNDRED
 TEN-B OR PARAGRAPH TEN OF SUBSECTION ONE OF SECTION SIX HUNDRED  SIX  OF
 THIS CHAPTER.
   (6)  "QUALIFIED  ANGEL  INVESTOR" MEANS AN ANGEL INVESTOR CERTIFIED BY
 THE DEPARTMENT OF ECONOMIC DEVELOPMENT AS AN ANGEL INVESTOR.
   (7) "QUALIFIED LIFE SCIENCES COMPANY" MEANS A LIFE  SCIENCES  COMPANY,
 AS  DEFINED  IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED FIFTY-TWO OF
 THE ECONOMIC DEVELOPMENT LAW, THAT HAS BEEN CERTIFIED BY THE  DEPARTMENT
 OF  ECONOMIC  DEVELOPMENT  AS A LIFE SCIENCES COMPANY AND IS A NEW BUSI-
 NESS. PROVIDED THAT, FOR PURPOSES  OF  THE  ANGEL  INVESTOR  TAX  CREDIT
 PROVIDED  PURSUANT  TO SUBDIVISION (B) OF THIS SECTION, A QUALIFIED LIFE
 SCIENCES COMPANY SHALL AT THE TIME THAT  THE  ANGEL  INVESTOR  MAKES  AN
 INITIAL  ANGEL INVESTMENT IN SUCH LIFE SCIENCES COMPANY EMPLOY TWENTY OR
 FEWER PERSONS DURING THE TAXABLE YEAR AND SHALL  HAVE  HAD,  DURING  THE

 S. 2009                            35                            A. 3009
 
 IMMEDIATELY  PRECEDING  TAXABLE YEAR, GROSS RECEIPTS OF NOT GREATER THAN
 FIVE HUNDRED THOUSAND DOLLARS.  PROVIDED HOWEVER, FOR  PURPOSES  OF  THE
 CREDITS AUTHORIZED UNDER THIS SECTION, THE DEPARTMENT OF ECONOMIC DEVEL-
 OPMENT  SHALL  NOT  CERTIFY  AS A LIFE SCIENCES COMPANY ANY CORPORATION,
 PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY THAT HAS  BEEN  WITHIN
 THE  IMMEDIATELY  PRECEDING  SIXTY  MONTHS A RELATED PERSON TO AN ENTITY
 THAT IS A LIFE SCIENCES COMPANY OR AN ENTITY THAT IS ENGAGED  IN  SCIEN-
 TIFIC  RESEARCH  AND DEVELOPMENT AS DEFINED IN SUBDIVISION TWENTY-TWO OF
 SECTION THREE HUNDRED FIFTY-TWO OF THE ECONOMIC DEVELOPMENT LAW.
   (8) "RESEARCH AND DEVELOPMENT EXPENDITURES" MEANS  QUALIFIED  RESEARCH
 EXPENSES  AS  DEFINED  IN  SUBSECTION  (B) OF SECTION 41 OF THE INTERNAL
 REVENUE CODE BUT EXCLUDING WAGES, PROVIDED, HOWEVER, THAT SUCH QUALIFIED
 RESEARCH EXPENSES SHALL NOT INCLUDE AMOUNTS UNDER  SUBPARAGRAPH  (B)  OF
 PARAGRAPH 1 OF SUBSECTION (B) OF SECTION 41 OF THE INTERNAL REVENUE CODE
 AND  AS FURTHER DESCRIBED IN PARAGRAPH 3 OF SUBSECTION (B) OF SECTION 41
 OF THE INTERNAL REVENUE CODE. IF SECTION 41 OF THE INTERNAL REVENUE CODE
 HAS EXPIRED, THEN THE RESEARCH AND DEVELOPMENT EXPENSES SHALL BE  CALCU-
 LATED  AS  IF  THE FEDERAL RESEARCH AND DEVELOPMENT CREDIT STRUCTURE AND
 DEFINITION IN EFFECT IN SECTION 41 IN FEDERAL TAX YEAR TWO THOUSAND NINE
 WERE STILL IN EFFECT.
   (9) "RELATED PERSON" MEANS A RELATED PERSON AS DEFINED IN SUBPARAGRAPH
 (C) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION 465 OF THE  INTERNAL
 REVENUE  CODE.  FOR  THIS  PURPOSE,  A "RELATED PERSON" SHALL INCLUDE AN
 ENTITY THAT WOULD HAVE QUALIFIED AS A "RELATED PERSON"  IF  IT  HAD  NOT
 BEEN  DISSOLVED,  LIQUIDATED,  MERGED  WITH  ANOTHER ENTITY OR OTHERWISE
 CEASED TO EXIST OR OPERATE.
   (D)(1) FOR PURPOSES OF THIS SECTION, IN ORDER TO BE ELIGIBLE  FOR  THE
 LIFE SCIENCES RESEARCH AND DEVELOPMENT TAX CREDIT ALLOWED UNDER SUBDIVI-
 SION  (A)  OF  THIS  SECTION,  A  LIFE SCIENCES COMPANY MUST BE ISSUED A
 CERTIFICATE OF TAX CREDIT BY THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT.
 THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT  SHALL  VERIFY THAT SUCH LIFE
 SCIENCES COMPANY HAS MET ALL APPLICABLE  ELIGIBILITY  CRITERIA  IN  THIS
 SECTION  BEFORE  ISSUING  A CERTIFICATE OF TAX CREDIT, INCLUDING BUT NOT
 LIMITED TO VERIFYING THAT THE LIFE SCIENCES COMPANY IS A NEW BUSINESS.
   (2) FOR PURPOSES OF THIS SECTION, IN ORDER  TO  BE  ELIGIBLE  FOR  THE
 ANGEL INVESTOR TAX CREDIT ALLOWED UNDER SUBDIVISION (B) OF THIS SECTION,
 AN  ANGEL  INVESTOR  MUST BE ISSUED A CERTIFICATE OF ANGEL INVESTMENT BY
 THE DEPARTMENT OF ECONOMIC DEVELOPMENT FOR  EACH  ANGEL  INVESTMENT  FOR
 WHICH  THE  CREDIT  IS CLAIMED.   THE DEPARTMENT OF ECONOMIC DEVELOPMENT
 SHALL VERIFY THAT SUCH ANGEL INVESTOR HAS MET ALL APPLICABLE ELIGIBILITY
 CRITERIA IN THIS SECTION BEFORE ISSUING A CERTIFICATE OF  ANGEL  INVEST-
 MENT,  INCLUDING  BUT  NOT  LIMITED TO CERTIFYING THAT THE LIFE SCIENCES
 COMPANY IN WHICH THE ANGEL INVESTOR HAS MADE SUCH INVESTMENT IS A QUALI-
 FIED LIFE SCIENCES COMPANY.
   (3) THE COMMISSIONER OF ECONOMIC DEVELOPMENT,  AFTER  CONSULTING  WITH
 THE  COMMISSIONER, SHALL PROMULGATE REGULATIONS BY OCTOBER THIRTY-FIRST,
 TWO THOUSAND SEVENTEEN TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF TAX
 CREDITS ALLOWED UNDER THIS SECTION. SUCH  RULES  AND  REGULATIONS  SHALL
 INCLUDE  PROVISIONS  DESCRIBING THE APPLICATION PROCESS FOR EACH CREDIT,
 THE DUE DATES FOR SUCH APPLICATIONS, THE ELIGIBILITY STANDARDS FOR QUAL-
 IFIED LIFE SCIENCES COMPANIES, 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-

 S. 2009                            36                            A. 3009

 LATIONS  MAY  BE ADOPTED ON AN EMERGENCY BASIS IF NECESSARY TO MEET SUCH
 OCTOBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN DEADLINE.
   (E)  CROSS-REFERENCES.  FOR APPLICATION OF THE CREDITS PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 52.
   (2) ARTICLE 22: SECTION 606: SUBSECTION (HHH).
   (F) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, (I)  EMPLOYEES  AND
 OFFICERS  OF  THE  DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT
 SHALL BE ALLOWED AND ARE DIRECTED  TO  SHARE  AND  EXCHANGE  INFORMATION
 REGARDING  THE CREDITS APPLIED FOR, ALLOWED, OR CLAIMED PURSUANT TO THIS
 SECTION AND TAXPAYERS WHO ARE APPLYING FOR CREDITS OR WHO  ARE  CLAIMING
 CREDITS, INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM
 FORMS  SUBMITTED  TO  THE  DEPARTMENT AND APPLICATIONS FOR CERTIFICATION
 SUBMITTED TO THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT,  AND  (II)  THE
 COMMISSIONER AND THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOP-
 MENT  MAY RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THESE
 CREDITS AND THE AMOUNT OF THE CREDIT EARNED BY THE  TAXPAYER.  PROVIDED,
 HOWEVER,  IF  A  TAXPAYER CLAIMS EITHER OF THESE CREDITS 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.
   (G) FOR PURPOSES OF THE CREDITS ALLOWED UNDER THIS SECTION, THE NUMBER
 OF PERSONS EMPLOYED BY A QUALIFIED  LIFE  SCIENCES  COMPANY  DURING  THE
 TAXABLE  YEAR  SHALL  BE  DETERMINED  BY ASCERTAINING THE NUMBER OF SUCH
 INDIVIDUALS EMPLOYED FULL-TIME BY SUCH COMPANY, EXCLUDING GENERAL EXECU-
 TIVE OFFICERS, ON THE THIRTY-FIRST DAY OF MARCH, THE  THIRTIETH  DAY  OF
 JUNE,  THE THIRTIETH DAY OF SEPTEMBER AND THE THIRTY-FIRST DAY OF DECEM-
 BER DURING EACH TAXABLE YEAR, BY ADDING  TOGETHER  THE  NUMBER  OF  SUCH
 INDIVIDUALS  ASCERTAINED  ON  EACH OF SUCH DATES AND DIVIDING THE SUM SO
 OBTAINED BY THE NUMBER OF SUCH DATES OCCURRING WITHIN SUCH TAXABLE YEAR.
 AN INDIVIDUAL EMPLOYED FULL-TIME MEANS AN EMPLOYEE IN A  JOB  CONSISTING
 OF AT LEAST THIRTY-FIVE HOURS PER WEEK, OR TWO OR MORE EMPLOYEES WHO ARE
 IN  JOBS  THAT  TOGETHER  CONSTITUTE THE EQUIVALENT OF A JOB OF AT LEAST
 THIRTY-FIVE HOURS PER WEEK (FULL-TIME EQUIVALENT).
   § 8. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 52 to read as follows:
   52. LIFE SCIENCES TAX CREDITS. (A) LIFE SCIENCES RESEARCH AND DEVELOP-
 MENT  TAX  CREDIT.  (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS ELIGIBLE
 PURSUANT TO SUBDIVISION (A) OF SECTION FORTY-THREE OF THIS CHAPTER SHALL
 BE ALLOWED A CREDIT TO BE  COMPUTED  AS  PROVIDED  IN  SUCH  SUBDIVISION
 AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS PARAGRAPH 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 PARAGRAPH 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 TREATED AS AN OVER-
 PAYMENT 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 THOUSAND EIGHT-
 Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
 EON.
   (B)  ANGEL  INVESTOR  TAX  CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
 THAT IS ELIGIBLE PURSUANT TO SUBDIVISION (B) OF SECTION  FORTY-THREE  OF

 S. 2009                            37                            A. 3009
 
 THIS  CHAPTER  SHALL  BE  ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
 SUCH SUBDIVISION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS PARAGRAPH 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 PARAGRAPH 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 TREATED AS AN OVER-
 PAYMENT 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 THOUSAND EIGHT-
 Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
 EON.
   §  9. Section 606 of the tax law is amended by adding a new subsection
 (hhh) to read as follows:
   (HHH) LIFE SCIENCES TAX CREDITS.    (1)  LIFE  SCIENCES  RESEARCH  AND
 DEVELOPMENT  TAX  CREDIT.  (A)  ALLOWANCE  OF  CREDIT. A TAXPAYER WHO IS
 ELIGIBLE PURSUANT TO SUBDIVISION (A)  OF  SECTION  FORTY-THREE  OF  THIS
 CHAPTER  SHALL  BE  ALLOWED  A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH
 SUBDIVISION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (B) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
 THIS PARAGRAPH 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.
   (2) ANGEL INVESTOR TAX CREDIT. (A) A TAXPAYER WHO IS ELIGIBLE PURSUANT
 TO SUBDIVISION (B) OF SECTION  FORTY-THREE  OF  THIS  CHAPTER  SHALL  BE
 ALLOWED  A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SUBDIVISION AGAINST
 THE TAX IMPOSED BY THIS ARTICLE.
   (B) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
 THIS PARAGRAPH 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.
   § 10. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding two new clauses (xliii)  and  (xliv)
 to read as follows:
 (XLIII) LIFE SCIENCES RESEARCH AND      AMOUNT OF CREDIT UNDER PARAGRAPH
 DEVELOPMENT TAX CREDIT UNDER            (A) OF SUBDIVISION FIFTY-TWO OF
 PARAGRAPH ONE OF SUBSECTION (HHH)       SECTION TWO HUNDRED TEN-B
 
 (XLIV) ANGEL INVESTOR TAX               AMOUNT OF CREDIT UNDER PARAGRAPH
 CREDIT UNDER PARAGRAPH TWO OF           (B) OF SUBDIVISION FIFTY-TWO OF
 SUBSECTION (HHH)                        SECTION TWO HUNDRED TEN-B
   § 11. This act shall take effect immediately, and shall apply to taxa-
 ble years beginning on or after January 1, 2018.
 
                                  PART L
 
   Section  1.  Section  441 of the economic development law, as added by
 section 1 of part O of chapter 59 of the laws of  2015,  is  amended  to
 read as follows:
   § 441. Definitions. As used in this article, the following terms shall
 have the following meanings:

 S. 2009                            38                            A. 3009
 
   1.  "Approved provider" means an entity meeting such criteria as shall
 be established by the commissioner in rules and regulations  promulgated
 pursuant  to this article, that may provide eligible training to employ-
 ees of a business entity participating in the employee  training  incen-
 tive program; provided that, for internship programs, the business enti-
 ty  shall  be  an  approved provider or an approved provider in contract
 with such business entity. Such criteria shall ensure that any  approved
 provider  possess adequate credentials to provide the training described
 in an application by a business entity to the  commissioner  to  partic-
 ipate in the employee training incentive program.
   2. "Commissioner" means the commissioner of economic development.
   3.  "Eligible  training"  means  (a)  training provided by an approved
 provider that is:
   (i) to upgrade, retrain or improve the productivity of employees;
   (ii) provided to employees [filling  net  new  jobs,  or  to  existing
 employees]  in  connection  with  a  significant capital investment by a
 participating business entity;
   (iii) determined by the commissioner to satisfy a business need on the
 part of a participating business entity;
   (iv) not designed to train or upgrade skills as required by a  federal
 or state entity;
   (v) not training the completion of which may result in the awarding of
 a license or certificate required by law in order to perform a job func-
 tion; and
   (vi) not culturally focused training; or
   (b)  an  internship  program  in  advanced technology OR LIFE SCIENCES
 approved by the commissioner and provided by an approved provider, on or
 after August first, two thousand  fifteen,  to  provide  employment  and
 experience  opportunities  for  current  students, recent graduates, and
 recent members of the armed forces.
   4.["Net new job" means a job created in this state that:
   (a) is new to the state;
   (b) has not been transferred from  employment  with  another  business
 located  in  this state through an acquisition, merger, consolidation or
 other reorganization of businesses  or  the  acquisition  of  assets  of
 another  business,  and  has not been transferred from employment with a
 related person in this state;
   (c) is either a full-time wage-paying job or equivalent to a full-time
 wage-paying job requiring at least thirty-five hours per week;
   (d) is filled for more than six months;
   (e) is filled by a person who has received eligible training; and
   (f) is comprised of tasks the performance of which required the person
 filling the job to undergo eligible training.] "LIFE SCIENCES" MEANS THE
 FIELD OF BIOTECHNOLOGY, PHARMACEUTICALS, BIOMEDICAL  TECHNOLOGIES,  LIFE
 SYSTEMS  TECHNOLOGIES, HEALTH INFORMATICS, HEALTH ROBOTICS OR BIOMEDICAL
 DEVICES. "LIFE SCIENCES COMPANY" IS A BUSINESS ENTITY OR AN ORGANIZATION
 OR INSTITUTION THAT DEVOTES THE MAJORITY OF ITS EFFORTS IN  THE  VARIOUS
 STAGES  OF RESEARCH, DEVELOPMENT, TECHNOLOGY TRANSFER AND COMMERCIALIZA-
 TION RELATED TO ANY LIFE SCIENCES FIELD.
   5. "Significant capital investment" means a capital investment [of  at
 least  one  million dollars] in new business processes or equipment, THE
 COST OF WHICH IS EQUAL TO OR EXCEEDS TEN DOLLARS FOR EVERY ONE DOLLAR OF
 TAX CREDIT ALLOWED TO AN ELIGIBLE BUSINESS  ENTITY  UNDER  THIS  PROGRAM
 PURSUANT TO SUBDIVISION FIFTY OF SECTION TWO HUNDRED TEN-B OR SUBSECTION
 (DDD) OF SECTION SIX HUNDRED SIX OF THE TAX LAW.

 S. 2009                            39                            A. 3009
 
   6.  "Strategic  industry"  means  an industry in this state, as estab-
 lished by the commissioner in regulations promulgated pursuant  to  this
 article, based upon the following criteria:
   (a) shortages of workers trained to work within the industry;
   (b)  technological  disruption  in the industry, requiring significant
 capital investment for existing businesses to remain competitive;
   (c) the ability of businesses in the industry to relocate  outside  of
 the state in order to attract talent;
   (d)  the  potential  to  recruit minorities and women to be trained to
 work in the industry in which they are traditionally underrepresented;
   (e) the potential to create jobs  in  economically  distressed  areas,
 which  shall  be  based  on  criteria  indicative  of economic distress,
 including poverty rates, numbers of persons receiving public assistance,
 and unemployment rates; or
   (f) such other criteria as shall be developed by the  commissioner  in
 consultation with the commissioner of labor.
   § 2.  Section 442 of the economic development law, as added by section
 1  of  part  O  of chapter 59 of the laws of 2015, is amended to read as
 follows:
   § 442. Eligibility criteria. In order to participate in  the  employee
 training incentive program, a business entity must satisfy the following
 criteria:
   1.  (a) The business entity must operate in the state predominantly in
 a strategic industry;
   (b) The business entity must demonstrate that it is obtaining eligible
 training from an approved provider;
   (c) The business entity must [create at least ten  net  new  jobs  or]
 make  a  significant  capital investment in connection with the eligible
 training; and
   (d) The  business  entity  must  be  in  compliance  with  all  worker
 protection  and  environmental  laws  and  regulations. In addition, the
 business entity may not owe past  due  state  taxes  or  local  property
 taxes; or
   2.  (a)  The business entity, or an approved provider in contract with
 such business entity, must be approved by the  commissioner  to  provide
 eligible training in the form of an internship program in advanced tech-
 nology OR AT A LIFE SCIENCES COMPANY pursuant to paragraph (b) of subdi-
 vision three of section four hundred forty-one of this article;
   (b) The business entity must be located in the state;
   (c)  The  business  entity  must  be  in  compliance  with  all worker
 protection and environmental laws  and  regulations.  In  addition,  the
 business  entity  must  not  have past due state taxes or local property
 taxes;
   (d) The internship program shall not displace regular employees;
   (e) The business entity must have less than one hundred employees; and
   (f) Participation of an individual in an internship program shall  not
 last more than a total of twelve months.
   § 3. This act shall take effect immediately.
 
                                  PART M
 
   Section  1.  Paragraph  5  of subdivision (a) of section 24 of the tax
 law, as amended by chapter 420 of the laws of 2016, is amended  to  read
 as follows:
   (5)  For  the  period two thousand fifteen through two thousand [nine-
 teen] TWENTY-TWO, in addition to the amount  of  credit  established  in

 S. 2009                            40                            A. 3009
 
 paragraph  two of this subdivision, a taxpayer shall be allowed a credit
 equal to the product (or pro rata share of the product, in the case of a
 member of a partnership) of ten percent and the amount of wages or sala-
 ries  paid to individuals directly employed (excluding those employed as
 writers, directors, music directors, producers and performers, including
 background actors with no scripted lines) by a qualified film production
 company or a qualified independent film production company for  services
 performed  by those individuals in one of the counties specified in this
 paragraph in connection with a qualified film with a minimum  budget  of
 five  hundred  thousand dollars. For purposes of this additional credit,
 the services must be performed in one or more of the following counties:
 Albany, Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung,
 Chenango,  Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex,
 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
 Livingston, Madison,  Monroe,  Montgomery,  Niagara,  Oneida,  Onondaga,
 Ontario,  Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga,
 Schenectady,  Schoharie,  Schuyler,  Seneca,  St.   Lawrence,   Steuben,
 [Suffolk,] Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne,
 Wyoming,  or Yates. The aggregate amount of tax credits allowed pursuant
 to the authority of this paragraph shall be five  million  dollars  each
 year  during the period two thousand fifteen through two thousand [nine-
 teen] TWENTY-TWO of the annual allocation made available to the  program
 pursuant  to  paragraph  four  of  subdivision (e) of this section. Such
 aggregate amount of credits shall be allocated by the governor's  office
 for  motion  picture and television development among taxpayers in order
 of priority based upon the date of filing an application for  allocation
 of film production credit with such office. If the total amount of allo-
 cated  credits  applied for under this paragraph in any year exceeds the
 aggregate amount of tax credits allowed for such year under  this  para-
 graph,  such  excess  shall be treated as having been applied for on the
 first day of the next year. If the total amount of allocated tax credits
 applied for under this paragraph at the conclusion of any year  is  less
 than five million dollars, the remainder shall be treated as part of the
 annual  allocation  made  available to the program pursuant to paragraph
 four of subdivision (e) of this section. However, in no  event  may  the
 total  of  the  credits  allocated  under this paragraph and the credits
 allocated under paragraph five of subdivision (a) of section  thirty-one
 of this article exceed five million dollars in any year during the peri-
 od two thousand fifteen through two thousand [nineteen] TWENTY-TWO.
   §  2.  Paragraph 4 of subdivision (e) of section 24 of the tax law, as
 amended by section 1-a of part P of chapter 60 of the laws of  2016,  is
 amended to read as follows:
   (4) Additional pool 2 - The aggregate amount of tax credits allowed in
 subdivision (a) of this section shall be increased by an additional four
 hundred twenty million dollars in each year starting in two thousand ten
 through  two  thousand  [nineteen]  TWENTY-TWO  provided  however, seven
 million dollars of the annual allocation  shall  be  available  for  the
 empire  state film post production credit pursuant to section thirty-one
 of this article in two thousand thirteen and two thousand  fourteen  and
 twenty-five  million dollars of the annual allocation shall be available
 for the empire state film post production  credit  pursuant  to  section
 thirty-one of this article in each year starting in two thousand fifteen
 through  two  thousand [nineteen] TWENTY-TWO. This amount shall be allo-
 cated by the governor's office for motion picture and television  devel-
 opment  among  taxpayers  in  accordance  with  subdivision  (a) of this
 section. If the commissioner of economic development determines that the

 S. 2009                            41                            A. 3009
 
 aggregate amount of tax credits available from additional pool 2 for the
 empire state film production tax credit have been previously  allocated,
 and  determines  that  the pending applications from eligible applicants
 for the empire state film post production tax credit pursuant to section
 thirty-one  of  this  article  is insufficient to utilize the balance of
 unallocated empire state film post  production  tax  credits  from  such
 pool,  the  remainder,  after  such pending applications are considered,
 shall be made available for allocation in  the  empire  state  film  tax
 credit  pursuant  to  this  section,  subdivision  twenty of section two
 hundred ten-B and subsection (gg) of section six  hundred  six  of  this
 chapter.  Also,  if  the commissioner of economic development determines
 that the aggregate amount of tax credits available from additional  pool
 2  for the empire state film post production tax credit have been previ-
 ously allocated, and  determines  that  the  pending  applications  from
 eligible  applicants  for  the  empire  state film production tax credit
 pursuant to this section is insufficient to utilize the balance of unal-
 located film production tax credits from such pool, then all or part  of
 the  remainder, after such pending applications are considered, shall be
 made available for allocation for the empire state film post  production
 credit  pursuant  to this section, subdivision thirty-two of section two
 hundred ten-B and subsection (qq) of section six  hundred  six  of  this
 chapter.  The governor's office for motion picture and television devel-
 opment must notify taxpayers of their allocation year  and  include  the
 allocation  year on the certificate of tax credit. Taxpayers eligible to
 claim a credit must report the allocation year directly on their  empire
 state  film production credit tax form for each year a credit is claimed
 and include a copy of the certificate with their tax return. In the case
 of a qualified film that receives  funds  from  additional  pool  2,  no
 empire state film production credit shall be claimed before the later of
 the  taxable  year  the production of the qualified film is complete, or
 the taxable year immediately following the allocation year for which the
 film has been allocated credit  by  the  governor's  office  for  motion
 picture and television development.
   §  3.  Paragraph 6 of subdivision (a) of section 31 of the tax law, as
 amended by section 2 of part JJ of chapter 59 of the laws  of  2014,  is
 amended to read as follows:
   (6)  For  the  period two thousand fifteen through two thousand [nine-
 teen] TWENTY-TWO, in addition to the amount  of  credit  established  in
 paragraph  two  of  subdivision (a) of this section, a taxpayer shall be
 allowed a credit equal to the product (or pro rata share of the product,
 in the case of a member of a partnership) of ten percent and the  amount
 of  wages  or  salaries paid to individuals directly employed (excluding
 those employed as writers, directors,  music  directors,  producers  and
 performers,  including  background  actors  with  no scripted lines) for
 services performed by those individuals in one of the counties specified
 in this paragraph in connection with the post production work on a qual-
 ified film with a minimum budget of five hundred thousand dollars  at  a
 qualified post production facility in one of the counties listed in this
 paragraph.  For purposes of this additional credit, the services must be
 performed in one or more of the following  counties:  Albany,  Allegany,
 Broome,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung, Chenango, Clinton,
 Cortland, Delaware, Erie, Essex, Franklin,  Fulton,  Genesee,  Hamilton,
 Herkimer,  Jefferson,  Lewis,  Livingston,  Madison, Monroe, Montgomery,
 Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego,  Schenecta-
 dy, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins,
 Wayne,  Wyoming,  or  Yates. The aggregate amount of tax credits allowed

 S. 2009                            42                            A. 3009
 
 pursuant to the authority  of  this  paragraph  shall  be  five  million
 dollars  each  year  during  the period two thousand fifteen through two
 thousand [nineteen] TWENTY-TWO of the annual allocation  made  available
 to  the  empire  state film post production credit pursuant to paragraph
 four of subdivision (e) of section twenty-four  of  this  article.  Such
 aggregate  amount of credits shall be allocated by the governor's office
 for motion picture and television development among taxpayers  in  order
 of  priority based upon the date of filing an application for allocation
 of post production credit with such office. If the total amount of allo-
 cated credits applied for under this paragraph in any year  exceeds  the
 aggregate  amount  of tax credits allowed for such year under this para-
 graph, such excess shall be treated as having been applied  for  on  the
 first day of the next year. If the total amount of allocated tax credits
 applied  for  under this paragraph at the conclusion of any year is less
 than five million dollars, the remainder shall be treated as part of the
 annual allocation for two  thousand  seventeen  made  available  to  the
 empire  state  film post production credit pursuant to paragraph four of
 subdivision (e) of section twenty-four of this article. However,  in  no
 event  may  the  total of the credits allocated under this paragraph and
 the credits allocated under paragraph five of subdivision (a) of section
 twenty-four of this article exceed five  million  dollars  in  any  year
 during  the  period two thousand fifteen through two thousand [nineteen]
 TWENTY-TWO.
   § 4. This act shall take effect immediately.
 
                                  PART N
 
   Section 1. The section heading and subdivisions (a), (d)  and  (e)  of
 section  25-a of the labor law, the section heading and subdivisions (d)
 and (e) as amended by section 1 of part AA of chapter 56 of the laws  of
 2015  and  subdivision (a) as amended by section 1 of part VV of chapter
 60 of the laws of 2016, are amended to read as follows:
   Power to administer the urban youth jobs program tax credit.
   (a) The commissioner is authorized to  establish  and  administer  the
 program  established  under  this  section  to provide tax incentives to
 employers for employing at risk youth in part-time and  full-time  posi-
 tions.  There  will  be  [five]  TEN  distinct  pools of tax incentives.
 Program one will cover tax incentives allocated for two thousand  twelve
 and  two  thousand thirteen. Program two will cover tax incentives allo-
 cated in two thousand fourteen. Program three will cover tax  incentives
 allocated  in  two  thousand fifteen. Program four will cover tax incen-
 tives allocated in two thousand sixteen. Program  five  will  cover  tax
 incentives  allocated in two thousand seventeen.  PROGRAM SIX WILL COVER
 TAX INCENTIVES ALLOCATED IN TWO THOUSAND EIGHTEEN.   PROGRAM SEVEN  WILL
 COVER  TAX INCENTIVES ALLOCATED IN TWO THOUSAND NINETEEN.  PROGRAM EIGHT
 WILL COVER TAX INCENTIVES ALLOCATED IN TWO  THOUSAND  TWENTY.    PROGRAM
 NINE  WILL  COVER  TAX  INCENTIVES ALLOCATED IN TWO THOUSAND TWENTY-ONE.
 PROGRAM TEN WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND  TWENTY-
 TWO.  The  commissioner  is  authorized  to  allocate  up to twenty-five
 million dollars of tax credits under program one, ten million dollars of
 tax credits under program two, twenty million  dollars  of  tax  credits
 under program three, and fifty million dollars of tax credits under each
 [of programs four and five] SUBSEQUENT PROGRAM.
   (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

 S. 2009                            43                            A. 3009
 
 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,
 [and] after January first, two thousand  seventeen  but  no  later  than
 November thirtieth, two thousand seventeen for program five, AFTER JANU-
 ARY  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  NOVEMBER  THIRTIETH,  TWO THOUSAND TWENTY FOR PROGRAM EIGHT, AFTER
 JANUARY FIRST, TWO THOUSAND TWENTY-ONE BUT NO LATER THAN NOVEMBER  THIR-
 TIETH,  TWO  THOUSAND  TWENTY-ONE  FOR  PROGRAM  NINE, AND AFTER JANUARY
 FIRST, TWO THOUSAND TWENTY-TWO BUT NO LATER THAN NOVEMBER THIRTIETH, TWO
 THOUSAND TWENTY-TWO FOR PROGRAM TEN.  The qualified employees must start
 their employment 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 thousand fifteen for program three, on or after Janu-
 ary first, two thousand sixteen but no later than December thirty-first,
 two thousand sixteen for program four, [and] on or after January  first,
 two  thousand  seventeen  but  no  later than December thirty-first, two
 thousand seventeen for program five, AFTER JANUARY FIRST,  TWO  THOUSAND
 EIGHTEEN  BUT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN
 FOR PROGRAM SIX, AFTER JANUARY FIRST, TWO THOUSAND NINETEEN BUT NO LATER
 THAN DECEMBER THIRTY-FIRST, TWO THOUSAND  NINETEEN  FOR  PROGRAM  SEVEN,
 AFTER  JANUARY  FIRST,  TWO  THOUSAND  TWENTY BUT NO LATER THAN DECEMBER
 THIRTY-FIRST, TWO THOUSAND  TWENTY  FOR  PROGRAM  EIGHT,  AFTER  JANUARY
 FIRST,  TWO THOUSAND TWENTY-ONE BUT NO LATER THAN DECEMBER THIRTY-FIRST,
 TWO THOUSAND TWENTY-ONE FOR PROGRAM NINE, AND 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.  Any  regulations that the commissioner determines are neces-
 sary 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  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.
   (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 certificate of eligibility that establishes the  employer
 as  a  qualified  employer. The certificate of eligibility shall specify
 the maximum amount of tax credit that the employer will  be  allowed  to
 claim AND THE PROGRAM YEAR UNDER WHICH IT CAN BE CLAIMED.

 S. 2009                            44                            A. 3009
 
   § 2. The subdivision heading 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:
   [Urban] NEW YORK youth jobs program tax credit.
   §  3.  The subsection heading 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:
   [Urban] NEW YORK youth jobs program tax credit.
   § 4. Clause (xxxiii) of subparagraph (B) of paragraph 1 of  subsection
 (i) of section 606 of the tax law, as amended by section 4 of part AA of
 chapter 56 of the laws of 2015, is amended to read as follows:
 (xxxiii) [Urban] NEW YORK youth      Amount of credit under
 jobs program tax credit              subdivision thirty-six
                                      of section two hundred ten-B
   § 5. This act shall take effect immediately.
 
                                  PART O
 
   Section  1.  Subdivision 6 of section 187-b of the tax law, as amended
 by section 1 of part G of chapter 59 of the laws of 2013, is amended  to
 read as follows:
   6.  Termination. The credit allowed by subdivision two of this section
 shall not apply in taxable years beginning after December  thirty-first,
 two thousand [seventeen] TWENTY-TWO.
   §  2. Paragraph (f) of subdivision 30 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:
   (f)  Termination. The credit allowed by paragraph (b) of this subdivi-
 sion shall not apply in taxable years beginning after  December  thirty-
 first, two thousand [seventeen] TWENTY-TWO.
   §  3.  Paragraph 6 of subsection (p) of section 606 of the tax law, as
 amended by section 3 of part G of chapter 59 of the  laws  of  2013,  is
 amended to read as follows:
   (6) Termination. The credit allowed by this subsection shall not apply
 in  taxable  years  beginning  after December thirty-first, two thousand
 [seventeen] TWENTY-TWO.
   § 4. This act shall take effect immediately.
 
                                  PART P
 
   Section 1. Subparagraph (i) of  paragraph  (b)  of  subdivision  1  of
 section  210-B  of  the  tax  law, as amended by section 31 of part T of
 chapter 59 of the laws of 2015, is amended to read as follows:
   (i) A credit shall be allowed under this subdivision with  respect  to
 tangible personal property and other tangible property, including build-
 ings  and  structural  components  of  buildings, which are: depreciable
 pursuant to section one hundred  sixty-seven  of  the  internal  revenue
 code, have a useful life of four years or more, are acquired by purchase
 as  defined  in  section  one  hundred  seventy-nine (d) of the internal
 revenue code, have a situs in this state and are (A) principally used by
 the taxpayer in the production of goods  by  manufacturing,  processing,
 assembling,  refining,  mining, extracting, farming, agriculture, horti-
 culture, floriculture, viticulture or commercial fishing, (B) industrial
 waste treatment facilities or air pollution control facilities, used  in
 the taxpayer's trade or business, (C) research and development property,
 or  (D)  principally used in the ordinary course of the taxpayer's trade

 S. 2009                            45                            A. 3009
 
 or business as a broker or dealer in connection  with  the  purchase  or
 sale  (which  shall include but not be limited to the issuance, entering
 into, assumption,  offset,  assignment,  termination,  or  transfer)  of
 stocks,  bonds  or  other  securities as defined in section four hundred
 seventy-five (c)(2) of the Internal Revenue Code, or of  commodities  as
 defined in section four hundred seventy-five (e) of the Internal Revenue
 Code,  (E)  principally  used  in  the ordinary course of the taxpayer's
 trade or business of providing investment advisory services for a  regu-
 lated  investment  company as defined in section eight hundred fifty-one
 of the Internal Revenue Code, or lending, loan arrangement or loan orig-
 ination services to customers in connection with the  purchase  or  sale
 (which  shall include but not be limited to the issuance, entering into,
 assumption, offset, assignment, termination, or transfer) of  securities
 as  defined  in section four hundred seventy-five (c)(2) of the Internal
 Revenue Code, (F) principally used in the ordinary course of the taxpay-
 er's business  as  an  exchange  registered  as  a  national  securities
 exchange  within the meaning of sections 3(a)(1) and 6(a) of the Securi-
 ties Exchange Act of 1934 or a board of trade as defined in subparagraph
 one of paragraph (a) of section fourteen hundred ten of the not-for-pro-
 fit corporation law or as an entity that is wholly owned by one or  more
 such  national securities exchanges or boards of trade and that provides
 automation or technical services thereto, or (G) principally used  as  a
 qualified  film  production facility including qualified film production
 facilities having a situs in an empire zone designated as such  pursuant
 to  article  eighteen-B of the general municipal law, where the taxpayer
 is providing three or more services to  any  qualified  film  production
 company using the facility, including such services as a studio lighting
 grid,  lighting  and grip equipment, multi-line phone service, broadband
 information technology access,  industrial  scale  electrical  capacity,
 food  services,  security  services,  and  heating,  ventilation and air
 conditioning. For purposes of clauses (D), (E) and (F) of this  subpara-
 graph,  property  purchased  by  a  taxpayer affiliated with a regulated
 broker,  dealer,  registered  investment  advisor,  national  securities
 exchange  or  board of trade, is allowed a credit under this subdivision
 if the property is used by  its  affiliated  regulated  broker,  dealer,
 registered  investment advisor, national securities exchange or board of
 trade in accordance with this subdivision. For purposes  of  determining
 if  the property is principally used in qualifying uses, the uses by the
 taxpayer described in clauses (D) and (E) of this  subparagraph  may  be
 aggregated.  In addition, the uses by the taxpayer, its affiliated regu-
 lated broker, dealer and registered investment advisor under  either  or
 both  of  those clauses may be aggregated. Provided, however, a taxpayer
 shall not be allowed the credit provided by clauses (D), (E) and (F)  of
 this  subparagraph unless the property is first placed in service before
 October first, two thousand fifteen and (i) eighty percent  or  more  of
 the  employees  performing  the  administrative  and  support  functions
 resulting from or related to the qualifying uses of such  equipment  are
 located  in  this  state  or  (ii)  the average number of employees that
 perform the administrative  and  support  functions  resulting  from  or
 related to the qualifying uses of such equipment and are located in this
 state  during  the taxable year for which the credit is claimed is equal
 to or greater than ninety-five percent of the average number of  employ-
 ees  that  perform  these functions and are located in this state during
 the thirty-six months immediately preceding the year for which the cred-
 it is claimed, or (iii) the number of employees located  in  this  state
 during  the  taxable year for which the credit is claimed is equal to or

 S. 2009                            46                            A. 3009
 
 greater than ninety percent of the number of employees located  in  this
 state on December thirty-first, nineteen hundred ninety-eight or, if the
 taxpayer  was  not  a calendar year taxpayer in nineteen hundred ninety-
 eight,  the  last  day  of  its first taxable year ending after December
 thirty-first, nineteen hundred ninety-eight.  If  the  taxpayer  becomes
 subject  to  tax in this state after the taxable year beginning in nine-
 teen hundred ninety-eight, then the taxpayer is not required to  satisfy
 the  employment test provided in the preceding sentence of this subpara-
 graph for its first taxable year. For purposes of clause (iii)  of  this
 subparagraph  the employment test will be based on the number of employ-
 ees located in this state on the last day of the first taxable year  the
 taxpayer  is  subject  to tax in this state. If the uses of the property
 must be aggregated to determine whether the property is principally used
 in qualifying uses, then either each affiliate using the  property  must
 satisfy  this  employment test or this employment test must be satisfied
 through the aggregation of the employees of the taxpayer, its affiliated
 regulated broker, dealer, and registered investment  adviser  using  the
 property.  For purposes of [this subdivision, the term "goods" shall not
 include electricity] CLAUSE (A) OF THIS SUBPARAGRAPH, TANGIBLE  PERSONAL
 PROPERTY  AND OTHER TANGIBLE PROPERTY SHALL NOT INCLUDE PROPERTY PRINCI-
 PALLY USED BY THE TAXPAYER (I) IN  THE  PRODUCTION  OR  DISTRIBUTION  OF
 ELECTRICITY,  NATURAL  GAS,  STEAM, OR WATER DELIVERED THROUGH PIPES AND
 MAINS, OR (II) IN THE CREATION, PRODUCTION OR REPRODUCTION, IN ANY MEDI-
 UM, OF A FILM, VISUAL OR AUDIO RECORDING, OR COMMERCIAL, WHERE THE COSTS
 ASSOCIATED WITH SUCH CREATION, PRODUCTION OR REPRODUCTION  ARE  INCURRED
 OUTSIDE  OF THIS STATE, OR IN THE DUPLICATION, FOR PURPOSES OF BROADCAST
 IN ANY MEDIUM, OF A MASTER OF A FILM,  VISUAL  OR  AUDIO  RECORDING,  OR
 COMMERCIAL,  WHERE  THE  COSTS  ASSOCIATED  WITH  SUCH  DUPLICATION  ARE
 INCURRED OUTSIDE OF THIS STATE.
   § 2. Subparagraph (A) of paragraph 2 of subsection (a) of section  606
 of  the  tax  law,  as  amended  by  chapter 637 of the laws of 2008, is
 amended to read as follows:
   (A) A credit shall be allowed under this subsection  with  respect  to
 tangible personal property and other tangible property, including build-
 ings  and  structural  components  of  buildings, which are: depreciable
 pursuant to section one hundred  sixty-seven  of  the  internal  revenue
 code, have a useful life of four years or more, are acquired by purchase
 as  defined  in  section  one  hundred  seventy-nine (d) of the internal
 revenue code, have a situs in this state and are (i) principally used by
 the taxpayer in the production of goods  by  manufacturing,  processing,
 assembling,  refining,  mining, extracting, farming, agriculture, horti-
 culture, floriculture, viticulture or commercial  fishing,  (ii)  indus-
 trial  waste  treatment  facilities or air pollution control facilities,
 used in the taxpayer's trade or business, (iii) research and development
 property, (iv) principally used in the ordinary course of the taxpayer's
 trade or business as a broker or dealer in connection with the  purchase
 or  sale (which shall include but not be limited to the issuance, enter-
 ing into, assumption, offset, assignment, termination, or  transfer)  of
 stocks,  bonds  or  other  securities as defined in section four hundred
 seventy-five (c)(2) of the Internal Revenue Code, or of  commodities  as
 defined  in section 475(e) of the Internal Revenue Code, (v) principally
 used in the ordinary course of  the  taxpayer's  trade  or  business  of
 providing investment advisory services for a regulated investment compa-
 ny as defined in section eight hundred fifty-one of the Internal Revenue
 Code,  or  lending,  loan  arrangement  or  loan origination services to
 customers in connection with the purchase or sale (which  shall  include

 S. 2009                            47                            A. 3009
 
 but  not  be limited to the issuance, entering into, assumption, offset,
 assignment, termination,  or  transfer)  of  securities  as  defined  in
 section  four  hundred seventy-five (c)(2) of the Internal Revenue Code,
 or (vi) principally used as a qualified film production facility includ-
 ing  qualified  film  production  facilities having a situs in an empire
 zone designated as such pursuant to article eighteen-B  of  the  general
 municipal law, where the taxpayer is providing three or more services to
 any qualified film production company using the facility, including such
 services  as a studio lighting grid, lighting and grip equipment, multi-
 line phone service, broadband information technology access,  industrial
 scale  electrical  capacity, food services, security services, and heat-
 ing, ventilation and air conditioning. For purposes of clauses (iv)  and
 (v)  of  this  subparagraph, property purchased by a taxpayer affiliated
 with a regulated broker, dealer, or  registered  investment  adviser  is
 allowed  a  credit  under this subsection if the property is used by its
 affiliated regulated broker, dealer or registered investment adviser  in
 accordance  with  this  subsection.  For  purposes of determining if the
 property is principally used in qualifying uses, the uses by the taxpay-
 er described in clauses (iv) and (v) of this subparagraph may be  aggre-
 gated.  In  addition, the uses by the taxpayer, its affiliated regulated
 broker, dealer and registered investment adviser under either or both of
 those clauses may be aggregated. Provided, however, a taxpayer shall not
 be allowed the credit provided by clauses (iv) and (v) of this  subpara-
 graph  unless (I) eighty percent or more of the employees performing the
 administrative and support functions resulting from or  related  to  the
 qualifying uses of such equipment are located in this state, or (II) the
 average  number of employees that perform the administrative and support
 functions resulting from or related  to  the  qualifying  uses  of  such
 equipment  and  are  located  in  this state during the taxable year for
 which the credit is claimed is equal  to  or  greater  than  ninety-five
 percent  of the average number of employees that perform these functions
 and are located in this state during the thirty-six  months  immediately
 preceding  the year for which the credit is claimed, or (III) the number
 of employees located in this state during the taxable year for which the
 credit is claimed is equal to or greater  than  ninety  percent  of  the
 number  of  employees  located  in  this state on December thirty-first,
 nineteen hundred ninety-eight or, if the taxpayer  was  not  a  calendar
 year  taxpayer  in  nineteen  hundred  ninety-eight, the last day of its
 first taxable year ending after December thirty-first, nineteen  hundred
 ninety-eight. If the taxpayer becomes subject to tax in this state after
 the  taxable  year  beginning in nineteen hundred ninety-eight, then the
 taxpayer is not required to satisfy the employment test provided in  the
 preceding  sentence of this subparagraph for its first taxable year. For
 the purposes of clause (III) of this subparagraph  the  employment  test
 will  be  based  on the number of employees located in this state on the
 last day of the first taxable year the taxpayer is  subject  to  tax  in
 this  state. If the uses of the property must be aggregated to determine
 whether the property is principally used in qualifying uses, then either
 each affiliate using the property must satisfy this employment  test  or
 this  employment  test  must be satisfied through the aggregation of the
 employees of the taxpayer, its affiliated regulated broker, dealer,  and
 registered  investment adviser using the property. For purposes of [this
 subsection, the term "goods" shall not include electricity]  CLAUSE  (I)
 OF  THIS  SUBPARAGRAPH,  TANGIBLE  PERSONAL  PROPERTY AND OTHER TANGIBLE
 PROPERTY SHALL NOT INCLUDE PROPERTY PRINCIPALLY USED BY THE TAXPAYER (A)
 IN THE PRODUCTION OR DISTRIBUTION OF ELECTRICITY, NATURAL GAS, STEAM, OR

 S. 2009                            48                            A. 3009
 
 WATER DELIVERED THROUGH  PIPES  AND  MAINS,  OR  (B)  IN  THE  CREATION,
 PRODUCTION  OR  REPRODUCTION,  IN ANY MEDIUM, OF A FILM, VISUAL OR AUDIO
 RECORDING, OR COMMERCIAL, WHERE THE COSTS ASSOCIATED WITH SUCH CREATION,
 PRODUCTION OR REPRODUCTION ARE INCURRED OUTSIDE OF THIS STATE, OR IN THE
 DUPLICATION,  FOR  PURPOSES OF BROADCAST IN ANY MEDIUM, OF A MASTER OF A
 FILM, VISUAL OR AUDIO RECORDING, OR COMMERCIAL, WHERE THE COSTS  ASSOCI-
 ATED WITH SUCH DUPLICATION ARE INCURRED OUTSIDE OF THIS STATE.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART Q
 
   Section 1. Legislative findings. The legislature finds it necessary to
 revise  a  decision of the tax appeals tribunal that disturbed the long-
 standing policy of the department of taxation and  finance  that  single
 member limited liability companies that are treated as disregarded enti-
 ties  for  federal  income  tax purposes also would be treated as disre-
 garded entities for purposes of determining eligibility of the owners of
 such entities for tax credits allowed  under  article  9,  9-A,  22,  32
 (prior  to  its  repeal)  or  33 of the tax law. The decision of the tax
 appeals tribunal, if allowed to stand, will result in the denial of  tax
 credits,  such  as  empire  zone  tax credits, to taxpayers who in prior
 years received those credits.
   § 2. The tax law is amended by adding a new  section  43  to  read  as
 follows:
   §  43.  SINGLE  MEMBER LIMITED LIABILITY COMPANIES AND ELIGIBILITY FOR
 TAX CREDITS. A LIMITED LIABILITY COMPANY THAT HAS A SINGLE MEMBER AND IS
 DISREGARDED AS AN ENTITY SEPARATE FROM ITS OWNER FOR FEDERAL INCOME  TAX
 PURPOSES  (WITHOUT REFERENCE TO ANY SPECIAL RULES RELATED TO THE IMPOSI-
 TION OF CERTAIN FEDERAL TAXES, INCLUDING  BUT  NOT  LIMITED  TO  CERTAIN
 EMPLOYMENT  AND EXCISE TAXES) SHALL BE DISREGARDED AS AN ENTITY SEPARATE
 FROM ITS OWNER FOR PURPOSES OF DETERMINING WHETHER OR NOT  THE  TAXPAYER
 THAT  IS  THE  SINGLE MEMBER OF SUCH LIMITED LIABILITY COMPANY SATISFIES
 THE REQUIREMENTS TO BE ELIGIBLE FOR ANY TAX CREDIT ALLOWED UNDER ARTICLE
 NINE, NINE-A, TWENTY-TWO OR THIRTY-THREE  OF  THIS  CHAPTER  OR  ALLOWED
 UNDER  ARTICLE  THIRTY-TWO  OF  THIS CHAPTER PRIOR TO THE REPEAL OF SUCH
 ARTICLE. SUCH REQUIREMENTS, INCLUDING BUT NOT LIMITED TO  ANY  NECESSARY
 CERTIFICATION, EMPLOYMENT OR INVESTMENT THRESHOLDS, PAYMENT OBLIGATIONS,
 AND  ANY  TIME  PERIOD FOR ELIGIBILITY, SHALL BE IMPOSED ON THE TAXPAYER
 AND THE DETERMINATION OF WHETHER OR  NOT  SUCH  REQUIREMENTS  HAVE  BEEN
 SATISFIED  AND  THE  COMPUTATION  OF THE CREDIT SHALL BE MADE BY DEEMING
 SUCH TAXPAYER AND SUCH LIMITED LIABILITY COMPANY TO BE A SINGLE  ENTITY.
 IF  THE TAXPAYER IS THE SINGLE MEMBER OF MORE THAN ONE LIMITED LIABILITY
 COMPANY THAT IS DISREGARDED AS AN ENTITY SEPARATE FROM  ITS  OWNER,  THE
 DETERMINATION  OF WHETHER OR NOT THE REQUIREMENTS TO BE ELIGIBLE FOR ANY
 TAX CREDIT ALLOWED UNDER ARTICLE NINE,  NINE-A,  TWENTY-TWO  OR  THIRTY-
 THREE  OF THIS CHAPTER OR ALLOWED UNDER ARTICLE THIRTY-TWO OF THIS CHAP-
 TER PRIOR TO THE REPEAL OF SUCH ARTICLE  HAVE  BEEN  SATISFIED  AND  THE
 COMPUTATION  OF  THE  CREDIT  SHALL BE MADE BY DEEMING SUCH TAXPAYER AND
 SUCH LIMITED LIABILITY COMPANIES TO BE A SINGLE ENTITY.
   § 3. This act shall take effect immediately;  provided  however,  that
 section  43  of  the tax law, as added by section two of this act, shall
 apply to all taxable years for which  the  statute  of  limitations  for
 seeking a refund or assessing additional tax is still open.
 
                                  PART R

 S. 2009                            49                            A. 3009
 
   Section  1.  Subparagraph  (B)  of  paragraph  1  of subsection (a) of
 section 601 of the tax law is REPEALED and a  new  subparagraph  (B)  is
 added to read as follows:
   (B)(I)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND EIGHTEEN THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE
                                       INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                       $27,900
 OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 6.33% OF EXCESS OVER
                                       $43,000
 OVER $161,550 BUT NOT OVER $323,200   $9,597 PLUS 6.57% OF EXCESS OVER
                                       $161,550
 OVER $323,200 BUT NOT OVER $2,155,350 $20,218 PLUS 6.85% OF EXCESS OVER
                                       $323,200
 OVER $2,155,350                       $145,720 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   (II) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE  FOLLOW-
 ING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE
                                       INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                       $27,900
 OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 6.21% OF EXCESS OVER
                                       $43,000
 OVER $161,550 BUT NOT OVER $323,200   $9,455 PLUS 6.49% OF EXCESS OVER
                                       $161,550
 OVER $323,200 BUT NOT OVER $2,155,350 $19,946 PLUS 6.85% OF EXCESS OVER
                                       $323,200
 OVER $2,155,350                       $145,448 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   (III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
 RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                       $27,900
 OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 6.09% OF EXCESS OVER
                                       $43,000
 OVER $161,550 BUT NOT OVER $323,200   $9,313 PLUS 6.41% OF EXCESS OVER
                                       $161,550
 OVER $323,200 BUT NOT OVER $2,155,350 $19,674 PLUS 6.85% OF EXCESS OVER

 S. 2009                            50                            A. 3009
 
                                       $323,200
 OVER $2,155,350                       $145,177 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   (IV)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND TWENTY-ONE THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                       $27,900
 OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 5.97% OF EXCESS OVER
                                       $43,000
 OVER $161,550 BUT NOT OVER $323,200   $9,170 PLUS 6.33% OF EXCESS OVER
                                       $161,550
 OVER $323,200                         $19,403 PLUS 6.85% OF EXCESS OVER
                                       $323,200
   (V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
 ING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.85% OF EXCESS OVER
                                       $27,900
 OVER $161,550 BUT NOT OVER $323,200   $9,021 PLUS 6.25% OF EXCESS OVER
                                       $161,550
 OVER $323,200                         $19,124 PLUS 6.85% OF EXCESS OVER
                                       $323,200
   (VI) FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND  TWENTY-THREE  THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.73% OF EXCESS OVER
                                       $27,900
 OVER $161,550 BUT NOT OVER $323,200   $8,860 PLUS 6.17% OF EXCESS OVER
                                       $161,550
 OVER $323,200                         $18,834 PLUS 6.85% OF EXCESS OVER
                                       $323,200
   (VII)  FOR  TAXABLE  YEARS  BEGINNING  IN TWO THOUSAND TWENTY-FOUR THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.61% OF EXCESS OVER

 S. 2009                            51                            A. 3009
 
                                       $27,900
 OVER $161,550 BUT NOT OVER $323,200   $8,700 PLUS 6.09% OF EXCESS OVER
                                       $161,550
 OVER $323,200                         $18,544 PLUS 6.85% OF EXCESS OVER
                                       $323,200
   (VIII)  FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.5% OF EXCESS OVER
                                       $27,900
 OVER $161,550 BUT NOT OVER $323,200   $8,553 PLUS 6.00% OF EXCESS OVER
                                       $161,550
 OVER $323,200                         $18,252 PLUS 6.85% OF EXCESS OVER
                                       $323,200
   § 2. Subparagraph (B) of paragraph 1 of subsection (b) of section  601
 of  the  tax law is REPEALED and a new subparagraph (B) is added to read
 as follows:
   (B)(I) FOR TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND  EIGHTEEN  THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER $20,900
 OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 6.33% OF EXCESS OVER
                                       $32,200
 OVER $107,650 BUT NOT OVER $269,300   $6,344 PLUS 6.57% OF EXCESS OVER
                                       $107,650
 OVER $269,300 BUT NOT OVER $1,616,450 $16,964 PLUS 6.85% OF EXCESS OVER
                                       $269,300
 OVER $1,616,450                       $109,244 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   (II)  FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE FOLLOW-
 ING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER $20,900
 OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 6.21% OF EXCESS OVER
                                       $32,200
 OVER $107,650 BUT NOT OVER $269,300   $6,253 PLUS 6.49% OF EXCESS OVER
                                       $107,650
 OVER $269,300 BUT NOT OVER $1,616,450 $16,744 PLUS 6.85% OF EXCESS OVER
                                       $269,300
 OVER $1,616,450                       $109,024 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   (III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
 RATES SHALL APPLY:

 S. 2009                            52                            A. 3009
 
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER $20,900
 OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 6.09% OF EXCESS OVER
                                       $32,200
 OVER $107,650 BUT NOT OVER $269,300   $6,162 PLUS 6.41% OF EXCESS OVER
                                       $107,650
 OVER $269,300 BUT NOT OVER $1,616,450 $16,524 PLUS 6.85% OF EXCESS OVER
                                       $269,300
 OVER $1,616,450                       $108,804 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   (IV)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND TWENTY-ONE THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                       $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER
                                       $20,900
 OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 5.97% OF EXCESS OVER
                                       $32,200
 OVER $107,650 BUT NOT OVER $269,300   $6,072 PLUS 6.33% OF EXCESS OVER
                                       $107,650
 OVER $269,300                         $16,304 PLUS 6.85% OF EXCESS OVER
                                       $269,300
   (V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
 ING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                       $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.85% OF EXCESS OVER
                                       $20,900
 OVER $107,650 BUT NOT OVER $269,300   $5,976 PLUS 6.25% OF EXCESS OVER
                                       $107,650
 OVER $269,300                         $16,079 PLUS 6.85% OF EXCESS OVER
                                       $269,300
   (VI) FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND  TWENTY-THREE  THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                       $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.73% OF EXCESS OVER
                                       $20,900
 OVER $107,650 BUT NOT OVER $269,300   $5,872 PLUS 6.17% OF EXCESS OVER

 S. 2009                            53                            A. 3009
 
                                       $107,650
 OVER $269,300                         $15,845 PLUS 6.85% OF EXCESS OVER
                                       $269,300
   (VII)  FOR  TAXABLE  YEARS  BEGINNING  IN TWO THOUSAND TWENTY-FOUR THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                       $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.61% OF EXCESS OVER
                                       $20,900
 OVER $107,650 BUT NOT OVER $269,300   $5,768 PLUS 6.09% OF EXCESS OVER
                                       $107,650
 OVER $269,300                         $15,612 PLUS 6.85% OF EXCESS OVER
                                       $269,300
   (VIII) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR  THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                       $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.5% OF EXCESS OVER
                                       $20,900
 OVER $107,650 BUT NOT OVER $269,300   $5,672 PLUS 6.00% OF EXCESS OVER
                                       $107,650
 OVER $269,300                         $15,371 PLUS 6.85% OF EXCESS OVER
                                       $269,300
   §  3. Subparagraph (B) of paragraph 1 of subsection (c) of section 601
 of the tax law is REPEALED and a new subparagraph (B) is added  to  read
 as follows:
   (B)(I)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND EIGHTEEN THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                       $13,900
 OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 6.33% OF EXCESS OVER
                                       $21,400
 OVER $80,650 BUT NOT OVER $215,400    $4,793 PLUS 6.57% OF EXCESS OVER
                                       $80,650
 OVER $215,400 BUT NOT OVER $1,077,550 $13,646 PLUS 6.85% OF EXCESS OVER
                                       $215,400
 OVER $1,077,550                       $72,703 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   (II) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE  FOLLOW-
 ING RATES SHALL APPLY:

 S. 2009                            54                            A. 3009
 
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                       $13,900
 OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 6.21% OF EXCESS OVER
                                       $21,400
 OVER $80,650 BUT NOT OVER $215,400    $4,721 PLUS 6.49% OF EXCESS OVER
                                       $80,650
 OVER $215,400 BUT NOT OVER $1,077,550 $13,467 PLUS 6.85% OF EXCESS OVER
                                       $215,400
 OVER $1,077,550                       $72,524 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   (III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
 RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                       $13,900
 OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 6.09% OF EXCESS OVER
                                       $21,400
 OVER $80,650 BUT NOT OVER $215,400    $4,650 PLUS 6.41% OF EXCESS OVER
                                       $80,650
 OVER $215,400 BUT NOT OVER $1,077,550 $13,288 PLUS 6.85% OF EXCESS OVER
                                       $215,400
 OVER $1,077,550                       $72,345 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   (IV)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND TWENTY-ONE THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                       $13,900
 OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 5.97% OF EXCESS OVER
                                       $21,400
 OVER $80,650 BUT NOT OVER $215,400    $4,579 PLUS 6.33% OF EXCESS OVER
                                       $80,650
 OVER $215,400                         $13,109 PLUS 6.85% OF EXCESS OVER
                                       $215,400
   (V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
 ING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER

 S. 2009                            55                            A. 3009
 
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.85% OF EXCESS OVER
                                       $13,900
 OVER $80,650 BUT NOT OVER $215,400    $4,504 PLUS 6.25% OF EXCESS OVER
                                       $80,650
 OVER $215,400                         $12,926 PLUS 6.85% OF EXCESS OVER
                                       $215,400
   (VI)  FOR  TAXABLE  YEARS  BEGINNING  IN TWO THOUSAND TWENTY-THREE THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.73% OF EXCESS OVER
                                       $13,900
 OVER $80,650 BUT NOT OVER $215,400    $4,424 PLUS 6.17% OF EXCESS OVER
                                       $80,650
 OVER $215,400                         $12,738 PLUS 6.85% OF EXCESS OVER
                                       $215,400
   (VII) FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND  TWENTY-FOUR  THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.61% OF EXCESS OVER
                                       $13,900
 OVER $80,650 BUT NOT OVER $215,400    $4,344 PLUS 6.09% OF EXCESS OVER
                                       $80,650
 OVER $215,400                         $12,550 PLUS 6.85% OF EXCESS OVER
                                       $215,400
   (VIII)  FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.50% OF EXCESS OVER
                                       $13,900
 OVER $80,650 BUT NOT OVER $215,400    $4,271 PLUS 6.00% OF EXCESS OVER
                                       $80,650
 OVER $215,400                         $12,356 PLUS 6.85% OF EXCESS OVER
                                       $215,400
   § 4. Subparagraph (D) of paragraph 1 of subsection  (d-1)  of  section
 601  of the tax law, as amended by section 5 of part FF of chapter 59 of
 the laws of 2013, is amended to read as follows:
   (D) The tax table benefit is the difference between (i) the amount  of
 taxable income set forth in the tax table in paragraph one of subsection

 S. 2009                            56                            A. 3009
 
 (a)  of this section not subject to the 8.82 percent rate of tax for the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for such amount of taxable income set forth in the tax table  applicable
 to  the  taxable year in paragraph one of subsection (a) of this section
 less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
 of this paragraph. The fraction for this  subparagraph  is  computed  as
 follows:  the  numerator  is the lesser of fifty thousand dollars or the
 excess of New York adjusted gross income for the taxable year  over  two
 million  dollars  and  the  denominator  is fifty thousand dollars. This
 subparagraph shall apply only to taxable years  beginning  on  or  after
 January  first,  two thousand twelve and before January first, two thou-
 sand [eighteen] TWENTY-ONE.
   § 5. Subparagraph (C) of paragraph 2 of subsection  (d-1)  of  section
 601  of the tax law, as amended by section 6 of part FF of chapter 59 of
 the laws of 2013, is amended to read as follows:
   (C) The tax table benefit is the difference between (i) the amount  of
 taxable income set forth in the tax table in paragraph one of subsection
 (b)  of this section not subject to the 8.82 percent rate of tax for the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for such amount of taxable income set forth in the tax table  applicable
 to  the  taxable year in paragraph one of subsection (b) of this section
 less the sum of the tax table benefits in subparagraphs (A) and  (B)  of
 this  paragraph.  The  fraction  for  this  subparagraph  is computed as
 follows: the numerator is the lesser of fifty thousand  dollars  or  the
 excess  of  New York adjusted gross income for the taxable year over one
 million five hundred thousand dollars and the denominator is fifty thou-
 sand dollars. This subparagraph shall apply only to taxable years begin-
 ning on or after January first, two thousand twelve and  before  January
 first, two thousand [eighteen] TWENTY-ONE.
   §  6.  Subparagraph  (C) of paragraph 3 of subsection (d-1) of section
 601 of the tax law, as amended by section 7 of part FF of chapter 59  of
 the laws of 2013, is amended to read as follows:
   (C)  The tax table benefit is the difference between (i) the amount of
 taxable income set forth in the tax table in paragraph one of subsection
 (c) of this section not subject to the 8.82 percent rate of tax for  the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for  such amount of taxable income set forth in the tax table applicable
 to the taxable year in paragraph one of subsection (c) of  this  section
 less  the  sum of the tax table benefits in subparagraphs (A) and (B) of
 this paragraph. The  fraction  for  this  subparagraph  is  computed  as
 follows:  the  numerator  is the lesser of fifty thousand dollars or the
 excess of New York adjusted gross income for the taxable year  over  one
 million  dollars  and  the  denominator  is fifty thousand dollars. This
 subparagraph shall apply only to taxable years  beginning  on  or  after
 January  first,  two thousand twelve and before January first, two thou-
 sand [eighteen] TWENTY-ONE.
   § 7. This act shall take effect immediately.
 
                                  PART S
 
   Section 1. Subsection (g) of section 615 of the tax law, as amended by
 section 1 of part H of chapter 59 of the laws of  2015,  is  amended  to
 read as follows:
   (g)(1)  With  respect  to  an individual whose New York adjusted gross
 income is over one million dollars and no more than ten million dollars,
 the New York itemized deduction  shall  be  an  amount  equal  to  fifty

 S. 2009                            57                            A. 3009
 
 percent  of  any charitable contribution deduction allowed under section
 one hundred seventy of the internal  revenue  code  [for  taxable  years
 beginning after two thousand nine and before two thousand eighteen. With
 respect  to  an  individual whose New York adjusted gross income is over
 one million dollars, the New York itemized deduction shall be an  amount
 equal  to fifty percent of any charitable contribution deduction allowed
 under section one hundred seventy of the internal revenue code for taxa-
 ble years beginning in two thousand nine or after  two  thousand  seven-
 teen].
   (2) With respect to an individual whose New York adjusted gross income
 is over ten million dollars, the New York itemized deduction shall be an
 amount  equal  to  twenty-five  percent  of  any charitable contribution
 deduction allowed under section one  hundred  seventy  of  the  internal
 revenue  code  [for  taxable years beginning after two thousand nine and
 ending before two thousand eighteen].
   § 2. Subdivision (g) of section 11-1715 of the administrative code  of
 the city of New York, as amended by section 2 of part H of chapter 59 of
 the laws of 2015, is amended to read as follows:
   (g)  (1)  With  respect to an individual whose New York adjusted gross
 income is over one million dollars but no more than ten million dollars,
 the New York itemized deduction  shall  be  an  amount  equal  to  fifty
 percent  of  any charitable contribution deduction allowed under section
 one hundred seventy of the internal  revenue  code  [for  taxable  years
 beginning after two thousand nine and before two thousand eighteen. With
 respect  to  an  individual whose New York adjusted gross income is over
 one million dollars, the New York itemized deduction shall be an  amount
 equal  to fifty percent of any charitable contribution deduction allowed
 under section one hundred seventy of the internal revenue code for taxa-
 ble years beginning in two thousand nine or after  two  thousand  seven-
 teen].
   (2) With respect to an individual whose New York adjusted gross income
 is over ten million dollars, the New York itemized deduction shall be an
 amount  equal  to  twenty-five  percent  of  any charitable contribution
 deduction allowed under section one  hundred  seventy  of  the  internal
 revenue  code  [for  taxable years beginning after two thousand nine and
 ending before two thousand eighteen].
   § 3. This act shall take effect immediately.
 
                                  PART T
 
   Section 1. Subsection (c) of section 606 of the tax law is amended  by
 adding a new paragraph (1-a) to read as follows:
   (1-A)  FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN, FOR A
 TAXPAYER WITH NEW YORK ADJUSTED GROSS INCOME OF AT LEAST FIFTY  THOUSAND
 DOLLARS BUT LESS THAN ONE HUNDRED FIFTY THOUSAND DOLLARS, THE APPLICABLE
 PERCENTAGE  SHALL  BE THE APPLICABLE PERCENTAGE OTHERWISE COMPUTED UNDER
 PARAGRAPH ONE OF THIS SUBSECTION MULTIPLIED BY A FACTOR AS FOLLOWS:
   IF NEW YORK ADJUSTED GROSS
   INCOME IS:                                         THE FACTOR IS:
   AT LEAST $50,000 AND LESS
   THAN $55,000                                       1.1682
   AT LEAST $55,000 AND LESS
   THAN $60,000                                       1.2733
   AT LEAST $60,000 AND LESS
   THAN $65,000                                       2.322
   AT LEAST $65,000 AND LESS

 S. 2009                            58                            A. 3009

   THAN $150,000                                      3.000
   § 2. This act shall take effect immediately.
 
                                  PART U
 
   Section  1. Paragraph (a) of subdivision 1 and paragraph (a) of subdi-
 vision 2 of section 1701 of the tax law, as added by section 1  of  part
 CC-1 of chapter 57 of the laws of 2008, are amended to read as follows:
   (a) "Debt" means [all] PAST-DUE TAX liabilities, including unpaid tax,
 interest,  and  penalty,  that  the  commissioner  is required by law to
 collect and that have [been reduced to judgment by the  docketing  of  a
 New  York  state  tax warrant in the office of a county clerk located in
 the state of New York or by the filing of a copy of the warrant  in  the
 office  of the department of state] BECOME FIXED AND FINAL SUCH THAT THE
 TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW.
   (a) To assist the commissioner in the collection of debts, the depart-
 ment must develop and operate a financial institution data match  system
 for  the purpose of identifying and seizing the non-exempt assets of tax
 debtors as identified by the commissioner. The commissioner  is  author-
 ized  to  designate  a  third  party to develop and operate this system.
 NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER,  THE  COMMISSIONER
 IS  AUTHORIZED  TO  DISCLOSE THE DEBT AND THE DEBTOR INFORMATION TO SUCH
 THIRD PARTY AND TO FINANCIAL INSTITUTIONS FOR PURPOSES OF  THIS  SYSTEM.
 Any  third party designated by the commissioner to develop and operate a
 financial data match system must keep all information  it  obtains  from
 both  the department and the financial institution confidential, and any
 employee, agent or representative of that third party is prohibited from
 disclosing that information to anyone other than the department  or  the
 financial institution.
   § 2. This act shall take effect immediately.
 
                                  PART V
 
   Section  1.  Subdivision  4  of section 50 of the civil service law is
 amended by adding a new closing paragraph to read as follows:
   THE DEPARTMENT SHALL REQUIRE A TAX CLEARANCE FROM  THE  DEPARTMENT  OF
 TAXATION  AND  FINANCE,  AS PROVIDED FOR IN SECTION ONE HUNDRED SEVENTY-
 ONE-W OF THE TAX LAW, FOR EACH APPLICANT AND SHALL REFUSE TO EXAMINE  AN
 APPLICANT,  OR  AFTER  EXAMINATION  TO  CERTIFY AN ELIGIBLE FOR WHOM TAX
 CLEARANCE IS DENIED BY THE DEPARTMENT OF TAXATION AND FINANCE.  A MUNIC-
 IPAL COMMISSION, SUBJECT TO THE APPROVAL OF THE GOVERNING BOARD OR  BODY
 OF  THE  CITY  OR COUNTY AS THE CASE MAY BE, OR A REGIONAL COMMISSION OR
 PERSONNEL OFFICER, PURSUANT TO  GOVERNMENTAL  AGREEMENT,  MAY  ELECT  TO
 REQUIRE TAX CLEARANCES FOR APPLICANTS AND TO REFUSE TO EXAMINE AN APPLI-
 CANT,  OR AFTER EXAMINATION TO CERTIFY AN ELIGIBLE FOR WHOM A TAX CLEAR-
 ANCE IS DENIED BY THE DEPARTMENT  OF  TAXATION  AND  FINANCE.  PROVIDED,
 HOWEVER, THAT THE DEPARTMENT AND MUNICIPAL COMMISSIONS SHALL NOT REQUIRE
 A  TAX  CLEARANCE  FOR  (1) ANY CURRENT EMPLOYEE; OR (2) A PERSON WHO IS
 CONSIDERED AN APPLICANT BY REASON OF (A) A TRANSFER PURSUANT TO  SECTION
 SEVENTY  OF  THIS  CHAPTER;  OR  (B) A PERSON WHO IS ON A PREFERRED LIST
 SUBJECT TO SECTION EIGHTY-ONE OF THIS CHAPTER; OR  (C)  A  PERSON  WHOSE
 NAME  IS  ON  AN  ELIGIBLE  LIST AS DEFINED IN SECTION FIFTY-SIX OF THIS
 ARTICLE AND WHO HAS SUCCESSFULLY COMPLETED A PROMOTION EXAM  SUBJECT  TO
 SECTION  FIFTY-TWO  OF  THIS ARTICLE. WHERE A TAX CLEARANCE IS REQUIRED,
 THE APPLICATION FOR EXAMINATION, OR THE INSTRUCTIONS FOR  SUCH  APPLICA-
 TION,  SHALL  CLEARLY  INFORM THE APPLICANT THAT A TAX CLEARANCE WILL BE

 S. 2009                            59                            A. 3009
 
 PERFORMED AND THAT, IF THE TAX CLEARANCE IS DENIED, THE  APPLICANT  MUST
 CONTACT  THE  DEPARTMENT OF TAXATION AND FINANCE TO RESOLVE ANY PAST-DUE
 TAX LIABILITIES OR RETURN FILING COMPLIANCE BEFORE THE  APPLICATION  FOR
 EXAMINATION  MAY  BE RESUBMITTED. ANY APPLICANT SUBJECT TO TAX CLEARANCE
 SHALL BE REQUIRED TO PROVIDE ANY INFORMATION  DEEMED  NECESSARY  BY  THE
 DEPARTMENT AND THE DEPARTMENT OF TAXATION AND FINANCE TO EFFICIENTLY AND
 ACCURATELY  PROVIDE A TAX CLEARANCE, AND THE FAILURE BY THE APPLICANT TO
 PROVIDE SUCH INFORMATION SHALL DISQUALIFY THE APPLICANT.
   § 2. The tax law is amended by adding a new section 171-w to  read  as
 follows:
   §  171-W. ENFORCEMENT OF DELINQUENT TAX LIABILITIES THROUGH TAX CLEAR-
 ANCES. (1) FOR THE PURPOSES OF THIS SECTION, THE TERM "TAX  LIABILITIES"
 SHALL  MEAN ANY TAX, SURCHARGE, OR FEE ADMINISTERED BY THE COMMISSIONER,
 OR ANY PENALTY OR INTEREST ON SUCH TAX, SURCHARGE, OR FEE,  OWED  BY  AN
 INDIVIDUAL  OR  ENTITY.  THE  TERM  "PAST-DUE TAX LIABILITIES" MEANS ANY
 UNPAID TAX LIABILITIES THAT HAVE BECOME FIXED AND FINAL  SUCH  THAT  THE
 TAXPAYER  NO  LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW.
 THE TERM "GOVERNMENT ENTITY" MEANS THE STATE OF NEW YORK, OR ANY OF  ITS
 AGENCIES, POLITICAL SUBDIVISIONS, INSTRUMENTALITIES, PUBLIC CORPORATIONS
 (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT
 WITH ANOTHER STATE OR CANADA), OR COMBINATION THEREOF.
   (2) THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL COOPERATE WITH ANY
 GOVERNMENT  ENTITY THAT IS REQUIRED BY LAW OR HAS ELECTED TO REQUIRE TAX
 CLEARANCES TO ESTABLISH PROCEDURES BY WHICH THE DEPARTMENT SHALL RECEIVE
 A TAX CLEARANCE REQUEST AND TRANSMIT SUCH TAX CLEARANCE TO  THE  GOVERN-
 MENT  ENTITY, AND ANY OTHER PROCEDURES DEEMED NECESSARY TO CARRY OUT THE
 PROVISIONS OF THIS SECTION. THESE PROCEDURES SHALL, TO THE EXTENT  PRAC-
 TICABLE,  REQUIRE SECURE ELECTRONIC COMMUNICATION BETWEEN THE DEPARTMENT
 AND THE REQUESTING GOVERNMENT ENTITY FOR THE TRANSMISSION OF TAX  CLEAR-
 ANCE  REQUESTS  TO  THE DEPARTMENT AND TRANSMISSION OF TAX CLEARANCES TO
 THE REQUESTING ENTITY.  NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, A
 GOVERNMENT ENTITY SHALL BE AUTHORIZED TO SHARE  ANY  APPLICANT  DATA  OR
 INFORMATION  WITH  THE DEPARTMENT THAT IS NECESSARY TO ENSURE THE PROPER
 MATCHING OF THE APPLICANT TO THE TAX RECORDS MAINTAINED BY  THE  DEPART-
 MENT.
   (3)  UPON  RECEIPT  OF  A  TAX CLEARANCE REQUEST, THE DEPARTMENT SHALL
 EXAMINE ITS RECORDS TO DETERMINE WHETHER THE SUBJECT OF THE  TAX  CLEAR-
 ANCE  REQUEST  HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS OF THE
 DOLLAR THRESHOLD APPLICABLE FOR SUCH TAX CLEARANCE REQUEST OR,  WERE  NO
 THRESHOLD  HAS  BEEN  ESTABLISHED  BY  LAW  OR OTHERWISE, EQUAL TO OR IN
 EXCESS OF  FIVE  HUNDRED  DOLLARS.  WHEN  A  TAX  CLEARANCE  REQUEST  SO
 REQUIRES, THE DEPARTMENT SHALL ALSO DETERMINE WHETHER (I) THE SUBJECT OF
 SUCH REQUEST HAS COMPLIED WITH APPLICABLE TAX RETURN FILING REQUIREMENTS
 FOR  EACH OF THE PAST THREE YEARS; AND/OR (II) WHETHER A SUBJECT OF SUCH
 REQUEST THAT IS AN INDIVIDUAL OR ENTITY THAT IS  A  PERSON  REQUIRED  TO
 REGISTER  PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER
 IS REGISTERED PURSUANT TO SUCH SECTION. THE DEPARTMENT SHALL DENY A  TAX
 CLEARANCE  IF  IT DETERMINES THAT THE SUBJECT OF A TAX CLEARANCE REQUEST
 HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN  EXCESS  OF  THE  APPLICABLE
 THRESHOLD  OR,  WHEN  THE  TAX  CLEARANCE  REQUEST  SO REQUIRES, HAS NOT
 COMPLIED WITH APPLICABLE RETURN FILING AND/OR REGISTRATION REQUIREMENTS.
   (4) IF A TAX CLEARANCE IS DENIED, THE GOVERNMENT ENTITY THAT REQUESTED
 THE CLEARANCE SHALL PROVIDE NOTICE  TO  THE  APPLICANT  TO  CONTACT  THE
 DEPARTMENT. SUCH NOTICE SHALL BE MADE BY FIRST CLASS MAIL WITH A CERTIF-
 ICATE OF MAILING AND A COPY OF SUCH NOTICE ALSO SHALL BE PROVIDED TO THE
 DEPARTMENT.  WHEN  THE APPLICANT CONTACTS THE DEPARTMENT, THE DEPARTMENT

 S. 2009                            60                            A. 3009
 
 SHALL INFORM THE APPLICANT OF THE BASIS FOR THE DENIAL OF THE TAX CLEAR-
 ANCE AND SHALL ALSO INFORM THE APPLICANT (I) THAT A TAX CLEARANCE DENIED
 DUE TO PAST-DUE TAX LIABILITIES MAY BE ISSUED ONCE  THE  TAXPAYER  FULLY
 SATISFIES  PAST-DUE TAX LIABILITIES OR MAKES PAYMENT ARRANGEMENTS SATIS-
 FACTORY TO THE COMMISSIONER; (II) THAT A TAX  CLEARANCE  DENIED  DUE  TO
 FAILURE  TO FILE TAX RETURNS MAY BE ISSUED ONCE THE APPLICANT HAS SATIS-
 FIED THE APPLICABLE RETURN FILING REQUIREMENTS; (III) THAT A TAX  CLEAR-
 ANCE  DENIED  FOR FAILURE TO REGISTER PURSUANT TO SECTION ELEVEN HUNDRED
 THIRTY-FOUR OF THIS CHAPTER MAY BE ISSUED ONCE THE APPLICANT HAS  REGIS-
 TERED PURSUANT TO SUCH SECTION; AND (IV) THE GROUNDS FOR CHALLENGING THE
 DENIAL OF A TAX CLEARANCE LISTED IN SUBDIVISION FIVE OF THIS SECTION.
   (5)  (A)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, AND EXCEPT AS
 SPECIFICALLY PROVIDED HEREIN, AN APPLICANT DENIED A TAX CLEARANCE  SHALL
 HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR SEEK ANY OTHER
 LEGAL  RECOURSE  AGAINST THE DEPARTMENT OR THE GOVERNMENT ENTITY RELATED
 TO THE DENIAL OF A TAX CLEARANCE BY THE DEPARTMENT.
   (B) AN APPLICANT SEEKING TO CHALLENGE THE DENIAL OF  A  TAX  CLEARANCE
 MUST  PROTEST  TO THE DEPARTMENT OR THE DIVISION OF TAX APPEALS NO LATER
 THAN SIXTY DAYS FROM THE DATE OF THE NOTIFICATION TO THE APPLICANT  THAT
 THE  TAX  CLEARANCE  WAS DENIED. AN APPLICANT MAY CHALLENGE A DEPARTMENT
 FINDING OF PAST-DUE TAX LIABILITIES ONLY ON THE  GROUNDS  THAT  (I)  THE
 INDIVIDUAL  OR  ENTITY DENIED THE TAX CLEARANCE IS NOT THE INDIVIDUAL OR
 ENTITY WITH THE PAST-DUE TAX LIABILITIES AT ISSUE; (II) THE PAST-DUE TAX
 LIABILITIES WERE  SATISFIED;  (III)  THE  APPLICANT'S  WAGES  ARE  BEING
 GARNISHED FOR THE PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL
 SUPPORT PURSUANT TO AN INCOME EXECUTION ISSUED PURSUANT TO SECTION FIFTY
 TWO  HUNDRED FORTY-ONE OR FIFTY TWO HUNDRED FORTY-TWO OF THE CIVIL PRAC-
 TICE LAW AND RULES  OR  ANOTHER  STATE'S  INCOME  WITHHOLDING  ORDER  AS
 AUTHORIZED UNDER PART FIVE OF ARTICLE FIVE-B OF THE FAMILY COURT ACT, OR
 GARNISHED  BY THE DEPARTMENT FOR THE PAYMENT OF THE PAST-DUE TAX LIABIL-
 ITIES AT ISSUE; OR (IV) THE APPLICANT IS MAKING CHILD  SUPPORT  PAYMENTS
 OR  COMBINED  CHILD AND SPOUSAL SUPPORT PAYMENTS PURSUANT TO A SATISFAC-
 TORY PAYMENT ARRANGEMENT UNDER  SECTION  ONE  HUNDRED  ELEVEN-B  OF  THE
 SOCIAL  SERVICES  LAW WITH A SUPPORT COLLECTION UNIT OR OTHERWISE MAKING
 PERIODIC PAYMENTS IN ACCORDANCE WITH SECTION FOUR HUNDRED FORTY  OF  THE
 FAMILY  COURT  ACT.  AN  APPLICANT MAY CHALLENGE A DEPARTMENT FINDING OF
 FAILURE TO COMPLY WITH  TAX  RETURN  FILING  REQUIREMENTS  ONLY  ON  THE
 GROUNDS  THAT  ALL  REQUIRED TAX RETURNS HAVE BEEN FILED FOR EACH OF THE
 PAST THREE YEARS.
   (C) NOTHING IN THIS SUBDIVISION IS INTENDED  TO  LIMIT  ANY  APPLICANT
 FROM SEEKING RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION
 SIX  HUNDRED FIFTY-FOUR OF THIS CHAPTER, TO THE EXTENT THAT HE OR SHE IS
 ELIGIBLE PURSUANT TO THAT SECTION, OR  ESTABLISHING  TO  THE  DEPARTMENT
 THAT  THE  ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS BEEN STAYED
 BY THE FILING OF A PETITION PURSUANT TO  THE  BANKRUPTCY  CODE  OF  1978
 (TITLE ELEVEN OF THE UNITED STATES CODE).
   (6)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, THE DEPARTMENT MAY
 EXCHANGE WITH A GOVERNMENT ENTITY ANY DATA OR INFORMATION THAT,  IN  THE
 DISCRETION OF THE COMMISSIONER, IS NECESSARY FOR THE IMPLEMENTATION OF A
 TAX CLEARANCE REQUIREMENT. HOWEVER, NO GOVERNMENT ENTITY MAY RE-DISCLOSE
 THIS  INFORMATION  TO  ANY  OTHER  ENTITY  OR PERSON, OTHER THAN FOR THE
 PURPOSE OF INFORMING THE APPLICANT THAT A  REQUIRED  TAX  CLEARANCE  HAS
 BEEN DENIED, UNLESS OTHERWISE PERMITTED BY LAW.
   (7)  EXCEPT  AS  OTHERWISE PROVIDED IN THIS SECTION, THE ACTIVITIES TO
 COLLECT PAST-DUE TAX LIABILITIES UNDERTAKEN BY THE  DEPARTMENT  PURSUANT
 TO  THIS  SECTION  SHALL  NOT  IN  ANY WAY LIMIT, RESTRICT OR IMPAIR THE

 S. 2009                            61                            A. 3009
 
 DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT OR ENFORCE TAX
 LIABILITIES UNDER ANY OTHER APPLICABLE PROVISION OF LAW.
   §  3. This act shall take effect June 1, 2017; provided, however, that
 the department of taxation and finance, the department of civil service,
 any municipal commission, and any other government  entity  electing  to
 receive  a tax clearance from the department of taxation and finance may
 work to execute  the  necessary  procedures  and  technical  changes  to
 support  the  tax clearance process as described in sections one and two
 of this act before that date; provided,  further,  that  this  effective
 date  will  not  impact  the administration of any tax clearance program
 authorized by another provision of law.
 
                                  PART W
 
   Section 1. Paragraph (a) of subdivision 1 of section 18 of chapter 266
 of the laws of 1986, amending the civil practice law and rules and other
 laws relating  to  malpractice  and  professional  medical  conduct,  as
 amended  by  section  2  of part C of chapter 59 of the laws of 2016, is
 amended to read as follows:
   (a) The superintendent of financial services and the  commissioner  of
 health  or  their  designee  shall, from funds available in the hospital
 excess liability pool created pursuant to subdivision 5 of this section,
 purchase a policy or policies for excess insurance coverage, as  author-
 ized  by  paragraph 1 of subsection (e) of section 5502 of the insurance
 law; or from an insurer, other than an insurer described in section 5502
 of the insurance law, duly authorized to write such coverage and actual-
 ly writing  medical  malpractice  insurance  in  this  state;  or  shall
 purchase equivalent excess coverage in a form previously approved by the
 superintendent  of  financial  services for purposes of providing equiv-
 alent excess coverage in accordance with section 19 of  chapter  294  of
 the  laws of 1985, for medical or dental malpractice occurrences between
 July 1, 1986 and June 30, 1987, between July 1, 1987 and June 30,  1988,
 between  July  1,  1988 and June 30, 1989, between July 1, 1989 and June
 30, 1990, between July 1, 1990 and June 30, 1991, between July  1,  1991
 and  June 30, 1992, between July 1, 1992 and June 30, 1993, between July
 1, 1993 and June 30, 1994, between July  1,  1994  and  June  30,  1995,
 between  July  1,  1995 and June 30, 1996, between July 1, 1996 and June
 30, 1997, between July 1, 1997 and June 30, 1998, between July  1,  1998
 and  June 30, 1999, between July 1, 1999 and June 30, 2000, between July
 1, 2000 and June 30, 2001, between July  1,  2001  and  June  30,  2002,
 between  July  1,  2002 and June 30, 2003, between July 1, 2003 and June
 30, 2004, between July 1, 2004 and June 30, 2005, between July  1,  2005
 and  June 30, 2006, between July 1, 2006 and June 30, 2007, between July
 1, 2007 and June 30, 2008, between July  1,  2008  and  June  30,  2009,
 between  July  1,  2009 and June 30, 2010, between July 1, 2010 and June
 30, 2011, between July 1, 2011 and June 30, 2012, between July  1,  2012
 and  June 30, 2013, between July 1, 2013 and June 30, 2014, between July
 1, 2014 and June 30, 2015, between July 1, 2015 and June 30, 2016, [and]
 between July 1, 2016 and June 30, 2017, AND BETWEEN  JULY  1,  2017  AND
 JUNE  30,  2018  or  reimburse the hospital where the hospital purchases
 equivalent excess coverage as defined in subparagraph (i)  of  paragraph
 (a) of subdivision 1-a of this section for medical or dental malpractice
 occurrences between July 1, 1987 and June 30, 1988, between July 1, 1988
 and  June 30, 1989, between July 1, 1989 and June 30, 1990, between July
 1, 1990 and June 30, 1991, between July  1,  1991  and  June  30,  1992,
 between  July  1,  1992 and June 30, 1993, between July 1, 1993 and June

 S. 2009                            62                            A. 3009
 
 30, 1994, between July 1, 1994 and June 30, 1995, between July  1,  1995
 and  June 30, 1996, between July 1, 1996 and June 30, 1997, between July
 1, 1997 and June 30, 1998, between July  1,  1998  and  June  30,  1999,
 between  July  1,  1999 and June 30, 2000, between July 1, 2000 and June
 30, 2001, between July 1, 2001 and June 30, 2002, between July  1,  2002
 and  June 30, 2003, between July 1, 2003 and June 30, 2004, between July
 1, 2004 and June 30, 2005, between July  1,  2005  and  June  30,  2006,
 between  July  1,  2006 and June 30, 2007, between July 1, 2007 and June
 30, 2008, between July 1, 2008 and June 30, 2009, between July  1,  2009
 and  June 30, 2010, between July 1, 2010 and June 30, 2011, between July
 1, 2011 and June 30, 2012, between July  1,  2012  and  June  30,  2013,
 between  July  1,  2013 and June 30, 2014, between July 1, 2014 and June
 30, 2015, between July 1, 2015 and June 30, 2016, [and] between July  1,
 2016  and  June 30, 2017, AND BETWEEN JULY 1, 2017 AND JUNE 30, 2018 for
 physicians or dentists certified as eligible for  each  such  period  or
 periods  pursuant to subdivision 2 of this section by a general hospital
 licensed pursuant to article 28 of the public health law; provided  that
 no  single  insurer  shall  write  more  than fifty percent of the total
 excess premium for a given policy year; and provided, however, that such
 eligible physicians or dentists must have in force an individual policy,
 from an insurer licensed in this state of primary malpractice  insurance
 coverage  in  amounts of no less than one million three hundred thousand
 dollars for each  claimant  and  three  million  nine  hundred  thousand
 dollars  for  all  claimants under that policy during the period of such
 excess coverage for  such  occurrences  or  be  endorsed  as  additional
 insureds under a hospital professional liability policy which is offered
 through a voluntary attending physician ("channeling") program previous-
 ly  permitted  by  the  superintendent  of financial services during the
 period of such excess coverage for such occurrences; AND  PROVIDED  THAT
 SUCH  ELIGIBLE  PHYSICIANS OR DENTISTS HAVE RECEIVED TAX CLEARANCES FROM
 THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO SECTION 171-W OF  THE
 TAX  LAW.  During  such  period, such policy for excess coverage or such
 equivalent excess coverage shall, when combined with the physician's  or
 dentist's  primary  malpractice  insurance coverage or coverage provided
 through a voluntary attending physician ("channeling") program, total an
 aggregate level of two million three hundred thousand dollars  for  each
 claimant and six million nine hundred thousand dollars for all claimants
 from all such policies with respect to occurrences in each of such years
 provided, however, if the cost of primary malpractice insurance coverage
 in  excess of one million dollars, but below the excess medical malprac-
 tice insurance coverage provided pursuant to this act, exceeds the  rate
 of  nine  percent per annum, then the required level of primary malprac-
 tice insurance coverage in excess of one million dollars for each claim-
 ant shall be in an amount of not less than the  dollar  amount  of  such
 coverage available at nine percent per annum; the required level of such
 coverage  for  all claimants under that policy shall be in an amount not
 less than three times the dollar amount of coverage for  each  claimant;
 and  excess coverage, when combined with such primary malpractice insur-
 ance coverage, shall increase the aggregate level for each  claimant  by
 one  million  dollars  and  three million dollars for all claimants; and
 provided further, that, with respect  to  policies  of  primary  medical
 malpractice  coverage that include occurrences between April 1, 2002 and
 June 30, 2002, such requirement that coverage be in amounts no less than
 one million three hundred thousand dollars for each claimant  and  three
 million  nine hundred thousand dollars for all claimants for such occur-
 rences shall be effective April 1, 2002.

 S. 2009                            63                            A. 3009
 
   § 2. Subdivision 3 of section 18 of chapter 266 of the laws  of  1986,
 amending  the  civil  practice  law and rules and other laws relating to
 malpractice and professional medical conduct, as amended by section 3 of
 part C of chapter 59 of the laws of 2016, is amended to read as follows:
   (3)(a)  The  superintendent  of financial services shall determine and
 certify to each general hospital and to the commissioner of  health  the
 cost  of  excess malpractice insurance for medical or dental malpractice
 occurrences between July 1, 1986 and June 30, 1987, between July 1, 1988
 and June 30, 1989, between July 1, 1989 and June 30, 1990, between  July
 1,  1990  and  June  30,  1991,  between July 1, 1991 and June 30, 1992,
 between July 1, 1992 and June 30, 1993, between July 1,  1993  and  June
 30,  1994,  between July 1, 1994 and June 30, 1995, between July 1, 1995
 and June 30, 1996, between July 1, 1996 and June 30, 1997, between  July
 1,  1997  and  June  30,  1998,  between July 1, 1998 and June 30, 1999,
 between July 1, 1999 and June 30, 2000, between July 1,  2000  and  June
 30,  2001,  between July 1, 2001 and June 30, 2002, between July 1, 2002
 and June 30, 2003, between July 1, 2003 and June 30, 2004, between  July
 1,  2004  and  June  30,  2005,  between July 1, 2005 and June 30, 2006,
 between July 1, 2006 and June 30, 2007, between July 1,  2007  and  June
 30,  2008,  between July 1, 2008 and June 30, 2009, between July 1, 2009
 and June 30, 2010, between July 1, 2010 and June 30, 2011, between  July
 1,  2011  and June 30, 2012, between July 1, 2012 and June 30, 2013, and
 between July 1, 2013 and June 30, 2014, between July 1,  2014  and  June
 30,  2015,  between  July 1, 2015 and June 30, 2016, and between July 1,
 2016 and June 30, 2017, AND BETWEEN JULY 1, 2017 AND JUNE 30, 2018 allo-
 cable to each general hospital for physicians or dentists  certified  as
 eligible  for purchase of a policy for excess insurance coverage by such
 general hospital in accordance with subdivision 2 of this  section,  and
 may amend such determination and certification as necessary.
   (b)  The  superintendent  of  financial  services  shall determine and
 certify to each general hospital and to the commissioner of  health  the
 cost  of  excess malpractice insurance or equivalent excess coverage for
 medical or dental malpractice occurrences between July 1, 1987 and  June
 30,  1988,  between July 1, 1988 and June 30, 1989, between July 1, 1989
 and June 30, 1990, between July 1, 1990 and June 30, 1991, between  July
 1,  1991  and  June  30,  1992,  between July 1, 1992 and June 30, 1993,
 between July 1, 1993 and June 30, 1994, between July 1,  1994  and  June
 30,  1995,  between July 1, 1995 and June 30, 1996, between July 1, 1996
 and June 30, 1997, between July 1, 1997 and June 30, 1998, between  July
 1,  1998  and  June  30,  1999,  between July 1, 1999 and June 30, 2000,
 between July 1, 2000 and June 30, 2001, between July 1,  2001  and  June
 30,  2002,  between July 1, 2002 and June 30, 2003, between July 1, 2003
 and June 30, 2004, between July 1, 2004 and June 30, 2005, between  July
 1,  2005  and  June  30,  2006,  between July 1, 2006 and June 30, 2007,
 between July 1, 2007 and June 30, 2008, between July 1,  2008  and  June
 30,  2009,  between July 1, 2009 and June 30, 2010, between July 1, 2010
 and June 30, 2011, between July 1, 2011 and June 30, 2012, between  July
 1,  2012  and  June  30,  2013,  between July 1, 2013 and June 30, 2014,
 between July 1, 2014 and June 30, 2015, between July 1,  2015  and  June
 30,  2016,  and between July 1, 2016 and June 30, 2017, AND BETWEEN JULY
 1, 2017 AND JUNE 30, 2018 allocable to each general hospital for  physi-
 cians  or  dentists  certified  as eligible for purchase of a policy for
 excess insurance coverage or equivalent excess coverage by such  general
 hospital in accordance with subdivision 2 of this section, and may amend
 such determination and certification as necessary. The superintendent of
 financial  services shall determine and certify to each general hospital

 S. 2009                            64                            A. 3009
 
 and to the commissioner of health the ratable share of such cost alloca-
 ble to the period July 1, 1987 to December 31, 1987, to the period Janu-
 ary 1, 1988 to June 30, 1988, to the period July 1, 1988 to December 31,
 1988, to the period January 1, 1989 to June 30, 1989, to the period July
 1,  1989 to December 31, 1989, to the period January 1, 1990 to June 30,
 1990, to the period July 1, 1990 to December 31,  1990,  to  the  period
 January 1, 1991 to June 30, 1991, to the period July 1, 1991 to December
 31,  1991, to the period January 1, 1992 to June 30, 1992, to the period
 July 1, 1992 to December 31, 1992, to the period January 1, 1993 to June
 30, 1993, to the period July 1, 1993 to December 31, 1993, to the period
 January 1, 1994 to June 30, 1994, to the period July 1, 1994 to December
 31, 1994, to the period January 1, 1995 to June 30, 1995, to the  period
 July 1, 1995 to December 31, 1995, to the period January 1, 1996 to June
 30, 1996, to the period July 1, 1996 to December 31, 1996, to the period
 January 1, 1997 to June 30, 1997, to the period July 1, 1997 to December
 31,  1997, to the period January 1, 1998 to June 30, 1998, to the period
 July 1, 1998 to December 31, 1998, to the period January 1, 1999 to June
 30, 1999, to the period July 1, 1999 to December 31, 1999, to the period
 January 1, 2000 to June 30, 2000, to the period July 1, 2000 to December
 31, 2000, to the period January 1, 2001 to June 30, 2001, to the  period
 July  1,  2001  to June 30, 2002, to the period July 1, 2002 to June 30,
 2003, to the period July 1, 2003 to June 30, 2004, to the period July 1,
 2004 to June 30, 2005, to the period July 1, 2005 and June 30, 2006,  to
 the  period  July  1, 2006 and June 30, 2007, to the period July 1, 2007
 and June 30, 2008, to the period July 1, 2008 and June 30, 2009, to  the
 period  July  1,  2009 and June 30, 2010, to the period July 1, 2010 and
 June 30, 2011, to the period July 1, 2011 and  June  30,  2012,  to  the
 period  July  1,  2012 and June 30, 2013, to the period July 1, 2013 and
 June 30, 2014, to the period July 1, 2014 and  June  30,  2015,  to  the
 period July 1, 2015 and June 30, 2016, and between July 1, 2016 and June
 30, 2017, AND TO THE PERIOD JULY 1, 2017 AND JUNE 30, 2018.
   § 3. Paragraphs (a), (b), (c), (d) and (e) of subdivision 8 of section
 18  of  chapter 266 of the laws of 1986, amending the civil practice law
 and rules and  other  laws  relating  to  malpractice  and  professional
 medical  conduct, as amended by section 4 of part C of chapter 59 of the
 laws of 2016, are amended to read as follows:
   (a) To the extent funds available to  the  hospital  excess  liability
 pool  pursuant to subdivision 5 of this section as amended, and pursuant
 to section 6 of part J of chapter 63 of the laws of 2001,  as  may  from
 time  to  time  be amended, which amended this subdivision, are insuffi-
 cient to meet the costs  of  excess  insurance  coverage  or  equivalent
 excess  coverage  for coverage periods during the period July 1, 1992 to
 June 30, 1993, during the period July 1, 1993 to June 30,  1994,  during
 the period July 1, 1994 to June 30, 1995, during the period July 1, 1995
 to  June  30,  1996,  during  the  period July 1, 1996 to June 30, 1997,
 during the period July 1, 1997 to June 30, 1998, during the period  July
 1,  1998  to  June  30, 1999, during the period July 1, 1999 to June 30,
 2000, during the period July 1, 2000 to June 30, 2001, during the period
 July 1, 2001 to October 29, 2001, during the period  April  1,  2002  to
 June  30,  2002, during the period July 1, 2002 to June 30, 2003, during
 the period July 1, 2003 to June 30, 2004, during the period July 1, 2004
 to June 30, 2005, during the period July  1,  2005  to  June  30,  2006,
 during  the period July 1, 2006 to June 30, 2007, during the period July
 1, 2007 to June 30, 2008, during the period July 1,  2008  to  June  30,
 2009, during the period July 1, 2009 to June 30, 2010, during the period
 July  1,  2010  to June 30, 2011, during the period July 1, 2011 to June

 S. 2009                            65                            A. 3009
 
 30, 2012, during the period July 1, 2012 to June 30,  2013,  during  the
 period  July 1, 2013 to June 30, 2014, during the period July 1, 2014 to
 June 30, 2015, during the period July 1, 2015 and June  30,  2016,  [and
 between]  DURING  THE  PERIOD July 1, 2016 and June 30, 2017, AND DURING
 THE PERIOD JULY 1, 2017 AND JUNE 30, 2018 allocated  or  reallocated  in
 accordance  with  paragraph  (a)  of  subdivision 4-a of this section to
 rates of payment applicable to state governmental agencies, each  physi-
 cian  or  dentist  for  whom  a  policy for excess insurance coverage or
 equivalent excess coverage is purchased for such period shall be respon-
 sible for payment to the provider of excess insurance coverage or equiv-
 alent excess coverage of an allocable share of such insufficiency, based
 on the ratio of the total cost of such coverage for  such  physician  to
 the sum of the total cost of such coverage for all physicians applied to
 such insufficiency.
   (b)  Each  provider  of excess insurance coverage or equivalent excess
 coverage covering the period July 1, 1992 to June 30, 1993, or  covering
 the period July 1, 1993 to June 30, 1994, or covering the period July 1,
 1994  to  June 30, 1995, or covering the period July 1, 1995 to June 30,
 1996, or covering the period July 1, 1996 to June 30, 1997, or  covering
 the period July 1, 1997 to June 30, 1998, or covering the period July 1,
 1998  to  June 30, 1999, or covering the period July 1, 1999 to June 30,
 2000, or covering the period July 1, 2000 to June 30, 2001, or  covering
 the  period  July  1,  2001  to October 29, 2001, or covering the period
 April 1, 2002 to June 30, 2002, or covering the period July 1,  2002  to
 June  30, 2003, or covering the period July 1, 2003 to June 30, 2004, or
 covering the period July 1, 2004 to June 30, 2005, or covering the peri-
 od July 1, 2005 to June 30, 2006, or covering the period July 1, 2006 to
 June 30, 2007, or covering the period July 1, 2007 to June 30, 2008,  or
 covering the period July 1, 2008 to June 30, 2009, or covering the peri-
 od July 1, 2009 to June 30, 2010, or covering the period July 1, 2010 to
 June  30, 2011, or covering the period July 1, 2011 to June 30, 2012, or
 covering the period July 1, 2012 to June 30, 2013, or covering the peri-
 od July 1, 2013 to June 30, 2014, or covering the period July 1, 2014 to
 June 30, 2015, or covering the period July 1, 2015 to June 30, 2016,  or
 covering the period July 1, 2016 to June 30, 2017, OR COVERING THE PERI-
 OD  JULY  1,  2017  TO JUNE 30, 2018 shall notify a covered physician or
 dentist by mail, mailed to the address shown on the last application for
 excess insurance coverage or equivalent excess coverage, of  the  amount
 due  to  such  provider from such physician or dentist for such coverage
 period determined in accordance with paragraph (a) of this  subdivision.
 Such amount shall be due from such physician or dentist to such provider
 of excess insurance coverage or equivalent excess coverage in a time and
 manner determined by the superintendent of financial services.
   (c)  If  a physician or dentist liable for payment of a portion of the
 costs of excess insurance coverage or equivalent excess coverage  cover-
 ing  the  period  July  1, 1992 to June 30, 1993, or covering the period
 July 1, 1993 to June 30, 1994, or covering the period July  1,  1994  to
 June  30, 1995, or covering the period July 1, 1995 to June 30, 1996, or
 covering the period July 1, 1996 to June 30, 1997, or covering the peri-
 od July 1, 1997 to June 30, 1998, or covering the period July 1, 1998 to
 June 30, 1999, or covering the period July 1, 1999 to June 30, 2000,  or
 covering the period July 1, 2000 to June 30, 2001, or covering the peri-
 od  July  1,  2001  to October 29, 2001, or covering the period April 1,
 2002 to June 30, 2002, or covering the period July 1, 2002 to  June  30,
 2003,  or covering the period July 1, 2003 to June 30, 2004, or covering
 the period July 1, 2004 to June 30, 2005, or covering the period July 1,

 S. 2009                            66                            A. 3009
 
 2005 to June 30, 2006, or covering the period July 1, 2006 to  June  30,
 2007,  or covering the period July 1, 2007 to June 30, 2008, or covering
 the period July 1, 2008 to June 30, 2009, or covering the period July 1,
 2009  to  June 30, 2010, or covering the period July 1, 2010 to June 30,
 2011, or covering the period July 1, 2011 to June 30, 2012, or  covering
 the period July 1, 2012 to June 30, 2013, or covering the period July 1,
 2013  to  June 30, 2014, or covering the period July 1, 2014 to June 30,
 2015, or covering the period July 1, 2015 to June 30, 2016, or  covering
 the period July 1, 2016 to June 30, 2017, OR COVERING THE PERIOD JULY 1,
 2017  TO  JUNE  30,  2018 determined in accordance with paragraph (a) of
 this subdivision fails, refuses or  neglects  to  make  payment  to  the
 provider  of  excess insurance coverage or equivalent excess coverage in
 such time and manner as determined by the  superintendent  of  financial
 services pursuant to paragraph (b) of this subdivision, excess insurance
 coverage  or  equivalent excess coverage purchased for such physician or
 dentist in accordance with this section for such coverage  period  shall
 be  cancelled and shall be null and void as of the first day on or after
 the commencement of a policy period  where  the  liability  for  payment
 pursuant to this subdivision has not been met.
   (d)  Each  provider  of excess insurance coverage or equivalent excess
 coverage shall notify the superintendent of financial services  and  the
 commissioner  of  health or their designee of each physician and dentist
 eligible for purchase of a  policy  for  excess  insurance  coverage  or
 equivalent  excess coverage covering the period July 1, 1992 to June 30,
 1993, or covering the period July 1, 1993 to June 30, 1994, or  covering
 the period July 1, 1994 to June 30, 1995, or covering the period July 1,
 1995  to  June 30, 1996, or covering the period July 1, 1996 to June 30,
 1997, or covering the period July 1, 1997 to June 30, 1998, or  covering
 the period July 1, 1998 to June 30, 1999, or covering the period July 1,
 1999  to  June 30, 2000, or covering the period July 1, 2000 to June 30,
 2001, or covering the period July 1, 2001 to October 29, 2001, or cover-
 ing the period April 1, 2002 to June 30, 2002, or  covering  the  period
 July  1,  2002  to June 30, 2003, or covering the period July 1, 2003 to
 June 30, 2004, or covering the period July 1, 2004 to June 30, 2005,  or
 covering the period July 1, 2005 to June 30, 2006, or covering the peri-
 od July 1, 2006 to June 30, 2007, or covering the period July 1, 2007 to
 June  30, 2008, or covering the period July 1, 2008 to June 30, 2009, or
 covering the period July 1, 2009 to June 30, 2010, or covering the peri-
 od July 1, 2010 to June 30, 2011, or covering the period July 1, 2011 to
 June 30, 2012, or covering the period July 1, 2012 to June 30, 2013,  or
 covering the period July 1, 2013 to June 30, 2014, or covering the peri-
 od July 1, 2014 to June 30, 2015, or covering the period July 1, 2015 to
 June  30, 2016, or covering the period July 1, 2016 to June 30, 2017, OR
 COVERING THE PERIOD JULY 1, 2017 TO JUNE 30, 2018 that has made  payment
 to  such  provider  of  excess  insurance  coverage or equivalent excess
 coverage in accordance with paragraph (b) of  this  subdivision  and  of
 each  physician and dentist who has failed, refused or neglected to make
 such payment.
   (e) A provider of  excess  insurance  coverage  or  equivalent  excess
 coverage  shall  refund to the hospital excess liability pool any amount
 allocable to the period July 1, 1992 to June 30, 1993, and to the period
 July 1, 1993 to June 30, 1994, and to the period July 1,  1994  to  June
 30,  1995,  and  to the period July 1, 1995 to June 30, 1996, and to the
 period July 1, 1996 to June 30, 1997, and to the period July 1, 1997  to
 June  30,  1998, and to the period July 1, 1998 to June 30, 1999, and to
 the period July 1, 1999 to June 30, 2000, and to the period July 1, 2000

 S. 2009                            67                            A. 3009
 
 to June 30, 2001, and to the period July 1, 2001 to  October  29,  2001,
 and to the period April 1, 2002 to June 30, 2002, and to the period July
 1,  2002  to  June  30, 2003, and to the period July 1, 2003 to June 30,
 2004, and to the period July 1, 2004 to June 30, 2005, and to the period
 July  1,  2005  to June 30, 2006, and to the period July 1, 2006 to June
 30, 2007, and to the period July 1, 2007 to June 30, 2008,  and  to  the
 period  July 1, 2008 to June 30, 2009, and to the period July 1, 2009 to
 June 30, 2010, and to the period July 1, 2010 to June 30, 2011,  and  to
 the period July 1, 2011 to June 30, 2012, and to the period July 1, 2012
 to  June  30, 2013, and to the period July 1, 2013 to June 30, 2014, and
 to the period July 1, 2014 to June 30, 2015, and to the period  July  1,
 2015  to  June  30,  2016,  [and] to the period July 1, 2016 to June 30,
 2017, AND TO THE PERIOD JULY 1, 2017 TO JUNE 30, 2018 received from  the
 hospital excess liability pool for purchase of excess insurance coverage
 or  equivalent  excess coverage covering the period July 1, 1992 to June
 30, 1993, and covering the period July 1, 1993 to  June  30,  1994,  and
 covering  the  period  July  1,  1994 to June 30, 1995, and covering the
 period July 1, 1995 to June 30, 1996, and covering the  period  July  1,
 1996  to June 30, 1997, and covering the period July 1, 1997 to June 30,
 1998, and covering the period July 1, 1998 to June 30, 1999, and  cover-
 ing  the  period  July 1, 1999 to June 30, 2000, and covering the period
 July 1, 2000 to June 30, 2001, and covering the period July 1,  2001  to
 October  29,  2001,  and  covering  the period April 1, 2002 to June 30,
 2002, and covering the period July 1, 2002 to June 30, 2003, and  cover-
 ing  the  period  July 1, 2003 to June 30, 2004, and covering the period
 July 1, 2004 to June 30, 2005, and covering the period July 1,  2005  to
 June  30,  2006,  and covering the period July 1, 2006 to June 30, 2007,
 and covering the period July 1, 2007 to June 30, 2008, and covering  the
 period  July  1,  2008 to June 30, 2009, and covering the period July 1,
 2009 to June 30, 2010, and covering the period July 1, 2010 to June  30,
 2011,  and covering the period July 1, 2011 to June 30, 2012, and cover-
 ing the period July 1, 2012 to June 30, 2013, and  covering  the  period
 July  1,  2013 to June 30, 2014, and covering the period July 1, 2014 to
 June 30, 2015, and covering the period July 1, 2015 to  June  30,  2016,
 and  covering the period July 1, 2016 to June 30, 2017, AND COVERING THE
 PERIOD JULY 1, 2017 TO JUNE 30, 2018 for a physician  or  dentist  where
 such   excess  insurance  coverage  or  equivalent  excess  coverage  is
 cancelled in accordance with paragraph (c) of this subdivision.
   § 4. Section 40 of chapter 266 of the laws of 1986, amending the civil
 practice law and rules  and  other  laws  relating  to  malpractice  and
 professional medical conduct, as amended by section 5 of part C of chap-
 ter 59 of the laws of 2016, is amended to read as follows:
   §  40.  The superintendent of financial services shall establish rates
 for policies providing coverage  for  physicians  and  surgeons  medical
 malpractice  for the periods commencing July 1, 1985 and ending June 30,
 [2017] 2018; provided, however, that notwithstanding any other provision
 of law, the superintendent shall not establish or approve  any  increase
 in  rates  for  the  period  commencing July 1, 2009 and ending June 30,
 2010. The superintendent shall direct insurers to  establish  segregated
 accounts  for premiums, payments, reserves and investment income attrib-
 utable to such premium periods and shall require periodic reports by the
 insurers regarding claims and expenses attributable to such  periods  to
 monitor whether such accounts will be sufficient to meet incurred claims
 and  expenses. On or after July 1, 1989, the superintendent shall impose
 a surcharge on premiums  to  satisfy  a  projected  deficiency  that  is
 attributable  to the premium levels established pursuant to this section

 S. 2009                            68                            A. 3009
 
 for such periods; provided, however, that such  annual  surcharge  shall
 not  exceed  eight  percent of the established rate until July 1, [2017]
 2018, at which time and thereafter such surcharge shall not exceed twen-
 ty-five  percent  of  the  approved  adequate rate, and that such annual
 surcharges shall continue for such period of time as shall be sufficient
 to satisfy such deficiency. The superintendent  shall  not  impose  such
 surcharge  during the period commencing July 1, 2009 and ending June 30,
 2010. On and after July  1,  1989,  the  surcharge  prescribed  by  this
 section  shall  be  retained by insurers to the extent that they insured
 physicians and surgeons during the July 1, 1985 through June 30,  [2017]
 2018  policy  periods;  in  the  event  and to the extent physicians and
 surgeons were insured by another insurer during such periods, all  or  a
 pro  rata  share of the surcharge, as the case may be, shall be remitted
 to such other insurer in accordance with rules  and  regulations  to  be
 promulgated by the superintendent.  Surcharges collected from physicians
 and  surgeons  who  were not insured during such policy periods shall be
 apportioned among all insurers in proportion to the premium  written  by
 each  insurer  during such policy periods; if a physician or surgeon was
 insured by an insurer subject to rates established by the superintendent
 during such policy periods, and  at  any  time  thereafter  a  hospital,
 health  maintenance organization, employer or institution is responsible
 for responding in damages for liability arising out of such  physician's
 or  surgeon's  practice  of medicine, such responsible entity shall also
 remit to such prior insurer the equivalent amount  that  would  then  be
 collected  as  a  surcharge if the physician or surgeon had continued to
 remain insured by such prior insurer. In  the  event  any  insurer  that
 provided  coverage  during  such  policy  periods is in liquidation, the
 property/casualty insurance security fund shall receive the  portion  of
 surcharges to which the insurer in liquidation would have been entitled.
 The surcharges authorized herein shall be deemed to be income earned for
 the  purposes of section 2303 of the insurance law.  The superintendent,
 in establishing adequate rates and in determining  any  projected  defi-
 ciency  pursuant  to  the requirements of this section and the insurance
 law, shall give substantial weight, determined  in  his  discretion  and
 judgment,  to  the  prospective  anticipated  effect  of any regulations
 promulgated and laws enacted and the  public  benefit  of    stabilizing
 malpractice rates and minimizing rate level fluctuation during the peri-
 od  of  time  necessary for the development of more reliable statistical
 experience as to the efficacy of such  laws  and  regulations  affecting
 medical, dental or podiatric malpractice enacted or promulgated in 1985,
 1986,  by this act and at any other time.  Notwithstanding any provision
 of the insurance law, rates already established and to be established by
 the superintendent pursuant to this section are deemed adequate if  such
 rates  would be adequate when taken together with the maximum authorized
 annual surcharges to be imposed for a reasonable period of time  whether
 or  not  any  such  annual surcharge has been actually imposed as of the
 establishment of such rates.
   § 5. Section 5 and subdivisions (a) and (e) of section 6 of part J  of
 chapter  63  of  the  laws  of 2001, amending chapter 266 of the laws of
 1986, amending the civil practice law and rules and other laws  relating
 to malpractice and professional medical conduct, as amended by section 6
 of  part  C  of  chapter  59 of the laws of 2016, are amended to read as
 follows:
   § 5. The superintendent of financial services and the commissioner  of
 health shall determine, no later than June 15, 2002, June 15, 2003, June
 15,  2004,  June  15, 2005, June 15, 2006, June 15, 2007, June 15, 2008,

 S. 2009                            69                            A. 3009
 
 June 15, 2009, June 15, 2010, June 15, 2011, June  15,  2012,  June  15,
 2013,  June 15, 2014, June 15, 2015, June 15, 2016, [and] June 15, 2017,
 AND JUNE 15, 2018 the amount of funds available in the  hospital  excess
 liability  pool,  created  pursuant  to section 18 of chapter 266 of the
 laws of 1986, and whether such funds  are  sufficient  for  purposes  of
 purchasing  excess  insurance coverage for eligible participating physi-
 cians and dentists during the period July 1, 2001 to June 30,  2002,  or
 July 1, 2002 to June 30, 2003, or July 1, 2003 to June 30, 2004, or July
 1,  2004  to June 30, 2005, or July 1, 2005 to June 30, 2006, or July 1,
 2006 to June 30, 2007, or July 1, 2007 to June 30, 2008, or July 1, 2008
 to June 30, 2009, or July 1, 2009 to June 30, 2010, or July 1,  2010  to
 June 30, 2011, or July 1, 2011 to June 30, 2012, or July 1, 2012 to June
 30,  2013, or July 1, 2013 to June 30, 2014, or July 1, 2014 to June 30,
 2015, or July 1, 2015 to June 30, 2016, or July  1,  2016  to  June  30,
 2017, OR TO JULY 1, 2017 TO JUNE 30, 2018 as applicable.
   (a)  This section shall be effective only upon a determination, pursu-
 ant to section five of this act,  by  the  superintendent  of  financial
 services  and  the  commissioner  of health, and a certification of such
 determination to the state director of the  budget,  the  chair  of  the
 senate  committee  on finance and the chair of the assembly committee on
 ways and means, that the amount of funds in the hospital excess  liabil-
 ity  pool,  created pursuant to section 18 of chapter 266 of the laws of
 1986, is insufficient for purposes of purchasing excess insurance cover-
 age for eligible participating physicians and dentists during the period
 July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 2003, or July
 1, 2003 to June 30, 2004, or July 1, 2004 to June 30, 2005, or  July  1,
 2005 to June 30, 2006, or July 1, 2006 to June 30, 2007, or July 1, 2007
 to  June  30, 2008, or July 1, 2008 to June 30, 2009, or July 1, 2009 to
 June 30, 2010, or July 1, 2010 to June 30, 2011, or July 1, 2011 to June
 30, 2012, or July 1, 2012 to June 30, 2013, or July 1, 2013 to June  30,
 2014,  or  July  1,  2014  to June 30, 2015, or July 1, 2015 to June 30,
 2016, or July 1, 2016 to June 30, 2017, OR JULY 1, 2017 TO JUNE 30, 2018
 as applicable.
   (e) The commissioner of health  shall  transfer  for  deposit  to  the
 hospital excess liability pool created pursuant to section 18 of chapter
 266  of  the laws of 1986 such amounts as directed by the superintendent
 of financial services for the purchase  of  excess  liability  insurance
 coverage  for  eligible  participating  physicians  and dentists for the
 policy year July 1, 2001 to June 30, 2002, or July 1, 2002 to  June  30,
 2003,  or  July  1,  2003  to June 30, 2004, or July 1, 2004 to June 30,
 2005, or July 1, 2005 to June 30, 2006, or July  1,  2006  to  June  30,
 2007,  as  applicable, and the cost of administering the hospital excess
 liability pool for such applicable policy year,  pursuant to the program
 established in chapter 266 of the laws of 1986,  as  amended,  no  later
 than  June  15,  2002, June 15, 2003, June 15, 2004, June 15, 2005, June
 15, 2006, June 15, 2007, June 15, 2008, June 15, 2009,  June  15,  2010,
 June  15,  2011,  June  15, 2012, June 15, 2013, June 15, 2014, June 15,
 2015, June 15, 2016, [and] June 15, 2017, AND JUNE 15, 2018 as  applica-
 ble.
   § 6. Notwithstanding any law, rule or regulation to the contrary, only
 physicians  or  dentists who were eligible, and for whom the superinten-
 dent of financial services and the  commissioner  of  health,  or  their
 designee, purchased, with funds available in the hospital excess liabil-
 ity  pool,  a  full  or partial policy for excess coverage or equivalent
 excess coverage for the coverage period ending the  thirtieth  of  June,
 two thousand seventeen, shall be eligible to apply for such coverage for

 S. 2009                            70                            A. 3009

 the coverage period beginning the first of July, two thousand seventeen;
 provided,  however,  if  the  total number of physicians or dentists for
 whom such excess coverage or equivalent excess  coverage  was  purchased
 for the policy year ending the thirtieth of June, two thousand seventeen
 exceeds the total number of physicians or dentists certified as eligible
 for the coverage period beginning the first of July, two thousand seven-
 teen,  then the general hospitals may certify additional eligible physi-
 cians or dentists in a number equal to such general  hospital's  propor-
 tional  share  of  the  total  number of physicians or dentists for whom
 excess coverage or equivalent excess coverage was purchased  with  funds
 available  in  the hospital excess liability pool as of the thirtieth of
 June, two thousand seventeen, as applied to the difference  between  the
 number  of  eligible physicians or dentists for whom a policy for excess
 coverage or equivalent excess coverage was purchased  for  the  coverage
 period  ending  the  thirtieth  of  June, two thousand seventeen and the
 number of such eligible physicians or  dentists  who  have  applied  for
 excess  coverage  or  equivalent excess coverage for the coverage period
 beginning the first of July, two thousand seventeen.
   § 7. The tax law is amended by adding a new section 171-w to  read  as
 follows:
   §  171-W. ENFORCEMENT OF DELINQUENT TAX LIABILITIES THROUGH TAX CLEAR-
 ANCES.  (1) FOR THE PURPOSES OF THIS SECTION, THE TERM "TAX LIABILITIES"
 SHALL MEAN ANY TAX, SURCHARGE, OR FEE ADMINISTERED BY THE  COMMISSIONER,
 OR  ANY  PENALTY  OR  INTEREST ON SUCH TAX, SURCHARGE OR FEE, OWED BY AN
 INDIVIDUAL OR ENTITY. THE TERM  "PAST-DUE  TAX  LIABILITIES"  MEANS  ANY
 UNPAID  TAX  LIABILITIES  THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE
 TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR  JUDICIAL  REVIEW.
 THE  TERM "GOVERNMENT ENTITY" MEANS THE STATE OF NEW YORK, OR ANY OF ITS
 AGENCIES, POLITICAL SUBDIVISIONS, INSTRUMENTALITIES, PUBLIC CORPORATIONS
 (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT
 WITH ANOTHER STATE OR CANADA), OR COMBINATION THEREOF.
   (2) THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL COOPERATE WITH ANY
 GOVERNMENT ENTITY THAT IS REQUIRED BY LAW OR HAS ELECTED TO REQUIRE  TAX
 CLEARANCES TO ESTABLISH PROCEDURES BY WHICH THE DEPARTMENT SHALL RECEIVE
 A  TAX  CLEARANCE REQUEST AND TRANSMIT SUCH TAX CLEARANCE TO THE GOVERN-
 MENT ENTITY, AND ANY OTHER PROCEDURES DEEMED NECESSARY TO CARRY OUT  THE
 PROVISIONS  OF THIS SECTION. THESE PROCEDURES SHALL, TO THE EXTENT PRAC-
 TICABLE, REQUIRE SECURE ELECTRONIC COMMUNICATION BETWEEN THE  DEPARTMENT
 AND  THE REQUESTING GOVERNMENT ENTITY FOR THE TRANSMISSION OF TAX CLEAR-
 ANCE REQUESTS TO THE DEPARTMENT AND TRANSMISSION OF  TAX  CLEARANCES  TO
 THE REQUESTING ENTITY.  NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, A
 GOVERNMENT  ENTITY  SHALL  BE  AUTHORIZED TO SHARE ANY APPLICANT DATA OR
 INFORMATION WITH THE DEPARTMENT THAT IS NECESSARY TO ENSURE  THE  PROPER
 MATCHING  OF  THE APPLICANT TO THE TAX RECORDS MAINTAINED BY THE DEPART-
 MENT.
   (3) UPON RECEIPT OF A TAX  CLEARANCE  REQUEST,  THE  DEPARTMENT  SHALL
 EXAMINE  ITS  RECORDS TO DETERMINE WHETHER THE SUBJECT OF THE TAX CLEAR-
 ANCE REQUEST HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS  OF  THE
 DOLLAR  THRESHOLD APPLICABLE FOR SUCH TAX CLEARANCE REQUEST OR, WHERE NO
 THRESHOLD HAS BEEN ESTABLISHED BY LAW  OR  OTHERWISE,  EQUAL  TO  OR  IN
 EXCESS  OF  FIVE  HUNDRED  DOLLARS.  WHEN  A  TAX  CLEARANCE  REQUEST SO
 REQUIRES, THE DEPARTMENT SHALL ALSO DETERMINE WHETHER (I) THE SUBJECT OF
 SUCH REQUEST HAS COMPLIED WITH APPLICABLE TAX RETURN FILING REQUIREMENTS
 FOR EACH OF THE PAST THREE YEARS; AND/OR (II) WHETHER A SUBJECT OF  SUCH
 REQUEST  THAT  IS  AN  INDIVIDUAL OR ENTITY THAT IS A PERSON REQUIRED TO
 REGISTER PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS  CHAPTER

 S. 2009                            71                            A. 3009
 
 IS  REGISTERED PURSUANT TO SUCH SECTION. THE DEPARTMENT SHALL DENY A TAX
 CLEARANCE IF IT DETERMINES THAT THE SUBJECT OF A TAX  CLEARANCE  REQUEST
 HAS  PAST-DUE  TAX  LIABILITIES  EQUAL TO OR IN EXCESS OF THE APPLICABLE
 THRESHOLD  OR,  WHEN  THE  TAX  CLEARANCE  REQUEST  SO REQUIRES, HAS NOT
 COMPLIED WITH APPLICABLE RETURN FILING AND/OR REGISTRATION REQUIREMENTS.
   (4) IF A TAX CLEARANCE IS DENIED, THE GOVERNMENT ENTITY THAT REQUESTED
 THE CLEARANCE SHALL PROVIDE NOTICE  TO  THE  APPLICANT  TO  CONTACT  THE
 DEPARTMENT. SUCH NOTICE SHALL BE MADE BY FIRST CLASS MAIL WITH A CERTIF-
 ICATE OF MAILING AND A COPY OF SUCH NOTICE ALSO SHALL BE PROVIDED TO THE
 DEPARTMENT.  WHEN  THE APPLICANT CONTACTS THE DEPARTMENT, THE DEPARTMENT
 SHALL INFORM THE APPLICANT OF THE BASIS FOR THE DENIAL OF THE TAX CLEAR-
 ANCE AND SHALL ALSO INFORM THE APPLICANT (I) THAT A TAX CLEARANCE DENIED
 DUE TO PAST-DUE TAX LIABILITIES MAY BE ISSUED ONCE  THE  TAXPAYER  FULLY
 SATISFIES  PAST-DUE TAX LIABILITIES OR MAKES PAYMENT ARRANGEMENTS SATIS-
 FACTORY TO THE COMMISSIONER; (II) THAT A TAX  CLEARANCE  DENIED  DUE  TO
 FAILURE  TO FILE TAX RETURNS MAY BE ISSUED ONCE THE APPLICANT HAS SATIS-
 FIED THE APPLICABLE RETURN FILING REQUIREMENTS; (III) THAT A TAX  CLEAR-
 ANCE  DENIED  FOR FAILURE TO REGISTER PURSUANT TO SECTION ELEVEN HUNDRED
 THIRTY-FOUR OF THIS CHAPTER MAY BE ISSUED ONCE THE APPLICANT HAS  REGIS-
 TERED PURSUANT TO SUCH SECTION; AND (IV) THE GROUNDS FOR CHALLENGING THE
 DENIAL OF A TAX CLEARANCE LISTED IN SUBDIVISION FIVE OF THIS SECTION.
   (5)  (A)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, AND EXCEPT AS
 SPECIFICALLY PROVIDED HEREIN, AN APPLICANT DENIED A TAX CLEARANCE  SHALL
 HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR SEEK ANY OTHER
 LEGAL  RECOURSE  AGAINST THE DEPARTMENT OR THE GOVERNMENT ENTITY RELATED
 TO THE DENIAL OF A TAX CLEARANCE BY THE DEPARTMENT.
   (B) AN APPLICANT SEEKING TO CHALLENGE THE DENIAL OF  A  TAX  CLEARANCE
 MUST  PROTEST  TO THE DEPARTMENT OR THE DIVISION OF TAX APPEALS NO LATER
 THAN SIXTY DAYS FROM THE DATE OF THE NOTIFICATION TO THE APPLICANT  THAT
 THE  TAX  CLEARANCE  WAS DENIED. AN APPLICANT MAY CHALLENGE A DEPARTMENT
 FINDING OF PAST-DUE TAX LIABILITIES ONLY ON THE  GROUNDS  THAT  (I)  THE
 INDIVIDUAL  OR  ENTITY DENIED THE TAX CLEARANCE IS NOT THE INDIVIDUAL OR
 ENTITY WITH THE PAST-DUE TAX LIABILITIES AT ISSUE; (II) THE PAST-DUE TAX
 LIABILITIES WERE  SATISFIED;  (III)  THE  APPLICANT'S  WAGES  ARE  BEING
 GARNISHED FOR THE PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL
 SUPPORT  PURSUANT  TO  AN  INCOME  EXECUTION  ISSUED PURSUANT TO SECTION
 FIFTY-TWO HUNDRED FORTY-ONE OR FIFTY-TWO HUNDRED FORTY-TWO OF THE  CIVIL
 PRACTICE  LAW  AND  RULES OR ANOTHER STATE'S INCOME WITHHOLDING ORDER AS
 AUTHORIZED UNDER PART FIVE OF ARTICLE FIVE-B OF THE FAMILY COURT ACT, OR
 GARNISHED BY THE DEPARTMENT FOR THE PAYMENT OF THE PAST-DUE TAX  LIABIL-
 ITIES  AT  ISSUE; OR (IV) THE APPLICANT IS MAKING CHILD SUPPORT PAYMENTS
 OR COMBINED CHILD AND SPOUSAL SUPPORT PAYMENTS PURSUANT TO  A  SATISFAC-
 TORY  PAYMENT  ARRANGEMENT  UNDER  SECTION  ONE  HUNDRED ELEVEN-B OF THE
 SOCIAL SERVICES LAW WITH A SUPPORT COLLECTION UNIT OR  OTHERWISE  MAKING
 PERIODIC  PAYMENTS  IN ACCORDANCE WITH SECTION FOUR HUNDRED FORTY OF THE
 FAMILY COURT ACT. AN APPLICANT MAY CHALLENGE  A  DEPARTMENT  FINDING  OF
 FAILURE  TO  COMPLY  WITH  TAX  RETURN  FILING  REQUIREMENTS ONLY ON THE
 GROUNDS THAT ALL REQUIRED TAX RETURNS HAVE BEEN FILED FOR  EACH  OF  THE
 PAST THREE YEARS.
   (C)  NOTHING  IN  THIS  SUBDIVISION IS INTENDED TO LIMIT ANY APPLICANT
 FROM SEEKING RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION
 SIX HUNDRED FIFTY-FOUR OF THIS CHAPTER, TO THE EXTENT THAT HE OR SHE  IS
 ELIGIBLE  PURSUANT  TO  THAT  SECTION, OR ESTABLISHING TO THE DEPARTMENT
 THAT THE ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS  BEEN  STAYED
 BY  THE  FILING  OF  A  PETITION PURSUANT TO THE BANKRUPTCY CODE OF 1978
 (TITLE ELEVEN OF THE UNITED STATES CODE).

 S. 2009                            72                            A. 3009
 
   (6) NOTWITHSTANDING ANY OTHER PROVISION OF  LAW,  THE  DEPARTMENT  MAY
 EXCHANGE  WITH  A GOVERNMENT ENTITY ANY DATA OR INFORMATION THAT, IN THE
 DISCRETION OF THE COMMISSIONER, IS NECESSARY FOR THE IMPLEMENTATION OF A
 TAX CLEARANCE REQUIREMENT. HOWEVER, NO GOVERNMENT ENTITY MAY RE-DISCLOSE
 THIS  INFORMATION  TO  ANY  OTHER  ENTITY  OR PERSON, OTHER THAN FOR THE
 PURPOSE OF INFORMING THE APPLICANT THAT A  REQUIRED  TAX  CLEARANCE  HAS
 BEEN DENIED, UNLESS OTHERWISE PERMITTED BY LAW.
   (7)  EXCEPT  AS  OTHERWISE PROVIDED IN THIS SECTION, THE ACTIVITIES TO
 COLLECT PAST-DUE TAX LIABILITIES UNDERTAKEN BY THE  DEPARTMENT  PURSUANT
 TO  THIS  SECTION  SHALL  NOT  IN  ANY WAY LIMIT, RESTRICT OR IMPAIR THE
 DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT OR ENFORCE TAX
 LIABILITIES UNDER ANY OTHER APPLICABLE PROVISION OF LAW.
   § 8. This act shall take effect immediately.

                                  PART X
 
   Section 1. Section 2 of part Q of chapter 59  of  the  laws  of  2013,
 amending  the  tax  law,  relating  to  serving an income execution with
 respect to individual tax debtors without filing a warrant,  as  amended
 by section 1 of part DD of chapter 59 of the laws of 2015, is amended to
 read as follows:
   §  2.  This act shall take effect immediately [and shall expire and be
 deemed repealed on and after April 1, 2017].
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 1, 2017.
 
                                  PART Y
 
   Section  1.  Subdivision 1-A of section 208 of the tax law, as amended
 by section 4 of part A of chapter 59 of the laws of 2014, is amended  to
 read as follows:
   1-A.  The  term  "New  York  S corporation" means, with respect to any
 taxable year, a corporation subject to tax under this article [for which
 an election is in effect pursuant  to  subsection  (a)  of  section  six
 hundred sixty of this chapter for such year] AND DESCRIBED IN SUBSECTION
 (B)  OF  SECTION  SIX  HUNDRED  SIXTY OF THIS CHAPTER, AND any such year
 shall be denominated a "New York S year"[, and such  election  shall  be
 denominated  a "New York S election"]. The term "New York C corporation"
 means, with respect to any taxable year, a corporation  subject  to  tax
 under  this  article which is not a New York S corporation, and any such
 year shall be denominated a "New York C  year".  The  term  "termination
 year"  means  any  taxable year of a corporation during which the CORPO-
 RATION'S STATUS AS A New York S [election] CORPORATION terminates  on  a
 day  other  than  the first day of such year. The portion of the taxable
 year ending before the first day for which such termination is effective
 shall be denominated the "S short year", and the portion  of  such  year
 beginning on such first day shall be denominated the "C short year". The
 term  "New  York S termination year" means any termination year which is
 [not] also an S termination year for federal purposes.
   § 2. Subdivision 1-B, paragraph (ii)  of  the  opening  paragraph  and
 paragraph  (k)  of  subdivision  9  of  section  208  of the tax law are
 REPEALED.
   § 3. Subdivision 1 of section 210-A of the  tax  law,  as  amended  by
 section  21  of  part T of chapter 59 of the laws of 2015, is amended to
 read as follows:

 S. 2009                            73                            A. 3009
 
   1. General. Business income and capital shall be  apportioned  to  the
 state  by  the apportionment factor determined pursuant to this section.
 The apportionment factor is a fraction,  determined  by  including  only
 those receipts, net income, net gains, and other items described in this
 section  that are included in the computation of the taxpayer's business
 income (determined  without  regard  to  the  modification  provided  in
 subparagraph  nineteen  of  paragraph (a) of subdivision nine of section
 two hundred eight of this article) for the taxable year.  The  numerator
 of  the  apportionment  fraction  shall  be  equal to the sum of all the
 amounts required to  be  included  in  the  numerator  pursuant  to  the
 provisions  of  this  section  and  the denominator of the apportionment
 fraction shall be equal to the sum of all the  amounts  required  to  be
 included  in the denominator pursuant to the provisions of this section.
 FOR A NEW YORK S CORPORATION, THE RECEIPTS INCLUDED IN THE APPORTIONMENT
 FRACTION ARE THOSE RECEIPTS, NET INCOME (NOT LESS THAN ZERO), NET  GAINS
 (NOT LESS THAN ZERO), AND OTHER ITEMS DESCRIBED IN THIS SECTION THAT ARE
 INCLUDED  IN  THE NEW YORK S CORPORATION'S NONSEPARATELY COMPUTED INCOME
 AND LOSS OR IN THE NEW YORK S CORPORATION'S SEPARATELY STATED  ITEMS  OF
 INCOME  AND LOSS, DETERMINED PURSUANT TO SUBDIVISION (A) OF SECTION 1366
 OF THE INTERNAL REVENUE CODE.
   § 4. Section 660 of the tax law, as amended by chapter 606 of the laws
 of 1984, subsections (a) and (h) as amended by section 73 of part  A  of
 chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as amended
 by section 51 of part A of chapter 389 of the laws of 1997, paragraphs 4
 and  5  as  added  and  paragraph  6  of subsection (b) as renumbered by
 section 52 of part A of chapter 389 of the laws of 1997, subsection  (d)
 as  added by chapter 760 of the laws of 1992, subsections (e) and (f) as
 added and subsection (g) as relettered by section 53 of part A of  chap-
 ter  389  of  the  laws of 1997, subsection (i) as added by section 1 of
 part L of chapter 60 of the laws of 2007, and paragraph 1 of  subsection
 (i)  as  amended  by  section  39 of part T of chapter 59 of the laws of
 2015, is amended to read as follows:
   § 660. [Election by shareholders of S corporations.] TAX TREATMENT  OF
 FEDERAL  S  CORPORATIONS. (a) [Election.] If a corporation is an [eligi-
 ble] S corporation DESCRIBED IN SUBSECTION  (B)  OF  THIS  SECTION,  the
 shareholders  of  the  corporation [may elect in the manner set forth in
 subsection (b) of this section to]  SHALL  take  into  account,  to  the
 extent  provided  for  in  this  article (or in article thirteen of this
 chapter, in the case of a shareholder which is  a  taxpayer  under  such
 article),  the  S  corporation  items  of  income,  loss,  deduction and
 reductions for taxes described in paragraphs two and three of subsection
 (f) of section thirteen hundred sixty-six of the internal  revenue  code
 which  are  taken  into  account for federal income tax purposes for the
 taxable year. [No election under  this  subsection  shall  be  effective
 unless all shareholders of the corporation have so elected. An eligible]
   (B) A NEW YORK S corporation is (i) [an S] A corporation THAT HAS MADE
 A  VALID ELECTION TO BE AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES
 PURSUANT TO SECTION 1362 OF THE INTERNAL REVENUE CODE which  is  subject
 to  tax  under  article  nine-A of this chapter, or (ii) [an S] A corpo-
 ration THAT HAS MADE A VALID ELECTION TO BE AN S CORPORATION FOR FEDERAL
 INCOME TAX PURPOSES PURSUANT TO SECTION 1362  OF  THE  INTERNAL  REVENUE
 CODE  which  is  the  parent  of  a qualified subchapter S subsidiary AS
 DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH  THREE  OF  SUBSECTION  (B)  OF
 SECTION  THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE subject
 to tax under article nine-A[, where  the  shareholders  of  such  parent
 corporation  are  entitled to make the election under this subsection by

 S. 2009                            74                            A. 3009

 reason of subparagraph three of paragraph (k)  of  subdivision  nine  of
 section two hundred eight] of this chapter.
   [(b)  Requirements  of  election.  An election under subsection (a) of
 this section shall be made on such form and in such manner  as  the  tax
 commission may prescribe by regulation or instruction.
   (1) When made. An election under subsection (a) of this section may be
 made at any time during the preceding taxable year of the corporation or
 at  any time during the taxable year of the corporation and on or before
 the fifteenth day of the third month of such taxable year.
   (2) Certain elections made during first two and one-half months. If an
 election made under subsection (a) of this section is made for any taxa-
 ble year of the corporation during  such  year  and  on  or  before  the
 fifteenth  day  of  the third month of such year, such election shall be
 treated as made for the following taxable year if
   (A) on one or more days in such taxable year before the day  on  which
 the  election  was made the corporation did not meet the requirements of
 subsection (b) of section thirteen hundred  sixty-one  of  the  internal
 revenue code or
   (B)  one or more of the shareholders who held stock in the corporation
 during such taxable year and  before  the  election  was  made  did  not
 consent to the election.
   (3) Elections made after first two and one-half months. If an election
 under subsection (a) of this section is made for any taxable year of the
 corporation  and  such  election  is made after the fifteenth day of the
 third month of such taxable year and on or before the fifteenth  day  of
 the  third  month  of the following taxable year, such election shall be
 treated as made for the following taxable year.
   (4) Taxable years of two and one-half months or less. For purposes  of
 this  subsection, an election for a taxable year made not later than two
 months and fifteen days after the first day of the taxable year shall be
 treated as timely made during such year.
   (5) Authority to treat late elections, etc.,  as  timely.  If  (A)  an
 election  under  subsection  (a) of this section is made for any taxable
 year (determined without regard to paragraph three of  this  subsection)
 after  the  date  prescribed by this subsection for making such election
 for such taxable year, or if no such election is made  for  any  taxable
 year, and
   (B)  the  commissioner  determines that there was reasonable cause for
 failure to timely make such election, then
   (C) the commissioner may treat such an election  as  timely  made  for
 such  taxable  year  (and  paragraph  three of this subsection shall not
 apply).
   (6) Years for which effective. An election  under  subsection  (a)  of
 this  section shall be effective for the taxable year of the corporation
 for which it is made and for all succeeding taxable years of the  corpo-
 ration  until  such  election is terminated under subsection (c) of this
 section.]
   (c) Termination. An [election under subsection (a) of this section]  S
 CORPORATION shall cease to be [effective
   (1)] A NEW YORK S CORPORATION on the day an election to be an S corpo-
 ration  ceases  to be effective for federal income tax purposes pursuant
 to subsection (d) of section thirteen hundred sixty-two of the  internal
 revenue code[, or
   (2)  if shareholders holding more than one-half of the shares of stock
 of the corporation on the day on which the  revocation  is  made  revoke

 S. 2009                            75                            A. 3009

 such  election  in  the manner the tax commission may prescribe by regu-
 lation,
   (A)  on  the  first day of the taxable year of the corporation, if the
 revocation is made during  such  taxable  year  and  on  or  before  the
 fifteenth day of the third month thereof, or
   (B) on the first day of the following taxable year of the corporation,
 if  the  revocation  is  made  during  the  taxable  year  but after the
 fifteenth day of the third month thereof, or
   (C) on and after the date so specified, if the revocation specifies  a
 date for revocation which is on or after the day on which the revocation
 is made, or
   (3)  if any person who was not a shareholder of the corporation on the
 day on which the election is made becomes a shareholder  in  the  corpo-
 ration  and  affirmatively  refuses  to  consent to such election in the
 manner the tax commission may prescribe by regulation, on the  day  such
 person becomes a shareholder].
   (d)  New  York  S termination year. In the case of a New York S termi-
 nation year, the amount of any item of S corporation  income,  loss  and
 deduction  and  reductions for taxes (as described in paragraphs two and
 three of subsection (f) of section thirteen  hundred  sixty-six  of  the
 internal  revenue code) required to be taken account of under this arti-
 cle shall be adjusted in the same manner that the S corporation's  items
 which  are  included  in the shareholder's federal adjusted gross income
 are adjusted under subsection (s) of section six hundred twelve.
   (e)  [Inadvertent  invalid  elections.  If  (1)  an   election   under
 subsection  (a)  of  this section was not effective for the taxable year
 for which made (determined without regard to paragraph two of subsection
 (b) of this section) by  reason  of  a  failure  to  obtain  shareholder
 consents,
   (2)  the  commissioner  determines that the circumstances resulting in
 such ineffectiveness were inadvertent,
   (3) no later than a reasonable period of time after discovery  of  the
 circumstances  resulting  in  such  ineffectiveness, steps were taken to
 acquire the required shareholder consents, and
   (4) the corporation, and each person who  was  a  shareholder  in  the
 corporation  at  any  time  during the period specified pursuant to this
 subsection, agrees to make such adjustments (consistent with the  treat-
 ment  of the corporation as a New York S corporation) as may be required
 by the commissioner with respect to such period,
   (5) then, notwithstanding the circumstances resulting in such ineffec-
 tiveness, such corporation shall be treated as a New York S  corporation
 during the period specified by the commissioner.
   (f)  Validated  federal elections. If (1) an election under subsection
 (a) of this section was made for a taxable year or  years  of  a  corpo-
 ration, which years occur with or within the period for which the feder-
 al  S  election  of  such corporation has been validated pursuant to the
 provisions of subsection (f) of section thirteen  hundred  sixty-two  of
 the internal revenue code, and
   (2)  the  corporation,  and  each  person who was a shareholder in the
 corporation at any time during such taxable year or years agrees to make
 such adjustments (consistent with the treatment of the corporation as  a
 New  York  S  corporation)  as  may be required by the commissioner with
 respect to such year or years,
   (3) then such corporation shall be treated as a New York S corporation
 during such year or years.

 S. 2009                            76                            A. 3009

   (g) Transitional rule. Any election made under  this  section  (as  in
 effect  for  taxable  years  beginning  before  January  first, nineteen
 hundred eighty-three)  shall  be  treated  as  an  election  made  under
 subsection (a) of this section.
   (h)]  QUALIFIED  SUBCHAPTER  S  SUBSIDIARIES.  IF AN S CORPORATION HAS
 ELECTED TO TREAT ITS WHOLLY OWNED SUBSIDIARY AS A QUALIFIED SUBCHAPTER S
 SUBSIDIARY FOR FEDERAL INCOME TAX  PURPOSES  UNDER  PARAGRAPH  THREE  OF
 SUBSECTION  (B)  OF  SECTION  1361  OF  THE  INTERNAL REVENUE CODE, SUCH
 ELECTION SHALL BE APPLICABLE FOR NEW YORK STATE TAX PURPOSES AND
   (1) THE ASSETS, LIABILITIES, INCOME,  DEDUCTIONS,  PROPERTY,  PAYROLL,
 RECEIPTS, CAPITAL, CREDITS, AND ALL OTHER TAX ATTRIBUTES AND ELEMENTS OF
 ECONOMIC  ACTIVITY  OF THE SUBSIDIARY SHALL BE DEEMED TO BE THOSE OF THE
 PARENT CORPORATION,
   (2) TRANSACTIONS BETWEEN THE PARENT CORPORATION  AND  THE  SUBSIDIARY,
 INCLUDING THE PAYMENT OF INTEREST AND DIVIDENDS, SHALL NOT BE TAKEN INTO
 ACCOUNT, AND
   (3) GENERAL EXECUTIVE OFFICERS OF THE SUBSIDIARY SHALL BE DEEMED TO BE
 GENERAL EXECUTIVE OFFICERS OF THE PARENT CORPORATION.
   (F)  Cross reference.  For definitions relating to S corporations, see
 subdivision one-A of section two hundred eight of this chapter.
   [(i) Mandated New York S corporation election.    (1)  Notwithstanding
 the  provisions  in  subsection  (a)  of this section, in the case of an
 eligible S corporation for which the election under  subsection  (a)  of
 this  section  is not in effect for the current taxable year, the share-
 holders of an eligible S  corporation  are  deemed  to  have  made  that
 election effective for the eligible S corporation's entire current taxa-
 ble  year,  if  the  eligible  S corporation's investment income for the
 current taxable year is more than fifty percent  of  its  federal  gross
 income  for  such year. In determining whether an eligible S corporation
 is deemed to have made that election, the income of a qualified subchap-
 ter S subsidiary owned directly or indirectly by the eligible  S  corpo-
 ration shall be included with the income of the eligible S corporation.
   (2)  For  the purposes of this subsection, the term "eligible S corpo-
 ration" has the same definition as in subsection (a) of this section.
   (3) For the purposes of this subsection, the term "investment  income"
 means the sum of an eligible S corporation's gross income from interest,
 dividends,  royalties,  annuities, rents and gains derived from dealings
 in property, including the corporation's share  of  such  items  from  a
 partnership, estate or trust, to the extent such items would be includa-
 ble in federal gross income for the taxable year.
   (4)  Estimated  tax  payments.  When  making  estimated  tax  payments
 required to be made under this chapter in  the  current  tax  year,  the
 eligible  S  corporation and its shareholders may rely on the eligible S
 corporation's filing status for the prior year. If the eligible S corpo-
 ration's filing status changes from the prior tax year  the  corporation
 or  the  shareholders, as the case may be, which made the payments shall
 be entitled to a refund of such estimated tax payments.  No additions to
 tax with respect to any required declarations or payments  of  estimated
 tax  imposed  under  this chapter shall be imposed on the corporation or
 shareholders, whichever is the taxpayer for the current taxable year, if
 the corporation or the shareholders file such declarations and make such
 estimated tax payments by January fifteenth of  the  following  calendar
 year,  regardless  of whether the taxpayer's tax year is a calendar or a
 fiscal year.]

 S. 2009                            77                            A. 3009
 
   § 5. Subparagraph (A) of paragraph 18 of subsection (b) of section 612
 of the tax law, as amended by chapter 28 of the laws of 1987, is amended
 to read as follows:
   (A)  [where the election provided for in subsection (a) of section six
 hundred sixty is in effect with respect to such corporation] THAT  IS  A
 NEW  YORK  S  CORPORATION,  an amount equal to his pro rata share of the
 corporation's reductions for taxes described in paragraphs two and three
 of subsection (f) of section thirteen hundred sixty-six of the  internal
 revenue code, and
   §  6.  Paragraph 19 of subsection (b) of section 612 of the tax law is
 REPEALED.
   § 7. Paragraphs 20 and 21 of subsection (b) of section 612 of the  tax
 law,  paragraph  20  as  amended  by chapter 606 of the laws of 1984 and
 paragraph 21 as amended by section 70 of part A of  chapter  59  of  the
 laws of 2014, are amended to read as follows:
   (20) S corporation distributions to the extent not included in federal
 gross  income for the taxable year because of the application of section
 thirteen hundred sixty-eight, subsection (e) of section thirteen hundred
 seventy-one or subsection (c) of section thirteen  hundred  seventy-nine
 of  the  internal  revenue  code  which  represent income not previously
 subject to tax under this article because the election provided  for  in
 subsection  (a) of section six hundred sixty IN EFFECT FOR TAXABLE YEARS
 BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN had not been made.
 Any such distribution treated in the manner described in  paragraph  two
 of  subsection (b) of section thirteen hundred sixty-eight of the inter-
 nal revenue code for federal income tax purposes  shall  be  treated  as
 ordinary income for purposes of this article.
   (21)  In  relation  to  the  disposition of stock or indebtedness of a
 corporation which elected under subchapter  s  of  chapter  one  of  the
 internal  revenue  code  for any taxable year of such corporation begin-
 ning, in the case of a corporation taxable under article nine-A of  this
 chapter, after December thirty-first, nineteen hundred eighty AND BEFORE
 JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amount required to be added to
 federal  adjusted  gross  income  pursuant  to  subsection  (n)  of this
 section.
   § 8. Paragraph 21 of subsection (c) of section 612 of the tax law,  as
 amended  by  section  70 of part A of chapter 59 of the laws of 2014, is
 amended to read as follows:
   (21) In relation to the disposition of  stock  or  indebtedness  of  a
 corporation  which  elected  under  subchapter  s  of chapter one of the
 internal revenue code for any taxable year of  such  corporation  begin-
 ning,  in the case of a corporation taxable under article nine-A of this
 chapter, after December thirty-first, nineteen hundred eighty AND BEFORE
 JANUARY FIRST,  TWO  THOUSAND  EIGHTEEN,  the  amounts  required  to  be
 subtracted from federal adjusted gross income pursuant to subsection (n)
 of this section.
   §  9.  Paragraph 22 of subsection (c) of section 612 of the tax law is
 REPEALED.
   § 10. Subsection (e) of section 612 of the  tax  law,  as  amended  by
 chapter  166 of the laws of 1991 and paragraph 3 as added by chapter 760
 of the laws of 1992, is amended to read as follows:
   (e) Modifications of partners and shareholders of S corporations.  (1)
 Partners  and  shareholders  of S corporations [which are not New York C
 corporations]. The amounts of modifications required to  be  made  under
 this  section  by  a  partner  or  by  a shareholder of an S corporation
 [(other than an S corporation which is a New York C corporation)], which

 S. 2009                            78                            A. 3009
 
 relate to partnership or S corporation items of income,  gain,  loss  or
 deduction  shall  be determined under section six hundred seventeen and,
 in the case of a partner of a partnership doing an insurance business as
 a  member  of  the  New York insurance exchange described in section six
 thousand two hundred one of the insurance law, under section six hundred
 seventeen-a of this article.
   (2) [Shareholders of S corporations which are New York C corporations.
 In the case of a shareholder of an S corporation which is a New  York  C
 corporation,  the  modifications  under this section which relate to the
 corporation's items of income,  loss  and  deduction  shall  not  apply,
 except  for  the  modifications  provided  under  paragraph  nineteen of
 subsection (b) and  paragraph  twenty-two  of  subsection  (c)  of  this
 section.
   (3)]  New  York S termination year. In the case of a New York S termi-
 nation year, the  amounts  of  the  modifications  required  under  this
 section  which  relate  to  the  S  corporation's items of income, loss,
 deduction and reductions for taxes (as described in paragraphs  two  and
 three  of  subsection  (f)  of section thirteen hundred sixty-six of the
 internal revenue code) shall be adjusted in the same manner that  the  S
 corporation's  items  are  adjusted under subsection (s) of [section six
 hundred twelve] THIS SECTION.
   § 11. Subsection (n) of section 612 of the  tax  law,  as  amended  by
 section  61  of part A of chapter 389 of the laws of 1997, is amended to
 read as follows:
   (n) Where gain or loss is recognized for federal income  tax  purposes
 upon  the disposition of stock or indebtedness of a corporation electing
 under subchapter s of chapter one of the internal revenue code
   (1) There shall be added to federal adjusted gross income  the  amount
 of increase in basis with respect to such stock or indebtedness pursuant
 to  subsection (a) of section thirteen hundred seventy-six of the inter-
 nal revenue code as such section was in effect for taxable years  begin-
 ning  before  January  first, nineteen hundred eighty-three and subpara-
 graphs (A) and (B)  of  paragraph  one  of  subsection  (a)  of  section
 thirteen  hundred sixty-seven of such code, for each taxable year of the
 corporation beginning, in the case of a corporation taxable under  arti-
 cle  nine-A  of  this  chapter,  after  December  thirty-first, nineteen
 hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN,  and  in
 the case of a corporation taxable under article thirty-two of this chap-
 ter, after December thirty-first, nineteen hundred ninety-six AND BEFORE
 JANUARY FIRST, TWO THOUSAND FIFTEEN, for which the election provided for
 in  subsection  (a) of section six hundred sixty of this article was not
 in effect, and
   (2) There shall be subtracted from federal adjusted gross income
   (A) the amount of reduction in basis with respect  to  such  stock  or
 indebtedness  pursuant  to  subsection  (b)  of section thirteen hundred
 seventy-six of the internal revenue code as such section was  in  effect
 for  taxable  years  beginning  before  January  first, nineteen hundred
 eighty-three  and  subparagraphs  (B)  and  (C)  of  paragraph  two   of
 subsection (a) of section thirteen hundred sixty-seven of such code, for
 each  taxable year of the corporation beginning, in the case of a corpo-
 ration taxable under article nine-A  of  this  chapter,  after  December
 thirty-first,  nineteen  hundred  eighty  AND  BEFORE JANUARY FIRST, TWO
 THOUSAND EIGHTEEN, and in the case of a corporation taxable under  arti-
 cle  thirty-two  of  this chapter, after December thirty-first, nineteen
 hundred ninety-six AND BEFORE JANUARY FIRST, TWO THOUSAND  FIFTEEN,  for

 S. 2009                            79                            A. 3009
 
 which the election provided for in subsection (a) of section six hundred
 sixty of this article was not in effect and
   (B)  the  amount  of  any  modifications  to federal gross income with
 respect to such stock pursuant to paragraph twenty of subsection (b)  of
 this section.
   §  12.  Subparagraph (E-1) of paragraph 1 of subsection (b) of section
 631 of the tax law, as added by section 3 of part C of chapter 57 of the
 laws of 2010, is amended to read as follows:
   (E-1) in the case of [an] A NEW  YORK  S  corporation  [for  which  an
 election  is in effect pursuant to subsection (a) of section six hundred
 sixty of this article] that terminates its taxable status in  New  York,
 any  income  or  gain  recognized  on  the  receipt  of payments from an
 installment sale contract  entered  into  when  the  S  corporation  was
 subject  to  tax  in New York, allocated in a manner consistent with the
 applicable methods and rules for  allocation  under  article  nine-A  or
 thirty-two  of  this chapter PRIOR TO ITS REPEAL, in the year that the S
 corporation sold its assets.
   § 13. The section heading and paragraph 2 of subsection (a) of section
 632 of the tax law, the section heading as amended by chapter 606 of the
 laws of 1984, paragraph 2 of subsection (a) as amended by section 71  of
 part  A of chapter 59 of the laws of 2014 and such section as renumbered
 by chapter 28 of the laws of 1987, are amended to read as follows:
   Nonresident partners and [electing] shareholders of S corporations.
   (2) In determining New York source income of a nonresident shareholder
 of [an] A NEW YORK S corporation [where the  election  provided  for  in
 subsection  (a)  of  section  six  hundred  sixty  of this article is in
 effect], there shall be  included  only  the  portion  derived  from  or
 connected  with New York sources of such shareholder's pro rata share of
 items of S corporation income, loss  and  deduction  entering  into  his
 federal  adjusted  gross  income,  increased  by  reductions  for  taxes
 described in paragraphs two and three of subsection (f) of section thir-
 teen hundred sixty-six of the internal revenue  code,  as  such  portion
 shall  be  determined  under  regulations of the commissioner consistent
 with the applicable methods  and  rules  for  allocation  under  article
 nine-A  of  this  chapter,  regardless  of  whether  or not such item or
 reduction is included in entire net income under article nine-A for  the
 tax  year. If a nonresident is a shareholder in [an] A NEW YORK S corpo-
 ration [where the election provided for in subsection (a) of section six
 hundred sixty of this article is in effect, and the S corporation]  THAT
 has  distributed an installment obligation under section 453(h)(1)(A) of
 the Internal Revenue Code, then any gain recognized on  the  receipt  of
 payments from the installment obligation for federal income tax purposes
 will be treated as New York source income allocated in a manner consist-
 ent  with  the applicable methods and rules for allocation under article
 nine-A of this chapter in the year that the assets were sold.  In  addi-
 tion,  if  the  shareholders  of the NEW YORK S corporation have made an
 election under section 338(h)(10) of the Internal Revenue Code, then any
 gain recognized on the deemed asset sale for federal income tax purposes
 will be treated as New York source income allocated in a manner consist-
 ent with the applicable methods and rules for allocation  under  article
 nine-A of this chapter in the year that the shareholder made the section
 338(h)(10) election. For purposes of a section 338(h)(10) election, when
 a  nonresident  shareholder  exchanges his or her S corporation stock as
 part of the deemed liquidation, any gain or  loss  recognized  shall  be
 treated  as the disposition of an intangible asset and will not increase

 S. 2009                            80                            A. 3009
 
 or offset any gain recognized on the deemed assets sale as a  result  of
 the section 338(h)(10) election.
   §  14.  Subparagraph (A) and the opening paragraph of subparagraph (B)
 of paragraph 5 of subdivision (a) of section 292  of  the  tax  law,  as
 added  by  section  48 of part A of chapter 389 of the laws of 1997, are
 amended to read as follows:
   (A) In the case of a shareholder of an S corporation,
   (i) [where the election provided for in subsection (a) of section  six
 hundred  sixty  of this chapter is in effect with respect to such corpo-
 ration] THAT IS A NEW YORK S CORPORATION, there shall be added to feder-
 al unrelated business taxable income an amount equal to  the  sharehold-
 er's  pro rata share of the corporation's reductions for taxes described
 in paragraphs two and  three  of  subsection  (f)  of  section  thirteen
 hundred sixty-six of the internal revenue code, and
   (ii)  [where  such  election  has  not  been made with respect to such
 corporation, there shall be subtracted from federal  unrelated  business
 taxable  income any items of income of the corporation included therein,
 and there shall be added to federal unrelated  business  taxable  income
 any items of loss or deduction included therein, and
   (iii)] in the case of a New York S termination year, the amount of any
 such  items  of S corporation income, loss, deduction and reductions for
 taxes shall be adjusted in the manner provided in paragraph two or three
 of subsection (s) of section six hundred twelve of this chapter.
   In the case of a shareholder of a corporation which was,  for  any  of
 its  taxable  years  beginning  after  nineteen hundred ninety-seven AND
 BEFORE TWO THOUSAND EIGHTEEN, a federal S corporation but a New  York  C
 corporation:
   §  15.  Transition  rules.  Any  prior  net  operating loss conversion
 subtraction pool and net  operating  loss  carryforward  that  otherwise
 would  have  been  allowed under subparagraph (viii) of paragraph (a) of
 subdivision 1 of section 210 of the tax law  and  subparagraph  (ix)  of
 paragraph  (a)  of  subdivision 1 of section 210 of the tax law, respec-
 tively, for the 2018 or subsequent taxable years, to any  taxpayer  that
 was  a  New  York C corporation for the 2017 taxable year, and becomes a
 New York S corporation for the 2018 taxable year  as  a  result  of  the
 amendments  made by this act, shall be held in abeyance and be available
 to such taxpayer if its election to be a federal S corporation is termi-
 nated. Further, any credit carryforwards that otherwise would have  been
 allowed  to  such  a taxpayer under section 210-B of the tax law for the
 2018 or subsequent taxable years shall be held in abeyance and be avail-
 able to such taxpayer if its election to be a federal S  corporation  is
 terminated. However, the taxpayer's taxable years as a New York S corpo-
 ration shall be counted for purposes of computing any time period appli-
 cable  to  the  allowance  of  the  prior  net operating loss conversion
 subtraction, the net operating loss deduction or  any  credit  carryfor-
 ward.
   §  16. This act shall take effect immediately and shall apply to taxa-
 ble years beginning on or after January 1, 2018.
 
                                  PART Z
 
   Section 1. Clause 1 of subparagraph (A) of paragraph 1  of  subsection
 (b)  of section 631 of the tax law, as added by section 1 of part F-1 of
 chapter 57 of the laws of 2009, is amended to read as follows:
   (1) For purposes of this subparagraph, the term "real property located
 in this state" includes an interest in a partnership, limited  liability

 S. 2009                            81                            A. 3009
 
 corporation,  S  corporation,  or non-publicly traded C corporation with
 one hundred or fewer shareholders (hereinafter the "entity")  that  owns
 real  property  that is located in New York [and has a fair market value
 that] OR OWNS SHARES OF STOCK IN A COOPERATIVE HOUSING CORPORATION WHERE
 THE  COOPERATIVE  UNITS  RELATING TO THE SHARES ARE LOCATED IN NEW YORK;
 PROVIDED, THAT THE SUM OF THE FAIR MARKET VALUES OF SUCH REAL  PROPERTY,
 COOPERATIVE  SHARES,  AND  RELATED  COOPERATIVE  UNITS equals or exceeds
 fifty percent of all the assets of the entity on the  date  of  sale  or
 exchange  of  the  taxpayer's interest in the entity.  Only those assets
 that the entity owned for at least two years before the date of the sale
 or exchange of the taxpayer's interest in the entity are to be  used  in
 determining the fair market value of all the assets of the entity on the
 date of sale or exchange. The gain or loss derived from New York sources
 from the taxpayer's sale or exchange of an interest in an entity that is
 subject to the provisions of this subparagraph is the total gain or loss
 for federal income tax purposes from that sale or exchange multiplied by
 a  fraction, the numerator of which is the fair market value of the real
 property, AND THE COOPERATIVE  HOUSING  CORPORATION  STOCK  AND  RELATED
 COOPERATIVE  UNITS  located  in New York on the date of sale or exchange
 and the denominator of which is the fair market value of all the  assets
 of the entity on the date of sale or exchange.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2017.
 
                                  PART AA
 
   Section  1.  Paragraph  1  of subsection (a) of section 632 of the tax
 law, as amended by chapter 28 of the laws of 1987, is amended to read as
 follows:
   (1) In determining New York source income of a nonresident partner  of
 any  partnership,  there shall be included only the portion derived from
 or connected with New York sources of such partner's distributive  share
 of  items  of partnership income, gain, loss and deduction entering into
 his federal adjusted gross income, as such portion shall  be  determined
 under  regulations  of the tax commission consistent with the applicable
 rules of section six hundred thirty-one OF THIS PART.  IF A  NONRESIDENT
 IS A PARTNER IN A PARTNERSHIP WHERE A SALE OR TRANSFER OF THE MEMBERSHIP
 INTEREST  OF  THE  PARTNER  IS SUBJECT TO THE PROVISIONS OF SECTION ONE-
 THOUSAND SIXTY OF THE INTERNAL REVENUE CODE, THEN ANY GAIN RECOGNIZED ON
 THE SALE OR TRANSFER FOR FEDERAL INCOME TAX PURPOSES SHALL BE TREATED AS
 NEW YORK SOURCE INCOME ALLOCATED IN A MANNER CONSISTENT WITH THE  APPLI-
 CABLE  METHODS  AND  RULES FOR ALLOCATION UNDER THIS ARTICLE IN THE YEAR
 THAT THE ASSETS WERE SOLD OR TRANSFERRED.
   § 2. This act shall take effect immediately
 
                                  PART BB
 
   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 OF THIS ARTICLE 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

 S. 2009                            82                            A. 3009
 
 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, OR BOOTH, AN INTER-
 NET WEBSITE, CATALOG, 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  OWNER-
 SHIP  INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN
 THE OTHER, OR WHERE AN OWNERSHIP INTEREST OF  MORE  THAN  FIVE  PERCENT,
 WHETHER  DIRECT  OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS BY ANOTHER
 PERSON OR BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED  PERSONS  WITH
 RESPECT  TO  EACH  OTHER.  NOTWITHSTANDING ANYTHING IN THIS PARAGRAPH, A
 PERSON WHO FACILITATES 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 FIFTEEN.
   (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  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.
   § 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

 S. 2009                            83                            A. 3009
 
 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  SUBDIVISION;  AND (II) SHALL KEEP SUCH RECORDS AND
 INFORMATION  AND  COOPERATE  WITH  THE COMMISSIONER TO ENSURE THE PROPER
 COLLECTION AND REMITTANCE OF TAX IMPOSED COLLECTED  OR  REQUIRED  TO  BE
 COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER.
   (2)  A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY TO
 COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY
 SUBJECT TO TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED  FIVE  OF
 THIS  ARTICLE  AND  SHALL NOT INCLUDE THE RECEIPTS FROM SUCH SALE IN ITS
 TAXABLE RECEIPTS FOR PURPOSES OF SECTION ELEVEN  HUNDRED  THIRTY-SIX  OF
 THIS  PART  IF,  IN  REGARD TO SUCH SALE: (I) THE MARKETPLACE SELLER CAN
 SHOW THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM  WHOM
 SUCH  SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE
 OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING  THAT
 THE  MARKETPLACE  PROVIDER  IS  REGISTERED TO COLLECT SALES TAX AND WILL
 COLLECT SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY  BY
 THE MARKETPLACE SELLER FACILITATED BY THE 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  THE  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  MARKETPLACE  PROVIDER  ARE AFFILIATED WITHIN THE MEANING OF

 S. 2009                            84                            A. 3009
 
 PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE  OF  THIS
 ARTICLE.
   § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as
 amended  by  section  46 of part K of chapter 61 of the laws of 2011, is
 amended to read as follows:
   (4) The return of a vendor of tangible personal property  or  services
 shall  show  such vendor's receipts from sales and the number of gallons
 of any motor fuel or diesel motor fuel sold and also the aggregate value
 of tangible personal property and services and number of gallons of such
 fuels sold by the vendor, the use of which is subject to tax under  this
 article,  and  the  amount  of  tax  payable  thereon  pursuant  to  the
 provisions of section eleven hundred  thirty-seven  of  this  part.  The
 return  of  a recipient of amusement charges shall show all such charges
 and the amount of tax thereon, and the return of an operator required to
 collect tax on rents shall show all rents received or  charged  and  the
 amount of tax thereon.  THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE
 THE  RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A
 MARKETPLACE PROVIDER IF, IN REGARD TO SUCH  SALE:  (A)  THE  MARKETPLACE
 SELLER  HAS  TIMELY  RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF-
 ICATE OF COLLECTION FROM THE MARKETPLACE  PROVIDER  OR  THE  MARKETPLACE
 PROVIDER  HAS  INCLUDED  A PROVISION APPROVED BY THE COMMISSIONER IN THE
 PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE  PROVIDER  AND  THE
 MARKETPLACE  SELLER  AS  DESCRIBED  IN SUBDIVISION (1) OF SECTION ELEVEN
 HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE
 MARKETPLACE SELLER TO  THE  MARKETPLACE  PROVIDER  ABOUT  SUCH  TANGIBLE
 PERSONAL PROPERTY IS ACCURATE.
   §  6.  Section 1142 of the tax law is amended by adding a new subdivi-
 sion 15 to read as follows:
   15. TO PUBLISH A LIST  ON  THE  DEPARTMENT'S  WEBSITE  OF  MARKETPLACE
 PROVIDERS WHOSE CERTIFICATE OF AUTHORITY HAS BEEN REVOKED AND, IF NECES-
 SARY  TO  PROTECT  SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHERWISE
 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 (1) OF SECTION ELEVEN HUNDRED THIRTY-TWO
 OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS NOT ON SUCH LIST AT
 THE COMMENCEMENT OF THE CALENDAR YEAR IN WHICH THE SALE WAS MADE.
   §  7. This act shall take effect September 1, 2017, and shall apply to
 sales made on or after that date.
 
                                  PART CC
 
   Section 1. Paragraph 4 of subdivision (b) of section 1101 of  the  tax
 law is amended by adding a new subparagraph (v) to read as follows:
   (V)  NOTWITHSTANDING  THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARA-
 GRAPH, THE FOLLOWING SALES OF TANGIBLE PERSONAL PROPERTY SHALL BE DEEMED
 TO BE RETAIL SALES: (A) A SALE TO  A  SINGLE  MEMBER  LIMITED  LIABILITY
 COMPANY  OR  A  SUBSIDIARY FOR RESALE TO ITS MEMBER OR OWNER, WHERE SUCH
 SINGLE MEMBER LIMITED LIABILITY COMPANY OR SUBSIDIARY IS DISREGARDED  AS
 AN ENTITY SEPARATE FROM ITS OWNER FOR FEDERAL INCOME TAX PURPOSES (WITH-
 OUT  REFERENCE TO ANY SPECIAL RULES RELATED TO THE IMPOSITION OF CERTAIN
 FEDERAL TAXES), INCLUDING BUT NOT  LIMITED  TO  CERTAIN  EMPLOYMENT  AND
 EXCISE  TAXES;  (B) A SALE TO A PARTNERSHIP FOR RESALE TO ONE OR MORE OF
 ITS PARTNERS; OR (C) A SALE TO A TRUSTEE OF A TRUST FOR RESALE TO ONE OR
 MORE BENEFICIARIES OF SUCH TRUST.

 S. 2009                            85                            A. 3009
 
   § 2. Subdivision 2 of section 1118 of  the  tax  law,  as  amended  by
 section  4  of subpart B of part S of chapter 57 of the laws of 2010, is
 amended to read as follows:
   (2)(A)  In respect to the use of property or services purchased by the
 user while a nonresident of this state, except in the case  of  tangible
 personal  property  or  services which the user, in the performance of a
 contract, incorporates into real property located in the state. A person
 while engaged in any manner in carrying on in this state any employment,
 trade, business or profession, shall not be deemed  a  nonresident  with
 respect to the use in this state of property or services in such employ-
 ment,  trade,  business  or profession. This exemption does not apply to
 the use of qualified property where the qualified property is  purchased
 primarily to carry individuals, whether or not for hire, who are agents,
 employees,  officers,  shareholders,  members,  managers,  partners,  or
 directors of (A) the purchaser, where any of  those  individuals  was  a
 resident  of this state when the qualified property was purchased or (B)
 any affiliated person that was a resident when  the  qualified  property
 was  purchased. For purposes of this subdivision: (i) persons are affil-
 iated persons with respect to each other where one of the persons has an
 ownership interest of more than five percent, whether  direct  or  indi-
 rect,  in  the  other,  or where an ownership interest of more than five
 percent, whether direct or indirect, is held in each of the  persons  by
 another  person  or  by  a  group  of  other persons that are affiliated
 persons with respect to each  other;  (ii)  "qualified  property"  means
 [aircraft,]  vessels and motor vehicles; and (iii) "carry" means to take
 any person from one point to another, whether for the business  purposes
 or  pleasure of that person. For an exception to the exclusions from the
 definition of "retail sale" applicable to [aircraft  and]  vessels,  see
 subdivision (q) of section eleven hundred eleven of this article.
   (B) NOTWITHSTANDING ANY PROVISION OF THIS ARTICLE TO THE CONTRARY, THE
 EXCLUSION  IN  PARAGRAPH  (A) OF THIS SUBDIVISION SHALL NOT APPLY TO THE
 USE WITHIN THE STATE OF PROPERTY OR A  SERVICE  PURCHASED  OUTSIDE  THIS
 STATE  BY  A NONRESIDENT THAT IS NOT AN INDIVIDUAL, UNLESS SUCH NONRESI-
 DENT HAS BEEN DOING BUSINESS OUTSIDE THE STATE FOR AT LEAST  SIX  MONTHS
 PRIOR TO THE DATE SUCH NONRESIDENT BROUGHT SUCH PROPERTY OR SERVICE INTO
 THIS STATE.
   § 3. This act shall take effect immediately.
 
                                  PART DD
 
   Section  1. Section 1105-C of the tax law, as added by section 24-a of
 part Y of chapter 63 of the laws of 2000, and subdivision (d)  as  added
 by  section 1 of part B of chapter 85 of the laws of 2002, is amended to
 read as follows:
   § 1105-C. Reduced tax rates with respect to certain  gas  service  and
 electric  service.  Notwithstanding any other provisions of this article
 or article twenty-nine of this chapter:
   (a) The rates of taxes imposed by this article  and  pursuant  to  the
 authority  of article twenty-nine of this chapter on receipts from every
 sale of gas service or electric service of  whatever  nature  (including
 the  transportation, transmission or distribution of gas or electricity,
 but not including gas or electricity) shall be  [reduced  each  year  on
 September first, beginning in the year two thousand, and each year ther-
 eafter,  at  the  rate  per  year of twenty-five percent of the rates in
 effect on September first, two thousand, so that the rates of such taxes
 on such receipts shall be] zero percent [on and after  September  first,

 S. 2009                            86                            A. 3009

 two  thousand  three] UNLESS THE CHARGE IS BY THE VENDOR FOR TRANSPORTA-
 TION, TRANSMISSION OR DISTRIBUTION, REGARDLESS OF WHETHER  SUCH  CHARGES
 ARE  SEPARATELY  STATED  IN THE WRITTEN CONTRACT, IF ANY, OR ON THE BILL
 RENDERED  TO  SUCH  PURCHASER AND REGARDLESS OF WHETHER SUCH TRANSPORTA-
 TION, TRANSMISSION, OR DISTRIBUTION IS PROVIDED  BY  SUCH  VENDOR  OR  A
 THIRD PARTY.
   (b)  [The  provisions of subdivision (b) of section eleven hundred six
 of this article shall apply to the reduced rates described  in  subdivi-
 sion  (a)  of this section, as if such section referred to this section,
 provided that any reference in subdivision (b) of  such  section  eleven
 hundred six to the date August first, nineteen hundred sixty-five, shall
 be  deemed  to refer, respectively, to September first of the applicable
 years described in subdivision (a) of this section, and any reference in
 subdivision (b) of such section eleven hundred six to July thirty-first,
 nineteen hundred sixty-five, shall be deemed to refer to the  day  imme-
 diately preceding each such September first, respectively.
   (c)  Nothing  in this section shall be deemed to exempt from the taxes
 imposed under this article or pursuant to the authority of article twen-
 ty-nine of this chapter any transaction which may not be subject to  the
 reduced  rates of such taxes, each year, as set forth in subdivision (a)
 of this section in effect on the respective September first.
   (d)] For [the purpose] PURPOSES of [the reduced rate of  tax  provided
 by]  subdivision  (a)  of  this section, [the following shall apply to a
 sale, other than a sale for resale, of the]  WHERE  THE  transportation,
 transmission  or  distribution  of  gas  or electricity [by a vendor not
 subject to the supervision of the public service commission  where  such
 transportation, transmission or distribution service being] IS sold [is]
 wholly  within  a  service  area of the state wherein the public service
 commission [shall have] HAS approved by formal order a  single  retailer
 model  for  the  regulated utility which has the responsibility to serve
 that area[. Where such a vendor makes a sale,  other  than  a  sale  for
 resale,  of gas or electricity to be delivered to a customer within such
 service area and, for  the  purpose  of  transporting,  transmitting  or
 distributing  such  gas or electricity, also makes a sale of transporta-
 tion, transmission or distribution service to such customer], the charge
 for [the] SUCH transportation, transmission or distribution [of  gas  or
 electricity  wholly  within  such  service  area  made  by  such vendor,
 notwithstanding paragraph three of subdivision  (b)  of  section  eleven
 hundred  one  of  this article, shall not be included in the receipt for
 such gas or electricity, and, therefore,] WHEN MADE BY THE PROVIDER  WHO
 ALSO  SELLS,  OTHER  THAN  AS A SALE FOR RESALE, THE GAS OR ELECTRICITY,
 shall qualify for such reduced rate.
   § 2. This act shall take effect immediately.
 
                                  PART EE
 
   Section 1. Subdivision 1 of section 186-f of the tax law is amended by
 adding three new paragraphs (f), (g) and (h) to read as follows:
   (F) "PREPAID WIRELESS COMMUNICATIONS SELLER" MEANS A PERSON  MAKING  A
 RETAIL  SALE  OF  PREPAID  WIRELESS  COMMUNICATIONS SERVICE OR A PREPAID
 WIRELESS COMMUNICATIONS DEVICE.
   (G) "PREPAID WIRELESS COMMUNICATIONS DEVICE" MEANS ANY EQUIPMENT  USED
 TO ACCESS A PREPAID WIRELESS COMMUNICATIONS SERVICE.
   (H)  "PREPAID  WIRELESS COMMUNICATIONS SERVICE" MEANS A PREPAID MOBILE
 CALLING SERVICE AS DEFINED IN PARAGRAPH TWENTY-TWO OF SUBDIVISION (B) OF
 SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER.

 S. 2009                            87                            A. 3009
 
   § 2. Subdivision 2 of section 186-f  of  the  tax  law,  as  added  by
 section  3  of  part  B of chapter 56 of the laws of 2009, is amended to
 read as follows:
   2.  Public  safety  communications  surcharge.  (a) (1) A surcharge on
 wireless communications service provided to  a  wireless  communications
 customer  with  a  place  of primary use in this state is imposed at the
 rate of one dollar and twenty cents per month on each wireless  communi-
 cations  device  in service during any part of each month. The surcharge
 must be reflected and made payable on bills  rendered  to  the  wireless
 communications customer for wireless communication service.
   [(b)]  (2)  Each  wireless  communications  service supplier providing
 wireless communications  service  in  New  York  state  must  act  as  a
 collection  agent for the state for the collection of the surcharge. The
 wireless communications service supplier  has  no  legal  obligation  to
 enforce  the  collection  of  the surcharge from its customers. However,
 each wireless communications service supplier must  collect  and  retain
 the  name  and  address  of  any wireless communications customer with a
 place of primary use in this state that refuses  or  fails  to  pay  the
 surcharge,  as  well as the cumulative amount of the surcharge remaining
 unpaid, and must provide this information to  the  commissioner  at  the
 time  and  according to the procedures the commissioner may provide. The
 surcharge must be reported and paid to the commissioner on  a  quarterly
 basis  on  or before the fifteenth day of the month following each quar-
 terly period ending on the last day of February, May, August and  Novem-
 ber,  respectively.  The payments must be accompanied by a return in the
 form and containing the information the commissioner may prescribe.
   [(c)] (3) The surcharge must be added as a separate line item to bills
 furnished by a wireless communications service supplier to  its  custom-
 ers,  and  must  be  identified  as  the  "public  safety communications
 surcharge". Each wireless communications customer who is subject to  the
 provisions of this section remains liable to the state for the surcharge
 due  under this section until it has been paid to the state, except that
 payment to a wireless communications service supplier is  sufficient  to
 relieve the customer from further liability for the surcharge.
   [(d)  Each  wireless  communications  service  supplier is entitled to
 retain, as an administrative fee, an amount  equal  to  two  percent  of
 fifty-eight  and  three-tenths  percent  of the total collections of the
 surcharge imposed by this section, provided that the supplier files  any
 required  return  and remits the surcharge due to the commissioner on or
 before its due date.]
   (B)(1) A SURCHARGE IS IMPOSED ON THE RETAIL SALE OF EACH PREPAID WIRE-
 LESS COMMUNICATIONS SERVICE OR DEVICE AT THE RATE OF:  (I)  SIXTY  CENTS
 PER RETAIL SALE THAT DOES NOT EXCEED THIRTY DOLLARS; AND (II) ONE DOLLAR
 AND TWENTY CENTS PER RETAIL SALE THAT EXCEEDS THIRTY DOLLARS.
   (2)  FOR  PURPOSES  OF  THIS  PARAGRAPH,  A SALE OF A PREPAID WIRELESS
 COMMUNICATIONS SERVICE OR DEVICE OCCURS IN THIS STATE IF THE SALE  TAKES
 PLACE AT A SELLER'S BUSINESS LOCATION IN THE STATE. IF THE SALE DOES NOT
 TAKE  PLACE  AT THE SELLER'S PLACE OF BUSINESS, IT SHALL BE CONCLUSIVELY
 DETERMINED TO TAKE PLACE AT THE  PURCHASER'S  SHIPPING  ADDRESS  OR,  IF
 THERE IS NO ITEM SHIPPED, AT THE PURCHASER'S BILLING ADDRESS, OR, IF THE
 SELLER  DOES  NOT  HAVE THAT ADDRESS, AT SUCH ADDRESS AS APPROVED BY THE
 COMMISSIONER THAT REASONABLY REFLECTS THE  CUSTOMER'S  LOCATION  AT  THE
 TIME  OF  THE  SALE  OF  THE  PREPAID WIRELESS COMMUNICATIONS SERVICE OR
 DEVICE.
   (3) EACH PREPAID WIRELESS COMMUNICATIONS SELLER IN NEW YORK STATE MUST
 ACT AS A COLLECTION AGENT FOR  THE  STATE  FOR  THE  COLLECTION  OF  THE

 S. 2009                            88                            A. 3009
 
 SURCHARGE.   THE SURCHARGE MUST BE REPORTED AND PAID TO THE COMMISSIONER
 ON A QUARTERLY BASIS ON OR BEFORE THE FIFTEENTH DAY OF THE MONTH FOLLOW-
 ING EACH QUARTERLY PERIOD ENDING ON  THE  LAST  DAY  OF  FEBRUARY,  MAY,
 AUGUST AND NOVEMBER, RESPECTIVELY. THE PAYMENTS MUST BE ACCOMPANIED BY A
 RETURN  IN  THE FORM AND CONTAINING THE INFORMATION THE COMMISSIONER MAY
 PRESCRIBE.
   (4) THE SURCHARGE MUST BE ADDED AS A SEPARATE LINE  ITEM  TO  A  SALES
 SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE, IF ANY, THAT IS
 FURNISHED  BY  A  PREPAID WIRELESS COMMUNICATIONS SELLER TO A PURCHASER,
 AND MUST BE IDENTIFIED AS THE "PUBLIC SAFETY COMMUNICATIONS  SURCHARGE."
 EACH PURCHASER OF A PREPAID WIRELESS COMMUNICATIONS SERVICE OR DEVICE IN
 THIS  STATE REMAINS LIABLE TO THE STATE FOR THE SURCHARGE DUE UNDER THIS
 SECTION UNTIL IT HAS BEEN PAID TO THE STATE, EXCEPT THAT  PAYMENT  TO  A
 PREPAID  WIRELESS  COMMUNICATIONS  SELLER  IS  SUFFICIENT TO RELIEVE THE
 PURCHASER FROM FURTHER LIABILITY FOR SUCH SURCHARGE.
   § 3.  The county law is amended by adding a new section 309 to read as
 follows:
   § 309. ESTABLISHMENT OF PREPAID WIRELESS SURCHARGE FOR  SYSTEM  COSTS.
 1.  DEFINITIONS.  WHEN USED IN THIS ARTICLE, WHERE NOT OTHERWISE SPECIF-
 ICALLY DEFINED AND UNLESS THE SPECIFIC CONTEXT CLEARLY INDICATES  OTHER-
 WISE:
   (A)  "PREPAID  WIRELESS COMMUNICATIONS SELLER" MEANS A PERSON MAKING A
 RETAIL SALE OF PREPAID WIRELESS  COMMUNICATIONS  SERVICE  OR  A  PREPAID
 WIRELESS COMMUNICATIONS DEVICE.
   (B)  "PREPAID WIRELESS COMMUNICATIONS DEVICE" MEANS ANY EQUIPMENT USED
 TO ACCESS A PREPAID WIRELESS COMMUNICATIONS SERVICE.
   (C) "PREPAID WIRELESS COMMUNICATIONS SERVICE" MEANS A  PREPAID  MOBILE
 CALLING SERVICE AS DEFINED IN PARAGRAPH TWENTY-TWO OF SUBDIVISION (B) OF
 SECTION ELEVEN HUNDRED ONE OF THE TAX LAW.
   2.  NOTWITHSTANDING  THE  PROVISIONS  OF  ANY LAW TO THE CONTRARY, ANY
 MUNICIPALITY, AS DEFINED IN SECTION THREE HUNDRED ONE OF  THIS  ARTICLE,
 THAT  IS  AUTHORIZED  TO  IMPOSE  AN ENHANCED EMERGENCY TELEPHONE SYSTEM
 SURCHARGE ON WIRELESS COMMUNICATIONS  SERVICE  UNDER  THIS  ARTICLE,  IS
 HEREBY  AUTHORIZED  AND  EMPOWERED TO ADOPT, AMEND OR REPEAL LOCAL LAWS,
 ACTING THROUGH ITS BOARD, TO IMPOSE A SURCHARGE ON THE  RETAIL  SALE  OF
 EACH PREPAID WIRELESS COMMUNICATIONS SERVICE OR DEVICE, IN AN AMOUNT NOT
 TO  EXCEED  THIRTY  CENTS  PER RETAIL SALE WITHIN SUCH MUNICIPALITY. THE
 PROCEEDS FROM SUCH SURCHARGE SHALL BE USED TO PAY FOR THE COSTS  ASSOCI-
 ATED  WITH  OBTAINING,  OPERATING  AND MAINTAINING THE TELECOMMUNICATION
 EQUIPMENT AND TELEPHONE SERVICES NEEDED TO PROVIDE AN ENHANCED 911 EMER-
 GENCY TELEPHONE SYSTEM TO SERVE SUCH MUNICIPALITY.
   3. FOR PURPOSES OF THIS SECTION, A SALE OF A PREPAID WIRELESS COMMUNI-
 CATIONS SERVICE OR DEVICE OCCURS IN A MUNICIPALITY  IF  THE  SALE  TAKES
 PLACE  AT  A SELLER'S BUSINESS LOCATION IN THE MUNICIPALITY. IF THE SALE
 DOES NOT TAKE PLACE AT THE SELLER'S  PLACE  OF  BUSINESS,  IT  SHALL  BE
 CONCLUSIVELY  DETERMINED  TO  TAKE  PLACE  AT  THE  PURCHASER'S SHIPPING
 ADDRESS IN THE MUNICIPALITY OR, IF THERE IS  NO  ITEM  SHIPPED,  AT  THE
 PURCHASER'S  BILLING ADDRESS IN THE MUNICIPALITY, OR, IF THE SELLER DOES
 NOT HAVE THAT ADDRESS, AT SUCH  ADDRESS  THAT  REASONABLY  REFLECTS  THE
 CUSTOMER'S  LOCATION  AT  THE  TIME  OF THE SALE OF THE PREPAID WIRELESS
 COMMUNICATIONS SERVICE OR DEVICE.
   4. ANY SUCH LOCAL LAW SHALL STATE THE AMOUNT OF THE SURCHARGE AND  THE
 DATE  ON  WHICH  SELLERS IN THE MUNICIPALITY SHALL BEGIN TO COLLECT SUCH
 SURCHARGE. ANY SELLER OF A PREPAID WIRELESS  COMMUNICATIONS  SERVICE  OR
 DEVICE  WITHIN  A  MUNICIPALITY THAT HAS IMPOSED A SURCHARGE PURSUANT TO
 THE PROVISIONS OF THIS SECTION SHALL BE GIVEN A  MINIMUM  OF  FORTY-FIVE

 S. 2009                            89                            A. 3009
 
 DAYS  WRITTEN  NOTICE PRIOR TO THE DATE IT SHALL BE REQUIRED TO BEGIN TO
 COLLECT SUCH SURCHARGE OR PRIOR TO ANY MODIFICATION TO OR CHANGE IN  THE
 SURCHARGE AMOUNT.
   5.  (A)  EACH PREPAID WIRELESS COMMUNICATIONS SELLER IN A MUNICIPALITY
 SHALL ACT AS COLLECTION AGENT FOR SUCH MUNICIPALITY AND SHALL REMIT  THE
 FUNDS  COLLECTED PURSUANT TO A SURCHARGE IMPOSED UNDER THE PROVISIONS OF
 THIS SECTION TO THE CHIEF  FISCAL  OFFICER  OF  THE  MUNICIPALITY  EVERY
 MONTH.  SUCH FUNDS SHALL BE REMITTED NO LATER THAN THIRTY DAYS AFTER THE
 LAST BUSINESS DAY OF THE MONTH.
   (B)  THE SELLER SHALL BE ENTITLED TO RETAIN, AS AN ADMINISTRATIVE FEE,
 AN AMOUNT EQUAL TO TWO PERCENT  OF  ITS  COLLECTIONS  OF  THE  SURCHARGE
 IMPOSED UNDER THIS ARTICLE.
   (C)  THE  SURCHARGE SHALL BE ADDED TO AND STATED SEPARATELY ON A SALES
 SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE, IF ANY, THAT IS
 PROVIDED TO THE PURCHASER.
   (D) THE SELLER SHALL PROVIDE TO THE MUNICIPALITY AN ACCOUNTING OF  THE
 SURCHARGE  AMOUNTS COLLECTED NO MORE FREQUENTLY THAN ANNUALLY UPON WRIT-
 TEN REQUEST FROM THE MUNICIPALITY'S CHIEF FISCAL OFFICER.
   (E) EACH PURCHASER OF A PREPAID  WIRELESS  COMMUNICATIONS  SERVICE  OR
 DEVICE IN A MUNICIPALITY THAT HAS IMPOSED SUCH SURCHARGE SHALL BE LIABLE
 TO  THE  MUNICIPALITY  FOR  THE  SURCHARGE UNTIL IT HAS BEEN PAID TO THE
 MUNICIPALITY, EXCEPT THAT PAYMENT TO A PREPAID  WIRELESS  COMMUNICATIONS
 SELLER IS SUFFICIENT TO RELIEVE THE PURCHASER FROM FURTHER LIABILITY FOR
 SUCH SURCHARGE.
   6.  ALL SURCHARGE MONIES REMITTED TO A MUNICIPALITY BY A PREPAID WIRE-
 LESS COMMUNICATIONS SELLER SHALL BE EXPENDED ONLY UPON AUTHORIZATION  OF
 THE  LEGISLATIVE BODY OF A MUNICIPALITY AND ONLY FOR PAYMENT OF ELIGIBLE
 WIRELESS 911 SERVICE COSTS AS DEFINED IN SUBDIVISION SIXTEEN OF  SECTION
 THREE  HUNDRED TWENTY-FIVE OF THIS CHAPTER. THE MUNICIPALITY SHALL SEPA-
 RATELY ACCOUNT FOR AND KEEP ADEQUATE BOOKS AND RECORDS OF THE AMOUNT AND
 SOURCE OF ALL SUCH MONIES AND OF THE AMOUNT AND OBJECT OR PURPOSE OF ALL
 EXPENDITURES THEREOF. IF, AT THE END  OF  ANY  FISCAL  YEAR,  THE  TOTAL
 AMOUNT  OF  ALL  SUCH MONIES EXCEEDS THE AMOUNT NECESSARY FOR PAYMENT OF
 THE ABOVE MENTIONED COSTS IN SUCH FISCAL  YEAR,  SUCH  EXCESS  SHALL  BE
 RESERVED  AND CARRIED OVER FOR THE PAYMENT OF THOSE COSTS IN THE FOLLOW-
 ING FISCAL YEAR.
   § 4. This act shall take effect December 1, 2017.
 
                                  PART FF
 
   Section 1. Subdivision 8 of section 1399-n of the public  health  law,
 as  amended  by  chapter  13  of  the laws of 2003, is amended and a new
 subdivision 9 is added to read as follows:
   8. "Smoking" means the burning of a lighted cigar, cigarette, pipe  or
 any  other matter or substance which contains tobacco, THE BURNING OF AN
 HERBAL CIGARETTE, OR THE USE OF A VAPOR PRODUCT.
   9. "VAPOR PRODUCT" MEANS 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  THOUSAND  THREE
 HUNDRED SIXTY-TWO OF THIS CHAPTER.

 S. 2009                            90                            A. 3009
 
   §  2. The article heading of article 13-F of the public health law, as
 amended by chapter 448 of the laws  of  2012,  is  amended  to  read  as
 follows:
      REGULATION OF TOBACCO PRODUCTS, HERBAL CIGARETTES AND [SMOKING
           PARAPHERNALIA] VAPOR PRODUCTS; DISTRIBUTION TO MINORS
   § 3. Subdivisions 5, 8, and 13 of section 1399-aa of the public health
 law, subdivision 5 as amended by chapter 152 of the laws of 2004, subdi-
 vision  8 as added by chapter 13 of the laws of 2003, and subdivision 13
 as amended by chapter 542 of the laws of 2014, are amended  to  read  as
 follows:
   5.  "Tobacco  products" means one or more cigarettes or cigars, bidis,
 chewing tobacco, powdered tobacco, SHISHA nicotine water  or  any  other
 PRODUCT CONTAINING OR DERIVED FROM tobacco [products].
   8. "Tobacco business" means a sole proprietorship, corporation, limit-
 ed  liability  company,  partnership  or  other  enterprise in which the
 primary activity is the  sale,  manufacture  or  promotion  of  tobacco,
 tobacco  products,  VAPOR PRODUCTS, and accessories, either at wholesale
 or retail, and in which the sale,  manufacture  or  promotion  of  other
 products is merely incidental.
   13.  ["Electronic  cigarette"  or  "e-cigarette"  means  an electronic
 device that delivers vapor which is inhaled by an individual  user,  and
 shall  include  any  refill, cartridge and any other component of such a
 device.] "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARD-
 LESS 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 THOUSAND THREE
 HUNDRED SIXTY-TWO OF THIS CHAPTER.
   § 4. Section 1399-bb of the public health law, as amended  by  chapter
 508  of  the laws of 2000, subdivision 2 as amended by chapter 13 of the
 laws of 2003, is amended to read as follows:
   § 1399-bb. Distribution of tobacco products [or],  herbal  cigarettes,
 OR  VAPOR  PRODUCTS without charge. 1. No person engaged in the business
 of selling or otherwise distributing tobacco products [or], herbal ciga-
 rettes, OR VAPOR PRODUCTS for  commercial  purposes,  or  any  agent  or
 employee  of  such person, shall knowingly, in furtherance of such busi-
 ness:
   (a) distribute without charge any tobacco products [or], herbal  ciga-
 rettes,  OR VAPOR PRODUCTS to any individual, provided that the distrib-
 ution of a package containing tobacco products [or], herbal  cigarettes,
 OR  VAPOR  PRODUCTS  in violation of this subdivision shall constitute a
 single violation without regard to the number of items in  the  package;
 or
   (b) distribute coupons which are redeemable for tobacco products [or],
 herbal  cigarettes,  OR  VAPOR PRODUCTS to any individual, provided that
 this subdivision shall not apply to  coupons  contained  in  newspapers,
 magazines  or  other types of publications, coupons obtained through the
 purchase of tobacco products [or], herbal cigarettes, OR VAPOR  PRODUCTS
 or  obtained at locations which sell tobacco products [or], herbal ciga-
 rettes, OR VAPOR PRODUCTS provided that such distribution is confined to
 a designated area or to coupons sent through the mail.
   2. The prohibitions contained in subdivision one of this section shall
 not apply to the following locations:

 S. 2009                            91                            A. 3009
 
   (a) private social functions when seating arrangements are  under  the
 control  of  the  sponsor  of  the function and not the owner, operator,
 manager or person in charge of such indoor area;
   (b)  conventions  and  trade  shows; provided that the distribution is
 confined to designated areas generally accessible only to  persons  over
 the age of eighteen;
   (c) events sponsored by tobacco [or], herbal cigarette, OR VAPOR PROD-
 UCT  manufacturers  provided that the distribution is confined to desig-
 nated areas generally accessible only to persons over the age  of  eigh-
 teen;
   (d)  bars  as  defined  in subdivision one of section thirteen hundred
 ninety-nine-n of this chapter;
   (e) tobacco businesses as defined  in  subdivision  eight  of  section
 thirteen hundred ninety-nine-aa of this article;
   (f)  factories  as  defined  in  subdivision  nine of section thirteen
 hundred ninety-nine-aa of this article and construction sites;  provided
 that the distribution is confined to designated areas generally accessi-
 ble only to persons over the age of eighteen.
   3.   No   person   shall  distribute  tobacco  products  [or],  herbal
 cigarettes, OR VAPOR PRODUCTS at the locations set forth  in  paragraphs
 (b),  (c)  and (f) of subdivision two of this section unless such person
 gives five days written notice to the enforcement officer.
   4. The distribution of tobacco products [or],  herbal  cigarettes,  OR
 VAPOR PRODUCTS pursuant to subdivision two of this section shall be made
 only  to  an individual who demonstrates, through (A) a driver's license
 or [other photographic] NON-DRIVER'S identification card  issued  by  [a
 government  entity or educational institution] THE COMMISSIONER OF MOTOR
 VEHICLES, THE FEDERAL GOVERNMENT, ANY UNITED STATES  TERRITORY,  COMMON-
 WEALTH OR POSSESSION, THE DISTRICT OF COLUMBIA, A STATE GOVERNMENT WITH-
 IN THE UNITED STATES OR A PROVINCIAL GOVERNMENT OF THE DOMINION OF CANA-
 DA,  OR  (B)  A VALID PASSPORT ISSUED BY THE UNITED STATES GOVERNMENT OR
 ANY OTHER COUNTRY, OR (C) AN IDENTIFICATION CARD  ISSUED  BY  THE  ARMED
 FORCES  OF THE UNITED STATES, indicating that the individual is at least
 eighteen years of age. Such identification need not be required  of  any
 individual  who  reasonably  appears to be at least twenty-five years of
 age; provided, however, that such  appearance  shall  not  constitute  a
 defense  in  any proceeding alleging the sale of a tobacco product [or],
 herbal cigarette, OR VAPOR PRODUCTS to an individual.
   § 5. The section heading of section 1399-cc of the public health  law,
 as  amended  by  chapter  542 of the laws of 2014, is amended to read as
 follows:
   Sale of tobacco products, herbal cigarettes, [liquid nicotine, shisha,
 rolling papers]  VAPOR  PRODUCTS  or  smoking  paraphernalia  to  minors
 prohibited.
   §  6.  Subdivisions  2,  3,  4, and 7 of section 1399-cc of the public
 health law, as amended by chapter 542 of the laws of 2014 are amended to
 read as follows:
   2. Any person operating a place of business wherein tobacco  products,
 herbal  cigarettes, [liquid nicotine, shisha] or [electronic cigarettes]
 VAPOR PRODUCTS, are sold or offered for sale is prohibited from  selling
 such  products,  herbal cigarettes, [liquid nicotine, shisha, electronic
 cigarettes] VAPOR PRODUCTS or smoking paraphernalia to individuals under
 eighteen years of age, and shall post in a conspicuous place a sign upon
 which there shall be imprinted the following statement, "SALE  OF  CIGA-
 RETTES,  CIGARS,  [CHEWING  TOBACCO,  POWDERED TOBACCO,] SHISHA OR OTHER
 TOBACCO PRODUCTS, HERBAL CIGARETTES, [LIQUID NICOTINE, ELECTRONIC  CIGA-

 S. 2009                            92                            A. 3009

 RETTES]  VAPOR  PRODUCTS,  [ROLLING PAPERS] OR SMOKING PARAPHERNALIA, TO
 PERSONS UNDER EIGHTEEN YEARS OF AGE IS PROHIBITED  BY  LAW."  Such  sign
 shall  be  printed on a white card in red letters at least one-half inch
 in height.
   3.  Sale  of  tobacco  products,  herbal cigarettes, [liquid nicotine,
 shisha] or [electronic cigarettes] VAPOR PRODUCTS in such places,  other
 than  by  a  vending  machine,  shall  be made only to an individual who
 demonstrates, through (a) a valid driver's license or non-driver's iden-
 tification card issued by the commissioner of motor vehicles, the feder-
 al government, any United States territory, commonwealth or  possession,
 the District of Columbia, a state government within the United States or
 a  provincial government of the dominion of Canada, or (b) a valid pass-
 port issued by the United States government or any other country, or (c)
 an identification card issued by the armed forces of the United  States,
 indicating  that  the individual is at least eighteen years of age. Such
 identification need not be required of  any  individual  who  reasonably
 appears to be at least twenty-five years of age, provided, however, that
 such  appearance shall not constitute a defense in any proceeding alleg-
 ing the sale of a tobacco product, herbal cigarettes, [liquid  nicotine,
 shisha] or [electronic cigarettes] VAPOR PRODUCTS to an individual under
 eighteen years of age.
   4.  (a)  Any  person  operating  a  place  of business wherein tobacco
 products, herbal cigarettes, [liquid nicotine,  shisha]  or  [electronic
 cigarettes]  VAPOR  PRODUCTS  are sold or offered for sale may perform a
 transaction scan as a precondition for such purchases.
   (b) In any instance where the information  deciphered  by  the  trans-
 action  scan  fails  to  match  the  information printed on the driver's
 license or non-driver identification card, or if  the  transaction  scan
 indicates  that  the  information  is false or fraudulent, the attempted
 transaction shall be denied.
   (c) In any proceeding pursuant to  section  thirteen  hundred  ninety-
 nine-ee  of  this  article, it shall be an affirmative defense that such
 person had produced a driver's license or non-driver identification card
 apparently issued by a governmental entity, successfully completed  that
 transaction  scan,  and  that the tobacco product, herbal cigarettes [or
 liquid nicotine], OR VAPOR PRODUCTS had been sold, delivered or given to
 such person in reasonable reliance upon such identification  and  trans-
 action scan. In evaluating the applicability of such affirmative defense
 the  commissioner  shall  take  into  consideration  any  written policy
 adopted and implemented by the seller to effectuate  the  provisions  of
 this  chapter.  Use  of  a  transaction scan shall not excuse any person
 operating a place of business wherein  tobacco  products,  herbal  ciga-
 rettes,  [liquid  nicotine,  shisha]  or  [electronic  cigarettes] VAPOR
 PRODUCTS are sold, or the agent or employee of  such  person,  from  the
 exercise  of  reasonable  diligence  otherwise required by this chapter.
 Notwithstanding the above provisions, any such affirmative defense shall
 not be applicable in any civil or criminal proceeding, or in  any  other
 forum.
   7.  No  person operating a place of business wherein tobacco products,
 herbal cigarettes, [liquid nicotine, shisha] or [electronic  cigarettes]
 VAPOR  PRODUCTS  are  sold  or offered for sale shall sell, permit to be
 sold, offer for sale or display for sale  any  tobacco  product,  herbal
 cigarettes,  [liquid  nicotine, shisha] or [electronic cigarettes] VAPOR
 PRODUCTS in any manner, unless such products and cigarettes  are  stored
 for  sale (a) behind a counter in an area accessible only to the person-
 nel of such business, or (b) in a locked container[; provided,  however,

 S. 2009                            93                            A. 3009

 such  restriction  shall  not apply to tobacco businesses, as defined in
 subdivision eight of section thirteen  hundred  ninety-nine-aa  of  this
 article, and to places to which admission is restricted to persons eigh-
 teen years of age or older].
   §  7.  Section 1399-dd of the public health law, as amended by chapter
 448 of the laws of 2012, is amended to read as follows:
   § 1399-dd. Sale of tobacco products, herbal cigarettes or  [electronic
 cigarettes]  VAPOR PRODUCTS in vending machines.  No person, firm, part-
 nership, company or corporation shall operate a  vending  machine  which
 dispenses tobacco products, herbal cigarettes or [electronic cigarettes]
 VAPOR  PRODUCTS  unless such machine is located: (a) in a bar as defined
 in subdivision one of section thirteen  hundred  ninety-nine-n  of  this
 chapter,  or  the bar area of a food service establishment with a valid,
 on-premises full liquor license; (b) in a private club; (c) in a tobacco
 business as defined in subdivision eight  of  section  thirteen  hundred
 ninety-nine-aa  of  this  article; or (d) in a place of employment which
 has an insignificant portion  of  its  regular  workforce  comprised  of
 people  under  the age of eighteen years and only in such locations that
 are not accessible to the general public;  provided,  however,  that  in
 such  locations  the  vending machine is located in plain view and under
 the direct supervision and control  of  the  person  in  charge  of  the
 location or his or her designated agent or employee.
   §  8.  Subdivision  2  of section 1399-ee of the public health law, as
 amended by chapter 162 of the laws  of  2002,  is  amended  to  read  as
 follows:
   2.  If  the  enforcement  officer  determines  after  a hearing that a
 violation of this article has occurred, he or she shall impose  a  civil
 penalty  of  a  minimum  of three hundred dollars, but not to exceed one
 thousand dollars for a first violation, and a minimum  of  five  hundred
 dollars,  but  not  to exceed one thousand five hundred dollars for each
 subsequent violation, unless a different penalty is  otherwise  provided
 in  this article. The enforcement officer shall advise the retail dealer
 that upon the accumulation of three or  more  points  pursuant  to  this
 section  the  department of taxation and finance shall suspend the deal-
 er's registration. If the enforcement officer determines after a hearing
 that a retail dealer was selling  tobacco  products  OR  VAPOR  PRODUCTS
 while  their  registration was suspended or permanently revoked pursuant
 to subdivision three or four of this section, he or she shall  impose  a
 civil penalty of twenty-five hundred dollars.
   §  9.  Subdivision  1  of section 1399-ff of the public health law, as
 amended by chapter 448 of the laws  of  2012,  is  amended  to  read  as
 follows:
   1.  Where  a  civil  penalty  for  a  particular incident has not been
 imposed or an enforcement action regarding an alleged  violation  for  a
 particular  incident is not pending under section thirteen hundred nine-
 ty-nine-ee of this article, a parent or guardian  of  a  minor  to  whom
 tobacco  products,  herbal  cigarettes  or [electronic cigarettes] VAPOR
 PRODUCTS are sold or distributed in violation of this article may submit
 a complaint to an enforcement officer setting forth the name and address
 of the alleged violator, the date of the alleged violation, the name and
 address of the complainant and the minor, and a brief statement describ-
 ing the alleged violation. The  enforcement  officer  shall  notify  the
 alleged  violator  by  certified  or  registered  mail,  return  receipt
 requested, that a complaint has been submitted, and shall set a date, at
 least fifteen days after the mailing of such notice, for  a  hearing  on

 S. 2009                            94                            A. 3009
 
 the  complaint.  Such  notice shall contain the information submitted by
 the complainant.
   §  10.  Section  1399-hh of the public health law, as added by chapter
 433 of the laws of 1997, is amended to read as follows:
   § 1399-hh. Tobacco AND VAPOR PRODUCTS  enforcement.  The  commissioner
 shall  develop, plan and implement a comprehensive program to reduce the
 prevalence of tobacco AND VAPOR PRODUCTS use, particularly among persons
 less than eighteen years of age. This program shall include, but not  be
 limited  to, support for enforcement of article thirteen-F of this chap-
 ter.
   1. An enforcement officer, as  defined  in  section  thirteen  hundred
 ninety-nine-t  of  this chapter, may annually, on such dates as shall be
 fixed by the commissioner, submit an application for such monies as  are
 made  available for such purpose. Such application shall be in such form
 as prescribed by the commissioner and shall include, but not be  limited
 to,  plans  regarding random spot checks, including the number and types
 of compliance checks that will be conducted,  and  other  activities  to
 determine  compliance with this article. Each such plan shall include an
 agreement to report to the commissioner:   the names  and  addresses  of
 tobacco  retailers  and vendors determined to be unlicensed, if any; the
 number of complaints filed against licensed tobacco retail outlets;  and
 the  names of tobacco retailers and vendors who have paid fines, or have
 been otherwise penalized, due to enforcement actions.
   2. The commissioner shall distribute such monies as are made available
 for such purpose to enforcement officers and, in so doing, consider  the
 number  of  retail  locations registered to sell tobacco products within
 the jurisdiction of the enforcement officer and the  level  of  proposed
 activities.
   3.  Monies  made  available  to  enforcement officers pursuant to this
 section shall only be used for local tobacco, HERBAL CIGARETTE AND VAPOR
 PRODUCTS enforcement activities approved by the commissioner.
   § 11. The public health  law  is  amended  by  adding  a  new  section
 1399-mm-1 to read as follows:
   §  1399-MM-1. VAPOR PRODUCTS; CHILD-RESISTANT CONTAINERS REQUIRED.  NO
 PERSON ENGAGED IN THE BUSINESS OF MANUFACTURING,  SELLING  OR  OTHERWISE
 DISTRIBUTING VAPOR PRODUCTS, MAY SELL ANY COMPONENT OF SUCH SYSTEMS THAT
 CONTAINS  NICOTINE, INCLUDING ANY REFILL, CARTRIDGE, OR OTHER COMPONENT,
 UNLESS SUCH COMPONENT CONSTITUTES "SPECIAL PACKAGING" FOR THE PROTECTION
 OF CHILDREN, AS DEFINED IN 15 U.S.C. 1471 OR ANY SUPERSEDING STATUTE.
   § 12. Subdivision 2 of section 409 of the education law, as amended by
 chapter 449 of the laws of 2012, is amended to read as follows:
   2. Notwithstanding the provisions of any  other  law,  rule  or  regu-
 lation,  tobacco,  HERBAL CIGARETTE, AND VAPOR PRODUCTS use shall not be
 permitted and no person shall use  [tobacco]  SUCH  PRODUCTS  on  school
 grounds.  "School grounds" means any building, structure and surrounding
 outdoor grounds, including entrances or exits, contained within a public
 or private pre-school, nursery school, elementary or secondary  school's
 legally  defined  property  boundaries as registered in a county clerk's
 office.
   § 13. Section 3624 of the education law, as amended by chapter 529  of
 the laws of 2002, is amended to read as follows:
   § 3624. Drivers,  monitors  and  attendants.  The  commissioner  shall
 determine and define the qualifications of drivers, monitors and attend-
 ants and shall make the rules and regulations governing the operation of
 all transportation facilities used by pupils which rules and regulations
 shall include, but not be limited to,  a  maximum  speed  of  fifty-five

 S. 2009                            95                            A. 3009
 
 miles  per hour for school vehicles engaged in pupil transportation that
 are operated on roads, interstates or other highways, parkways or bridg-
 es or portions thereof that  have  posted  speed  limits  in  excess  of
 fifty-five  miles  per hour, prohibitions relating to smoking AND USE OF
 VAPOR PRODUCTS, eating and drinking  and  any  and  all  other  acts  or
 conduct  which  would otherwise impair the safe operation of such trans-
 portation facilities while actually being  used  for  the  transport  of
 pupils.  The  employment  of each driver, monitor and attendant shall be
 approved by the chief school administrator of a school district for each
 school bus operated within his or  her  district.  For  the  purpose  of
 determining  his  or  her  physical  fitness,  each  driver, monitor and
 attendant may be examined on order of the chief school administrator  by
 a  duly  licensed  physician  within two weeks prior to the beginning of
 service in each school year as a school bus driver, monitor  or  attend-
 ant. The report of the physician, in writing, shall be considered by the
 chief  school  administrator in determining the fitness of the driver to
 operate or continue to operate any  transportation  facilities  used  by
 pupils  and  in  determining  the fitness of any monitor or attendant to
 carry out his or her functions on such transportation facilities.  Noth-
 ing  in  this  section  shall prohibit a school district from imposing a
 more restrictive speed limit policy for the operation of school vehicles
 engaged in pupil transportation than the speed limit policy  established
 by the commissioner.
   §  14.  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, A VAPOR
 PRODUCT, or tobacco, other than cigarettes, intended for consumption  by
 smoking, chewing, INHALING VAPORS, or as snuff.
   §  15. Subdivision 12 of section 470 of the tax law, as added by chap-
 ter 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.
   §  16.  Section 470 of the tax law is amended by adding a new subdivi-
 sion 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 THOUSAND THREE HUNDRED
 SIXTY-TWO OF THE PUBLIC HEALTH LAW.
   § 17. Subdivision (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.

 S. 2009                            96                            A. 3009
 
   §  18.  Subdivision  1  of  section 471-b of the tax law is amended by
 adding a new subdivision (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.
   § 19. The opening paragraph of subdivision (a) of section 471-c of the
 tax law, as amended by section 2 of part I1 of chapter 57 of the laws of
 2009, is amended to read as follows:
   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.
   §  20.  Paragraph  (i)  of subdivision (a) of section 471-c of the tax
 law, as amended by section 20 of part D of chapter 134 of  the  laws  of
 2010, is amended to read as follows:
   (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.
   § 21. Subdivision (a) of section 471-c of the tax law  is  amended  by
 adding a new paragraph (iv) to read as follows:
   (IV)  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.
   § 22. 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.
   § 23. 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,

 S. 2009                            97                            A. 3009
 
 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.
   §  24.  Subparagraph  (i) of paragraph (b) of subdivision 1 of section
 481 of the tax law, as amended by section 1 of part O of chapter  59  of
 the laws of 2013, is amended to read as follows:
   (i)  In  addition  to  any  other penalty imposed by this article, the
 commissioner may (A) impose a penalty  of  not  more  than  six  hundred
 dollars  for each two hundred cigarettes, or fraction thereof, in excess
 of one thousand cigarettes in unstamped or unlawfully  stamped  packages
 in  the  possession  or  under the control of any person or (B) impose a
 penalty of not more than two hundred  dollars  for  each  ten  unaffixed
 false,   altered  or  counterfeit  cigarette  tax  stamps,  imprints  or
 impressions, or fraction thereof, in the possession or under the control
 of any person. In addition, the commissioner may impose a penalty of not
 more than seventy-five dollars for each fifty cigars [or], one pound  of
 tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction there-
 of,  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  MILLI-
 LITERS  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, howev-
 er, 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 frac-
 tion thereof, in excess of fifty cigars [or], one pound of  tobacco,  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.
   §  25.  Clauses  (B)  and (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, is amended to read as follows:
   (B)(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
 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

 S. 2009                            98                            A. 3009
 
   (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 MILLILITERS OF VAPOR PROD-
 UCT  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; provided, howev-
 er, that any such penalty imposed under this clause shall not exceed ten
 thousand dollars in the aggregate.
   (C)(I) not less than twenty-five dollars but not more than one hundred
 dollars for each fifty cigars [or], one pound of tobacco, OR ONE HUNDRED
 MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in  excess  of  fifty
 cigars  [or],  one pound of tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR
 PRODUCT knowingly in the possession or knowingly under  the  control  of
 any  person, with respect to which the tobacco products tax has not been
 paid or assumed by a distributor or tobacco products dealer; and
   (II) not less than fifty dollars but not more than two hundred dollars
 for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS
 OF VAPOR PRODUCT, or fraction thereof, in excess of  two  hundred  fifty
 cigars  [or],  five  pounds  of  tobacco, OR FIVE HUNDRED MILLILITERS OF
 VAPOR PRODUCT knowingly in the possession or knowingly under the control
 of any person, with respect to which the tobacco products  tax  has  not
 been  paid  or  assumed  by  a distributor or a tobacco products dealer;
 provided, however, that any such penalty imposed under this clause shall
 not exceed twenty thousand dollars in the aggregate.
   § 26. Subdivisions (a) and (h) of section 1814  of  the  tax  law,  as
 amended  by section 28 of subpart I of part V1 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,  OR
 (IV)  FORTY-FOUR  THOUSAND  MILLILITERS  OF VAPOR PRODUCT OR MORE or has
 previously been convicted two or more times of a violation of  paragraph
 [one] (I) 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  taxa-
 tion  and  finance 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 misdemeanor punishable by a fine
 of not more than five thousand dollars or by a term of imprisonment  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 chapter shall be

 S. 2009                            99                            A. 3009
 
 guilty of a misdemeanor punishable by a fine of not more than five thou-
 sand dollars or by a term of imprisonment not to exceed thirty days.
   (3) Any person, other than a distributor appointed by the commissioner
 under  article  twenty of this chapter, who shall knowingly transport or
 have in his custody, possession or under his control twenty-five hundred
 or more cigars, or fifty or more pounds of  tobacco,  OR  FIVE  THOUSAND
 MILLILITERS  OR  MORE  OF  VAPOR PRODUCT upon which the taxes imposed by
 article twenty of this chapter have  not  been  assumed  or  paid  by  a
 distributor  appointed  by the commissioner under article twenty of this
 chapter, or other person treated as a distributor  pursuant  to  section
 four  hundred  seventy-one-d of this chapter shall be guilty of a misde-
 meanor. Provided further, that any person who has twice  been  convicted
 under  this  subdivision  shall  be  guilty  of a class E felony for any
 subsequent violation of this section, regardless of the amount of tobac-
 co products involved in such violation.
   (4) For purposes of this  subdivision,  such  person  shall  knowingly
 transport or have in his custody, possession or under his control tobac-
 co,  [or]  cigars,  OR  VAPOR PRODUCTS on which such taxes have not been
 assumed or 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.
   § 27. 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  MILLILITERS
 OF VAPOR PRODUCT for sale within the state, or produces, manufactures or
 compounds  tobacco products within the state shall be guilty of a misde-
 meanor 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 pounds or more
 of tobacco, OR FIFTY 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 misdemeanor. Provided further, that any
 person who has twice been convicted under this section shall  be  guilty
 of  a  class  E  felony  for  any  subsequent 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.
   §  28. 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:

 S. 2009                            100                           A. 3009
 
   (a) Whenever a police officer designated in section 1.20 of the crimi-
 nal procedure law or a peace officer designated in subdivision  four  of
 section  2.10  of such law, acting pursuant to his special duties, shall
 discover any tobacco products in excess of five hundred cigars [or], ten
 pounds  of  tobacco,  OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT which
 are being imported for sale in the state where the person  importing  or
 causing 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.
   § 29. 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.
   § 30. 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 that date.
 
                                  PART GG
 
   Section  1. Subdivision (d) 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, is amended to read as follows:
   (d) For the purposes of this section, the possession or transportation
 within this state by any person, other than an agent, at any one time of
 [five]  TWO  thousand  or  more  cigarettes  in  unstamped or unlawfully
 stamped packages shall be presumptive evidence that such cigarettes  are
 possessed  or transported for the purpose of sale and are subject to the
 tax imposed by section four hundred seventy-one of  this  chapter.  With

 S. 2009                            101                           A. 3009
 
 respect  to  such possession or transportation any provisions of article
 twenty of this chapter providing for a time period during  which  a  use
 tax  imposed  by  such  article  may  be paid on unstamped cigarettes or
 unlawfully  or  improperly stamped cigarettes or during which such ciga-
 rettes may be returned to an agent shall not apply. The possession with-
 in this state of more than  four  hundred  cigarettes  in  unstamped  or
 unlawfully stamped packages by any person other than an agent at any one
 time  shall  be presumptive evidence that such cigarettes are subject to
 tax as provided by article twenty of this chapter.
   § 2. Subdivision (g) 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,
 is amended to read as follows:
   (g) Any person who falsely or fraudulently makes, alters  or  counter-
 feits any stamp prescribed by the tax commission under the provisions of
 article  twenty  of this chapter, or causes or procures to be falsely or
 fraudulently made, altered or counterfeited any such stamp, or knowingly
 and willfully utters, purchases, passes or  tenders  as  true  any  such
 false,  altered  or  counterfeited  stamp,  or  knowingly  and willfully
 possesses any cigarettes in packages bearing any such false, altered  or
 counterfeited  stamp,  and any person who knowingly and willfully makes,
 causes to be made, purchases or receives any device for forging or coun-
 terfeiting any  stamp,  prescribed  by  the  tax  commission  under  the
 provisions of article twenty of this chapter, or who knowingly and will-
 fully  possesses any such device, shall be guilty of a class [E] C felo-
 ny. For the purposes of this subdivision, the words "stamp prescribed by
 the tax commission" shall include a stamp, impression or imprint made by
 a metering machine, the design  of  which  has  been  approved  by  such
 commission.
   §  3.  This  act  shall  take effect immediately and apply to offenses
 committed on and after such effective date.

                                  PART HH
 
   Section 1. The tax law is amended by adding a  new  section  478-a  to
 read as follows:
   §  478-A.  JEOPARDY ASSESSMENTS. IF THE COMMISSIONER BELIEVES THAT THE
 COLLECTION OF ANY TAX WILL BE JEOPARDIZED BY DELAY, HE OR SHE MAY DETER-
 MINE THE AMOUNT OF SUCH TAX AND  ASSESS  THE  SAME,  TOGETHER  WITH  ALL
 INTEREST AND PENALTIES PROVIDED BY LAW, AGAINST ANY PERSON LIABLE THERE-
 FOR  PRIOR TO THE FILING OF HIS OR HER RETURN AND PRIOR TO THE DATE WHEN
 HIS OR HER RETURN IS REQUIRED TO BE  FILED.  THE  AMOUNT  SO  DETERMINED
 SHALL  BECOME  DUE AND PAYABLE TO THE COMMISSIONER BY THE PERSON AGAINST
 WHOM SUCH A JEOPARDY ASSESSMENT IS MADE, AS SOON AS  NOTICE  THEREOF  IS
 GIVEN  TO  HIM  OR  HER. THE PROVISIONS OF SECTION FOUR HUNDRED SEVENTY-
 EIGHT OF THIS ARTICLE SHALL APPLY TO ANY SUCH  DETERMINATION  EXCEPT  TO
 THE  EXTENT  THAT  THEY  MAY BE INCONSISTENT WITH THE PROVISIONS OF THIS
 SECTION. THE COMMISSIONER MAY ABATE ANY JEOPARDY ASSESSMENT IF HE OR SHE
 FINDS THAT JEOPARDY DOES NOT  EXIST.  THE  COLLECTION  OF  ANY  JEOPARDY
 ASSESSMENT  MAY  BE STAYED BY FILING WITH THE COMMISSIONER A BOND ISSUED
 BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN  THIS  STATE  AND
 APPROVED  BY THE SUPERINTENDENT OF FINANCIAL SERVICES AS TO SOLVENCY AND
 RESPONSIBILITY, OR SUCH OTHER SECURITY ACCEPTABLE TO  THE  COMMISSIONER,
 CONDITIONED UPON PAYMENT OF THE AMOUNT ASSESSED AND INTEREST THEREON, OR
 ANY  LESSER  AMOUNT TO WHICH SUCH ASSESSMENT MAY BE REDUCED BY THE DIVI-
 SION OF TAX APPEALS OR BY A PROCEEDING UNDER  ARTICLE  SEVENTY-EIGHT  OF
 THE  CIVIL  PRACTICE  LAW  AND RULES AS PROVIDED IN SECTION FOUR HUNDRED

 S. 2009                            102                           A. 3009
 
 SEVENTY-EIGHT OF THIS ARTICLE, SUCH PAYMENT TO BE MADE WHEN THE  ASSESS-
 MENT  OR  ANY  SUCH  REDUCTION  THEREOF BECOMES FINAL AND NOT SUBJECT TO
 FURTHER REVIEW. IF SUCH A BOND IS  FILED  AND  THEREAFTER  A  PROCEEDING
 UNDER  ARTICLE  SEVENTY-EIGHT  OF  THE  CIVIL  PRACTICE LAW AND RULES IS
 COMMENCED AS PROVIDED IN SECTION  FOUR  HUNDRED  SEVENTY-EIGHT  OF  THIS
 ARTICLE, DEPOSIT OF THE TAXES, INTEREST AND PENALTIES ASSESSED SHALL NOT
 BE  REQUIRED  AS  A  CONDITION  PRECEDENT  TO  THE  COMMENCEMENT OF SUCH
 PROCEEDING. WHERE A JEOPARDY ASSESSMENT IS MADE, ANY PROPERTY SEIZED FOR
 THE COLLECTION OF THE TAX SHALL NOT BE SOLD: (1) UNTIL EXPIRATION OF THE
 TIME TO APPLY FOR A HEARING AS PROVIDED IN SECTION FOUR  HUNDRED  SEVEN-
 TY-EIGHT  OF  THIS ARTICLE, AND (2) IF SUCH APPLICATION IS TIMELY FILED,
 UNTIL THE EXPIRATION OF THE TIME TO FILE AN EXCEPTION  TO  THE  DETERMI-
 NATION  OF  THE  ADMINISTRATIVE  LAW JUDGE OR, IF AN EXCEPTION IS TIMELY
 FILED, UNTIL FOUR MONTHS AFTER THE TAX APPEALS TRIBUNAL HAS GIVEN NOTICE
 OF ITS DECISION TO THE PERSON  AGAINST  WHOM  THE  ASSESSMENT  IS  MADE;
 PROVIDED,  HOWEVER, SUCH PROPERTY MAY BE SOLD AT ANY TIME IF SUCH PERSON
 HAS FAILED TO ATTEND A HEARING OF WHICH HE OR SHE HAS  BEEN  DULY  NOTI-
 FIED,  OR  IF  HE  OR  SHE  CONSENTS TO THE SALE, OR IF THE COMMISSIONER
 DETERMINES THAT THE EXPENSES OF CONSERVATION AND MAINTENANCE WILL GREAT-
 LY REDUCE THE NET PROCEEDS, OR IF THE PROPERTY IS PERISHABLE.
   § 2. This act shall take effect immediately.
 
                                  PART II
 
   Section 1. 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  CIGARS 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
 CIGARS.
   § 2. 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 CIGARS AS DEFINED IN SUBDIVISION NINETEEN OF SECTION
 FOUR HUNDRED SEVENTY OF THIS ARTICLE SHALL BE AT A  RATE  OF  FORTY-FIVE
 CENTS PER CIGAR.
   § 3. Paragraph (i) of subdivision (a) of section 471-c of the tax law,
 as  amended  by section 20 of part D of chapter 134 of the laws of 2010,
 is amended to read as follows:
   (i) Such tax on tobacco products other than snuff [and], little cigars
 AND CIGARS shall be at the rate of seventy-five percent of the wholesale
 price.
   § 4. Subdivision (a) of section 471-c of the tax  law  is  amended  by
 adding a new paragraph (iv) to read as follows:
   (IV)  SUCH TAX ON CIGARS AS DEFINED IN SUBDIVISION NINETEEN OF SECTION
 FOUR HUNDRED SEVENTY OF THIS ARTICLE SHALL BE AT A  RATE  OF  FORTY-FIVE
 CENTS PER CIGAR.
   § 5. This act shall take effect September 1, 2017.
 
                                  PART JJ
 
   Section  1. Subdivision (e) of section 1401 of the tax law, as amended
 by chapter 760 of the laws of 1992, is amended to read as follows:
   (e) "Conveyance" means the transfer or transfers of  any  interest  in
 real  property  by  any  method,  including  but  not  limited  to sale,

 S. 2009                            103                           A. 3009

 exchange, assignment, surrender, mortgage foreclosure, transfer in  lieu
 of  foreclosure,  option,  trust  indenture,  taking  by eminent domain,
 conveyance upon liquidation or by a receiver, or transfer or acquisition
 of a controlling interest in any entity with an interest in real proper-
 ty.   CONVEYANCE ALSO INCLUDES THE TRANSFER OF AN INTEREST IN A PARTNER-
 SHIP, LIMITED LIABILITY CORPORATION, S CORPORATION OR NON-PUBLICLY TRAD-
 ED C CORPORATION WITH FEWER THAN ONE HUNDRED SHAREHOLDERS THAT  OWNS  AN
 INTEREST  IN  REAL  PROPERTY  THAT IS LOCATED IN NEW YORK AND HAS A FAIR
 MARKET VALUE THAT EQUALS OR EXCEEDS FIFTY PERCENT OF ALL THE  ASSETS  OF
 THE  ENTITY  ON  THE  DATE OF THE TRANSFER OF AN INTEREST IN THE ENTITY.
 ONLY  THOSE ASSETS THAT THE ENTITY OWNED FOR AT LEAST TWO  YEARS  BEFORE
 THE  DATE OF THE TRANSFER OF THE TAXPAYER'S INTEREST IN THE ENTITY SHALL
 BE USED IN DETERMINING THE FAIR MARKET VALUE OF ALL THE  ASSETS  OF  THE
 ENTITY  ON  THE  DATE  OF  THE TRANSFER. Transfer of an interest in real
 property shall include the creation of  a  leasehold  or  sublease  only
 where  (i)  the sum of the term of the lease or sublease and any options
 for renewal exceeds forty-nine years, (ii) substantial capital  improve-
 ments  are or may be made by or for the benefit of the lessee or subles-
 see, and (iii) the lease or sublease is for  substantially  all  of  the
 premises  constituting the real property. Notwithstanding the foregoing,
 conveyance of real property shall not include a conveyance  pursuant  to
 devise,  bequest  or inheritance; the creation, modification, extension,
 spreading, severance, consolidation, assignment,  transfer,  release  or
 satisfaction  of a mortgage; a mortgage subordination agreement, a mort-
 gage severance agreement, an instrument given to perfect  or  correct  a
 recorded  mortgage; or a release of lien of tax pursuant to this chapter
 or the internal revenue code.
   § 2. Subdivision (d) of section 1401 of the  tax  law  is  amended  by
 adding a new paragraph (vi) to read as follows:
   (VI) IN THE CASE OF A TRANSFER OF AN INTEREST IN A PARTNERSHIP, LIMIT-
 ED  LIABILITY CORPORATION, S CORPORATION OR NON-PUBLICLY TRADED C CORPO-
 RATION WITH ONE HUNDRED OR FEWER SHAREHOLDERS THAT  OWNS  REAL  PROPERTY
 THAT  IS  LOCATED IN NEW YORK AND HAS A FAIR MARKET VALUE THAT EQUALS OR
 EXCEEDS FIFTY PERCENT OF ALL THE ASSETS OF THE ENTITY ON THE DATE OF THE
 TRANSFER OF AN INTEREST IN THE ENTITY, THE CONSIDERATION FOR THE CONVEY-
 ANCE SHALL BE CALCULATED BY MULTIPLYING (1) THE FAIR MARKET VALUE OF THE
 REAL PROPERTY THAT IS LOCATED IN NEW YORK THAT IS OWNED  BY  THE  ENTITY
 AND (2) THE PERCENTAGE OF THE ENTITY THAT IS TRANSFERRED.
   §  3. This act shall take effect immediately and shall apply to trans-
 fers occurring on and after the effective date.
 
                                  PART KK
 
   Section 1. Section 1402-a of the tax law is amended by  adding  a  new
 subdivision (b-1) to read as follows:
   (B-1)  THE COMMISSIONER IS AUTHORIZED TO TREAT AS SUBJECT TO TAX UNDER
 THIS SECTION ANY CONVEYANCE OF AN INTEREST IN REAL PROPERTY MADE  PURSU-
 ANT  TO  AN  AGREEMENT, UNDERSTANDING OR ARRANGEMENT THAT RESULTS IN THE
 AVOIDANCE OR EVASION OF THE TAX IMPOSED BY THIS SECTION.
   § 2. This act shall take effect immediately.
 
                                  PART LL
 
   Section 1. Section 902 of the racing, pari-mutuel wagering and  breed-
 ing  law, as amended by chapter 60 of the laws of 1993, subdivision 1 as

 S. 2009                            104                           A. 3009
 
 amended by chapter 15 of the laws of 2010 and subdivision 2  as  amended
 by chapter 18 of the laws of 2008, is amended to read as follows:
   §  902.  Equine  drug  testing and expenses. 1. In order to assure the
 public's confidence and continue the high degree of integrity in  racing
 at  the pari-mutuel betting tracks, equine drug testing at race meetings
 shall be conducted by  a  [state  college  within  this  state  with  an
 approved  equine  science  program]  SUITABLE LABORATORY OR LABORATORIES
 LOCATED IN NEW YORK STATE, AS THE GAMING COMMISSION MAY DETERMINE IN ITS
 DISCRETION. The [state racing  and  wagering  board]  GAMING  COMMISSION
 shall  promulgate  any  rules and regulations necessary to implement the
 provisions of this section, including administrative penalties  of  loss
 of  purse  money,  fines,  or  denial,  suspension[,] or revocation of a
 license for racing drugged horses.
   2. Notwithstanding any inconsistent provision of law,  all  costs  and
 expenses  of the [state racing and wagering board] GAMING COMMISSION for
 equine drug testing and research shall be paid  from  [an  appropriation
 from  the  state  treasury,  on the certification of the chairman of the
 state racing and wagering board, upon the audit and warrant of the comp-
 troller and pursuant to a plan developed by the state racing and  wager-
 ing  board  as approved by the director of the budget] AN ASSESSMENT THE
 COMMISSION MAY MAKE ON HORSEMEN ENTERING HORSES IN RACES, AN  ASSESSMENT
 THE COMMISSION MAY MAKE ON RACETRACKS, OR BOTH.
   §  2. Subdivision 2 of section 228 of the racing, pari-mutuel wagering
 and breeding law, as amended by chapter 18 of the laws of 2008  and  the
 opening  paragraph  as  amended  by  chapter 291 of the laws of 2016, is
 amended to read as follows:
   2. The New York state gaming  commission  shall,  as  a  condition  of
 racing,  require  any franchised corporation and every other corporation
 subject to its jurisdiction to  withhold  one  percent  of  all  purses,
 except that for the franchised corporation, starting on September first,
 two thousand seven and continuing through August thirty-first, two thou-
 sand seventeen, two percent of all purses shall be withheld, and, in the
 case  of  the  franchised corporation, to pay such sum to the horsemen's
 organization or  its  successor  that  was  first  entitled  to  receive
 payments  pursuant  to  this  section  in  accordance  with rules of the
 commission adopted effective November third,  nineteen  hundred  eighty-
 three representing at least fifty-one percent of the owners and trainers
 [utilizing]  USING the facilities of such franchised corporation, on the
 condition that such horsemen's organization shall expend [as much as  is
 necessary,  but  not  to  exceed]  one-half of one percent of such total
 sum[,] to acquire and maintain the equipment required  to  [establish  a
 program  at  a  state  college within this state with an approved equine
 science program to] test, AT A SUITABLE LABORATORY LOCATED IN  NEW  YORK
 STATE, AS THE GAMING COMMISSION MAY DETERMINE IN ITS DISCRETION, for the
 presence  of  [steroids]  IMPERMISSIBLE  DRUGS  OR OTHER SUBSTANCES THAT
 MIGHT BE CLASSIFIED AS  IMPERMISSIBLE  SUBSTANCES  in  horses,  provided
 further  that  the qualified organization shall also, in an amount to be
 determined by its board of directors, annually include in  its  expendi-
 tures for benevolence programs, funds to support an organization provid-
 ing  services  necessary  to  backstretch employees, and, in the case of
 every other corporation, to pay such one percent sum of  purses  to  the
 horsemen's  organization  or  its  successor  that was first entitled to
 receive payments pursuant to this section in accordance  with  rules  of
 the  commission  adopted  effective  May  twenty-third, nineteen hundred
 eighty-six representing at least fifty-one percent  of  the  owners  and
 trainers [utilizing] USING the facilities of such corporation.

 S. 2009                            105                           A. 3009
 
   In  either  case,  any  other horsemen's organization may apply to the
 [board] COMMISSION to be  approved  as  the  qualified  organization  to
 receive  payment  of  the one percent of all purses by submitting to the
 [board] COMMISSION proof of both,  that  (i)  it  represents  more  than
 fifty-one  percent  of all the owners and trainers [utilizing] USING the
 same facilities and (ii) the horsemen's organization previously approved
 as qualified by the [board]  COMMISSION  does  not  represent  fifty-one
 percent of all the owners and trainers [utilizing] USING the same facil-
 ities.  If  the  [board]  COMMISSION is satisfied that the documentation
 submitted with the application of any other horsemen's  organization  is
 conclusive  with respect to items (i) and (ii) of this paragraph, it may
 approve the applicant as the qualified recipient organization.
   In the best interests of racing, upon receipt of such an  application,
 the  [board] COMMISSION may direct the payments to the previously quali-
 fied horsemen's organization to continue uninterrupted, or it may direct
 the payments to be withheld and placed in interest-bearing accounts  for
 a  period  not  to  exceed  ninety  days,  during which time the [board]
 COMMISSION shall review and approve or disapprove the application. Funds
 held in such manner shall be paid to the organization  approved  by  the
 [board] COMMISSION. In no event shall the [board] COMMISSION accept more
 than  one such application in any calendar year from the same horsemen's
 organization.
   The funds authorized to be paid by the [board] COMMISSION  are  to  be
 used  exclusively  for  the benefit of those horsemen racing in New York
 state through the administrative purposes of  such  qualified  organiza-
 tion,  benevolent activities on behalf of backstretch employees, and for
 the promotion of equine research.
   § 3. This act shall take effect immediately.
 
                                  PART MM
 
   Section 1. Article 19-B of the executive law is REPEALED.
   § 1-a. Article 9-A of the general municipal law is REPEALED.
   § 1-b. Article 14-H of the general municipal law is REPEALED.
   § 1-c. Article 34 of the tax law is REPEALED.
   § 2. The racing, pari-mutuel wagering and breeding law is  amended  by
 adding a new article 15 to read as follows:
                                ARTICLE 15
                             CHARITABLE GAMING
 TITLE 1. GENERAL PROVISIONS.
       2. BINGO CONTROL.
       3. LOCAL OPTION FOR CONDUCT OF BINGO BY CERTAIN ORGANIZATIONS.
       4. LOCAL  OPTION  FOR CONDUCT OF GAMES OF CHANCE BY CERTAIN ORGAN-
            IZATIONS.
                                  TITLE 1
                            GENERAL PROVISIONS
 SECTION 1500. DEFINITIONS.
         1501. FORMS.
         1502. PARTICIPATION BY PERSONS UNDER THE AGE OF EIGHTEEN.
         1503. SUNDAYS.
         1504. ADVERTISING OF CHARITABLE GAMES.
         1505. SANCTIONS FOR VIOLATIONS.
         1506. SEVERABILITY.
   § 1500. DEFINITIONS. AS USED IN THIS ARTICLE, IN ADDITION TO THE DEFI-
 NITIONS SET FORTH IN SECTION  ONE  HUNDRED  ONE  OF  THIS  CHAPTER,  THE
 FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:

 S. 2009                            106                           A. 3009
 
   1.  "AUTHORIZED BINGO LESSOR" SHALL MEAN A PERSON, FIRM OR CORPORATION
 OTHER THAN A LICENSEE TO CONDUCT BINGO  UNDER  THE  PROVISIONS  OF  THIS
 ARTICLE,  WHO OR WHICH OWNS OR IS A NET LESSEE OF PREMISES AND OFFER THE
 SAME FOR LEASING BY HIM, HER OR IT TO AN AUTHORIZED ORGANIZATION FOR ANY
 CONSIDERATION  WHATSOEVER,  DIRECT  OR  INDIRECT,  FOR  THE  PURPOSE  OF
 CONDUCTING BINGO THEREIN, PROVIDED, THAT HE, SHE OR IT, AS THE CASE  MAY
 BE, SHALL NOT BE:
   (A)  A  PERSON  CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP
 BETWEEN ONE OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE  INTEGRITY
 OF  BINGO,  CONSIDERING  THE  FACTORS SET FORTH IN SECTION SEVEN HUNDRED
 FIFTY-THREE OF THE CORRECTION LAW;
   (B) A PERSON WHO IS OR HAS BEEN A  PROFESSIONAL  GAMBLER  OR  GAMBLING
 PROMOTER OR WHO FOR OTHER REASONS IS NOT OF GOOD MORAL CHARACTER;
   (C)  A  PUBLIC OFFICER WHO RECEIVES ANY CONSIDERATION, DIRECT OR INDI-
 RECT, AS OWNER OR LESSOR OF PREMISES OFFERED FOR THE PURPOSE OF CONDUCT-
 ING BINGO THEREIN; OR
   (D) A FIRM OR CORPORATION IN WHICH A PERSON DEFINED IN PARAGRAPH  (A),
 (B)  OR  (C)  OF  THIS SUBDIVISION OR A PERSON MARRIED OR RELATED IN THE
 FIRST DEGREE TO SUCH A PERSON HAS GREATER THAN A  TEN  PERCENT  PROPRIE-
 TARY,  EQUITABLE  OR CREDIT INTEREST OR IN WHICH SUCH A PERSON IS ACTIVE
 OR EMPLOYED.
   NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED  TO  BAR  ANY
 FIRM  OR  CORPORATION  THAT IS NOT ORGANIZED FOR PECUNIARY PROFIT AND NO
 PART OF THE NET EARNINGS OF WHICH INURE TO THE BENEFIT OF  ANY  INDIVID-
 UAL, MEMBER OR SHAREHOLDER, FROM BEING AN AUTHORIZED BINGO LESSOR SOLELY
 BECAUSE  A  PUBLIC  OFFICER, OR A PERSON MARRIED OR RELATED IN THE FIRST
 DEGREE TO A PUBLIC OFFICER, IS A MEMBER OF, ACTIVE  IN  OR  EMPLOYED  BY
 SUCH FIRM OR CORPORATION.
   2. "AUTHORIZED GAMES OF CHANCE LESSOR" SHALL MEAN AN AUTHORIZED ORGAN-
 IZATION  THAT  HAS  BEEN  GRANTED  A  LESSOR'S  LICENSE  PURSUANT TO THE
 PROVISIONS OF TITLE FOUR OF THIS ARTICLE OR A MUNICIPALITY.
   3. "AUTHORIZED ORGANIZATION" SHALL MEAN ANY  BONA  FIDE  RELIGIOUS  OR
 CHARITABLE  ORGANIZATION  OR  BONA FIDE EDUCATIONAL, FRATERNAL, CIVIC OR
 SERVICE ORGANIZATION OR BONA FIDE ORGANIZATION  OF  VETERANS,  VOLUNTEER
 FIREFIGHTERS OR VOLUNTEER AMBULANCE WORKERS THAT BY ITS CHARTER, CERTIF-
 ICATE OF INCORPORATION, CONSTITUTION OR ACT OF THE LEGISLATURE HAS AMONG
 ITS  DOMINANT  PURPOSES ONE OR MORE OF THE LAWFUL PURPOSES AS DEFINED IN
 THIS SECTION, PROVIDED THAT EACH SHALL OPERATE  WITHOUT  PROFIT  TO  ITS
 MEMBERS  AND PROVIDED THAT EACH SUCH ORGANIZATION HAS ENGAGED IN SERVING
 ONE OR MORE OF THE LAWFUL PURPOSES AS DEFINED  IN  THIS  SECTION  FOR  A
 PERIOD  OF  ONE  YEAR  IMMEDIATELY PRIOR TO APPLYING FOR A LICENSE UNDER
 THIS ARTICLE. NO ORGANIZATION SHALL BE DEEMED AN AUTHORIZED ORGANIZATION
 THAT IS FORMED PRIMARILY FOR THE PURPOSE OF CONDUCTING BINGO OR GAMES OF
 CHANCE AND THAT DOES NOT DEVOTE AT LEAST  SEVENTY-FIVE  PERCENT  OF  ITS
 ACTIVITIES  TO  OTHER THAN CONDUCTING BINGO OR GAMES OF CHANCE. NO POLI-
 TICAL PARTY, POLITICAL CAMPAIGN OR POLITICAL CAMPAIGN COMMITTEE SHALL BE
 DEEMED AN AUTHORIZED ORGANIZATION.
   4. "AUTHORIZED SUPPLIER OF GAMES OF CHANCE EQUIPMENT" SHALL  MEAN  ANY
 PERSON,  FIRM,  PARTNERSHIP, CORPORATION OR ORGANIZATION LICENSED BY THE
 COMMISSION TO SELL OR LEASE GAMES OF CHANCE EQUIPMENT  OR  PARAPHERNALIA
 THAT MEETS THE SPECIFICATIONS AND REGULATIONS ESTABLISHED BY THE COMMIS-
 SION.  NOTHING  HEREIN  SHALL  PREVENT  AN  AUTHORIZED ORGANIZATION FROM
 PURCHASING COMMON ARTICLES, SUCH AS CARDS AND DICE, FROM NORMAL  SOURCES
 OF  SUPPLY OF SUCH ARTICLES OR FROM CONSTRUCTING EQUIPMENT AND PARAPHER-
 NALIA FOR GAMES OF CHANCE FOR ITS OWN USE.  HOWEVER, NO  SUCH  EQUIPMENT
 OR  PARAPHERNALIA,  CONSTRUCTED  OR  OWNED BY AN AUTHORIZED ORGANIZATION

 S. 2009                            107                           A. 3009
 
 SHALL BE SOLD OR LEASED TO ANY OTHER  AUTHORIZED  ORGANIZATION,  WITHOUT
 WRITTEN PERMISSION FROM THE COMMISSION.
   5.  "BELL  JARS" SHALL MEAN AND INCLUDE THOSE GAMES IN WHICH A PARTIC-
 IPANT SHALL DRAW A CARD THAT CONTAINS NUMBERS, COLORS  OR  SYMBOLS  THAT
 ARE  COVERED  AND THAT, WHEN UNCOVERED, MAY REVEAL THAT A PRIZE SHALL BE
 AWARDED ON THE BASIS OF A DESIGNATED WINNING NUMBER, COLOR OR SYMBOL  OR
 COMBINATION OF NUMBERS, COLORS OR SYMBOLS. SUCH CARD SHALL BE DRAWN FROM
 A  JAR, VENDING MACHINE OR OTHER SUITABLE DEVICE OR CONTAINER. BELL JARS
 SHALL ALSO INCLUDE SEAL CARDS, COIN BOARDS, EVENT GAMES AND  MERCHANDISE
 BOARDS.
   6.  "BINGO"  SHALL  MEAN  A SPECIFIC GAME OF CHANCE, COMMONLY KNOWN AS
 BINGO OR LOTTO, IN WHICH PRIZES ARE AWARDED ON THE BASIS  OF  DESIGNATED
 NUMBERS  OR  SYMBOLS ON A CARD CONFORMING TO NUMBERS OR SYMBOLS SELECTED
 AT RANDOM.
   7. "BINGO CONTROL LAW" SHALL MEAN TITLE TWO OF THIS ARTICLE.
   8. "BINGO LICENSING LAW" SHALL MEAN TITLE THREE OF THIS ARTICLE.
   9. "BONUS BALL" SHALL MEAN A BINGO GAME THAT IS PLAYED IN  CONJUNCTION
 WITH ONE OR MORE REGULAR OR SPECIAL BINGO GAMES DESIGNATED AS BONUS BALL
 GAMES BY THE LICENSED AUTHORIZED ORGANIZATION DURING ONE OR MORE CONSEC-
 UTIVE  BINGO OCCASIONS IN WHICH A PRIZE IS AWARDED TO THE PLAYER OBTAIN-
 ING A SPECIFIED WINNING BINGO PATTERN WHEN THE LAST NUMBER CALLED BY THE
 LICENSED AUTHORIZED ORGANIZATION IS THE DESIGNATED  BONUS  BALL  NUMBER.
 THE  BONUS BALL PRIZE SHALL BE BASED UPON A PERCENTAGE OF THE SALES FROM
 OPPORTUNITIES TO PARTICIPATE IN BONUS BALL GAMES NOT TO EXCEED  SEVENTY-
 FIVE  PERCENT  OF  THE SUM OF MONEY RECEIVED FROM THE SALE OF BONUS BALL
 OPPORTUNITIES OR TEN THOUSAND DOLLARS,  WHICHEVER  SHALL  BE  LESS,  AND
 WHICH  IS  NOT  SUBJECT TO THE PRIZE LIMITS IMPOSED BY SUBDIVISIONS FIVE
 AND SIX OF SECTION FIFTEEN HUNDRED TWENTY-THREE  AND  PARAGRAPH  (A)  OF
 SUBDIVISION  ONE OF SECTION FIFTEEN HUNDRED TWENTY-FIVE OF THIS ARTICLE.
 THE PERCENTAGE SHALL BE SPECIFIED BOTH IN THE APPLICATION FOR THE  BINGO
 LICENSE AND THE LICENSEE.  NOTWITHSTANDING SECTION FIFTEEN HUNDRED THIR-
 TY-ONE  OF  THIS  ARTICLE, NOT MORE THAN ONE DOLLAR SHALL BE CHARGED PER
 PLAYER FOR AN  OPPORTUNITY  TO  PARTICIPATE  IN  ALL  BONUS  BALL  GAMES
 CONDUCTED DURING A SINGLE BINGO OCCASION, AND THE TOTAL AMOUNT COLLECTED
 FROM THE SALE OF BONUS BALL OPPORTUNITIES AND THE AMOUNT OF THE PRIZE TO
 BE AWARDED SHALL BE ANNOUNCED PRIOR TO THE START OF EACH BINGO OCCASION.
   10.  "COIN  BOARD"  AND "MERCHANDISE BOARD" SHALL MEAN A BOARD USED IN
 CONJUNCTION WITH BELL JAR TICKETS THAT  CONTAINS  AND  DISPLAYS  VARIOUS
 COINS  AND/OR  MERCHANDISE  AS PRIZES. A PLAYER HAVING A BELL JAR TICKET
 WITH A NUMBER MATCHING A PRE-DESIGNATED NUMBER REFLECTED  ON  THE  BOARD
 FOR A PRIZE WINS THAT PRIZE.
   11. "CLERK" SHALL MEAN THE CLERK OF A MUNICIPALITY OUTSIDE THE CITY OF
 NEW YORK.
   12.  "DEPARTMENT"  SHALL MEAN THE NEW YORK CITY DEPARTMENT OF CONSUMER
 AFFAIRS.
   13. "EARLY BIRD" SHALL MEAN A BINGO GAME THAT IS PLAYED AS  A  SPECIAL
 GAME,  CONDUCTED  NOT  MORE THAN TWICE DURING A BINGO OCCASION, IN WHICH
 PRIZES ARE AWARDED BASED UPON A PERCENTAGE NOT  TO  EXCEED  SEVENTY-FIVE
 PERCENT  OF  THE  SUM  OF MONEY RECEIVED FROM THE SALE OF THE EARLY BIRD
 CARDS AND THAT IS NEITHER SUBJECT TO THE PRIZE LIMITS IMPOSED BY  SUBDI-
 VISIONS  FIVE  AND SIX OF SECTION FIFTEEN HUNDRED TWENTY-THREE AND PARA-
 GRAPH (A) OF SUBDIVISION ONE OF SECTION FIFTEEN HUNDRED TWENTY-FIVE, NOR
 THE SPECIAL GAME OPPORTUNITY CHARGE LIMIT  IMPOSED  BY  SECTION  FIFTEEN
 HUNDRED  THIRTY-ONE  OF  THIS ARTICLE. THE PERCENTAGE SHALL BE SPECIFIED
 BOTH IN THE APPLICATION FOR BINGO LICENSE AND THE  LICENSE.    NOT  MORE
 THAN  ONE  DOLLAR  SHALL  BE  CHARGED  PER  CARD  WITH  THE TOTAL AMOUNT

 S. 2009                            108                           A. 3009
 
 COLLECTED FROM THE SALE OF THE EARLY BIRD CARDS AND THE PRIZE  FOR  EACH
 GAME TO BE ANNOUNCED BEFORE THE COMMENCEMENT OF EACH GAME.
   14.  "EVENT  GAME" SHALL MEAN A BELL JAR GAME IN WHICH CERTAIN WINNERS
 ARE DETERMINED BY THE RANDOM SELECTION OF ONE OR MORE BINGO NUMBERS, THE
 USE OF A SEAL CARD OR BY ANOTHER METHOD APPROVED BY THE COMMISSION.
   15. "FLARE" SHALL MEAN A POSTER DESCRIPTION  OF  THE  BELL  JAR  GAME,
 WHICH SHALL INCLUDE:
   (A)  A  DECLARATION  OF  THE NUMBER OF WINNERS AND AMOUNT OF PRIZES IN
 EACH DEAL;
   (B) THE NUMBER OF PRIZES AVAILABLE IN THE DEAL;
   (C) THE NUMBER OF TICKETS IN EACH DEAL THAT CONTAIN THE STATED PRIZE;
   (D) THE MANUFACTURER'S GAME FORM NUMBER AND THE SERIAL NUMBER  OF  THE
 DEAL,  WHICH  SHALL  BE IDENTICAL TO THE SERIAL NUMBER IMPRINTED ON EACH
 TICKET CONTAINED IN THE DEAL; AND
   (E) SUCH OTHER REQUIREMENTS  AS  THE  RULES  AND  REGULATIONS  OF  THE
 COMMISSION MAY REQUIRE.
   16.  "GAMES  OF CHANCE" SHALL MEAN AND INCLUDE ONLY THE GAMES KNOWN AS
 "MERCHANDISE WHEELS," "COIN BOARDS," "MERCHANDISE BOARDS," "SEAL CARDS,"
 "EVENT GAMES," "RAFFLES," "BELL JARS" AND SUCH OTHER SPECIFIC  GAMES  AS
 MAY  BE AUTHORIZED BY THE COMMISSION, IN WHICH PRIZES ARE AWARDED ON THE
 BASIS OF A DESIGNATED WINNING NUMBER OR NUMBERS, COLOR OR COLORS, SYMBOL
 OR SYMBOLS DETERMINED BY CHANCE, BUT NOT INCLUDING GAMES COMMONLY  KNOWN
 AS  "BINGO"  OR "LOTTO," WHICH ARE CONTROLLED UNDER TITLES TWO AND THREE
 OF THIS ARTICLE, AND ALSO NOT INCLUDING "BOOKMAKING," "POLICY OR NUMBERS
 GAMES" AND "LOTTERY" AS DEFINED IN SECTION 225.00 OF THE PENAL LAW.
   17. "LAWFUL PURPOSES" SHALL MEAN ONE OR MORE OF THE FOLLOWING  CAUSES,
 DEEDS OR ACTIVITIES:
   (A) THOSE THAT BENEFIT NEEDY OR DESERVING PERSONS INDEFINITE IN NUMBER
 BY ENHANCING THEIR OPPORTUNITY FOR RELIGIOUS OR EDUCATIONAL ADVANCEMENT,
 BY  RELIEVING THEM FROM DISEASE, SUFFERING OR DISTRESS, OR BY CONTRIBUT-
 ING TO THEIR PHYSICAL WELL-BEING,  BY  ASSISTING  THEM  IN  ESTABLISHING
 THEMSELVES IN LIFE AS WORTHY AND USEFUL CITIZENS, OR BY INCREASING THEIR
 COMPREHENSION  OF  AND DEVOTION TO THE PRINCIPLES UPON WHICH THIS NATION
 WAS FOUNDED AND ENHANCING THEIR LOYALTY TO THEIR GOVERNMENTS;
   (B) THOSE THAT INITIATE, PERFORM OR  FOSTER  WORTHY  PUBLIC  WORKS  OR
 ENABLE OR FURTHER THE ERECTION OR MAINTENANCE OF PUBLIC STRUCTURES;
   (C)  THOSE THAT INITIATE, PERFORM OR FOSTER THE PROVISIONS OF SERVICES
 TO VETERANS BY ENCOURAGING THE GATHERING OF SUCH VETERANS AND ENABLE  OR
 FURTHER THE ERECTION OR MAINTENANCE OF FACILITIES FOR USE BY SUCH VETER-
 ANS  THAT  SHALL BE USED PRIMARILY FOR CHARITABLE OR PATRIOTIC PURPOSES,
 OR THOSE PURPOSES THAT SHALL BE AUTHORIZED BY A BONA  FIDE  ORGANIZATION
 OF  VETERANS,  PROVIDED  HOWEVER  THAT  SUCH  PROCEEDS  ARE DISBURSED IN
 ACCORDANCE WITH THE RULES AND REGULATIONS OF THE COMMISSION AND  SECTION
 FIFTEEN HUNDRED FIFTY-FOUR OF THIS ARTICLE; AND
   (D) THOSE THAT OTHERWISE LESSEN THE BURDENS BORNE BY THE GOVERNMENT OR
 THAT ARE VOLUNTARILY UNDERTAKEN BY AN AUTHORIZED ORGANIZATION TO AUGMENT
 OR  SUPPLEMENT SERVICES THAT THE GOVERNMENT WOULD NORMALLY RENDER TO THE
 PEOPLE, INCLUDING, IN THE CASE OF  VOLUNTEER  FIREFIGHTERS'  ACTIVITIES,
 THE  PURCHASE,  ERECTION  OR  MAINTENANCE OF A BUILDING FOR A FIREHOUSE,
 ACTIVITIES OPEN TO THE PUBLIC FOR THE ENHANCEMENT OF MEMBERSHIP AND  THE
 PURCHASE  OF  EQUIPMENT  THAT CAN REASONABLY BE EXPECTED TO INCREASE THE
 EFFICIENCY OF RESPONSE TO FIRES, ACCIDENTS, PUBLIC CALAMITIES AND  OTHER
 EMERGENCIES.
   18. "LICENSE PERIOD" SHALL MEAN:
   (A)  FOR  BINGO,  THE DURATION OF A LICENSE ISSUED PURSUANT TO SECTION
 FIFTEEN HUNDRED TWENTY-FIVE OF THIS ARTICLE;

 S. 2009                            109                           A. 3009
 
   (B) FOR GAMES OF CHANCE OTHER THAN BELL JARS OR RAFFLES, A  PERIOD  OF
 TIME NOT TO EXCEED FOURTEEN CONSECUTIVE HOURS; AND
   (C)  FOR  BELL JARS AND RAFFLES, A PERIOD OF TIME RUNNING FROM JANUARY
 FIRST TO DECEMBER THIRTY-FIRST OF THE YEAR SET FORTH IN THE LICENSE.
   19. "LIMITED-PERIOD BINGO" SHALL  MEAN  THE  CONDUCT  OF  BINGO  BY  A
 LICENSED AUTHORIZED ORGANIZATION, FOR A PERIOD OF NOT MORE THAN SEVEN OF
 TWELVE CONSECUTIVE DAYS IN ANY ONE YEAR, AT A FESTIVAL, BAZAAR, CARNIVAL
 OR  SIMILAR FUNCTION CONDUCTED BY SUCH LICENSED AUTHORIZED ORGANIZATION.
 NO AUTHORIZED ORGANIZATION  LICENSED  TO  CONDUCT  LIMITED-PERIOD  BINGO
 SHALL  BE  OTHERWISE ELIGIBLE TO CONDUCT BINGO PURSUANT TO THIS TITLE IN
 THE SAME YEAR.
   20. "MUNICIPAL OFFICER" SHALL MEAN THE CHIEF LAW  ENFORCEMENT  OFFICER
 OF  A MUNICIPALITY OUTSIDE THE CITY OF NEW YORK, OR IF SUCH MUNICIPALITY
 EXERCISES THE OPTION SET FORTH IN SUBDIVISION  TWO  OF  SECTION  FIFTEEN
 HUNDRED  SIXTY-THREE  OF THIS ARTICLE, THE CHIEF LAW ENFORCEMENT OFFICER
 OF THE COUNTY.
   21. "MUNICIPALITY" SHALL MEAN ANY CITY, TOWN OR  VILLAGE  WITHIN  THIS
 STATE.
   22.  "NET  LEASE"  SHALL MEAN A WRITTEN AGREEMENT BETWEEN A LESSOR AND
 LESSEE  UNDER  THE  TERMS  OF  WHICH  THE  LESSEE  IS  ENTITLED  TO  THE
 POSSESSION,  USE  OR  OCCUPANCY  OF  THE WHOLE OR PART OF ANY COMMERCIAL
 PREMISES FOR WHICH THE LESSEE PAYS  RENT  TO  THE  LESSOR  AND  LIKEWISE
 UNDERTAKES  TO PAY SUBSTANTIALLY ALL OF THE REGULARLY RECURRING EXPENSES
 INCIDENT TO THE OPERATION AND MAINTENANCE OF SUCH LEASED PREMISES.
   23. "NET PROCEEDS" SHALL MEAN:
   (A) IN RELATION TO THE GROSS RECEIPTS FROM ONE OR  MORE  OCCASIONS  OF
 BINGO,  THE  AMOUNT  THAT  REMAINS  AFTER  DEDUCTING THE REASONABLE SUMS
 NECESSARILY AND ACTUALLY EXPENDED  FOR  BINGO  SUPPLIES  AND  EQUIPMENT,
 PRIZES,  STATED  RENTAL,  IF  ANY,  BOOKKEEPING  OR  ACCOUNTING SERVICES
 ACCORDING TO A SCHEDULE OF COMPENSATION PRESCRIBED  BY  THE  COMMISSION,
 JANITORIAL  SERVICES  AND UTILITY SUPPLIES IF ANY, LICENSE FEES, AND THE
 COST OF BUS TRANSPORTATION, IF AUTHORIZED BY THE COMMISSION;
   (B) IN RELATION TO BELL JARS, THE DIFFERENCE BETWEEN THE IDEAL  HANDLE
 FROM  THE  SALE  OF BELL JAR TICKETS, SEAL CARDS, MERCHANDISE BOARDS AND
 COIN BOARDS LESS THE AMOUNT OF MONEY PAID OUT IN  PRIZES  AND  LESS  THE
 PURCHASE  PRICE  OF THE BELL JAR DEAL, SEAL CARD DEAL, MERCHANDISE BOARD
 DEAL OR COIN BOARD DEAL.   ADDITIONALLY, A  CREDIT  SHALL  BE  PERMITTED
 AGAINST THE NET PROCEEDS FEE TENDERED TO THE COMMISSION FOR UNSOLD TICK-
 ETS  OF  THE  BELL  JAR DEAL SO LONG AS THE UNSOLD TICKETS HAVE THE SAME
 SERIAL AND FORM NUMBER AS THE TICKETS FOR WHICH THE FEE IS RENDERED;
   (C) IN RELATION TO THE GROSS RECEIPTS FROM ONE OR MORE LICENSE PERIODS
 OF GAMES OF CHANCE, THE AMOUNT THAT SHALL  REMAIN  AFTER  DEDUCTING  THE
 REASONABLE  SUMS  NECESSARILY  AND  ACTUALLY  EXPENDED  FOR SUPPLIES AND
 EQUIPMENT, PRIZES, SECURITY-PERSONNEL, STATED RENTAL IF ANY, BOOKKEEPING
 OR  ACCOUNTING  SERVICES  ACCORDING  TO  A  SCHEDULE   OF   COMPENSATION
 PRESCRIBED  BY THE COMMISSION, JANITORIAL SERVICES AND UTILITY SUPPLIES,
 IF ANY, LICENSE FEES, AND THE COST OF BUS TRANSPORTATION, IF  AUTHORIZED
 BY THE CLERK OR DEPARTMENT;
   (D) IN RELATION TO THE GROSS RENT RECEIVED BY AN ORGANIZATION LICENSED
 TO  CONDUCT  BINGO  FOR THE USE OF ITS PREMISES BY ANOTHER LICENSEE, THE
 AMOUNT THAT REMAINS AFTER DEDUCTING THE REASONABLE SUMS NECESSARILY  AND
 ACTUALLY  EXPENDED FOR JANITORIAL SERVICES AND UTILITY SUPPLIES DIRECTLY
 ATTRIBUTABLE THERETO IF ANY; AND
   (E) IN RELATION TO THE GROSS RENT RECEIVED BY AN AUTHORIZED  GAMES  OF
 CHANCE  LESSOR FOR THE USE OF ITS PREMISES BY A GAME OF CHANCE LICENSEE,
 THE AMOUNT THAT SHALL REMAIN AFTER DEDUCTING THE REASONABLE SUMS  NECES-

 S. 2009                            110                           A. 3009
 
 SARILY  AND  ACTUALLY  EXPENDED  FOR  JANITORIAL  SERVICES  AND  UTILITY
 SUPPLIES DIRECTLY ATTRIBUTABLE THERETO IF ANY.
   24. (A) "ONE OCCASION" SHALL MEAN THE SUCCESSIVE OPERATIONS OF ANY ONE
 SINGLE  TYPE  OF GAME OF CHANCE THAT RESULTS IN THE AWARDING OF A SERIES
 OF PRIZES AMOUNTING TO FIVE HUNDRED  DOLLARS  OR  FOUR  HUNDRED  DOLLARS
 DURING  ANY  ONE  LICENSE  PERIOD,  IN ACCORDANCE WITH THE PROVISIONS OF
 SUBDIVISION EIGHT OF SECTION FIFTEEN HUNDRED FIFTY-FOUR OF THIS ARTICLE,
 AS THE CASE MAY BE.
   (B) FOR PURPOSES OF THE GAME OF CHANCE KNOWN AS A MERCHANDISE WHEEL OR
 A RAFFLE, "ONE OCCASION" SHALL MEAN THE SUCCESSIVE OPERATIONS OF ANY ONE
 SUCH MERCHANDISE WHEEL OR RAFFLE FOR WHICH THE  LIMIT  ON  A  SERIES  OF
 PRIZES PROVIDED BY SUBDIVISION SIX OF SECTION FIFTEEN HUNDRED FIFTY-FOUR
 OF THIS ARTICLE SHALL APPLY.
   (C) FOR PURPOSES OF THE GAME OF CHANCE KNOWN AS A BELL JAR, "ONE OCCA-
 SION" SHALL MEAN THE SUCCESSIVE OPERATION OF ANY ONE SUCH BELL JAR, SEAL
 CARD,  EVENT  GAME, COIN BOARD, OR MERCHANDISE BOARD THAT RESULTS IN THE
 AWARDING OF A SERIES OF PRIZES AMOUNTING TO SIX THOUSAND DOLLARS.
   (D) FOR THE PURPOSES OF THE GAME OF CHANCE KNOWN AS RAFFLE "ONE  OCCA-
 SION"  SHALL  MEAN A CALENDAR YEAR DURING WHICH SUCCESSIVE OPERATIONS OF
 SUCH GAME ARE CONDUCTED.
   25. "OPERATION" SHALL MEAN, IN REGARD TO A GAME OF CHANCE, THE PLAY OF
 A SINGLE TYPE OF GAME OF CHANCE NECESSARY TO DETERMINE  THE  OUTCOME  OR
 WINNERS  EACH TIME WAGERS ARE MADE. A SINGLE DRAWING OF A WINNING TICKET
 OR OTHER RECEIPT IN A RAFFLE SHALL BE DEEMED ONE OPERATION.
   26. "PREMISES" SHALL MEAN, IN REGARD TO GAMES OF CHANCE, A  DESIGNATED
 AREA  WITHIN A BUILDING, HALL, TENT OR GROUNDS REASONABLY IDENTIFIED FOR
 THE CONDUCT OF GAMES OF CHANCE. NOTHING HEREIN SHALL REQUIRE  SUCH  AREA
 TO BE ENCLOSED.
   27.  "PRIZE,"  WHERE  SUPERCARD  IS PLAYED AS SET FORTH IN SUBDIVISION
 THIRTY-THREE OF THIS SECTION, SHALL MEAN THE  SUM  OF  MONEY  OR  ACTUAL
 VALUE  OF  MERCHANDISE  AWARDED  TO THE WINNER OR WINNERS ON A GAME CARD
 DURING A GAME OF BINGO AND THE SUM OF MONEY OR ACTUAL VALUE OF  MERCHAN-
 DISE  AWARDED  TO  THE WINNER OR WINNERS ON A SUPERCARD IN EXCESS OF THE
 TOTAL RECEIPTS DERIVED FROM THE SALE OF  SUPERCARDS  FOR  THAT  SPECIFIC
 GAME.
   28.  "RAFFLE"  SHALL MEAN AND INCLUDE THOSE GAMES OF CHANCE IN WHICH A
 PARTICIPANT PAYS MONEY IN RETURN FOR A TICKET OR OTHER  RECEIPT  AND  IN
 WHICH  A  PRIZE  IS AWARDED ON THE BASIS OF A WINNING NUMBER OR NUMBERS,
 COLOR OR COLORS, OR SYMBOL  OR  SYMBOLS  DESIGNATED  ON  THE  TICKET  OR
 RECEIPT, DETERMINED BY CHANCE AS A RESULT OF:
   (A) A DRAWING FROM AMONG THOSE TICKETS OR RECEIPTS PREVIOUSLY SOLD; OR
   (B)  A  RANDOM  EVENT, THE RESULTS OF WHICH CORRESPOND WITH TICKETS OR
 RECEIPTS PREVIOUSLY SOLD.
   29. "SEAL CARDS" SHALL MEAN A BOARD OR  PLACARD  USED  IN  CONJUNCTION
 WITH  A  DEAL  OF  THE  SAME  SERIAL  NUMBER  THAT  CONTAINS ONE OR MORE
 CONCEALED AREAS THAT, WHEN REMOVED OR  OPENED,  REVEAL  A  PREDESIGNATED
 WINNING NUMBER, LETTER OR SYMBOL LOCATED ON THE BOARD OR PLACARD. A SEAL
 CARD  USED  IN  CONJUNCTION  WITH AN EVENT GAME SHALL NOT BE REQUIRED TO
 CONTAIN LINES FOR PROSPECTIVE SEAL WINNERS TO SIGN THEIR NAME.
   30. "SERIES OF PRIZES" SHALL MEAN THE TOTAL AMOUNT  OF  SINGLE  PRIZES
 MINUS  THE  TOTAL AMOUNT OF WAGERS LOST DURING THE SUCCESSIVE OPERATIONS
 OF A SINGLE TYPE OF GAME OF CHANCE, EXCEPT THAT FOR  MERCHANDISE  WHEELS
 AND  RAFFLES, "SERIES OF PRIZES" SHALL MEAN THE SUM OF CASH AND THE FAIR
 MARKET VALUE OF MERCHANDISE AWARDED AS SINGLE PRIZES DURING THE  SUCCES-
 SIVE  OPERATIONS  OF ANY SINGLE MERCHANDISE WHEEL OR RAFFLE. IN THE GAME

 S. 2009                            111                           A. 3009
 
 OF RAFFLE, A SERIES OF PRIZES MAY INCLUDE A PERCENTAGE  OF  THE  SUM  OF
 CASH RECEIVED FROM THE SALE OF RAFFLE TICKETS.
   31. "SINGLE PRIZE" SHALL MEAN THE SUM OF MONEY OR FAIR MARKET VALUE OF
 MERCHANDISE  OR  COINS  AWARDED  TO  A  PARTICIPANT BY A GAMES OF CHANCE
 LICENSEE IN ANY ONE OPERATION OF A SINGLE TYPE  OF  GAME  OF  CHANCE  IN
 EXCESS OF HIS OR HER WAGER.
   32.  "SINGLE  TYPE  OF  GAME"  SHALL MEAN THE GAMES OF CHANCE KNOWN AS
 MERCHANDISE  WHEELS,  COIN  BOARDS,  MERCHANDISE  BOARDS,  EVENT  GAMES,
 RAFFLES  AND BELL JARS AND EACH OTHER SPECIFIC GAME OF CHANCE AUTHORIZED
 BY THE COMMISSION.
   33. "SUPERCARD" SHALL MEAN A BINGO CARD ON WHICH PRIZES  ARE  AWARDED,
 WHICH  CARD  IS  SELECTED  BY  THE  PLAYER,  CONTAINING  FIVE DESIGNATED
 NUMBERS, COLORS OR SYMBOLS, CORRESPONDING TO THE LETTERS B, I, N, G,  O,
 DISPLAYED  ON  THE BINGO BOARD OF THE BINGO PREMISES OPERATOR, WHICH CAN
 BE PLAYED CONCURRENTLY WITH THE OTHER BINGO CARDS PLAYED DURING THE GAME
 OF BINGO.
   § 1501. FORMS. THE COMMISSION SHALL, TO THE GREATEST EXTENT  PRACTICA-
 BLE,  MAKE  FORMS  AND  APPLICATIONS REQUIRED BY THIS ARTICLE OR RELATED
 RULES AND REGULATIONS OF THE COMMISSION AVAILABLE IN ELECTRONIC  FORMATS
 THAT  MINIMIZE  PAPERWORK  AND  ARE  DESIGNED TO MAXIMIZE EFFICIENCY FOR
 AUTHORIZED ORGANIZATIONS, MUNICIPALITIES AND THE COMMISSION.
   § 1502. PARTICIPATION BY PERSONS UNDER THE AGE OF  EIGHTEEN.  1.    NO
 PERSON  UNDER  THE  AGE OF EIGHTEEN YEARS SHALL BE PERMITTED TO PLAY ANY
 GAME OF BINGO OR ANY GAME OF CHANCE CONDUCTED PURSUANT TO THIS ARTICLE.
   2. NO PERSON UNDER THE AGE OF EIGHTEEN YEARS  SHALL  BE  PERMITTED  TO
 CONDUCT,  OPERATE  OR ASSIST IN THE CONDUCT OF ANY GAME OF BINGO OR GAME
 OF CHANCE CONDUCTED PURSUANT TO THIS ARTICLE.
   3. PERSONS UNDER THE AGE OF EIGHTEEN YEARS MAY BE PERMITTED TO  ATTEND
 GAMES OF CHANCE AT THE DISCRETION OF THE GAMES OF CHANCE LICENSEE.
   §  1503.  SUNDAYS.  A  MUNICIPALITY  MAY RESTRICT A LICENSE TO CONDUCT
 BINGO OR GAMES OF CHANCE BY PROVIDING THAT NO BINGO OR GAMES  OF  CHANCE
 SHALL  BE  CONDUCTED  ON  THE  FIRST  DAY OF THE WEEK, COMMONLY KNOWN AS
 SUNDAY, IF THE PROVISIONS OF A LOCAL LAW OR AN ORDINANCE DULY ADOPTED BY
 THE GOVERNING BODY OF THE MUNICIPALITY ISSUING THE LICENSE PROHIBITS THE
 CONDUCT OF BINGO OR GAMES OF CHANCE PURSUANT TO THIS TITLE ON SUCH DAYS.
   § 1504. ADVERTISING OF CHARITABLE GAMES. A LICENSEE MAY ADVERTISE  THE
 CONDUCT  OF AN OCCASION OF BINGO OR GAMES OF CHANCE EVENT TO THE GENERAL
 PUBLIC BY MEANS OF NEWSPAPER, RADIO, CIRCULAR, HANDBILL AND  POSTER,  BY
 ONE SIGN NOT EXCEEDING SIXTY SQUARE FEET IN AREA, WHICH MAY BE DISPLAYED
 ON  OR  ADJACENT TO THE PREMISES OWNED OR OCCUPIED BY A LICENSED AUTHOR-
 IZED ORGANIZATION, BY OTHER SIGNS AS MAY BE PERMITTED BY THE  RULES  AND
 REGULATIONS OF THE COMMISSION AND THROUGH THE INTERNET AS MAY BE PERMIT-
 TED BY THE RULES AND REGULATIONS OF THE COMMISSION. WHEN AN ORGANIZATION
 IS  LICENSED OR AUTHORIZED TO CONDUCT BINGO OCCASIONS OR GAMES OF CHANCE
 EVENTS ON THE PREMISES OF ANOTHER LICENSED AUTHORIZED ORGANIZATION OR OF
 AN AUTHORIZED BINGO LESSOR OR AUTHORIZED GAMES  OF  CHANCE  LESSOR,  ONE
 ADDITIONAL  SUCH SIGN MAY BE DISPLAYED ON OR ADJACENT TO THE PREMISES IN
 WHICH THE OCCASIONS  ARE  TO  BE  CONDUCTED.  ADDITIONAL  SIGNS  MAY  BE
 DISPLAYED  UPON  ANY  FIREFIGHTING  EQUIPMENT  BELONGING TO ANY LICENSED
 AUTHORIZED ORGANIZATION THAT IS A VOLUNTEER FIRE COMPANY,  OR  UPON  ANY
 EQUIPMENT OF A FIRST AID OR RESCUE SQUAD IN AND THROUGHOUT THE COMMUNITY
 SERVED BY SUCH VOLUNTEER FIRE COMPANY OR SUCH FIRST AID OR RESCUE SQUAD,
 AS THE CASE MAY BE. ALL ADVERTISEMENTS SHALL BE LIMITED TO:
   (A)  THE  DESCRIPTION  OF  SUCH EVENT AS "BINGO," "GAMES OF CHANCE" OR
 "CASINO NIGHT," AS THE CASE MAY BE;

 S. 2009                            112                           A. 3009
 
   (B) THE NAME OF THE  AUTHORIZED  ORGANIZATION  CONDUCTING  SUCH  BINGO
 OCCASIONS OR GAMES OF CHANCE;
   (C)  THE  LICENSE NUMBER OF THE AUTHORIZED ORGANIZATION AS ASSIGNED BY
 THE CLERK OR DEPARTMENT;
   (D) THE PRIZES OFFERED; AND
   (E) THE DATE, LOCATION AND TIME OF THE  BINGO  OCCASION  OR  GAMES  OF
 CHANCE EVENT.
   §  1505. SANCTIONS FOR VIOLATIONS. THE COMMISSION SHALL HAVE THE POWER
 TO ISSUE LETTERS OF REPRIMAND OR IMPOSE FINES IN ANY AMOUNT  UP  TO  THE
 MAXIMUM  AUTHORIZED  BY  SECTION ONE HUNDRED SIXTEEN OF THIS CHAPTER FOR
 ANY VIOLATION OF THIS ARTICLE  OR  THE  RULES  AND  REGULATIONS  OF  THE
 COMMISSION. A PERSON OR ENTITY THAT HAS BEEN FINED MAY REQUEST A DE NOVO
 HEARING  BEFORE THE COMMISSION TO REVIEW AND DETERMINE SUCH FINE, PURSU-
 ANT TO THE RULES AND REGULATIONS OF THE COMMISSION.
   § 1506. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE OR THE APPLICA-
 TION THEREOF TO ANY  MUNICIPALITY,  PERSON  OR  CIRCUMSTANCES  SHALL  BE
 ADJUDGED  UNCONSTITUTIONAL  BY  ANY COURT OF COMPETENT JURISDICTION, THE
 REMAINDER OF THIS ARTICLE OR THE APPLICATION THEREOF  TO  OTHER  MUNICI-
 PALITIES,  PERSONS  AND CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY, AND
 THE LEGISLATURE HEREBY DECLARES THAT IT WOULD HAVE  ENACTED  THIS  TITLE
 WITHOUT  THE  INVALID  PROVISION OR APPLICATION, AS THE CASE MAY BE, HAD
 SUCH INVALIDITY BEEN APPARENT.
                                  TITLE 2
                               BINGO CONTROL
 SECTION 1510. SHORT TITLE.
         1511. PURPOSE OF TITLE.
         1512. OTHER AGENCY ASSISTANCE.
         1513. POWERS AND DUTIES OF THE COMMISSION.
         1514. HEARINGS; IMMUNITY.
         1515. PLACE OF INVESTIGATIONS AND HEARINGS; WITNESSES; BOOKS AND
                 DOCUMENTS.
         1516. PRIVILEGE AGAINST SELF-INCRIMINATION.
         1517. FILING AND AVAILABILITY OF RULES AND REGULATIONS.
         1518. MUNICIPALITY TO FILE COPIES OF LOCAL LAWS AND  ORDINANCES;
                 REPORTS.
   § 1510. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
 BINGO CONTROL LAW.
   §  1511.  PURPOSE  OF TITLE. THE PURPOSE OF THIS TITLE IS TO IMPLEMENT
 SECTION NINE OF ARTICLE ONE OF THE STATE  CONSTITUTION,  AS  AMENDED  BY
 VOTE OF THE PEOPLE AT THE GENERAL ELECTION IN NOVEMBER, NINETEEN HUNDRED
 FIFTY-SEVEN.  THE  LEGISLATURE HEREBY DECLARES THAT THE RAISING OF FUNDS
 FOR THE PROMOTION OF  BONA  FIDE  CHARITABLE,  EDUCATIONAL,  SCIENTIFIC,
 HEALTH,  RELIGIOUS,  CIVIC  AND PATRIOTIC CAUSES AND UNDERTAKINGS, WHERE
 THE BENEFICIARIES ARE INDEFINITE, IS IN THE PUBLIC INTEREST.  IT  HEREBY
 FINDS THAT, AS CONDUCTED PRIOR TO THE ENACTMENT OF THIS TITLE, BINGO WAS
 THE  SUBJECT  OF  EXPLOITATION  BY  PROFESSIONAL GAMBLERS, PROMOTERS AND
 COMMERCIAL INTERESTS. IT IS HEREBY DECLARED TO  BE  THE  POLICY  OF  THE
 LEGISLATURE  THAT ALL PHASES OF THE SUPERVISION, LICENSING AND THE REGU-
 LATION OF BINGO AND OF THE CONDUCT OF BINGO GAMES, SHOULD BE  CONTROLLED
 CLOSELY  AND  THAT THE LAWS AND REGULATIONS PERTAINING THERETO SHOULD BE
 CONSTRUED STRICTLY AND ENFORCED RIGIDLY; THAT THE CONDUCT OF  BINGO  AND
 ALL ATTENDANT ACTIVITIES SHOULD BE SO REGULATED AND ADEQUATE CONTROLS SO
 INSTITUTED  AS TO DISCOURAGE COMMERCIALIZATION IN ALL ITS FORMS, INCLUD-
 ING THE RENTAL OF COMMERCIAL PREMISES FOR BINGO GAMES, AND TO  ENSURE  A
 MAXIMUM AVAILABILITY OF THE NET PROCEEDS OF BINGO EXCLUSIVELY FOR APPLI-
 CATION  TO THE WORTHY CAUSES AND UNDERTAKINGS SPECIFIED HEREIN; THAT THE

 S. 2009                            113                           A. 3009

 ONLY JUSTIFICATION FOR THIS TITLE IS TO FOSTER AND SUPPORT  SUCH  WORTHY
 CAUSES AND UNDERTAKINGS, AND THAT THE MANDATE OF SECTION NINE OF ARTICLE
 ONE  OF  THE  STATE  CONSTITUTION,  AS AMENDED, SHOULD BE CARRIED OUT BY
 RIGID  REGULATION  TO  PREVENT  COMMERCIALIZED GAMBLING, PREVENT PARTIC-
 IPATION BY CRIMINAL AND  OTHER  UNDESIRABLE  ELEMENTS  AND  PREVENT  THE
 DIVERSION OF FUNDS FROM THE PURPOSES HEREIN AUTHORIZED.
   §  1512.  OTHER  AGENCY ASSISTANCE. TO EFFECTUATE THE PURPOSES OF THIS
 TITLE, THE GOVERNOR  MAY  AUTHORIZE  ANY  DEPARTMENT,  DIVISION,  BOARD,
 BUREAU,  COMMISSION  OR AGENCY OF THE STATE OR IN ANY POLITICAL SUBDIVI-
 SION THEREOF TO PROVIDE SUCH FACILITIES, ASSISTANCE  AND  DATA  AS  WILL
 ENABLE  THE COMMISSION PROPERLY TO CARRY OUT ITS ACTIVITIES AND EFFECTU-
 ATE ITS PURPOSES HEREUNDER.
   § 1513. POWERS AND DUTIES OF THE COMMISSION. 1. THE  COMMISSION  SHALL
 HAVE THE POWER AND IT SHALL BE ITS DUTY TO:
   (A) SUPERVISE THE ADMINISTRATION OF THE BINGO LICENSING LAW AND ADOPT,
 AMEND AND REPEAL RULES AND REGULATIONS GOVERNING THE ISSUANCE AND AMEND-
 MENT  OF  LICENSES  THEREUNDER  AND  THE  CONDUCTING OF BINGO UNDER SUCH
 LICENSES, WHICH RULES AND REGULATIONS SHALL HAVE THE FORCE AND EFFECT OF
 LAW AND SHALL BE BINDING UPON ALL MUNICIPALITIES  ISSUING  LICENSES  AND
 UPON  LICENSEES  THEREUNDER  AND LICENSEES OF THE COMMISSION, TO THE END
 THAT SUCH LICENSES SHALL BE ISSUED TO QUALIFIED LICENSEES ONLY AND  THAT
 SAID BINGO GAMES SHALL BE FAIRLY AND PROPERLY CONDUCTED FOR THE PURPOSES
 AND  IN  THE  MANNER  IN  THE SAID BINGO LICENSING LAW PRESCRIBED AND TO
 PREVENT THE BINGO GAMES THEREBY AUTHORIZED TO BE  CONDUCTED  FROM  BEING
 CONDUCTED  FOR  COMMERCIAL PURPOSES OR PURPOSES OTHER THAN THOSE THEREIN
 AUTHORIZED, PARTICIPATED IN BY CRIMINAL OR  OTHER  UNDESIRABLE  ELEMENTS
 AND  THE  FUNDS  DERIVED  FROM  THE  BINGO GAMES BEING DIVERTED FROM THE
 PURPOSES AUTHORIZED, AND, TO PROVIDE UNIFORMITY IN THE ADMINISTRATION OF
 SAID LAW THROUGHOUT THE STATE, THE COMMISSION SHALL PRESCRIBE  FORMS  OF
 APPLICATION  FOR  LICENSES,  LICENSES, AMENDMENT OF LICENSES, REPORTS OF
 THE CONDUCT OF BINGO GAMES AND OTHER MATTERS INCIDENT  TO  THE  ADMINIS-
 TRATION OF SUCH LAW;
   (B) CONDUCT, ANYWHERE WITHIN THE STATE, INVESTIGATIONS OF THE ADMINIS-
 TRATION,  ENFORCEMENT  AND  POTENTIAL  OR ACTUAL VIOLATIONS OF THE BINGO
 LICENSING LAW AND OF THE RULES AND REGULATIONS OF THE COMMISSION;
   (C) REVIEW ALL DETERMINATIONS AND ACTIONS OF THE  MUNICIPAL  GOVERNING
 BODY IN ISSUING AN INITIAL LICENSE AND REVIEW THE ISSUANCE OF SUBSEQUENT
 LICENSES  AND,  AFTER  HEARING, REVOKE THOSE LICENSES THAT DO NOT IN ALL
 RESPECTS MEET THE REQUIREMENTS OF THIS TITLE AND  THE  RULES  AND  REGU-
 LATIONS OF THE COMMISSION;
   (D)  SUSPEND  OR REVOKE A LICENSE, AFTER HEARING, FOR ANY VIOLATION OF
 THE PROVISIONS OF THIS TITLE OR THE RULES AND REGULATIONS OF THE COMMIS-
 SION;
   (E) HEAR APPEALS FROM THE DETERMINATIONS AND ACTION OF  THE  MUNICIPAL
 GOVERNING  BODY  IN  CONNECTION WITH THE REFUSING TO ISSUE LICENSES, THE
 SUSPENSION AND REVOCATION OF LICENSES AND THE IMPOSITION OF FINES IN THE
 MANNER PRESCRIBED BY LAW AND THE ACTION AND DETERMINATION OF THE COMMIS-
 SION UPON ANY SUCH APPEAL SHALL BE BINDING UPON THE MUNICIPAL  GOVERNING
 BODY AND ALL PARTIES THERETO;
   (F)  INITIATE  PROSECUTIONS  FOR  VIOLATIONS  OF THIS TITLE AND OF THE
 BINGO LICENSING LAW;
   (G) CARRY ON CONTINUOUS STUDY OF THE OPERATION OF THE BINGO  LICENSING
 LAW  TO  ASCERTAIN  FROM  TIME  TO  TIME DEFECTS THEREIN JEOPARDIZING OR
 THREATENING TO JEOPARDIZE THE PURPOSES OF THIS TITLE  AND  TO  FORMULATE
 AND  RECOMMEND  CHANGES  IN SUCH LAW AND IN OTHER LAWS OF THE STATE THAT
 THE COMMISSION MAY DETERMINE TO BE NECESSARY FOR THE REALIZATION OF SUCH

 S. 2009                            114                           A. 3009
 
 PURPOSES, AND TO THE SAME END TO MAKE A CONTINUOUS STUDY OF  THE  OPERA-
 TION  AND  ADMINISTRATION OF SIMILAR LAWS THAT MAY BE IN EFFECT IN OTHER
 STATES OF THE UNITED STATES;
   (H) SUPERVISE THE DISPOSITION OF ALL FUNDS DERIVED FROM THE CONDUCT OF
 BINGO BY AUTHORIZED ORGANIZATIONS NOT CURRENTLY LICENSED TO CONDUCT SUCH
 BINGO GAMES; AND
   (I)  ISSUE  AN IDENTIFICATION NUMBER TO AN APPLICANT AUTHORIZED ORGAN-
 IZATION IF THE COMMISSION DETERMINES THAT THE  APPLICANT  SATISFIES  THE
 REQUIREMENTS OF THE BINGO LICENSING LAW AND THE RULES AND REGULATIONS OF
 THE COMMISSION.
   2. (A) THE COMMISSION SHALL HAVE THE POWER TO ISSUE OR, AFTER HEARING,
 REFUSE  TO  ISSUE  A LICENSE PERMITTING A PERSON, FIRM OR CORPORATION TO
 SELL OR DISTRIBUTE TO ANY OTHER PERSON, FIRM OR CORPORATION  ENGAGED  IN
 BUSINESS  AS A WHOLESALER, JOBBER, DISTRIBUTOR OR RETAILER OF ALL CARDS,
 BOARDS, SHEETS, PADS AND  ALL  OTHER  SUPPLIES,  DEVICES  AND  EQUIPMENT
 DESIGNED  FOR  USE IN THE PLAY OF BINGO BY AN ORGANIZATION DULY LICENSED
 TO CONDUCT BINGO GAMES OR TO  SELL  OR  DISTRIBUTE  ANY  SUCH  MATERIALS
 DIRECTLY  TO  SUCH AN ORGANIZATION. FOR THE PURPOSES OF THIS SECTION THE
 WORDS "SELL  OR  DISTRIBUTE"  SHALL  INCLUDE,  WITHOUT  LIMITATION,  THE
 FOLLOWING  ACTIVITIES: OFFERING FOR SALE, RECEIVING, HANDLING, MAINTAIN-
 ING, STORING THE SAME ON BEHALF OF SUCH AN ORGANIZATION, DISTRIBUTING OR
 PROVIDING THE SAME TO SUCH AN ORGANIZATION  AND  OFFERING  FOR  SALE  OR
 LEASE  BINGO DEVICES AND EQUIPMENT. EACH SUCH LICENSE SHALL BE VALID FOR
 ONE YEAR.
   (B) (1) NO PERSON, FIRM OR CORPORATION,  OTHER  THAN  AN  ORGANIZATION
 THAT  IS OR HAS BEEN DURING THE PRECEDING TWELVE MONTHS DULY LICENSED TO
 CONDUCT BINGO GAMES, SHALL SELL OR DISTRIBUTE BINGO SUPPLIES  OR  EQUIP-
 MENT  WITHOUT  HAVING  FIRST  OBTAINED  A  LICENSE THEREFOR UPON WRITTEN
 APPLICATION MADE, VERIFIED AND FILED WITH THE  COMMISSION  IN  THE  FORM
 PRESCRIBED BY THE RULES AND REGULATIONS OF THE COMMISSION.
   (2)  THE  COMMISSION,  AS  A  PART OF ITS DETERMINATION CONCERNING THE
 APPLICANT'S SUITABILITY FOR LICENSING AS A BINGO SUPPLIER, SHALL REQUIRE
 THE APPLICANT TO FURNISH TO THE COMMISSION  TWO  SETS  OF  FINGERPRINTS.
 SUCH FINGERPRINTS SHALL BE SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE
 SERVICES FOR A STATE CRIMINAL HISTORY RECORD CHECK, AS DEFINED IN SUBDI-
 VISION  ONE  OF SECTION THREE THOUSAND THIRTY-FIVE OF THE EDUCATION LAW,
 AND MAY BE SUBMITTED TO  THE  FEDERAL  BUREAU  OF  INVESTIGATION  FOR  A
 NATIONAL CRIMINAL HISTORY RECORD CHECK.
   (3) IN EACH SUCH APPLICATION FOR A LICENSE UNDER THIS SECTION SHALL BE
 STATED:
   (I) THE NAME AND ADDRESS OF THE APPLICANT;
   (II)  THE NAMES AND ADDRESSES OF ITS OFFICERS, DIRECTORS, SHAREHOLDERS
 OR PARTNERS;
   (III) THE AMOUNT OF GROSS RECEIPTS REALIZED ON THE  SALE  OR  DISTRIB-
 UTION  OF  BINGO  SUPPLIES  AND EQUIPMENT TO DULY LICENSED ORGANIZATIONS
 DURING THE LAST PRECEDING CALENDAR OR FISCAL YEAR; AND
   (IV) SUCH OTHER INFORMATION AS SHALL BE PRESCRIBED BY SUCH  RULES  AND
 REGULATIONS.
   (4)  THE  FEE FOR SUCH LICENSE SHALL BE AS PRESCRIBED BY REGULATION OF
 THE COMMISSION, WHICH SHALL TAKE INTO  ACCOUNT  THE  QUANTITY  OF  GROSS
 SALES OF THE APPLICANT.
   (C) THE FOLLOWING SHALL BE INELIGIBLE FOR SUCH A LICENSE:
   (1)  A  PERSON  CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP
 BETWEEN ONE OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE  INTEGRITY
 OF  BINGO,  CONSIDERING  THE  FACTORS SET FORTH IN SECTION SEVEN HUNDRED
 FIFTY-THREE OF THE CORRECTION LAW;

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   (2) A PERSON WHO IS OR HAS BEEN A  PROFESSIONAL  GAMBLER  OR  GAMBLING
 PROMOTER OR WHO FOR OTHER REASONS IS NOT OF GOOD MORAL CHARACTER;
   (3) A PUBLIC OFFICER OR EMPLOYEE;
   (4) AN OPERATOR OR PROPRIETOR OF A COMMERCIAL HALL DULY LICENSED UNDER
 THE BINGO LICENSING LAW; AND
   (5)  A  FIRM  OR CORPORATION IN WHICH A PERSON DEFINED IN SUBPARAGRAPH
 ONE, TWO, THREE OR FOUR OF  THIS  PARAGRAPH,  OR  A  PERSON  MARRIED  OR
 RELATED  IN  THE  FIRST  DEGREE TO SUCH A PERSON, HAS GREATER THAN A TEN
 PERCENT PROPRIETARY, EQUITABLE OR CREDIT INTEREST OR  IN  WHICH  SUCH  A
 PERSON IS ACTIVE OR EMPLOYED.
   (D) THE COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE EXAMINED
 THE  BOOKS  AND RECORDS OF ANY APPLICANT FOR A LICENSE, OR ANY LICENSEE,
 UNDER THIS SECTION. ANY INFORMATION SO RECEIVED SHALL NOT  BE  DISCLOSED
 EXCEPT  SO  FAR  AS MAY BE NECESSARY FOR THE PURPOSE OF CARRYING OUT THE
 PROVISIONS OF THIS ARTICLE.
   (E) ANY SOLICITATION OF AN  ORGANIZATION  LICENSED  TO  CONDUCT  BINGO
 GAMES,  TO  PURCHASE OR INDUCE THE PURCHASE OF BINGO SUPPLIES AND EQUIP-
 MENT, OR ANY REPRESENTATION, STATEMENT OR INQUIRY DESIGNED OR REASONABLY
 TENDING TO INFLUENCE SUCH AN ORGANIZATION TO PURCHASE  THE  SAME,  OTHER
 THAN  BY  A  PERSON  LICENSED  OR  OTHERWISE AUTHORIZED PURSUANT TO THIS
 SECTION SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
   (F) ANY PERSON WHO WILLFULLY MAKES ANY MATERIAL FALSE STATEMENT IN ANY
 APPLICATION FOR A LICENSE AUTHORIZED TO BE ISSUED UNDER  THIS  TITLE  OR
 WHO  WILLFULLY  VIOLATES ANY OF THE PROVISIONS OF THIS SECTION OR OF ANY
 LICENSE ISSUED HEREUNDER SHALL BE GUILTY OF A MISDEMEANOR AND, IN  ADDI-
 TION  TO THE PENALTIES IN SUCH CASE MADE AND PROVIDED, SHALL FORFEIT ANY
 LICENSE ISSUED TO HIM, HER OR IT UNDER THIS SECTION AND BE INELIGIBLE TO
 APPLY FOR A LICENSE UNDER THIS SECTION FOR ONE YEAR THEREAFTER.
   (G) AT THE END OF THE LICENSE PERIOD, A RECAPITULATION SHALL  BE  MADE
 AS BETWEEN THE LICENSEE AND THE COMMISSION IN RESPECT OF THE GROSS SALES
 ACTUALLY  RECORDED  DURING THE LICENSE PERIOD AND THE FEE PAID THEREFOR,
 AND ANY DEFICIENCY OF FEE THEREBY SHOWN TO BE DUE SHALL BE PAID  BY  THE
 LICENSEE  AND ANY EXCESS OF FEE THEREBY SHOWN TO HAVE BEEN PAID SHALL BE
 CREDITED TO SAID LICENSEE IN SUCH MANNER AS THE COMMISSION BY THE  RULES
 AND REGULATIONS SHALL PRESCRIBE.
   3.  THE  COMMISSION  SHALL  HAVE  THE POWER TO APPROVE AND ESTABLISH A
 STANDARD SET OF BINGO CARDS COMPRISING A CONSECUTIVELY  NUMBERED  SERIES
 AND  SHALL  BY  RULES AND REGULATIONS PRESCRIBE THE MANNER IN WHICH SUCH
 CARDS ARE TO BE REPRODUCED AND DISTRIBUTED TO LICENSED AUTHORIZED ORGAN-
 IZATIONS. THE SALE OR DISTRIBUTION TO A LICENSED AUTHORIZED ORGANIZATION
 OF ANY CARD OR CARDS OTHER THAN THOSE CONTAINED IN THE STANDARD  SET  OF
 BINGO  CARDS  SHALL  CONSTITUTE  A  VIOLATION  OF THIS SECTION. LICENSED
 AUTHORIZED ORGANIZATIONS SHALL NOT BE REQUIRED TO USE  NOR  TO  MAINTAIN
 SUCH  CARDS  SERIATIM  EXCEPTING  THAT  THE  SAME MAY BE REQUIRED IN THE
 CONDUCT OF LIMITED-PERIOD BINGO GAMES.
   § 1514. HEARINGS; IMMUNITY. 1. A HEARING  UPON  ANY  INVESTIGATION  OR
 REVIEW  AUTHORIZED  BY  THIS  ARTICLE  MAY  BE  CONDUCTED BY TWO OR MORE
 MEMBERS OF THE COMMISSION OR BY A HEARING OFFICER DULY DESIGNATED BY THE
 COMMISSION, AS THE COMMISSION SHALL DETERMINE.
   2. A PERSON WHO HAS VIOLATED ANY PROVISION OF THIS ARTICLE, OR OF  THE
 RULES  AND  REGULATIONS  OF  THE  COMMISSION, OR ANY TERM OF ANY LICENSE
 ISSUED UNDER THIS ARTICLE OR SUCH RULES AND REGULATIONS, IS A  COMPETENT
 WITNESS  AGAINST  ANOTHER  PERSON  SO  CHARGED.  IN ANY HEARING UPON ANY
 INVESTIGATION OR REVIEW AUTHORIZED BY THIS ARTICLE, FOR OR RELATING TO A
 VIOLATION OF ANY PROVISION OF SAID ARTICLE OR OF  THE  RULES  AND  REGU-
 LATIONS  OF  THE  COMMISSION  OR  OF  THE  TERM OF ANY SUCH LICENSE, THE

 S. 2009                            116                           A. 3009
 
 COMMISSION MAY CONFER IMMUNITY UPON SUCH WITNESS IN ACCORDANCE WITH  THE
 PROVISIONS OF SECTION 50.20 OF THE CRIMINAL PROCEDURE LAW.  SUCH IMMUNI-
 TY  SHALL  BE  CONFERRED ONLY UPON THE VOTE OF AT LEAST THREE MEMBERS OF
 THE  COMMISSION  AND  ONLY  AFTER AFFORDING THE ATTORNEY GENERAL AND THE
 APPROPRIATE DISTRICT ATTORNEY A REASONABLE OPPORTUNITY TO BE HEARD  WITH
 RESPECT  TO  ANY  OBJECTIONS THAT THEY OR EITHER OF THEM MAY HAVE TO THE
 GRANTING OF SUCH IMMUNITY.
   § 1515. PLACE OF INVESTIGATIONS AND  HEARINGS;  WITNESSES;  BOOKS  AND
 DOCUMENTS. THE COMMISSION MAY CONDUCT INVESTIGATIONS AND HEARINGS WITHIN
 OR  WITHOUT  THE  STATE AND SHALL HAVE POWER TO COMPEL THE ATTENDANCE OF
 WITNESSES,  THE  PRODUCTION  OF  BOOKS,  RECORDS,  DOCUMENTS  AND  OTHER
 EVIDENCE  BY THE ISSUANCE OF A SUBPOENA SIGNED BY A PERSON AUTHORIZED BY
 THE COMMISSION TO DO SO.
   § 1516. PRIVILEGE AGAINST SELF-INCRIMINATION. THE WILLFUL  REFUSAL  TO
 ANSWER  A  MATERIAL QUESTION OR THE ASSERTION OF PRIVILEGE AGAINST SELF-
 INCRIMINATION DURING A HEARING UPON ANY INVESTIGATION OR REVIEW  AUTHOR-
 IZED  BY  THIS ARTICLE BY ANY LICENSEE OR ANY PERSON IDENTIFIED WITH ANY
 LICENSEE AS AN OFFICER, DIRECTOR, STOCKHOLDER, PARTNER, MEMBER, EMPLOYEE
 OR AGENT THEREOF SHALL CONSTITUTE SUFFICIENT CAUSE FOR THE REVOCATION OR
 SUSPENSION OF ANY LICENSE ISSUED UNDER THIS TITLE OR UNDER THE LICENSING
 LAW, AS THE COMMISSION OR AS THE MUNICIPAL GOVERNING BODY MAY DETERMINE.
   § 1517. FILING AND AVAILABILITY OF RULES AND REGULATIONS.  A  COPY  OF
 EVERY  RULE  AND  REGULATION  ADOPTED  AND PROMULGATED BY THE COMMISSION
 SHALL BE MADE AVAILABLE TO THE VARIOUS  MUNICIPALITIES  OPERATING  UNDER
 THE BINGO LICENSING LAW.
   §  1518.  MUNICIPALITY  TO  FILE  COPIES OF LOCAL LAWS AND ORDINANCES;
 REPORTS.  EACH MUNICIPALITY IN WHICH THE BINGO LICENSING LAW IS  ADOPTED
 SHALL  FILE  WITH  THE  COMMISSION A COPY OF EACH LOCAL LAW OR ORDINANCE
 ENACTED PURSUANT THERETO  WITHIN  TEN  DAYS  AFTER  THE  SAME  HAS  BEEN
 APPROVED BY A MAJORITY OF THE ELECTORS VOTING ON A PROPOSITION SUBMITTED
 AT  A GENERAL OR SPECIAL ELECTION, OR WITHIN TEN DAYS AFTER THE SAME HAS
 BEEN AMENDED OR REPEALED BY THE COMMON COUNCIL OR OTHER  LOCAL  LEGISLA-
 TIVE BODY AND ON OR BEFORE FEBRUARY FIRST OF EACH YEAR, AND AT ANY OTHER
 TIME  OR  TIMES  THAT THE COMMISSION MAY DETERMINE, MAKE A REPORT TO THE
 COMMISSION OF THE NUMBER OF LICENSES  ISSUED  THEREIN  UNDER  THE  BINGO
 LICENSING  LAW,  THE NAMES AND ADDRESSES OF THE LICENSEES, THE AGGREGATE
 AMOUNT OF LICENSE FEES COLLECTED, THE NAMES AND ADDRESSES OF ALL PERSONS
 DETECTED OF VIOLATING THE BINGO LICENSING LAW, THIS TITLE OR  THE  RULES
 AND  REGULATIONS  ADOPTED  BY THE COMMISSION PURSUANT HERETO, AND OF ALL
 PERSONS PROSECUTED FOR SUCH VIOLATIONS AND THE RESULT OF EACH SUCH PROS-
 ECUTION, THE PENALTIES IMPOSED THEREIN  DURING  THE  PRECEDING  CALENDAR
 YEAR,  OR  THE PERIOD FOR WHICH THE REPORT IS REQUIRED, WHICH REPORT MAY
 CONTAIN ANY RECOMMENDATIONS FOR IMPROVEMENT OF THE BINGO  LICENSING  LAW
 OR  THE  ADMINISTRATION  THEREOF  THAT THE GOVERNING BODY OF THE MUNICI-
 PALITY DEEMS DESIRABLE.
                                  TITLE 3
        LOCAL OPTION FOR CONDUCT OF BINGO BY CERTAIN ORGANIZATIONS
 SECTION 1520. SHORT TITLE; PURPOSE OF TITLE.
         1521. LOCAL OPTION.
         1522. LOCAL LAWS AND ORDINANCES.
         1523. RESTRICTIONS UPON CONDUCT OF BINGO GAMES.
         1524. APPLICATION FOR LICENSE.
         1525. INVESTIGATION;  MATTERS  TO  BE  DETERMINED;  ISSUANCE  OF
                 LICENSE; FEES; DURATION OF LICENSE.
         1526. HEARING; AMENDMENT OF LICENSE.
         1527. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE.

 S. 2009                            117                           A. 3009
 
         1528. CONTROL   AND   SUPERVISION;   SUSPENSION   OF   LICENSES;
                 INSPECTION OF PREMISES.
         1529. FREQUENCY OF GAME; SALE OF ALCOHOLIC BEVERAGES.
         1530. PERSONS  OPERATING  AND CONDUCTING BINGO GAMES; EQUIPMENT;
                 EXPENSES; COMPENSATION.
         1531. CHARGE FOR ADMISSION AND PARTICIPATION; AMOUNT OF  PRIZES;
                 AWARD OF PRIZES.
         1532. STATEMENT OF RECEIPTS, EXPENSES; ADDITIONAL LICENSE FEES.
         1533. EXAMINATION OF BOOKS AND RECORDS; EXAMINATION OF MANAGERS,
                 ETC.; DISCLOSURE OF INFORMATION.
         1534. APPEALS FROM MUNICIPAL GOVERNING BODY TO COMMISSION.
         1535. EXEMPTION FROM PROSECUTION.
         1536. OFFENSES;  FORFEITURE  OF  LICENSE; INELIGIBILITY TO APPLY
                 FOR LICENSE.
         1537. UNLAWFUL BINGO.
         1538. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS.
         1539. AMENDMENT AND REPEAL OF LOCAL LAWS AND ORDINANCES.
         1540. DELEGATION OF AUTHORITY.
         1541. POWERS AND DUTIES OF MAYORS OR MANAGERS OF CERTAIN CITIES.
   § 1520. SHORT TITLE; PURPOSE OF TITLE. THIS TITLE SHALL BE  KNOWN  AND
 MAY BE CITED AS THE BINGO LICENSING LAW. THE LEGISLATURE HEREBY DECLARES
 THAT  THE  RAISING  OF  FUNDS FOR THE PROMOTION OF BONA FIDE CHARITABLE,
 EDUCATIONAL, SCIENTIFIC, HEALTH, RELIGIOUS, CIVIC AND  PATRIOTIC  CAUSES
 AND  UNDERTAKINGS,  WHERE  THE  BENEFICIARIES  ARE INDEFINITE, IS IN THE
 PUBLIC INTEREST. IT HEREBY FINDS THAT, AS CONDUCTED PRIOR TO THE  EFFEC-
 TIVE  DATE  OF  THIS  TITLE,  BINGO  WAS  THE SUBJECT OF EXPLOITATION BY
 PROFESSIONAL GAMBLERS, PROMOTERS, AND COMMERCIAL INTERESTS. IT IS HEREBY
 DECLARED TO BE THE POLICY OF THE LEGISLATURE  THAT  ALL  PHASES  OF  THE
 SUPERVISION,  LICENSING  AND  REGULATION  OF BINGO AND OF THE CONDUCT OF
 BINGO GAMES, SHOULD BE CLOSELY CONTROLLED AND THAT THE  LAWS  AND  REGU-
 LATIONS  PERTAINING  THERETO  SHOULD  BE  STRICTLY CONSTRUED AND RIGIDLY
 ENFORCED; THAT THE CONDUCT OF THE BINGO GAME AND  ALL  ATTENDANT  ACTIV-
 ITIES  SHOULD  BE SO REGULATED AND ADEQUATE CONTROLS SO INSTITUTED AS TO
 DISCOURAGE COMMERCIALIZATION IN ALL ITS FORMS, INCLUDING THE  RENTAL  OF
 COMMERCIAL PREMISES FOR BINGO GAMES, AND TO ENSURE A MAXIMUM AVAILABILI-
 TY  OF  THE  NET  PROCEEDS  OF  BINGO EXCLUSIVELY FOR APPLICATION TO THE
 WORTHY CAUSES AND UNDERTAKINGS SPECIFIED HEREIN; THAT  THE  ONLY  JUSTI-
 FICATION  FOR THIS TITLE IS TO FOSTER AND SUPPORT SUCH WORTHY CAUSES AND
 UNDERTAKINGS, AND THAT THE MANDATE OF SECTION NINE OF ARTICLE ONE OF THE
 STATE CONSTITUTION, AS AMENDED, SHOULD BE CARRIED  OUT  BY  RIGID  REGU-
 LATION  TO  PREVENT  COMMERCIALIZED  GAMBLING,  PREVENT PARTICIPATION BY
 CRIMINAL AND OTHER UNDESIRABLE ELEMENTS AND  PREVENT  THE  DIVERSION  OF
 FUNDS FROM THE PURPOSES HEREIN AUTHORIZED.
   §  1521.  LOCAL  OPTION.  SUBJECT TO THE PROVISIONS OF THIS TITLE, AND
 PURSUANT TO THE DIRECTION CONTAINED IN SUBDIVISION TWO OF  SECTION  NINE
 OF  ARTICLE ONE OF THE CONSTITUTION OF THE STATE, THE LEGISLATURE HEREBY
 GIVES AND GRANTS TO EVERY MUNICIPALITY THE RIGHT, POWER AND AUTHORITY TO
 AUTHORIZE THE CONDUCT OF BINGO GAMES BY AUTHORIZED ORGANIZATIONS  WITHIN
 THE  TERRITORIAL  LIMITS  OF  SUCH  MUNICIPALITY PROVIDED, HOWEVER, THAT
 WHERE THE ELECTORS OF A VILLAGE HEREAFTER APPROVE A LOCAL LAW  OR  ORDI-
 NANCE  PURSUANT  TO  SECTION FIFTEEN HUNDRED TWENTY-THREE OF THIS TITLE,
 THE RIGHT, POWER AND AUTHORITY UNDER THIS TITLE OF  ANY  TOWN  IN  WHICH
 SUCH  VILLAGE  IS  LOCATED  SHALL NOT EXTEND TO SUCH VILLAGE DURING SUCH
 TIME AS SUCH VILLAGE LOCAL LAW OR ORDINANCE IS IN EFFECT.
   § 1522. LOCAL LAWS AND ORDINANCES. 1.  THE  COMMON  COUNCIL  OR  OTHER
 LOCAL  LEGISLATIVE  BODY OF ANY MUNICIPALITY MAY, EITHER BY LOCAL LAW OR

 S. 2009                            118                           A. 3009
 
 ORDINANCE, PROVIDE THAT IT SHALL BE LAWFUL FOR ANY AUTHORIZED  ORGANIZA-
 TION,  UPON  OBTAINING  A LICENSE THEREFOR AS PROVIDED IN THIS TITLE, TO
 CONDUCT THE GAME OF BINGO WITHIN THE TERRITORIAL LIMITS OF SUCH  MUNICI-
 PALITY,  SUBJECT  TO  THE PROVISIONS OF SUCH LOCAL LAW OR ORDINANCE, THE
 PROVISIONS OF THIS TITLE AND THE PROVISIONS OF THE BINGO CONTROL LAW.
   2. NO SUCH LOCAL LAW OR ORDINANCE SHALL BECOME OPERATIVE OR  EFFECTIVE
 UNLESS  AND  UNTIL  IT  HAS  BEEN APPROVED BY A MAJORITY OF THE ELECTORS
 VOTING ON A PROPOSITION SUBMITTED AT A GENERAL OR SPECIAL ELECTION  HELD
 WITHIN  SUCH MUNICIPALITY WHO ARE QUALIFIED TO VOTE FOR OFFICERS OF SUCH
 MUNICIPALITY.
   3.  THE  TIME,  METHOD  AND  MANNER  OF  SUBMISSION,  PREPARATION  AND
 PROVISION  OF BALLOTS AND BALLOT LABELS, BALLOTING BY VOTING MACHINE AND
 CONDUCTING THE ELECTION, CANVASSING THE RESULT AND MAKING AND FILING THE
 RETURNS AND ALL OTHER PROCEDURE WITH REFERENCE TO THE SUBMISSION OF  AND
 ACTION  UPON  ANY  PROPOSITION FOR THE APPROVAL OF ANY SUCH LOCAL LAW OR
 ORDINANCE SHALL BE THE SAME AS IN THE CASE OF ANY OTHER  PROPOSITION  TO
 BE  SUBMITTED  TO  THE  ELECTORS  OF  SUCH  MUNICIPALITY AT A GENERAL OR
 SPECIAL ELECTION IN SUCH MUNICIPALITY, AS PROVIDED BY LAW.
   § 1523. RESTRICTIONS UPON CONDUCT OF BINGO GAMES. THE CONDUCT OF BINGO
 GAMES AUTHORIZED BY LOCAL LAW OR  ORDINANCE  SHALL  BE  SUBJECT  TO  THE
 FOLLOWING  RESTRICTIONS  WITHOUT REGARD TO WHETHER SUCH RESTRICTIONS ARE
 CONTAINED IN SUCH LOCAL LAW OR ORDINANCE, BUT NOTHING  IN  THIS  SECTION
 SHALL  BE  CONSTRUED  TO  PREVENT THE INCLUSION WITHIN SUCH LOCAL LAW OR
 ORDINANCE OF OTHER PROVISIONS IMPOSING ADDITIONAL RESTRICTIONS UPON  THE
 CONDUCT OF BINGO GAMES:
   1.  NO  PERSON,  FIRM, ASSOCIATION, CORPORATION OR ORGANIZATION, OTHER
 THAN A LICENSEE UNDER THE PROVISIONS OF THIS TITLE, SHALL
   (A) CONDUCT BINGO; OR
   (B) LEASE OR OTHERWISE MAKE AVAILABLE FOR CONDUCTING BINGO A  HALL  OR
 OTHER  PREMISES  FOR  ANY  CONSIDERATION WHATSOEVER, DIRECT OR INDIRECT,
 WITHOUT OBTAINING THE PRIOR WRITTEN APPROVAL OF THE COMMISSION.
   2. NO BINGO GAMES SHALL BE HELD, OPERATED OR CONDUCTED  ON  OR  WITHIN
 ANY  LEASED PREMISES IF RENTAL UNDER SUCH LEASE IS TO BE PAID, WHOLLY OR
 PARTLY, ON THE BASIS OF A PERCENTAGE OF  THE  RECEIPTS  OR  NET  PROFITS
 DERIVED FROM THE OPERATION OF SUCH GAME.
   3.  NO  AUTHORIZED  ORGANIZATION LICENSED UNDER THE PROVISIONS OF THIS
 TITLE SHALL PURCHASE, LEASE OR RECEIVE ANY SUPPLIES OR EQUIPMENT SPECIF-
 ICALLY DESIGNED OR ADAPTED FOR USE IN THE CONDUCT OF  BINGO  GAMES  FROM
 OTHER  THAN  A  SUPPLIER  LICENSED  UNDER  THE BINGO CONTROL LAW OR FROM
 ANOTHER AUTHORIZED ORGANIZATION.
   4. THE ENTIRE NET PROCEEDS OF ANY GAME OF  BINGO  AND  OF  ANY  RENTAL
 SHALL  BE DEVOTED EXCLUSIVELY TO THE LAWFUL PURPOSES OF THE ORGANIZATION
 PERMITTED TO CONDUCT THE SAME.
   5. NO PRIZE SHALL EXCEED THE SUM OR VALUE OF FIVE THOUSAND DOLLARS  IN
 ANY SINGLE GAME OF BINGO.
   6.  NO SERIES OF PRIZES ON ANY ONE BINGO OCCASION SHALL AGGREGATE MORE
 THAN FIFTEEN THOUSAND DOLLARS.
   7. NO PERSON EXCEPT A BONA FIDE MEMBER OF ANY SUCH ORGANIZATION  SHALL
 PARTICIPATE IN THE MANAGEMENT OR OPERATION OF SUCH BINGO GAME.
   8.  NO  PERSON SHALL RECEIVE ANY REMUNERATION FOR PARTICIPATING IN THE
 MANAGEMENT OR OPERATION OF ANY GAME OF BINGO.
   9. THE UNAUTHORIZED CONDUCT OF A BINGO GAME AND ANY WILLFUL  VIOLATION
 OF  ANY  PROVISION OF ANY LOCAL LAW OR ORDINANCE SHALL CONSTITUTE AND BE
 PUNISHABLE AS A MISDEMEANOR.
   10. NO PERSON LICENSED TO SELL BINGO SUPPLIES  OR  EQUIPMENT,  OR  ANY
 AGENT  OF  SUCH  PERSON,  SHALL CONDUCT, PARTICIPATE IN OR ASSIST IN THE

 S. 2009                            119                           A. 3009
 
 CONDUCT OF BINGO.  NOTHING HEREIN SHALL PROHIBIT A LICENSED  DISTRIBUTOR
 FROM SELLING, OFFERING FOR SALE OR EXPLAINING A PRODUCT TO AN AUTHORIZED
 ORGANIZATION  OR  INSTALLING OR SERVICING BINGO EQUIPMENT UPON THE PREM-
 ISES OF A BINGO GAME LICENSEE.
   11.  LIMITED-PERIOD  BINGO  SHALL  BE CONDUCTED IN ACCORDANCE WITH THE
 PROVISIONS OF THIS TITLE AND THE RULES AND REGULATIONS  OF  THE  COMMIS-
 SION.
   §  1524. APPLICATION FOR LICENSE. 1. TO CONDUCT BINGO. (A) EACH APPLI-
 CANT FOR A LICENSE TO CONDUCT BINGO SHALL, AFTER OBTAINING AN  IDENTIFI-
 CATION  NUMBER  FROM  THE COMMISSION, FILE WITH THE CLERK OF THE MUNICI-
 PALITY AN APPLICATION THEREFOR IN THE FORM PRESCRIBED IN THE  RULES  AND
 REGULATIONS OF THE COMMISSION, DULY EXECUTED AND VERIFIED, IN WHICH SUCH
 APPLICANT SHALL STATE:
   (1)  THE  NAME  AND  ADDRESS OF THE APPLICANT TOGETHER WITH SUFFICIENT
 FACTS RELATING TO SUCH APPLICANT'S  INCORPORATION  AND  ORGANIZATION  TO
 ENABLE  THE  GOVERNING  BODY OF THE MUNICIPALITY TO DETERMINE WHETHER OR
 NOT THE APPLICANT IS A BONA FIDE AUTHORIZED ORGANIZATION;
   (2) THE NAMES AND ADDRESSES OF THE APPLICANT'S OFFICERS;
   (3) THE PLACE OR PLACES WHERE, AND THE DATE OR DATES AND THE  TIME  OR
 TIMES  WHEN,  THE  APPLICANT  INTENDS TO CONDUCT BINGO UNDER THE LICENSE
 APPLIED FOR;
   (4) IN CASE THE APPLICANT INTENDS TO LEASE PREMISES FOR  THIS  PURPOSE
 FROM  OTHER THAN AN AUTHORIZED ORGANIZATION, THE NAME AND ADDRESS OF THE
 LICENSED BINGO LESSOR OF SUCH PREMISES, AND THE  CAPACITY  OR  POTENTIAL
 CAPACITY FOR PUBLIC ASSEMBLY PURPOSES OF SPACE IN ANY PREMISES PRESENTLY
 OWNED OR OCCUPIED BY THE APPLICANT;
   (5)  THE  AMOUNT OF RENT TO BE PAID OR OTHER CONSIDERATION TO BE GIVEN
 DIRECTLY OR INDIRECTLY FOR EACH OCCASION FOR  USE  OF  THE  PREMISES  OF
 ANOTHER  AUTHORIZED  ORGANIZATION  LICENSED  UNDER THIS TITLE TO CONDUCT
 BINGO OR FOR USE OF THE PREMISES OF A LICENSED BINGO LESSOR;
   (6) ALL OTHER ITEMS OF EXPENSE INTENDED TO  BE  INCURRED  OR  PAID  IN
 CONNECTION  WITH  THE HOLDING, OPERATING AND CONDUCTING OF SUCH GAMES OF
 BINGO AND THE NAMES AND ADDRESSES OF THE PERSONS  TO  BE  PAID  AND  THE
 PURPOSES FOR WHICH SUCH PERSONS ARE TO BE PAID;
   (7)  THE  SPECIFIC  PURPOSES  TO WHICH THE ENTIRE NET PROCEEDS OF SUCH
 GAMES OF BINGO ARE TO BE DEVOTED AND IN WHAT MANNER;
   (8) THAT NO COMMISSION, SALARY,  COMPENSATION,  REWARD  OR  RECOMPENSE
 WILL  BE  PAID  TO ANY PERSON FOR CONDUCTING SUCH BINGO GAME OR GAMES OR
 FOR ASSISTING THEREIN EXCEPT AS IN THIS TITLE OTHERWISE PROVIDED; AND
   (9) SUCH OTHER INFORMATION AS SHALL BE PRESCRIBED  BY  THE  RULES  AND
 REGULATIONS OF THE COMMISSION.
   (B)  IN EACH APPLICATION THERE SHALL BE DESIGNATED AN ACTIVE MEMBER OR
 MEMBERS OF THE APPLICANT ORGANIZATION UNDER WHOM THE GAME  OR  GAMES  OF
 BINGO  WILL  BE  CONDUCTED  AND  TO  THE APPLICATION SHALL BE APPENDED A
 STATEMENT EXECUTED BY THE MEMBER OR MEMBERS SO DESIGNATED, THAT HE,  SHE
 OR  THEY  WILL  BE  RESPONSIBLE  FOR  THE CONDUCT OF SUCH BINGO GAMES IN
 ACCORDANCE WITH THE TERMS OF THE LICENSE AND THE RULES  AND  REGULATIONS
 OF THE COMMISSION AND OF THIS TITLE.
   2. BINGO LESSOR. (A) EACH APPLICANT FOR A LICENSE TO LEASE PREMISES TO
 A  LICENSED  ORGANIZATION  FOR  THE PURPOSES OF CONDUCTING BINGO THEREIN
 SHALL FILE WITH THE CLERK OF THE MUNICIPALITY AN APPLICATION THEREFOR IN
 A FORM PRESCRIBED IN THE RULES AND REGULATIONS OF  THE  COMMISSION  DULY
 EXECUTED AND VERIFIED, WHICH SHALL SET FORTH:
   (1) THE NAME AND ADDRESS OF THE APPLICANT;
   (2)  DESIGNATION AND ADDRESS OF THE PREMISES INTENDED TO BE COVERED BY
 THE LICENSE SOUGHT;

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   (3) LAWFUL CAPACITY FOR PUBLIC ASSEMBLY PURPOSES;
   (4)  COST  OF  PREMISES  AND  ASSESSED  VALUATION  FOR REAL ESTATE TAX
 PURPOSES, OR ANNUAL NET LEASE RENT, WHICHEVER IS APPLICABLE;
   (5) GROSS RENTALS RECEIVED AND ITEMIZED EXPENSES FOR  THE  IMMEDIATELY
 PRECEDING CALENDAR OR FISCAL YEAR, IF ANY;
   (6)  GROSS RENTALS, IF ANY, DERIVED FROM BINGO DURING THE LAST PRECED-
 ING CALENDAR OR FISCAL YEAR;
   (7) COMPUTATION BY WHICH PROPOSED RENTAL SCHEDULE WAS DETERMINED;
   (8) NUMBER OF OCCASIONS ON WHICH APPLICANT ANTICIPATES RECEIVING  RENT
 FOR BINGO DURING THE ENSUING YEAR OR SHORTER PERIOD IF APPLICABLE;
   (9)  PROPOSED  RENT  FOR  EACH  SUCH  OCCASION; ESTIMATED GROSS RENTAL
 INCOME FROM ALL OTHER SOURCES DURING THE ENSUING YEAR;
   (10) ESTIMATED EXPENSES ITEMIZED FOR ENSUING YEAR AND AMOUNT  OF  EACH
 ITEM ALLOCATED TO BINGO RENTALS;
   (11)  A STATEMENT THAT THE APPLICANT IN ALL RESPECTS CONFORMS WITH THE
 SPECIFICATIONS CONTAINED IN THE DEFINITION OF "AUTHORIZED BINGO  LESSOR"
 SET FORTH IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE; AND
   (12)  SUCH  OTHER  INFORMATION AS SHALL BE PRESCRIBED BY THE RULES AND
 REGULATIONS OF THE COMMISSION.
   (B) AT THE END OF THE LICENSE PERIOD, A RECAPITULATION,  IN  A  MANNER
 PRESCRIBED IN THE RULES AND REGULATIONS OF THE COMMISSION, SHALL BE MADE
 AS  BETWEEN  THE LICENSEE AND THE MUNICIPAL GOVERNING BODY IN RESPECT OF
 THE GROSS RENTAL ACTUALLY RECEIVED DURING THE LICENSE PERIOD AND THE FEE
 PAID THEREFOR.  THE LICENSEE SHALL PAY ANY  DEFICIENCY  OF  FEE  THEREBY
 SHOWN  TO  BE  DUE AND ANY EXCESS OF FEE THEREBY SHOWN TO HAVE BEEN PAID
 SHALL BE CREDITED TO SUCH LICENSEE, IN SUCH MANNER AS THE COMMISSION  BY
 RULES AND REGULATIONS SHALL PRESCRIBE.
   §  1525. INVESTIGATION; MATTERS TO BE DETERMINED; ISSUANCE OF LICENSE;
 FEES; DURATION OF LICENSE. 1. THE GOVERNING  BODY  OF  THE  MUNICIPALITY
 SHALL  MAKE AN INVESTIGATION OF THE QUALIFICATIONS OF EACH APPLICANT AND
 THE MERITS OF EACH APPLICATION, WITH DUE EXPEDITION AFTER THE FILING  OF
 THE APPLICATION.
   (A)  ISSUANCE  OF  LICENSES TO CONDUCT BINGO. IF THE GOVERNING BODY OF
 THE MUNICIPALITY DETERMINES:
   (1) THAT THE APPLICANT IS DULY QUALIFIED TO  BE  LICENSED  TO  CONDUCT
 BINGO UNDER THIS TITLE;
   (2)  THAT  THE  MEMBER  OR  MEMBERS OF THE APPLICANT DESIGNATED IN THE
 APPLICATION TO CONDUCT BINGO ARE BONA FIDE ACTIVE MEMBERS OF THE  APPLI-
 CANT  AND  ARE  PERSONS  OF  GOOD  MORAL  CHARACTER  AND HAVE NEVER BEEN
 CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP  BETWEEN  ONE  OR
 MORE  OF  THE  PREVIOUS  CRIMINAL  OFFENSES  AND THE INTEGRITY OF BINGO,
 CONSIDERING THE FACTORS SET FORTH IN SECTION SEVEN  HUNDRED  FIFTY-THREE
 OF THE CORRECTION LAW;
   (3)  THAT  SUCH  GAMES OF BINGO ARE TO BE CONDUCTED IN ACCORDANCE WITH
 THE PROVISIONS OF THIS TITLE AND IN ACCORDANCE WITH THE RULES AND  REGU-
 LATIONS OF THE COMMISSION;
   (4)  THAT  THE  PROCEEDS  THEREOF ARE TO BE DISPOSED OF AS PROVIDED BY
 THIS TITLE;
   (5) IF THE GOVERNING BODY IS SATISFIED  THAT  NO  COMMISSION,  SALARY,
 COMPENSATION, REWARD OR RECOMPENSE WHATEVER WILL BE PAID OR GIVEN TO ANY
 PERSON  HOLDING,  OPERATING  OR  CONDUCTING OR ASSISTING IN THE HOLDING,
 OPERATION AND CONDUCT OF ANY SUCH GAMES OF BINGO EXCEPT AS IN THIS TITLE
 OTHERWISE PROVIDED; AND
   (6) THAT NO PRIZE WILL BE OFFERED AND GIVEN IN EXCESS OF  THE  SUM  OR
 VALUE  OF FIVE THOUSAND DOLLARS IN ANY SINGLE GAME OF BINGO AND THAT THE
 AGGREGATE OF ALL PRIZES OFFERED AND GIVEN IN ALL OF SUCH GAMES OF  BINGO

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 CONDUCTED  ON A SINGLE OCCASION, UNDER SAID LICENSE SHALL NOT EXCEED THE
 SUM OR VALUE OF FIFTEEN THOUSAND DOLLARS, THEN  THE  MUNICIPALITY  SHALL
 ISSUE  A  LICENSE TO THE APPLICANT FOR THE CONDUCT OF BINGO UPON PAYMENT
 OF  A  LICENSE  FEE  FOR EACH BINGO OCCASION, TO BE ESTABLISHED BY REGU-
 LATION OF THE COMMISSION. NOTWITHSTANDING ANYTHING TO  THE  CONTRARY  IN
 THIS PARAGRAPH, THE GOVERNING BODY SHALL REFUSE TO ISSUE A LICENSE TO AN
 APPLICANT  SEEKING  TO  CONDUCT  BINGO  IN  PREMISES OF A LICENSED BINGO
 LESSOR WHERE SUCH GOVERNING BODY DETERMINES THAT THE PREMISES  PRESENTLY
 OWNED  OR  OCCUPIED  BY SUCH APPLICANT ARE IN EVERY RESPECT ADEQUATE AND
 SUITABLE FOR CONDUCTING BINGO GAMES.
   (B) ISSUANCE OF LICENSES TO BINGO LESSORS. IF THE  GOVERNING  BODY  OF
 THE MUNICIPALITY DETERMINES THAT:
   (1)  THE APPLICANT SEEKING TO LEASE A HALL OR PREMISES FOR THE CONDUCT
 OF BINGO TO AN AUTHORIZED ORGANIZATION IS DULY QUALIFIED TO BE  LICENSED
 UNDER THIS TITLE;
   (2)  THE  APPLICANT SATISFIES THE REQUIREMENTS FOR AN AUTHORIZED BINGO
 LESSOR AS DEFINED IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE;
   (3) AT THE TIME OF THE ISSUANCE OF AN  INITIAL  LICENSE,  THERE  IS  A
 PUBLIC  NEED AND THAT PUBLIC ADVANTAGE WILL BE SERVED BY THE ISSUANCE OF
 SUCH LICENSE;
   (4) THE APPLICANT HAS FILED ITS PROPOSED RENT FOR EACH BINGO OCCASION;
   (5) THE COMMISSION HAS APPROVED AS FAIR AND REASONABLE A  SCHEDULE  OF
 MAXIMUM RENTALS FOR EACH SUCH OCCASION;
   (6) THERE IS NO DIVERSION OF THE FUNDS OF THE PROPOSED LESSEE FROM THE
 LAWFUL PURPOSES AS DEFINED IN THIS TITLE; AND
   (7)  SUCH LEASING OF A HALL OR PREMISES FOR THE CONDUCT OF BINGO IS TO
 BE IN ACCORDANCE WITH THE PROVISIONS OF THIS  TITLE  AND  IN  ACCORDANCE
 WITH  THE  RULES  AND REGULATIONS OF THE COMMISSION, SUCH GOVERNING BODY
 SHALL ISSUE A LICENSE PERMITTING THE APPLICANT TO  LEASE  SAID  PREMISES
 FOR THE CONDUCT OF BINGO TO THE AUTHORIZED ORGANIZATION OR ORGANIZATIONS
 SPECIFIED IN THE APPLICATION DURING THE PERIOD THEREIN SPECIFIED OR SUCH
 SHORTER PERIOD AS THE GOVERNING BODY OF THE MUNICIPALITY DETERMINES, BUT
 NOT  TO  EXCEED  ONE  YEAR, UPON PAYMENT OF A LICENSE FEE ESTABLISHED BY
 REGULATION OF THE COMMISSION.
   2. ON OR BEFORE THE THIRTIETH DAY OF EACH MONTH, THE TREASURER OF  THE
 MUNICIPALITY  SHALL  TRANSMIT  TO  THE  STATE COMPTROLLER A SUM EQUAL TO
 FIFTY PERCENT OF ALL BINGO LESSOR LICENSE FEES AND AN AMOUNT ESTABLISHED
 BY REGULATION OF THE COMMISSION PER OCCASION OF ALL LICENSE FEES FOR THE
 CONDUCT OF BINGO COLLECTED BY SUCH MUNICIPALITY PURSUANT TO THIS SECTION
 DURING THE PRECEDING CALENDAR MONTH.
   3. NO LICENSE SHALL BE ISSUED UNDER THIS TITLE THAT IS EFFECTIVE FOR A
 PERIOD OF MORE THAN ONE YEAR. IN THE CASE OF  LIMITED-PERIOD  BINGO,  NO
 LICENSE  SHALL  BE  ISSUED AUTHORIZING THE CONDUCT OF SUCH GAMES ON MORE
 THAN TWO OCCASIONS IN ANY ONE DAY, NOR SHALL ANY LICENSE BE ISSUED UNDER
 THIS TITLE THAT IS EFFECTIVE FOR A PERIOD OF MORE THAN SEVEN  OF  TWELVE
 CONSECUTIVE  DAYS  IN ANY ONE YEAR. NO LICENSE FOR THE CONDUCT OF LIMIT-
 ED-PERIOD BINGO SHALL BE ISSUED IN CITIES HAVING  A  POPULATION  OF  ONE
 MILLION OR MORE.
   § 1526. HEARING; AMENDMENT OF LICENSE. 1. NO APPLICATION FOR THE ISSU-
 ANCE  OF  A  LICENSE SHALL BE DENIED BY THE GOVERNING BODY UNTIL AFTER A
 HEARING, HELD ON DUE NOTICE TO THE APPLICANT,  AT  WHICH  THE  APPLICANT
 SHALL  BE  ENTITLED TO BE HEARD UPON THE QUALIFICATIONS OF THE APPLICANT
 AND THE MERITS OF THE APPLICATION.
   2. ANY LICENSE ISSUED UNDER THIS TITLE MAY BE AMENDED,  UPON  APPLICA-
 TION  MADE  TO  THE  GOVERNING BODY OF THE MUNICIPALITY THAT ISSUED SUCH
 LICENSE, IF THE SUBJECT MATTER OF THE PROPOSED AMENDMENT COULD  LAWFULLY

 S. 2009                            122                           A. 3009
 
 AND PROPERLY HAVE BEEN INCLUDED IN THE ORIGINAL LICENSE AND UPON PAYMENT
 OF  SUCH  ADDITIONAL  LICENSE  FEE IF ANY, AS WOULD HAVE BEEN PAYABLE IF
 SUCH AMENDMENT HAD BEEN SO INCLUDED.
   §  1527.  FORM  AND  CONTENTS OF LICENSE; DISPLAY OF LICENSE. 1.  EACH
 LICENSE TO CONDUCT BINGO SHALL BE IN SUCH FORM AS THE  RULES  AND  REGU-
 LATIONS OF THE COMMISSION PRESCRIBE AND SHALL CONTAIN:
   (A) THE NAME AND ADDRESS OF THE LICENSEE;
   (B)  THE NAMES OF THE MEMBER OR MEMBERS OF THE LICENSEE UNDER WHOM THE
 GAMES WILL BE CONDUCTED;
   (C) THE PLACE OR PLACES WHERE AND THE DATE OR DATES AND TIME OR  TIMES
 WHEN SUCH GAMES ARE TO BE CONDUCTED;
   (D)  THE  SPECIFIC  PURPOSES  TO WHICH THE ENTIRE NET PROCEEDS OF SUCH
 GAMES ARE TO BE DEVOTED; AND
   (E) IF ANY PRIZE OR PRIZES ARE TO BE OFFERED  AND  GIVEN  IN  CASH,  A
 STATEMENT  OF  THE AMOUNTS OF THE PRIZES AUTHORIZED SO TO BE OFFERED AND
 GIVEN AND ANY OTHER INFORMATION THAT THE RULES AND  REGULATIONS  OF  THE
 COMMISSION MAY REQUIRE.
   2.  EACH  LICENSE ISSUED FOR THE CONDUCT OF ANY GAME OF BINGO SHALL BE
 DISPLAYED CONSPICUOUSLY AT THE PLACE WHERE SUCH GAME OF BINGO IS  TO  BE
 CONDUCTED AT ALL TIMES DURING SUCH CONDUCT.
   3.  EACH  LICENSE  TO  LEASE PREMISES FOR CONDUCTING BINGO SHALL BE IN
 SUCH FORM AS THE RULES AND REGULATIONS OF THE COMMISSION  PRESCRIBE  AND
 SHALL  CONTAIN  A  STATEMENT OF THE NAME AND ADDRESS OF THE LICENSEE AND
 THE ADDRESS OF THE LEASED PREMISES, THE AMOUNT OF PERMISSIBLE  RENT  AND
 ANY  OTHER  INFORMATION THAT THE RULES AND REGULATIONS OF THE COMMISSION
 MAY REQUIRE. EACH SUCH LICENSE SHALL  BE  DISPLAYED  CONSPICUOUSLY  UPON
 SUCH PREMISES AT ALL TIMES DURING THE CONDUCT OF BINGO.
   § 1528. CONTROL AND SUPERVISION; SUSPENSION OF LICENSES; INSPECTION OF
 PREMISES.  1. THE GOVERNING BODY OF ANY MUNICIPALITY ISSUING ANY LICENSE
 UNDER THIS TITLE SHALL HAVE AND EXERCISE RIGID CONTROL AND CLOSE  SUPER-
 VISION  OVER ALL GAMES OF BINGO CONDUCTED UNDER SUCH LICENSE, TO THE END
 THAT THE SAME ARE FAIRLY CONDUCTED IN ACCORDANCE WITH THE PROVISIONS  OF
 SUCH LICENSE, THE PROVISIONS OF THE RULES AND REGULATIONS OF THE COMMIS-
 SION AND THE PROVISIONS OF THIS TITLE AND SUCH GOVERNING BODY.
   2.  THE  COMMISSION  SHALL HAVE THE POWER AND THE AUTHORITY TO SUSPEND
 ANY LICENSE ISSUED BY SUCH GOVERNING BODY AND TO REVOKE THE  SAME,  AND,
 ADDITIONALLY,  IN  THE  CASE  OF AN AUTHORIZED BINGO LESSOR, TO IMPOSE A
 FINE IN AN AMOUNT NOT EXCEEDING ONE THOUSAND DOLLARS, AFTER  NOTICE  AND
 HEARING,  FOR VIOLATION OF ANY SUCH PROVISIONS, AND SHALL HAVE THE RIGHT
 OF ENTRY, BY THE COMMISSION'S OFFICERS AND AGENTS, AT ALL TIMES INTO ANY
 PREMISES WHERE ANY GAME OF BINGO IS  BEING  CONDUCTED  OR  WHERE  IT  IS
 INTENDED  THAT  ANY  SUCH GAME OF BINGO SHALL BE CONDUCTED, OR WHERE ANY
 EQUIPMENT BEING USED OR INTENDED TO BE USED IN THE  CONDUCT  THEREOF  IS
 FOUND, FOR THE PURPOSE OF INSPECTING THE SAME.
   3. IN ADDITION TO THE AUTHORITY GRANTED PURSUANT TO SUBDIVISION TWO OF
 THIS  SECTION,  THE  GOVERNING BODY IN A CITY HAVING A POPULATION OF ONE
 MILLION OR MORE AND THE COMMISSION MAY IMPOSE A FINE IN  AN  AMOUNT  NOT
 EXCEEDING  ONE THOUSAND DOLLARS, AFTER NOTICE AND HEARING, ON ANY LICEN-
 SEE UNDER THIS TITLE FOR VIOLATION OF ANY  PROVISION  OF  SUCH  LICENSE,
 THIS TITLE OR RULES AND REGULATIONS OF THE COMMISSION.
   §  1529.  FREQUENCY  OF  GAME; SALE OF ALCOHOLIC BEVERAGES. NO GAME OR
 GAMES OF BINGO, EXCEPT LIMITED-PERIOD BINGO, SHALL  BE  CONDUCTED  UNDER
 ANY  LICENSE ISSUED UNDER THIS TITLE MORE OFTEN THAN ON EIGHTEEN DAYS IN
 ANY THREE SUCCESSIVE CALENDAR MONTHS. NO GAME OR GAMES OF LIMITED-PERIOD
 BINGO SHALL BE CONDUCTED BETWEEN THE HOURS OF TWELVE MIDNIGHT AND  NOON,
 AND  NO MORE THAN SIXTY GAMES MAY BE CONDUCTED ON ANY SINGLE OCCASION OF

 S. 2009                            123                           A. 3009
 
 LIMITED-PERIOD BINGO. NO GAME OR GAMES OF BINGO SHALL  BE  CONDUCTED  IN
 ANY  ROOM  OR OUTDOOR AREA WHERE ALCOHOLIC BEVERAGES ARE SOLD, SERVED OR
 CONSUMED DURING THE PROGRESS OF THE GAME OR GAMES.
   §  1530.  PERSONS  OPERATING  AND  CONDUCTING  BINGO GAMES; EQUIPMENT;
 EXPENSES; COMPENSATION. 1. (A) NO PERSON SHALL HOLD, OPERATE OR  CONDUCT
 ANY  GAME  OF  BINGO  UNDER ANY LICENSE ISSUED UNDER THIS TITLE EXCEPT A
 BONA FIDE MEMBER OF THE AUTHORIZED ORGANIZATION TO WHICH THE LICENSE  IS
 ISSUED.  NO  PERSON SHALL ASSIST IN THE HOLDING, OPERATING OR CONDUCTING
 OF ANY GAME OF BINGO UNDER SUCH LICENSE EXCEPT SUCH A BONA  FIDE  MEMBER
 OR  A  BONA  FIDE  MEMBER  OF  AN ORGANIZATION OR ASSOCIATION THAT IS AN
 AUXILIARY TO THE LICENSEE OR A BONA FIDE MEMBER OF  AN  ORGANIZATION  OR
 ASSOCIATION OF WHICH SUCH LICENSEE IS AN AUXILIARY OR A BONA FIDE MEMBER
 OF  AN  ORGANIZATION OR ASSOCIATION THAT IS AFFILIATED WITH THE LICENSEE
 BY BEING, WITH IT, AUXILIARY TO ANOTHER ORGANIZATION OR ASSOCIATION  AND
 EXCEPT  BOOKKEEPERS  OR  ACCOUNTANTS  AS  HEREINAFTER  PROVIDED, BUT ANY
 PERSON MAY ASSIST THE LICENSED ORGANIZATION IN ANY ACTIVITY  RELATED  TO
 THE  GAME  OF BINGO THAT DOES NOT ACTUALLY INVOLVE THE HOLDING, CONDUCT-
 ING, MANAGING OR OPERATING OF SUCH GAME OF BINGO.
   (B) NO GAME OF BINGO SHALL BE CONDUCTED WITH ANY EQUIPMENT EXCEPT SUCH
 AS SHALL BE OWNED ABSOLUTELY OR LEASED BY THE AUTHORIZED ORGANIZATION SO
 LICENSED OR USED WITHOUT PAYMENT OF ANY  COMPENSATION  THEREFOR  BY  THE
 LICENSEE.
   (C) LEASE TERMS AND CONDITIONS SHALL BE SUBJECT TO THE RULES AND REGU-
 LATIONS OF THE COMMISSION.
   (D)  THIS  TITLE  SHALL  NOT  BE  CONSTRUED  TO AUTHORIZE OR PERMIT AN
 AUTHORIZED ORGANIZATION TO ENGAGE  IN  THE  BUSINESS  OF  LEASING  BINGO
 SUPPLIES OR EQUIPMENT.
   (E)  NO  ITEMS OF EXPENSE SHALL BE INCURRED OR PAID IN CONNECTION WITH
 THE CONDUCTING OF ANY GAME OF BINGO PURSUANT TO ANY LICENSE ISSUED UNDER
 THIS TITLE,  EXCEPT  THOSE  THAT  ARE  REASONABLE  AND  ARE  NECESSARILY
 EXPENDED  FOR  BINGO  SUPPLIES  AND EQUIPMENT, PRIZES, STATED RENTAL, IF
 ANY, BOOKKEEPING OR ACCOUNTING  SERVICES  ACCORDING  TO  A  SCHEDULE  OF
 COMPENSATION PRESCRIBED BY THE COMMISSION, JANITORIAL SERVICES AND UTIL-
 ITY  SUPPLIES, IF ANY, AND LICENSE FEES, AND THE COST OF BUS TRANSPORTA-
 TION, IF AUTHORIZED BY THE COMMISSION.
   2. NOTWITHSTANDING ANY PROVISION OF THIS  TITLE  TO  THE  CONTRARY,  A
 PERSON  WHO IS A BONA FIDE MEMBER OF AN ORGANIZATION LICENSED TO CONDUCT
 THE GAME OF BINGO AND IS ALSO A BONA FIDE MEMBER OF ONE  OR  MORE  OTHER
 ORGANIZATIONS  THAT  ARE ALSO LICENSED TO CONDUCT THE GAME OF BINGO, AND
 SUCH ORGANIZATIONS ARE NOT AFFILIATES  OR  AUXILIARIES  OF  THE  OTHERS,
 SHALL  BE  AUTHORIZED  TO OPERATE, CONDUCT OR ASSIST IN THE OPERATION OR
 CONDUCT OF GAMES OF BINGO HELD BY ANY OF SUCH ORGANIZATIONS LICENSED  TO
 CONDUCT BINGO.
   §  1531.  CHARGE  FOR  ADMISSION  AND PARTICIPATION; AMOUNT OF PRIZES;
 AWARD OF PRIZES. 1. EXCEPT IN THE CONDUCT OF LIMITED-PERIOD  BINGO,  THE
 REGULATIONS  OF  THE  COMMISSION  SHALL ESTABLISH A MAXIMUM AMOUNT TO BE
 CHARGED BY ANY LICENSEE FOR ADMISSION TO ANY ROOM OR PLACE IN WHICH  ANY
 GAME  OR  GAMES  OF  BINGO  ARE TO BE CONDUCTED UNDER ANY LICENSE ISSUED
 UNDER THIS TITLE, WHICH ADMISSION FEE, UPON PAYMENT THEREOF, SHALL ENTI-
 TLE THE PERSON PAYING THE SAME TO PARTICIPATE WITHOUT ADDITIONAL  CHARGE
 IN  ALL  REGULAR  GAMES OF BINGO TO BE PLAYED UNDER SUCH LICENSE ON SUCH
 OCCASION.
   2. IN THE CONDUCT OF LIMITED-PERIOD BINGO:
   (A) NO ADMISSION FEE SHALL BE CHARGED;
   (B) NOT MORE THAN AN AMOUNT ESTABLISHED BY REGULATION OF  THE  COMMIS-
 SION SHALL BE CHARGED FOR A SINGLE OPPORTUNITY TO PARTICIPATE IN ANY ONE

 S. 2009                            124                           A. 3009
 
 GAME  OF  BINGO,  WHICH  CHARGE, UPON PAYMENT THEREOF, SHALL ENTITLE THE
 PERSON PAYING THE SAME TO ONE CARD FOR PARTICIPATION IN ONE  SUCH  GAME;
 AND
   (C) NO LICENSEE SHALL SELL MORE THAN FIVE OPPORTUNITIES TO EACH PLAYER
 PARTICIPATING  IN ANY ONE GAME OF BINGO. EVERY WINNER IN A GAME OF BINGO
 SHALL BE DETERMINED AND EVERY PRIZE SHALL BE AWARDED AND DELIVERED WITH-
 IN THE SAME CALENDAR DAY AS THAT  UPON  WHICH  THE  GAME  OF  BINGO  WAS
 PLAYED.
   §  1532.  STATEMENT OF RECEIPTS, EXPENSES; ADDITIONAL LICENSE FEES. 1.
 WITHIN SEVEN DAYS AFTER THE CONCLUSION OF ANY  OCCASION  OF  BINGO,  THE
 AUTHORIZED  ORGANIZATION  THAT  CONDUCTED  THE SAME, AND SUCH AUTHORIZED
 ORGANIZATION'S MEMBERS WHO WERE IN CHARGE THEREOF, AND  WHEN  APPLICABLE
 THE  AUTHORIZED  ORGANIZATION  THAT  RENTED ITS PREMISES THEREFOR, SHALL
 EACH FURNISH TO THE CLERK OR THE DEPARTMENT A  STATEMENT  SUBSCRIBED  BY
 THE  MEMBER  IN  CHARGE  AND  AFFIRMED BY SUCH PERSON AS TRUE, UNDER THE
 PENALTIES OF PERJURY, SHOWING THE AMOUNT OF THE GROSS  RECEIPTS  DERIVED
 THEREFROM  AND  EACH ITEM OF EXPENSE INCURRED, OR PAID, AND EACH ITEM OF
 EXPENDITURE MADE OR TO BE MADE, THE NAME AND ADDRESS OF EACH  PERSON  TO
 WHOM  EACH  SUCH  ITEM  HAS BEEN PAID, OR IS TO BE PAID, WITH A DETAILED
 DESCRIPTION OF THE MERCHANDISE PURCHASED OR THE SERVICES RENDERED THERE-
 FOR, THE NET PROCEEDS DERIVED FROM SUCH GAME OR RENTAL, AS THE CASE  MAY
 BE,  AND  THE  USE TO WHICH SUCH PROCEEDS HAVE BEEN OR ARE TO BE APPLIED
 AND A LIST OF PRIZES OFFERED AND GIVEN, WITH THE RESPECTIVE VALUES THER-
 EOF. A CLERK OR THE DEPARTMENT SHALL MAKE PROVISIONS FOR THE  ELECTRONIC
 FILING OF SUCH STATEMENT. IT SHALL BE THE DUTY OF EACH LICENSEE TO MAIN-
 TAIN AND KEEP SUCH BOOKS AND RECORDS AS MAY BE NECESSARY TO SUBSTANTIATE
 THE PARTICULARS OF EACH SUCH STATEMENT AND WITHIN FIFTEEN DAYS AFTER THE
 END OF EACH CALENDAR QUARTER DURING WHICH THERE HAS BEEN ANY OCCASION OF
 BINGO,  A  SUMMARY  STATEMENT OF SUCH INFORMATION, IN FORM PRESCRIBED BY
 THE COMMISSION, SHALL BE FURNISHED IN THE SAME MANNER TO THE COMMISSION.
   2. UPON THE FILING OF  SUCH  STATEMENT  OF  RECEIPTS,  THE  AUTHORIZED
 ORGANIZATION  FURNISHING  THE SAME SHALL PAY TO THE CLERK OF THE MUNICI-
 PALITY AS AND FOR AN  ADDITIONAL  LICENSE  FEE  A  SUM  BASED  UPON  THE
 REPORTED  NET  PROCEEDS, IF ANY, FOR THE OCCASION COVERED BY SUCH STATE-
 MENT AND DETERMINED IN ACCORDANCE WITH SUCH SCHEDULE AS SHALL BE  ESTAB-
 LISHED FROM TIME TO TIME BY THE COMMISSION TO DEFRAY THE COST TO MUNICI-
 PALITIES OF ADMINISTERING THE PROVISIONS OF THIS ARTICLE.
   §  1533.  EXAMINATION  OF  BOOKS AND RECORDS; EXAMINATION OF MANAGERS,
 ETC.; DISCLOSURE OF INFORMATION. 1. THE GOVERNING BODY  OF  THE  MUNICI-
 PALITY  AND  THE  COMMISSION  SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE
 EXAMINED THE BOOKS AND RECORDS OF ANY:
   (A) AUTHORIZED ORGANIZATION THAT IS OR HAS BEEN  LICENSED  TO  CONDUCT
 BINGO,  SO  FAR AS SUCH BOOKS AND RECORDS MAY RELATE TO BINGO, INCLUDING
 THE MAINTENANCE, CONTROL AND DISPOSITION OF NET  PROCEEDS  DERIVED  FROM
 BINGO  OR  FROM  THE  USE  OF ITS PREMISES FOR BINGO, AND TO EXAMINE ANY
 MANAGER, OFFICER, DIRECTOR, AGENT, MEMBER OR EMPLOYEE THEREOF UNDER OATH
 IN RELATION TO THE CONDUCT OF ANY SUCH GAME  OF  BINGO  UNDER  ANY  SUCH
 LICENSE,  THE  USE  OF ITS PREMISES FOR BINGO, OR THE DISPOSITION OF NET
 PROCEEDS DERIVED FROM BINGO, AS THE CASE MAY BE; AND
   (B) LICENSED AUTHORIZED BINGO LESSOR SO FAR AS SUCH BOOKS AND  RECORDS
 MAY  RELATE  TO LEASING PREMISES FOR BINGO AND TO EXAMINE SAID LESSOR OR
 ANY MANAGER, OFFICER, DIRECTOR, AGENT OR EMPLOYEE THEREOF UNDER OATH  IN
 RELATION TO SUCH LEASING.
   2. ANY INFORMATION SO RECEIVED SHALL NOT BE DISCLOSED EXCEPT SO FAR AS
 MAY  BE NECESSARY FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THIS
 ARTICLE.

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   § 1534. APPEALS FROM MUNICIPAL GOVERNING  BODY  TO  COMMISSION.    ANY
 APPLICANT  FOR,  OR  HOLDER OF, ANY LICENSE ISSUED OR TO BE ISSUED UNDER
 THIS TITLE AGGRIEVED BY ANY ACTION OF THE GOVERNING BODY OF THE  MUNICI-
 PALITY  TO WHICH SUCH APPLICATION HAS BEEN MADE OR BY WHICH SUCH LICENSE
 HAS  BEEN ISSUED, MAY APPEAL TO THE COMMISSION FROM THE DETERMINATION OF
 SAID GOVERNING BODY BY FILING WITH THE GOVERNING BODY A  WRITTEN  NOTICE
 OF  APPEAL WITHIN THIRTY DAYS AFTER THE DETERMINATION OR ACTION APPEALED
 FROM. UPON THE HEARING OF SUCH  APPEAL,  THE  EVIDENCE,  IF  ANY,  TAKEN
 BEFORE  THE  GOVERNING  BODY AND ANY ADDITIONAL EVIDENCE MAY BE PRODUCED
 AND SHALL BE CONSIDERED IN ARRIVING AT A DETERMINATION OF THE MATTERS IN
 ISSUE. ACTION OF THE COMMISSION UPON SAID APPEAL SHALL BE  BINDING  UPON
 SAID GOVERNING BODY AND ALL PARTIES TO SAID APPEAL.
   §  1535. EXEMPTION FROM PROSECUTION. NO PERSON OR CORPORATION LAWFULLY
 CONDUCTING, OR PARTICIPATING IN THE CONDUCT OF BINGO OR  PERMITTING  THE
 CONDUCT  UPON  ANY  PREMISES OWNED OR LEASED BY HIM, HER OR IT UNDER ANY
 LICENSE LAWFULLY ISSUED PURSUANT TO THIS TITLE, SHALL BE LIABLE TO PROS-
 ECUTION OR CONVICTION FOR VIOLATION OF  ANY  PROVISION  OF  ARTICLE  TWO
 HUNDRED  TWENTY-FIVE  OF  THE PENAL LAW OR ANY OTHER LAW OR ORDINANCE TO
 THE EXTENT THAT SUCH CONDUCT IS SPECIFICALLY AUTHORIZED BY  THIS  TITLE,
 BUT THIS IMMUNITY SHALL NOT EXTEND TO ANY PERSON OR CORPORATION KNOWING-
 LY CONDUCTING OR PARTICIPATING IN THE CONDUCT OF BINGO UNDER ANY LICENSE
 OBTAINED  BY  ANY  FALSE  PRETENSE OR BY ANY FALSE STATEMENT MADE IN ANY
 APPLICATION FOR LICENSE OR OTHERWISE, OR PERMITTING THE CONDUCT UPON ANY
 PREMISES OWNED OR LEASED BY  HIM,  HER  OR  IT  OF  ANY  GAME  OF  BINGO
 CONDUCTED  UNDER  ANY  LICENSE  KNOWN  TO  HIM,  HER  OR IT TO HAVE BEEN
 OBTAINED BY ANY SUCH FALSE PRETENSE OR STATEMENT.
   § 1536. OFFENSES; FORFEITURE OF LICENSE; INELIGIBILITY  TO  APPLY  FOR
 LICENSE. ANY PERSON WHO, OR ASSOCIATION OR CORPORATION THAT:
   1.  MAKES  ANY  FALSE  STATEMENT  IN  ANY  APPLICATION FOR ANY LICENSE
 AUTHORIZED TO BE ISSUED UNDER THIS TITLE;
   2. PAYS OR RECEIVES, FOR THE USE OF ANY PREMISES FOR CONDUCTING BINGO,
 A RENTAL IN EXCESS OF THE AMOUNT SPECIFIED AS THE  PERMISSIBLE  RENT  IN
 THE  LICENSE  PROVIDED FOR IN SUBDIVISION TWO OF SECTION FIFTEEN HUNDRED
 TWENTY-FOUR OF THIS TITLE;
   3. FAILS TO KEEP BOOKS AND RECORDS THAT FULLY  AND  TRULY  RECORD  ALL
 TRANSACTIONS  CONNECTED  WITH  THE CONDUCTING OF BINGO OR THE LEASING OF
 PREMISES TO BE USED FOR THE CONDUCT OF BINGO;
   4. FALSIFIES OR MAKES ANY FALSE ENTRY IN ANY BOOKS OR RECORDS  SO  FAR
 AS  SUCH  BOOKS OR RECORDS RELATE IN ANY MANNER TO THE CONDUCT OF BINGO,
 TO THE DISPOSITION OF THE PROCEEDS THEREOF AND TO THE APPLICATION OF THE
 RENTS RECEIVED BY ANY AUTHORIZED ORGANIZATION;
   5. DIVERTS OR PAYS ANY PORTION OF THE NET  PROCEEDS  OF  ANY  GAME  OF
 BINGO  TO  ANY PERSON, ASSOCIATION OR CORPORATION, EXCEPT IN FURTHERANCE
 OF ONE OR MORE OF THE LAWFUL PURPOSES DEFINED IN THIS TITLE; OR
   6. VIOLATES ANY OF THE PROVISIONS OF THIS TITLE OR OF ANY TERM OF  ANY
 LICENSE  ISSUED  UNDER  THIS TITLE; SHALL BE GUILTY OF A MISDEMEANOR AND
 SHALL FORFEIT ANY LICENSE ISSUED UNDER THIS TITLE AND BE  INELIGIBLE  TO
 APPLY FOR A LICENSE UNDER THIS TITLE FOR ONE YEAR THEREAFTER.
   §  1537.  UNLAWFUL  BINGO.  1. FOR THE PURPOSES OF THIS SECTION, BINGO
 SHALL INCLUDE A GAME OF BINGO WHETHER OR NOT A PERSON  WHO  PARTICIPATES
 AS  A PLAYER FURNISHES SOMETHING OF VALUE FOR THE OPPORTUNITY TO PARTIC-
 IPATE.
   2. ANY PERSON, FIRM, PARTNERSHIP, ASSOCIATION, CORPORATION  OR  ORGAN-
 IZATION  HOLDING, OPERATING OR CONDUCTING BINGO IS GUILTY OF A MISDEMEA-
 NOR, EXCEPT WHEN OPERATING, HOLDING OR CONDUCTING:

 S. 2009                            126                           A. 3009
 
   (A) IN ACCORDANCE WITH A VALID LICENSE ISSUED PURSUANT TO THIS  TITLE;
 OR
   (B)  WITHIN  A  MUNICIPALITY  THAT HAS AUTHORIZED THE CONDUCT OF BINGO
 GAMES BY AUTHORIZED ORGANIZATIONS:
   (1) WITHIN THE CONFINES OF A HOME FOR PURPOSES OF AMUSEMENT OR  RECRE-
 ATION  WHERE  NO  PLAYER OR OTHER PERSON FURNISHES ANYTHING OF VALUE FOR
 THE OPPORTUNITY TO PARTICIPATE AND THE PRIZES AWARDED OR TO  BE  AWARDED
 ARE NOMINAL.
   (2)  WITHIN ANY APARTMENT, CONDOMINIUM OR COOPERATIVE COMPLEX, RETIRE-
 MENT COMMUNITY, OR OTHER GROUP RESIDENTIAL COMPLEX OR FACILITY WHERE:
   (I) SPONSORED BY THE OPERATOR OF OR AN  ASSOCIATION  RELATED  TO  SUCH
 COMPLEX, COMMUNITY OR FACILITY;
   (II)  SUCH GAMES ARE CONDUCTED SOLELY FOR THE PURPOSE OF AMUSEMENT AND
 RECREATION OF ITS RESIDENTS;
   (III) NO PLAYER OR OTHER PERSON FURNISHES ANYTHING OF  VALUE  FOR  THE
 OPPORTUNITY TO PARTICIPATE;
   (IV)  THE  VALUE  OF  THE PRIZES DO NOT EXCEED TEN DOLLARS FOR ANY ONE
 GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
   (V) SUCH GAMES ARE NOT CONDUCTED ON MORE THAN FIFTEEN DAYS DURING  ANY
 CALENDAR YEAR; AND
   (VI)  NO  PERSON  OTHER THAN AN EMPLOYEE OR VOLUNTEER OF SUCH COMPLEX,
 COMMUNITY OR FACILITY CONDUCTS OR ASSISTS  IN  CONDUCTING  THE  GAME  OR
 GAMES.
   (3) ON BEHALF OF ANY BONA FIDE SOCIAL, CHARITABLE, EDUCATIONAL, RECRE-
 ATIONAL, FRATERNAL OR AGE-GROUP ORGANIZATION, CLUB OR ASSOCIATION SOLELY
 FOR  THE PURPOSE OF AMUSEMENT AND RECREATION OF ITS MEMBERS OR BENEFICI-
 ARIES WHERE:
   (I) NO PLAYER OR OTHER PERSON FURNISHES  ANYTHING  OF  VALUE  FOR  THE
 OPPORTUNITY TO PARTICIPATE;
   (II)  THE  VALUE  OF  THE PRIZES DO NOT EXCEED TEN DOLLARS FOR ANY ONE
 GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
   (III) SUCH GAMES ARE NOT CONDUCTED ON MORE THAN  FIFTEEN  DAYS  DURING
 ANY CALENDAR YEAR;
   (IV)  NO  PERSON OTHER THAN A BONA FIDE ACTIVE MEMBER OF THE ORGANIZA-
 TION, CLUB OR ASSOCIATION PARTICIPATES IN THE CONDUCT OF THE GAMES; AND
   (V) NO PERSON IS PAID FOR CONDUCTING OR ASSISTING IN  THE  CONDUCT  OF
 THE GAME OR GAMES.
   (4) AS A HOTEL'S, MOTEL'S, RECREATIONAL OR ENTERTAINMENT FACILITY'S OR
 COMMON CARRIER'S SOCIAL ACTIVITY SOLELY FOR THE PURPOSE OF AMUSEMENT AND
 RECREATION OF ITS PATRONS WHERE:
   (I)  NO  PLAYER  OR  OTHER  PERSON FURNISHES ANYTHING OF VALUE FOR THE
 OPPORTUNITY TO PARTICIPATE;
   (II) THE VALUE OF THE PRIZES DO NOT EXCEED TEN  DOLLARS  FOR  ANY  ONE
 GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
   (III)  SUCH  GAMES  ARE NOT CONDUCTED ON MORE THAN FIFTEEN DAYS DURING
 ANY CALENDAR YEAR;
   (IV) NO PERSON OTHER THAN AN EMPLOYEE OR VOLUNTEER CONDUCTS OR ASSISTS
 IN CONDUCTING THE GAME OR GAMES; AND
   (V) THE GAME OR GAMES ARE NOT CONDUCTED IN THE SAME ROOM  WHERE  ALCO-
 HOLIC BEVERAGES ARE SOLD.
   (5) THE COMMISSION AND THE GOVERNING BODY OF THE MUNICIPALITY IN WHICH
 BINGO  GAMES  ARE CONDUCTED PURSUANT TO PARAGRAPH (B) OF SUBDIVISION TWO
 OF THIS SECTION SHALL HAVE THE AUTHORITY TO REGULATE THE CONDUCT OF SUCH
 GAMES. ANY BINGO GAME OR GAMES, IN WHICH NO PARTICIPANT OR OTHER  PERSON
 FURNISHES  ANYTHING OF VALUE FOR THE OPPORTUNITY TO PARTICIPATE, THAT IS
 OR ARE OPERATED IN VIOLATION OF PARAGRAPH (B) OF SUBDIVISION TWO OF THIS

 S. 2009                            127                           A. 3009
 
 SECTION, A CIVIL PENALTY OF NOT MORE THAN ONE  HUNDRED  DOLLARS  MAY  BE
 IMPOSED  FOR  THE FIRST SUCH VIOLATION, A CIVIL PENALTY OF NOT MORE THAN
 ONE HUNDRED FIFTY DOLLARS MAY BE IMPOSED FOR THE SECOND  SUCH  VIOLATION
 IN  A  PERIOD  OF  THREE  YEARS AND A CIVIL PENALTY OF NOT MORE THAN TWO
 HUNDRED DOLLARS  MAY  BE  IMPOSED  FOR  THE  THIRD  OR  SUBSEQUENT  SUCH
 VIOLATION IN A PERIOD OF FIVE YEARS.
   3.  THE  PROVISIONS  OF THIS SECTION SHALL APPLY TO ALL MUNICIPALITIES
 WITHIN THIS STATE, INCLUDING THOSE MUNICIPALITIES WHERE  THIS  TITLE  IS
 INOPERATIVE.
   §  1538. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS. EXCEPT AS PROVIDED
 IN SECTION FIFTEEN HUNDRED FORTY, THE PROVISIONS  OF  THIS  TITLE  SHALL
 REMAIN  INOPERATIVE  IN  ANY MUNICIPALITY UNLESS AND UNTIL A PROPOSITION
 THEREFOR SUBMITTED AT A GENERAL OR SPECIAL ELECTION IN SUCH MUNICIPALITY
 IS APPROVED BY A VOTE OF THE MAJORITY OF THE QUALIFIED ELECTORS IN  SUCH
 MUNICIPALITY VOTING THEREON.
   §  1539.  AMENDMENT  AND  REPEAL OF LOCAL LAWS AND ORDINANCES. 1.  ANY
 LOCAL LAW OR ORDINANCE CONCERNING BINGO MAY BE  AMENDED,  FROM  TIME  TO
 TIME,  OR REPEALED BY THE COMMON COUNCIL OR OTHER LOCAL LEGISLATIVE BODY
 OF THE MUNICIPALITY THAT ENACTED IT AND SUCH AMENDMENT OR REPEAL, AS THE
 CASE MAY BE, MAY BE MADE EFFECTIVE AND OPERATIVE NOT EARLIER THAN THIRTY
 DAYS FOLLOWING THE EFFECTIVE DATE OF THE LOCAL LAW OR ORDINANCE  EFFECT-
 ING SUCH AMENDMENT OR REPEAL, AS THE CASE MAY BE.
   2.  THE  APPROVAL  OF  A MAJORITY OF THE ELECTORS OF SUCH MUNICIPALITY
 SHALL NOT BE A CONDITION PREREQUISITE TO THE TAKING EFFECT OF SUCH LOCAL
 LAW OR ORDINANCE.
   § 1540. DELEGATION OF AUTHORITY. THE GOVERNING BODY OF A  MUNICIPALITY
 MAY DELEGATE TO A MUNICIPAL OFFICER OR OFFICERS DESIGNATED BY SUCH MUNI-
 CIPALITY  FOR  THAT PURPOSE ANY OF THE AUTHORITY GRANTED TO IT HEREBY IN
 RELATION TO THE ISSUANCE, AMENDMENT AND CANCELLATION  OF  LICENSES,  THE
 CONDUCT OF INVESTIGATIONS AND HEARINGS, THE SUPERVISION OF THE OPERATION
 OF THE GAMES AND THE COLLECTION AND TRANSMISSION OF FEES.
   §  1541.  POWERS  AND  DUTIES OF MAYORS OR MANAGERS OF CERTAIN CITIES.
 NOTWITHSTANDING ANY OTHER PROVISION OF THIS TITLE, WHENEVER THE  CHARTER
 OF  ANY  CITY,  OR  ANY SPECIAL OR LOCAL LAW, PROVIDES THAT THE MAYOR OR
 MANAGER OF SUCH CITY IS THE CHIEF LAW ENFORCEMENT OFFICER THEREOF,  THEN
 AND IN THAT EVENT SUCH MAYOR OR MANAGER, AS THE CASE MAY BE, SHALL HAVE,
 EXERCISE  AND  PERFORM ALL THE POWERS AND DUTIES OTHERWISE PRESCRIBED BY
 THIS TITLE TO BE EXERCISED AND PERFORMED BY THE GOVERNING BODY  OF  SUCH
 CITY  EXCEPT  THOSE  PRESCRIBED BY SECTION FIFTEEN HUNDRED TWENTY-TWO OF
 THIS TITLE, AND IN ANY SUCH CASE, THE TERM "GOVERNING BODY OF A  MUNICI-
 PALITY"  AS  USED  IN THIS TITLE SHALL BE DEEMED TO MEAN AND INCLUDE THE
 MAYOR OR MANAGER OF ANY SUCH CITY.
                                  TITLE 4
          LOCAL OPTION FOR CONDUCT OF GAMES OF CHANCE BY CERTAIN
                               ORGANIZATIONS
 SECTION 1550. SHORT TITLE; PURPOSE OF TITLE.
         1551. LOCAL OPTION.
         1552. LOCAL LAWS AND ORDINANCES.
         1553. POWERS AND DUTIES OF THE COMMISSION.
         1554. RESTRICTIONS UPON CONDUCT OF GAMES OF CHANCE.
         1555. AUTHORIZED SUPPLIER OF GAMES OF CHANCE EQUIPMENT.
         1556. DECLARATION  OF  STATE'S  EXEMPTION  FROM   OPERATION   OF
                 PROVISIONS OF 15 U.S.C. § 1172.
         1557. LEGAL SHIPMENTS OF GAMING DEVICES INTO NEW YORK STATE.
         1558. APPLICATION FOR LICENSE.
         1559. RAFFLES; LICENSE NOT REQUIRED.

 S. 2009                            128                           A. 3009
 
         1560. INVESTIGATION;  MATTERS  TO  BE  DETERMINED;  ISSUANCE  OF
                 LICENSE; FEES; DURATION OF LICENSE.
         1561. HEARING; AMENDMENT OF LICENSE.
         1562. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE.
         1563. CONTROL  AND  SUPERVISION;  SUSPENSION  OF  IDENTIFICATION
                 NUMBERS AND LICENSES; INSPECTIONS OF PREMISES.
         1564. FREQUENCY OF GAMES.
         1565. PERSONS  OPERATING  GAMES;  EQUIPMENT;  EXPENSES;  COMPEN-
                 SATION.
         1566. CHARGE  FOR ADMISSION AND PARTICIPATION; AMOUNT OF PRIZES;
                 AWARD OF PRIZES.
         1567. STATEMENT OF RECEIPTS  AND  EXPENSES;  ADDITIONAL  LICENSE
                 FEES.
         1568. EXAMINATION  OF BOOKS AND RECORDS; EXAMINATION OF OFFICERS
                 AND EMPLOYEES; DISCLOSURE OF INFORMATION.
         1569. APPEALS FOR THE DECISION OF A MUNICIPAL OFFICER, CLERK  OR
                 DEPARTMENT TO THE COMMISSION.
         1570. EXEMPTION FROM PROSECUTION.
         1571. OFFENSES;  FORFEITURE  OF  LICENSE; INELIGIBILITY TO APPLY
                 FOR LICENSE.
         1572. UNLAWFUL GAMES OF CHANCE.
         1573. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS.
         1574. AMENDMENT AND REPEAL OF LOCAL LAWS AND ORDINANCES.
         1575. MANUFACTURERS OF BELL JARS; REPORTS AND RECORDS.
         1576. DISTRIBUTOR OF BELL JARS; REPORTS AND RECORDS.
         1577. TRANSFER RESTRICTIONS.
         1578. BELL JARS COMPLIANCE AND ENFORCEMENT.
   § 1550. SHORT TITLE; PURPOSE OF TITLE. THIS TITLE SHALL BE  KNOWN  AND
 MAY BE CITED AS THE GAMES OF CHANCE LICENSING LAW. THE LEGISLATURE HERE-
 BY  DECLARES  THAT  THE  RAISING OF FUNDS FOR THE PROMOTION OF BONA FIDE
 CHARITABLE, EDUCATIONAL, SCIENTIFIC,  HEALTH,  RELIGIOUS  AND  PATRIOTIC
 CAUSES AND UNDERTAKINGS, WHERE THE BENEFICIARIES ARE UNDETERMINED, IS IN
 THE  PUBLIC  INTEREST.  THE  LEGISLATURE HEREBY FINDS THAT, AS CONDUCTED
 PRIOR TO THE EFFECTIVE DATE OF THIS TITLE,  GAMES  OF  CHANCE  WERE  THE
 SUBJECT  OF EXPLOITATION BY PROFESSIONAL GAMBLERS, PROMOTERS AND COMMER-
 CIAL INTERESTS. IT IS HEREBY DECLARED TO BE THE POLICY OF  THE  LEGISLA-
 TURE  THAT  ALL  PHASES  OF THE SUPERVISION, LICENSING AND REGULATION OF
 GAMES OF CHANCE AND OF THE CONDUCT OF GAMES OF CHANCE SHOULD BE  CLOSELY
 CONTROLLED  AND  THAT THE LAWS AND REGULATIONS PERTAINING THERETO SHOULD
 BE STRICTLY CONSTRUED AND RIGIDLY ENFORCED; THAT THE CONDUCT OF THE GAME
 AND ALL  ATTENDANT  ACTIVITIES  SHOULD  BE  SO  REGULATED  AND  ADEQUATE
 CONTROLS SO INSTITUTED AS TO DISCOURAGE COMMERCIALIZATION OF GAMBLING IN
 ALL  ITS FORMS, INCLUDING THE RENTAL OF COMMERCIAL PREMISES FOR GAMES OF
 CHANCE, AND TO ENSURE A MAXIMUM AVAILABILITY  OF  THE  NET  PROCEEDS  OF
 GAMES  OF  CHANCE  EXCLUSIVELY  FOR APPLICATION TO THE WORTHY CAUSES AND
 UNDERTAKINGS SPECIFIED HEREIN; THAT  THE  ONLY  JUSTIFICATION  FOR  THIS
 TITLE  IS TO FOSTER AND SUPPORT SUCH WORTHY CAUSES AND UNDERTAKINGS, AND
 THAT THE MANDATE OF SUBDIVISION TWO OF SECTION NINE OF  ARTICLE  ONE  OF
 THE STATE CONSTITUTION, AS AMENDED, SHOULD BE CARRIED OUT BY RIGID REGU-
 LATIONS  TO  PREVENT  COMMERCIALIZED  GAMBLING, PREVENT PARTICIPATION BY
 CRIMINAL AND OTHER UNDESIRABLE ELEMENTS AND  PREVENT  THE  DIVERSION  OF
 FUNDS FROM THE PURPOSES HEREIN AUTHORIZED.
   §  1551.  LOCAL  OPTION.  SUBJECT TO THE PROVISIONS OF THIS TITLE, AND
 PURSUANT TO THE DIRECTION CONTAINED IN SUBDIVISION TWO OF  SECTION  NINE
 OF  ARTICLE  ONE OF THE STATE CONSTITUTION, THE LEGISLATURE HEREBY GIVES
 AND GRANTS TO EVERY MUNICIPALITY  THE  RIGHT,  POWER  AND  AUTHORITY  TO

 S. 2009                            129                           A. 3009
 
 AUTHORIZE  THE  CONDUCT  OF  GAMES OF CHANCE BY AUTHORIZED ORGANIZATIONS
 WITHIN THE TERRITORIAL LIMITS OF SUCH MUNICIPALITY. A LOCAL LAW OR ORDI-
 NANCE ADOPTED BY A TOWN SHALL BE OPERATIVE IN ANY VILLAGE OR WITHIN  ANY
 PART  OF ANY VILLAGE LOCATED WITHIN SUCH TOWN IF, AFTER ADOPTION OF SUCH
 LOCAL LAW OR ORDINANCE, THE BOARD OF TRUSTEES OF SUCH VILLAGE  ADOPTS  A
 LOCAL  LAW  OR RESOLUTION SUBJECT TO A PERMISSIVE REFERENDUM AS PROVIDED
 IN ARTICLE NINE OF THE VILLAGE LAW AUTHORIZING THE ISSUANCE OF  LICENSES
 BY  THE  TOWN FOR GAMES OF CHANCE WITHIN SUCH VILLAGE. SUCH LOCAL LAW OR
 RESOLUTION MAY BE REPEALED ONLY BY A LOCAL LAW OR RESOLUTION THAT  SHALL
 ALSO  BE  SUBJECT TO A PERMISSIVE REFERENDUM, OR BY ENACTMENT OF A LOCAL
 LAW AUTHORIZING GAMES OF CHANCE AS PROVIDED IN SECTION  FIFTEEN  HUNDRED
 FIFTY-TWO OF THIS TITLE.
   §  1552.  LOCAL  LAWS  AND  ORDINANCES. 1. THE COMMON COUNCIL OR OTHER
 LOCAL LEGISLATIVE BODY OF ANY MUNICIPALITY MAY, EITHER BY LOCAL  LAW  OR
 ORDINANCE,  PROVIDE THAT IT SHALL BE LAWFUL FOR ANY AUTHORIZED ORGANIZA-
 TION, UPON OBTAINING A LICENSE  THEREFOR  AS  HEREINAFTER  PROVIDED,  TO
 CONDUCT  GAMES  OF  CHANCE WITHIN THE TERRITORIAL LIMITS OF SUCH MUNICI-
 PALITY, SUBJECT TO THE PROVISIONS OF SUCH LOCAL LAW  OR  ORDINANCE,  THE
 PROVISIONS OF THIS TITLE AND THE PROVISIONS SET FORTH BY THE COMMISSION.
   2.  NO SUCH LOCAL LAW OR ORDINANCE SHALL BECOME OPERATIVE OR EFFECTIVE
 UNLESS AND UNTIL IT SHALL HAVE BEEN APPROVED BY A MAJORITY OF THE  ELEC-
 TORS  VOTING ON A PROPOSITION SUBMITTED AT A GENERAL OR SPECIAL ELECTION
 HELD WITHIN SUCH MUNICIPALITY WHO ARE QUALIFIED TO VOTE FOR OFFICERS  OF
 SUCH MUNICIPALITY.
   3.  THE  TIME,  METHOD  AND  MANNER  OF  SUBMISSION,  PREPARATION  AND
 PROVISION OF BALLOTS AND BALLOT LABELS, BALLOTING BY VOTING MACHINE  AND
 CONDUCTING THE ELECTION, CANVASSING THE RESULT AND MAKING AND FILING THE
 RETURNS  AND ALL OTHER PROCEDURE WITH REFERENCE TO THE SUBMISSION OF AND
 ACTION UPON ANY PROPOSITION FOR THE APPROVAL OF ANY SUCH  LOCAL  LAW  OR
 ORDINANCE  SHALL  BE THE SAME AS IN THE CASE OF ANY OTHER PROPOSITION TO
 BE SUBMITTED TO THE ELECTORS  OF  SUCH  MUNICIPALITY  AT  A  GENERAL  OR
 SPECIAL ELECTION IN SUCH MUNICIPALITY, AS PROVIDED BY LAW.
   § 1553. POWERS AND DUTIES OF THE COMMISSION. THE COMMISSION SHALL HAVE
 THE POWER AND IT SHALL BE THE DUTY OF THE COMMISSION TO:
   1.  SUPERVISE  THE ADMINISTRATION OF THE GAMES OF CHANCE LICENSING LAW
 AND TO ADOPT, AMEND AND REPEAL RULES AND REGULATIONS GOVERNING THE ISSU-
 ANCE AND AMENDMENT OF LICENSES THEREUNDER AND THE  CONDUCTING  OF  GAMES
 UNDER  SUCH  LICENSES,  WHICH RULES AND REGULATIONS SHALL HAVE THE FORCE
 AND EFFECT OF LAW AND SHALL BE BINDING UPON ALL  MUNICIPALITIES  ISSUING
 LICENSES,  AND  UPON  LICENSEES  OF THE COMMISSION, TO THE END THAT SUCH
 LICENSES SHALL BE ISSUED TO QUALIFIED  LICENSEES  ONLY,  AND  THAT  SAID
 GAMES SHALL BE FAIRLY AND PROPERLY CONDUCTED FOR THE PURPOSES AND IN THE
 MANNER  OF  THE  SAID  GAMES  OF  CHANCE LICENSING LAW PRESCRIBED AND TO
 PREVENT THE GAMES OF CHANCE THEREBY  AUTHORIZED  TO  BE  CONDUCTED  FROM
 BEING  CONDUCTED  FOR  COMMERCIAL  PURPOSES OR PURPOSES OTHER THAN THOSE
 THEREIN AUTHORIZED, PARTICIPATED IN BY  CRIMINAL  OR  OTHER  UNDESIRABLE
 ELEMENTS  AND  THE  FUNDS DERIVED FROM THE GAMES BEING DIVERTED FROM THE
 PURPOSES AUTHORIZED, AND TO PROVIDE UNIFORMITY IN THE ADMINISTRATION  OF
 SAID  LAW  THROUGHOUT THE STATE, THE COMMISSION SHALL PRESCRIBE FORMS OF
 APPLICATION FOR LICENSES, LICENSEES, AMENDMENT OF LICENSES,  REPORTS  OF
 THE CONDUCT OF GAMES AND OTHER MATTERS INCIDENT TO THE ADMINISTRATION OF
 SUCH LAW.
   2.  CONDUCT,  ANYWHERE  IN  THE  STATE, INVESTIGATIONS OF THE ADMINIS-
 TRATION, ENFORCEMENT AND POTENTIAL OR ACTUAL VIOLATIONS OF THE GAMES  OF
 CHANCE LICENSING LAW AND OF THE RULES AND REGULATIONS OF THE COMMISSION.

 S. 2009                            130                           A. 3009

   3. REVIEW ALL DETERMINATIONS AND ACTIONS OF THE CLERK OR DEPARTMENT IN
 ISSUING  AN INITIAL LICENSE AND IT MAY REVIEW THE ISSUANCE OF SUBSEQUENT
 LICENSES AND, AFTER HEARING, REVOKE THOSE LICENSES THAT DO  NOT  IN  ALL
 RESPECTS  MEET  THE  REQUIREMENTS  OF THIS TITLE AND THE RULES AND REGU-
 LATIONS OF THE COMMISSION.
   4.  SUSPEND  OR  REVOKE A LICENSE, AFTER HEARING, FOR ANY VIOLATION OF
 THE PROVISIONS OF THIS TITLE OR THE RULES AND REGULATIONS OF THE COMMIS-
 SION.
   5. HEAR APPEALS FROM THE  DETERMINATIONS  AND  ACTION  OF  THE  CLERK,
 DEPARTMENT OR MUNICIPAL OFFICER IN CONNECTION WITH THE REFUSING TO ISSUE
 LICENSES,  THE  SUSPENSION AND REVOCATION OF LICENSES AND THE IMPOSITION
 OF FINES IN THE MANNER PRESCRIBED BY LAW AND  THE  ACTION  AND  DETERMI-
 NATION  OF THE COMMISSION UPON ANY SUCH APPEAL SHALL BE BINDING UPON THE
 CLERK, DEPARTMENT OR MUNICIPAL OFFICER AND ALL PARTIES THERETO.
   6. CARRY ON CONTINUOUS STUDY OF THE OPERATION OF THE GAMES  OF  CHANCE
 LICENSING  LAW TO ASCERTAIN FROM TIME TO TIME DEFECTS THEREIN JEOPARDIZ-
 ING OR THREATENING TO JEOPARDIZE THE PURPOSES  OF  THIS  TITLE,  AND  TO
 FORMULATE  AND  RECOMMEND  CHANGES  IN SUCH LAW AND IN OTHER LAWS OF THE
 STATE THAT THE COMMISSION MAY DETERMINE TO BE NECESSARY FOR THE REALIZA-
 TION OF SUCH PURPOSES, AND TO THE SAME END TO MAKE A CONTINUOUS STUDY OF
 THE OPERATION AND ADMINISTRATION OF SIMILAR LAWS THAT MAY BE  IN  EFFECT
 IN OTHER STATES OF THE UNITED STATES.
   7.  SUPERVISE THE DISPOSITION OF ALL FUNDS DERIVED FROM THE CONDUCT OF
 GAMES OF CHANCE BY AUTHORIZED ORGANIZATIONS NOT  CURRENTLY  LICENSED  TO
 CONDUCT SUCH GAMES.
   8. ISSUE AN IDENTIFICATION NUMBER TO AN APPLICANT AUTHORIZED ORGANIZA-
 TION  IF  THE  COMMISSION  DETERMINES  THAT  THE APPLICANT SATISFIES THE
 REQUIREMENTS OF THE GAMES OF CHANCE LICENSING  LAW  AND  THE  RULES  AND
 REGULATIONS OF THE COMMISSION.
   9.  APPROVE  AND ESTABLISH A STANDARD SET OF GAMES OF CHANCE EQUIPMENT
 AND BY RULES AND REGULATIONS PRESCRIBE THE MANNER IN WHICH  SUCH  EQUIP-
 MENT  IS  TO BE REPRODUCED AND DISTRIBUTED TO LICENSED AUTHORIZED ORGAN-
 IZATIONS. THE SALE OR DISTRIBUTION TO A LICENSED AUTHORIZED ORGANIZATION
 OF ANY EQUIPMENT OTHER THAN THAT CONTAINED IN THE STANDARD SET OF  GAMES
 OF CHANCE EQUIPMENT SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
   §  1554.  RESTRICTIONS UPON CONDUCT OF GAMES OF CHANCE. THE CONDUCT OF
 GAMES OF CHANCE AUTHORIZED BY LOCAL LAW OR ORDINANCE SHALL BE SUBJECT TO
 THE FOLLOWING RESTRICTIONS WITHOUT REGARD TO  WHETHER  THE  RESTRICTIONS
 ARE  CONTAINED  IN SUCH LOCAL LAW OR ORDINANCE, BUT NOTHING HEREIN SHALL
 BE CONSTRUED TO PREVENT THE INCLUSION WITHIN SUCH LOCAL LAW OR ORDINANCE
 OF OTHER PROVISIONS IMPOSING ADDITIONAL RESTRICTIONS UPON THE CONDUCT OF
 SUCH GAMES:
   1. NO PERSON, FIRM, PARTNERSHIP, CORPORATION  OR  ORGANIZATION,  OTHER
 THAN A LICENSEE UNDER THE PROVISIONS OF SECTION FIFTEEN HUNDRED SIXTY OF
 THIS TITLE, SHALL
   (A) CONDUCT SUCH GAME; OR
   (B)  LEASE  OR OTHERWISE MAKE AVAILABLE FOR CONDUCTING GAMES OF CHANCE
 PREMISES FOR ANY CONSIDERATION WHATSOEVER, DIRECT OR  INDIRECT,  WITHOUT
 OBTAINING THE PRIOR WRITTEN APPROVAL OF THE COMMISSION.
   2. NO GAME OF CHANCE SHALL BE HELD, OPERATED OR CONDUCTED ON OR WITHIN
 ANY  LEASED PREMISES IF RENTAL UNDER SUCH LEASE IS TO BE PAID, WHOLLY OR
 PARTLY, ON THE BASIS OF A PERCENTAGE OF  THE  RECEIPTS  OR  NET  PROFITS
 DERIVED FROM THE OPERATION OF SUCH GAME.
   3.  NO  AUTHORIZED  ORGANIZATION LICENSED UNDER THE PROVISIONS OF THIS
 TITLE SHALL PURCHASE,  LEASE,  OR  RECEIVE  ANY  SUPPLIES  OR  EQUIPMENT
 SPECIFICALLY  DESIGNED  OR  ADAPTED  FOR  USE IN THE CONDUCT OF GAMES OF

 S. 2009                            131                           A. 3009
 
 CHANCE FROM OTHER THAN A SUPPLIER LICENSED BY  THE  COMMISSION  OR  FROM
 ANOTHER  AUTHORIZED  ORGANIZATION.   LEASE TERMS AND CONDITIONS SHALL BE
 SUBJECT TO RULES AND REGULATIONS OF THE COMMISSION.  THE  PROVISIONS  OF
 THIS  TITLE  SHALL NOT BE CONSTRUED TO AUTHORIZE OR PERMIT AN AUTHORIZED
 ORGANIZATION TO ENGAGE IN THE  BUSINESS  OF  LEASING  GAMES  OF  CHANCE,
 SUPPLIES  OR EQUIPMENT. NO ORGANIZATION SHALL PURCHASE BELL JAR TICKETS,
 OR DEALS OF BELL JAR TICKETS, FROM  ANY  OTHER  PERSON  OR  ORGANIZATION
 OTHER  THAN  THOSE SPECIFICALLY AUTHORIZED UNDER SECTION FIFTEEN HUNDRED
 SEVENTY-SIX OF THIS TITLE.
   4. THE ENTIRE NET PROCEEDS OF ANY GAME  OF  CHANCE  SHALL  BE  DEVOTED
 EXCLUSIVELY  TO  THE  LAWFUL  PURPOSES  OF THE ORGANIZATION PERMITTED TO
 CONDUCT THE SAME AND THE NET PROCEEDS OF ANY  RENTAL  DERIVED  THEREFROM
 SHALL  BE  DEVOTED  EXCLUSIVELY TO THE LAWFUL PURPOSES OF THE AUTHORIZED
 GAMES OF CHANCE LESSOR.
   5. (A) NO SINGLE PRIZE AWARDED BY GAMES OF CHANCE  OTHER  THAN  RAFFLE
 SHALL  EXCEED THE SUM OR VALUE OF THREE HUNDRED DOLLARS, EXCEPT THAT FOR
 MERCHANDISE WHEELS, NO SINGLE PRIZE SHALL EXCEED THE SUM OR VALUE OF TWO
 HUNDRED FIFTY DOLLARS, AND FOR BELL JAR, NO SINGLE  PRIZE  SHALL  EXCEED
 THE SUM OR VALUE OF ONE THOUSAND DOLLARS.
   (B) NO SINGLE PRIZE AWARDED BY RAFFLE SHALL EXCEED THE SUM OR VALUE OF
 THREE HUNDRED THOUSAND DOLLARS.
   (C)  NO  SINGLE WAGER SHALL EXCEED SIX DOLLARS AND FOR BELL JARS, COIN
 BOARDS OR MERCHANDISE BOARDS, NO SINGLE PRIZE SHALL EXCEED ONE  THOUSAND
 DOLLARS,  PROVIDED, HOWEVER, THAT SUCH LIMITATION SHALL NOT APPLY TO THE
 AMOUNT OF MONEY OR VALUE PAID BY THE PARTICIPANT IN A RAFFLE  IN  RETURN
 FOR A TICKET OR OTHER RECEIPT.
   (D) FOR COIN BOARDS AND MERCHANDISE BOARDS, THE VALUE OF A PRIZE SHALL
 BE  DETERMINED  BY THE COST OF SUCH PRIZE TO THE AUTHORIZED ORGANIZATION
 OR, IF DONATED, THE FAIR MARKET VALUE OF SUCH PRIZE.
   6. (A) NO AUTHORIZED ORGANIZATION  SHALL  AWARD  A  SERIES  OF  PRIZES
 CONSISTING  OF  CASH OR OF MERCHANDISE WITH AN AGGREGATE VALUE IN EXCESS
 OF:
   (1) TEN THOUSAND DOLLARS DURING THE SUCCESSIVE OPERATIONS OF  ANY  ONE
 MERCHANDISE WHEEL; AND
   (2)  SIX THOUSAND DOLLARS DURING THE SUCCESSIVE OPERATIONS OF ANY BELL
 JAR, COIN BOARD OR MERCHANDISE BOARD.
   (B) NO SERIES OF PRIZES AWARDED BY  RAFFLE  SHALL  HAVE  AN  AGGREGATE
 VALUE IN EXCESS OF FIVE HUNDRED THOUSAND DOLLARS.
   (C) FOR COIN BOARDS AND MERCHANDISE BOARDS, THE VALUE OF A PRIZE SHALL
 BE DETERMINED BY ITS COST TO THE AUTHORIZED ORGANIZATION OR, IF DONATED,
 ITS FAIR MARKET VALUE.
   7.  IN  ADDITION TO MERCHANDISE WHEELS, RAFFLES AND BELL JARS, NO MORE
 THAN FIVE OTHER SINGLE TYPES OF  GAMES  OF  CHANCE  SHALL  BE  CONDUCTED
 DURING ANY ONE LICENSE PERIOD.
   8.  (A) EXCEPT FOR MERCHANDISE WHEELS AND RAFFLES, NO SERIES OF PRIZES
 ON ANY ONE OCCASION SHALL AGGREGATE MORE THAN FOUR HUNDRED DOLLARS  WHEN
 THE LICENSED AUTHORIZED ORGANIZATION CONDUCTS FIVE SINGLE TYPES OF GAMES
 OF  CHANCE DURING ANY ONE LICENSE PERIOD. EXCEPT FOR MERCHANDISE WHEELS,
 RAFFLES AND BELL JARS, NO SERIES OF PRIZES ON  ANY  ONE  OCCASION  SHALL
 AGGREGATE  MORE  THAN  FIVE HUNDRED DOLLARS WHEN THE LICENSED AUTHORIZED
 ORGANIZATION CONDUCTS FEWER THAN FIVE SINGLE TYPES OF GAMES  OF  CHANCE,
 EXCLUSIVE  OF  MERCHANDISE WHEELS, RAFFLES AND BELL JARS, DURING ANY ONE
 LICENSE PERIOD.
   (B) NO AUTHORIZED ORGANIZATION SHALL AWARD BY RAFFLE  PRIZES  WITH  AN
 AGGREGATE  VALUE  IN  EXCESS  OF  THREE  MILLION  DOLLARS DURING ANY ONE
 LICENSE PERIOD.

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   9. EXCEPT FOR THE LIMITATIONS ON THE SUM OR VALUE  FOR  SINGLE  PRIZES
 AND  SERIES  OF PRIZES, NO LIMIT SHALL BE IMPOSED ON THE SUM OR VALUE OF
 PRIZES AWARDED TO ANY ONE PARTICIPANT DURING ANY OCCASION OR ANY LICENSE
 PERIOD.
   10. (A) NO PERSON EXCEPT A BONA FIDE MEMBER OF THE LICENSED AUTHORIZED
 ORGANIZATION SHALL PARTICIPATE IN THE MANAGEMENT OF SUCH GAMES.
   (B)  NO  PERSON  EXCEPT  A BONA FIDE MEMBER OF THE LICENSED AUTHORIZED
 ORGANIZATION, ITS AUXILIARY OR AFFILIATED  ORGANIZATION,  SHALL  PARTIC-
 IPATE  IN  THE  OPERATION  OF SUCH GAME, AS SET FORTH IN SECTION FIFTEEN
 HUNDRED SIXTY-FIVE OF THIS TITLE.
   11. NO PERSON SHALL RECEIVE ANY REMUNERATION FOR PARTICIPATING IN  THE
 MANAGEMENT OR OPERATION OF ANY SUCH GAME.
   12.  NO  AUTHORIZED  ORGANIZATION  SHALL  EXTEND CREDIT TO A PERSON TO
 PARTICIPATE IN PLAYING A GAME OF CHANCE.
   13. (A) NO GAME OF CHANCE, OTHER THAN  A  RAFFLE  THAT  COMPLIES  WITH
 PARAGRAPH  (B) OF THIS SUBDIVISION, SHALL BE CONDUCTED ON OTHER THAN THE
 PREMISES OF AN AUTHORIZED ORGANIZATION OR AN AUTHORIZED GAMES OF  CHANCE
 LESSOR.
   (B)  RAFFLE  TICKETS MAY BE SOLD TO THE PUBLIC OUTSIDE THE PREMISES OF
 AN AUTHORIZED ORGANIZATION OR AN AUTHORIZED GAMES OF  CHANCE  LESSOR  IF
 SUCH SALES OCCUR IN A MUNICIPALITY THAT:
   (1) HAS PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN ACCORDANCE WITH
 SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
 TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE;
   (2)  IS  LOCATED  IN  THE COUNTY IN WHICH THE MUNICIPALITY ISSUING THE
 RAFFLE LICENSE IS LOCATED OR IN A COUNTY THAT IS CONTIGUOUS TO THE COUN-
 TY IN WHICH THE MUNICIPALITY ISSUING THE RAFFLE LICENSE IS LOCATED; AND
   (3) HAS NOT OBJECTED TO SUCH SALES AFTER THE COMMISSION  GIVES  NOTICE
 TO  SUCH  MUNICIPALITY  OF  AN AUTHORIZED ORGANIZATION'S REQUEST TO SELL
 SUCH RAFFLE TICKETS IN SUCH MUNICIPALITY.
   (C) THE COMMISSION MAY BY REGULATION PRESCRIBE THE ADVANCE  NOTICE  AN
 AUTHORIZED  ORGANIZATION MUST PROVIDE TO THE COMMISSION IN ORDER TO TAKE
 ADVANTAGE OF THE PROVISIONS OF PARAGRAPH (B) OF THIS SUBDIVISION,  FORMS
 IN  WHICH  SUCH  A  REQUEST SHALL BE MADE AND THE TIME PERIOD IN WHICH A
 MUNICIPALITY MUST COMMUNICATE AN OBJECTION TO THE COMMISSION.
   (D) NO SALE OF RAFFLE TICKETS SHALL BE  MADE  MORE  THAN  ONE  HUNDRED
 EIGHTY  DAYS  PRIOR  TO THE DATE SCHEDULED FOR THE OCCASION AT WHICH THE
 RAFFLE WILL BE CONDUCTED.
   (E) THE WINNER OF ANY SINGLE PRIZE IN A RAFFLE SHALL NOT  BE  REQUIRED
 TO BE PRESENT AT THE TIME SUCH RAFFLE IS CONDUCTED.
   14.  NO  PERSON  LICENSED  TO MANUFACTURE, DISTRIBUTE OR SELL GAMES OF
 CHANCE SUPPLIES OR EQUIPMENT, OR THEIR AGENTS,  SHALL  CONDUCT,  PARTIC-
 IPATE  IN,  OR  ASSIST IN THE CONDUCT OF GAMES OF CHANCE. NOTHING HEREIN
 SHALL PROHIBIT A LICENSED DISTRIBUTOR FROM SELLING, OFFERING FOR SALE OR
 EXPLAINING A PRODUCT TO AN  AUTHORIZED  ORGANIZATION  OR  INSTALLING  OR
 SERVICING GAMES OF CHANCE EQUIPMENT UPON THE PREMISES OF GAMES OF CHANCE
 LICENSEES.
   15.  THE UNAUTHORIZED CONDUCT OF A GAME OF CHANCE SHALL CONSTITUTE AND
 BE PUNISHABLE AS A MISDEMEANOR.
   16. NO COINS OR MERCHANDISE FROM A COIN  BOARD  OR  MERCHANDISE  BOARD
 SHALL  BE  REDEEMABLE OR CONVERTIBLE INTO CASH DIRECTLY OR INDIRECTLY BY
 THE AUTHORIZED ORGANIZATION.
   17. NO GAME OF CHANCE SHALL INVOLVE WAGERING OF MONEY  BY  ONE  PLAYER
 AGAINST ANOTHER PLAYER.
   §  1555.  AUTHORIZED  SUPPLIER  OF  GAMES  OF  CHANCE EQUIPMENT. 1. NO
 PERSON, FIRM, PARTNERSHIP, CORPORATION OR  ORGANIZATION  SHALL  SELL  OR

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 DISTRIBUTE  SUPPLIES  OR  EQUIPMENT SPECIFICALLY DESIGNED OR ADAPTED FOR
 USE IN CONDUCT OF GAMES  OF  CHANCE  WITHOUT  HAVING  FIRST  OBTAINED  A
 LICENSE  THEREFOR UPON WRITTEN APPLICATION MADE, VERIFIED AND FILED WITH
 THE  COMMISSION  IN  THE FORM PRESCRIBED BY THE RULES AND REGULATIONS OF
 THE COMMISSION. AS A PART OF THE COMMISSION'S  DETERMINATION  CONCERNING
 THE APPLICANT'S SUITABILITY FOR LICENSING AS A GAMES OF CHANCE SUPPLIER,
 THE  COMMISSION SHALL REQUIRE THE APPLICANT TO FURNISH TO THE COMMISSION
 TWO SETS OF FINGERPRINTS. SUCH FINGERPRINTS SHALL BE  SUBMITTED  TO  THE
 DIVISION  OF  CRIMINAL  JUSTICE  SERVICES  FOR  A STATE CRIMINAL HISTORY
 RECORD CHECK, AS DEFINED IN SUBDIVISION ONE OF  SECTION  THREE  THOUSAND
 THIRTY-FIVE  OF  THE  EDUCATION LAW, AND MAY BE SUBMITTED TO THE FEDERAL
 BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL  HISTORY  RECORD  CHECK.
 MANUFACTURERS  OF BELL JAR TICKETS SHALL BE CONSIDERED SUPPLIERS OF SUCH
 EQUIPMENT. IN EACH SUCH APPLICATION FOR A  LICENSE  UNDER  THIS  SECTION
 SHALL  BE  STATED  THE  NAME AND ADDRESS OF THE APPLICANT; THE NAMES AND
 ADDRESSES OF ITS OFFICERS,  DIRECTORS,  SHAREHOLDERS  OR  PARTNERS;  THE
 AMOUNT  OF  GROSS  RECEIPTS  REALIZED ON THE SALE AND RENTAL OF GAMES OF
 CHANCE SUPPLIES AND EQUIPMENT TO DULY LICENSED AUTHORIZED  ORGANIZATIONS
 DURING THE LAST PRECEDING CALENDAR OR FISCAL YEAR, AND SUCH OTHER INFOR-
 MATION AS SHALL BE PRESCRIBED BY SUCH RULES AND REGULATIONS. THE FEE FOR
 SUCH LICENSE SHALL BE A SUM EQUAL TO AN AMOUNT ESTABLISHED BY COMMISSION
 REGULATION  PLUS  AN  AMOUNT EQUAL TO TWO PERCENT OF THE GROSS SALES AND
 RENTALS, IF ANY, OF GAMES OF CHANCE EQUIPMENT AND SUPPLIES TO AUTHORIZED
 ORGANIZATIONS OR AUTHORIZED GAMES OF CHANCE  LESSORS  BY  THE  APPLICANT
 DURING  THE  PRECEDING  CALENDAR  YEAR,  OR FISCAL YEAR IF THE APPLICANT
 MAINTAINS HIS ACCOUNTS ON A FISCAL  YEAR  BASIS.    NO  LICENSE  GRANTED
 PURSUANT  TO  THE  PROVISIONS  OF  THIS SECTION SHALL BE EFFECTIVE FOR A
 PERIOD OF MORE THAN ONE YEAR.
   2. THE FOLLOWING SHALL BE INELIGIBLE FOR SUCH A LICENSE:
   (A) A PERSON CONVICTED OF A CRIME IF THERE IS  A  DIRECT  RELATIONSHIP
 BETWEEN  ONE OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY
 OF CHARITABLE GAMING, CONSIDERING THE FACTORS SET FORTH IN SECTION SEVEN
 HUNDRED FIFTY-THREE OF THE CORRECTION LAW;
   (B) A PERSON WHO IS OR HAS BEEN A  PROFESSIONAL  GAMBLER  OR  GAMBLING
 PROMOTER OR WHO FOR OTHER REASONS IS NOT OF GOOD MORAL CHARACTER;
   (C) A PUBLIC OFFICER OR EMPLOYEE;
   (D) AN AUTHORIZED GAMES OF CHANCE LESSOR; OR
   (E)  A  FIRM  OR CORPORATION IN WHICH A PERSON DEFINED IN SUBPARAGRAPH
 (A), (B), (C) OR (D) OF THIS SUBDIVISION HAS GREATER THAN A TEN  PERCENT
 PROPRIETARY,  EQUITABLE  OR CREDIT INTEREST OR IN WHICH SUCH A PERSON IS
 ACTIVE OR EMPLOYED.
   3. THE COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE  EXAMINED
 THE BOOKS AND RECORDS OF ANY APPLICANT FOR A LICENSE UNDER THIS SECTION.
 ANY  INFORMATION SO RECEIVED SHALL NOT BE DISCLOSED EXCEPT SO FAR AS MAY
 BE NECESSARY FOR THE PURPOSE OF CARRYING  OUT  THE  PROVISIONS  OF  THIS
 TITLE.
   4.  ANY  SOLICITATION  OF AN ORGANIZATION LICENSED TO CONDUCT GAMES OF
 CHANCE, TO PURCHASE OR INDUCE THE PURCHASE OF GAMES OF  CHANCE  SUPPLIES
 AND  EQUIPMENT,  OTHER THAN BY A PERSON LICENSED OR OTHERWISE AUTHORIZED
 PURSUANT TO THIS SECTION, SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
   5. ANY PERSON WHO WILLFULLY MAKES ANY MATERIAL FALSE STATEMENT IN  ANY
 APPLICATION  FOR A LICENSE AUTHORIZED TO BE ISSUED UNDER THIS SECTION OR
 WHO WILLFULLY VIOLATES ANY OF THE PROVISIONS OF THIS SECTION OR  OF  ANY
 LICENSE  ISSUED HEREUNDER SHALL BE GUILTY OF A MISDEMEANOR AND, IN ADDI-
 TION TO THE PENALTIES IN SUCH CASE MADE AND PROVIDED, SHALL FORFEIT  ANY

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 LICENSE ISSUED TO HIM, HER OR IT UNDER THIS SECTION AND BE INELIGIBLE TO
 APPLY FOR A LICENSE UNDER THIS SECTION FOR ONE YEAR THEREAFTER.
   6.  AT  THE  END  OF SUCH PERIOD SPECIFIED IN THE LICENSE, A RECAPITU-
 LATION SHALL BE MADE AS BETWEEN  THE  LICENSEE  AND  THE  COMMISSION  IN
 RESPECT  OF  THE  GROSS  SALES AND RENTALS ACTUALLY RECORDED DURING THAT
 PERIOD AND THE FEE PAID THEREFOR, AND  ANY  DEFICIENCY  OF  FEE  THEREBY
 SHOWN  TO  BE  DUE  SHALL  BE PAID BY THE LICENSEE AND ANY EXCESS OF FEE
 THEREBY SHOWN TO HAVE BEEN PAID SHALL BE CREDITED TO  SAID  LICENSEE  IN
 SUCH MANNER AS THE COMMISSION BY RULES AND REGULATIONS SHALL PRESCRIBE.
   §  1556. DECLARATION OF STATE'S EXEMPTION FROM OPERATION OF PROVISIONS
 OF 15 U.S.C. § 1172. PURSUANT TO SECTION TWO OF AN ACT  OF  CONGRESS  OF
 THE  UNITED STATES ENTITLED "AN ACT TO PROHIBIT TRANSPORTATION OF GAMBL-
 ING DEVICES  IN  INTERSTATE  AND  FOREIGN  COMMERCE,"  APPROVED  JANUARY
 SECOND,  NINETEEN  HUNDRED FIFTY-ONE, BEING CHAPTER 1194, 64 STAT. 1134,
 AND ALSO DESIGNATED AS 15 U.S.C.  §§ 1171-1177, THE STATE OF  NEW  YORK,
 ACTING  BY  AND  THROUGH  THE  DULY ELECTED AND QUALIFIED MEMBERS OF ITS
 LEGISLATURE, DOES HEREBY, IN ACCORDANCE WITH AND IN COMPLIANCE WITH  THE
 PROVISIONS  OF SECTION TWO OF SAID ACT OF CONGRESS, DECLARE AND PROCLAIM
 THAT IT IS EXEMPT FROM THE PROVISIONS OF SECTION  TWO  OF  SAID  ACT  OF
 CONGRESS.
   §  1557.  LEGAL  SHIPMENTS OF GAMING DEVICES INTO NEW YORK STATE.  ALL
 SHIPMENTS INTO THIS STATE OF GAMING DEVICES, EXCLUDING SLOT MACHINES AND
 COIN OPERATED GAMBLING DEVICES, AS DEFINED  IN  SUBDIVISION  SEVEN-A  OF
 SECTION 225.00 OF THE PENAL LAW, THE REGISTERING, RECORDING AND LABELING
 OF  WHICH  HAS  BEEN  DULY  HAD BY THE MANUFACTURER OR DEALER THEREOF IN
 ACCORDANCE WITH SECTIONS THREE AND FOUR OF AN ACT  OF  CONGRESS  OF  THE
 UNITED  STATES  ENTITLED  "AN ACT TO PROHIBIT TRANSPORTATION OF GAMBLING
 DEVICES IN INTERSTATE AND FOREIGN COMMERCE,"  APPROVED  JANUARY  SECOND,
 NINETEEN  HUNDRED FIFTY-ONE, BEING CHAPTER 1194, 64 STAT. 1134, AND ALSO
 DESIGNATED AS 15 U.S.C. §§ 1171-1177, SHALL BE  DEEMED  LEGAL  SHIPMENTS
 THEREOF INTO THIS STATE.
   §  1558.  APPLICATION FOR LICENSE. 1. TO CONDUCT GAMES OF CHANCE.  (A)
 EACH APPLICANT FOR A LICENSE SHALL, AFTER  OBTAINING  AN  IDENTIFICATION
 NUMBER FROM THE COMMISSION, FILE WITH THE CLERK OR DEPARTMENT, AN APPLI-
 CATION  THEREFOR  IN  A  FORM  TO  BE PRESCRIBED BY THE COMMISSION, DULY
 EXECUTED AND VERIFIED, IN WHICH SHALL BE STATED:
   (1) THE NAME AND ADDRESS OF THE  APPLICANT  TOGETHER  WITH  SUFFICIENT
 FACTS  RELATING  TO  ITS  INCORPORATION  AND ORGANIZATION TO ENABLE SUCH
 CLERK OR DEPARTMENT, AS THE CASE MAY BE, TO DETERMINE WHETHER OR NOT  IT
 IS A BONA FIDE AUTHORIZED ORGANIZATION;
   (2)  THE  NAMES  AND  ADDRESSES  OF  ITS OFFICERS; THE PLACE OR PLACES
 WHERE, THE DATE OR DATES AND  THE  TIME  OR  TIMES  WHEN  THE  APPLICANT
 INTENDS TO CONDUCT GAMES UNDER THE LICENSE APPLIED FOR;
   (3)  THE  AMOUNT OF RENT TO BE PAID OR OTHER CONSIDERATION TO BE GIVEN
 DIRECTLY OR INDIRECTLY FOR EACH LICENSED PERIOD FOR USE OF THE  PREMISES
 OF AN AUTHORIZED GAMES OF CHANCE LESSOR;
   (4)  ALL  OTHER  ITEMS  OF  EXPENSE INTENDED TO BE INCURRED OR PAID IN
 CONNECTION WITH THE HOLDING, OPERATING AND CONDUCTING OF SUCH  GAMES  OF
 CHANCE  AND  THE  NAMES  AND  ADDRESSES  OF THE PERSONS TO WHOM, AND THE
 PURPOSES FOR WHICH, THEY ARE TO BE PAID;
   (5) THE PURPOSES TO WHICH THE ENTIRE NET PROCEEDS OF SUCH GAMES ARE TO
 BE DEVOTED AND IN WHAT MANNER; THAT NO COMMISSION, SALARY, COMPENSATION,
 REWARD OR RECOMPENSE WILL BE PAID TO ANY PERSON FOR CONDUCTING SUCH GAME
 OR GAMES OR FOR ASSISTING THEREIN EXCEPT  AS  IN  THIS  TITLE  OTHERWISE
 PROVIDED;  AND  SUCH  OTHER  INFORMATION  AS SHALL BE PRESCRIBED BY SUCH
 RULES AND REGULATIONS; AND

 S. 2009                            135                           A. 3009
 
   (6) THE NAME OF EACH SINGLE TYPE OF GAME OF  CHANCE  TO  BE  CONDUCTED
 UNDER  THE  LICENSE APPLIED FOR AND THE NUMBER OF MERCHANDISE WHEELS AND
 RAFFLES, IF ANY, TO BE OPERATED.
   (B)  IN  EACH APPLICATION THERE SHALL BE DESIGNATED NOT LESS THAN FOUR
 BONA FIDE MEMBERS OF THE APPLICANT ORGANIZATION UNDER WHOM THE  GAME  OR
 GAMES OF CHANCE WILL BE MANAGED AND TO THE APPLICATION SHALL BE APPENDED
 A  STATEMENT  EXECUTED  BY  THE MEMBERS SO DESIGNATED, THAT THEY WILL BE
 RESPONSIBLE FOR THE MANAGEMENT OF SUCH  GAMES  IN  ACCORDANCE  WITH  THE
 TERMS  OF THE LICENSE, THE RULES AND REGULATIONS OF THE COMMISSION, THIS
 TITLE AND THE APPLICABLE LOCAL LAWS OR ORDINANCES.
   2. AUTHORIZED GAMES OF CHANCE LESSOR. EACH APPLICANT FOR A LICENSE  TO
 LEASE PREMISES TO A LICENSED ORGANIZATION FOR THE PURPOSES OF CONDUCTING
 GAMES  OF  CHANCE  THEREIN  SHALL  FILE  WITH THE CLERK OR DEPARTMENT AN
 APPLICATION THEREFOR, IN A FORM TO BE PRESCRIBED BY THE COMMISSION  DULY
 EXECUTED AND VERIFIED, WHICH SHALL SET FORTH:
   (A) THE NAME AND ADDRESS OF THE APPLICANT;
   (B)  DESIGNATION AND ADDRESS OF THE PREMISES INTENDED TO BE COVERED BY
 THE LICENSE SOUGHT;
   (C) A STATEMENT THAT THE APPLICANT IN ALL RESPECTS CONFORMS  WITH  THE
 SPECIFICATIONS  CONTAINED IN THE DEFINITION OF "AUTHORIZED ORGANIZATION"
 SET FORTH IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE; AND
   (D) A STATEMENT OF THE LAWFUL PURPOSES TO WHICH THE NET PROCEEDS  FROM
 ANY RENTAL ARE TO BE DEVOTED BY THE APPLICANT AND SUCH OTHER INFORMATION
 AS SHALL BE PRESCRIBED BY THE COMMISSION.
   3.  IN  COUNTIES  OUTSIDE  THE  CITY  OF NEW YORK, MUNICIPALITIES MAY,
 PURSUANT TO SECTION FIFTEEN HUNDRED FIFTY-TWO OF THIS  TITLE,  ADOPT  AN
 ORDINANCE  PROVIDING  THAT AN AUTHORIZED ORGANIZATION HAVING OBTAINED AN
 IDENTIFICATION NUMBER FROM THE COMMISSION, AND  HAVING  APPLIED  FOR  NO
 MORE  THAN  ONE LICENSE TO CONDUCT GAMES OF CHANCE DURING THE PERIOD NOT
 LESS THAN TWELVE NOR MORE THAN EIGHTEEN  MONTHS  IMMEDIATELY  PRECEDING,
 MAY FILE WITH THE CLERK OR DEPARTMENT A SUMMARY APPLICATION IN A FORM TO
 BE  PRESCRIBED  BY THE COMMISSION DULY EXECUTED AND VERIFIED, CONTAINING
 THE NAMES AND ADDRESSES OF THE APPLICANT ORGANIZATION AND ITS  OFFICERS,
 THE  DATE,  TIME  AND  PLACE  OR  PLACES  WHERE THE APPLICANT INTENDS TO
 CONDUCT GAMES UNDER THE LICENSE APPLIED FOR, THE PURPOSES TO  WHICH  THE
 ENTIRE  NET PROCEEDS OF SUCH GAMES ARE TO BE DEVOTED AND THE INFORMATION
 AND STATEMENT REQUIRED BY PARAGRAPH  (B)  OF  SUBDIVISION  ONE  OF  THIS
 SECTION  IN  LIEU  OF  THE APPLICATION REQUIRED UNDER SUBDIVISION ONE OF
 THIS SECTION.
   4. (A) NOTWITHSTANDING AND IN LIEU OF THE LICENSING  REQUIREMENTS  SET
 FORTH  IN  THIS  TITLE,  AN  AUTHORIZED  ORGANIZATION DEFINED IN SECTION
 FIFTEEN HUNDRED OF THIS ARTICLE MAY FILE A VERIFIED STATEMENT, FOR WHICH
 NO FEE SHALL BE REQUIRED, WITH THE CLERK OR DEPARTMENT AND  THE  COMMIS-
 SION  ATTESTING  THAT SUCH ORGANIZATION SHALL DERIVE NET PROCEEDS OR NET
 PROFITS FROM RAFFLES IN AN AMOUNT  LESS  THAN  THIRTY  THOUSAND  DOLLARS
 DURING  ONE  OCCASION  OR  PART  THEREOF  AT  WHICH  RAFFLES  ARE  TO BE
 CONDUCTED. SUCH STATEMENT SHALL BE ON A SINGLE-PAGE FORM  PRESCRIBED  BY
 THE COMMISSION, AND SHALL BE DEEMED A LICENSE TO CONDUCT RAFFLES:
   (1) UNDER THIS TITLE; AND
   (2)  WITHIN THE MUNICIPALITIES IN WHICH THE AUTHORIZED ORGANIZATION IS
 DOMICILED THAT HAVE PASSED A  LOCAL  LAW,  ORDINANCE  OR  RESOLUTION  IN
 ACCORDANCE  WITH  SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED
 FIFTY-TWO OF THIS TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE, AND IN
 MUNICIPALITIES THAT HAVE PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION  IN
 ACCORDANCE  WITH  SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED
 FIFTY-TWO OF THIS TITLE APPROVING THE CONDUCT OF GAMES  OF  CHANCE  THAT

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 ARE  LOCATED IN THE COUNTY IN WHICH THE MUNICIPALITY ISSUING THE LICENSE
 IS LOCATED AND IN THE COUNTIES THAT ARE  CONTIGUOUS  TO  THE  COUNTY  IN
 WHICH  THE  MUNICIPALITY ISSUING THE RAFFLE LICENSE IS LOCATED, PROVIDED
 THOSE  MUNICIPALITIES  HAVE AUTHORIZED THE LICENSEE, IN WRITING, TO SELL
 SUCH RAFFLE TICKETS THEREIN.
   (B) AN ORGANIZATION THAT HAS FILED A VERIFIED STATEMENT WITH THE CLERK
 OR DEPARTMENT AND THE COMMISSION ATTESTING THAT SUCH ORGANIZATION  SHALL
 DERIVE  NET  PROCEEDS OR NET PROFITS FROM RAFFLES IN AN AMOUNT LESS THAN
 THIRTY THOUSAND DOLLARS DURING ONE OCCASION OR PART THEREOF THAT IN FACT
 DERIVES NET PROCEEDS OR NET PROFITS EXCEEDING  THIRTY  THOUSAND  DOLLARS
 DURING  ANY  ONE  OCCASION OR PART THEREOF SHALL BE REQUIRED TO OBTAIN A
 LICENSE AS REQUIRED BY THIS TITLE AND SHALL BE SUBJECT TO THE PROVISIONS
 OF SECTION FIFTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE.
   § 1559. RAFFLES; LICENSE NOT REQUIRED. 1. NOTWITHSTANDING THE  LICENS-
 ING  REQUIREMENTS  SET FORTH IN THIS TITLE AND THEIR FILING REQUIREMENTS
 SET FORTH IN SUBDIVISION FOUR OF SECTION FIFTEEN HUNDRED FIFTY-EIGHT  OF
 THIS  TITLE,  AN  AUTHORIZED  ORGANIZATION  MAY CONDUCT A RAFFLE WITHOUT
 COMPLYING WITH SUCH LICENSING REQUIREMENTS OR SUCH FILING  REQUIREMENTS,
 PROVIDED,  THAT SUCH ORGANIZATION SHALL DERIVE NET PROCEEDS FROM RAFFLES
 IN AN AMOUNT LESS THAN FIVE THOUSAND DOLLARS DURING THE CONDUCT  OF  ONE
 RAFFLE AND SHALL DERIVE NET PROCEEDS FROM RAFFLES IN AN AMOUNT LESS THAN
 THIRTY THOUSAND DOLLARS DURING ONE CALENDAR YEAR.
   2.  NO  PERSON  UNDER  THE AGE OF EIGHTEEN SHALL BE PERMITTED TO PLAY,
 OPERATE OR ASSIST IN ANY RAFFLE CONDUCTED PURSUANT TO THIS SECTION.
   3. NO RAFFLE SHALL BE CONDUCTED PURSUANT TO THIS SECTION EXCEPT WITHIN
 A MUNICIPALITY IN WHICH THE AUTHORIZED ORGANIZATION  IS  DOMICILED  THAT
 HAS  PASSED  A  LOCAL  LAW,  ORDINANCE  OR RESOLUTION IN ACCORDANCE WITH
 SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
 TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE,  AND  IN  MUNICIPALITIES
 THAT HAVE PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN ACCORDANCE WITH
 SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
 TITLE  APPROVING  THE CONDUCT OF GAMES OF CHANCE THAT ARE LOCATED WITHIN
 THE COUNTY OR CONTIGUOUS TO THE COUNTY  IN  WHICH  THE  ORGANIZATION  IS
 DOMICILED.
   §  1560. INVESTIGATION; MATTERS TO BE DETERMINED; ISSUANCE OF LICENSE;
 FEES; DURATION OF LICENSE. 1. THE CLERK  OR  DEPARTMENT  SHALL  MAKE  AN
 INVESTIGATION  OF THE QUALIFICATIONS OF EACH APPLICANT AND THE MERITS OF
 EACH APPLICATION, WITH DUE EXPEDITION AFTER THE FILING OF  THE  APPLICA-
 TION.
   (A)  ISSUANCE OF LICENSES TO CONDUCT GAMES OF CHANCE. IF SUCH CLERK OR
 DEPARTMENT DETERMINES:
   (1) THAT THE APPLICANT IS DULY QUALIFIED TO  BE  LICENSED  TO  CONDUCT
 GAMES OF CHANCE UNDER THIS TITLE;
   (2)  THAT  THE  MEMBER  OR  MEMBERS OF THE APPLICANT DESIGNATED IN THE
 APPLICATION TO MANAGE GAMES OF CHANCE ARE BONA FIDE  ACTIVE  MEMBERS  OF
 THE  APPLICANT  AND  ARE  PERSONS OF GOOD MORAL CHARACTER AND HAVE NEVER
 BEEN CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP BETWEEN  ONE
 OR  MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY OF CHARITA-
 BLE GAMING, CONSIDERING THE FACTORS SET FORTH IN SECTION  SEVEN  HUNDRED
 FIFTY-THREE OF THE CORRECTION LAW;
   (3)  THAT  SUCH  GAMES  ARE  TO  BE  CONDUCTED  IN ACCORDANCE WITH THE
 PROVISIONS OF THIS TITLE AND IN ACCORDANCE  WITH  THE  RULES  AND  REGU-
 LATIONS  OF  THE  COMMISSION AND APPLICABLE LOCAL LAWS OR ORDINANCES AND
 THAT THE PROCEEDS THEREOF ARE TO BE DISPOSED  OF  AS  PROVIDED  BY  THIS
 TITLE; AND

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   (4)  IS  SATISFIED THAT NO COMMISSION, SALARY, COMPENSATION, REWARD OR
 RECOMPENSE WHATSOEVER WILL BE PAID OR  GIVEN  TO  ANY  PERSON  MANAGING,
 OPERATING  OR  ASSISTING  THEREIN  EXCEPT  AS  IN  THIS  TITLE OTHERWISE
 PROVIDED, THEN SUCH CLERK OR DEPARTMENT SHALL ISSUE  A  LICENSE  TO  THE
 APPLICANT  FOR  THE CONDUCT OF GAMES OF CHANCE UPON PAYMENT OF A LICENSE
 FEE IN AN AMOUNT ESTABLISHED BY REGULATION OF THE  COMMISSION  FOR  EACH
 LICENSE PERIOD.
   (B)  ISSUANCE  OF  LICENSES TO AUTHORIZED GAMES OF CHANCE LESSORS.  IF
 SUCH CLERK OR DEPARTMENT DETERMINES:
   (1) THAT THE APPLICANT SEEKING TO LEASE PREMISES FOR  THE  CONDUCT  OF
 GAMES  OF  CHANCE  TO A GAMES OF CHANCE LICENSEE IS DULY QUALIFIED TO BE
 LICENSED UNDER THIS TITLE;
   (2) THAT THE APPLICANT SATISFIES THE REQUIREMENTS  FOR  AN  AUTHORIZED
 ORGANIZATION AS DEFINED IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE;
   (3)  THAT  THE  APPLICANT HAS FILED ITS PROPOSED RENT FOR EACH LICENSE
 PERIOD; AND
   (4) THAT SUCH PROPOSED RENT IS FAIR AND REASONABLE;
   (5) THAT THE NET PROCEEDS FROM ANY  RENTAL  WILL  BE  DEVOTED  TO  THE
 LAWFUL PURPOSES OF THE APPLICANT;
   (6)  THAT  THERE  IS  NO DIVERSION OF THE FUNDS OF THE PROPOSED LESSEE
 FROM THE LAWFUL PURPOSES AS DEFINED IN THIS TITLE; AND
   (7) THAT SUCH LEASING OF PREMISES FOR THE CONDUCT OF SUCH GAMES IS  TO
 BE  IN  ACCORDANCE WITH THE PROVISIONS OF THIS TITLE, WITH THE RULES AND
 REGULATIONS OF THE COMMISSION AND APPLICABLE LOCAL LAWS AND  ORDINANCES,
 THEN  SUCH  CLERK  OR  DEPARTMENT  SHALL  ISSUE A LICENSE PERMITTING THE
 APPLICANT TO LEASE SAID PREMISES FOR THE CONDUCT OF SUCH  GAMES  TO  THE
 GAMES  OF  CHANCE  LICENSEE  OR  LICENSEES  SPECIFIED IN THE APPLICATION
 DURING THE PERIOD THEREIN SPECIFIED OR SUCH SHORTER PERIOD AS SUCH CLERK
 OR DEPARTMENT DETERMINES, BUT  NOT  TO  EXCEED  TWELVE  LICENSE  PERIODS
 DURING  A  CALENDAR  YEAR,  UPON  PAYMENT  OF A LICENSE FEE IN AN AMOUNT
 ESTABLISHED BY THE REGULATIONS OF THE COMMISSION. NOTHING  HEREIN  SHALL
 BE CONSTRUED TO REQUIRE THE APPLICANT TO BE LICENSED UNDER THIS TITLE TO
 CONDUCT GAMES OF CHANCE.
   (C)  ISSUANCE  OF LICENSE UPON SUMMARY APPLICATION. IF, UPON THE BASIS
 OF A SUMMARY  APPLICATION  AS  PRESCRIBED  UNDER  SUBDIVISION  THREE  OF
 SECTION  FIFTEEN HUNDRED FIFTY-EIGHT OF THIS TITLE, THE CLERK OR DEPART-
 MENT DETERMINES THAT THE APPLICANT IS DULY QUALIFIED TO BE  LICENSED  TO
 CONDUCT GAMES OF CHANCE UNDER THIS TITLE, SAID CLERK OR DEPARTMENT SHALL
 FORTHWITH  ISSUE  SAID LICENSE. IN THE EVENT THE CLERK OR DEPARTMENT HAS
 REASON TO BELIEVE THAT THE APPLICANT IS NOT SO QUALIFIED  THE  APPLICANT
 SHALL  BE DIRECTED TO FILE AN APPLICATION PURSUANT TO SUBDIVISION ONE OF
 SECTION FIFTEEN HUNDRED FIFTY-EIGHT OF THIS TITLE.
   2. ON OR BEFORE THE LAST DAY OF EACH MONTH, THE TREASURER OF THE MUNI-
 CIPALITY IN WHICH THE LICENSED PROPERTY IS LOCATED SHALL TRANSMIT TO THE
 STATE COMPTROLLER A SUM EQUAL TO FIFTY PERCENT OF ALL  AUTHORIZED  GAMES
 OF CHANCE LESSOR LICENSE FEES AND A SUM ESTABLISHED BY REGULATION OF THE
 COMMISSION  PER  LICENSE  PERIOD  FOR  THE  CONDUCT  OF  GAMES OF CHANCE
 COLLECTED BY SUCH CLERK OR DEPARTMENT PURSUANT TO  THIS  SECTION  DURING
 THE PRECEDING CALENDAR MONTH.
   3. NO LICENSE SHALL BE ISSUED UNDER THIS SECTION THAT IS EFFECTIVE FOR
 A PERIOD OF MORE THAN ONE YEAR.
   § 1561. HEARING; AMENDMENT OF LICENSE. 1. NO APPLICATION FOR THE ISSU-
 ANCE  OF  A  LICENSE  TO CONDUCT GAMES OF CHANCE OR LEASE PREMISES TO AN
 AUTHORIZED ORGANIZATION SHALL BE DENIED  BY  THE  CLERK  OR  DEPARTMENT,
 UNTIL AFTER A HEARING, HELD ON DUE NOTICE TO THE APPLICANT, AT WHICH THE

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 APPLICANT  SHALL  BE ENTITLED TO BE HEARD UPON THE QUALIFICATIONS OF THE
 APPLICANT AND THE MERITS OF THE APPLICATION.
   2.  ANY  LICENSE ISSUED UNDER THIS TITLE MAY BE AMENDED, UPON APPLICA-
 TION MADE TO SUCH CLERK OR DEPARTMENT THAT ISSUED  IT,  IF  THE  SUBJECT
 MATTER  OF  THE PROPOSED AMENDMENT COULD LAWFULLY AND PROPERLY HAVE BEEN
 INCLUDED IN THE ORIGINAL LICENSE AND UPON  PAYMENT  OF  SUCH  ADDITIONAL
 LICENSE  FEE,  IF  ANY,  AS  WOULD  HAVE  BEEN PAYABLE IF IT HAD BEEN SO
 INCLUDED.
   § 1562. FORM AND CONTENTS OF LICENSE; DISPLAY OF  LICENSE.  1.    EACH
 LICENSE  TO  CONDUCT  GAMES  OF CHANCE SHALL BE IN SUCH FORM AS SHALL BE
 PRESCRIBED IN THE RULES AND REGULATIONS  OF  THE  COMMISSION  AND  SHALL
 CONTAIN:
   (A)  A STATEMENT OF THE NAME AND ADDRESS OF THE LICENSEE, OF THE NAMES
 AND ADDRESSES OF THE MEMBERS OF THE LICENSEE UNDER WHOM THE  GAMES  WILL
 BE MANAGED;
   (B)  A  STATEMENT  OF THE PLACE OR PLACES WHERE, AND THE DATE OR DATES
 AND TIME OR TIMES WHEN, SUCH GAMES ARE TO BE CONDUCTED;
   (C) A STATEMENT OF THE PURPOSES TO WHICH THE ENTIRE  NET  PROCEEDS  OF
 SUCH GAMES ARE TO BE DEVOTED;
   (D)  THE  NAME  OF  EACH SINGLE TYPE OF GAME TO BE CONDUCTED UNDER THE
 LICENSE AND THE NUMBER OF MERCHANDISE WHEELS AND RAFFLES, IF ANY, TO  BE
 OPERATED; AND
   (E)  ANY OTHER INFORMATION THAT MAY BE REQUIRED BY THE RULES AND REGU-
 LATIONS OF THE COMMISSION TO BE CONTAINED THEREIN.
   2. EACH LICENSE ISSUED FOR THE CONDUCT OF ANY GAMES SHALL BE DISPLAYED
 CONSPICUOUSLY AT THE PLACE WHERE SUCH GAMES ARE TO BE CONDUCTED  AT  ALL
 TIMES DURING THE CONDUCT THEREOF.
   3. EACH LICENSE TO LEASE PREMISES FOR CONDUCTING GAMES OF CHANCE SHALL
 BE  IN  SUCH FORM AS SHALL BE PRESCRIBED IN THE RULES AND REGULATIONS OF
 THE COMMISSION AND SHALL CONTAIN A STATEMENT OF THE NAME AND ADDRESS  OF
 THE  LICENSEE  AND  THE  ADDRESS  OF  THE LEASED PREMISES, THE AMOUNT OF
 PERMISSIBLE RENT AND ANY INFORMATION THAT MAY BE REQUIRED BY SAID  RULES
 AND  REGULATIONS TO BE CONTAINED THEREIN, AND EACH SUCH LICENSE SHALL BE
 CONSPICUOUSLY DISPLAYED UPON SUCH  PREMISES  AT  ALL  TIMES  DURING  THE
 CONDUCT OF GAMES OF CHANCE.
   §  1563. CONTROL AND SUPERVISION; SUSPENSION OF IDENTIFICATION NUMBERS
 AND LICENSES; INSPECTIONS OF  PREMISES.  1.  THE  MUNICIPAL  OFFICER  OR
 DEPARTMENT  SHALL  HAVE AND EXERCISE RIGID CONTROL AND CLOSE SUPERVISION
 OVER ALL GAMES OF CHANCE CONDUCTED UNDER SUCH LICENSE, TO THE  END  THAT
 THE  SAME ARE CONDUCTED FAIRLY IN ACCORDANCE WITH THE PROVISIONS OF SUCH
 LICENSE, THE PROVISIONS OF THE RULES AND REGULATIONS PROMULGATED BY  THE
 COMMISSION  AND  THE PROVISIONS OF THIS TITLE. SUCH MUNICIPAL OFFICER OR
 DEPARTMENT AND THE COMMISSION SHALL HAVE THE POWER AND THE AUTHORITY  TO
 SUSPEND TEMPORARILY ANY LICENSE ISSUED BY THE CLERK OR DEPARTMENT AND/OR
 IMPOSE  FINES FOR VIOLATIONS NOT TO EXCEED ONE THOUSAND DOLLARS.  TEMPO-
 RARY SUSPENSION OF LICENSES SHALL BE FOLLOWED PROMPTLY BY A HEARING, AND
 AFTER NOTICE AND HEARING, THE CLERK, DEPARTMENT OR  THE  COMMISSION  MAY
 SUSPEND  OR REVOKE THE SAME AND DECLARE THE VIOLATOR INELIGIBLE TO APPLY
 FOR A LICENSE FOR A PERIOD NOT EXCEEDING TWELVE MONTHS  THEREAFTER.  ANY
 FINES  TENDERED  TO THE CLERK, DEPARTMENT OR THE COMMISSION SHALL NOT BE
 PAID FROM FUNDS DERIVED FROM THE CONDUCT OF GAMES OF CHANCE. THE MUNICI-
 PAL OFFICER AND THE DEPARTMENT OR THE COMMISSION SHALL ADDITIONALLY HAVE
 THE RIGHT OF ENTRY, BY THEIR RESPECTIVE MUNICIPAL OFFICERS  AND  AGENTS,
 AT  ALL  TIMES  INTO  ANY  PREMISES  WHERE  ANY  GAME OF CHANCE IS BEING
 CONDUCTED OR WHERE IT IS INTENDED THAT ANY SUCH GAME SHALL BE CONDUCTED,
 OR WHERE ANY EQUIPMENT BEING USED OR INTENDED TO BE USED IN THE  CONDUCT

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 THEREOF  IS  FOUND, FOR THE PURPOSE OF INSPECTING THE SAME. UPON SUSPEN-
 SION OR REVOCATION OF ANY LICENSE OR UPON DECLARATION  OF  INELIGIBILITY
 TO  APPLY  FOR A LICENSE, THE COMMISSION MAY SUSPEND OR REVOKE THE IDEN-
 TIFICATION NUMBER ISSUED PURSUANT TO SECTION FIFTEEN HUNDRED FIFTY-THREE
 OF  THIS TITLE. AN AGENT OF THE APPROPRIATE MUNICIPAL OFFICER OR DEPART-
 MENT SHALL MAKE AN ON-SITE INSPECTION DURING THE CONDUCT OF ALL GAMES OF
 CHANCE LICENSED PURSUANT TO THIS TITLE.
   2. A MUNICIPALITY MAY, BY LOCAL LAW OR ORDINANCE ENACTED  PURSUANT  TO
 THE  PROVISIONS  OF  SECTION  FIFTEEN  HUNDRED  FIFTY-TWO OF THIS TITLE,
 PROVIDE THAT THE POWERS AND DUTIES SET FORTH IN SUBDIVISION ONE OF  THIS
 SECTION  SHALL  BE EXERCISED BY THE CHIEF LAW ENFORCEMENT OFFICER OF THE
 COUNTY. IN THE EVENT A MUNICIPALITY  EXERCISES  THIS  OPTION,  THE  FEES
 PROVIDED  FOR  BY SUBDIVISION TWO OF SECTION FIFTEEN HUNDRED SIXTY-SEVEN
 OF THIS TITLE SHALL BE REMITTED TO THE CHIEF FISCAL OFFICER OF THE COUN-
 TY.
   3.  SERVICE  OF  ALCOHOLIC  BEVERAGES.  SUBJECT  TO   THE   APPLICABLE
 PROVISIONS  OF  THE  ALCOHOLIC BEVERAGE CONTROL LAW, BEER MAY BE OFFERED
 FOR SALE DURING THE CONDUCT OF GAMES OF CHANCE ON GAMES OF CHANCE  PREM-
 ISES  AS  SUCH  PREMISES  ARE DEFINED IN SECTION FIFTEEN HUNDRED OF THIS
 ARTICLE; PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL  BE  CONSTRUED  TO
 LIMIT  THE  OFFERING  FOR  SALE OF ANY OTHER ALCOHOLIC BEVERAGE IN AREAS
 OTHER THAN THE GAMES OF CHANCE PREMISES OR THE SALE OF ANY  OTHER  ALCO-
 HOLIC  BEVERAGE IN PREMISES WHERE ONLY THE GAMES OF CHANCE KNOWN AS BELL
 JARS OR RAFFLES ARE CONDUCTED.
   § 1564. FREQUENCY OF GAMES. 1. NO GAME OR GAMES  OF  CHANCE  SHALL  BE
 CONDUCTED  UNDER  ANY  LICENSE  ISSUED  UNDER THIS TITLE MORE OFTEN THAN
 TWELVE TIMES IN ANY CALENDAR YEAR. NO PARTICULAR PREMISES SHALL BE  USED
 FOR  THE  CONDUCT  OF  GAMES  OF CHANCE ON MORE THAN TWENTY-FOUR LICENSE
 PERIODS DURING ANY ONE CALENDAR YEAR.
   2. GAMES OF CHANCE OTHER THAN BELL JARS AND RAFFLES MAY  BE  CONDUCTED
 AT  ANY  TIME, UNLESS THE GAMES OF CHANCE LICENSE PROVIDES OTHERWISE. NO
 LICENSE MAY RESTRICT THE  TIMES  IN  WHICH  BELL  JARS  OR  RAFFLES  ARE
 CONDUCTED,  SUBJECT  TO  THE  LIMITATIONS ON THE LICENSE PERIOD FOR SUCH
 GAMES SET FORTH IN SUBDIVISION EIGHTEEN OF SECTION  FIFTEEN  HUNDRED  OF
 THIS ARTICLE.
   § 1565. PERSONS OPERATING GAMES; EQUIPMENT; EXPENSES; COMPENSATION. 1.
 NO  PERSON  SHALL  OPERATE  ANY  GAME OF CHANCE UNDER ANY LICENSE ISSUED
 UNDER THIS TITLE EXCEPT A BONA FIDE MEMBER OF THE  AUTHORIZED  ORGANIZA-
 TION  TO WHICH THE LICENSE IS ISSUED, OR A BONA FIDE MEMBER OF AN ORGAN-
 IZATION OR ASSOCIATION THAT IS AN AUXILIARY TO THE LICENSEE  OR  A  BONA
 FIDE  MEMBER OF AN ORGANIZATION OR ASSOCIATION OF WHICH SUCH LICENSEE IS
 AN AUXILIARY OR A BONA FIDE MEMBER OF  AN  ORGANIZATION  OR  ASSOCIATION
 THAT  IS  AFFILIATED  WITH  THE LICENSEE BY BEING, WITH IT, AUXILIARY TO
 ANOTHER ORGANIZATION OR ASSOCIATION. NOTHING HEREIN SHALL  BE  CONSTRUED
 TO  LIMIT  THE NUMBER OF GAMES OF CHANCE LICENSEES FOR WHOM SUCH PERSONS
 MAY OPERATE GAMES OF CHANCE NOR TO PREVENT  NON-MEMBERS  FROM  ASSISTING
 THE LICENSEE IN ANY ACTIVITY OTHER THAN MANAGING OR OPERATING GAMES. FOR
 THE  PURPOSE  OF  THE  SALE  OF TICKETS FOR THE GAME OF RAFFLE, THE TERM
 "OPERATE" SHALL NOT INCLUDE THE SALE  OF  SUCH  TICKETS  BY  PERSONS  OF
 LINEAL OR COLLATERAL CONSANGUINITY TO MEMBERS OF AN AUTHORIZED ORGANIZA-
 TION LICENSED TO CONDUCT A RAFFLE.
   2. NO GAME OF CHANCE SHALL BE CONDUCTED WITH ANY EQUIPMENT EXCEPT SUCH
 AS  SHALL  BE OWNED OR LEASED BY THE AUTHORIZED ORGANIZATION SO LICENSED
 OR USED WITHOUT PAYMENT OF ANY COMPENSATION THEREFOR  BY  THE  LICENSEE.
 HOWEVER,  IN  NO  EVENT  SHALL  BELL JAR TICKETS BE TRANSFERRED FROM ONE

 S. 2009                            140                           A. 3009
 
 AUTHORIZED ORGANIZATION TO ANOTHER,  WITH  OR  WITHOUT  PAYMENT  OF  ANY
 COMPENSATION THEREOF.
   3. THE HEAD OR HEADS OF THE AUTHORIZED ORGANIZATION SHALL UPON REQUEST
 CERTIFY,  UNDER  OATH, THAT THE PERSONS OPERATING ANY GAME OF CHANCE ARE
 BONA FIDE MEMBERS OF SUCH AUTHORIZED ORGANIZATION, AUXILIARY  OR  AFFIL-
 IATED ORGANIZATION.
   4.  UPON  REQUEST  BY  A  MUNICIPAL OFFICER OR THE DEPARTMENT ANY SUCH
 PERSON INVOLVED IN SUCH GAMES OF CHANCE SHALL CERTIFY THAT HE OR SHE HAS
 NO CRIMINAL RECORD OR SHALL  DISCLOSE  PREVIOUS  CRIMINAL  OFFENSES  FOR
 CONSIDERATION  OF  THE FACTORS SET FORTH IN SECTION SEVEN HUNDRED FIFTY-
 THREE OF THE CORRECTION LAW.
   5. NO ITEMS OF EXPENSE SHALL BE INCURRED OR PAID  IN  CONNECTION  WITH
 THE  CONDUCTING  OF  ANY  GAME  OF CHANCE PURSUANT TO ANY LICENSE ISSUED
 UNDER THIS TITLE EXCEPT THOSE THAT ARE REASONABLE  AND  ARE  NECESSARILY
 EXPENDED  FOR  GAMES  OF CHANCE SUPPLIES AND EQUIPMENT, PRIZES, SECURITY
 PERSONNEL, STATED RENTAL IF  ANY,  BOOKKEEPING  OR  ACCOUNTING  SERVICES
 ACCORDING  TO  A  SCHEDULE OF COMPENSATION PRESCRIBED BY THE COMMISSION,
 JANITORIAL SERVICES AND UTILITY SUPPLIES IF ANY, AND LICENSE  FEES,  AND
 THE  COST  OF BUS TRANSPORTATION, IF AUTHORIZED BY SUCH CLERK OR DEPART-
 MENT.
   6. NO COMMISSION, SALARY, COMPENSATION, REWARD OR RECOMPENSE SHALL  BE
 PAID  OR  GIVEN TO ANY PERSON FOR THE SALE OR ASSISTING WITH THE SALE OF
 RAFFLE TICKETS.
   § 1566. CHARGE FOR ADMISSION  AND  PARTICIPATION;  AMOUNT  OF  PRIZES;
 AWARD  OF  PRIZES. 1. A FEE MAY BE CHARGED BY ANY LICENSEE FOR ADMISSION
 TO ANY GAME OR GAMES OF CHANCE CONDUCTED UNDER ANY LICENSE ISSUED  UNDER
 THIS TITLE.  THE CLERK OR DEPARTMENT MAY IN ITS DISCRETION FIX A MINIMUM
 FEE.
   2.  WITH THE EXCEPTION OF BELL JARS, COIN BOARDS, SEAL CARDS, MERCHAN-
 DISE BOARDS AND RAFFLES, EVERY WINNER  SHALL  BE  DETERMINED  AND  EVERY
 PRIZE  SHALL  BE  AWARDED  AND DELIVERED WITHIN THE SAME CALENDAR DAY AS
 THAT UPON WHICH THE GAME WAS PLAYED.
   3. A PLAYER MAY PURCHASE A CHANCE WITH  CASH  OR,  IF  THE  AUTHORIZED
 ORGANIZATION WISHES, WITH A PERSONAL CHECK, CREDIT CARD OR DEBIT CARD.
   §  1567.  STATEMENT OF RECEIPTS AND EXPENSES; ADDITIONAL LICENSE FEES.
 1.  WITHIN SEVEN DAYS AFTER THE CONCLUSION OF ANY LICENSE  PERIOD  OTHER
 THAN  A  LICENSE  PERIOD FOR A RAFFLE, OR AS OTHERWISE PRESCRIBED BY THE
 COMMISSION, THE AUTHORIZED ORGANIZATION THAT CONDUCTED THE SAME, AND ITS
 MEMBERS WHO WERE IN CHARGE THEREOF, AND WHEN APPLICABLE  THE  AUTHORIZED
 GAMES  OF  CHANCE  LESSOR  THAT RENTED ITS PREMISES THEREFOR, SHALL EACH
 FURNISH TO THE CLERK OR DEPARTMENT A STATEMENT SUBSCRIBED BY THE  MEMBER
 IN  CHARGE  AND  AFFIRMED  BY HIM OR HER AS TRUE, UNDER THE PENALTIES OF
 PERJURY, SHOWING THE AMOUNT OF THE GROSS RECEIPTS DERIVED THEREFROM  AND
 EACH  ITEM  OF  EXPENSE  INCURRED, OR PAID, AND EACH ITEM OF EXPENDITURE
 MADE OR TO BE MADE OTHER THAN PRIZES,  THE  NAME  AND  ADDRESS  OF  EACH
 PERSON  TO  WHOM  EACH  SUCH  ITEM OF EXPENSE HAS BEEN PAID, OR IS TO BE
 PAID, WITH A DETAILED DESCRIPTION OF THE MERCHANDISE  PURCHASED  OR  THE
 SERVICES RENDERED THEREFOR, THE NET PROCEEDS DERIVED FROM THE CONDUCT OF
 GAMES  OF  CHANCE  DURING SUCH LICENSE PERIOD, AND THE USE TO WHICH SUCH
 PROCEEDS HAVE BEEN OR ARE TO BE APPLIED. IT SHALL BE THE  DUTY  OF  EACH
 LICENSEE TO MAINTAIN AND KEEP SUCH BOOKS AND RECORDS AS MAY BE NECESSARY
 TO SUBSTANTIATE THE PARTICULARS OF EACH SUCH STATEMENT.
   2. WITHIN THIRTY DAYS AFTER THE CONCLUSION OF AN OCCASION DURING WHICH
 A  RAFFLE  WAS  CONDUCTED,  THE  AUTHORIZED ORGANIZATION CONDUCTING SUCH
 RAFFLE AND THE MEMBERS IN CHARGE OF SUCH RAFFLE, AND,  WHEN  APPLICABLE,
 THE AUTHORIZED GAMES OF CHANCE LESSOR THAT RENTED ITS PREMISES THEREFOR,

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 SHALL  EACH  FURNISH  TO  THE  CLERK OR DEPARTMENT A STATEMENT ON A FORM
 PRESCRIBED BY THE COMMISSION, SUBSCRIBED BY THE  MEMBER  IN  CHARGE  AND
 AFFIRMED BY HIM OR HER AS TRUE, UNDER THE PENALTIES OF PERJURY, SHOWING:
   (A) THE NUMBER OF TICKETS PRINTED;
   (B) THE NUMBER OF TICKETS SOLD;
   (C) THE PRICE AND THE NUMBER OF TICKETS RETURNED TO OR RETAINED BY THE
 AUTHORIZED ORGANIZATION AS UNSOLD;
   (D)  A  DESCRIPTION  AND  STATEMENT  OF THE FAIR MARKET VALUE FOR EACH
 PRIZE ACTUALLY AWARDED;
   (E) THE AMOUNT OF THE GROSS RECEIPTS DERIVED THEREFROM;
   (F) EACH ITEM OF EXPENDITURE MADE OR TO BE MADE OTHER THAN PRIZES;
   (G) THE NAME AND ADDRESS OF EACH PERSON TO  WHOM  EACH  SUCH  ITEM  OF
 EXPENSE HAS BEEN PAID, OR IS TO BE PAID;
   (H)  A  DETAILED  DESCRIPTION  OF  THE  MERCHANDISE  PURCHASED  OR THE
 SERVICES RENDERED THEREFOR;
   (I) THE NET PROCEEDS DERIVED FROM THE RAFFLE AT SUCH OCCASION; AND
   (J) THE USE TO WHICH THE PROCEEDS HAVE BEEN OR ARE TO BE  APPLIED.  IT
 SHALL  BE  THE DUTY OF EACH LICENSEE TO MAINTAIN AND KEEP SUCH BOOKS AND
 RECORDS AS MAY BE NECESSARY TO SUBSTANTIATE THE PARTICULARS OF EACH SUCH
 STATEMENT, PROVIDED, HOWEVER, WHERE THE CUMULATIVE NET PROCEEDS  OR  NET
 PROFITS  DERIVED  FROM  THE CONDUCT OF A RAFFLE OR RAFFLES ARE LESS THAN
 THIRTY THOUSAND DOLLARS DURING ANY  ONE  OCCASION,  IN  SUCH  CASE,  THE
 REPORTING  REQUIREMENT  SHALL  BE  SATISFIED BY THE FILING WITHIN THIRTY
 DAYS OF THE CONCLUSION OF SUCH OCCASION A VERIFIED STATEMENT  PRESCRIBED
 BY  THE  COMMISSION  ATTESTING TO THE AMOUNT OF SUCH NET PROCEEDS OR NET
 PROFITS AND THE DISTRIBUTION THEREOF FOR LAWFUL PURPOSES WITH THE  CLERK
 OR  DEPARTMENT  AND  A  COPY  WITH THE COMMISSION, AND PROVIDED FURTHER,
 HOWEVER, WHERE THE CUMULATIVE NET PROCEEDS DERIVED FROM THE CONDUCT OF A
 RAFFLE OR RAFFLES ARE LESS THAN FIVE THOUSAND  DOLLARS  DURING  ANY  ONE
 OCCASION AND LESS THAN THIRTY THOUSAND DOLLARS DURING ONE CALENDAR YEAR,
 NO REPORTING SHALL BE REQUIRED.
   3.  ANY AUTHORIZED ORGANIZATION REQUIRED TO FILE AN ANNUAL REPORT WITH
 THE SECRETARY OF STATE PURSUANT TO ARTICLE SEVEN-A OF THE EXECUTIVE  LAW
 OR THE ATTORNEY GENERAL PURSUANT TO ARTICLE EIGHT OF THE ESTATES, POWERS
 AND  TRUSTS  LAW  SHALL  INCLUDE  WITH  SUCH ANNUAL REPORT A COPY OF THE
 STATEMENT REQUIRED TO BE FILED WITH THE CLERK OR DEPARTMENT PURSUANT  TO
 SUBDIVISION ONE OR TWO OF THIS SECTION.
   4.  UPON THE FILING OF SUCH STATEMENT OF RECEIPTS PURSUANT TO SUBDIVI-
 SION ONE OR TWO OF THIS SECTION, THE AUTHORIZED ORGANIZATION  FURNISHING
 THE  SAME  SHALL PAY TO THE CLERK OR DEPARTMENT AS AND FOR AN ADDITIONAL
 LICENSE FEE A SUM BASED UPON THE REPORTED NET PROCEEDS, IF ANY, FOR  THE
 LICENSE  PERIOD,  OR IN THE CASE OF RAFFLES, FOR THE OCCASION COVERED BY
 SUCH STATEMENT AND DETERMINED IN ACCORDANCE WITH SUCH SCHEDULE AS  SHALL
 BE  ESTABLISHED FROM TIME TO TIME BY THE COMMISSION TO DEFRAY THE ACTUAL
 COST TO MUNICIPALITIES OR COUNTIES OF ADMINISTERING  THE  PROVISIONS  OF
 THIS  TITLE,  BUT  SUCH  ADDITIONAL  LICENSE  FEE  SHALL NOT EXCEED FIVE
 PERCENT OF THE NET PROCEEDS FOR SUCH LICENSE PERIOD. THE  PROVISIONS  OF
 THIS  SUBDIVISION  SHALL  NOT APPLY TO THE NET PROCEEDS FROM THE SALE OF
 BELL JAR TICKETS. NO FEE SHALL BE REQUIRED WHERE THE NET PROCEEDS OR NET
 PROFITS DERIVED FROM THE CONDUCT OF A RAFFLE OR RAFFLES  ARE  LESS  THAN
 THIRTY THOUSAND DOLLARS DURING ANY ONE OCCASION.
   §  1568. EXAMINATION OF BOOKS AND RECORDS; EXAMINATION OF OFFICERS AND
 EMPLOYEES; DISCLOSURE OF INFORMATION. THE CLERK OR  DEPARTMENT  AND  THE
 COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE EXAMINED THE BOOKS
 AND RECORDS OF:

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   1. ANY AUTHORIZED ORGANIZATION THAT IS OR HAS BEEN LICENSED TO CONDUCT
 GAMES OF CHANCE, SO FAR AS THEY MAY RELATE TO GAMES OF CHANCE, INCLUDING
 THE  MAINTENANCE,  CONTROL  AND DISPOSITION OF NET PROCEEDS DERIVED FROM
 GAMES OF CHANCE OR FROM THE USE OF ITS PREMISES FOR GAMES OF CHANCE, AND
 TO  EXAMINE  ANY  MANAGER,  OFFICER, DIRECTOR, AGENT, MEMBER OR EMPLOYEE
 THEREOF UNDER OATH IN RELATION TO THE CONDUCT OF ANY SUCH GAME UNDER ANY
 SUCH LICENSE, THE USE OF ITS PREMISES FOR GAMES OF CHANCE, OR THE DISPO-
 SITION OF NET PROCEEDS DERIVED FROM GAMES OF CHANCE, AS THE CASE MAY BE;
 OR
   2. ANY AUTHORIZED GAMES OF CHANCE LESSOR, SO FAR  AS  SUCH  BOOKS  AND
 RECORDS MAY RELATE TO LEASING PREMISES FOR GAMES OF CHANCE, AND TO EXAM-
 INE  SUCH  LESSOR  OR  ANY MANAGER, OFFICER, DIRECTOR, AGENT OR EMPLOYEE
 THEREOF UNDER OATH IN RELATION  TO  SUCH  LEASING.  ANY  INFORMATION  SO
 RECEIVED  SHALL  NOT  BE DISCLOSED EXCEPT SO FAR AS MAY BE NECESSARY FOR
 THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THIS TITLE.
   § 1569. APPEALS FOR THE DECISION OF  A  MUNICIPAL  OFFICER,  CLERK  OR
 DEPARTMENT  TO  THE  COMMISSION.  ANY  APPLICANT  FOR, OR HOLDER OF, ANY
 LICENSE ISSUED OR TO BE ISSUED UNDER THIS TITLE AGGRIEVED BY ANY  ACTION
 OF  A  MUNICIPAL OFFICER, CLERK OR DEPARTMENT, TO WHICH SUCH APPLICATION
 HAS BEEN MADE OR BY WHICH SUCH LICENSE HAS BEEN ISSUED,  MAY  APPEAL  TO
 THE  COMMISSION  FROM THE DETERMINATION OF SAID MUNICIPAL OFFICER, CLERK
 OR DEPARTMENT BY FILING WITH SUCH MUNICIPAL OFFICER, CLERK OR DEPARTMENT
 A WRITTEN NOTICE OF APPEAL WITHIN THIRTY DAYS AFTER THE DETERMINATION OR
 ACTION APPEALED FROM, AND UPON THE HEARING OF SUCH APPEAL, THE EVIDENCE,
 IF ANY, TAKEN BEFORE SUCH MUNICIPAL OFFICER, CLERK OR DEPARTMENT AND ANY
 ADDITIONAL EVIDENCE MAY BE PRODUCED AND SHALL BE CONSIDERED IN  ARRIVING
 AT  A  DETERMINATION  OF  THE  MATTERS  IN  ISSUE, AND THE ACTION OF THE
 COMMISSION UPON SAID APPEAL SHALL BE BINDING UPON SUCH  MUNICIPAL  OFFI-
 CER, CLERK OR DEPARTMENT AND ALL PARTIES TO SAID APPEAL.
   §  1570.  EXEMPTION  FROM  PROSECUTION.  NO PERSON, FIRM, PARTNERSHIP,
 CORPORATION OR ORGANIZATION LAWFULLY CONDUCTING, OR PARTICIPATING IN THE
 CONDUCT OF, GAMES OF CHANCE, OR PERMITTING THE CONDUCT UPON ANY PREMISES
 OWNED OR LEASED BY HIM, HER OR IT  UNDER  ANY  LICENSE  LAWFULLY  ISSUED
 PURSUANT TO THIS TITLE, SHALL BE LIABLE TO PROSECUTION OR CONVICTION FOR
 VIOLATION  OF  ANY  PROVISION  OF ARTICLE TWO HUNDRED TWENTY-FIVE OF THE
 PENAL LAW OR ANY OTHER LAW OR ORDINANCE TO THE EXTENT THAT SUCH  CONDUCT
 IS  SPECIFICALLY  AUTHORIZED  BY THIS TITLE, BUT THIS IMMUNITY SHALL NOT
 EXTEND TO ANY PERSON OR CORPORATION KNOWINGLY CONDUCTING OR  PARTICIPAT-
 ING  IN THE CONDUCT OF GAMES OF CHANCE UNDER ANY LICENSE OBTAINED BY ANY
 FALSE PRETENSE OR BY ANY FALSE STATEMENT MADE  IN  ANY  APPLICATION  FOR
 LICENSE  OR OTHERWISE, OR PERMITTING THE CONDUCT UPON ANY PREMISES OWNED
 OR LEASED BY HIM, HER OR IT OF ANY GAME OF CHANCE  CONDUCTED  UNDER  ANY
 LICENSE  KNOWN TO HIM, HER OR IT TO HAVE BEEN OBTAINED BY ANY SUCH FALSE
 PRETENSE OR STATEMENT.
   § 1571. OFFENSES; FORFEITURE OF LICENSE; INELIGIBILITY  TO  APPLY  FOR
 LICENSE.  ANY PERSON, FIRM, PARTNERSHIP, CORPORATION OR ORGANIZATION WHO
 OR THAT SHALL:
   1. MAKE ANY MATERIAL  FALSE  STATEMENT  IN  ANY  APPLICATION  FOR  ANY
 LICENSE AUTHORIZED TO BE ISSUED UNDER THIS TITLE;
   2. PAY OR RECEIVE, FOR THE USE OF ANY PREMISES FOR CONDUCTING GAMES OF
 CHANCE,  A  RENTAL  IN EXCESS OF THE AMOUNT SPECIFIED AS THE PERMISSIBLE
 RENT IN THE LICENSE PROVIDED FOR IN SUBDIVISION THREE OF SECTION FIFTEEN
 HUNDRED SIXTY-TWO OF THIS TITLE;
   3. FAIL TO KEEP SUCH BOOKS AND RECORDS AS SHALL FULLY AND TRULY RECORD
 ALL TRANSACTIONS CONNECTED WITH THE CONDUCTING OF GAMES OF CHANCE OR THE
 LEASING OF PREMISES TO BE USED FOR THE CONDUCT OF GAMES OF CHANCE;

 S. 2009                            143                           A. 3009

   4. FALSIFY OR MAKE ANY FALSE ENTRY IN ANY BOOKS OR RECORDS SO  FAR  AS
 THEY  RELATE  IN  ANY  MANNER  TO THE CONDUCT OF GAMES OF CHANCE, TO THE
 DISPOSITION OF THE PROCEEDS THEREOF AND TO THE APPLICATION OF THE  RENTS
 RECEIVED BY ANY AUTHORIZED ORGANIZATION;
   5. DIVERT OR PAY ANY PORTION OF THE NET PROCEEDS OF ANY GAME OF CHANCE
 TO  ANY PERSON, FIRM, PARTNERSHIP, CORPORATION, EXCEPT IN FURTHERANCE OF
 ONE OR MORE OF THE LAWFUL PURPOSES DEFINED IN THIS TITLE; SHALL BE GUIL-
 TY OF A MISDEMEANOR AND SHALL FORFEIT  ANY  LICENSE  ISSUED  UNDER  THIS
 TITLE  AND  BE INELIGIBLE TO APPLY FOR A LICENSE UNDER THIS TITLE FOR AT
 LEAST ONE YEAR THEREAFTER.
   § 1572. UNLAWFUL GAMES OF CHANCE. 1. ANY PERSON,  ASSOCIATION,  CORPO-
 RATION  OR ORGANIZATION HOLDING, OPERATING OR CONDUCTING A GAME OR GAMES
 OF CHANCE IS GUILTY OF A MISDEMEANOR, EXCEPT WHEN OPERATING, HOLDING  OR
 CONDUCTING:
   (A) IN ACCORDANCE WITH A VALID LICENSE ISSUED PURSUANT TO THIS TITLE;
   (B)  ON  BEHALF  OF A BONA FIDE ORGANIZATION OF PERSONS SIXTY YEARS OF
 AGE OR OVER, COMMONLY REFERRED TO AS SENIOR  CITIZENS,  SOLELY  FOR  THE
 PURPOSE OF AMUSEMENT AND RECREATION OF ITS MEMBERS WHERE:
   (1)  THE  ORGANIZATION  HAS APPLIED FOR AND RECEIVED AN IDENTIFICATION
 NUMBER FROM THE COMMISSION;
   (2) NO PLAYER OR OTHER PERSON FURNISHES  ANYTHING  OF  VALUE  FOR  THE
 OPPORTUNITY TO PARTICIPATE;
   (3) THE PRIZES AWARDED OR TO BE AWARDED ARE NOMINAL;
   (4) NO PERSON OTHER THAN A BONA FIDE ACTIVE MEMBER OF THE ORGANIZATION
 PARTICIPATES IN THE CONDUCT OF THE GAMES; AND
   (5)  NO  PERSON  IS PAID FOR CONDUCTING OR ASSISTING IN THE CONDUCT OF
 THE GAME OR GAMES; OR
   (C) A RAFFLE PURSUANT TO SECTION FIFTEEN HUNDRED  FIFTY-NINE  OF  THIS
 TITLE.
   2.  THE  PROVISIONS  OF THIS SECTION SHALL APPLY TO ALL MUNICIPALITIES
 WITHIN THIS STATE, INCLUDING THOSE MUNICIPALITIES WHERE  THIS  TITLE  IS
 INOPERATIVE.
   §  1573. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS. EXCEPT AS PROVIDED
 IN SECTION FIFTEEN HUNDRED SEVENTY-TWO OF THIS TITLE, THE PROVISIONS  OF
 THIS TITLE SHALL REMAIN INOPERATIVE IN ANY MUNICIPALITY UNLESS AND UNTIL
 A  PROPOSITION  THEREFOR  SUBMITTED  AT A GENERAL OR SPECIAL ELECTION IN
 SUCH MUNICIPALITY SHALL BE APPROVED BY A VOTE OF  THE  MAJORITY  OF  THE
 QUALIFIED ELECTORS IN SUCH MUNICIPALITY VOTING THEREON.
   §  1574.  AMENDMENT  AND REPEAL OF LOCAL LAWS AND ORDINANCES. ANY SUCH
 LOCAL LAW OR ORDINANCE MAY BE AMENDED, FROM TIME TO TIME, OR REPEALED BY
 THE COMMON COUNCIL OR OTHER LOCAL LEGISLATIVE BODY OF  THE  MUNICIPALITY
 THAT  ENACTED IT, BY A TWO-THIRDS VOTE OF SUCH LEGISLATIVE BODY AND SUCH
 AMENDMENT OR REPEAL, AS THE CASE MAY BE, MAY BE MADE EFFECTIVE AND OPER-
 ATIVE NOT EARLIER THAN THIRTY DAYS FOLLOWING THE EFFECTIVE DATE  OF  THE
 LOCAL  LAW  OR ORDINANCE EFFECTING SUCH AMENDMENT OR REPEAL, AS THE CASE
 MAY BE, AND THE APPROVAL OF A MAJORITY OF THE ELECTORS OF  SUCH  MUNICI-
 PALITY  SHALL  NOT  BE  A CONDITION PREREQUISITE TO THE TAKING EFFECT OF
 SUCH LOCAL LAW OR ORDINANCE.
   § 1575. MANUFACTURERS OF BELL JARS; REPORTS AND RECORDS. 1.   DISTRIB-
 UTION;  MANUFACTURERS. FOR BUSINESS CONDUCTED IN THIS STATE, MANUFACTUR-
 ERS LICENSED BY THE COMMISSION TO SELL BELL JAR TICKETS SHALL SELL  SUCH
 TICKETS  ONLY  TO DISTRIBUTORS LICENSED BY THE COMMISSION. MANUFACTURERS
 OF BELL JAR TICKETS, SEAL CARDS, MERCHANDISE BOARDS AND COIN BOARDS  MAY
 SUBMIT  SAMPLES,  ARTISTS'  RENDERINGS  OR COLOR PHOTOCOPIES OF PROPOSED
 BELL JAR TICKETS, SEAL CARDS, MERCHANDISE BOARDS,  COIN  BOARDS,  PAYOUT
 CARDS AND FLARES FOR REVIEW AND APPROVAL BY THE COMMISSION. WITHIN THIR-

 S. 2009                            144                           A. 3009
 
 TY  DAYS  OF  RECEIPT  OF SUCH SAMPLE OR RENDERING, THE COMMISSION SHALL
 APPROVE OR DENY SUCH BELL JAR TICKETS. FOLLOWING APPROVAL OF A RENDERING
 OF A BELL JAR TICKET, SEAL CARD, MERCHANDISE BOARD OR COIN BOARD BY  THE
 COMMISSION,  THE MANUFACTURER SHALL SUBMIT TO THE COMMISSION A SAMPLE OF
 THE PRINTED BELL JAR TICKET, SEAL CARD, MERCHANDISE BOARD,  COIN  BOARD,
 PAYOUT  CARD  AND  FLARE  FOR  SUCH GAME. SUCH SAMPLE SHALL BE SUBMITTED
 PRIOR TO THE SALE OF THE GAME TO ANY LICENSED DISTRIBUTOR FOR RESALE  IN
 THIS STATE. FOR COIN BOARDS AND MERCHANDISE BOARDS, NOTHING HEREIN SHALL
 REQUIRE  THE  SUBMITTAL  OF  ACTUAL  COINS OR MERCHANDISE AS PART OF THE
 APPROVAL PROCESS. ANY LICENSED MANUFACTURER WHO WILLFULLY  VIOLATES  THE
 PROVISIONS OF THIS SECTION SHALL:
   (A)  UPON  SUCH FIRST OFFENSE, HAVE ITS LICENSE SUSPENDED FOR A PERIOD
 OF THIRTY DAYS;
   (B) UPON SUCH SECOND OFFENSE, PARTICIPATE IN A HEARING TO BE CONDUCTED
 BY THE COMMISSION, AND SURRENDER ITS LICENSE FOR SUCH PERIOD  AS  RECOM-
 MENDED BY THE COMMISSION; AND
   (C)  UPON SUCH THIRD OR SUBSEQUENT OFFENSE, HAVE ITS LICENSE SUSPENDED
 FOR A PERIOD OF ONE YEAR AND SHALL BE GUILTY OF A CLASS  E  FELONY.  ANY
 UNLICENSED  MANUFACTURER  WHO  VIOLATES  THE  PROVISIONS OF THIS SECTION
 SHALL BE GUILTY OF A CLASS E FELONY.
   2. BAR CODES. THE MANUFACTURER SHALL AFFIX TO THE FLARE OF  EACH  BELL
 JAR  GAME  A  BAR  CODE  THAT PROVIDES ALL INFORMATION PRESCRIBED BY THE
 COMMISSION AND SHALL REQUIRE THAT THE BAR CODE INCLUDE THE SERIAL NUMBER
 OF THE GAME THE FLARE DESCRIBES. A MANUFACTURER SHALL ALSO AFFIX TO  THE
 OUTSIDE OF THE CONTAINER OR WRAPPING CONTAINING A DEAL OF BELL JAR TICK-
 ETS  A  BAR  CODE PROVIDING ALL INFORMATION PRESCRIBED BY THE COMMISSION
 AND CONTAINING THE SAME INFORMATION AS  THE  BAR  CODE  AFFIXED  TO  THE
 FLARE.  THE  COMMISSION  MAY ALSO PRESCRIBE ADDITIONAL BAR CODE REQUIRE-
 MENTS. NO PERSON MAY ALTER THE BAR CODE THAT APPEARS ON THE FLARE OR  ON
 THE  OUTSIDE  OF THE CONTAINER OR WRAPPING CONTAINING A DEAL OF BELL JAR
 TICKETS. POSSESSION OF A DEAL OF BELL JAR TICKETS THAT HAS  A  BAR  CODE
 DIFFERENT  FROM  THE  SERIAL  NUMBER OF THE DEAL INSIDE THE CONTAINER OR
 WRAPPING AS EVIDENCED ON THE FLARE IS  PRIMA  FACIE  EVIDENCE  THAT  THE
 POSSESSOR HAS ALTERED THE BAR CODE ON THE CONTAINER OR WRAPPING.
   3.  BELL  JAR FLARES. (A) A MANUFACTURER SHALL NOT SHIP OR CAUSE TO BE
 SHIPPED INTO THIS STATE ANY DEAL OF BELL JAR TICKETS THAT DOES NOT  HAVE
 ITS  OWN  INDIVIDUAL  FLARE  AS  REQUIRED  FOR  THAT DEAL BY RULE OF THE
 COMMISSION.  A PERSON OTHER THAN A LICENSED MANUFACTURER SHALL NOT MANU-
 FACTURE, ALTER, MODIFY OR OTHERWISE CHANGE A FLARE FOR A  DEAL  OF  BELL
 JAR  TICKETS EXCEPT AS AUTHORIZED BY THIS TITLE OR RULES AND REGULATIONS
 PROMULGATED BY THE COMMISSION.
   (B) THE FLARE FOR EACH DEAL OF BELL JAR TICKETS SOLD BY A MANUFACTURER
 IN THIS STATE SHALL BE PLACED INSIDE THE WRAPPING OF THE DEAL  THAT  THE
 FLARE DESCRIBES.
   (C) THE BAR CODE AFFIXED TO THE FLARE OF EACH BELL JAR GAME SHALL BEAR
 THE SERIAL NUMBER OF SUCH GAME AS PRESCRIBED BY THE COMMISSION.
   (D) THE FLARE OF EACH BELL JAR GAME SHALL HAVE AFFIXED A BAR CODE THAT
 PROVIDES:
   (1) THE GAME CODE;
   (2) THE SERIAL NUMBER OF THE GAME;
   (3) THE NAME OF THE MANUFACTURER; AND
   (4) OTHER INFORMATION THE COMMISSION BY RULE MAY REQUIRE.
   THE  SERIAL  NUMBER  INCLUDED ON THE BAR CODE SHALL BE THE SAME AS THE
 SERIAL NUMBER OF THE TICKETS INCLUDED IN THE DEAL.  A  MANUFACTURER  WHO
 MANUFACTURES  A  DEAL  OF BELL JAR TICKETS SHALL AFFIX TO THE OUTSIDE OF

 S. 2009                            145                           A. 3009
 
 THE CONTAINER OR WRAPPING CONTAINING THE BELL JAR TICKETS THE  SAME  BAR
 CODE THAT IS AFFIXED TO THE FLARE FOR THAT DEAL.
   (E)  NO PERSON SHALL ALTER THE BAR CODE THAT APPEARS ON THE OUTSIDE OF
 A  CONTAINER  OR  WRAPPING  CONTAINING  A  DEAL  OF  BELL  JAR  TICKETS.
 POSSESSION  OF  A DEAL OF BELL JAR TICKETS THAT HAS A BAR CODE DIFFERENT
 FROM THE BAR CODE OF THE DEAL INSIDE THE CONTAINER OR WRAPPING IS  PRIMA
 FACIE EVIDENCE THAT THE POSSESSOR HAS ALTERED THE BAR CODE ON THE BOX.
   4.  REPORTS  OF  SALES.  A MANUFACTURER WHO SELLS BELL JAR TICKETS FOR
 RESALE IN  THIS  STATE  SHALL  FILE  WITH  THE  COMMISSION,  ON  A  FORM
 PRESCRIBED  BY  THE COMMISSION, A REPORT OF ALL BELL JAR TICKETS SOLD TO
 DISTRIBUTORS IN THE STATE.  THE REPORT SHALL BE FILED  QUARTERLY  ON  OR
 BEFORE  THE TWENTIETH DAY OF THE MONTH SUCCEEDING THE END OF THE QUARTER
 IN WHICH THE SALE WAS MADE. THE COMMISSION MAY REQUIRE THAT  THE  REPORT
 BE SUBMITTED VIA ELECTRONIC MEDIA OR ELECTRONIC DATA TRANSFER.
   5.  INSPECTION.  THE  COMMISSION  MAY  INSPECT  THE  PREMISES,  BOOKS,
 RECORDS, AND INVENTORY OF  A  MANUFACTURER  WITHOUT  NOTICE  DURING  THE
 NORMAL BUSINESS HOURS OF THE MANUFACTURER.
   §  1576.  DISTRIBUTOR  OF BELL JARS; REPORTS AND RECORDS. 1.  DISTRIB-
 UTION; DISTRIBUTORS. ANY DISTRIBUTOR LICENSED IN ACCORDANCE WITH SECTION
 FIFTEEN HUNDRED FIFTY-FIVE OF THIS TITLE TO DISTRIBUTE BELL JAR  TICKETS
 SHALL PURCHASE BELL JAR TICKETS ONLY FROM LICENSED MANUFACTURERS AND MAY
 MANUFACTURE  COIN  BOARDS  AND  MERCHANDISE BOARDS ONLY AS AUTHORIZED IN
 SUBDIVISION TWO OF THIS SECTION. LICENSED DISTRIBUTORS OF BELL JAR TICK-
 ETS SHALL SELL SUCH TICKETS ONLY TO NOT-FOR-PROFIT, CHARITABLE OR  RELI-
 GIOUS ORGANIZATIONS REGISTERED BY THE COMMISSION. ANY LICENSED DISTRIBU-
 TOR WHO WILLFULLY VIOLATES THE PROVISIONS OF THIS SECTION SHALL:
   (A)  UPON  SUCH FIRST OFFENSE, HAVE ITS LICENSE SUSPENDED FOR A PERIOD
 OF THIRTY DAYS;
   (B) UPON SUCH SECOND OFFENSE, PARTICIPATE IN A HEARING TO BE CONDUCTED
 BY THE COMMISSION, AND SURRENDER ITS LICENSE FOR SUCH PERIOD  AS  RECOM-
 MENDED BY THE COMMISSION; AND
   (C)  UPON SUCH THIRD OR SUBSEQUENT OFFENSE, HAVE ITS LICENSE SUSPENDED
 FOR A PERIOD OF ONE YEAR AND SHALL BE GUILTY OF A CLASS  E  FELONY.  ANY
 UNLICENSED  DISTRIBUTOR  WHO  VIOLATES THIS SECTION SHALL BE GUILTY OF A
 CLASS E FELONY.
   2. COIN BOARDS AND MERCHANDISE BOARDS. DISTRIBUTORS OF BELL JAR  TICK-
 ETS  MAY  MANUFACTURE  COIN  BOARDS  AND MERCHANDISE BOARDS ONLY IF SUCH
 BOARDS HAVE BEEN APPROVED BY THE COMMISSION AND HAVE A BAR CODE  AFFIXED
 TO THEM SETTING FORTH ALL INFORMATION REQUIRED BY THE COMMISSION. EXCEPT
 THAT FOR COIN BOARDS AND MERCHANDISE BOARDS, DELINEATION OF THE PRIZE OR
 PRIZE  VALUE NEED NOT BE INCLUDED ON THE GAME TICKET SOLD IN CONJUNCTION
 WITH A COIN BOARD OR MERCHANDISE BOARD.   IN LIEU OF  SUCH  REQUIREMENT,
 THE  DISTRIBUTOR  SHALL BE REQUIRED TO DISCLOSE THE PRIZE LEVELS AND THE
 NUMBER OF WINNERS AT EACH LEVEL AND SHALL  PRINT  CLEARLY  ON  THE  GAME
 TICKET  THAT  A  TICKET  HOLDER MAY OBTAIN THE PRIZE AND PRIZE VALUE FOR
 EACH PRIZE LEVEL BY REFERENCING THE FLARE. SUCH  COIN  BOARDS  SHALL  BE
 SOLD  ONLY BY LICENSED DISTRIBUTORS TO LICENSED AUTHORIZED ORGANIZATIONS
 REGISTERED BY THE COMMISSION IN ACCORDANCE WITH THE PROVISIONS  OF  THIS
 TITLE.
   3.  BUSINESS  RECORDS. A DISTRIBUTOR SHALL KEEP AT EACH PLACE OF BUSI-
 NESS COMPLETE AND ACCURATE RECORDS FOR THAT PLACE OF BUSINESS, INCLUDING
 ITEMIZED INVOICES OF BELL JAR TICKETS HELD AND  PURCHASED.  THE  RECORDS
 MUST  SHOW  THE  NAMES AND ADDRESSES OF PURCHASERS, THE INVENTORY AT THE
 CLOSE OF EACH PERIOD FOR WHICH A RETURN IS REQUIRED, ALL BELL JAR  TICK-
 ETS  ON  HAND  AND  OTHER PERTINENT PAPERS AND DOCUMENTS RELATING TO THE
 PURCHASE, SALE OR DISPOSITION OF BELL JAR TICKETS AS MAY BE REQUIRED  BY

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 THE  COMMISSION.  BOOKS, RECORDS, ITEMIZED INVOICES AND OTHER PAPERS AND
 DOCUMENTS REQUIRED BY THIS SECTION SHALL BE KEPT  FOR  A  PERIOD  OF  AT
 LEAST  FOUR  YEARS  AFTER  THE DATE OF THE DOCUMENTS, OR THE DATE OF THE
 ENTRIES  APPEARING  IN  THE RECORDS, UNLESS THE COMMISSION AUTHORIZES IN
 WRITING THEIR DESTRUCTION OR DISPOSAL AT AN EARLIER DATE. A  PERSON  WHO
 VIOLATES THIS SECTION SHALL BE GUILTY OF A MISDEMEANOR.
   4.  SALES  RECORDS.  A DISTRIBUTOR SHALL MAINTAIN A RECORD OF ALL BELL
 JAR TICKETS THAT IT SELLS. THE RECORD SHALL INCLUDE,  BUT  NEED  NOT  BE
 LIMITED TO:
   (A)  THE  IDENTITY  OF  THE  MANUFACTURER  FROM  WHOM  THE DISTRIBUTOR
 PURCHASED THE PRODUCT;
   (B) THE SERIAL NUMBER OF THE PRODUCT;
   (C) THE NAME, ADDRESS AND LICENSE  OR  EXEMPT  PERMIT  NUMBER  OF  THE
 ORGANIZATION OR PERSON TO WHICH THE SALE WAS MADE;
   (D) THE DATE OF THE SALE;
   (E) THE NAME OF THE PERSON WHO ORDERED THE PRODUCT;
   (F) THE NAME OF THE PERSON WHO RECEIVED THE PRODUCT;
   (G) THE TYPE OF PRODUCT;
   (H) THE SERIAL NUMBER OF THE PRODUCT;
   (I)  THE  ACCOUNT NUMBER IDENTIFYING THE SALE FROM THE MANUFACTURER TO
 DISTRIBUTOR AND  THE  ACCOUNT  NUMBER  IDENTIFYING  THE  SALE  FROM  THE
 DISTRIBUTOR TO THE LICENSED ORGANIZATION; AND
   (J)  THE  NAME,  FORM NUMBER OR OTHER IDENTIFYING INFORMATION FOR EACH
 GAME.
   5. INVOICES. A DISTRIBUTOR SHALL SUPPLY WITH EACH SALE OF A  BELL  JAR
 PRODUCT AN ITEMIZED INVOICE SHOWING:
   (A) THE DISTRIBUTOR'S NAME AND ADDRESS;
   (B) THE PURCHASER'S NAME, ADDRESS, AND LICENSE NUMBER;
   (C) THE DATE OF THE SALE;
   (D)  THE  ACCOUNT NUMBER IDENTIFYING THE SALE FROM THE MANUFACTURER TO
 DISTRIBUTOR;
   (E) THE ACCOUNT NUMBER IDENTIFYING THE SALE FROM  THE  DISTRIBUTOR  TO
 THE LICENSED ORGANIZATION; AND
   (F) THE DESCRIPTION OF THE DEALS, INCLUDING THE FORM NUMBER, THE SERI-
 AL  NUMBER  AND  THE  IDEAL GROSS FROM EVERY DEAL OF BELL JAR OR SIMILAR
 GAME.
   6. REPORTS. A DISTRIBUTOR SHALL REPORT QUARTERLY TO THE COMMISSION, ON
 A FORM PRESCRIBED BY THE COMMISSION, ITS SALES OF EACH TYPE OF BELL  JAR
 DEAL  OR  TICKETS. THIS REPORT SHALL BE FILED QUARTERLY ON OR BEFORE THE
 TWENTIETH DAY OF THE MONTH SUCCEEDING THE END OF THE  QUARTER  IN  WHICH
 THE  SALE WAS MADE. THE COMMISSION MAY REQUIRE THAT A DISTRIBUTOR SUBMIT
 THE QUARTERLY REPORT AND INVOICES REQUIRED BY THIS SECTION VIA ELECTRON-
 IC MEDIA OR ELECTRONIC DATA TRANSFER.
   7. THE COMMISSION MAY INSPECT THE PREMISES, BOOKS, RECORDS AND  INVEN-
 TORY OF A DISTRIBUTOR WITHOUT NOTICE DURING THE NORMAL BUSINESS HOURS OF
 THE DISTRIBUTOR.
   8.  CERTIFIED  PHYSICAL  INVENTORY.  THE COMMISSION MAY, UPON REQUEST,
 REQUIRE A DISTRIBUTOR TO FURNISH A CERTIFIED PHYSICAL INVENTORY  OF  ALL
 BELL  JAR  TICKETS IN STOCK. THE INVENTORY SHALL CONTAIN THE INFORMATION
 REQUESTED BY THE COMMISSION.
   § 1577. TRANSFER RESTRICTIONS. NOT-FOR-PROFIT, CHARITABLE OR RELIGIOUS
 ORGANIZATIONS AUTHORIZED TO SELL BELL JAR  TICKETS  IN  ACCORDANCE  WITH
 THIS  TITLE  SHALL  PURCHASE  BELL  JAR  TICKETS  ONLY FROM DISTRIBUTORS
 LICENSED BY THE COMMISSION. NO NOT-FOR-PROFIT, CHARITABLE  OR  RELIGIOUS
 ORGANIZATION  SHALL  SELL, DONATE OR OTHERWISE TRANSFER BELL JAR TICKETS
 TO ANY OTHER NOT-FOR-PROFIT, CHARITABLE OR RELIGIOUS ORGANIZATION.

 S. 2009                            147                           A. 3009
 
   § 1578. BELL JARS COMPLIANCE AND ENFORCEMENT. 1. IN THE CASE  OF  BELL
 JARS,  THE  LICENSEE, UPON FILING FINANCIAL STATEMENTS OF BELL JAR OPER-
 ATIONS, SHALL ALSO TENDER TO THE COMMISSION A SUM IN THE AMOUNT OF  FIVE
 PERCENT  OF  THE  NET  PROCEEDS  FROM THE SALE OF BELL JAR TICKETS, SEAL
 CARDS,  MERCHANDISE  BOARDS AND COIN BOARDS, IF ANY, FOR THAT PORTION OF
 LICENSE PERIOD COVERED BY SUCH STATEMENT.
   2. UNSOLD TICKETS OF THE BELL JAR DEAL SHALL BE KEPT ON  FILE  BY  THE
 SELLING  ORGANIZATION  FOR  INSPECTION BY THE COMMISSION FOR A PERIOD OF
 ONE YEAR FOLLOWING THE DATE UPON WHICH THE RELEVANT FINANCIAL  STATEMENT
 WAS RECEIVED BY THE COMMISSION.
   3.  ONE-HALF OF ONE PERCENT OF THE FEE SET FORTH IN SUBDIVISION ONE OF
 THIS SECTION RECEIVED FROM AUTHORIZED VOLUNTEER FIRE COMPANIES SHALL  BE
 PAID  TO  THE  NEW  YORK STATE EMERGENCY SERVICES REVOLVING LOAN ACCOUNT
 ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-PP  OF  THE  STATE  FINANCE
 LAW.
   4.  THE COMMISSION SHALL SUBMIT TO THE DIRECTOR OF THE DIVISION OF THE
 BUDGET AN ANNUAL PLAN THAT DETAILS THE AMOUNT OF  MONEY  THE  COMMISSION
 DEEMS  NECESSARY  TO  MAINTAIN OPERATIONS, COMPLIANCE AND ENFORCEMENT OF
 THE PROVISIONS OF THIS TITLE AND  THE  COLLECTION  OF  THE  LICENSE  FEE
 AUTHORIZED  BY THIS SECTION.  CONTINGENT UPON THE APPROVAL OF THE DIREC-
 TOR OF THE DIVISION OF THE BUDGET, THE  COMMISSION  SHALL  PAY  INTO  AN
 ACCOUNT, TO BE KNOWN AS THE BELL JAR COLLECTION ACCOUNT, UNDER THE JOINT
 CUSTODY  OF  THE  COMPTROLLER  AND  THE  COMMISSION, THE TOTAL AMOUNT OF
 LICENSE FEES COLLECTED PURSUANT TO THIS SECTION. WITH  THE  APPROVAL  OF
 THE  DIRECTOR  OF THE DIVISION OF THE BUDGET, MONIES TO BE USED TO MAIN-
 TAIN THE OPERATIONS NECESSARY TO ENFORCE THE PROVISIONS  OF  THIS  TITLE
 AND  THE  COLLECTION OF THE LICENSE FEE IMPOSED BY THIS SECTION SHALL BE
 PAID OUT OF SUCH ACCOUNT ON THE AUDIT AND WARRANT OF THE COMPTROLLER  ON
 VOUCHERS  CERTIFIED  OR  APPROVED BY THE DIRECTOR OF THE DIVISION OF THE
 BUDGET OR THE DIRECTOR'S DULY DESIGNATED OFFICIAL. THOSE MONIES THAT ARE
 NOT USED TO MAINTAIN OPERATIONS NECESSARY TO ENFORCE THE  PROVISIONS  OF
 THIS  TITLE  AND  THE  COLLECTION  OF THE LICENSE FEE AUTHORIZED BY THIS
 SECTION SHALL BE PAID OUT OF SUCH AMOUNT ON THE AUDIT AND WARRANT OF THE
 STATE COMPTROLLER AND SHALL BE CREDITED TO THE GENERAL FUND.
   § 3. Section 129 of the racing, pari-mutuel wagering and breeding law,
 as added by section 1 of part A of chapter 60 of the laws  of  2012,  is
 amended to read as follows:
   §  129.  Construction  of other laws or provisions. Unless the context
 [shall require] REQUIRES otherwise, the terms "division of the lottery",
 "state quarter horse  racing  commission",  "state  racing  commission",
 "state  harness racing commission", "state racing and wagering board" or
 "board" wherever occurring in any of the provisions of this  chapter  or
 of any other law, or, in any official books, records, instruments, rules
 or papers, shall hereafter mean and refer to the state gaming commission
 created  by  section  one hundred two of this article. The provisions of
 article three of this chapter shall be inapplicable to  article  two  of
 this chapter; and the provisions of such article two shall be inapplica-
 ble to such article three, except that section two hundred thirty-one of
 such  article  two shall apply to such article three. UNLESS THE CONTEXT
 REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 19-B OF THE EXECUTIVE LAW"
 WHEREVER OCCURRING IN ANY LAW,  OR,  IN  ANY  OFFICIAL  BOOKS,  RECORDS,
 INSTRUMENTS,  RULES  OR PAPERS, SHALL HEREAFTER MEAN AND REFER TO TITLES
 ONE AND TWO OF ARTICLE FIFTEEN  OF  THIS  CHAPTER.  UNLESS  THE  CONTEXT
 REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 14-H OF THE GENERAL MUNIC-
 IPAL  LAW"  WHEREVER  OCCURRING  IN  ANY LAW, OR, IN ANY OFFICIAL BOOKS,
 RECORDS, INSTRUMENTS, RULES OR PAPERS, SHALL HEREAFTER MEAN AND REFER TO

 S. 2009                            148                           A. 3009
 
 TITLES ONE AND THREE OF ARTICLE FIFTEEN  OF  THIS  CHAPTER.  UNLESS  THE
 CONTEXT REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 9-A OF THE GENERAL
 MUNICIPAL LAW" WHEREVER OCCURRING IN ANY LAW, OR, IN ANY OFFICIAL BOOKS,
 RECORDS, INSTRUMENTS, RULES OR PAPERS, SHALL HEREAFTER MEAN AND REFER TO
 TITLES ONE AND FOUR OF ARTICLE FIFTEEN OF THIS CHAPTER.
   §  4.  Paragraph  (b)  of  subdivision 2 of section 103 of the racing,
 pari-mutuel wagering and breeding law, as added by section 1 of  part  A
 of chapter 60 of the laws of 2012, is amended as follows:
   (b)  Charitable  gaming.  The  division  of charitable gaming shall be
 responsible for the supervision  and  administration  of  the  games  of
 chance  licensing  law,  bingo  licensing  law  and bingo control law as
 prescribed by [articles nine-A and fourteen-H of the  general  municipal
 law  and  nineteen-B  of  the  executive  law]  ARTICLE  FIFTEEN OF THIS
 CHAPTER.
   § 5. Subdivision 1 and paragraph (b) of subdivision 3 of  section  151
 of  the  social services law, subdivision 1 as amended and paragraph (b)
 of subdivision 3 as added by section 2 of part F of chapter  58  of  the
 laws of 2014, are amended to read as follows:
   1. Unauthorized transactions. Except as otherwise provided in subdivi-
 sion  two  of  this  section, no person, firm, establishment, entity, or
 corporation (a) licensed under the provisions of the alcoholic  beverage
 control  law  to  sell  liquor  and/or  wine  at retail for off-premises
 consumption; (b) licensed to sell beer at wholesale and also  authorized
 to  sell  beer  at  retail for off-premises consumption; (c) licensed or
 authorized to conduct pari-mutuel wagering activity  under  the  racing,
 pari-mutuel  wagering  and  breeding law; (d) licensed to participate in
 charitable gaming under [article fourteen-H of  the  general  municipal]
 TITLE  THREE  OF ARTICLE FIFTEEN OF THE RACING, PARI-MUTUEL WAGERING AND
 BREEDING law; (e) licensed to participate in the operation  of  a  video
 lottery  facility  under section one thousand six hundred seventeen-a of
 the tax law; (f) licensed to operate a  gaming  facility  under  section
 [one  thousand three] THIRTEEN hundred eleven of the racing, pari-mutuel
 wagering and breeding law; or (g) providing adult-oriented entertainment
 in which performers disrobe or perform in an unclothed state for  enter-
 tainment,  or  making available the venue in which performers disrobe or
 perform in an unclothed state for entertainment, shall  cash  or  accept
 any public assistance check or electronic benefit transfer device issued
 by a public welfare official or department, or agent thereof, as and for
 public assistance.
   (b)  A  violation of the provisions of subdivision one of this section
 by any person, corporation or entity licensed to operate a gaming facil-
 ity under section one thousand three hundred eleven of the racing, pari-
 mutuel wagering and breeding law; licensed under  section  one  thousand
 six  hundred  seventeen-a of the tax law to participate in the operation
 of a video lottery facility; licensed or authorized to conduct  pari-mu-
 tuel  wagering  under the racing, pari-mutuel wagering and breeding law;
 or licensed to participate in charitable  gaming  under  [article  four-
 teen-H  of  the general municipal] TITLE THREE OF ARTICLE FIFTEEN OF THE
 RACING, PARI-MUTUEL  WAGERING  AND  BREEDING  law,  shall  subject  such
 person, corporation or entity to disciplinary action pursuant to section
 one  hundred  four  of the racing, pari-mutuel wagering and breeding law
 and section one thousand six hundred seven of the  tax  law,  which  may
 include  revocation,  cancellation  or  suspension  of  such  license or
 authorization.

 S. 2009                            149                           A. 3009
 
   § 6. Paragraph 3 of subdivision (c) of section 290 of the tax law,  as
 amended  by  chapter  547  of  the  laws  of 1987, is amended to read as
 follows:
   (3)  Any  income  derived  from the conduct of games of chance or from
 rental of premises for the conduct of games  of  chance  pursuant  to  a
 license  granted  under  TITLE  FOUR  OF  article [nine-A of the general
 municipal] FIFTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING  law
 shall not be subject to tax under this article.
   §  7.  This  act shall take effect on the ninetieth day after it shall
 have become a law.
 
                                  PART NN
 
   Section 1. Section 207 of the racing, pari-mutuel wagering and  breed-
 ing law, as added by chapter 18 of the laws of 2008, paragraphs a, b and
 c  of  subdivision 1 as added by section 4, paragraph c of subdivision 1
 as added by section 5 and subdivision 5 as added by section 6 of chapter
 457 of the laws of 2012, and paragraph d of subdivision 1 as amended  by
 section  1  of  part  C of chapter 73 of the laws of 2016, is amended to
 read as follows:
   § 207. Board of directors of a franchised  corporation.  1.    a.  The
 board  of directors, to be called the New York racing association [reor-
 ganization] board, shall consist of [seventeen] FIFTEEN  members[,  five
 of  whom  shall  be  elected by the present class A directors of The New
 York Racing Association, Inc., eight to be] WHO SHALL HAVE EQUAL  VOTING
 RIGHTS:  SIX  appointed by the governor[, two to] EACH OF WHOM MUST BE A
 RESIDENT OF NEW YORK STATE, AND ONE OF WHOM SHALL be appointed  [by]  ON
 THE RECOMMENDATION OF the temporary president of the senate and [two to]
 ONE OF WHOM SHALL be appointed [by] ON THE RECOMMENDATION OF the speaker
 of  the  assembly; EIGHT APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW
 YORK RACING ASSOCIATION REORGANIZATION BOARD  OF  DIRECTORS  CONSTITUTED
 PURSUANT TO CHAPTER FOUR HUNDRED FIFTY-SEVEN OF THE LAWS OF TWO THOUSAND
 TWELVE,  WHICH  SHALL  CONTINUE TO EXIST UNTIL SUCH TIME AS THE APPOINT-
 MENTS REQUIRED HEREUNDER ARE MADE; AND ONE WHO SHALL  BE  THE  PRESIDENT
 AND  CHIEF  EXECUTIVE  OFFICER OF THE FRANCHISED CORPORATION, EX OFFICIO
 AND WITHOUT TERM LIMITATION. THE NEW YORK RACING ASSOCIATION BOARD SHALL
 HAVE TWO EX OFFICIO, NON-VOTING MEMBERS: ONE APPOINTED BY THE  NEW  YORK
 THOROUGHBRED BREEDERS, INC., AND ONE APPOINTED BY THE NEW YORK THOROUGH-
 BRED  HORSEMEN'S  ASSOCIATION REPRESENTING AT LEAST FIFTY-ONE PERCENT OF
 THE HORSEMEN USING THE FACILITIES OF THE FRANCHISED CORPORATION. THE NEW
 YORK RACING ASSOCIATION BOARD MAY INCLUDE ADDITIONAL  EX  OFFICIO,  NON-
 VOTING MEMBERS AS APPOINTED PURSUANT TO A MAJORITY VOTE OF THE BOARD.
   (i)  The  governor  shall  nominate  a member to serve as chair FOR AN
 INITIAL TERM OF THREE YEARS, WHO SHALL SERVE  AT  THE  PLEASURE  OF  THE
 GOVERNOR,  subject  to  confirmation  by  majority vote of the board [of
 directors. All non-ex officio members shall have equal  voting  rights].
 THEREAFTER,  THE  BOARD  SHALL  ELECT  ITS CHAIR, WHO SHALL SERVE AT THE
 PLEASURE OF THE BOARD, FROM AMONG ITS MEMBERS.
   (ii) THE TERM OF VOTING MEMBERSHIP ON THE NEW YORK RACING  ASSOCIATION
 BOARD  SHALL  BE  THREE YEARS. INDIVIDUAL APPOINTEES SHALL BE LIMITED TO
 SERVING AS A VOTING MEMBER THE LESSER OF  THREE  TERMS  OR  NINE  YEARS.
 NOTWITHSTANDING THE FOREGOING, THE INITIAL TERM OF TWO MEMBERS APPOINTED
 BY THE GOVERNOR AND THREE MEMBERS APPOINTED BY THE NEW YORK RACING ASSO-
 CIATION  REORGANIZATION BOARD SHALL EXPIRE MARCH THIRTY-FIRST, TWO THOU-
 SAND EIGHTEEN; THE INITIAL TERM OF TWO MEMBERS APPOINTED BY THE NEW YORK
 RACING ASSOCIATION REORGANIZATION BOARD AND THREE MEMBERS  APPOINTED  BY

 S. 2009                            150                           A. 3009
 
 THE  GOVERNOR SHALL EXPIRE ON MARCH THIRTY-FIRST, TWO THOUSAND NINETEEN;
 AND THE REMAINING MEMBERS SHALL SERVE FULL THREE-YEAR TERMS.
   (III) In the event of a member vacancy occurring by death, resignation
 or  otherwise, the respective appointing [officer or officers] AUTHORITY
 shall appoint a successor  who  shall  hold  office  for  the  unexpired
 portion  of  the  term.  [A  vacancy from the members appointed from the
 present board of The New York Racing Association, Inc., shall be  filled
 by  the  remaining  such members] IN THE CASE OF VACANCIES AMONG MEMBERS
 APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING  ASSOCIATION
 REORGANIZATION  BOARD  OF DIRECTORS CONSTITUTED PURSUANT TO CHAPTER FOUR
 HUNDRED FIFTY-SEVEN OF THE LAWS OF  TWO  THOUSAND  TWELVE,  APPOINTMENTS
 THEREAFTER  SHALL  BE  MADE  BY  THE EXECUTIVE COMMITTEE OF THE NEW YORK
 RACING ASSOCIATION BOARD AS CONSTITUTED BY THE CHAPTER OF  THE  LAWS  OF
 TWO THOUSAND SEVENTEEN THAT AMENDED THIS SECTION.
   b. The franchised corporation shall establish a compensation committee
 to fix salary guidelines, such guidelines to be consistent with an oper-
 ation  of other first class thoroughbred racing operations in the United
 States; a finance AND AUDIT committee, to review  annual  operating  and
 capital  budgets  for  each  of  the  three racetracks; a nominating AND
 GOVERNANCE committee, to nominate any new directors to be designated  by
 the  franchised  corporation  to  replace  its existing directors AND BE
 RESPONSIBLE FOR ALL ISSUES AFFECTING THE GOVERNANCE  OF  THE  FRANCHISED
 CORPORATION;  AN  EQUINE SAFETY COMMITTEE; A RACING COMMITTEE TO ADDRESS
 ALL ISSUES RELATED TO RACING OPERATIONS;  and  an  executive  committee.
 Each  of  the compensation, finance, nominating and executive committees
 shall include at least one [of] PUBLIC MEMBER FROM AMONG  the  directors
 appointed by the governor[, and the executive committee shall include at
 least  one  of the directors appointed by the temporary president of the
 senate and at least one of the directors appointed by the speaker of the
 assembly].
   [b. In addition to these voting members, the board shall have  two  ex
 officio  members  to  advise  on  critical  economic  and  equine health
 concerns of the racing industry, one appointed by the New York Thorough-
 bred Breeders Inc., and one  appointed  by  the  New  York  thoroughbred
 horsemen's  association  (or  such  other  entity  as  is  certified and
 approved pursuant to section two hundred twenty-eight of this article).
   c. All directors shall serve  at  the  pleasure  of  their  appointing
 authority.]
   c. Upon the effective date of this paragraph, the structure of the NEW
 YORK  RACING  ASSOCIATION board [of the franchised corporation] shall be
 deemed to be incorporated within and made part  of  the  certificate  of
 incorporation  of  the  franchised corporation, and no amendment to such
 certificate of incorporation shall be necessary to give  effect  to  any
 such  provision,  and  any  provision  contained within such certificate
 inconsistent in any manner shall be superseded by the provisions of this
 section. Such board shall, however, make appropriate conforming  changes
 to  all  governing documents of the franchised corporation including but
 not limited to corporate by-laws.  Following  such  conforming  changes,
 amendments  to the by-laws of the franchised corporation shall [only] be
 made ONLY by unanimous vote of the board.
   [d. The board, which shall become  effective  upon  appointment  of  a
 majority  of public members, shall terminate five years from its date of
 creation.]
   2. Members of the NEW YORK RACING  ASSOCIATION  board  [of  directors]
 shall  serve  without  compensation  for  their  services, but [publicly
 appointed members of the board] shall be entitled to reimbursement  from

 S. 2009                            151                           A. 3009
 
 the franchised corporation for actual and necessary expenses incurred in
 the performance of their [official] duties FOR THE BOARD.
   3.  Members  of  the NEW YORK RACING ASSOCIATION board [of directors],
 except as otherwise provided by law, may engage  in  PUBLIC  OR  private
 employment, or in a profession or business, however no member shall have
 any  direct  or  indirect  economic interest in any video lottery gaming
 facility, excluding incidental benefits based on purses or awards won in
 the ordinary conduct of racing operations, or  any  direct  or  indirect
 interest  in  any  development undertaken at the racetracks of the state
 racing franchise.
   4. The affirmative vote of a majority  of  members  of  the  NEW  YORK
 RACING ASSOCIATION board [of directors] shall be necessary for the tran-
 saction  of any business or the exercise of any power or function of the
 franchised corporation. The franchised corporation may  delegate  on  an
 annual  basis  to one or more of its members, or its officers, agents or
 employees, such powers and duties as it may deem proper.
   5. Each voting member of the NEW YORK  RACING  ASSOCIATION  board  [of
 directors]  of  the franchised corporation shall annually make a written
 disclosure to [the] SUCH board of any interest  held  by  the  director,
 such director's spouse or unemancipated child, in any entity undertaking
 business  in  the  racing or breeding industry. Such interest disclosure
 shall be promptly updated, in writing, in  the  event  of  any  material
 change.
   The  NEW  YORK RACING ASSOCIATION board shall establish parameters for
 the reporting and disclosure of such director interests.
   6. EACH VOTING  MEMBER  OF  THE  NEW  YORK  RACING  ASSOCIATION  BOARD
 APPOINTED  BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING ASSOCIATION
 REORGANIZATION BOARD OF DIRECTORS  SHALL  SEEK  A  RACETRACK  MANAGEMENT
 LICENSE  ISSUED  BY  THE  GAMING COMMISSION, ANY FEES FOR WHICH SHALL BE
 WAIVED BY THE COMMISSION. NO VOTING MEMBER OF THE BOARD REQUIRED BY  THE
 FOREGOING  TO  SEEK A RACETRACK MANAGEMENT LICENSE MAY VOTE ON ANY BOARD
 MATTER UNTIL SUCH LICENSE IS ISSUED.
   7. FOR PURPOSES OF SECTION TWO HUNDRED TWELVE  OF  THIS  ARTICLE,  THE
 ESTABLISHMENT  OF  THE NEW YORK RACING ASSOCIATION, INC. BOARD OF DIREC-
 TORS UNDER THIS SECTION SHALL NOT CONSTITUTE THE ASSUMPTION OF THE FRAN-
 CHISE BY A SUCCESSOR ENTITY.
   § 2. Subparagraphs (ii), (iii), (vii) and (xvii)  of  paragraph  a  of
 subdivision  8  of  section  212 of the racing, pari-mutuel wagering and
 breeding law, as added by chapter 18 of the laws of 2008,  are  amended,
 subparagraph (xviii) is renumbered subparagraph (xx) and two new subpar-
 agraphs (xviii) and (xix) are added to read as follows:
   (ii)  monitor  and  enforce  compliance with definitive documents that
 comprise the franchise agreement between the franchised corporation  and
 the  state  of New York governing the franchised corporation's operation
 of thoroughbred racing and pari-mutuel wagering at the  racetracks.  The
 franchise  agreement  shall contain objective performance standards that
 shall allow contract review in a manner consistent  with  this  chapter.
 The  franchise  oversight  board shall notify the franchised corporation
 authorized by this chapter in writing of  any  material  breach  of  the
 performance  standards or repeated non-material breaches which the fran-
 chise oversight board may determine collectively constitute  a  material
 breach  of the performance standards. Prior to taking any action against
 such franchised corporation, the franchise oversight board shall provide
 the franchised corporation with the reasonable opportunity to  cure  any
 material  breach  of  the performance standards or repeated non-material
 breaches which the franchise oversight board may determine  collectively

 S. 2009                            152                           A. 3009
 
 constitute a material breach of the performance standards.  Upon a writ-
 ten  finding  of  a  material  breach  of  the  performance standards or
 repeated non-material breaches which the franchise oversight  board  may
 determine  collectively  constitute a material breach of the performance
 standards, the franchise oversight board may recommend  that  the  fran-
 chise agreement be terminated. The franchise oversight board shall refer
 such  recommendation to the [racing and wagering board] COMMISSION for a
 hearing conducted pursuant to section two  hundred  forty-five  of  this
 article for a determination of whether to terminate the franchise agree-
 ment with the franchised corporation;
   (iii)  oversee,  monitor  and  review all significant transactions and
 operations of the franchised corporation  authorized  by  this  chapter;
 provided,  however,  that  nothing  in  this  section shall be deemed to
 reduce, diminish or impede the authority of the [state racing and wager-
 ing board] COMMISSION to, pursuant  to  article  one  of  this  chapter,
 determine  and  enforce  compliance  by  the franchised corporation with
 terms of racing laws and regulations. Such oversight shall include,  but
 not be limited to:
   (A)  review  and  make recommendations concerning the annual operating
 budgets of such franchised corporation;
   (B) review and make recommendations concerning operating revenues  and
 the establishment of a financial plan;
   (C)  review  and  make recommendations concerning accounting, internal
 control systems and security procedures;
   (D) review  such  franchised  corporation's  revenue  and  expenditure
 [polices]  POLICIES which shall include collective bargaining agreements
 management and employee compensation plans, vendor contracts and capital
 improvement plans;
   (E) review such franchise  corporation's  compliance  with  the  laws,
 rules and regulations applicable to its activities;
   (F)  make recommendations for establishing model governance principles
 to improve accountability and transparency; and
   (G) receive, review,  approve  or  disapprove  capital  expense  plans
 submitted annually by the franchised corporation.
   (vii)  review  and  provide  any  recommendations  on all simulcasting
 contracts (buy and sell) that are also subject to prior approval of  the
 [racing and wagering board] COMMISSION;
   (xvii)  request and accept the assistance of any state agency, includ-
 ing but not limited to, the [racing and wagering board, the division  of
 the  lottery] COMMISSION, office of parks, recreation and historic pres-
 ervation, the department of environmental conservation and  the  depart-
 ment  of  taxation  and finance, in obtaining information related to the
 franchised corporation's compliance with  the  terms  of  the  franchise
 agreement;[and]
    (XVIII)  WHEN  THE FRANCHISE OVERSIGHT BOARD DETERMINES THE FINANCIAL
 POSITION OF THE FRANCHISED CORPORATION HAS DEVIATED MATERIALLY FROM  THE
 FRANCHISED CORPORATION'S FINANCIAL PLAN, OR OTHER SUCH RELATED DOCUMENTS
 PROVIDED TO THE FRANCHISE OVERSIGHT BOARD, OR WHEN THE IMPLEMENTATION OF
 SUCH PLAN WOULD, IN THE OPINION OF THE FRANCHISE OVERSIGHT BOARD, POSE A
 SIGNIFICANT  RISK TO THE LIQUIDITY OF THE FRANCHISED CORPORATION, IN ANY
 ORDER OR COMBINATION:
   (A) HIRE, AT THE EXPENSE OF THE FRANCHISED CORPORATION, AN INDEPENDENT
 FINANCIAL ADVISER TO EVALUATE THE FINANCIAL POSITION OF  THE  FRANCHISED
 CORPORATION AND REPORT ON SUCH TO THE FRANCHISE OVERSIGHT BOARD; AND

 S. 2009                            153                           A. 3009
 
   (B)  REQUIRE  THE  FRANCHISED  CORPORATION TO SUBMIT FOR THE FRANCHISE
 OVERSIGHT BOARD'S APPROVAL  A  CORRECTIVE  ACTION  PLAN  ADDRESSING  ANY
 CONCERNS IDENTIFIED AS RISKS BY THE FRANCHISE OVERSIGHT BOARD.
   (XIX)  WHEN  THE FRANCHISE OVERSIGHT BOARD FINDS THE FRANCHISED CORPO-
 RATION HAS EXPERIENCED TWO CONSECUTIVE YEARS OF MATERIAL LOSSES  DUE  TO
 CIRCUMSTANCES  WITHIN  THE  CONTROL  OF  THE  FRANCHISED CORPORATION, AS
 DETERMINED BY THE FRANCHISE OVERSIGHT BOARD, THE BOARD MAY  BY  MAJORITY
 VOTE  REQUEST  THE  DIRECTOR  OF THE BUDGET TO IMPOUND AND ESCROW RACING
 SUPPORTING PAYMENTS ACCRUING TO THE BENEFIT  OF  THE  FRANCHISED  CORPO-
 RATION  UNTIL  THE FRANCHISED CORPORATION ACHIEVES THE GOALS OF A BOARD-
 APPROVED CORRECTIVE ACTION PLAN ADDRESSING CONCERNS  IDENTIFIED  BY  THE
 BOARD.  THE  DIRECTOR  OF  THE BUDGET MAY, UPON WARRANT OF THE FRANCHISE
 OVERSIGHT BOARD, APPROVE THE USE OF  WITHHELD  RACING  SUPPORT  PAYMENTS
 NECESSARY  TO  SATISFY FINANCIAL INSTRUMENTS USED TO FUND BOARD-APPROVAL
 CAPITAL INVESTMENTS.
   § 3. 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, BUT ONLY IF SUCH RACES CONCLUDE BEFORE ELEV-
 EN  O'CLOCK  POST  MERIDIAN. 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 STAGGERED.
   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.
   § 4. Subparagraph (i) of paragraph (d) of subdivision 1 of section 238
 of  the  racing,  pari-mutuel  wagering  and breeding law, as amended by
 section 2 of part BB of chapter 60 of the laws of 2016,  is  amended  to
 read as follows:
   (i)  The  pari-mutuel  tax  rate  authorized  by paragraph (a) of this
 subdivision shall be effective so long as a franchised corporation noti-

 S. 2009                            154                           A. 3009
 
 fies the gaming commission by August fifteenth of each  year  that  such
 pari-mutuel  tax rate is effective of its intent to conduct a race meet-
 ing at Aqueduct racetrack during the months of December, January, Febru-
 ary,  March  and April. For purposes of this paragraph such race meeting
 shall consist of not less than ninety-five days of racing UNLESS  OTHER-
 WISE  AGREED  TO  IN WRITING BY THE NEW YORK THOROUGHBRED BREEDERS INC.,
 THE NEW YORK THOROUGHBRED HORSEMEN'S ASSOCIATION (OR SUCH  OTHER  ENTITY
 AS  IS  CERTIFIED  AND  APPROVED PURSUANT TO SECTION TWO HUNDRED TWENTY-
 EIGHT OF THIS ARTICLE) AND APPROVED BY THE COMMISSION.  Not  later  than
 May  first of each year that such pari-mutuel tax rate is effective, the
 gaming commission shall determine whether a  race  meeting  at  Aqueduct
 racetrack consisted of the number of days as required by this paragraph.
 In  determining  the  number  of  race  days, cancellation of a race day
 because of an act of God that the gaming commission approves or  because
 of  weather  conditions  that  are  unsafe or hazardous which the gaming
 commission approves shall not be construed as a  failure  to  conduct  a
 race  day.  Additionally,  cancellation of a race day because of circum-
 stances beyond the control of such franchised corporation for which  the
 gaming  commission gives approval shall not be construed as a failure to
 conduct a race day. If the gaming commission determines that the  number
 of  days  of racing as required by this paragraph have not occurred then
 the pari-mutuel tax rate in paragraph  (a)  of  this  subdivision  shall
 revert  to  the  pari-mutuel tax rates in effect prior to January first,
 nineteen hundred ninety-five.
   § 5. This act shall take effect April 1, 2017; provided, however, that
 section one of this act shall take effect  upon  the  appointment  of  a
 majority  of  board members; provided, further, that the state franchise
 oversight board shall notify the legislative  bill  drafting  commission
 upon  the  occurrence  of such appointments 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; provided further that the amendments to section
 212 of the racing, pari-mutuel wagering and breeding law made by section
 two of this act shall not affect the repeal of such section and shall be
 deemed repealed therewith.
 
                                  PART OO
 
   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 FF of chapter 60 of the laws of 2016,  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

 S. 2009                            155                           A. 3009
 
 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  [seventeen] EIGHTEEN; 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 [seventeen] EIGHTEEN; 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 FF of chapter 60 of the laws of 2016, 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 [seventeen] EIGHTEEN, the amount used exclusive-
 ly  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

 S. 2009                            156                           A. 3009
 
 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  FF  of  chapter  60 of the laws of 2016, 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 [seventeen] EIGHTEEN 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 thirti-
 eth,  two  thousand  [seventeen] EIGHTEEN.   On any day on which a fran-
 chised 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 represen-
 tative 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 FF of  chapter  60  of
 the laws of 2016, 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 [seventeen] EIGHTEEN.  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 FF of chapter 60 of the laws of 2016,  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 [seventeen] EIGHTEEN.   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 FF of chapter
 60 of the laws of 2016, is amended to read as follows:

 S. 2009                            157                           A. 3009
 
   Notwithstanding  any  other  provision of this chapter, for the period
 July twenty-fifth, two thousand one through September eighth, two  thou-
 sand  [sixteen] SEVENTEEN, 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 FF of chapter 60 of the
 laws of 2016, 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,  [2017]  2018;  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  FF of chapter 60 of the laws of 2016, 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, [2017] 2018; 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
 FF of chapter 60 of the laws of 2016, 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

 S. 2009                            158                           A. 3009
 
 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 [seventeen]  EIGHTEEN,  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
 [seventeen] EIGHTEEN, such payment shall  be  seven-tenths  of  one  per
 centum of such pools.
   § 10. This act shall take effect immediately.
 
                                  PART PP

   Section  1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi-
 sion b of section 1612 of the tax law, as amended by section 1  of  part
 EE of chapter 60 of the laws of 2016, is amended to read as follows:
   (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
 agraph,  when  a  vendor track, is located in Sullivan county and within
 sixty miles from any gaming facility in a contiguous state  such  vendor

 S. 2009                            159                           A. 3009
 
 fee  shall, for a period of [nine] TEN years commencing April first, two
 thousand eight, be at a rate of forty-one percent of the  total  revenue
 wagered  at  the  vendor  track after payout for prizes pursuant to this
 chapter, after which time such rate shall be as for all tracks in clause
 (C) of this subparagraph.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2017.
 
                                  PART QQ
 
   Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of  subdivi-
 sion  b of section 1612 of the tax law, as separately amended by section
 1 of part GG and section 2 of part SS of chapter 60 of the laws of 2016,
 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 state racing and wagering board,
 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 nine-
 teen 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 convention and exhibition space
 requiring a minimum capital investment of three hundred million dollars.
 Except for tracks having less than one thousand one hundred video gaming
 machines, and except for a vendor track located west of State  Route  14
 from  Sodus Point to the Pennsylvania border within New York, and except
 for Aqueduct racetrack each track operator shall be required  to  co-in-
 vest  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 peri-
 od may be carried over into subsequent years ending before April  first,
 two  thousand [seventeen] EIGHTEEN. Any amount attributable to a capital
 expenditure approved prior to  April  first,  two  thousand  [seventeen]

 S. 2009                            160                           A. 3009
 
 EIGHTEEN and completed before April first, two thousand [nineteen] TWEN-
 TY;  or approved prior to April first, two thousand [twenty-one] TWENTY-
 TWO and completed before April first, two thousand [twenty-three]  TWEN-
 TY-FOUR  for  a  vendor  track located west of State Route 14 from Sodus
 Point to the Pennsylvania border within 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 division prior to April first, two
 thousand [seventeen] EIGHTEEN and completed prior to  April  first,  two
 thousand [nineteen] TWENTY, exceed the vendor track's cumulative capital
 award  during  the  five  year  period  ending April first, two thousand
 [seventeen] EIGHTEEN, the vendor shall continue to receive  the  capital
 award  after  April  first, two thousand [seventeen] EIGHTEEN 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 capital award under this section. Any  opera-
 tor  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 depreciation of the capital improvement in
 accordance with generally accepted accounting  principles,  shall  reim-
 burse  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 thousand [seventeen] EIGHTEEN shall
 be deposited into the state lottery fund for education aid; and
   § 2. This act shall take effect immediately.
 
                                  PART RR
 
   Section 1. Paragraph c of subdivision 3  of  section  97-nnnn  of  the
 state  finance  law,  as  added  by  chapter 174 of the laws of 2013, is
 amended to read as follows:
   c. ten percent of the moneys  in  such  fund,  as  attributable  to  a
 specific  licensed gaming facility, shall be appropriated or transferred
 from the commercial  gaming  revenue  fund  among  counties  within  the
 region,  as  defined  by  section  one thousand three hundred ten of the
 racing, pari-mutuel wagering and breeding law, hosting said facility for
 the purpose of real property tax relief and  for  education  assistance.
 Such  distribution  shall  be  made  among  the counties on a per capita
 basis, subtracting the  population  of  host  municipality  and  county.
 PROVIDED,  HOWEVER,  SUCH  AMOUNT  SHALL  BE REDUCED BY ONE MILLION FOUR
 HUNDRED THOUSAND DOLLARS IN STATE FISCAL YEAR TWO THOUSAND SEVENTEEN  --
 TWO  THOUSAND  EIGHTEEN  AND  BY ONE MILLION FIVE HUNDRED FIFTY THOUSAND
 DOLLARS EVERY YEAR THEREAFTER. SUCH FUNDS ATTRIBUTABLE TO THIS REDUCTION
 SHALL BE TRANSFERRED TO THE GENERAL FUND  AND  THE  REDUCTION  SHALL  BE
 DISTRIBUTED  AMONG SUCH ELIGIBLE COUNTIES PROPORTIONAL TO TOTAL DISTRIB-
 UTIONS DURING THE FISCAL YEAR.
   § 2. Subdivision 3 of section  99-h  of  the  state  finance  law,  as
 amended  by  chapter  174  of  the  laws  of 2013, is amended to read as
 follows:
   3. Moneys of the account, following the segregation of  appropriations
 enacted  by  the  legislature, shall be available for purposes including
 but not limited to: (a) reimbursements or payments to municipal  govern-
 ments  that  host  tribal casinos pursuant to a tribal-state compact for
 costs incurred in connection with services provided to such  casinos  or
 arising  as a result thereof, for economic development opportunities and
 job expansion programs authorized by the executive law; provided, howev-

 S. 2009                            161                           A. 3009
 
 er, that for any gaming facility located in the  city  of  Buffalo,  the
 city  of  Buffalo  shall receive a minimum of twenty-five percent of the
 negotiated percentage of the net drop from electronic gaming devices the
 state  receives  pursuant  to the compact, and provided further that for
 any gaming facility located in the city  of  Niagara  Falls,  county  of
 Niagara a minimum of twenty-five percent of the negotiated percentage of
 the  net drop from electronic gaming devices the state receives pursuant
 to the compact shall be distributed in accordance with subdivision  four
 of  this  section,  and  provided  further  that for any gaming facility
 located in the county or counties of Cattaraugus, Chautauqua or  Allega-
 ny,  the  municipal  governments of the state hosting the facility shall
 collectively receive a minimum of twenty-five percent of the  negotiated
 percentage  of  the  net  drop  from electronic gaming devices the state
 receives pursuant to the compact; and provided further that pursuant  to
 chapter  five hundred ninety of the laws of two thousand four, a minimum
 of twenty-five percent of the revenues received by the state pursuant to
 the state's compact with the St. Regis Mohawk tribe shall be made avail-
 able to the counties of Franklin and St. Lawrence, and affected towns in
 such counties. Each such county and its  affected  towns  shall  receive
 fifty  percent  of  the moneys made available by the state; and provided
 further that the state shall annually make twenty-five  percent  of  the
 negotiated  percentage of the net drop from all gaming devices the state
 actually receives pursuant to the Oneida Settlement Agreement  confirmed
 by  section  eleven  of  the executive law as available to the county of
 Oneida, and a sum of three and one-half million dollars to the county of
 Madison. Additionally, the state shall distribute for a period of  nine-
 teen and one-quarter years, an additional annual sum of two and one-half
 million  dollars to the county of Oneida.  Additionally, the state shall
 distribute the one-time eleven million dollar payment  received  by  the
 state  pursuant  to such agreement with the Oneida Nation of New York to
 the county of Madison by wire transfer upon receipt of such  payment  by
 the  state;  and  (b)  support  and  services  of treatment programs for
 persons suffering from gambling addictions.  Moneys not  segregated  for
 such  purposes  shall be transferred to the general fund for the support
 of government during the fiscal year in which they are  received.  ADDI-
 TIONALLY, THE STATE SHALL DISTRIBUTE AN ADDITIONAL ANNUAL SUM OF TWO AND
 ONE-QUARTER  MILLION  DOLLARS  TO A COUNTY IN WHICH A GAMING FACILITY IS
 LOCATED BUT DOES NOT RECEIVE A PERCENT OF THE NEGOTIATED  PERCENTAGE  OF
 THE  NET  DROP  FROM  GAMING  DEVICES  THE  STATE RECEIVES PURSUANT TO A
 COMPACT.
   § 3. Subdivision 3-a of section 99-h of  the  state  finance  law,  as
 amended  by  section  4 of part EE of chapter 59 of the laws of 2014, is
 amended to read as follows:
   3-a. Ten percent of any of the funds actually received  by  the  state
 pursuant to the tribal-state compacts and agreements described in subdi-
 vision  two of this section prior to the transfer of unsegregated moneys
 to the general fund required by such subdivision, shall  be  distributed
 to  counties  in  each  respective exclusivity zone provided they do not
 otherwise receive a share of said revenues  pursuant  to  this  section.
 Such  distribution  shall  be  made  among such counties on a per capita
 basis, excluding the population of  any  municipality  that  receives  a
 distribution  pursuant  to  subdivision three of this section. PROVIDED,
 HOWEVER, SUCH AMOUNT SHALL BE REDUCED BY SIX HUNDRED THOUSAND DOLLARS IN
 STATE FISCAL YEAR TWO THOUSAND SEVENTEEN -- TWO THOUSAND EIGHTEEN AND BY
 FIVE HUNDRED THOUSAND DOLLARS EVERY YEAR THEREAFTER. THE REDUCTION SHALL

 S. 2009                            162                           A. 3009

 BE DISTRIBUTED  AMONG  SUCH  ELIGIBLE  COUNTIES  PROPORTIONAL  TO  TOTAL
 DISTRIBUTIONS DURING THE FISCAL YEAR.
   § 4. Paragraph b of subdivision 2 of section 54-l of the state finance
 law,  as  amended  by  section  1 of part X of chapter 55 of the laws of
 2014, is amended to read as follows:
   b. Within the amounts appropriated therefor,  eligible  municipalities
 shall  receive  an  amount  equal  to  seventy  percent of the state aid
 payment received in the state fiscal year commencing  April  first,  two
 thousand  eight  from  an  appropriation  for aid to municipalities with
 video lottery gaming facilities.  PROVIDED, HOWEVER, SUCH  AMOUNT  SHALL
 BE  REDUCED  BY  TWO  HUNDRED FIFTY THOUSAND DOLLARS IN THE STATE FISCAL
 YEAR COMMENCING APRIL FIRST, TWO THOUSAND SEVENTEEN AND BY  TWO  HUNDRED
 THOUSAND DOLLARS EVERY YEAR THEREAFTER. SUCH REDUCTION SHALL BE DISTRIB-
 UTED   AMONG  SUCH  ELIGIBLE  MUNICIPALITIES  PROPORTIONAL  TO  PAYMENTS
 RECEIVED BY SUCH  ELIGIBLE  MUNICIPALITIES  IN  THE  STATE  FISCAL  YEAR
 COMMENCING APRIL FIRST, TWO THOUSAND SIXTEEN.
   §  5. This act shall take effect April 1, 2017 and shall expire and be
 deemed repealed March 31, 2020 notwithstanding section 2 of chapter  747
 of the laws of 2006, as amended.
   § 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 RR 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. 2009--A                                            A. 3009--A
 
                       S E N A T E - A S S E M B L Y
 
                             January 23, 2017
                                ___________
 
 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 alcoholic beverage control law, in relation to the
   creation of a special license to sell alcoholic  beverages  at  retail
   for  consumption  off  the  premises  (Part A); to amend the alcoholic
   beverage control law, in relation to alcohol in certain motion picture
   theatres,  and  providing  for  the  expiration  and  repeal  of  such
   provisions  upon the expiration thereof (Part B); to amend the tax law
   and the administrative code of the city of New York,  in  relation  to
   the  school  tax reduction credit for residents of a city with a popu-
   lation of one million or more; and to repeal section 54-f of the state
   financial law relating thereto (Part C); to amend  the  real  property
   tax  law,  in  relation to the maximum amount of tax savings allowable
   under the STAR program (Part D); to amend the real  property  tax  law
   and  the  tax  law, in relation to making the STAR income verification
   program mandatory; and  repealing  certain  provisions  of  such  laws
   relating  thereto  (Part  E);  to  amend the real property tax law, in
   relation to authorizing partial payments of property taxes  (Part  F);
   to  amend  the  tax  law,  in relation to the STAR personal income tax
   credit (Part G); to amend the real property tax law and the  tax  law,
   in  relation  to  the  applicability of the STAR credit to cooperative
   apartment corporations; and repealing certain provisions  of  the  tax
   law  relating  thereto  (Part  H); to amend chapter 540 of the laws of
   1992, amending the real property tax  law  relating  to  oil  and  gas
   charges,  in  relation to the effectiveness thereof (Part I); to amend
   the state finance law, in relation to the  veterans'  home  assistance
   fund  (Part J); to amend the economic development law and the tax law,
   in relation to life sciences companies (Part K); to amend the economic
   development law,  in  relation  to  the  employee  training  incentive
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12574-05-7

 S. 2009--A                          2                         A. 3009--A
 
   program  (Part  L); to amend the tax law, in relation to extending the
   empire state  film  production  credit  and  empire  state  film  post
   production credit for three years (Part M); to amend the labor law and
   the  tax  law,  in relation to a program to provide tax incentives for
   employers employing at risk youth (Part N); to amend the tax  law,  in
   relation  to  extending  the  alternative  fuels  and electric vehicle
   recharging property credit for five years (Part O); to amend  the  tax
   law,  in  relation to the investment tax credit (Part P); to amend the
   tax law, in relation to the treatment of single member limited liabil-
   ity companies that are disregarded entities in determining eligibility
   for tax credits (Part Q); to amend the tax law, in relation to extend-
   ing the top personal income tax rate for three years;  and  to  repeal
   subparagraph (B) of paragraph 1 of subsection (a), subparagraph (B) of
   paragraph  1  of subsection (b) and subparagraph (B) of paragraph 1 of
   subsection (c) of section 601 of the tax law, relating to the  imposi-
   tion of tax (Part R); to amend the tax law and the administrative code
   of the city of New York, in relation to permanently extending the high
   income charitable contribution deduction limitation (Part S); to amend
   the  tax  law,  in relation to increasing the child and dependent care
   tax credit (Part T); to amend the tax law, in relation to  the  finan-
   cial  institution  data match system for state tax collection purposes
   (Part U); to amend the civil service law and the tax law, in  relation
   to  tax  clearances  for applicants for civil service employment (Part
   V); to amend chapter 266 of the laws of 1986, amending the civil prac-
   tice law and rules and other laws relating to malpractice and  profes-
   sional  medical  conduct,  in  relation  to  apportioning  premium for
   certain policies; to amend part J of chapter 63 of the  laws  of  2001
   amending  chapter 266 of the laws of 1986, amending the civil practice
   law and rules and other laws relating to malpractice and  professional
   medical  conduct, in relation to extending certain provisions concern-
   ing the hospital excess liability pool; and to amend the tax  law,  in
   relation  to  extending  certain  provisions  concerning  the hospital
   excess liability pool and requiring a tax clearance  for  doctors  and
   dentists  to  be  eligible for such excess coverage (Part W); to amend
   chapter 59 of the laws of 2013, amending the tax law relating to serv-
   ing an income execution with respect to individual tax debtors without
   filing a warrant, in relation to  making  the  provisions  authorizing
   service  of income executions on individual tax debtors without filing
   a warrant permanent (Part X); to amend the tax law, in relation to the
   taxation of S corporations; and to repeal certain provisions  of  such
   law  relating  thereto  (Part Y); to amend the tax law, in relation to
   the definition of New York  source  income  (Part  Z);  to  close  the
   nonresident  partnership  asset  sale loophole (Part AA); to amend the
   tax law, in relation to requiring  marketplace  providers  to  collect
   sales  tax (Part BB); to amend the tax law, in relation to closing the
   existing tax loopholes for transactions between related entities under
   article 28 and pursuant to the authority of article  29  of  such  law
   (Part CC); to amend the tax law, in relation to clarifying the imposi-
   tion  of  sales  tax  on  gas  service or electric service of whatever
   nature (Part DD); to amend the tax law and the county law, in relation
   to the imposition of a surcharge on  prepaid  wireless  communications
   service  and devices (Part EE); to amend the public health law and the
   education law, in relation to tobacco products, herbal cigarettes, and
   vapor products; and to amend the tax law, in relation  to  imposing  a
   tax  on  vapor products (Part FF); to amend the tax law in relation to
   the amount of untaxed cigarettes required to seize a  vehicle  and  to

 S. 2009--A                          3                         A. 3009--A
 
   increase  the  penalty  for  the possession or sale of counterfeit tax
   stamps or the device necessary to manufacture such stamps  (Part  GG);
   to  amend the tax law, in relation to authorizing jeopardy assessments
   on cigarette and tobacco product taxes assessed under article 20 ther-
   eof  (Part HH); to amend the tax law, in relation to the imposition of
   a tax on cigars under article 20 thereof (Part II); to amend  the  tax
   law,  in  relation  to  the definition of a conveyance for real estate
   transfer taxes (Part JJ); to amend the tax law,  in  relation  to  the
   additional  real  estate  transfer tax (Part KK); to amend the racing,
   pari-mutuel wagering and breeding law, in relation  to  modifying  the
   funding  of  and improve the operation of drug testing in horse racing
   (Part LL); to amend the racing, pari-mutuel wagering and breeding law,
   the executive law, and the general municipal law, in relation  to  the
   operation  of  charitable gaming; to amend the social services law, in
   relation  to  penalties  for  unauthorized  transactions  relating  to
   certain  public  assistance;  to  amend  the  tax  law, in relation to
   certain income derived from the conduct of certain  games  of  chance;
   and  to repeal certain provisions of the executive law and the general
   municipal law relating thereto (Part MM); to amend the  racing,  pari-
   mutuel  wagering  and  breeding  law,  in relation to allowing for the
   reprivatization of NYRA, and under certain circumstances racing  after
   sunset  and  a reduction in winter racing days (Part NN); 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  imposi-
   tion  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 OO); to
   amend  the  tax  law, in relation to vendor fees paid to vendor tracks
   (Part PP); to amend the tax law, in  relation  to  capital  awards  to
   vendor  tracks  (Part  QQ);  and  to  amend  the state finance law, in
   relation to the distribution of certain gaming aid; and providing  for
   the repeal of such provisions upon expiration thereof (Part RR)
 
   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 2017-2018
 state  fiscal  year.  Each  component  is wholly contained within a Part
 identified as Parts A through RR. 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

 S. 2009--A                          4                         A. 3009--A
 
   Section  1.  The alcoholic beverage control law is amended by adding a
 new section 63-b to read as follows:
   §  63-B.  SPECIAL  LICENSE  TO  SELL ALCOHOLIC BEVERAGES AT RETAIL FOR
 CONSUMPTION OFF THE PREMISES.  1. ANY PERSON WITH  A  WRITTEN  AGREEMENT
 WITH  THE  DEPARTMENT OF AGRICULTURE AND MARKETS TO OPERATE A "TASTE NY"
 STORE MAY MAKE APPLICATION TO THE AUTHORITY FOR  A  SPECIAL  LICENSE  TO
 SELL  ALCOHOLIC  BEVERAGES  AT  RETAIL  FOR CONSUMPTION OFF THE LICENSED
 PREMISES SUBJECT TO THE PROVISIONS OF SUCH WRITTEN AGREEMENT  AND  THOSE
 SET  FORTH HEREIN. NOTWITHSTANDING ANY LAW TO THE CONTRARY, NO ALCOHOLIC
 BEVERAGE SHALL BE SOLD OR TASTINGS ALLOWED ON THE THRUWAY.
   2. AN APPLICATION FOR A LICENSE UNDER THIS SECTION SHALL  BE  IN  SUCH
 FORM  AND  SHALL  CONTAIN  SUCH  INFORMATION AS SHALL BE REQUIRED BY THE
 AUTHORITY AND SHALL BE ACCOMPANIED BY A CHECK OR  DRAFT  IN  THE  AMOUNT
 REQUIRED BY THIS CHAPTER.
   3.  SECTION  FIFTY-FOUR  OF  THIS  CHAPTER  SHALL CONTROL SO FAR AS IS
 APPLICABLE TO THE PROCEDURE IN CONNECTION WITH SUCH APPLICATION.
   4. A LICENSE UNDER THIS SECTION SHALL BE ISSUED TO ALL ELIGIBLE APPLI-
 CANTS EXCEPT FOR GOOD CAUSE SHOWN, PROVIDED, HOWEVER, THAT NO MORE  THAN
 TEN  SUCH  LICENSES  SHALL  BE  IN EFFECT AT ANY TIME, AND THAT ALL SUCH
 LICENSES SHALL BE ISSUED IN A MANNER CONSISTENT  WITH  FEDERAL  LAW  AND
 REGULATIONS.    SUCH LICENSE SHALL BE LIMITED TO THE PREMISES SUBJECT TO
 THE WRITTEN AGREEMENT WITH THE DEPARTMENT OF AGRICULTURE AND MARKETS.
   5. A LICENSE UNDER THIS SECTION SHALL NOT BE SUBJECT TO THE PROVISIONS
 OF SUBDIVISIONS TWO, THREE AND SIX OF SECTION ONE HUNDRED FIVE  OF  THIS
 CHAPTER.
   6.  SUBJECT TO ANY FURTHER RESTRICTION CONTAINED IN THE AGREEMENT WITH
 THE DEPARTMENT OF AGRICULTURE AND  MARKETS,  THE  HOLDER  OF  A  LICENSE
 ISSUED  UNDER  THIS  SECTION MAY OFFER SAMPLES OF ALCOHOLIC BEVERAGES TO
 CUSTOMERS TO BE CONSUMED ON THE LICENSED  PREMISES  UPON  THE  FOLLOWING
 CONDITIONS:
   (A) NO FEE SHALL BE CHARGED FOR ANY SAMPLE;
   (B) EACH SAMPLE SHALL BE LIMITED;
   (I)  IN  THE CASE OF BEER, WINE PRODUCTS AND CIDER, TO THREE OUNCES OR
 LESS;
   (II) IN THE CASE OF WINE, TO TWO OUNCES;
   (III) IN THE CASE OF LIQUOR, TO ONE-QUARTER OUNCE;
   (C) NO SAMPLE SHALL BE PROVIDED TO A CUSTOMER DURING THE HOURS PROHIB-
 ITED BY THE PROVISIONS OF SUBDIVISION FIVE OF SECTION ONE HUNDRED SIX OF
 THIS CHAPTER; AND
   (D) NO CUSTOMER MAY BE PROVIDED WITH MORE THAN THREE  SAMPLES  IN  ONE
 CALENDAR DAY.
   7.  SUBJECT TO ANY FURTHER RESTRICTION CONTAINED IN THE AGREEMENT WITH
 THE DEPARTMENT OF AGRICULTURE AND  MARKETS,  THE  HOLDER  OF  A  LICENSE
 ISSUED UNDER THIS SECTION SHALL NOT:
   (A)  OFFER  ANY  TASTINGS OF, OR SELL, ANY BEER OR CIDER EXCEPT DURING
 THE HOURS IN WHICH BEER MAY BE SOLD FOR CONSUMPTION OFF THE PREMISES  IN
 THE COUNTY IN WHICH THE LICENSED PREMISES IS LOCATED; AND
   (B)  OFFER  ANY TASTINGS OF, OR SELL, ANY LIQUOR OR WINE EXCEPT DURING
 THE HOURS IN WHICH LIQUOR AND WINE MAY BE SOLD FOR CONSUMPTION  OFF  THE
 PREMISES IN THE COUNTY IN WHICH THE LICENSED PREMISES IS LOCATED.
   8. IN ADDITION TO THE SALE OF ALCOHOLIC BEVERAGES, THE FOLLOWING ITEMS
 MAY BE SOLD AT A PREMISES LICENSED UNDER THIS SECTION:
   (A)  NON-ALCOHOLIC  BEVERAGES  FOR CONSUMPTION OFF PREMISES, INCLUDING
 BUT NOT LIMITED TO BOTTLED WATER, JUICE AND SODA BEVERAGES;
   (B) FOOD ITEMS GROWN  OR  PRODUCED  IN  THIS  STATE  NOT  SPECIFICALLY
 PREPARED FOR IMMEDIATE CONSUMPTION UPON THE PREMISES; AND

 S. 2009--A                          5                         A. 3009--A
 
   (C)  SOUVENIR  ITEMS,  WHICH  SHALL  INCLUDE,  BUT  NOT  BE LIMITED TO
 ARTWORK, CRAFTS, CLOTHING, AGRICULTURAL PRODUCTS AND ANY OTHER  ARTICLES
 WHICH CAN BE CONSTRUED TO PROPAGATE TOURISM WITHIN THE STATE.
   9.  A  LICENSE  ISSUED UNDER THIS SECTION SHALL BE EFFECTIVE FOR THREE
 YEARS AT THREE TIMES THE ANNUAL FEE.
   § 2. Subdivision 3 of section 17 of  the  alcoholic  beverage  control
 law,  as  amended  by  section  3 of chapter 297 of the laws of 2016, is
 amended to read as follows:
   3. To revoke, cancel or suspend for cause any license or permit issued
 under this chapter and/or to impose a civil penalty  for  cause  against
 any  holder  of a license or permit issued pursuant to this chapter. Any
 civil penalty so imposed shall  not  exceed  the  sum  of  ten  thousand
 dollars  as  against  the holder of any retail permit issued pursuant to
 sections ninety-five,  ninety-seven,  ninety-eight,  ninety-nine-d,  and
 paragraph f of subdivision one of section ninety-nine-b of this chapter,
 and  as  against  the  holder  of  any retail license issued pursuant to
 sections fifty-three-a,  fifty-four,  fifty-four-a,  fifty-five,  fifty-
 five-a,  sixty-three,  SIXTY-THREE-B,  sixty-four,  sixty-four-a, sixty-
 four-b, sixty-four-c, seventy-six-f, seventy-nine, eighty-one and eight-
 y-one-a of this chapter, and the  sum  of  thirty  thousand  dollars  as
 against the holder of a license issued pursuant to sections fifty-three,
 sixty-one-a,  sixty-one-b, seventy-six, seventy-six-a, and seventy-eight
 of this chapter, provided that the civil penalty against the holder of a
 wholesale license issued pursuant to section fifty-three of this chapter
 shall not exceed the sum of ten thousand  dollars  where  that  licensee
 violates  provisions  of  this  chapter during the course of the sale of
 beer at retail to a person for consumption at home, and the sum  of  one
 hundred  thousand  dollars  as  against the holder of any license issued
 pursuant to sections fifty-one, sixty-one, and sixty-two of  this  chap-
 ter.  Any  civil penalty so imposed shall be in addition to and separate
 and apart from the terms and provisions of the bond required pursuant to
 section one hundred twelve of this chapter. Provided that no  appeal  is
 pending on the imposition of such civil penalty, in the event such civil
 penalty  imposed  by  the  division remains unpaid, in whole or in part,
 more than forty-five days after written demand for payment has been sent
 by first class mail to the address of the licensed premises, a notice of
 impending default judgment shall be sent by  first  class  mail  to  the
 licensed premises and by first class mail to the last known home address
 of the person who signed the most recent license application. The notice
 of  impending  default  judgment  shall  advise the licensee: (a) that a
 civil penalty was imposed on the licensee; (b) the date the penalty  was
 imposed;  (c)  the  amount  of  the civil penalty; (d) the amount of the
 civil penalty that remains unpaid as of the date of the notice; (e)  the
 violations for which the civil penalty was imposed; and (f) that a judg-
 ment  by  default  will be entered in the supreme court of the county in
 which the licensed premises are located, or other court of civil  juris-
 diction  or  any  other  place provided for the entry of civil judgments
 within the state of New York unless the division receives  full  payment
 of  all civil penalties due within twenty days of the date of the notice
 of impending default judgment. If  full  payment  shall  not  have  been
 received  by the division within thirty days of mailing of the notice of
 impending default judgment, the division shall  proceed  to  enter  with
 such  court a statement of the default judgment containing the amount of
 the penalty or penalties remaining due and unpaid, along with  proof  of
 mailing  of the notice of impending default judgment. The filing of such
 judgment shall have the full force and effect of a default judgment duly

 S. 2009--A                          6                         A. 3009--A
 
 docketed with such court pursuant to the civil practice  law  and  rules
 and  shall  in  all  respects  be  governed  by  that chapter and may be
 enforced in the same manner and with the same effect as that provided by
 law  in respect to execution issued against property upon judgments of a
 court of record. A judgment entered pursuant to this  subdivision  shall
 remain  in  full  force  and  effect for eight years notwithstanding any
 other provision of law.
   § 3. Subdivision 3 of section 17 of  the  alcoholic  beverage  control
 law,  as  amended  by  section  4 of chapter 297 of the laws of 2016, is
 amended to read as follows:
   3. To revoke, cancel or suspend for cause any license or permit issued
 under this chapter and/or to impose a civil penalty  for  cause  against
 any  holder  of a license or permit issued pursuant to this chapter. Any
 civil penalty so imposed shall  not  exceed  the  sum  of  ten  thousand
 dollars  as  against  the holder of any retail permit issued pursuant to
 sections ninety-five,  ninety-seven,  ninety-eight,  ninety-nine-d,  and
 paragraph f of subdivision one of section ninety-nine-b of this chapter,
 and  as  against  the  holder  of  any retail license issued pursuant to
 sections fifty-three-a,  fifty-four,  fifty-four-a,  fifty-five,  fifty-
 five-a,  sixty-three,  SIXTY-THREE-B,  sixty-four,  sixty-four-a, sixty-
 four-b,  sixty-four-c,  seventy-six-f,  seventy-nine,  eighty-one,   and
 eighty-one-a  of this chapter, and the sum of thirty thousand dollars as
 against the holder of a license issued pursuant to sections fifty-three,
 sixty-one-a, sixty-one-b, seventy-six, seventy-six-a  and  seventy-eight
 of this chapter, provided that the civil penalty against the holder of a
 wholesale license issued pursuant to section fifty-three of this chapter
 shall  not  exceed  the  sum of ten thousand dollars where that licensee
 violates provisions of this chapter during the course  of  the  sale  of
 beer  at  retail to a person for consumption at home, and the sum of one
 hundred thousand dollars as against the holder  of  any  license  issued
 pursuant to sections fifty-one, sixty-one and sixty-two of this chapter.
 Any  civil  penalty  so imposed shall be in addition to and separate and
 apart from the terms and provisions of the  bond  required  pursuant  to
 section  one  hundred twelve of this chapter. Provided that no appeal is
 pending on the imposition of such civil penalty, in the event such civil
 penalty imposed by the division remains unpaid, in  whole  or  in  part,
 more than forty-five days after written demand for payment has been sent
 by first class mail to the address of the licensed premises, a notice of
 impending  default  judgment  shall  be  sent by first class mail to the
 licensed premises and by first class mail to the last known home address
 of the person who signed the most recent license application. The notice
 of impending default judgment shall advise  the  licensee:  (a)  that  a
 civil  penalty was imposed on the licensee; (b) the date the penalty was
 imposed; (c) the amount of the civil penalty;  (d)  the  amount  of  the
 civil  penalty that remains unpaid as of the date of the notice; (e) the
 violations for which the civil penalty was imposed; and (f) that a judg-
 ment by default will be entered in the supreme court of  the  county  in
 which  the licensed premises are located, or other court of civil juris-
 diction, or any other place provided for the entry  of  civil  judgments
 within  the  state of New York unless the division receives full payment
 of all civil penalties due within twenty days of the date of the  notice
 of  impending  default  judgment.  If  full  payment shall not have been
 received by the division within thirty days of mailing of the notice  of
 impending  default  judgment,  the  division shall proceed to enter with
 such court a statement of the default judgment containing the amount  of
 the  penalty  or penalties remaining due and unpaid, along with proof of

 S. 2009--A                          7                         A. 3009--A
 
 mailing of the notice of impending default judgment. The filing of  such
 judgment shall have the full force and effect of a default judgment duly
 docketed  with  such  court pursuant to the civil practice law and rules
 and  shall  in  all  respects  be  governed  by  that chapter and may be
 enforced in the same manner and with the same effect as that provided by
 law in respect to execution issued against property upon judgments of  a
 court  of  record. A judgment entered pursuant to this subdivision shall
 remain in full force and effect  for  eight  years  notwithstanding  any
 other provision of law.
   §  4.  Subdivision 1 of section 56-a of the alcoholic beverage control
 law, as amended by chapter 422 of the laws of 2016, is amended  to  read
 as follows:
   1.  In addition to the annual fees provided for in this chapter, there
 shall be paid to the authority  with  each  initial  application  for  a
 license  filed  pursuant  to  section fifty-one, fifty-one-a, fifty-two,
 fifty-three,  fifty-eight,  fifty-eight-c,   fifty-eight-d,   sixty-one,
 sixty-two,  seventy-six, seventy-seven or seventy-eight of this chapter,
 a filing fee of four hundred dollars; with each initial application  for
 a  license  filed pursuant to section sixty-three, SIXTY-THREE-B, sixty-
 four, sixty-four-a or sixty-four-b of this chapter, a filing fee of  two
 hundred  dollars;  with  each  initial  application  for a license filed
 pursuant to section fifty-three-a, fifty-four, fifty-five, fifty-five-a,
 seventy-nine, eighty-one or eighty-one-a of this chapter, a  filing  fee
 of one hundred dollars; with each initial application for a permit filed
 pursuant  to section ninety-one, ninety-one-a, ninety-two, ninety-two-a,
 ninety-three, ninety-three-a, if such permit is to be issued on a calen-
 dar year basis, ninety-four, ninety-five, ninety-six or ninety-six-a, or
 pursuant to paragraph b, c, e or j of subdivision one of  section  nine-
 ty-nine-b  of  this chapter if such permit is to be issued on a calendar
 year basis, or for an additional bar pursuant  to  subdivision  four  of
 section one hundred of this chapter, a filing fee of twenty dollars; and
 with  each application for a permit under section ninety-three-a of this
 chapter, other than a permit to be issued  on  a  calendar  year  basis,
 section  ninety-seven,  ninety-eight,  ninety-nine,  or ninety-nine-b of
 this chapter, other than a permit to be issued pursuant to paragraph  b,
 c, e or j of subdivision one of section ninety-nine-b of this chapter on
 a calendar year basis, a filing fee of ten dollars.
   §  5.  Subdivision 2 of section 56-a of the alcoholic beverage control
 law, as amended by chapter 422 of the laws of 2016, is amended  to  read
 as follows:
   2.  In addition to the annual fees provided for in this chapter, there
 shall be paid to the authority  with  each  renewal  application  for  a
 license  filed  pursuant  to  section fifty-one, fifty-one-a, fifty-two,
 fifty-three,  fifty-eight,  fifty-eight-c,   fifty-eight-d,   sixty-one,
 sixty-two,  seventy-six, seventy-seven or seventy-eight of this chapter,
 a filing fee of one hundred dollars; with each renewal application for a
 license filed pursuant to  section  sixty-three,  SIXTY-THREE-B,  sixty-
 four,  sixty-four-a  or  sixty-four-b  of  this chapter, a filing fee of
 ninety dollars; with each renewal application for a license filed pursu-
 ant to section seventy-nine, eighty-one or eighty-one-a of this chapter,
 a filing fee of twenty-five dollars; and with each  renewal  application
 for  a license or permit filed pursuant to section fifty-three-a, fifty-
 four, fifty-five, fifty-five-a,  ninety-one,  ninety-one-a,  ninety-two,
 ninety-two-a,  ninety-three, ninety-three-a, if such permit is issued on
 a calendar year basis, ninety-four, ninety-five, ninety-six  or  ninety-
 six-a  of this chapter or pursuant to paragraph b, c, e or j of subdivi-

 S. 2009--A                          8                         A. 3009--A
 
 sion one of section ninety-nine-b, if such permit is issued on a  calen-
 dar  year  basis, or with each renewal application for an additional bar
 pursuant to subdivision four of section one hundred of this  chapter,  a
 filing fee of thirty dollars.
   §  6.  Section  66 of the alcoholic beverage control law is amended by
 adding a new subdivision 11 to read as follows:
   11. THE ANNUAL FEE FOR A SPECIAL LICENSE TO SELL  ALCOHOLIC  BEVERAGES
 AT  RETAIL  FOR  CONSUMPTION  OFF  THE  LICENSED  PREMISES SHALL BE FIVE
 HUNDRED DOLLARS.
   §  7. Section 67 of the alcoholic beverage control law, as amended  by
 section  4  of  part  Z of chapter 85 of the laws of 2002, is amended to
 read as follows:
   § 67. License fees, duration  of  licenses;  fee  for  part  of  year.
 Effective  April  first,  nineteen hundred eighty-three, licenses issued
 pursuant to sections sixty-one, sixty-two,  sixty-three,  SIXTY-THREE-B,
 sixty-four,  sixty-four-a  and  sixty-four-b  of  this  article shall be
 effective for three years at three times that annual fee[, except  that,
 in implementing the purposes of this section, the liquor authority shall
 schedule  the  commencement dates, duration and expiration dates thereof
 to provide for an equal cycle of license renewals issued under each such
 section through the course of the fiscal year. Effective December first,
 nineteen hundred ninety-eight,  licenses  issued  pursuant  to  sections
 sixty-four,  sixty-four-a  and  sixty-four-b  of  this  article shall be
 effective for two years at two times that annual fee,  except  that,  in
 implementing  the  purposes  of this section, the liquor authority shall
 schedule the commencement dates, duration and expiration  dates  thereof
 to provide for an equal cycle of license renewals issued under each such
 section through the course of the fiscal year. Notwithstanding the fore-
 going,  commencing  on December first, nineteen hundred ninety-eight and
 concluding on July thirty-first, two thousand two, a licensee  issued  a
 license  pursuant to section sixty-four, sixty-four-a or sixty-four-b of
 this article may elect to remit the fee for such license in equal annual
 installments. Such installments shall be due on dates established by the
 liquor authority and the failure of a licensee  to  have  remitted  such
 annual  installments after a due date shall be a violation of this chap-
 ter. For licenses issued for less than the three-year licensing  period,
 the  license  fee  shall  be  levied on a pro-rated basis].   The entire
 license fee shall be due and payable at the  time  of  application.  The
 liquor  authority  may  make such rules as shall be appropriate to carry
 out the purpose of this section.
   § 8. Subdivision 8 of section 100 of the  alcoholic  beverage  control
 law,  as  added  by chapter 256 of the laws of 1978 and as renumbered by
 chapter 466 of the laws of 2015, is amended to read as follows:
   8. Within ten days after filing a new application to  sell  liquor  at
 retail    under    section   sixty-three,   SIXTY-THREE-B,   sixty-four,
 sixty-four-a or sixty-four-b of this chapter, a notice thereof,  in  the
 form  prescribed by the authority, shall be posted by the applicant in a
 conspicuous place at the entrance to the proposed premises.  The  appli-
 cant  shall  make  reasonable efforts to insure such notice shall remain
 posted throughout the pendency of the application. The provisions hereof
 shall apply only where no retail  liquor  license  has  previously  been
 granted  for the proposed premise and shall, specifically, not be appli-
 cable to a proposed sale of an existing business engaged in  the  retail
 sale of liquor. The authority may adopt such rules it may deem necessary
 to carry out the purpose of this subdivision.

 S. 2009--A                          9                         A. 3009--A
 
   §  9.  This  act shall take effect on the thirtieth day after it shall
 have become a law; provided, however, that:
   (a)  the  amendments  to  subdivision 3 of section 17 of the alcoholic
 beverage control law made by section two of this act shall be subject to
 the expiration and reversion of such section pursuant to  section  4  of
 chapter  118  of  the  laws of 2012, as amended, when upon such date the
 provisions of section three of this act shall take effect; and
   (b) if chapter 422 of the laws of 2016 shall not have taken effect  on
 or  before  such date then sections four and five of this act shall take
 effect on the same date and in the same manner as such  chapter  of  the
 laws of 2016, takes effect.
 
                                  PART B
 
   Section  1.  Section  106  of  the  alcoholic  beverage control law is
 amended by adding a new subdivision 16 to read as follows:
   16. A PERSON HOLDING A RETAIL ON-PREMISES LICENSE FOR A MOVIE THEATRE,
 OTHER THAN A LICENSE FOR A MOVIE THEATRE THAT MEETS THE  DEFINITIONS  OF
 RESTAURANT AND MEALS, AND WHERE ALL SEATING IS AT TABLES WHERE MEALS ARE
 SERVED, SHALL:
   (A) FOR EVERY PURCHASE OF AN ALCOHOLIC BEVERAGE, REQUIRE THE PURCHASER
 TO  PROVIDE  WRITTEN  EVIDENCE  OF  AGE AS SET FORTH IN PARAGRAPH (B) OF
 SUBDIVISION TWO OF SECTION SIXTY-FIVE-B OF THIS CHAPTER; AND
   (B) ALLOW THE PURCHASE OF ONLY ONE ALCOHOLIC BEVERAGE PER TRANSACTION;
 AND
   (C) ONLY PERMIT THE SALE OR DELIVERY OF ALCOHOLIC  BEVERAGES  DIRECTLY
 TO  AN  INDIVIDUAL  HOLDING  A TICKET FOR A MOTION PICTURE WITH A MOTION
 PICTURE ASSOCIATION OF AMERICA RATING OF "PG-13," "R," OR "NC-17"; AND
   (D) NOT COMMENCE THE SALE OF ALCOHOLIC BEVERAGES UNTIL ONE HOUR  PRIOR
 TO  THE  START OF THE FIRST MOTION PICTURE, AND CEASE ALL SALES OF ALCO-
 HOLIC BEVERAGES AFTER THE CONCLUSION OF THE FINAL MOTION PICTURE.
   § 2. Subdivision 6 of section 64-a of the alcoholic  beverage  control
 law,  as  amended by chapter 475 of the laws of 2011, is amended to read
 as follows:
   6. No special on-premises license shall be granted except for premises
 in which the principal business shall be (a) the sale of food or  bever-
 ages at retail for consumption on the premises or (b) the operation of a
 legitimate  theatre, INCLUDING A MOTION PICTURE THEATRE THAT IS A BUILD-
 ING OR FACILITY WHICH IS REGULARLY USED AND KEPT OPEN PRIMARILY FOR  THE
 EXHIBITION  OF  MOTION  PICTURES  FOR  AT LEAST FIVE OUT OF SEVEN DAYS A
 WEEK, OR ON A REGULAR SEASONAL BASIS OF  NO  LESS  THAN  SIX  CONTIGUOUS
 WEEKS, TO THE GENERAL PUBLIC WHERE ALL AUDITORIUM SEATING IS PERMANENTLY
 AFFIXED  TO  THE  FLOOR  AND  AT  LEAST SIXTY-FIVE PERCENT OF THE MOTION
 PICTURE THEATRE'S ANNUAL GROSS REVENUES IS THE COMBINED RESULT OF ADMIS-
 SION REVENUE FOR THE SHOWING OF MOTION PICTURES AND THE SALE OF FOOD AND
 NON-ALCOHOLIC BEVERAGES, or such other  lawful  adult  entertainment  or
 recreational  facility as the liquor authority, giving due regard to the
 convenience of the public and the strict avoidance of  sales  prohibited
 by  this chapter, shall by regulation classify for eligibility. [Nothing
 contained in this subdivision shall be deemed to authorize the  issuance
 of a license to a motion picture theatre, except those meeting the defi-
 nition of restaurant and meals, and where all seating is at tables where
 meals are served.]
   §  3.  Subdivision 8 of section 64-a of the alcoholic beverage control
 law, as added by chapter 531 of the laws of 1964, is amended to read  as
 follows:

 S. 2009--A                         10                         A. 3009--A

   8. Every special on-premises licensee shall regularly keep food avail-
 able  for  sale  to  its  customers for consumption on the premises. The
 availability of sandwiches, soups or other foods, whether  fresh,  proc-
 essed,  pre-cooked  or  frozen,  shall  be  deemed  compliance with this
 requirement.    FOR MOTION PICTURE THEATRES LICENSED UNDER PARAGRAPH (B)
 OF SUBDIVISION SIX OF THIS SECTION, FOOD THAT IS TYPICALLY  FOUND  IN  A
 MOTION  PICTURE  THEATRE,  INCLUDING BUT NOT LIMITED TO: POPCORN, CANDY,
 AND LIGHT SNACKS, SHALL BE DEEMED TO BE IN COMPLIANCE WITH THIS REQUIRE-
 MENT. The licensed premises shall comply at all times with all the regu-
 lations of the local department of health.  Nothing  contained  in  this
 subdivision,  however,  shall  be  construed to require that any food be
 sold or purchased with any liquor, nor shall  any  rule,  regulation  or
 standard  be  promulgated or enforced requiring that the sale of food be
 substantial or that the receipts of the business  other  than  from  the
 sale  of  liquor  equal  any set percentage of total receipts from sales
 made therein.
   § 4. Subdivision 9 of section 64-a of the alcoholic  beverage  control
 law,  as added by chapter 531 of the laws of 1964, is amended to read as
 follows:
   9.  IN THE CASE OF A MOTION PICTURE THEATRE  APPLYING  FOR  A  LICENSE
 UNDER  THIS  SECTION,  ANY  MUNICIPALITY  REQUIRED  TO BE NOTIFIED UNDER
 SECTION ONE HUNDRED TEN-B OF THIS CHAPTER MAY EXPRESS  AN  OPINION  WITH
 RESPECT  TO WHETHER THE APPLICATION SHOULD BE APPROVED, AND SUCH OPINION
 MAY BE CONSIDERED IN DETERMINING WHETHER GOOD CAUSE EXISTS TO  DENY  ANY
 SUCH APPLICATION.
   10.  The liquor authority may make such rules as it deems necessary to
 carry out the provisions of this section.
   § 5. This act shall take effect immediately and shall  expire  and  be
 deemed repealed 3 years after such date.
 
                                  PART C
 
   Section 1. Section 54-f of the state finance law is REPEALED.
   §  2.  Subsection  (ggg)  of  section  606 of the tax law, as added by
 section 1 of part E of chapter 60 of the laws of 2016, and as relettered
 by section 1 of part A of chapter 73 of the laws of 2016, is amended  to
 read as follows:
   (ggg) School tax reduction credit for residents of a city with a popu-
 lation over one million. (1) For taxable years beginning after two thou-
 sand  fifteen, a school tax reduction credit shall be allowed to a resi-
 dent individual of the state  who  is  a  resident  of  a  city  with  a
 population  over  one  million,  as  provided below. The credit shall be
 allowed against the taxes authorized by  this  article  reduced  by  the
 credits  permitted  by this article. If the credit exceeds the tax as so
 reduced, 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
 will  be  paid thereon. For purposes of this subsection, no credit shall
 be granted to an individual with  respect  to  whom  a  deduction  under
 subsection  (c) of section one hundred fifty-one of the internal revenue
 code is allowable to another taxpayer for the taxable year.
   (2) The amount of the credit under this [paragraph]  SUBSECTION  shall
 be  determined  based  upon the taxpayer's income as defined in subpara-
 graph (ii) of paragraph (b) of subdivision four of section four  hundred
 twenty-five of the real property tax law.

 S. 2009--A                         11                         A. 3009--A
 
   (3)  For  TAXABLE  YEARS BEGINNING IN TWO THOUSAND SIXTEEN, THE CREDIT
 SHALL BE DETERMINED AS PROVIDED IN THIS PARAGRAPH, PROVIDED THAT FOR the
 purposes of this paragraph, any taxpayer under subparagraphs (A) and (B)
 of this paragraph with income of more than two  hundred  fifty  thousand
 dollars shall not receive a credit.
   (A) Married individuals filing joint returns and surviving spouses. In
 the  case of married individuals who make a single return jointly and of
 a surviving spouse, the credit shall be one hundred twenty-five dollars.
   (B) All others. In the case of an unmarried individual, a  head  of  a
 household  or  a married individual filing a separate return, the credit
 shall be sixty-two dollars and fifty cents.
   (4) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SIXTEEN, THE CREDIT
 SHALL EQUAL THE "FIXED" AMOUNT  PROVIDED  BY  PARAGRAPH  (4-A)  OF  THIS
 SUBSECTION  PLUS THE "RATE REDUCTION" AMOUNT PROVIDED BY PARAGRAPH (4-B)
 OF THIS SUBSECTION.
   (4-A) THE "FIXED" AMOUNT OF THE CREDIT SHALL BE DETERMINED AS PROVIDED
 IN THIS PARAGRAPH, PROVIDED THAT ANY TAXPAYER WITH INCOME OF  MORE  THAN
 TWO HUNDRED FIFTY THOUSAND DOLLARS SHALL NOT RECEIVE SUCH AMOUNT.
   (A) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES. IN
 THE  CASE OF MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND OF
 A SURVIVING SPOUSE, THE "FIXED"  AMOUNT  OF  THE  CREDIT  SHALL  BE  ONE
 HUNDRED TWENTY-FIVE DOLLARS.
   (B)  ALL  OTHERS.  IN THE CASE OF AN UNMARRIED INDIVIDUAL, A HEAD OF A
 HOUSEHOLD OR A MARRIED INDIVIDUAL FILING A SEPARATE RETURN, THE  "FIXED"
 AMOUNT OF THE CREDIT SHALL BE SIXTY-TWO DOLLARS AND FIFTY CENTS.
   (4-B) THE "RATE REDUCTION" AMOUNT OF THE CREDIT SHALL BE DETERMINED AS
 PROVIDED  IN  THIS  PARAGRAPH, PROVIDED THAT ANY TAXPAYER WITH INCOME OF
 MORE THAN FIVE HUNDRED THOUSAND DOLLARS SHALL NOT RECEIVE SUCH AMOUNT.
   (A) FOR MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND FOR A
 SURVIVING SPOUSE:
 IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
 NOT OVER $21,600                       0.171% OF THE CITY TAXABLE INCOME
 OVER $21,600 BUT NOT OVER $500,000     $37 PLUS 0.228% OF EXCESS OVER
                                          $21,600
 OVER $500,000                              NOT APPLICABLE
   (B) FOR A HEAD OF HOUSEHOLD:
 IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
 NOT OVER $14,400                       0.171% OF THE CITY TAXABLE INCOME
 OVER $14,400 BUT NOT OVER $500,000     $25 PLUS 0.228% OF EXCESS OVER
                                          $14,400
 OVER $500,000                              NOT APPLICABLE
   (C) FOR AN UNMARRIED INDIVIDUAL OR A MARRIED INDIVIDUAL FILING
 A SEPARATE RETURN:
 IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
 NOT OVER $12,000                       0.171% OF THE CITY TAXABLE INCOME
 OVER $12,000 BUT NOT OVER $500,000     $21 PLUS 0.228% OF EXCESS OVER
                                          $12,000
 OVER $500,000                              NOT APPLICABLE
   [(3)] (5) Part-year residents. If a taxpayer changes status during the
 taxable year from resident to nonresident, or from nonresident to  resi-
 dent,  the  school  tax  reduction  credit authorized by this subsection
 shall be prorated according to the number of months  in  the  period  of
 residence.
   §  3.  Paragraphs  1, 2 and 3 of subsection (a) of section 1304 of the
 tax law, as amended by section 2 of part B of chapter 59 of the laws  of
 2015, are amended to read as follows:

 S. 2009--A                         12                         A. 3009--A
 
   (1)  Resident  married  individuals  filing joint returns and resident
 surviving spouses. The tax under this section for each taxable  year  on
 the  city  taxable  income of every city resident married individual who
 makes a single return jointly with his or her  spouse  under  subsection
 (b)  of  section  thirteen  hundred  six of this article and on the city
 taxable income of every city resident surviving spouse shall  be  deter-
 mined in accordance with the following tables:

   (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $21,600                       2.7% OF THE CITY TAXABLE INCOME
 OVER $21,600 BUT NOT                   $583 PLUS 3.3% OF EXCESS
 OVER $45,000                             OVER $21,600
 OVER $45,000 BUT NOT                   $1,355 PLUS 3.35% OF EXCESS
 OVER $90,000                             OVER $45,000
 OVER $90,000                           $2,863 PLUS 3.4% OF EXCESS
                                           OVER $90,000
 
 (B) FOR TAXABLE YEAR BEGINNING AFTER TWO THOUSAND FOURTEEN
 AND BEFORE TWO THOUSAND SEVENTEEN:
 If the city taxable income is:         The tax is:
 Not over $21,600                       2.55% of the city taxable income
 Over $21,600 but not                   $551 plus 3.1% of excess
 over $45,000                             over $21,600
 Over $45,000 but not                   $1,276 plus 3.15% of excess
 over $90,000                             over $45,000
 Over $90,000 but not                   $2,694 plus 3.2% of excess
 over $500,000                            over $90,000
 Over $500,000                          $16,803 plus 3.4% of excess
                                          over $500,000
 
   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:
 If the city taxable income is:         The tax is:
 Not over $21,600                       2.55% of the city taxable income
 Over $21,600 but not                   $551 plus 3.1% of excess
 over $45,000                             over $21,600
 Over $45,000 but not                   $1,276 plus 3.15% of excess
 over $90,000                             over $45,000
 Over $90,000 but not                   $2,694 plus 3.2% of excess
 over $500,000                            over $90,000
 Over $500,000                          $15,814 plus 3.4% of excess
                                          over $500,000
 
   (2) Resident heads of households. The tax under this section for  each
 taxable year on the city taxable income of every city resident head of a
 household shall be determined in accordance with the following tables:
   (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:

 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $14,400                       2.7% OF THE CITY TAXABLE INCOME
 OVER $14,400 BUT NOT                   $389 PLUS 3.3% OF EXCESS
 OVER $30,000                             OVER $14,400
 OVER $30,000 BUT NOT                   $904 PLUS 3.35% OF EXCESS

 S. 2009--A                         13                         A. 3009--A
 
 OVER $60,000                             OVER $30,000
 OVER $60,000                           $1,909 PLUS 3.4% OF EXCESS
                                          OVER $60,000
 
   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SIXTEEN:
 
 If the city taxable income is:         The tax is:
 Not over $14,400                       2.55% of the city taxable income
 Over $14,400 but not                   $367 plus 3.1% of excess
 over $30,000                             over $14,400
 Over $30,000 but not                   $851 plus 3.15% of excess
 over $60,000                             over $30,000
 Over $60,000 but not                   $1,796 plus 3.2% of excess
 over $500,000                            over $60,000
 Over $500,000                          $16,869 plus 3.4% of excess
                                          over $500,000
 
 [(B)] (C) For taxable years beginning after two thousand nine and before
 two thousand fifteen:
 
 If the city taxable income is:         The tax is:
 Not over $14,400                       2.55% of the city taxable income
 Over $14,400 but not                   $367 plus 3.1% of excess
 over $30,000                             over $14,400
 Over $30,000 but not                   $851 plus 3.15% of excess
 over $60,000                             over $30,000
 Over $60,000 but not                   $1,796 plus 3.2% of excess
 over $500,000                            over $60,000
 Over $500,000                          $15,876 plus 3.4% of excess
                                          Over $500,000
 
   (3)  Resident  unmarried  individuals,  resident  married  individuals
 filing separate returns and resident estates and trusts. The  tax  under
 this  section  for each taxable year on the city taxable income of every
 city resident individual who is not a city resident  married  individual
 who  makes  a  single  return  jointly  with  his  or  her  spouse under
 subsection (b) of section thirteen hundred six of this article or a city
 resident head of household or a city resident surviving spouse,  and  on
 the city taxable income of every city resident estate and trust shall be
 determined in accordance with the following tables:
 
   (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $12,000                       2.7% OF THE CITY TAXABLE INCOME
 OVER $12,000 BUT NOT                   $324 PLUS 3.3% OF EXCESS
 OVER $25,000                             OVER $12,000
 OVER $25,000 BUT NOT                   $753 PLUS 3.35% OF EXCESS
 OVER $50,000                             OVER $25,000
 OVER $50,000                           $1,591 PLUS 3.4% OF EXCESS
                                        OVER $50,000
 
   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SEVENTEEN:

 S. 2009--A                         14                         A. 3009--A
 
 If the city taxable income is:         The tax is:
 Not over $12,000                       2.55% of the city taxable income
 Over $12,000 but not                   $306 plus 3.1% of excess
 over $25,000                             over $12,000
 Over $25,000 but not                   $709 plus 3.15% of excess
 over $50,000                             over $25,000
 Over $50,000 but not                   $1,497 plus 3.2% of excess
 over $500,000                          over $50,000
 Over $500,000                          $16,891 plus 3.4%
                                        of excess over $500,000
   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:
 
 If the city taxable income is:         The tax is:
 Not over $12,000                       2.55% of the city taxable income
 Over $12,000 but not                   $306 plus 3.1% of excess
 over $25,000                             over $12,000
 Over $25,000 but not                   $709 plus 3.15% of excess
 over $50,000                             over $25,000
 Over $50,000 but not                   $1,497 plus 3.2% of excess
 over $500,000                          over $50,000
 Over $500,000                          $15,897 plus 3.4%
                                        of excess over $500,000
   § 4. Paragraphs 1, 2 and 3 of subsection (a) of section 11-1701 of the
 administrative code of the city of New York, as amended by section 3  of
 part  B  of  chapter  59  of  the  laws  of 2015, are amended to read as
 follows:
   (1) Resident married individuals filing  joint  returns  and  resident
 surviving  spouses.  The tax under this section for each taxable year on
 the city taxable income of every city resident  married  individual  who
 makes  a  single return jointly with his or her spouse under subdivision
 (b) of section 11-1751 of this chapter and on the city taxable income of
 every city resident surviving spouse shall be determined  in  accordance
 with the following tables:

 (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $21,600                       2.7% OF THE CITY TAXABLE INCOME
 OVER $21,600 BUT NOT                   $583 PLUS 3.3% OF EXCESS
 OVER $45,000                           OVER $21,600
 OVER $45,000 BUT NOT                   $1,355 PLUS 3.35% OF EXCESS
 OVER $90,000                           OVER $45,000
 OVER $90,000                           $2,863 PLUS 3.4% OF EXCESS
                                        OVER $90,000
   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SEVENTEEN:

 If the city taxable income is:         The tax is:
 Not over $21,600                       2.55% of the city taxable income
 Over $21,600 but not                   $551 plus 3.1% of excess
 over $45,000                            over $21,600
 Over $45,000 but not                   $1,276 plus 3.15% of excess
 over $90,000                            over $45,000
 Over $90,000 but not                   $2,694 plus 3.2% of excess

 S. 2009--A                         15                         A. 3009--A
 
 over $500,000                           over $90,000
 Over $500,000                          $16,803 plus 3.4% of excess
                                         over $500,000
   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:

 If the city taxable income is:         The tax is:
 Not over $21,600                       2.55% of the city taxable income
 Over $21,600 but not                   $551 plus 3.1% of excess
 over $45,000                            over $21,600
 Over $45,000 but not                   $1,276 plus 3.15% of excess
 over $90,000                            over $45,000
 Over $90,000 but not                   $2,694 plus 3.2% of excess
 over $500,000                           over $90,000
 Over $500,000                          $15,814 plus 3.4% of excess
                                         over $500,000
 
   (2) Resident heads of households. The tax under this section for  each
 taxable year on the city taxable income of every city resident head of a
 household shall be determined in accordance with the following tables:
   (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $14,400                       2.7% OF THE CITY TAXABLE INCOME
 OVER $14,400 BUT NOT                   $389 PLUS 3.3% OF EXCESS
 OVER $30,000                           OVER $14,400
 OVER $30,000 BUT NOT                   $904 PLUS 3.35% OF EXCESS
 OVER $60,000                           OVER $30,000
 OVER $60,000                           $1,909 PLUS 3.4% OF EXCESS
                                        OVER $60,000
   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SIXTEEN:

 If the city taxable income is:         The tax is:
 Not over $14,400                       2.55% of the city taxable income
 Over $14,400 but not                   $367 plus 3.1% of excess
 over $30,000                            over $14,400
 Over $30,000 but not                   $851 plus 3.15% of excess
 over $60,000                            over $30,000
 Over $60,000 but not                   $1,796 plus 3.2% of excess
 over $500,000                           over $60,000
 Over $500,000                          $16,869 plus 3.4% of excess
                                         over $500,000
 
   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:
 
 If the city taxable income is:         The tax is:
 Not over $14,400                       2.55% of the city taxable income
 Over $14,400 but not                   $367 plus 3.1% of excess
 over $30,000                            over $14,400
 Over $30,000 but not                   $851 plus 3.15% of excess
 over $60,000                            over $30,000
 Over $60,000 but not                   $1,796 plus 3.2% of excess
 over $500,000                           over $60,000
 Over $500,000                          $15,876 plus 3.4% of excess

 S. 2009--A                         16                         A. 3009--A
 
                                         over $500,000
 
   (3)  Resident  unmarried  individuals,  resident  married  individuals
 filing separate returns and resident estates and trusts. The  tax  under
 this  section  for each taxable year on the city taxable income of every
 city resident individual who is not a married  individual  who  makes  a
 single  return  jointly  with his or her spouse under subdivision (b) of
 section 11-1751 of this chapter or a city resident head of  a  household
 or  a  city resident surviving spouse, and on the city taxable income of
 every city resident estate and trust shall be determined  in  accordance
 with the following tables:
 
 (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $12,000                       2.7% OF THE CITY TAXABLE INCOME
 OVER $12,000 BUT NOT                   $324 PLUS 3.3% OF EXCESS
 OVER $25,000                            OVER $12,000
 OVER $25,000 BUT NOT                   $753 PLUS 3.35% OF EXCESS
 OVER $50,000                            OVER $25,000
 OVER $50,000                           $1,591 PLUS 3.4% OF EXCESS
                                         OVER $50,000
   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SIXTEEN:
 If the city taxable income is:         The tax is:
 Not over $12,000                       2.55% of the city taxable income
 Over $12,000 but not                   $306 plus 3.1% of excess
 over $25,000                            over $12,000
 Over $25,000 but not                   $709 plus 3.15% of excess
 over $50,000                            over $25,000
 Over $50,000 but not                   $1,497 plus 3.2% of excess
 over $500,000                           over $50,000
 Over $500,000                          $16,891 plus 3.4% of excess
                                         over $500,000
 
   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:
 
 If the city taxable income is:         The tax is:
 Not over $12,000                       2.55% of the city taxable income
 Over $12,000 but not                   $306 plus 3.1% of excess
 over $25,000                            over $12,000
 Over $25,000 but not                   $709 plus 3.15% of excess
 over $50,000                            over $25,000
 Over $50,000 but not                   $1,497 plus 3.2% of excess
 over $500,000                           over $50,000
 Over $500,000                          $15,897 plus 3.4% of excess
                                         over $500,000

   § 5. Notwithstanding any provision of law to the contrary, the  method
 of  determining  the  amount  to  be deducted and withheld from wages on
 account of taxes imposed by or pursuant to the authority of  article  30
 of  the  tax law in connection with the implementation of the provisions
 of this act shall be prescribed by  the  commissioner  of  taxation  and
 finance with due consideration to the effect such withholding tables and
 methods would have on the receipt and amount of revenue. The commission-

 S. 2009--A                         17                         A. 3009--A
 
 er  of  taxation  and  finance  shall adjust such withholding tables and
 methods in regard to taxable years beginning in 2017 and after  in  such
 manner  as  to  result,  so  far  as practicable, in withholding from an
 employee's  wages  an amount substantially equivalent to the tax reason-
 ably estimated to be due for such taxable  years  as  a  result  of  the
 provisions  of  this act. Provided, however, for tax year 2017 the with-
 holding tables shall reflect  as  accurately  as  practicable  the  full
 amount  of  tax  year  2017 liability so that such amount is withheld by
 December 31, 2017. In carrying out his or her  duties  and  responsibil-
 ities  under  this section, the commissioner of taxation and finance may
 prescribe a similar procedure with respect to the taxes required  to  be
 deducted  and  withheld  by  local  laws  imposing taxes pursuant to the
 authority of articles 30, 30-A and 30-B of the tax law,  the  provisions
 of  any  other  law  in  relation  to  such  a procedure to the contrary
 notwithstanding.
   § 6. 1. Notwithstanding any provision of law to the contrary, no addi-
 tion to tax shall be imposed for failure to pay  the  estimated  tax  in
 subsection  (c)  of  section  685  of the tax law and subdivision (c) of
 section 11-1785 of the administrative code of the city of New York  with
 respect  to  any underpayment of a required installment due prior to, or
 within thirty days of, the effective date of this act to the extent that
 such underpayment was created or increased by  the  amendments  made  by
 this  act, provided, however, that the taxpayer remits the amount of any
 underpayment prior to or with his or her next  quarterly  estimated  tax
 payment.
   2. The commissioner of taxation and finance shall take steps to publi-
 cize  the  necessary  adjustments  to  estimated  tax and, to the extent
 reasonably possible, to inform the taxpayer of the tax liability changes
 made by this act.
   § 7. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2017.
 
                                  PART D
 
   Section 1. Subparagraph (i) of  paragraph  (a)  of  subdivision  2  of
 section  1306-a of the real property tax law, as amended by section 6 of
 part N of chapter 58 of the laws of 2011, is amended to read as follows:
   (i) The tax savings for each parcel receiving the exemption authorized
 by section four hundred twenty-five of this chapter shall be computed by
 subtracting the amount actually  levied  against  the  parcel  from  the
 amount  that  would  have been levied if not for the exemption, provided
 however, that [beginning with] FOR the two thousand eleven-two  thousand
 twelve THROUGH TWO THOUSAND SIXTEEN-TWO THOUSAND SEVENTEEN 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 SEVENTEEN-TWO THOUSAND EIGHTEEN SCHOOL  YEAR,
 THE  TAX  SAVINGS  APPLICABLE  TO  ANY  PORTION SHALL NOT EXCEED THE TAX
 SAVINGS FOR THE PRIOR YEAR. The tax savings attributable  to  the  basic
 and  enhanced exemptions shall be calculated separately. It shall be the
 responsibility of the commissioner to calculate tax savings  limitations
 for purposes of this subdivision.
   § 2. This act shall take effect immediately.

 S. 2009--A                         18                         A. 3009--A
 
                                  PART E
 
   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 EIGHTEEN, 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] EIGHTEEN,
 the application form shall indicate that [the] ALL owners of the proper-
 ty and any owners' spouses residing on the premises [may  authorize  the
 assessor to] MUST have their income eligibility verified annually [ther-
 eafter]  by  the [state] department [of taxation and finance, in lieu of
 furnishing copies of the applicable income tax return  or  returns  with
 the  application.  If the owners of the property and any owners' spouses
 residing on the premises elect to participate  in  this  program,  which
 shall  be  known as the STAR income verification program, they] AND must
 furnish their taxpayer identification numbers  in  order  to  facilitate
 matching  with records of the department. [Thereafter, their] THE income
 eligibility  OF  SUCH  PERSONS  shall  be  verified  annually   by   the
 department, and the assessor shall not request income documentation from
 them[,  unless  such  department  advises  the assessor that they do not
 satisfy the applicable income eligibility requirements, or  that  it  is
 unable to determine whether they satisfy those requirements]. All APPLI-
 CANTS  FOR  THE  ENHANCED  EXEMPTION  AND  ALL  assessing units shall be
 required to participate in this program, WHICH SHALL  BE  KNOWN  AS  THE
 STAR INCOME VERIFICATION PROGRAM.
   (B) WHERE THE COMMISSIONER FINDS THAT THE ENHANCED EXEMPTION SHOULD BE
 REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE
 TO THE ENHANCED EXEMPTION HAS BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE
 PROPERTY  OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS-
 SIONER EVIDENCE TO THE CONTRARY. WHERE THE COMMISSIONER FINDS  THAT  THE

 S. 2009--A                         19                         A. 3009--A
 
 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 OF TAXATION AND FINANCE. IF A TAXPAYER IS DISSAT-
 ISFIED WITH THE  DEPARTMENT'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 DETERMINATION. 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  OF  TAXATION AND
 FINANCE, 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

 S. 2009--A                         20                         A. 3009--A
 
 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.
   §  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.

 S. 2009--A                         21                         A. 3009--A

   (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
 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

 S. 2009--A                         22                         A. 3009--A
 
 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 EIGHTEEN, 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 2018 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 F
 
   Section  1.  Section  928-a  of the real property tax law, as added by
 chapter 680 of the laws of 1994, subdivision 1  as  further  amended  by
 subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010
 and  subdivision  2  as  amended  by chapter 199 of the laws of 1997, is
 amended to read as follows:
   §  928-a.  Partial  payment  of  taxes.  1.  (A)  Notwithstanding  the
 provisions  of any general or special law to the contrary, [the board of
 supervisors or the county legislature of any county  may  by  resolution
 authorize  the  collecting  officers  in  one  or more of the classes of
 municipal corporations described  herein]  EACH  COLLECTING  OFFICER  IS
 HEREBY  AUTHORIZED  to  accept  from  any  taxpayer  at any time partial
 payments for or on account  of  taxes,  special  ad  valorem  levies  or
 special assessments [in such amount or manner and apply such payments on

 S. 2009--A                         23                         A. 3009--A

 account  thereof in such manner as may be prescribed by such resolution;
 provided, however, that such resolution], UNLESS THE GOVERNING  BODY  OF
 THE  MUNICIPAL  CORPORATION THAT EMPLOYS THE COLLECTING OFFICER HAS: (I)
 PASSED A RESOLUTION DISALLOWING PARTIAL PAYMENTS OR (II) PASSED A RESOL-
 UTION  LIMITING  THE  CONDITIONS  UNDER  WHICH  PARTIAL PAYMENTS WILL BE
 ACCEPTED, IN WHICH CASE PARTIAL PAYMENTS SHALL BE ACCEPTED IN ACCORDANCE
 WITH THE CONDITIONS SET FORTH IN THE RESOLUTION.
   (B) SUCH RESOLUTION MAY REQUIRE A SERVICE CHARGE  NOT  TO  EXCEED  TEN
 DOLLARS  TO BE PAID WITH EACH PARTIAL PAYMENT. SUCH SERVICE CHARGE SHALL
 BELONG TO THE MUNICIPAL CORPORATION THAT EMPLOYS THE COLLECTING OFFICER.
   (C) WHERE A STATEMENT OF TAXES CONTAINS SEPARATE CHARGES FOR  SEPARATE
 PURPOSES, ANY PARTIAL PAYMENTS SHALL BE APPLIED PROPORTIONATELY THERETO.
   (D)  WHERE SCHOOL DISTRICT TAXES ARE PAYABLE TO THE COLLECTING OFFICER
 OF A CITY OR TOWN THAT HAS NOT ACTED TO DISALLOW PARTIAL  PAYMENTS,  THE
 GOVERNING  BODY OF THE SCHOOL DISTRICT MAY PASS A RESOLUTION DISALLOWING
 PARTIAL PAYMENTS FOR SCHOOL DISTRICT PURPOSES. IF IT HAS  NOT  DONE  SO,
 THEN  THE  COLLECTING  OFFICER  SHALL  BE  AUTHORIZED  TO ACCEPT PARTIAL
 PAYMENTS OF SCHOOL DISTRICT TAXES UNDER THE SAME CONDITIONS AS MAY APPLY
 TO CITY OR TOWN TAXES.
   (E) ANY RESOLUTION ADOPTED PURSUANT TO THIS SECTION shall  be  adopted
 AT  LEAST  SIXTY  DAYS  prior to the preparation and delivery of the tax
 rolls to the appropriate collecting officers. A copy of  any  resolution
 [enacting,  amending  or  repealing  any  such  partial payment program]
 ADOPTED PURSUANT TO THIS SECTION, OR AMENDING OR REPEALING A  RESOLUTION
 ADOPTED  PURSUANT  TO THIS SECTION, shall be filed with the commissioner
 AND, IN THE CASE OF A RESOLUTION ADOPTED BY A SCHOOL DISTRICT, WITH  THE
 CITY  OR TOWN CLERK, no later than thirty days after the adoption there-
 of.
   2. [Such resolution shall apply to one or more of the following class-
 es of municipal corporations: (a) all towns within the county;  (b)  all
 cities for which the county enforces the collection of delinquent taxes;
 or  (c)  all  villages  for  which the county enforces the collection of
 delinquent taxes. If the resolution does not specify the class or class-
 es of municipal corporations to which it applies, it shall be deemed  to
 apply only to the towns in the county.
   3.]  After any partial payment authorized pursuant to this section has
 been paid, interest and penalties shall be charged  against  the  unpaid
 balance only. The acceptance of a partial payment by any official pursu-
 ant  to  this section shall not be deemed to affect any liens and powers
 of any [county]  MUNICIPAL  CORPORATION  conferred  in  any  general  or
 special  act,  but such rights and powers shall remain in full force and
 effect to enforce collection of the unpaid balance of such  tax  or  tax
 liens together with interest, penalties and other lawful charges.
   3.  A  COLLECTING OFFICER WHO IS AUTHORIZED TO ACCEPT PARTIAL PAYMENTS
 PURSUANT TO THIS SECTION MAY NOT DECLINE TO DO SO.
   4. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO AUTHORIZE A COLLECT-
 ING OFFICER TO ACCEPT A PARTIAL PAYMENT AFTER THE EXPIRATION OF  HIS  OR
 HER  WARRANT,  OR  AT ANY OTHER TIME THAT SUCH COLLECTING OFFICER IS NOT
 AUTHORIZED TO ACCEPT TAX PAYMENTS.
   § 2. This act shall take effect immediately and  shall  apply  to  the
 collection of real property taxes, special ad valorem levies and special
 assessments for fiscal years beginning on and after January 1, 2019.
 
                                  PART G

 S. 2009--A                         24                         A. 3009--A
 
   Section  1.  Paragraph 7 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:
   (7)  Disclosure  of  incomes  AND  OTHER  INFORMATION.   (A) Where the
 commissioner has denied a taxpayer's claim for the credit authorized  by
 this  subsection  in whole or in part on the grounds that the affiliated
 income of the parcel in  question  exceeds  the  applicable  limit,  the
 commissioner  shall  have  the  authority to reveal to that taxpayer the
 names and incomes of the other taxpayers whose incomes were included  in
 the computation of such affiliated income.
   (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 SHALL BE PUBLIC INFORMATION TO THE
 SAME EXTENT AS THE NAMES AND ADDRESSES OF INDIVIDUALS WHO  HAVE  APPLIED
 FOR  OR  ARE  RECEIVING  THE  STAR  EXEMPTION AUTHORIZED BY SECTION FOUR
 HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.
   § 2. This act shall take effect immediately.
 
                                  PART H
 
   Section 1. Subparagraph (ii) of paragraph  (k)  of  subdivision  2  of
 section  425  of  the  real property tax law, as amended by section 2 of
 part A of chapter 405 of the  laws  of  1999,  is  amended  to  read  as
 follows:
   (ii)  That proportion of the assessment of such real property owned by
 a cooperative apartment corporation determined by  the  relationship  of
 such  real  property  vested  in  such tenant-stockholder to such entire
 parcel and the buildings thereon owned  by  such  cooperative  apartment
 corporation in which such tenant-stockholder resides shall be subject to
 exemption  from  taxation  pursuant to this section and any exemption so
 granted shall be credited by the appropriate  taxing  authority  against
 the assessed valuation of such real property. Upon the completion of the
 final  assessment  roll,  or  as  soon thereafter as is practicable, the
 assessor shall forward to the cooperative apartment corporation a state-
 ment setting forth the exemption attributable to each  eligible  tenant-
 stockholder.  The  reduction in real property taxes attributable to each
 eligible tenant-stockholder shall be credited by the cooperative  apart-
 ment  corporation  against the amount of such taxes otherwise payable by
 or chargeable  to  such  tenant-stockholder.  THE  ASSESSOR  SHALL  ALSO
 FORWARD TO THE COMMISSIONER, AT THE TIME AND IN THE MANNER PRESCRIBED BY
 THE  COMMISSIONER,  A STATEMENT SETTING FORTH THE TAXABLE ASSESSED VALUE
 ATTRIBUTABLE  TO  EACH  TENANT-STOCKHOLDER,  WITHOUT   REGARD   TO   THE
 EXEMPTION,  AND  SUCH  OTHER  INFORMATION AS THE COMMISSIONER SHALL DEEM
 NECESSARY TO PROPERLY CALCULATE THE STAR CREDIT AUTHORIZED BY SUBSECTION
 (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW FOR THOSE  TENANT-STOCK-
 HOLDERS WHO QUALIFY FOR IT.
   §  2.  Subparagraph  (E) 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:
   (E)  "Qualifying  taxes"  means  the  school  district taxes that were
 levied upon the taxpayer's primary residence for the  associated  fiscal
 year  that  were  actually paid by the taxpayer during the taxable year;
 or, in the case of a city school district that  is  subject  to  article
 fifty-two  of  the  education law, the combined city and school district
 taxes that were levied upon the taxpayer's  primary  residence  for  the
 associated  fiscal  year  that were actually paid by the taxpayer during

 S. 2009--A                         25                         A. 3009--A
 
 the taxable year. PROVIDED, HOWEVER, THAT IN THE CASE OF  A  COOPERATIVE
 APARTMENT, "QUALIFYING TAXES" MEANS THE SCHOOL DISTRICT TAXES THAT WOULD
 HAVE  BEEN  LEVIED UPON THE TENANT-STOCKHOLDER'S PRIMARY RESIDENCE IF IT
 WERE SEPARATELY ASSESSED, AS DETERMINED BY THE COMMISSIONER BASED ON THE
 STATEMENT  PROVIDED  BY  THE  ASSESSOR  PURSUANT TO SUBPARAGRAPH (II) OF
 PARAGRAPH (K) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE  OF
 THE  REAL  PROPERTY  TAX  LAW, OR IN THE CASE OF A COOPERATIVE APARTMENT
 CORPORATION THAT IS DESCRIBED IN SUBPARAGRAPH (IV) OF PARAGRAPH  (K)  OF
 SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY
 TAX LAW, ONE THIRD OF SUCH AMOUNT. In no case shall the term "qualifying
 taxes" be construed to include penalties or interest.
   §  3.  Subparagraph  (A) of paragraph 6 of subsection (eee) of section
 606 of the tax law is REPEALED.
   § 4. This act shall take effect immediately, provided that section one
 of this act shall apply to final assessment rolls used  to  levy  school
 taxes for school years beginning on and after July 1, 2017, and provided
 further  that  sections two and three of this act shall apply to taxable
 years beginning on and after January 1, 2017.
 
                                  PART I
 
   Section 1. Section 2 of chapter 540 of the laws of 1992, amending  the
 real  property  tax  law  relating to oil and gas charges, as amended by
 section 1 of part C of chapter 59 of the laws of  2014,  is  amended  to
 read as follows:
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 1992; provided,
 however that any charges imposed by section 593 of the real property tax
 law as added by section one of this act shall first be  due  for  values
 for assessment rolls with tentative completion dates after July 1, 1992,
 and  provided  further,  that  this  act  shall remain in full force and
 effect until March 31, [2018] 2021, at which time  section  593  of  the
 real  property  tax  law  as  added  by section one of this act shall be
 repealed.
   § 2. This act shall take effect immediately.
 
                                  PART J
 
   Section 1. Subdivision 5 of section 81 of the state  finance  law,  as
 added by chapter 432 of the laws of 2016, is amended to read as follows:
   5.  Moneys  shall be payable from the fund on the audit and warrant of
 the comptroller on vouchers approved and certified by  the  commissioner
 of health, for veterans' homes operated by the department of health, and
 by the [commissioner of education] CHANCELLOR OF THE STATE UNIVERSITY OF
 NEW YORK, for the veterans' home operated by the state university of New
 York.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after November 14, 2016.

                                  PART K
 
   Section 1. Section 352 of the economic development law,  as  added  by
 section  1 of part MM of chapter 59 of the laws of 2010, subdivisions 7,
 8, 9, 10, 12, 13, 14, 15, 16, 17, 18, 19,  20  and  21  as  amended  and
 subdivision 11 as added by section 1 of part K of chapter 59 of the laws
 of 2015, is amended to read as follows:

 S. 2009--A                         26                         A. 3009--A
 
   § 352. Definitions. For the purposes of this article:
   1.  "Agriculture"  means  both agricultural production (establishments
 performing the complete farm or ranch operation, such as farm  owner-op-
 erators,  tenant  farm  operators,  and  sharecroppers) and agricultural
 support (establishments that perform one or more  activities  associated
 with farm operation, such as soil preparation, planting, harvesting, and
 management, on a contract or fee basis).
   2. "Back office operations" means a business function that may include
 one  or  more of the following activities: customer service, information
 technology and data processing, human resources, accounting and  related
 administrative functions.
   3. "Benefit-cost ratio" means the following calculation: the numerator
 is the sum of (i) the value of all remuneration projected to be paid for
 all  net new jobs during the period of participation in the program, and
 (ii) the value of capital investments to be made by the business  enter-
 prise during the period of participation in the program, and the denomi-
 nator  is  the amount of total tax benefits under this article that will
 be used and refunded.
   4. "Certificate of eligibility"  means  the  document  issued  by  the
 department  to  an  applicant  that  has  completed an application to be
 admitted into the excelsior jobs program and has been accepted into  the
 program  by  the  department. Possession of a certificate of eligibility
 does not by itself guarantee the eligibility to claim the tax credit.
   5. "Certificate of tax credit" means the document issued to a  partic-
 ipant  by  the  department,  after  the department has verified that the
 participant has met all applicable eligibility criteria in this article.
 The certificate shall be issued annually if such criteria are  satisfied
 and  shall specify the exact amount of each of the tax credit components
 under this article that a participant may  claim,  pursuant  to  section
 three  hundred fifty-five of this article, and shall specify the taxable
 year in which such credit may be claimed.
   6. "Distribution center" means a large scale facility involving  proc-
 essing,  repackaging  and/or movement of finished or semi-finished goods
 to retail locations across a multi-state area.
   7. "Entertainment company" means a corporation,  partnership,  limited
 partnership,  or  other  entity principally engaged in the production or
 post production of (i) motion pictures,  which  shall  include  feature-
 length  films  and  television  films,  (ii) instructional videos, (iii)
 televised commercial advertisements, (iv) animated  films  or  cartoons,
 (v) music videos, (vi) television programs, which shall include, but not
 be  limited  to,  television series, television pilots, and single tele-
 vision episodes, or (vii) programs primarily intended for  radio  broad-
 cast. "Entertainment company" shall not include an entity (i) principal-
 ly engaged in the live performance of events, including, but not limited
 to,  theatrical  productions,  concerts,  circuses, and sporting events,
 (ii) principally engaged in the production of content intended primarily
 for industrial, corporate or institutional end-users, (iii)  principally
 engaged  in  the  production  of  fundraising films or programs, or (iv)
 engaged in the production of content  for  which  records  are  required
 under  section  2257  of  title 18, United States code, to be maintained
 with respect to any performer in such production.
   8. "Financial services data centers  or  financial  services  customer
 back  office  operations"  means  operations  that  manage  the  data or
 accounts of existing customers or provide product or service information
 and support to customers  of  financial  services  companies,  including
 banks,  other  lenders,  securities and commodities brokers and dealers,

 S. 2009--A                         27                         A. 3009--A
 
 investment banks,  portfolio  managers,  trust  offices,  and  insurance
 companies.
   9. "Investment zone" shall mean an area within the state that had been
 designated under paragraph (i) of subdivision (a) and subdivision (d) of
 section  nine  hundred fifty-eight of the general municipal law that was
 wholly contained within up to  four  distinct  and  separate  contiguous
 areas  as  of the date immediately preceding the date the designation of
 such area expired pursuant to section nine  hundred  sixty-nine  of  the
 general municipal law.
   10. "LIFE SCIENCES" MEANS THE FIELD OF BIOTECHNOLOGY, PHARMACEUTICALS,
 BIOMEDICAL  TECHNOLOGIES, LIFE SYSTEMS TECHNOLOGIES, HEALTH INFORMATICS,
 HEALTH ROBOTICS OR BIOMEDICAL DEVICES.
   11. "LIFE SCIENCES COMPANY" MEANS A BUSINESS ENTITY OR AN ORGANIZATION
 OR INSTITUTION THAT DEVOTES THE MAJORITY OF ITS EFFORTS IN  THE  VARIOUS
 STAGES  OF RESEARCH, DEVELOPMENT, TECHNOLOGY TRANSFER AND COMMERCIALIZA-
 TION RELATED TO ANY LIFE SCIENCES FIELD.
   12. "Manufacturing" means the process of working  raw  materials  into
 products  suitable for use or which gives new shapes, new quality or new
 combinations to matter which has already gone  through  some  artificial
 process  by  the  use  of machinery, tools, appliances, or other similar
 equipment. "Manufacturing" does not include an operation  that  involves
 only  the  assembly  of  components,  provided, however, the assembly of
 motor vehicles or other high value-added products  shall  be  considered
 manufacturing.
   [11.]  13.  "Music  production"  means  the  process of creating sound
 recordings of at least eight minutes,  recorded  in  professional  sound
 studios,  intended  for  commercial release. "Music production" does not
 include recording of live concerts, or  recordings  that  are  primarily
 spoken  word or wildlife or nature sounds, or produced for instructional
 use or advertising or promotional purposes.
   [12.] 14. "Net new jobs" means:
   (a) jobs created in this state that (i) are new to the state,
   (ii) have not been transferred from employment with  another  business
 located in this state including from a related person in this state,
   (iii)  are  either full-time wage-paying jobs or equivalent to a full-
 time wage-paying job requiring at least thirty-five hours per week, and
   (iv) are filled for more than six months; or
   (b) jobs obtained by an entertainment company in this state (i)  as  a
 result  of  the termination of a licensing agreement with another enter-
 tainment company, (ii) that the commissioner determines to be at risk of
 leaving the state as a direct result of the termination, (iii) that  are
 either full-time wage-paying jobs or equivalent to a full-time wage-pay-
 ing job requiring at least thirty-five hours per week, and (iv) that are
 filled for more than six months.
   [13.] 15. "Participant" means a business entity that:
   (a)  has  completed  an application prescribed by the department to be
 admitted into the program;
   (b) has been issued a certificate of eligibility by the department;
   (c) has demonstrated that it meets the eligibility criteria in section
 three hundred fifty-three and subdivision two of section  three  hundred
 fifty-four of this article; and
   (d) has been certified as a participant by the commissioner.
   [14.]  16. "Preliminary schedule of benefits" means the maximum aggre-
 gate amount of each component of the tax credit that  a  participant  in
 the excelsior jobs program is eligible to receive pursuant to this arti-
 cle.  The schedule shall indicate the annual amount of each component of

 S. 2009--A                         28                         A. 3009--A
 
 the credit a participant may claim in each of its ten years of eligibil-
 ity.    The  preliminary  schedule  of  benefits  shall be issued by the
 department when the department approves the  application  for  admission
 into  the  program.  The  commissioner may amend that schedule, provided
 that the commissioner complies with the credit  caps  in  section  three
 hundred fifty-nine of this article.
   [15.] 17. "Qualified investment" means an investment in tangible prop-
 erty  (including  a  building  or  a structural component of a building)
 owned by a business enterprise which:
   (a) is depreciable pursuant to section one hundred sixty-seven of  the
 internal revenue code;
   (b) has a useful life of four years or more;
   (c)  is  acquired by purchase as defined in section one hundred seven-
 ty-nine (d) of the internal revenue code;
   (d) has a situs in this state; and
   (e) is placed in service in the state on or after the date the certif-
 icate of eligibility is issued to the business enterprise.
   [16.] 18. "Regionally significant project" means  (a)  a  manufacturer
 creating at least fifty net new jobs in the state and making significant
 capital investment in the state; (b) a business creating at least twenty
 net  new jobs in agriculture in the state and making significant capital
 investment in the state, (c) a  financial  services  firm,  distribution
 center, or back office operation creating at least three hundred net new
 jobs  in  the  state  and  making  significant capital investment in the
 state, (d) a scientific research and development firm creating at  least
 twenty net new jobs in the state, and making significant capital invest-
 ment  in the state, (E) A LIFE SCIENCES COMPANY CREATING AT LEAST TWENTY
 NET NEW JOBS IN THE STATE AND MAKING SIGNIFICANT CAPITAL  INVESTMENT  IN
 THE STATE or [(e)] (F) an entertainment company creating or obtaining at
 least two hundred net new jobs in the state and making significant capi-
 tal  investment in the state. Other businesses creating three hundred or
 more net new jobs in the state and making significant capital investment
 in the state may be considered  eligible  as  a  regionally  significant
 project  by  the commissioner as well. The commissioner shall promulgate
 regulations pursuant to section three hundred fifty-six of this  article
 to determine what constitutes significant capital investment for each of
 the project categories indicated in this subdivision and what additional
 criteria a business must meet to be eligible as a regionally significant
 project,  including,  but  not  limited to, whether a business exports a
 substantial portion of its products or services outside of the state  or
 outside of a metropolitan statistical area or county within the state.
   [17.]  19.  "Related  person"  means  a  "related  person" pursuant to
 subparagraph (c) of paragraph three of subsection (b)  of  section  four
 hundred sixty-five of the internal revenue code.
   [18.]  20. "Remuneration" means wages and benefits paid to an employee
 by a participant in the excelsior jobs program.
   [19.] 21. "Research and development expenditures" mean the expenses of
 the business enterprise that are qualified research expenses  under  the
 federal  research  and development credit under section forty-one of the
 internal revenue code and are attributable to  activities  conducted  in
 the  state.  If the federal research and development credit has expired,
 then the research and development expenditures shall be calculated as if
 the federal research and development credit structure and definition  in
 effect in federal tax year two thousand nine were still in effect.
   [20.]  22.  "Scientific  research  and  development"  means conducting
 research and experimental development in the physical, engineering,  and

 S. 2009--A                         29                         A. 3009--A
 
 life  sciences,  including  but not limited to agriculture, electronics,
 environmental, biology,  botany,  biotechnology,  computers,  chemistry,
 food, fisheries, forests, geology, health, mathematics, medicine, ocean-
 ography,  pharmacy, physics, veterinary, and other allied subjects.  For
 the purposes of this article, scientific research and  development  does
 not include medical or veterinary laboratory testing facilities.
   [21.]  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 general  busi-
 ness 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.
   § 2. Subdivisions 1 and 3 of section 353 of the  economic  development
 law,  as  amended  by  section  2 of part K of chapter 59 of the laws of
 2015, are amended to read as follows:
   1. To be a participant in the excelsior jobs program, a business enti-
 ty shall operate in New York state predominantly:
   (a) as a financial services data center or a financial  services  back
 office operation;
   (b) in manufacturing;
   (c) in software development and new media;
   (d) in scientific research and development;
   (e) in agriculture;
   (f)  in  the  creation  or  expansion of back office operations in the
 state;
   (g) in a distribution center;
   (h) in an  industry  with  significant  potential  for  private-sector
 economic  growth  and  development  in  this state as established by the
 commissioner in regulations promulgated pursuant  to  this  article.  In
 promulgating  such  regulations  the  commissioner shall include job and
 investment criteria;
   (i) as an entertainment company; [or]
   (j) in music production; OR
   (K) AS A LIFE SCIENCES COMPANY.
   3. For the purposes of this article, in order to  participate  in  the
 excelsior  jobs  program,  a  business entity operating predominantly in
 manufacturing must create at least ten net new jobs; a  business  entity
 operating predominately in agriculture must create at least five net new
 jobs;  a  business entity operating predominantly as a financial service
 data center or financial services customer back  office  operation  must
 create at least fifty net new jobs; a business entity operating predomi-
 nantly  in scientific research and development must create at least five
 net new jobs; a business  entity  operating  predominantly  in  software
 development  must  create  at least five net new jobs; a business entity
 creating or expanding back office operations must create at least  fifty
 net  new  jobs;  a  business  entity  operating  predominately  in music
 production must create at least five net new  jobs;  a  business  entity
 operating  predominantly  as  an  entertainment  company  must create or
 obtain at least one hundred net new jobs; or a business entity operating
 predominantly as a distribution center in the state must create at least
 seventy-five net new jobs,  notwithstanding  subdivision  five  of  this
 section; OR A BUSINESS ENTITY OPERATING PREDOMINATELY AS A LIFE SCIENCES
 COMPANY  MUST  CREATE  AT  LEAST FIVE NET NEW JOBS; or a business entity
 must be a regionally significant project as defined in this article; or

 S. 2009--A                         30                         A. 3009--A
 
   § 3. Subdivision 4 of section 353 of the economic development law,  as
 amended  by  section  1  of part C of chapter 68 of the laws of 2013, is
 amended to read as follows:
   4.  A business entity operating predominantly in one of the industries
 referenced in paragraphs (a) through (h) OR IN PARAGRAPH (K) of subdivi-
 sion one of this section but which does not meet the job requirements of
 subdivision three of this section must have at least  twenty-five  full-
 time job equivalents unless such business is a business entity operating
 predominantly  in manufacturing then it must have at least ten full-time
 job equivalents and must demonstrate that its benefit-cost ratio  is  at
 least ten to one.
   §  4. Subdivision 5 of section 354 of the economic development law, as
 amended by section 2 of part O of chapter 60 of the  laws  of  2016,  is
 amended to read as follows:
   5.  A participant may claim tax benefits commencing in the first taxa-
 ble year that the business enterprise  receives  a  certificate  of  tax
 credit  or  the first taxable year listed on its preliminary schedule of
 benefits, whichever is later. A participant may claim such benefits  for
 the  next  nine consecutive taxable years, provided that the participant
 demonstrates to the department that it continues to satisfy  the  eligi-
 bility  criteria  specified in section three hundred fifty-three of this
 article and subdivision two of this section in  each  of  those  taxable
 years, and provided that no tax credits may be allowed for taxable years
 beginning on or after January first, two thousand [twenty-seven] THIRTY.
 If,  in  any given year, a participant who has satisfied the eligibility
 criteria specified in section three hundred fifty-three of this  article
 realizes  job  creation less than the estimated amount, the credit shall
 be reduced by the proportion of actual job  creation  to  the  estimated
 amount,  provided the proportion is at least seventy-five percent of the
 jobs estimated.
   § 5. Section 359 of  the  economic  development  law,  as  amended  by
 section  1  of  part  O of chapter 60 of the laws of 2016, is amended to
 read as follows:
   § 359. Cap on tax credit. The total amount of tax  credits  listed  on
 certificates  of  tax  credit issued by the commissioner for any taxable
 year may not exceed the limitations set forth in this section.  One-half
 of  any  amount of tax credits not awarded for a particular taxable year
 in years two thousand eleven through two  thousand  twenty-four  may  be
 used by the commissioner to award tax credits in another taxable year.

 Credit components in the aggregate           With respect to taxable
 shall not exceed:                            years beginning in:
 
           $ 50 million                               2011
           $ 100 million                              2012
           $ 150 million                              2013
           $ 200 million                              2014
           $ 250 million                              2015
           $ 183 million                              2016
           $ 183 million                              2017
           $ 183 million                              2018
           $ 183 million                              2019
           $ 183 million                              2020
           $ 183 million                              2021
           $ 133 million                              2022
           $ 83 million                               2023

 S. 2009--A                         31                         A. 3009--A
 
           $ 36 million                               2024
 
   Twenty-five  percent  of  tax credits shall be allocated to businesses
 accepted into the  program  under  subdivision  four  of  section  three
 hundred  fifty-three  of  this  article  and seventy-five percent of tax
 credits shall be allocated to businesses accepted into the program under
 subdivision three of section three hundred fifty-three of this article.
   Provided, however, if by September thirtieth of a calendar  year,  the
 department  has  not  allocated  the full amount of credits available in
 that year to either: (i) businesses  accepted  into  the  program  under
 subdivision four of section three hundred fifty-three of this article or
 (ii)  businesses  accepted  into  the program under subdivision three of
 section three hundred fifty-three of this article, the commissioner  may
 allocate  any  remaining  tax  credits  to businesses referenced in this
 paragraph as needed; provided, however, that under no circumstances  may
 the  aggregate  statutory  cap  for  all  program years be exceeded. One
 hundred percent of the unawarded amounts remaining at  the  end  of  two
 thousand twenty-four may be allocated in subsequent years, notwithstand-
 ing  the  fifty  percent  limitation  on  any amounts of tax credits not
 awarded in taxable years two thousand eleven through two thousand  twen-
 ty-four.  Provided,  however,  no tax credits may be allowed for taxable
 years beginning on or after January first, two  thousand  [twenty-seven]
 THIRTY.
   §  6.  Subdivision  (b)  of  section  31 of the tax law, as amended by
 section 3 of part O of chapter 60 of the laws of  2016,  is  amended  to
 read as follows:
   (b) To be eligible for the excelsior jobs program credit, the taxpayer
 shall  have  been issued a "certificate of tax credit" by the department
 of economic development pursuant to subdivision four  of  section  three
 hundred  fifty-four  of  the economic development law, which certificate
 shall set forth the amount of each credit component that may be  claimed
 for  the  taxable year. A taxpayer may claim such credit for ten consec-
 utive taxable years commencing  in  the  first  taxable  year  that  the
 taxpayer  receives a certificate of tax credit or the first taxable year
 listed on its preliminary schedule  of  benefits,  whichever  is  later,
 provided  that no tax credits may be allowed for taxable years beginning
 on or after January first, two  thousand  [twenty-seven]  THIRTY.    The
 taxpayer shall be allowed to claim only the amount listed on the certif-
 icate  of  tax  credit  for  that taxable year. Such certificate must be
 attached to the taxpayer's return. No cost or expense paid  or  incurred
 by  the  taxpayer shall be the basis for more than one component of this
 credit or any other tax credit, except  as  provided  in  section  three
 hundred fifty-five of the economic development law.
   §  7.  The  tax  law  is amended by adding a new section 43 to read as
 follows:
   § 43. LIFE SCIENCES TAX CREDITS. (A) LIFE SCIENCES RESEARCH AND DEVEL-
 OPMENT TAX CREDIT. (1) ALLOWANCE OF CREDIT. (I) A  TAXPAYER  THAT  IS  A
 QUALIFIED  LIFE  SCIENCES  COMPANY, OR THAT IS A SOLE PROPRIETOR OF OR A
 PARTNER IN A PARTNERSHIP THAT IS A QUALIFIED LIFE SCIENCES COMPANY OR  A
 SHAREHOLDER  OF  A  NEW  YORK  S  CORPORATION  THAT  IS A QUALIFIED LIFE
 SCIENCES COMPANY, AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR  TWENTY-
 TWO  OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSU-
 ANT TO THE PROVISIONS REFERRED TO IN SUBDIVISION (E)  OF  THIS  SECTION,
 FOR  A  PERIOD  OF FIVE YEARS, AS PROVIDED IN CLAUSE (B) OF SUBPARAGRAPH
 (II) OF THIS PARAGRAPH, TO BE COMPUTED AS PROVIDED IN THIS  SUBDIVISION,
 PROVIDED  THAT NO CREDIT SHALL BE ALLOWED FOR TAXABLE YEARS BEGINNING ON

 S. 2009--A                         32                         A. 3009--A

 OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT. SUCH  CREDIT  MAY  BE
 CLAIMED  IN  THE TAXABLE YEAR SPECIFIED ON THE CERTIFICATE OF TAX CREDIT
 ISSUED TO THE QUALIFIED LIFE SCIENCES COMPANY.
   (II)(A) FOR A QUALIFIED LIFE SCIENCES COMPANY THAT EMPLOYS TEN OR MORE
 PERSONS DURING THE TAXABLE YEAR, THE AMOUNT OF THE CREDIT SHALL BE EQUAL
 TO  FIFTEEN  PERCENT  OF SUCH QUALIFIED LIFE SCIENCES COMPANY'S RESEARCH
 AND DEVELOPMENT EXPENDITURES IN THIS STATE FOR THE TAXABLE YEAR.  FOR  A
 QUALIFIED  LIFE  SCIENCES  COMPANY  THAT  EMPLOYS  LESS THAN TEN PERSONS
 DURING THE TAXABLE YEAR, THE AMOUNT OF THE  CREDIT  SHALL  BE  EQUAL  TO
 TWENTY  PERCENT  OF  SUCH QUALIFIED LIFE SCIENCES COMPANY'S RESEARCH AND
 DEVELOPMENT EXPENDITURES IN THIS STATE FOR THE TAXABLE YEAR.
   (B) THE CREDIT SHALL BE ALLOWED ONLY WITH RESPECT TO THE FIRST TAXABLE
 YEAR DURING WHICH THE CRITERIA SET FORTH IN THIS  PARAGRAPH  ARE  SATIS-
 FIED,  AND WITH RESPECT TO EACH OF THE FOUR TAXABLE YEARS NEXT FOLLOWING
 (BUT ONLY, WITH RESPECT TO EACH OF SUCH  YEARS,  IF  SUCH  CRITERIA  ARE
 SATISFIED).    SUBSEQUENT CERTIFICATIONS OF THE LIFE SCIENCES COMPANY BY
 THE DEPARTMENT OF ECONOMIC  DEVELOPMENT  PURSUANT  TO  THIS  SUBDIVISION
 SHALL  NOT EXTEND THE FIVE TAXABLE YEAR TIME LIMITATION ON THE ALLOWANCE
 OF THE CREDIT SET FORTH IN THE PRECEDING SENTENCE.
   (III) THE TOTAL  AMOUNT  OF  CREDIT  ALLOWABLE  TO  A  QUALIFIED  LIFE
 SCIENCES  COMPANY, OR, IF THE LIFE SCIENCES COMPANY IS PROPERLY INCLUDED
 OR REQUIRED TO BE INCLUDED IN A COMBINED REPORT, TO THE COMBINED  GROUP,
 TAKEN  IN THE AGGREGATE, SHALL NOT EXCEED FIVE HUNDRED THOUSAND DOLLARS.
 IF THE LIFE SCIENCES COMPANY IS A PARTNER IN A PARTNERSHIP OR SHAREHOLD-
 ER OF A NEW YORK S CORPORATION, THEN THE TOTAL AMOUNT OF  CREDIT  ALLOW-
 ABLE  SHALL  BE APPLIED AT THE ENTITY LEVEL, SO THAT THE TOTAL AMOUNT OF
 CREDIT ALLOWABLE TO ALL THE PARTNERS OR SHAREHOLDERS OF EACH SUCH  ENTI-
 TY,  TAKEN  IN  THE  AGGREGATE,  DOES  NOT  EXCEED FIVE HUNDRED THOUSAND
 DOLLARS.
   (IV) NO  RESEARCH  AND  DEVELOPMENT  EXPENDITURES  MADE  BY  THE  LIFE
 SCIENCES  COMPANY  AND USED EITHER AS THE BASIS FOR THE ALLOWANCE OF THE
 CREDIT PROVIDED FOR PURSUANT TO THIS SUBDIVISION OR USED IN  THE  CALCU-
 LATION OF THE CREDIT PROVIDED PURSUANT TO THIS SUBDIVISION SHALL BE USED
 TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER OR BE USED IN
 THE CALCULATION OF ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER.
   (2)  MAXIMUM  AMOUNT  OF  CREDITS. THE AGGREGATE AMOUNT OF TAX CREDITS
 ALLOWED UNDER THIS SUBDIVISION TO TAXPAYERS SUBJECT TO TAX  UNDER  ARTI-
 CLES  NINE-A AND TWENTY-TWO OF THIS CHAPTER IN ANY TAXABLE YEAR SHALL BE
 TEN MILLION DOLLARS, AND SHALL BE ALLOTTED FROM THE FUNDS AVAILABLE  FOR
 TAX  CREDITS  UNDER  ARTICLE  SEVENTEEN OF THE ECONOMIC DEVELOPMENT LAW.
 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 LIFE  SCIENCES  RESEARCH
 AND  DEVELOPMENT TAX CREDIT WITH SUCH DEPARTMENT. IF THE TOTAL AMOUNT OF
 ALLOCATED CREDITS APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE  AGGRE-
 GATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SUBDIVISION,
 SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY
 OF THE SUBSEQUENT YEAR.
   (B) ANGEL INVESTOR TAX CREDIT. (1) ALLOWANCE OF CREDIT. (I) A TAXPAYER
 THAT IS A QUALIFIED ANGEL INVESTOR, OR THAT IS A SOLE PROPRIETOR OF OR A
 PARTNER  IN A PARTNERSHIP THAT IS A QUALIFIED ANGEL INVESTOR OR A SHARE-
 HOLDER OF A NEW YORK S CORPORATION THAT IS A QUALIFIED  ANGEL  INVESTOR,
 AND  IS  SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP-
 TER, SHALL BE ALLOWED  A  CREDIT  AGAINST  SUCH  TAX,  PURSUANT  TO  THE
 PROVISIONS  REFERRED TO IN SUBDIVISION (E) OF THIS SECTION, FOR A PERIOD
 OF TEN YEARS, TO BE COMPUTED AS PROVIDED IN THIS  SUBDIVISION,  PROVIDED

 S. 2009--A                         33                         A. 3009--A
 
 THAT  NO CREDIT SHALL BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER
 JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT.  SUCH CREDIT SHALL BE  CLAIMED
 IN  THE  TAXABLE  YEAR  SPECIFIED ON THE CERTIFICATE OF ANGEL INVESTMENT
 ISSUED TO THE QUALIFIED ANGEL INVESTOR.
   (II) THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF
 EACH ANGEL INVESTMENT MADE DURING THE TAXABLE YEAR.
   (III) THE TOTAL AMOUNT OF CREDIT ALLOWABLE TO A QUALIFIED ANGEL INVES-
 TOR,  OR,  IF  THE  QUALIFIED  ANGEL  INVESTOR  IS  PROPERLY INCLUDED OR
 REQUIRED TO BE INCLUDED IN A COMBINED REPORT,  TO  THE  COMBINED  GROUP,
 TAKEN  IN  THE  AGGREGATE,  SHALL  NOT EXCEED TWO HUNDRED FIFTY THOUSAND
 DOLLARS. IF THE ANGEL INVESTOR IS A PARTNER IN A PARTNERSHIP  OR  SHARE-
 HOLDER  OF  A  NEW  YORK  S CORPORATION, THEN THE TOTAL AMOUNT OF CREDIT
 ALLOWABLE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE TOTAL AMOUNT
 OF CREDIT ALLOWABLE TO ALL THE PARTNERS OR  SHAREHOLDERS  OF  EACH  SUCH
 ENTITY,  TAKEN IN THE AGGREGATE, DOES NOT EXCEED TWO HUNDRED FIFTY THOU-
 SAND DOLLARS.
   (IV) NO INVESTMENT MADE BY THE TAXPAYER AND USED EITHER AS  THE  BASIS
 FOR  THE  ALLOWANCE OF THE CREDIT PROVIDED FOR PURSUANT TO THIS SUBDIVI-
 SION OR USED IN THE CALCULATION OF THE CREDIT PROVIDED PURSUANT TO  THIS
 SUBDIVISION  SHALL BE USED TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO
 THIS CHAPTER OR USED IN THE CALCULATION  OF  ANY  OTHER  CREDIT  ALLOWED
 PURSUANT TO THIS CHAPTER.
   (2)  RECAPTURE. (I) IF THE CERTIFICATE OF ANGEL INVESTMENT OF AN ANGEL
 INVESTOR ISSUED BY THE DEPARTMENT OF  ECONOMIC  DEVELOPMENT  UNDER  THIS
 SECTION IS REVOKED BY SUCH DEPARTMENT BECAUSE THE INVESTMENT MADE BY THE
 ANGEL  INVESTOR  DOES NOT MEET THE ELIGIBILITY REQUIREMENTS SET FORTH IN
 THIS SECTION AND IN REGULATION, THE AMOUNT OF CREDIT DESCRIBED  IN  THIS
 SUBDIVISION  AND CLAIMED BY SUCH ANGEL INVESTOR PRIOR TO THAT REVOCATION
 SHALL BE ADDED BACK AS TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCA-
 TION BECOMES FINAL.
   (II) WHERE A TAXPAYER SELLS, TRANSFERS OR OTHERWISE DISPOSES OF CORPO-
 RATE STOCK, A PARTNERSHIP INTEREST OR OTHER OWNERSHIP  INTEREST  ARISING
 FROM  THE  MAKING OF AN ANGEL INVESTMENT THAT WAS THE BASIS, IN WHOLE OR
 IN PART, FOR THE ALLOWANCE OF THE CREDIT PROVIDED FOR UNDER THIS  SUBDI-
 VISION, OR WHERE AN INVESTMENT THAT WAS THE BASIS FOR SUCH ALLOWANCE IS,
 IN WHOLE OR IN PART, RECOVERED BY SUCH TAXPAYER, AND SUCH DISPOSITION OR
 RECOVERY  OCCURS  DURING  THE  TAXABLE YEAR OR WITHIN FORTY-EIGHT MONTHS
 FROM THE CLOSE OF THE TAXABLE YEAR WITH RESPECT TO WHICH SUCH CREDIT  IS
 ALLOWED, THE TAXPAYER SHALL ADD BACK AS TAX, WITH RESPECT TO THE TAXABLE
 YEAR  IN WHICH THE DISPOSITION OR RECOVERY DESCRIBED ABOVE OCCURRED, THE
 AMOUNT OF THE CREDIT ORIGINALLY CLAIMED BY THE TAXPAYER.
   (3) MAXIMUM AMOUNT OF CREDITS. THE AGGREGATE  AMOUNT  OF  TAX  CREDITS
 ALLOWED  UNDER  THIS SUBDIVISION TO TAXPAYERS SUBJECT TO TAX UNDER ARTI-
 CLES NINE-A AND TWENTY-TWO OF THIS CHAPTER IN ANY TAXABLE YEAR SHALL  BE
 FIVE  MILLION  DOLLARS.  SUCH AGGREGATE AMOUNT OF CREDITS SHALL BE ALLO-
 CATED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT AMONG TAXPAYERS IN ORDER
 OF PRIORITY BASED UPON THE DATE OF FILING AN APPLICATION FOR  ALLOCATION
 OF  ANGEL  INVESTOR TAX 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 SUBDI-
 VISION, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR  ON  THE
 FIRST DAY OF THE SUBSEQUENT YEAR.
   (C)  DEFINITIONS.  AS  USED  IN THIS SECTION THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (1) "ANGEL INVESTMENT" MEANS AN INVESTMENT IN THE FORM OF  A  CONTRIB-
 UTION  TO  THE  CAPITAL OF THE QUALIFIED LIFE SCIENCES COMPANY, PROVIDED

 S. 2009--A                         34                         A. 3009--A
 
 THAT SUCH INVESTMENT IS AT RISK AND IS NOT  SECURED  OR  GUARANTEED.  AN
 "ANGEL  INVESTMENT"  DOES NOT INCLUDE ANY LOANS, OR INVESTMENTS IN HEDGE
 FUNDS OR COMMODITY FUNDS WITH INSTITUTIONAL INVESTORS  OR  WITH  INVEST-
 MENTS  IN  A  BUSINESS  INVOLVED  IN  RETAIL,  REAL ESTATE, PROFESSIONAL
 SERVICES, GAMING OR FINANCIAL SERVICES.
   (2) "ANGEL INVESTOR" MEANS AN ACCREDITED INVESTOR, AS DEFINED  BY  THE
 UNITED  STATE  SECURITIES  AND  EXCHANGE  COMMISSION PURSUANT TO SECTION
 SEVENTY-SEVEN-B OF TITLE FIFTEEN OF THE UNITED STATES CODE, OR A NETWORK
 OF ACCREDITED INVESTORS, THAT REVIEWS NEW  OR  PROPOSED  BUSINESSES  FOR
 POTENTIAL  INVESTMENT  AND  THAT  MAY  SEEK  ACTIVE INVOLVEMENT, SUCH AS
 CONSULTING AND MENTORING, IN A LIFE SCIENCES COMPANY.  "ANGEL  INVESTOR"
 DOES  NOT  INCLUDE  A  PERSON CONTROLLING, DIRECTLY OR INDIRECTLY, FIFTY
 PERCENT OR MORE OF THE LIFE SCIENCES COMPANY INVESTED IN  BY  THE  ANGEL
 INVESTOR  OR WHO IS INVOLVED IN THE LIFE SCIENCES COMPANY IN A FULL-TIME
 PROFESSIONAL CAPACITY, AND DOES NOT INCLUDE A CORPORATION OF WHICH  SUCH
 LIFE  SCIENCES COMPANY IS A DIRECT OR INDIRECT SUBSIDIARY, AS DEFINED IN
 SECTION TWO HUNDRED EIGHT OF THIS CHAPTER.
   (3) "CERTIFICATE OF ANGEL INVESTMENT" MEANS THE DOCUMENT ISSUED  TO  A
 QUALIFIED  ANGEL  INVESTOR BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT FOR
 EACH ANGEL INVESTMENT MADE BY THE QUALIFIED ANGEL  INVESTOR,  AFTER  THE
 DEPARTMENT OR ECONOMIC DEVELOPMENT HAS VERIFIED THAT SUCH ANGEL INVESTOR
 HAS  MET  ALL APPLICABLE CRITERIA IN THIS SECTION TO BE ELIGIBLE FOR THE
 ANGEL INVESTOR TAX CREDIT ALLOWED UNDER SUBDIVISION (B) OF THIS SECTION,
 INCLUDING BUT NOT LIMITED TO CERTIFYING THAT THE LIFE  SCIENCES  COMPANY
 IN WHICH THE ANGEL INVESTOR HAS MADE SUCH INVESTMENT IS A QUALIFIED LIFE
 SCIENCES  COMPANY.  THE  CERTIFICATE  SHALL  BE  ISSUED ANNUALLY IF SUCH
 CRITERIA ARE SATISFIED AND SHALL SPECIFY THE EXACT AMOUNT OF EACH  ANGEL
 INVESTMENT  MADE  BY THE ANGEL INVESTOR AND THE AMOUNT OF THE TAX CREDIT
 THAT MAY BE CLAIMED BY SUCH ANGEL INVESTOR, PURSUANT TO SUBDIVISION  (B)
 OF THIS SECTION, AND SHALL SPECIFY THE TAXABLE YEAR IN WHICH SUCH CREDIT
 MAY BE CLAIMED.
   (4)  "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A QUALI-
 FIED LIFE SCIENCES COMPANY BY THE DEPARTMENT  OF  ECONOMIC  DEVELOPMENT,
 AFTER THE DEPARTMENT OF ECONOMIC DEVELOPMENT HAS VERIFIED THAT SUCH LIFE
 SCIENCES  COMPANY  HAS MET ALL APPLICABLE CRITERIA IN THIS SECTION TO BE
 ELIGIBLE FOR THE LIFE  SCIENCES  RESEARCH  AND  DEVELOPMENT  TAX  CREDIT
 ALLOWED UNDER SUBDIVISION (A) OF THIS SECTION, INCLUDING BUT NOT LIMITED
 TO  VERIFYING  THAT  THE  LIFE  SCIENCES  COMPANY IS A NEW BUSINESS. THE
 CERTIFICATE SHALL BE ISSUED ANNUALLY IF SUCH CRITERIA ARE SATISFIED  AND
 SHALL  SPECIFY THE EXACT AMOUNT OF THE LIFE SCIENCES RESEARCH AND DEVEL-
 OPMENT TAX CREDIT THAT MAY BE CLAIMED BY SUCH  QUALIFIED  LIFE  SCIENCES
 COMPANY,  PURSUANT TO SUBDIVISION (A) OF THIS SECTION, AND SHALL SPECIFY
 THE TAXABLE YEAR IN WHICH SUCH CREDIT MAY BE CLAIMED.
   (5) "NEW BUSINESS" MEANS ANY BUSINESS THAT QUALIFIES AS A NEW BUSINESS
 UNDER EITHER PARAGRAPH (F) OF SUBDIVISION ONE  OF  SECTION  TWO  HUNDRED
 TEN-B  OR  PARAGRAPH TEN OF SUBSECTION ONE OF SECTION SIX HUNDRED SIX OF
 THIS CHAPTER.
   (6) "QUALIFIED ANGEL INVESTOR" MEANS AN ANGEL  INVESTOR  CERTIFIED  BY
 THE DEPARTMENT OF ECONOMIC DEVELOPMENT AS AN ANGEL INVESTOR.
   (7)  "QUALIFIED  LIFE SCIENCES COMPANY" MEANS A LIFE SCIENCES COMPANY,
 AS DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED  FIFTY-TWO  OF
 THE  ECONOMIC DEVELOPMENT LAW, THAT HAS BEEN CERTIFIED BY THE DEPARTMENT
 OF ECONOMIC DEVELOPMENT AS A LIFE SCIENCES COMPANY AND IS  A  NEW  BUSI-
 NESS.  PROVIDED  THAT,  FOR  PURPOSES  OF  THE ANGEL INVESTOR TAX CREDIT
 PROVIDED PURSUANT TO SUBDIVISION (B) OF THIS SECTION, A  QUALIFIED  LIFE
 SCIENCES  COMPANY  SHALL  AT  THE  TIME THAT THE ANGEL INVESTOR MAKES AN

 S. 2009--A                         35                         A. 3009--A
 
 INITIAL ANGEL INVESTMENT IN SUCH LIFE SCIENCES COMPANY EMPLOY TWENTY  OR
 FEWER  PERSONS  DURING  THE  TAXABLE YEAR AND SHALL HAVE HAD, DURING THE
 IMMEDIATELY PRECEDING TAXABLE YEAR, GROSS RECEIPTS OF NOT  GREATER  THAN
 FIVE  HUNDRED  THOUSAND DOLLARS.   PROVIDED HOWEVER, FOR PURPOSES OF THE
 CREDITS AUTHORIZED UNDER THIS SECTION, THE DEPARTMENT OF ECONOMIC DEVEL-
 OPMENT SHALL NOT CERTIFY AS A LIFE  SCIENCES  COMPANY  ANY  CORPORATION,
 PARTNERSHIP,  LIMITED  PARTNERSHIP, OR OTHER ENTITY THAT HAS BEEN WITHIN
 THE IMMEDIATELY PRECEDING SIXTY MONTHS A RELATED  PERSON  TO  AN  ENTITY
 THAT  IS  A LIFE SCIENCES COMPANY OR AN ENTITY THAT IS ENGAGED IN SCIEN-
 TIFIC RESEARCH AND DEVELOPMENT AS DEFINED IN SUBDIVISION  TWENTY-TWO  OF
 SECTION THREE HUNDRED FIFTY-TWO OF THE ECONOMIC DEVELOPMENT LAW.
   (8)  "RESEARCH  AND DEVELOPMENT EXPENDITURES" MEANS QUALIFIED RESEARCH
 EXPENSES AS DEFINED IN SUBSECTION (B) OF  SECTION  41  OF  THE  INTERNAL
 REVENUE  CODE,  PROVIDED, HOWEVER, THAT SUCH QUALIFIED RESEARCH EXPENSES
 SHALL NOT INCLUDE AMOUNTS UNDER  SUBPARAGRAPH  (B)  OF  PARAGRAPH  1  OF
 SUBSECTION (B) OF SECTION 41 OF THE INTERNAL REVENUE CODE AND AS FURTHER
 DESCRIBED IN PARAGRAPH 3 OF SUBSECTION (B) OF SECTION 41 OF THE INTERNAL
 REVENUE  CODE.  IF  SECTION 41 OF THE INTERNAL REVENUE CODE HAS EXPIRED,
 THEN THE RESEARCH AND DEVELOPMENT EXPENSES SHALL BE CALCULATED AS IF THE
 FEDERAL RESEARCH AND DEVELOPMENT  CREDIT  STRUCTURE  AND  DEFINITION  IN
 EFFECT IN SECTION 41 IN FEDERAL TAX YEAR TWO THOUSAND NINE WERE STILL IN
 EFFECT.
   (9) "RELATED PERSON" MEANS A RELATED PERSON AS DEFINED IN SUBPARAGRAPH
 (C)  OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION 465 OF THE INTERNAL
 REVENUE CODE. FOR THIS PURPOSE, A  "RELATED  PERSON"  SHALL  INCLUDE  AN
 ENTITY  THAT  WOULD  HAVE  QUALIFIED AS A "RELATED PERSON" IF IT HAD NOT
 BEEN DISSOLVED, LIQUIDATED, MERGED  WITH  ANOTHER  ENTITY  OR  OTHERWISE
 CEASED TO EXIST OR OPERATE.
   (D)(1)  FOR  PURPOSES OF THIS SECTION, IN ORDER TO BE ELIGIBLE FOR THE
 LIFE SCIENCES RESEARCH AND DEVELOPMENT TAX CREDIT ALLOWED UNDER SUBDIVI-
 SION (A) OF THIS SECTION, A LIFE  SCIENCES  COMPANY  MUST  BE  ISSUED  A
 CERTIFICATE  OF  TAX  CREDIT  BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT.
 THE DEPARTMENT OF ECONOMIC  DEVELOPMENT  SHALL  VERIFY  THAT  SUCH  LIFE
 SCIENCES  COMPANY  HAS  MET  ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS
 SECTION BEFORE ISSUING A CERTIFICATE OF TAX CREDIT,  INCLUDING  BUT  NOT
 LIMITED TO VERIFYING THAT THE LIFE SCIENCES COMPANY IS A NEW BUSINESS.
   (2)  FOR  PURPOSES  OF  THIS  SECTION, IN ORDER TO BE ELIGIBLE FOR THE
 ANGEL INVESTOR TAX CREDIT ALLOWED UNDER SUBDIVISION (B) OF THIS SECTION,
 AN ANGEL INVESTOR MUST BE ISSUED A CERTIFICATE OF  ANGEL  INVESTMENT  BY
 THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT FOR EACH ANGEL INVESTMENT FOR
 WHICH THE CREDIT IS CLAIMED.   THE DEPARTMENT  OF  ECONOMIC  DEVELOPMENT
 SHALL VERIFY THAT SUCH ANGEL INVESTOR HAS MET ALL APPLICABLE ELIGIBILITY
 CRITERIA  IN  THIS SECTION BEFORE ISSUING A CERTIFICATE OF ANGEL INVEST-
 MENT, INCLUDING BUT NOT LIMITED TO CERTIFYING  THAT  THE  LIFE  SCIENCES
 COMPANY IN WHICH THE ANGEL INVESTOR HAS MADE SUCH INVESTMENT IS A QUALI-
 FIED LIFE SCIENCES COMPANY.
   (3)  THE  COMMISSIONER  OF ECONOMIC DEVELOPMENT, AFTER CONSULTING WITH
 THE COMMISSIONER, SHALL PROMULGATE REGULATIONS BY OCTOBER  THIRTY-FIRST,
 TWO THOUSAND SEVENTEEN TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF TAX
 CREDITS  ALLOWED  UNDER  THIS  SECTION. SUCH RULES AND REGULATIONS SHALL
 INCLUDE PROVISIONS DESCRIBING THE APPLICATION PROCESS FOR  EACH  CREDIT,
 THE DUE DATES FOR SUCH APPLICATIONS, THE ELIGIBILITY STANDARDS FOR QUAL-
 IFIED  LIFE  SCIENCES  COMPANIES,  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-

 S. 2009--A                         36                         A. 3009--A
 
 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 SEVENTEEN DEADLINE.
   (E)  CROSS-REFERENCES.  FOR APPLICATION OF THE CREDITS PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 52.
   (2) ARTICLE 22: SECTION 606: SUBSECTION (HHH).
   (F) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, (I)  EMPLOYEES  AND
 OFFICERS  OF  THE  DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT
 SHALL BE ALLOWED AND ARE DIRECTED  TO  SHARE  AND  EXCHANGE  INFORMATION
 REGARDING  THE CREDITS APPLIED FOR, ALLOWED, OR CLAIMED PURSUANT TO THIS
 SECTION AND TAXPAYERS WHO ARE APPLYING FOR CREDITS OR WHO  ARE  CLAIMING
 CREDITS, INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM
 FORMS  SUBMITTED  TO  THE  DEPARTMENT AND APPLICATIONS FOR CERTIFICATION
 SUBMITTED TO THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT,  AND  (II)  THE
 COMMISSIONER AND THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOP-
 MENT  MAY RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THESE
 CREDITS AND THE AMOUNT OF THE CREDIT EARNED BY THE  TAXPAYER.  PROVIDED,
 HOWEVER,  IF  A  TAXPAYER CLAIMS EITHER OF THESE CREDITS 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.
   (G) FOR PURPOSES OF THE CREDITS ALLOWED UNDER THIS SECTION, THE NUMBER
 OF PERSONS EMPLOYED BY A QUALIFIED  LIFE  SCIENCES  COMPANY  DURING  THE
 TAXABLE  YEAR  SHALL  BE  DETERMINED  BY ASCERTAINING THE NUMBER OF SUCH
 INDIVIDUALS EMPLOYED FULL-TIME BY SUCH COMPANY, EXCLUDING GENERAL EXECU-
 TIVE OFFICERS, ON THE THIRTY-FIRST DAY OF MARCH, THE  THIRTIETH  DAY  OF
 JUNE,  THE THIRTIETH DAY OF SEPTEMBER AND THE THIRTY-FIRST DAY OF DECEM-
 BER DURING EACH TAXABLE YEAR, BY ADDING  TOGETHER  THE  NUMBER  OF  SUCH
 INDIVIDUALS  ASCERTAINED  ON  EACH OF SUCH DATES AND DIVIDING THE SUM SO
 OBTAINED BY THE NUMBER OF SUCH DATES OCCURRING WITHIN SUCH TAXABLE YEAR.
 AN INDIVIDUAL EMPLOYED FULL-TIME MEANS AN EMPLOYEE IN A  JOB  CONSISTING
 OF AT LEAST THIRTY-FIVE HOURS PER WEEK, OR TWO OR MORE EMPLOYEES WHO ARE
 IN  JOBS  THAT  TOGETHER  CONSTITUTE THE EQUIVALENT OF A JOB OF AT LEAST
 THIRTY-FIVE HOURS PER WEEK (FULL-TIME EQUIVALENT).
   § 8. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 52 to read as follows:
   52. LIFE SCIENCES TAX CREDITS. (A) LIFE SCIENCES RESEARCH AND DEVELOP-
 MENT  TAX  CREDIT.  (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS ELIGIBLE
 PURSUANT TO SUBDIVISION (A) OF SECTION FORTY-THREE OF THIS CHAPTER SHALL
 BE ALLOWED A CREDIT TO BE  COMPUTED  AS  PROVIDED  IN  SUCH  SUBDIVISION
 AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS PARAGRAPH 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 PARAGRAPH 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 TREATED AS AN OVER-
 PAYMENT 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 THOUSAND EIGHT-
 Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
 EON.

 S. 2009--A                         37                         A. 3009--A
 
   (B)  ANGEL  INVESTOR  TAX  CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
 THAT IS ELIGIBLE PURSUANT TO SUBDIVISION (B) OF SECTION  FORTY-THREE  OF
 THIS  CHAPTER  SHALL  BE  ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
 SUCH SUBDIVISION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS PARAGRAPH 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 PARAGRAPH 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 TREATED AS AN OVER-
 PAYMENT 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 THOUSAND EIGHT-
 Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
 EON.
   §  9. Section 606 of the tax law is amended by adding a new subsection
 (hhh) to read as follows:
   (HHH) LIFE SCIENCES TAX CREDITS.    (1)  LIFE  SCIENCES  RESEARCH  AND
 DEVELOPMENT  TAX  CREDIT.  (A)  ALLOWANCE  OF  CREDIT. A TAXPAYER WHO IS
 ELIGIBLE PURSUANT TO SUBDIVISION (A)  OF  SECTION  FORTY-THREE  OF  THIS
 CHAPTER  SHALL  BE  ALLOWED  A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH
 SUBDIVISION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (B) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
 THIS PARAGRAPH 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.
   (2) ANGEL INVESTOR TAX CREDIT. (A) A TAXPAYER WHO IS ELIGIBLE PURSUANT
 TO SUBDIVISION (B) OF SECTION  FORTY-THREE  OF  THIS  CHAPTER  SHALL  BE
 ALLOWED  A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SUBDIVISION AGAINST
 THE TAX IMPOSED BY THIS ARTICLE.
   (B) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
 THIS PARAGRAPH 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.
   § 10. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding two new clauses (xliii)  and  (xliv)
 to read as follows:
 (XLIII) LIFE SCIENCES RESEARCH AND      AMOUNT OF CREDIT UNDER PARAGRAPH
 DEVELOPMENT TAX CREDIT UNDER            (A) OF SUBDIVISION FIFTY-TWO OF
 PARAGRAPH ONE OF SUBSECTION (HHH)       SECTION TWO HUNDRED TEN-B
 
 (XLIV) ANGEL INVESTOR TAX               AMOUNT OF CREDIT UNDER PARAGRAPH
 CREDIT UNDER PARAGRAPH TWO OF           (B) OF SUBDIVISION FIFTY-TWO OF
 SUBSECTION (HHH)                        SECTION TWO HUNDRED TEN-B
   § 11. This act shall take effect immediately, and shall apply to taxa-
 ble years beginning on or after January 1, 2018.
 
                                  PART L
 
   Section  1.  Section  441 of the economic development law, as added by
 section 1 of part O of chapter 59 of the laws of  2015,  is  amended  to
 read as follows:

 S. 2009--A                         38                         A. 3009--A
 
   § 441. Definitions. As used in this article, the following terms shall
 have the following meanings:
   1.  "Approved provider" means an entity meeting such criteria as shall
 be established by the commissioner in rules and regulations  promulgated
 pursuant  to this article, that may provide eligible training to employ-
 ees of a business entity participating in the employee  training  incen-
 tive program; provided that, for internship programs, the business enti-
 ty  shall  be  an  approved provider or an approved provider in contract
 with such business entity. Such criteria shall ensure that any  approved
 provider  possess adequate credentials to provide the training described
 in an application by a business entity to the  commissioner  to  partic-
 ipate in the employee training incentive program.
   2. "Commissioner" means the commissioner of economic development.
   3.  "Eligible  training"  means  (a)  training provided by an approved
 provider that is:
   (i) to upgrade, retrain or improve the productivity of employees;
   (ii) provided to employees [filling  net  new  jobs,  or  to  existing
 employees]  in  connection  with  a  significant capital investment by a
 participating business entity;
   (iii) determined by the commissioner to satisfy a business need on the
 part of a participating business entity;
   (iv) not designed to train or upgrade skills as required by a  federal
 or state entity;
   (v) not training the completion of which may result in the awarding of
 a license or certificate required by law in order to perform a job func-
 tion; and
   (vi) not culturally focused training; or
   (b)  an  internship  program  in  advanced technology OR LIFE SCIENCES
 approved by the commissioner and provided by an approved provider, on or
 after August first, two thousand  fifteen,  to  provide  employment  and
 experience  opportunities  for  current  students, recent graduates, and
 recent members of the armed forces.
   4.["Net new job" means a job created in this state that:
   (a) is new to the state;
   (b) has not been transferred from  employment  with  another  business
 located  in  this state through an acquisition, merger, consolidation or
 other reorganization of businesses  or  the  acquisition  of  assets  of
 another  business,  and  has not been transferred from employment with a
 related person in this state;
   (c) is either a full-time wage-paying job or equivalent to a full-time
 wage-paying job requiring at least thirty-five hours per week;
   (d) is filled for more than six months;
   (e) is filled by a person who has received eligible training; and
   (f) is comprised of tasks the performance of which required the person
 filling the job to undergo eligible training.] "LIFE SCIENCES" MEANS THE
 FIELD OF BIOTECHNOLOGY, PHARMACEUTICALS, BIOMEDICAL  TECHNOLOGIES,  LIFE
 SYSTEMS  TECHNOLOGIES, HEALTH INFORMATICS, HEALTH ROBOTICS OR BIOMEDICAL
 DEVICES. "LIFE SCIENCES COMPANY" IS A BUSINESS ENTITY OR AN ORGANIZATION
 OR INSTITUTION THAT DEVOTES THE MAJORITY OF ITS EFFORTS IN  THE  VARIOUS
 STAGES  OF RESEARCH, DEVELOPMENT, TECHNOLOGY TRANSFER AND COMMERCIALIZA-
 TION RELATED TO ANY LIFE SCIENCES FIELD.
   5. "Significant capital investment" means a capital investment [of  at
 least  one  million dollars] in new business processes or equipment, THE
 COST OF WHICH IS EQUAL TO OR EXCEEDS TEN DOLLARS FOR EVERY ONE DOLLAR OF
 TAX CREDIT ALLOWED TO AN ELIGIBLE BUSINESS  ENTITY  UNDER  THIS  PROGRAM

 S. 2009--A                         39                         A. 3009--A
 
 PURSUANT TO SUBDIVISION FIFTY OF SECTION TWO HUNDRED TEN-B OR SUBSECTION
 (DDD) OF SECTION SIX HUNDRED SIX OF THE TAX LAW.
   6.  "Strategic  industry"  means  an industry in this state, as estab-
 lished by the commissioner in regulations promulgated pursuant  to  this
 article, based upon the following criteria:
   (a) shortages of workers trained to work within the industry;
   (b)  technological  disruption  in the industry, requiring significant
 capital investment for existing businesses to remain competitive;
   (c) the ability of businesses in the industry to relocate  outside  of
 the state in order to attract talent;
   (d)  the  potential  to  recruit minorities and women to be trained to
 work in the industry in which they are traditionally underrepresented;
   (e) the potential to create jobs  in  economically  distressed  areas,
 which  shall  be  based  on  criteria  indicative  of economic distress,
 including poverty rates, numbers of persons receiving public assistance,
 and unemployment rates; or
   (f) such other criteria as shall be developed by the  commissioner  in
 consultation with the commissioner of labor.
   § 2.  Section 442 of the economic development law, as added by section
 1  of  part  O  of chapter 59 of the laws of 2015, is amended to read as
 follows:
   § 442. Eligibility criteria. In order to participate in  the  employee
 training incentive program, a business entity must satisfy the following
 criteria:
   1.  (a) The business entity must operate in the state predominantly in
 a strategic industry;
   (b) The business entity must demonstrate that it is obtaining eligible
 training from an approved provider;
   (c) The business entity must [create at least ten  net  new  jobs  or]
 make  a  significant  capital investment in connection with the eligible
 training; and
   (d) The  business  entity  must  be  in  compliance  with  all  worker
 protection  and  environmental  laws  and  regulations. In addition, the
 business entity may not owe past  due  state  taxes  or  local  property
 taxes; or
   2.  (a)  The business entity, or an approved provider in contract with
 such business entity, must be approved by the  commissioner  to  provide
 eligible training in the form of an internship program in advanced tech-
 nology OR AT A LIFE SCIENCES COMPANY pursuant to paragraph (b) of subdi-
 vision three of section four hundred forty-one of this article;
   (b) The business entity must be located in the state;
   (c)  The  business  entity  must  be  in  compliance  with  all worker
 protection and environmental laws  and  regulations.  In  addition,  the
 business  entity  must  not  have past due state taxes or local property
 taxes;
   (d) The internship program shall not displace regular employees;
   (e) The business entity must have less than one hundred employees; and
   (f) Participation of an individual in an internship program shall  not
 last more than a total of twelve months.
   § 3. This act shall take effect immediately.
 
                                  PART M
 
   Section  1.  Paragraph  5  of subdivision (a) of section 24 of the tax
 law, as amended by chapter 420 of the laws of 2016, is amended  to  read
 as follows:

 S. 2009--A                         40                         A. 3009--A
 
   (5)  For  the  period two thousand fifteen through two thousand [nine-
 teen] TWENTY-TWO, in addition to the amount  of  credit  established  in
 paragraph  two of this subdivision, a taxpayer shall be allowed a credit
 equal to the product (or pro rata share of the product, in the case of a
 member of a partnership) of ten percent and the amount of wages or sala-
 ries  paid to individuals directly employed (excluding those employed as
 writers, directors, music directors, producers and performers, including
 background actors with no scripted lines) by a qualified film production
 company or a qualified independent film production company for  services
 performed  by those individuals in one of the counties specified in this
 paragraph in connection with a qualified film with a minimum  budget  of
 five  hundred  thousand dollars. For purposes of this additional credit,
 the services must be performed in one or more of the following counties:
 Albany, Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung,
 Chenango,  Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex,
 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
 Livingston, Madison,  Monroe,  Montgomery,  Niagara,  Oneida,  Onondaga,
 Ontario,  Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga,
 Schenectady,  Schoharie,  Schuyler,  Seneca,  St.   Lawrence,   Steuben,
 [Suffolk,] Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne,
 Wyoming,  or Yates. The aggregate amount of tax credits allowed pursuant
 to the authority of this paragraph shall be five  million  dollars  each
 year  during the period two thousand fifteen through two thousand [nine-
 teen] TWENTY-TWO of the annual allocation made available to the  program
 pursuant  to  paragraph  four  of  subdivision (e) of this section. Such
 aggregate amount of credits shall be allocated by the governor's  office
 for  motion  picture and television development among taxpayers in order
 of priority based upon the date of filing an application for  allocation
 of film production credit with such office. If the total amount of allo-
 cated  credits  applied for under this paragraph in any year exceeds the
 aggregate amount of tax credits allowed for such year under  this  para-
 graph,  such  excess  shall be treated as having been applied for on the
 first day of the next year. If the total amount of allocated tax credits
 applied for under this paragraph at the conclusion of any year  is  less
 than five million dollars, the remainder shall be treated as part of the
 annual  allocation  made  available to the program pursuant to paragraph
 four of subdivision (e) of this section. However, in no  event  may  the
 total  of  the  credits  allocated  under this paragraph and the credits
 allocated under paragraph [five] SIX of subdivision (a) of section thir-
 ty-one of this article exceed five million dollars in  any  year  during
 the  period two thousand fifteen through two thousand [nineteen] TWENTY-
 TWO.
   § 2. Paragraph 4 of subdivision (e) of section 24 of the tax  law,  as
 amended  by  section 1-a of part P of chapter 60 of the laws of 2016, is
 amended to read as follows:
   (4) Additional pool 2 - The aggregate amount of tax credits allowed in
 subdivision (a) of this section shall be increased by an additional four
 hundred twenty million dollars in each year starting in two thousand ten
 through two  thousand  [nineteen]  TWENTY-TWO  provided  however,  seven
 million  dollars  of  the  annual  allocation shall be available for the
 empire state film post production credit pursuant to section  thirty-one
 of  this  article in two thousand thirteen and two thousand fourteen and
 twenty-five million dollars of the annual allocation shall be  available
 for  the  empire  state  film post production credit pursuant to section
 thirty-one of this article in each year starting in two thousand fifteen
 through two thousand [nineteen] TWENTY-TWO. This amount shall  be  allo-

 S. 2009--A                         41                         A. 3009--A
 
 cated  by the governor's office for motion picture and television devel-
 opment among taxpayers  in  accordance  with  subdivision  (a)  of  this
 section. If the commissioner of economic development determines that the
 aggregate amount of tax credits available from additional pool 2 for the
 empire  state film production tax credit have been previously allocated,
 and determines that the pending applications  from  eligible  applicants
 for the empire state film post production tax credit pursuant to section
 thirty-one  of  this  article  is insufficient to utilize the balance of
 unallocated empire state film post  production  tax  credits  from  such
 pool,  the  remainder,  after  such pending applications are considered,
 shall be made available for allocation in  the  empire  state  film  tax
 credit  pursuant  to  this  section,  subdivision  twenty of section two
 hundred ten-B and subsection (gg) of section six  hundred  six  of  this
 chapter.  Also,  if  the commissioner of economic development determines
 that the aggregate amount of tax credits available from additional  pool
 2  for the empire state film post production tax credit have been previ-
 ously allocated, and  determines  that  the  pending  applications  from
 eligible  applicants  for  the  empire  state film production tax credit
 pursuant to this section is insufficient to utilize the balance of unal-
 located film production tax credits from such pool, then all or part  of
 the  remainder, after such pending applications are considered, shall be
 made available for allocation for the empire state film post  production
 credit  pursuant  to this section, subdivision thirty-two of section two
 hundred ten-B and subsection (qq) of section six  hundred  six  of  this
 chapter.  The governor's office for motion picture and television devel-
 opment must notify taxpayers of their allocation year  and  include  the
 allocation  year on the certificate of tax credit. Taxpayers eligible to
 claim a credit must report the allocation year directly on their  empire
 state  film production credit tax form for each year a credit is claimed
 and include a copy of the certificate with their tax return. In the case
 of a qualified film that receives  funds  from  additional  pool  2,  no
 empire state film production credit shall be claimed before the later of
 the  taxable  year  the production of the qualified film is complete, or
 the taxable year immediately following the allocation year for which the
 film has been allocated credit  by  the  governor's  office  for  motion
 picture and television development.
   §  3.  Paragraph 6 of subdivision (a) of section 31 of the tax law, as
 amended by section 2 of part JJ of chapter 59 of the laws  of  2014,  is
 amended to read as follows:
   (6)  For  the  period two thousand fifteen through two thousand [nine-
 teen] TWENTY-TWO, in addition to the amount  of  credit  established  in
 paragraph  two  of  subdivision (a) of this section, a taxpayer shall be
 allowed a credit equal to the product (or pro rata share of the product,
 in the case of a member of a partnership) of ten percent and the  amount
 of  wages  or  salaries paid to individuals directly employed (excluding
 those employed as writers, directors,  music  directors,  producers  and
 performers,  including  background  actors  with  no scripted lines) for
 services performed by those individuals in one of the counties specified
 in this paragraph in connection with the post production work on a qual-
 ified film with a minimum budget of five hundred thousand dollars  at  a
 qualified post production facility in one of the counties listed in this
 paragraph.  For purposes of this additional credit, the services must be
 performed in one or more of the following  counties:  Albany,  Allegany,
 Broome,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung, Chenango, Clinton,
 Cortland, Delaware, Erie, Essex, Franklin,  Fulton,  Genesee,  Hamilton,
 Herkimer,  Jefferson,  Lewis,  Livingston,  Madison, Monroe, Montgomery,

 S. 2009--A                         42                         A. 3009--A
 
 Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego,  Schenecta-
 dy, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins,
 Wayne,  Wyoming,  or  Yates. The aggregate amount of tax credits allowed
 pursuant  to  the  authority  of  this  paragraph  shall be five million
 dollars each year during the period two  thousand  fifteen  through  two
 thousand  [nineteen]  TWENTY-TWO of the annual allocation made available
 to the empire state film post production credit  pursuant  to  paragraph
 four  of  subdivision  (e)  of section twenty-four of this article. Such
 aggregate amount of credits shall be allocated by the governor's  office
 for  motion  picture and television development among taxpayers in order
 of priority based upon the date of filing an application for  allocation
 of post production credit with such office. If the total amount of allo-
 cated  credits  applied for under this paragraph in any year exceeds the
 aggregate amount of tax credits allowed for such year under  this  para-
 graph,  such  excess  shall be treated as having been applied for on the
 first day of the next year. If the total amount of allocated tax credits
 applied for under this paragraph at the conclusion of any year  is  less
 than five million dollars, the remainder shall be treated as part of the
 annual  allocation  for  two  thousand  seventeen  made available to the
 empire state film post production credit pursuant to paragraph  four  of
 subdivision  (e)  of section twenty-four of this article. However, in no
 event may the total of the credits allocated under  this  paragraph  and
 the credits allocated under paragraph five of subdivision (a) of section
 twenty-four  of  this  article  exceed  five million dollars in any year
 during the period two thousand fifteen through two  thousand  [nineteen]
 TWENTY-TWO.
   § 4. This act shall take effect immediately.
 
                                  PART N
 
   Section  1.  The  section  heading and subdivision (a), paragraph 3 of
 subdivision (b), and subdivisions (d) and (e) of  section  25-a  of  the
 labor  law,  the section heading and subdivisions (d) and (e) as amended
 by section 1 of part AA of chapter 56 of the laws of  2015,  subdivision
 (a)  as  amended  by  section  1 of part VV of chapter 60 of the laws of
 2016, and paragraph 3 of subdivision (b) as added by section 2  of  part
 VV of chapter 60 of the laws of 2016, are amended to read as follows:
   Power  to administer the [urban] NEW YORK youth jobs program tax cred-
 it.
   (a) The commissioner is authorized to  establish  and  administer  the
 program  established  under  this  section  to provide tax incentives to
 employers for employing at risk youth in part-time and  full-time  posi-
 tions.  There  will  be  [five]  TEN  distinct  pools of tax incentives.
 Program one will cover tax incentives allocated for two thousand  twelve
 and  two  thousand thirteen. Program two will cover tax incentives allo-
 cated in two thousand fourteen. Program three will cover tax  incentives
 allocated  in  two  thousand fifteen. Program four will cover tax incen-
 tives allocated in two thousand sixteen. Program  five  will  cover  tax
 incentives  allocated in two thousand seventeen.  PROGRAM SIX WILL COVER
 TAX INCENTIVES ALLOCATED IN TWO THOUSAND EIGHTEEN.   PROGRAM SEVEN  WILL
 COVER  TAX INCENTIVES ALLOCATED IN TWO THOUSAND NINETEEN.  PROGRAM EIGHT
 WILL COVER TAX INCENTIVES ALLOCATED IN TWO  THOUSAND  TWENTY.    PROGRAM
 NINE  WILL  COVER  TAX  INCENTIVES ALLOCATED IN TWO THOUSAND TWENTY-ONE.
 PROGRAM TEN WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND  TWENTY-
 TWO.  The  commissioner  is  authorized  to  allocate  up to twenty-five
 million dollars of tax credits under program one, ten million dollars of

 S. 2009--A                         43                         A. 3009--A
 
 tax credits under program two, twenty million  dollars  of  tax  credits
 under program three, and fifty million dollars of tax credits under each
 [of programs four and five] SUBSEQUENT PROGRAM.
   (3)  For  programs  four [and], five, SIX, SEVEN, EIGHT, NINE AND TEN,
 the tax credit under each program shall be  allocated  as  follows:  (i)
 thirty  million  dollars of tax credit for qualified employees; and (ii)
 twenty million dollars of tax credit for individuals who meet all of the
 requirements for a qualified employee except for the residency  require-
 ment  of  subparagraph  (ii) of paragraph two of this subdivision, which
 individuals shall be  deemed  to  meet  the  residency  requirements  of
 subparagraph (ii) of paragraph two of this subdivision if they reside in
 New York state.
   (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,
 [and] after January first, two thousand  seventeen  but  no  later  than
 November thirtieth, two thousand seventeen for program five, AFTER JANU-
 ARY  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  NOVEMBER  THIRTIETH,  TWO THOUSAND TWENTY FOR PROGRAM EIGHT, AFTER
 JANUARY FIRST, TWO THOUSAND TWENTY-ONE BUT NO LATER THAN NOVEMBER  THIR-
 TIETH,  TWO  THOUSAND  TWENTY-ONE  FOR  PROGRAM  NINE, AND AFTER JANUARY
 FIRST, TWO THOUSAND TWENTY-TWO BUT NO LATER THAN NOVEMBER THIRTIETH, TWO
 THOUSAND TWENTY-TWO FOR PROGRAM TEN.  The qualified employees must start
 their employment 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 thousand fifteen for program three, on or after Janu-
 ary first, two thousand sixteen but no later than December thirty-first,
 two thousand sixteen for program four, [and] 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  NINE-
 TEEN  BUT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN FOR
 PROGRAM SEVEN, ON OR AFTER JANUARY 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 THOUSAND TWENTY-ONE FOR PROGRAM NINE, AND  ON
 OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-TWO BUT NO LATER THAN DECEM-
 BER  THIRTY-FIRST, TWO THOUSAND TWENTY-TWO FOR PROGRAM TEN.  The commis-
 sioner shall establish guidelines and criteria that specify requirements
 for employers to participate  in  the  program  including  criteria  for
 certifying  qualified  employees.  Any regulations that the commissioner
 determines are necessary may be adopted on an emergency  basis  notwith-
 standing  anything  to  the  contrary  in section two hundred two of the

 S. 2009--A                         44                         A. 3009--A
 
 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 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.
   (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 certificate of eligibility that establishes the employer
 as a qualified employer. The certificate of  eligibility  shall  specify
 the  maximum  amount  of tax credit that the employer will be allowed to
 claim AND THE PROGRAM YEAR UNDER WHICH IT CAN BE CLAIMED.
   § 2. The subdivision heading 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:
   [Urban] NEW YORK youth jobs program tax credit.
   § 3. The subsection heading 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:
   [Urban] NEW YORK youth jobs program tax credit.
   §  4. Clause (xxxiii) of subparagraph (B) of paragraph 1 of subsection
 (i) of section 606 of the tax law, as amended by section 4 of part AA of
 chapter 56 of the laws of 2015, is amended to read as follows:
 (xxxiii) [Urban] NEW YORK youth      Amount of credit under
 jobs program tax credit              subdivision thirty-six
                                      of section two hundred ten-B
   § 5. This act shall take effect immediately.
 
                                  PART O
 
   Section 1. Subdivision 6 of section 187-b of the tax law,  as  amended
 by  section 1 of part G of chapter 59 of the laws of 2013, is amended to
 read as follows:
   6. Termination. The credit allowed by subdivision two of this  section
 shall  not apply in taxable years beginning after December thirty-first,
 two thousand [seventeen] TWENTY-TWO.
   § 2. Paragraph (f) of subdivision 30 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:
   (f) Termination. The credit allowed by paragraph (b) of this  subdivi-
 sion  shall  not apply in taxable years beginning after December thirty-
 first, two thousand [seventeen] TWENTY-TWO.
   § 3. Paragraph 6 of subsection (p) of section 606 of the tax  law,  as
 amended  by  section  3  of part G of chapter 59 of the laws of 2013, is
 amended to read as follows:
   (6) Termination. The credit allowed by this subsection shall not apply
 in taxable years beginning after  December  thirty-first,  two  thousand
 [seventeen] TWENTY-TWO.
   § 4. This act shall take effect immediately.
 
                                  PART P

 S. 2009--A                         45                         A. 3009--A
 
   Section  1.  Subparagraph  (i)  of  paragraph  (b) of subdivision 1 of
 section 210-B of the tax law, as amended by section  31  of  part  T  of
 chapter 59 of the laws of 2015, is amended to read as follows:
   (i)  A  credit shall be allowed under this subdivision with respect to
 tangible personal property and other tangible property, including build-
 ings and structural components  of  buildings,  which  are:  depreciable
 pursuant  to  section  one  hundred  sixty-seven of the internal revenue
 code, have a useful life of four years or more, are acquired by purchase
 as defined in section one  hundred  seventy-nine  (d)  of  the  internal
 revenue code, have a situs in this state and are (A) principally used by
 the  taxpayer  in  the production of goods by manufacturing, processing,
 assembling, refining, mining, extracting, farming,  agriculture,  horti-
 culture, floriculture, viticulture or commercial fishing, (B) industrial
 waste  treatment facilities or air pollution control facilities, used in
 the taxpayer's trade or business, (C) research and development property,
 or (D) principally used in the ordinary course of the  taxpayer's  trade
 or  business  as  a  broker or dealer in connection with the purchase or
 sale (which shall include but not be limited to the  issuance,  entering
 into,  assumption,  offset,  assignment,  termination,  or  transfer) of
 stocks, bonds or other securities as defined  in  section  four  hundred
 seventy-five  (c)(2)  of the Internal Revenue Code, or of commodities as
 defined in section four hundred seventy-five (e) of the Internal Revenue
 Code, (E) principally used in the  ordinary  course  of  the  taxpayer's
 trade  or business of providing investment advisory services for a regu-
 lated investment company as defined in section eight  hundred  fifty-one
 of the Internal Revenue Code, or lending, loan arrangement or loan orig-
 ination  services  to  customers in connection with the purchase or sale
 (which shall include but not be limited to the issuance, entering  into,
 assumption,  offset, assignment, termination, or transfer) of securities
 as defined in section four hundred seventy-five (c)(2) of  the  Internal
 Revenue Code, (F) principally used in the ordinary course of the taxpay-
 er's  business  as  an  exchange  registered  as  a  national securities
 exchange within the meaning of sections 3(a)(1) and 6(a) of the  Securi-
 ties Exchange Act of 1934 or a board of trade as defined in subparagraph
 one of paragraph (a) of section fourteen hundred ten of the not-for-pro-
 fit  corporation law or as an entity that is wholly owned by one or more
 such national securities exchanges or boards of trade and that  provides
 automation  or  technical services thereto, or (G) principally used as a
 qualified film production facility including qualified  film  production
 facilities  having a situs in an empire zone designated as such pursuant
 to article eighteen-B of the general municipal law, where  the  taxpayer
 is  providing  three  or  more services to any qualified film production
 company using the facility, including such services as a studio lighting
 grid, lighting and grip equipment, multi-line phone  service,  broadband
 information  technology  access,  industrial  scale electrical capacity,
 food services, security  services,  and  heating,  ventilation  and  air
 conditioning.  For purposes of clauses (D), (E) and (F) of this subpara-
 graph, property purchased by a  taxpayer  affiliated  with  a  regulated
 broker,  dealer,  registered  investment  advisor,  national  securities
 exchange or board of trade, is allowed a credit under  this  subdivision
 if  the  property  is  used  by its affiliated regulated broker, dealer,
 registered investment advisor, national securities exchange or board  of
 trade  in  accordance with this subdivision. For purposes of determining
 if the property is principally used in qualifying uses, the uses by  the
 taxpayer  described  in  clauses (D) and (E) of this subparagraph may be
 aggregated. In addition, the uses by the taxpayer, its affiliated  regu-

 S. 2009--A                         46                         A. 3009--A
 
 lated  broker,  dealer and registered investment advisor under either or
 both of those clauses may be aggregated. Provided, however,  a  taxpayer
 shall  not be allowed the credit provided by clauses (D), (E) and (F) of
 this  subparagraph unless the property is first placed in service before
 October first, two thousand fifteen and (i) eighty percent  or  more  of
 the  employees  performing  the  administrative  and  support  functions
 resulting from or related to the qualifying uses of such  equipment  are
 located  in  this  state  or  (ii)  the average number of employees that
 perform the administrative  and  support  functions  resulting  from  or
 related to the qualifying uses of such equipment and are located in this
 state  during  the taxable year for which the credit is claimed is equal
 to or greater than ninety-five percent of the average number of  employ-
 ees  that  perform  these functions and are located in this state during
 the thirty-six months immediately preceding the year for which the cred-
 it is claimed, or (iii) the number of employees located  in  this  state
 during  the  taxable year for which the credit is claimed is equal to or
 greater than ninety percent of the number of employees located  in  this
 state on December thirty-first, nineteen hundred ninety-eight or, if the
 taxpayer  was  not  a calendar year taxpayer in nineteen hundred ninety-
 eight, the last day of its first  taxable  year  ending  after  December
 thirty-first,  nineteen  hundred  ninety-eight.  If the taxpayer becomes
 subject to tax in this state after the taxable year beginning  in  nine-
 teen  hundred ninety-eight, then the taxpayer is not required to satisfy
 the employment test provided in the preceding sentence of this  subpara-
 graph  for  its first taxable year. For purposes of clause (iii) of this
 subparagraph the employment test will be based on the number of  employ-
 ees  located in this state on the last day of the first taxable year the
 taxpayer is subject to tax in this state. If the uses  of  the  property
 must be aggregated to determine whether the property is principally used
 in  qualifying  uses, then either each affiliate using the property must
 satisfy this employment test or this employment test must  be  satisfied
 through the aggregation of the employees of the taxpayer, its affiliated
 regulated  broker,  dealer,  and registered investment adviser using the
 property. For purposes of [this subdivision, the term "goods" shall  not
 include  electricity] CLAUSE (A) OF THIS SUBPARAGRAPH, TANGIBLE PERSONAL
 PROPERTY AND OTHER TANGIBLE PROPERTY SHALL NOT INCLUDE PROPERTY  PRINCI-
 PALLY  USED  BY  THE  TAXPAYER  (I) IN THE PRODUCTION OR DISTRIBUTION OF
 ELECTRICITY, NATURAL GAS, STEAM, OR WATER DELIVERED  THROUGH  PIPES  AND
 MAINS, OR (II) IN THE CREATION, PRODUCTION OR REPRODUCTION, IN ANY MEDI-
 UM, OF A FILM, VISUAL OR AUDIO RECORDING, OR COMMERCIAL, WHERE THE COSTS
 ASSOCIATED  WITH  SUCH CREATION, PRODUCTION OR REPRODUCTION ARE INCURRED
 OUTSIDE OF THIS STATE, OR IN THE DUPLICATION, FOR PURPOSES OF  BROADCAST
 IN  ANY  MEDIUM,  OF  A  MASTER OF A FILM, VISUAL OR AUDIO RECORDING, OR
 COMMERCIAL,  WHERE  THE  COSTS  ASSOCIATED  WITH  SUCH  DUPLICATION  ARE
 INCURRED OUTSIDE OF THIS STATE.
   §  2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606
 of the tax law, as amended by chapter  637  of  the  laws  of  2008,  is
 amended to read as follows:
   (A)  A  credit  shall be allowed under this subsection with respect to
 tangible personal property and other tangible property, including build-
 ings and structural components  of  buildings,  which  are:  depreciable
 pursuant  to  section  one  hundred  sixty-seven of the internal revenue
 code, have a useful life of four years or more, are acquired by purchase
 as defined in section one  hundred  seventy-nine  (d)  of  the  internal
 revenue code, have a situs in this state and are (i) principally used by
 the  taxpayer  in  the production of goods by manufacturing, processing,

 S. 2009--A                         47                         A. 3009--A
 
 assembling, refining, mining, extracting, farming,  agriculture,  horti-
 culture,  floriculture,  viticulture  or commercial fishing, (ii) indus-
 trial waste treatment facilities or air  pollution  control  facilities,
 used in the taxpayer's trade or business, (iii) research and development
 property, (iv) principally used in the ordinary course of the taxpayer's
 trade  or business as a broker or dealer in connection with the purchase
 or sale (which shall include but not be limited to the issuance,  enter-
 ing  into,  assumption, offset, assignment, termination, or transfer) of
 stocks, bonds or other securities as defined  in  section  four  hundred
 seventy-five  (c)(2)  of the Internal Revenue Code, or of commodities as
 defined in section 475(e) of the Internal Revenue Code, (v)  principally
 used  in  the  ordinary  course  of  the taxpayer's trade or business of
 providing investment advisory services for a regulated investment compa-
 ny as defined in section eight hundred fifty-one of the Internal Revenue
 Code, or lending, loan  arrangement  or  loan  origination  services  to
 customers  in  connection with the purchase or sale (which shall include
 but not be limited to the issuance, entering into,  assumption,  offset,
 assignment,  termination,  or  transfer)  of  securities  as  defined in
 section four hundred seventy-five (c)(2) of the Internal  Revenue  Code,
 or (vi) principally used as a qualified film production facility includ-
 ing  qualified  film  production  facilities having a situs in an empire
 zone designated as such pursuant to article eighteen-B  of  the  general
 municipal law, where the taxpayer is providing three or more services to
 any qualified film production company using the facility, including such
 services  as a studio lighting grid, lighting and grip equipment, multi-
 line phone service, broadband information technology access,  industrial
 scale  electrical  capacity, food services, security services, and heat-
 ing, ventilation and air conditioning. For purposes of clauses (iv)  and
 (v)  of  this  subparagraph, property purchased by a taxpayer affiliated
 with a regulated broker, dealer, or  registered  investment  adviser  is
 allowed  a  credit  under this subsection if the property is used by its
 affiliated regulated broker, dealer or registered investment adviser  in
 accordance  with  this  subsection.  For  purposes of determining if the
 property is principally used in qualifying uses, the uses by the taxpay-
 er described in clauses (iv) and (v) of this subparagraph may be  aggre-
 gated.  In  addition, the uses by the taxpayer, its affiliated regulated
 broker, dealer and registered investment adviser under either or both of
 those clauses may be aggregated. Provided, however, a taxpayer shall not
 be allowed the credit provided by clauses (iv) and (v) of this  subpara-
 graph  unless (I) eighty percent or more of the employees performing the
 administrative and support functions resulting from or  related  to  the
 qualifying uses of such equipment are located in this state, or (II) the
 average  number of employees that perform the administrative and support
 functions resulting from or related  to  the  qualifying  uses  of  such
 equipment  and  are  located  in  this state during the taxable year for
 which the credit is claimed is equal  to  or  greater  than  ninety-five
 percent  of the average number of employees that perform these functions
 and are located in this state during the thirty-six  months  immediately
 preceding  the year for which the credit is claimed, or (III) the number
 of employees located in this state during the taxable year for which the
 credit is claimed is equal to or greater  than  ninety  percent  of  the
 number  of  employees  located  in  this state on December thirty-first,
 nineteen hundred ninety-eight or, if the taxpayer  was  not  a  calendar
 year  taxpayer  in  nineteen  hundred  ninety-eight, the last day of its
 first taxable year ending after December thirty-first, nineteen  hundred
 ninety-eight. If the taxpayer becomes subject to tax in this state after

 S. 2009--A                         48                         A. 3009--A

 the  taxable  year  beginning in nineteen hundred ninety-eight, then the
 taxpayer is not required to satisfy the employment test provided in  the
 preceding  sentence of this subparagraph for its first taxable year. For
 the  purposes  of  clause (III) of this subparagraph the employment test
 will be based on the number of employees located in this  state  on  the
 last  day  of  the  first taxable year the taxpayer is subject to tax in
 this state. If the uses of the property must be aggregated to  determine
 whether the property is principally used in qualifying uses, then either
 each  affiliate  using the property must satisfy this employment test or
 this employment test must be satisfied through the  aggregation  of  the
 employees  of the taxpayer, its affiliated regulated broker, dealer, and
 registered investment adviser using the property. For purposes of  [this
 subsection,  the  term "goods" shall not include electricity] CLAUSE (I)
 OF THIS SUBPARAGRAPH, TANGIBLE  PERSONAL  PROPERTY  AND  OTHER  TANGIBLE
 PROPERTY SHALL NOT INCLUDE PROPERTY PRINCIPALLY USED BY THE TAXPAYER (A)
 IN THE PRODUCTION OR DISTRIBUTION OF ELECTRICITY, NATURAL GAS, STEAM, OR
 WATER  DELIVERED  THROUGH  PIPES  AND  MAINS,  OR  (B)  IN THE CREATION,
 PRODUCTION OR REPRODUCTION, IN ANY MEDIUM, OF A FILM,  VISUAL  OR  AUDIO
 RECORDING, OR COMMERCIAL, WHERE THE COSTS ASSOCIATED WITH SUCH CREATION,
 PRODUCTION OR REPRODUCTION ARE INCURRED OUTSIDE OF THIS STATE, OR IN THE
 DUPLICATION,  FOR  PURPOSES OF BROADCAST IN ANY MEDIUM, OF A MASTER OF A
 FILM, VISUAL OR AUDIO RECORDING, OR COMMERCIAL, WHERE THE COSTS  ASSOCI-
 ATED WITH SUCH DUPLICATION ARE INCURRED OUTSIDE OF THIS STATE.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART Q
 
   Section 1. Legislative findings. The legislature finds it necessary to
 revise  a  decision of the tax appeals tribunal that disturbed the long-
 standing policy of the department of taxation and  finance  that  single
 member limited liability companies that are treated as disregarded enti-
 ties  for  federal  income  tax purposes also would be treated as disre-
 garded entities for purposes of determining eligibility of the owners of
 such entities for tax credits allowed  under  article  9,  9-A,  22,  32
 (prior  to  its  repeal)  or  33 of the tax law. The decision of the tax
 appeals tribunal, if allowed to stand, will result in the denial of  tax
 credits,  such  as  empire  zone  tax credits, to taxpayers who in prior
 years received those credits.
   § 2. The tax law is amended by adding a new  section  43  to  read  as
 follows:
   §  43.  SINGLE  MEMBER LIMITED LIABILITY COMPANIES AND ELIGIBILITY FOR
 TAX CREDITS. A LIMITED LIABILITY COMPANY THAT HAS A SINGLE MEMBER AND IS
 DISREGARDED AS AN ENTITY SEPARATE FROM ITS OWNER FOR FEDERAL INCOME  TAX
 PURPOSES  (WITHOUT REFERENCE TO ANY SPECIAL RULES RELATED TO THE IMPOSI-
 TION OF CERTAIN FEDERAL TAXES, INCLUDING  BUT  NOT  LIMITED  TO  CERTAIN
 EMPLOYMENT  AND EXCISE TAXES) SHALL BE DISREGARDED AS AN ENTITY SEPARATE
 FROM ITS OWNER FOR PURPOSES OF DETERMINING WHETHER OR NOT  THE  TAXPAYER
 THAT  IS  THE  SINGLE MEMBER OF SUCH LIMITED LIABILITY COMPANY SATISFIES
 THE REQUIREMENTS TO BE ELIGIBLE FOR ANY TAX CREDIT ALLOWED UNDER ARTICLE
 NINE, NINE-A, TWENTY-TWO OR THIRTY-THREE  OF  THIS  CHAPTER  OR  ALLOWED
 UNDER  ARTICLE  THIRTY-TWO  OF  THIS CHAPTER PRIOR TO THE REPEAL OF SUCH
 ARTICLE. SUCH REQUIREMENTS, INCLUDING BUT NOT LIMITED TO  ANY  NECESSARY
 CERTIFICATION, EMPLOYMENT OR INVESTMENT THRESHOLDS, PAYMENT OBLIGATIONS,
 AND  ANY  TIME  PERIOD FOR ELIGIBILITY, SHALL BE IMPOSED ON THE TAXPAYER
 AND THE DETERMINATION OF WHETHER OR  NOT  SUCH  REQUIREMENTS  HAVE  BEEN

 S. 2009--A                         49                         A. 3009--A
 
 SATISFIED  AND  THE  COMPUTATION  OF THE CREDIT SHALL BE MADE BY DEEMING
 SUCH TAXPAYER AND SUCH LIMITED LIABILITY COMPANY TO BE A SINGLE  ENTITY.
 IF  THE TAXPAYER IS THE SINGLE MEMBER OF MORE THAN ONE LIMITED LIABILITY
 COMPANY  THAT  IS  DISREGARDED AS AN ENTITY SEPARATE FROM ITS OWNER, THE
 DETERMINATION OF WHETHER OR NOT THE REQUIREMENTS TO BE ELIGIBLE FOR  ANY
 TAX  CREDIT  ALLOWED  UNDER  ARTICLE NINE, NINE-A, TWENTY-TWO OR THIRTY-
 THREE OF THIS CHAPTER OR ALLOWED UNDER ARTICLE THIRTY-TWO OF THIS  CHAP-
 TER  PRIOR  TO  THE  REPEAL  OF SUCH ARTICLE HAVE BEEN SATISFIED AND THE
 COMPUTATION OF THE CREDIT SHALL BE MADE BY  DEEMING  SUCH  TAXPAYER  AND
 SUCH LIMITED LIABILITY COMPANIES TO BE A SINGLE ENTITY.
   §  3.  This  act shall take effect immediately; provided however, that
 section 43 of the tax law, as added by section two of  this  act,  shall
 apply  to  all  taxable  years  for which the statute of limitations for
 seeking a refund or assessing additional tax is still open.
 
                                  PART R
 
   Section 1. Subparagraph (B)  of  paragraph  1  of  subsection  (a)  of
 section  601  of  the  tax law is REPEALED and a new subparagraph (B) is
 added to read as follows:
   (B)(I) FOR TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND  EIGHTEEN  THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE
                                       INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                       $27,900
 OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 6.33% OF EXCESS OVER
                                       $43,000
 OVER $161,550 BUT NOT OVER $323,200   $9,597 PLUS 6.57% OF EXCESS OVER
                                       $161,550
 OVER $323,200 BUT NOT OVER $2,155,350 $20,218 PLUS 6.85% OF EXCESS OVER
                                       $323,200
 OVER $2,155,350                       $145,720 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   (II)  FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE FOLLOW-
 ING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE
                                       INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                       $27,900
 OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 6.21% OF EXCESS OVER
                                       $43,000
 OVER $161,550 BUT NOT OVER $323,200   $9,455 PLUS 6.49% OF EXCESS OVER
                                       $161,550
 OVER $323,200 BUT NOT OVER $2,155,350 $19,946 PLUS 6.85% OF EXCESS OVER

 S. 2009--A                         50                         A. 3009--A
 
                                       $323,200
 OVER $2,155,350                       $145,448 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   (III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
 RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                       $27,900
 OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 6.09% OF EXCESS OVER
                                       $43,000
 OVER $161,550 BUT NOT OVER $323,200   $9,313 PLUS 6.41% OF EXCESS OVER
                                       $161,550
 OVER $323,200 BUT NOT OVER $2,155,350 $19,674 PLUS 6.85% OF EXCESS OVER
                                       $323,200
 OVER $2,155,350                       $145,177 PLUS 8.82% OF EXCESS OVER
                                       $2,155,350
   (IV)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND TWENTY-ONE THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                       $27,900
 OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 5.97% OF EXCESS OVER
                                       $43,000
 OVER $161,550 BUT NOT OVER $323,200   $9,170 PLUS 6.33% OF EXCESS OVER
                                       $161,550
 OVER $323,200                         $19,403 PLUS 6.85% OF EXCESS OVER
                                       $323,200
   (V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
 ING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.85% OF EXCESS OVER
                                       $27,900
 OVER $161,550 BUT NOT OVER $323,200   $9,021 PLUS 6.25% OF EXCESS OVER
                                       $161,550
 OVER $323,200                         $19,124 PLUS 6.85% OF EXCESS OVER
                                       $323,200
   (VI) FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND  TWENTY-THREE  THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER

 S. 2009--A                         51                         A. 3009--A

                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.73% OF EXCESS OVER
                                       $27,900
 OVER $161,550 BUT NOT OVER $323,200   $8,860 PLUS 6.17% OF EXCESS OVER
                                       $161,550
 OVER $323,200                         $18,834 PLUS 6.85% OF EXCESS OVER
                                       $323,200
   (VII)  FOR  TAXABLE  YEARS  BEGINNING  IN TWO THOUSAND TWENTY-FOUR THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.61% OF EXCESS OVER
                                       $27,900
 OVER $161,550 BUT NOT OVER $323,200   $8,700 PLUS 6.09% OF EXCESS OVER
                                       $161,550
 OVER $323,200                         $18,544 PLUS 6.85% OF EXCESS OVER
                                       $323,200
   (VIII) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR  THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                       $17,150
 OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                       $23,600
 OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.5% OF EXCESS OVER
                                       $27,900
 OVER $161,550 BUT NOT OVER $323,200   $8,553 PLUS 6.00% OF EXCESS OVER
                                       $161,550
 OVER $323,200                         $18,252 PLUS 6.85% OF EXCESS OVER
                                       $323,200
   §  2. Subparagraph (B) of paragraph 1 of subsection (b) of section 601
 of the tax law is REPEALED and a new subparagraph (B) is added  to  read
 as follows:
   (B)(I)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND EIGHTEEN THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER $20,900
 OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 6.33% OF EXCESS OVER
                                       $32,200
 OVER $107,650 BUT NOT OVER $269,300   $6,344 PLUS 6.57% OF EXCESS OVER
                                       $107,650
 OVER $269,300 BUT NOT OVER $1,616,450 $16,964 PLUS 6.85% OF EXCESS OVER
                                       $269,300
 OVER $1,616,450                       $109,244 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450

 S. 2009--A                         52                         A. 3009--A
 
   (II) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE  FOLLOW-
 ING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER $20,900
 OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 6.21% OF EXCESS OVER
                                       $32,200
 OVER $107,650 BUT NOT OVER $269,300   $6,253 PLUS 6.49% OF EXCESS OVER
                                       $107,650
 OVER $269,300 BUT NOT OVER $1,616,450 $16,744 PLUS 6.85% OF EXCESS OVER
                                       $269,300
 OVER $1,616,450                       $109,024 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   (III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
 RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER $20,900
 OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 6.09% OF EXCESS OVER
                                       $32,200
 OVER $107,650 BUT NOT OVER $269,300   $6,162 PLUS 6.41% OF EXCESS OVER
                                       $107,650
 OVER $269,300 BUT NOT OVER $1,616,450 $16,524 PLUS 6.85% OF EXCESS OVER
                                       $269,300
 OVER $1,616,450                       $108,804 PLUS 8.82% OF EXCESS OVER
                                       $1,616,450
   (IV)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND TWENTY-ONE THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                       $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER
                                       $20,900
 OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 5.97% OF EXCESS OVER
                                       $32,200
 OVER $107,650 BUT NOT OVER $269,300   $6,072 PLUS 6.33% OF EXCESS OVER
                                       $107,650
 OVER $269,300                         $16,304 PLUS 6.85% OF EXCESS OVER
                                       $269,300
   (V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
 ING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                       $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER

 S. 2009--A                         53                         A. 3009--A
 
                                       $17,650
 OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.85% OF EXCESS OVER
                                       $20,900
 OVER $107,650 BUT NOT OVER $269,300   $5,976 PLUS 6.25% OF EXCESS OVER
                                       $107,650
 OVER $269,300                         $16,079 PLUS 6.85% OF EXCESS OVER
                                       $269,300
   (VI)  FOR  TAXABLE  YEARS  BEGINNING  IN TWO THOUSAND TWENTY-THREE THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                       $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.73% OF EXCESS OVER
                                       $20,900
 OVER $107,650 BUT NOT OVER $269,300   $5,872 PLUS 6.17% OF EXCESS OVER
                                       $107,650
 OVER $269,300                         $15,845 PLUS 6.85% OF EXCESS OVER
                                       $269,300
   (VII) FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND  TWENTY-FOUR  THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                       $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.61% OF EXCESS OVER
                                       $20,900
 OVER $107,650 BUT NOT OVER $269,300   $5,768 PLUS 6.09% OF EXCESS OVER
                                       $107,650
 OVER $269,300                         $15,612 PLUS 6.85% OF EXCESS OVER
                                       $269,300
   (VIII)  FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
 OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                       $12,800
 OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                       $17,650
 OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.5% OF EXCESS OVER
                                       $20,900
 OVER $107,650 BUT NOT OVER $269,300   $5,672 PLUS 6.00% OF EXCESS OVER
                                       $107,650
 OVER $269,300                         $15,371 PLUS 6.85% OF EXCESS OVER
                                       $269,300
   § 3. Subparagraph (B) of paragraph 1 of subsection (c) of section  601
 of  the  tax law is REPEALED and a new subparagraph (B) is added to read
 as follows:
   (B)(I) FOR TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND  EIGHTEEN  THE
 FOLLOWING RATES SHALL APPLY:

 S. 2009--A                         54                         A. 3009--A
 
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                       $13,900
 OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 6.33% OF EXCESS OVER
                                       $21,400
 OVER $80,650 BUT NOT OVER $215,400    $4,793 PLUS 6.57% OF EXCESS OVER
                                       $80,650
 OVER $215,400 BUT NOT OVER $1,077,550 $13,646 PLUS 6.85% OF EXCESS OVER
                                       $215,400
 OVER $1,077,550                       $72,703 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   (II)  FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE FOLLOW-
 ING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                       $13,900
 OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 6.21% OF EXCESS OVER
                                       $21,400
 OVER $80,650 BUT NOT OVER $215,400    $4,721 PLUS 6.49% OF EXCESS OVER
                                       $80,650
 OVER $215,400 BUT NOT OVER $1,077,550 $13,467 PLUS 6.85% OF EXCESS OVER
                                       $215,400
 OVER $1,077,550                       $72,524 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   (III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
 RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                       $13,900
 OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 6.09% OF EXCESS OVER
                                       $21,400
 OVER $80,650 BUT NOT OVER $215,400    $4,650 PLUS 6.41% OF EXCESS OVER
                                       $80,650
 OVER $215,400 BUT NOT OVER $1,077,550 $13,288 PLUS 6.85% OF EXCESS OVER
                                       $215,400
 OVER $1,077,550                       $72,345 PLUS 8.82% OF EXCESS OVER
                                       $1,077,550
   (IV) FOR TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND  TWENTY-ONE  THE
 FOLLOWING RATES SHALL APPLY:

 S. 2009--A                         55                         A. 3009--A
 
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                       $13,900
 OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 5.97% OF EXCESS OVER
                                       $21,400
 OVER $80,650 BUT NOT OVER $215,400    $4,579 PLUS 6.33% OF EXCESS OVER
                                       $80,650
 OVER $215,400                         $13,109 PLUS 6.85% OF EXCESS OVER
                                       $215,400
   (V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
 ING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.85% OF EXCESS OVER
                                       $13,900
 OVER $80,650 BUT NOT OVER $215,400    $4,504 PLUS 6.25% OF EXCESS OVER
                                       $80,650
 OVER $215,400                         $12,926 PLUS 6.85% OF EXCESS OVER
                                       $215,400
   (VI)  FOR  TAXABLE  YEARS  BEGINNING  IN TWO THOUSAND TWENTY-THREE THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.73% OF EXCESS OVER
                                       $13,900
 OVER $80,650 BUT NOT OVER $215,400    $4,424 PLUS 6.17% OF EXCESS OVER
                                       $80,650
 OVER $215,400                         $12,738 PLUS 6.85% OF EXCESS OVER
                                       $215,400
   (VII) FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND  TWENTY-FOUR  THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.61% OF EXCESS OVER
                                       $13,900
 OVER $80,650 BUT NOT OVER $215,400    $4,344 PLUS 6.09% OF EXCESS OVER
                                       $80,650
 OVER $215,400                         $12,550 PLUS 6.85% OF EXCESS OVER
                                       $215,400

 S. 2009--A                         56                         A. 3009--A
 
   (VIII)  FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR THE
 FOLLOWING RATES SHALL APPLY:
 IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
 NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
 OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                       $8,500
 OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                       $11,700
 OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.50% OF EXCESS OVER
                                       $13,900
 OVER $80,650 BUT NOT OVER $215,400    $4,271 PLUS 6.00% OF EXCESS OVER
                                       $80,650
 OVER $215,400                         $12,356 PLUS 6.85% OF EXCESS OVER
                                       $215,400
   §  4.  Subparagraph  (D) of paragraph 1 of subsection (d-1) of section
 601 of the tax law, as amended by section 5 of part FF of chapter 59  of
 the laws of 2013, is amended to read as follows:
   (D)  The tax table benefit is the difference between (i) the amount of
 taxable income set forth in the tax table in paragraph one of subsection
 (a) of this section not subject to the 8.82 percent rate of tax for  the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for  such amount of taxable income set forth in the tax table applicable
 to the taxable year in paragraph one of subsection (a) of  this  section
 less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
 of  this  paragraph.  The  fraction for this subparagraph is computed as
 follows: the numerator is the lesser of fifty thousand  dollars  or  the
 excess  of  New York adjusted gross income for the taxable year over two
 million dollars and the denominator  is  fifty  thousand  dollars.  This
 subparagraph  shall  apply  only  to taxable years beginning on or after
 January first, two thousand twelve and before January first,  two  thou-
 sand [eighteen] TWENTY-ONE.
   §  5.  Subparagraph  (C) of paragraph 2 of subsection (d-1) of section
 601 of the tax law, as amended by section 6 of part FF of chapter 59  of
 the laws of 2013, is amended to read as follows:
   (C)  The tax table benefit is the difference between (i) the amount of
 taxable income set forth in the tax table in paragraph one of subsection
 (b) of this section not subject to the 8.82 percent rate of tax for  the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for  such amount of taxable income set forth in the tax table applicable
 to the taxable year in paragraph one of subsection (b) of  this  section
 less  the  sum of the tax table benefits in subparagraphs (A) and (B) of
 this paragraph. The  fraction  for  this  subparagraph  is  computed  as
 follows:  the  numerator  is the lesser of fifty thousand dollars or the
 excess of New York adjusted gross income for the taxable year  over  one
 million five hundred thousand dollars and the denominator is fifty thou-
 sand dollars. This subparagraph shall apply only to taxable years begin-
 ning  on  or after January first, two thousand twelve and before January
 first, two thousand [eighteen] TWENTY-ONE.
   § 6. Subparagraph (C) of paragraph 3 of subsection  (d-1)  of  section
 601  of the tax law, as amended by section 7 of part FF of chapter 59 of
 the laws of 2013, is amended to read as follows:
   (C) The tax table benefit is the difference between (i) the amount  of
 taxable income set forth in the tax table in paragraph one of subsection
 (c)  of this section not subject to the 8.82 percent rate of tax for the
 taxable year multiplied by such rate and (ii) the dollar denominated tax
 for such amount of taxable income set forth in the tax table  applicable

 S. 2009--A                         57                         A. 3009--A
 
 to  the  taxable year in paragraph one of subsection (c) of this section
 less the sum of the tax table benefits in subparagraphs (A) and  (B)  of
 this  paragraph.  The  fraction  for  this  subparagraph  is computed as
 follows:  the  numerator  is the lesser of fifty thousand dollars or the
 excess of New York adjusted gross income for the taxable year  over  one
 million  dollars  and  the  denominator  is fifty thousand dollars. This
 subparagraph shall apply only to taxable years  beginning  on  or  after
 January  first,  two thousand twelve and before January first, two thou-
 sand [eighteen] TWENTY-ONE.
   § 7. This act shall take effect immediately.
 
                                  PART S
 
   Section 1. Subsection (g) of section 615 of the tax law, as amended by
 section 1 of part H of chapter 59 of the laws of  2015,  is  amended  to
 read as follows:
   (g)(1)  With  respect  to  an individual whose New York adjusted gross
 income is over one million dollars and no more than ten million dollars,
 the New York itemized deduction  shall  be  an  amount  equal  to  fifty
 percent  of  any charitable contribution deduction allowed under section
 one hundred seventy of the internal  revenue  code  [for  taxable  years
 beginning after two thousand nine and before two thousand eighteen. With
 respect  to  an  individual whose New York adjusted gross income is over
 one million dollars, the New York itemized deduction shall be an  amount
 equal  to fifty percent of any charitable contribution deduction allowed
 under section one hundred seventy of the internal revenue code for taxa-
 ble years beginning in two thousand nine or after  two  thousand  seven-
 teen].
   (2) With respect to an individual whose New York adjusted gross income
 is over ten million dollars, the New York itemized deduction shall be an
 amount  equal  to  twenty-five  percent  of  any charitable contribution
 deduction allowed under section one  hundred  seventy  of  the  internal
 revenue  code  [for  taxable years beginning after two thousand nine and
 ending before two thousand eighteen].
   § 2. Subdivision (g) of section 11-1715 of the administrative code  of
 the city of New York, as amended by section 2 of part H of chapter 59 of
 the laws of 2015, is amended to read as follows:
   (g)  (1)  With  respect to an individual whose New York adjusted gross
 income is over one million dollars but no more than ten million dollars,
 the New York itemized deduction  shall  be  an  amount  equal  to  fifty
 percent  of  any charitable contribution deduction allowed under section
 one hundred seventy of the internal  revenue  code  [for  taxable  years
 beginning after two thousand nine and before two thousand eighteen. With
 respect  to  an  individual whose New York adjusted gross income is over
 one million dollars, the New York itemized deduction shall be an  amount
 equal  to fifty percent of any charitable contribution deduction allowed
 under section one hundred seventy of the internal revenue code for taxa-
 ble years beginning in two thousand nine or after  two  thousand  seven-
 teen].
   (2) With respect to an individual whose New York adjusted gross income
 is over ten million dollars, the New York itemized deduction shall be an
 amount  equal  to  twenty-five  percent  of  any charitable contribution
 deduction allowed under section one  hundred  seventy  of  the  internal
 revenue  code  [for  taxable years beginning after two thousand nine and
 ending before two thousand eighteen].
   § 3. This act shall take effect immediately.

 S. 2009--A                         58                         A. 3009--A
 
                                  PART T
 
   Section  1. Subsection (c) of section 606 of the tax law is amended by
 adding a new paragraph (1-a) to read as follows:
   (1-A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN, FOR  A
 TAXPAYER  WITH NEW YORK ADJUSTED GROSS INCOME OF AT LEAST FIFTY THOUSAND
 DOLLARS BUT LESS THAN ONE HUNDRED FIFTY THOUSAND DOLLARS, THE APPLICABLE
 PERCENTAGE SHALL BE THE APPLICABLE PERCENTAGE OTHERWISE  COMPUTED  UNDER
 PARAGRAPH ONE OF THIS SUBSECTION MULTIPLIED BY A FACTOR AS FOLLOWS:
   IF NEW YORK ADJUSTED GROSS
   INCOME IS:                                         THE FACTOR IS:
   AT LEAST $50,000 AND LESS
   THAN $55,000                                       1.1682
   AT LEAST $55,000 AND LESS
   THAN $60,000                                       1.2733
   AT LEAST $60,000 AND LESS
   THAN $65,000                                       2.322
   AT LEAST $65,000 AND LESS
   THAN $150,000                                      3.000
   § 2. This act shall take effect immediately.
 
                                  PART U
 
   Section  1. Paragraph (a) of subdivision 1 and paragraph (a) of subdi-
 vision 2 of section 1701 of the tax law, as added by section 1  of  part
 CC-1 of chapter 57 of the laws of 2008, are amended to read as follows:
   (a) "Debt" means [all] PAST-DUE TAX liabilities, including unpaid tax,
 interest,  and  penalty,  that  the  commissioner  is required by law to
 collect and that have [been reduced to judgment by the  docketing  of  a
 New  York  state  tax warrant in the office of a county clerk located in
 the state of New York or by the filing of a copy of the warrant  in  the
 office  of the department of state] BECOME FIXED AND FINAL SUCH THAT THE
 TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW.
   (a) To assist the commissioner in the collection of debts, the depart-
 ment must develop and operate a financial institution data match  system
 for  the purpose of identifying and seizing the non-exempt assets of tax
 debtors as identified by the commissioner. The commissioner  is  author-
 ized  to  designate  a  third  party to develop and operate this system.
 NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER,  THE  COMMISSIONER
 IS  AUTHORIZED  TO  DISCLOSE THE DEBT AND THE DEBTOR INFORMATION TO SUCH
 THIRD PARTY AND TO FINANCIAL INSTITUTIONS FOR PURPOSES OF  THIS  SYSTEM.
 Any  third party designated by the commissioner to develop and operate a
 financial data match system must keep all information  it  obtains  from
 both  the department and the financial institution confidential, and any
 employee, agent or representative of that third party is prohibited from
 disclosing that information to anyone other than the department  or  the
 financial institution.
   § 2. This act shall take effect immediately.
 
                                  PART V
 
   Section  1.  Subdivision  4  of section 50 of the civil service law is
 amended by adding a new closing paragraph to read as follows:
   THE DEPARTMENT SHALL REQUIRE A TAX CLEARANCE FROM  THE  DEPARTMENT  OF
 TAXATION  AND  FINANCE,  AS PROVIDED FOR IN SECTION ONE HUNDRED SEVENTY-
 ONE-W OF THE TAX LAW, FOR EACH APPLICANT AND SHALL REFUSE TO EXAMINE  AN

 S. 2009--A                         59                         A. 3009--A
 
 APPLICANT,  OR  AFTER  EXAMINATION  TO  CERTIFY AN ELIGIBLE FOR WHOM TAX
 CLEARANCE IS DENIED BY THE DEPARTMENT OF TAXATION AND FINANCE.  A MUNIC-
 IPAL COMMISSION, SUBJECT TO THE APPROVAL OF THE GOVERNING BOARD OR  BODY
 OF  THE  CITY  OR COUNTY AS THE CASE MAY BE, OR A REGIONAL COMMISSION OR
 PERSONNEL OFFICER, PURSUANT TO  GOVERNMENTAL  AGREEMENT,  MAY  ELECT  TO
 REQUIRE TAX CLEARANCES FOR APPLICANTS AND TO REFUSE TO EXAMINE AN APPLI-
 CANT,  OR AFTER EXAMINATION TO CERTIFY AN ELIGIBLE FOR WHOM A TAX CLEAR-
 ANCE IS DENIED BY THE DEPARTMENT  OF  TAXATION  AND  FINANCE.  PROVIDED,
 HOWEVER, THAT THE DEPARTMENT AND MUNICIPAL COMMISSIONS SHALL NOT REQUIRE
 A  TAX  CLEARANCE  FOR  (1) ANY CURRENT EMPLOYEE; OR (2) A PERSON WHO IS
 CONSIDERED AN APPLICANT BY REASON OF (A) A TRANSFER PURSUANT TO  SECTION
 SEVENTY  OF  THIS  CHAPTER;  OR  (B) A PERSON WHO IS ON A PREFERRED LIST
 SUBJECT TO SECTION EIGHTY-ONE OF THIS CHAPTER; OR  (C)  A  PERSON  WHOSE
 NAME  IS  ON  AN  ELIGIBLE  LIST AS DEFINED IN SECTION FIFTY-SIX OF THIS
 ARTICLE AND WHO HAS SUCCESSFULLY COMPLETED A PROMOTION EXAM  SUBJECT  TO
 SECTION  FIFTY-TWO  OF  THIS ARTICLE. WHERE A TAX CLEARANCE IS REQUIRED,
 THE APPLICATION FOR EXAMINATION, OR THE INSTRUCTIONS FOR  SUCH  APPLICA-
 TION,  SHALL  CLEARLY  INFORM THE APPLICANT THAT A TAX CLEARANCE WILL BE
 PERFORMED AND THAT, IF THE TAX CLEARANCE IS DENIED, THE  APPLICANT  MUST
 CONTACT  THE  DEPARTMENT OF TAXATION AND FINANCE TO RESOLVE ANY PAST-DUE
 TAX LIABILITIES OR RETURN FILING COMPLIANCE BEFORE THE  APPLICATION  FOR
 EXAMINATION  MAY  BE RESUBMITTED. ANY APPLICANT SUBJECT TO TAX CLEARANCE
 SHALL BE REQUIRED TO PROVIDE ANY INFORMATION  DEEMED  NECESSARY  BY  THE
 DEPARTMENT AND THE DEPARTMENT OF TAXATION AND FINANCE TO EFFICIENTLY AND
 ACCURATELY  PROVIDE A TAX CLEARANCE, AND THE FAILURE BY THE APPLICANT TO
 PROVIDE SUCH INFORMATION SHALL DISQUALIFY THE APPLICANT.
   § 2. The tax law is amended by adding a new section 171-w to  read  as
 follows:
   §  171-W. ENFORCEMENT OF DELINQUENT TAX LIABILITIES THROUGH TAX CLEAR-
 ANCES. (1) FOR THE PURPOSES OF THIS SECTION, THE TERM "TAX  LIABILITIES"
 SHALL  MEAN ANY TAX, SURCHARGE, OR FEE ADMINISTERED BY THE COMMISSIONER,
 OR ANY PENALTY OR INTEREST ON SUCH TAX, SURCHARGE, OR FEE,  OWED  BY  AN
 INDIVIDUAL  OR  ENTITY.  THE  TERM  "PAST-DUE TAX LIABILITIES" MEANS ANY
 UNPAID TAX LIABILITIES THAT HAVE BECOME FIXED AND FINAL  SUCH  THAT  THE
 TAXPAYER  NO  LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW.
 THE TERM "GOVERNMENT ENTITY" MEANS THE STATE OF NEW YORK, OR ANY OF  ITS
 AGENCIES, POLITICAL SUBDIVISIONS, INSTRUMENTALITIES, PUBLIC CORPORATIONS
 (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT
 WITH ANOTHER STATE OR CANADA), OR COMBINATION THEREOF.
   (2) THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL COOPERATE WITH ANY
 GOVERNMENT  ENTITY THAT IS REQUIRED BY LAW OR HAS ELECTED TO REQUIRE TAX
 CLEARANCES TO ESTABLISH PROCEDURES BY WHICH THE DEPARTMENT SHALL RECEIVE
 A TAX CLEARANCE REQUEST AND TRANSMIT SUCH TAX CLEARANCE TO  THE  GOVERN-
 MENT  ENTITY, AND ANY OTHER PROCEDURES DEEMED NECESSARY TO CARRY OUT THE
 PROVISIONS OF THIS SECTION. THESE PROCEDURES SHALL, TO THE EXTENT  PRAC-
 TICABLE,  REQUIRE SECURE ELECTRONIC COMMUNICATION BETWEEN THE DEPARTMENT
 AND THE REQUESTING GOVERNMENT ENTITY FOR THE TRANSMISSION OF TAX  CLEAR-
 ANCE  REQUESTS  TO  THE DEPARTMENT AND TRANSMISSION OF TAX CLEARANCES TO
 THE REQUESTING ENTITY.  NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, A
 GOVERNMENT ENTITY SHALL BE AUTHORIZED TO SHARE  ANY  APPLICANT  DATA  OR
 INFORMATION  WITH  THE DEPARTMENT THAT IS NECESSARY TO ENSURE THE PROPER
 MATCHING OF THE APPLICANT TO THE TAX RECORDS MAINTAINED BY  THE  DEPART-
 MENT.
   (3)  UPON  RECEIPT  OF  A  TAX CLEARANCE REQUEST, THE DEPARTMENT SHALL
 EXAMINE ITS RECORDS TO DETERMINE WHETHER THE SUBJECT OF THE  TAX  CLEAR-
 ANCE  REQUEST  HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS OF THE

 S. 2009--A                         60                         A. 3009--A
 
 DOLLAR THRESHOLD APPLICABLE FOR SUCH TAX CLEARANCE REQUEST OR, WHERE  NO
 THRESHOLD  HAS  BEEN  ESTABLISHED  BY  LAW  OR OTHERWISE, EQUAL TO OR IN
 EXCESS OF  FIVE  HUNDRED  DOLLARS.  WHEN  A  TAX  CLEARANCE  REQUEST  SO
 REQUIRES, THE DEPARTMENT SHALL ALSO DETERMINE WHETHER (I) THE SUBJECT OF
 SUCH REQUEST HAS COMPLIED WITH APPLICABLE TAX RETURN FILING REQUIREMENTS
 FOR  EACH OF THE PAST THREE YEARS; AND/OR (II) WHETHER A SUBJECT OF SUCH
 REQUEST THAT IS AN INDIVIDUAL OR ENTITY THAT IS  A  PERSON  REQUIRED  TO
 REGISTER  PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER
 IS REGISTERED PURSUANT TO SUCH SECTION. THE DEPARTMENT SHALL DENY A  TAX
 CLEARANCE  IF  IT DETERMINES THAT THE SUBJECT OF A TAX CLEARANCE REQUEST
 HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN  EXCESS  OF  THE  APPLICABLE
 THRESHOLD  OR,  WHEN  THE  TAX  CLEARANCE  REQUEST  SO REQUIRES, HAS NOT
 COMPLIED WITH APPLICABLE RETURN FILING AND/OR REGISTRATION REQUIREMENTS.
   (4) IF A TAX CLEARANCE IS DENIED, THE GOVERNMENT ENTITY THAT REQUESTED
 THE CLEARANCE SHALL PROVIDE NOTICE  TO  THE  APPLICANT  TO  CONTACT  THE
 DEPARTMENT. SUCH NOTICE SHALL BE MADE BY FIRST CLASS MAIL WITH A CERTIF-
 ICATE OF MAILING AND A COPY OF SUCH NOTICE ALSO SHALL BE PROVIDED TO THE
 DEPARTMENT.  WHEN  THE APPLICANT CONTACTS THE DEPARTMENT, THE DEPARTMENT
 SHALL INFORM THE APPLICANT OF THE BASIS FOR THE DENIAL OF THE TAX CLEAR-
 ANCE AND SHALL ALSO INFORM THE APPLICANT (I) THAT A TAX CLEARANCE DENIED
 DUE TO PAST-DUE TAX LIABILITIES MAY BE ISSUED ONCE  THE  TAXPAYER  FULLY
 SATISFIES  PAST-DUE TAX LIABILITIES OR MAKES PAYMENT ARRANGEMENTS SATIS-
 FACTORY TO THE COMMISSIONER; (II) THAT A TAX  CLEARANCE  DENIED  DUE  TO
 FAILURE  TO FILE TAX RETURNS MAY BE ISSUED ONCE THE APPLICANT HAS SATIS-
 FIED THE APPLICABLE RETURN FILING REQUIREMENTS; (III) THAT A TAX  CLEAR-
 ANCE  DENIED  FOR FAILURE TO REGISTER PURSUANT TO SECTION ELEVEN HUNDRED
 THIRTY-FOUR OF THIS CHAPTER MAY BE ISSUED ONCE THE APPLICANT HAS  REGIS-
 TERED PURSUANT TO SUCH SECTION; AND (IV) THE GROUNDS FOR CHALLENGING THE
 DENIAL OF A TAX CLEARANCE LISTED IN SUBDIVISION FIVE OF THIS SECTION.
   (5)  (A)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, AND EXCEPT AS
 SPECIFICALLY PROVIDED HEREIN, AN APPLICANT DENIED A TAX CLEARANCE  SHALL
 HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR SEEK ANY OTHER
 LEGAL  RECOURSE  AGAINST THE DEPARTMENT OR THE GOVERNMENT ENTITY RELATED
 TO THE DENIAL OF A TAX CLEARANCE BY THE DEPARTMENT.
   (B) AN APPLICANT SEEKING TO CHALLENGE THE DENIAL OF  A  TAX  CLEARANCE
 MUST  PROTEST  TO THE DEPARTMENT OR THE DIVISION OF TAX APPEALS NO LATER
 THAN SIXTY DAYS FROM THE DATE OF THE NOTIFICATION TO THE APPLICANT  THAT
 THE  TAX  CLEARANCE  WAS DENIED. AN APPLICANT MAY CHALLENGE A DEPARTMENT
 FINDING OF PAST-DUE TAX LIABILITIES ONLY ON THE  GROUNDS  THAT  (I)  THE
 INDIVIDUAL  OR  ENTITY DENIED THE TAX CLEARANCE IS NOT THE INDIVIDUAL OR
 ENTITY WITH THE PAST-DUE TAX LIABILITIES AT ISSUE; (II) THE PAST-DUE TAX
 LIABILITIES WERE  SATISFIED;  (III)  THE  APPLICANT'S  WAGES  ARE  BEING
 GARNISHED FOR THE PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL
 SUPPORT  PURSUANT  TO  AN  INCOME  EXECUTION  ISSUED PURSUANT TO SECTION
 FIFTY-TWO HUNDRED FORTY-ONE OR FIFTY-TWO HUNDRED FORTY-TWO OF THE  CIVIL
 PRACTICE  LAW  AND  RULES OR ANOTHER STATE'S INCOME WITHHOLDING ORDER AS
 AUTHORIZED UNDER PART FIVE OF ARTICLE FIVE-B OF THE FAMILY COURT ACT, OR
 GARNISHED BY THE DEPARTMENT FOR THE PAYMENT OF THE PAST-DUE TAX  LIABIL-
 ITIES  AT  ISSUE; OR (IV) THE APPLICANT IS MAKING CHILD SUPPORT PAYMENTS
 OR COMBINED CHILD AND SPOUSAL SUPPORT PAYMENTS PURSUANT TO  A  SATISFAC-
 TORY  PAYMENT  ARRANGEMENT  UNDER  SECTION  ONE  HUNDRED ELEVEN-B OF THE
 SOCIAL SERVICES LAW WITH A SUPPORT COLLECTION UNIT OR  OTHERWISE  MAKING
 PERIODIC  PAYMENTS  IN ACCORDANCE WITH SECTION FOUR HUNDRED FORTY OF THE
 FAMILY COURT ACT. AN APPLICANT MAY CHALLENGE  A  DEPARTMENT  FINDING  OF
 FAILURE  TO  COMPLY  WITH  TAX  RETURN  FILING  REQUIREMENTS ONLY ON THE

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 GROUNDS THAT ALL REQUIRED TAX RETURNS HAVE BEEN FILED FOR  EACH  OF  THE
 PAST THREE YEARS.
   (C)  NOTHING  IN  THIS  SUBDIVISION IS INTENDED TO LIMIT ANY APPLICANT
 FROM SEEKING RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION
 SIX HUNDRED FIFTY-FOUR OF THIS CHAPTER, TO THE EXTENT THAT HE OR SHE  IS
 ELIGIBLE  PURSUANT  TO  THAT  SECTION, OR ESTABLISHING TO THE DEPARTMENT
 THAT THE ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS  BEEN  STAYED
 BY  THE  FILING  OF  A  PETITION PURSUANT TO THE BANKRUPTCY CODE OF 1978
 (TITLE ELEVEN OF THE UNITED STATES CODE).
   (6) NOTWITHSTANDING ANY OTHER PROVISION OF  LAW,  THE  DEPARTMENT  MAY
 EXCHANGE  WITH  A GOVERNMENT ENTITY ANY DATA OR INFORMATION THAT, IN THE
 DISCRETION OF THE COMMISSIONER, IS NECESSARY FOR THE IMPLEMENTATION OF A
 TAX CLEARANCE REQUIREMENT. HOWEVER, NO GOVERNMENT ENTITY MAY RE-DISCLOSE
 THIS INFORMATION TO ANY OTHER ENTITY  OR  PERSON,  OTHER  THAN  FOR  THE
 PURPOSE  OF  INFORMING  THE  APPLICANT THAT A REQUIRED TAX CLEARANCE HAS
 BEEN DENIED, UNLESS OTHERWISE PERMITTED BY LAW.
   (7) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION,  THE  ACTIVITIES  TO
 COLLECT  PAST-DUE  TAX LIABILITIES UNDERTAKEN BY THE DEPARTMENT PURSUANT
 TO THIS SECTION SHALL NOT IN ANY  WAY  LIMIT,  RESTRICT  OR  IMPAIR  THE
 DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT OR ENFORCE TAX
 LIABILITIES UNDER ANY OTHER APPLICABLE PROVISION OF LAW.
   §  3. This act shall take effect June 1, 2017; provided, however, that
 the department of taxation and finance, the department of civil service,
 any municipal commission, and any other government  entity  electing  to
 receive  a tax clearance from the department of taxation and finance may
 work to execute  the  necessary  procedures  and  technical  changes  to
 support  the  tax clearance process as described in sections one and two
 of this act before that date; provided,  further,  that  this  effective
 date  will  not  impact  the administration of any tax clearance program
 authorized by another provision of law.

                                  PART W
 
   Section 1. Paragraph (a) of subdivision 1 of section 18 of chapter 266
 of the laws of 1986, amending the civil practice law and rules and other
 laws relating  to  malpractice  and  professional  medical  conduct,  as
 amended  by  section  2  of part C of chapter 59 of the laws of 2016, is
 amended to read as follows:
   (a) The superintendent of financial services and the  commissioner  of
 health  or  their  designee  shall, from funds available in the hospital
 excess liability pool created pursuant to subdivision 5 of this section,
 purchase a policy or policies for excess insurance coverage, as  author-
 ized  by  paragraph 1 of subsection (e) of section 5502 of the insurance
 law; or from an insurer, other than an insurer described in section 5502
 of the insurance law, duly authorized to write such coverage and actual-
 ly writing  medical  malpractice  insurance  in  this  state;  or  shall
 purchase equivalent excess coverage in a form previously approved by the
 superintendent  of  financial  services for purposes of providing equiv-
 alent excess coverage in accordance with section 19 of  chapter  294  of
 the  laws of 1985, for medical or dental malpractice occurrences between
 July 1, 1986 and June 30, 1987, between July 1, 1987 and June 30,  1988,
 between  July  1,  1988 and June 30, 1989, between July 1, 1989 and June
 30, 1990, between July 1, 1990 and June 30, 1991, between July  1,  1991
 and  June 30, 1992, between July 1, 1992 and June 30, 1993, between July
 1, 1993 and June 30, 1994, between July  1,  1994  and  June  30,  1995,
 between  July  1,  1995 and June 30, 1996, between July 1, 1996 and June

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 30, 1997, between July 1, 1997 and June 30, 1998, between July  1,  1998
 and  June 30, 1999, between July 1, 1999 and June 30, 2000, between July
 1, 2000 and June 30, 2001, between July  1,  2001  and  June  30,  2002,
 between  July  1,  2002 and June 30, 2003, between July 1, 2003 and June
 30, 2004, between July 1, 2004 and June 30, 2005, between July  1,  2005
 and  June 30, 2006, between July 1, 2006 and June 30, 2007, between July
 1, 2007 and June 30, 2008, between July  1,  2008  and  June  30,  2009,
 between  July  1,  2009 and June 30, 2010, between July 1, 2010 and June
 30, 2011, between July 1, 2011 and June 30, 2012, between July  1,  2012
 and  June 30, 2013, between July 1, 2013 and June 30, 2014, between July
 1, 2014 and June 30, 2015, between July 1, 2015 and June 30, 2016, [and]
 between July 1, 2016 and June 30, 2017, AND BETWEEN  JULY  1,  2017  AND
 JUNE  30,  2018  or  reimburse the hospital where the hospital purchases
 equivalent excess coverage as defined in subparagraph (i)  of  paragraph
 (a) of subdivision 1-a of this section for medical or dental malpractice
 occurrences between July 1, 1987 and June 30, 1988, between July 1, 1988
 and  June 30, 1989, between July 1, 1989 and June 30, 1990, between July
 1, 1990 and June 30, 1991, between July  1,  1991  and  June  30,  1992,
 between  July  1,  1992 and June 30, 1993, between July 1, 1993 and June
 30, 1994, between July 1, 1994 and June 30, 1995, between July  1,  1995
 and  June 30, 1996, between July 1, 1996 and June 30, 1997, between July
 1, 1997 and June 30, 1998, between July  1,  1998  and  June  30,  1999,
 between  July  1,  1999 and June 30, 2000, between July 1, 2000 and June
 30, 2001, between July 1, 2001 and June 30, 2002, between July  1,  2002
 and  June 30, 2003, between July 1, 2003 and June 30, 2004, between July
 1, 2004 and June 30, 2005, between July  1,  2005  and  June  30,  2006,
 between  July  1,  2006 and June 30, 2007, between July 1, 2007 and June
 30, 2008, between July 1, 2008 and June 30, 2009, between July  1,  2009
 and  June 30, 2010, between July 1, 2010 and June 30, 2011, between July
 1, 2011 and June 30, 2012, between July  1,  2012  and  June  30,  2013,
 between  July  1,  2013 and June 30, 2014, between July 1, 2014 and June
 30, 2015, between July 1, 2015 and June 30, 2016, [and] between July  1,
 2016  and  June 30, 2017, AND BETWEEN JULY 1, 2017 AND JUNE 30, 2018 for
 physicians or dentists certified as eligible for  each  such  period  or
 periods  pursuant to subdivision 2 of this section by a general hospital
 licensed pursuant to article 28 of the public health law; provided  that
 no  single  insurer  shall  write  more  than fifty percent of the total
 excess premium for a given policy year; and provided, however, that such
 eligible physicians or dentists must have in force an individual policy,
 from an insurer licensed in this state of primary malpractice  insurance
 coverage  in  amounts of no less than one million three hundred thousand
 dollars for each  claimant  and  three  million  nine  hundred  thousand
 dollars  for  all  claimants under that policy during the period of such
 excess coverage for  such  occurrences  or  be  endorsed  as  additional
 insureds under a hospital professional liability policy which is offered
 through a voluntary attending physician ("channeling") program previous-
 ly  permitted  by  the  superintendent  of financial services during the
 period of such excess coverage for such occurrences; AND  PROVIDED  THAT
 SUCH  ELIGIBLE  PHYSICIANS OR DENTISTS HAVE RECEIVED TAX CLEARANCES FROM
 THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO SECTION 171-W OF  THE
 TAX  LAW.  During  such  period, such policy for excess coverage or such
 equivalent excess coverage shall, when combined with the physician's  or
 dentist's  primary  malpractice  insurance coverage or coverage provided
 through a voluntary attending physician ("channeling") program, total an
 aggregate level of two million three hundred thousand dollars  for  each
 claimant and six million nine hundred thousand dollars for all claimants

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 from all such policies with respect to occurrences in each of such years
 provided, however, if the cost of primary malpractice insurance coverage
 in  excess of one million dollars, but below the excess medical malprac-
 tice  insurance coverage provided pursuant to this act, exceeds the rate
 of nine percent per annum, then the required level of  primary  malprac-
 tice insurance coverage in excess of one million dollars for each claim-
 ant  shall  be  in  an amount of not less than the dollar amount of such
 coverage available at nine percent per annum; the required level of such
 coverage for all claimants under that policy shall be in an  amount  not
 less  than  three times the dollar amount of coverage for each claimant;
 and excess coverage, when combined with such primary malpractice  insur-
 ance  coverage,  shall increase the aggregate level for each claimant by
 one million dollars and three million dollars  for  all  claimants;  and
 provided  further,  that,  with  respect  to policies of primary medical
 malpractice coverage that include occurrences between April 1, 2002  and
 June 30, 2002, such requirement that coverage be in amounts no less than
 one  million  three hundred thousand dollars for each claimant and three
 million nine hundred thousand dollars for all claimants for such  occur-
 rences shall be effective April 1, 2002.
   §  2.  Subdivision 3 of section 18 of chapter 266 of the laws of 1986,
 amending the civil practice law and rules and  other  laws  relating  to
 malpractice and professional medical conduct, as amended by section 3 of
 part C of chapter 59 of the laws of 2016, is amended to read as follows:
   (3)(a)  The  superintendent  of financial services shall determine and
 certify to each general hospital and to the commissioner of  health  the
 cost  of  excess malpractice insurance for medical or dental malpractice
 occurrences between July 1, 1986 and June 30, 1987, between July 1, 1988
 and June 30, 1989, between July 1, 1989 and June 30, 1990, between  July
 1,  1990  and  June  30,  1991,  between July 1, 1991 and June 30, 1992,
 between July 1, 1992 and June 30, 1993, between July 1,  1993  and  June
 30,  1994,  between July 1, 1994 and June 30, 1995, between July 1, 1995
 and June 30, 1996, between July 1, 1996 and June 30, 1997, between  July
 1,  1997  and  June  30,  1998,  between July 1, 1998 and June 30, 1999,
 between July 1, 1999 and June 30, 2000, between July 1,  2000  and  June
 30,  2001,  between July 1, 2001 and June 30, 2002, between July 1, 2002
 and June 30, 2003, between July 1, 2003 and June 30, 2004, between  July
 1,  2004  and  June  30,  2005,  between July 1, 2005 and June 30, 2006,
 between July 1, 2006 and June 30, 2007, between July 1,  2007  and  June
 30,  2008,  between July 1, 2008 and June 30, 2009, between July 1, 2009
 and June 30, 2010, between July 1, 2010 and June 30, 2011, between  July
 1,  2011  and June 30, 2012, between July 1, 2012 and June 30, 2013, and
 between July 1, 2013 and June 30, 2014, between July 1,  2014  and  June
 30,  2015,  between  July 1, 2015 and June 30, 2016, and between July 1,
 2016 and June 30, 2017, AND BETWEEN JULY 1, 2017 AND JUNE 30, 2018 allo-
 cable to each general hospital for physicians or dentists  certified  as
 eligible  for purchase of a policy for excess insurance coverage by such
 general hospital in accordance with subdivision 2 of this  section,  and
 may amend such determination and certification as necessary.
   (b)  The  superintendent  of  financial  services  shall determine and
 certify to each general hospital and to the commissioner of  health  the
 cost  of  excess malpractice insurance or equivalent excess coverage for
 medical or dental malpractice occurrences between July 1, 1987 and  June
 30,  1988,  between July 1, 1988 and June 30, 1989, between July 1, 1989
 and June 30, 1990, between July 1, 1990 and June 30, 1991, between  July
 1,  1991  and  June  30,  1992,  between July 1, 1992 and June 30, 1993,
 between July 1, 1993 and June 30, 1994, between July 1,  1994  and  June

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 30,  1995,  between July 1, 1995 and June 30, 1996, between July 1, 1996
 and June 30, 1997, between July 1, 1997 and June 30, 1998, between  July
 1,  1998  and  June  30,  1999,  between July 1, 1999 and June 30, 2000,
 between  July  1,  2000 and June 30, 2001, between July 1, 2001 and June
 30, 2002, between July 1, 2002 and June 30, 2003, between July  1,  2003
 and  June 30, 2004, between July 1, 2004 and June 30, 2005, between July
 1, 2005 and June 30, 2006, between July  1,  2006  and  June  30,  2007,
 between  July  1,  2007 and June 30, 2008, between July 1, 2008 and June
 30, 2009, between July 1, 2009 and June 30, 2010, between July  1,  2010
 and  June 30, 2011, between July 1, 2011 and June 30, 2012, between July
 1, 2012 and June 30, 2013, between July  1,  2013  and  June  30,  2014,
 between  July  1,  2014 and June 30, 2015, between July 1, 2015 and June
 30, 2016, and between July 1, 2016 and June 30, 2017, AND  BETWEEN  JULY
 1,  2017 AND JUNE 30, 2018 allocable to each general hospital for physi-
 cians or dentists certified as eligible for purchase  of  a  policy  for
 excess  insurance coverage or equivalent excess coverage by such general
 hospital in accordance with subdivision 2 of this section, and may amend
 such determination and certification as necessary. The superintendent of
 financial services shall determine and certify to each general  hospital
 and to the commissioner of health the ratable share of such cost alloca-
 ble to the period July 1, 1987 to December 31, 1987, to the period Janu-
 ary 1, 1988 to June 30, 1988, to the period July 1, 1988 to December 31,
 1988, to the period January 1, 1989 to June 30, 1989, to the period July
 1,  1989 to December 31, 1989, to the period January 1, 1990 to June 30,
 1990, to the period July 1, 1990 to December 31,  1990,  to  the  period
 January 1, 1991 to June 30, 1991, to the period July 1, 1991 to December
 31,  1991, to the period January 1, 1992 to June 30, 1992, to the period
 July 1, 1992 to December 31, 1992, to the period January 1, 1993 to June
 30, 1993, to the period July 1, 1993 to December 31, 1993, to the period
 January 1, 1994 to June 30, 1994, to the period July 1, 1994 to December
 31, 1994, to the period January 1, 1995 to June 30, 1995, to the  period
 July 1, 1995 to December 31, 1995, to the period January 1, 1996 to June
 30, 1996, to the period July 1, 1996 to December 31, 1996, to the period
 January 1, 1997 to June 30, 1997, to the period July 1, 1997 to December
 31,  1997, to the period January 1, 1998 to June 30, 1998, to the period
 July 1, 1998 to December 31, 1998, to the period January 1, 1999 to June
 30, 1999, to the period July 1, 1999 to December 31, 1999, to the period
 January 1, 2000 to June 30, 2000, to the period July 1, 2000 to December
 31, 2000, to the period January 1, 2001 to June 30, 2001, to the  period
 July  1,  2001  to June 30, 2002, to the period July 1, 2002 to June 30,
 2003, to the period July 1, 2003 to June 30, 2004, to the period July 1,
 2004 to June 30, 2005, to the period July 1, 2005 and June 30, 2006,  to
 the  period  July  1, 2006 and June 30, 2007, to the period July 1, 2007
 and June 30, 2008, to the period July 1, 2008 and June 30, 2009, to  the
 period  July  1,  2009 and June 30, 2010, to the period July 1, 2010 and
 June 30, 2011, to the period July 1, 2011 and  June  30,  2012,  to  the
 period  July  1,  2012 and June 30, 2013, to the period July 1, 2013 and
 June 30, 2014, to the period July 1, 2014 and  June  30,  2015,  to  the
 period July 1, 2015 and June 30, 2016, and between July 1, 2016 and June
 30, 2017, AND TO THE PERIOD JULY 1, 2017 AND JUNE 30, 2018.
   § 3. Paragraphs (a), (b), (c), (d) and (e) of subdivision 8 of section
 18  of  chapter 266 of the laws of 1986, amending the civil practice law
 and rules and  other  laws  relating  to  malpractice  and  professional
 medical  conduct, as amended by section 4 of part C of chapter 59 of the
 laws of 2016, are amended to read as follows:

 S. 2009--A                         65                         A. 3009--A
 
   (a) To the extent funds available to  the  hospital  excess  liability
 pool  pursuant to subdivision 5 of this section as amended, and pursuant
 to section 6 of part J of chapter 63 of the laws of 2001,  as  may  from
 time  to  time  be amended, which amended this subdivision, are insuffi-
 cient  to  meet  the  costs  of  excess insurance coverage or equivalent
 excess coverage for coverage periods during the period July 1,  1992  to
 June  30,  1993, during the period July 1, 1993 to June 30, 1994, during
 the period July 1, 1994 to June 30, 1995, during the period July 1, 1995
 to June 30, 1996, during the period July  1,  1996  to  June  30,  1997,
 during  the period July 1, 1997 to June 30, 1998, during the period July
 1, 1998 to June 30, 1999, during the period July 1,  1999  to  June  30,
 2000, during the period July 1, 2000 to June 30, 2001, during the period
 July  1,  2001  to  October 29, 2001, during the period April 1, 2002 to
 June 30, 2002, during the period July 1, 2002 to June 30,  2003,  during
 the period July 1, 2003 to June 30, 2004, during the period July 1, 2004
 to  June  30,  2005,  during  the  period July 1, 2005 to June 30, 2006,
 during the period July 1, 2006 to June 30, 2007, during the period  July
 1,  2007  to  June  30, 2008, during the period July 1, 2008 to June 30,
 2009, during the period July 1, 2009 to June 30, 2010, during the period
 July 1, 2010 to June 30, 2011, during the period July 1,  2011  to  June
 30,  2012,  during  the period July 1, 2012 to June 30, 2013, during the
 period July 1, 2013 to June 30, 2014, during the period July 1, 2014  to
 June  30,  2015,  during the period July 1, 2015 and June 30, 2016, [and
 between] DURING THE PERIOD July 1, 2016 and June 30,  2017,  AND  DURING
 THE  PERIOD  JULY  1, 2017 AND JUNE 30, 2018 allocated or reallocated in
 accordance with paragraph (a) of subdivision  4-a  of  this  section  to
 rates  of payment applicable to state governmental agencies, each physi-
 cian or dentist for whom a  policy  for  excess  insurance  coverage  or
 equivalent excess coverage is purchased for such period shall be respon-
 sible for payment to the provider of excess insurance coverage or equiv-
 alent excess coverage of an allocable share of such insufficiency, based
 on  the  ratio  of the total cost of such coverage for such physician to
 the sum of the total cost of such coverage for all physicians applied to
 such insufficiency.
   (b) Each provider of excess insurance coverage  or  equivalent  excess
 coverage  covering the period July 1, 1992 to June 30, 1993, or covering
 the period July 1, 1993 to June 30, 1994, or covering the period July 1,
 1994 to June 30, 1995, or covering the period July 1, 1995 to  June  30,
 1996,  or covering the period July 1, 1996 to June 30, 1997, or covering
 the period July 1, 1997 to June 30, 1998, or covering the period July 1,
 1998 to June 30, 1999, or covering the period July 1, 1999 to  June  30,
 2000,  or covering the period July 1, 2000 to June 30, 2001, or covering
 the period July 1, 2001 to October 29,  2001,  or  covering  the  period
 April  1,  2002 to June 30, 2002, or covering the period July 1, 2002 to
 June 30, 2003, or covering the period July 1, 2003 to June 30, 2004,  or
 covering the period July 1, 2004 to June 30, 2005, or covering the peri-
 od July 1, 2005 to June 30, 2006, or covering the period July 1, 2006 to
 June  30, 2007, or covering the period July 1, 2007 to June 30, 2008, or
 covering the period July 1, 2008 to June 30, 2009, or covering the peri-
 od July 1, 2009 to June 30, 2010, or covering the period July 1, 2010 to
 June 30, 2011, or covering the period July 1, 2011 to June 30, 2012,  or
 covering the period July 1, 2012 to June 30, 2013, or covering the peri-
 od July 1, 2013 to June 30, 2014, or covering the period July 1, 2014 to
 June  30, 2015, or covering the period July 1, 2015 to June 30, 2016, or
 covering the period July 1, 2016 to June 30, 2017, OR COVERING THE PERI-
 OD JULY 1, 2017 TO JUNE 30, 2018 shall notify  a  covered  physician  or

 S. 2009--A                         66                         A. 3009--A
 
 dentist by mail, mailed to the address shown on the last application for
 excess  insurance  coverage or equivalent excess coverage, of the amount
 due to such provider from such physician or dentist  for  such  coverage
 period  determined in accordance with paragraph (a) of this subdivision.
 Such amount shall be due from such physician or dentist to such provider
 of excess insurance coverage or equivalent excess coverage in a time and
 manner determined by the superintendent of financial services.
   (c) If a physician or dentist liable for payment of a portion  of  the
 costs  of excess insurance coverage or equivalent excess coverage cover-
 ing the period July 1, 1992 to June 30, 1993,  or  covering  the  period
 July  1,  1993  to June 30, 1994, or covering the period July 1, 1994 to
 June 30, 1995, or covering the period July 1, 1995 to June 30, 1996,  or
 covering the period July 1, 1996 to June 30, 1997, or covering the peri-
 od July 1, 1997 to June 30, 1998, or covering the period July 1, 1998 to
 June  30, 1999, or covering the period July 1, 1999 to June 30, 2000, or
 covering the period July 1, 2000 to June 30, 2001, or covering the peri-
 od July 1, 2001 to October 29, 2001, or covering  the  period  April  1,
 2002  to  June 30, 2002, or covering the period July 1, 2002 to June 30,
 2003, or covering the period July 1, 2003 to June 30, 2004, or  covering
 the period July 1, 2004 to June 30, 2005, or covering the period July 1,
 2005  to  June 30, 2006, or covering the period July 1, 2006 to June 30,
 2007, or covering the period July 1, 2007 to June 30, 2008, or  covering
 the period July 1, 2008 to June 30, 2009, or covering the period July 1,
 2009  to  June 30, 2010, or covering the period July 1, 2010 to June 30,
 2011, or covering the period July 1, 2011 to June 30, 2012, or  covering
 the period July 1, 2012 to June 30, 2013, or covering the period July 1,
 2013  to  June 30, 2014, or covering the period July 1, 2014 to June 30,
 2015, or covering the period July 1, 2015 to June 30, 2016, or  covering
 the period July 1, 2016 to June 30, 2017, OR COVERING THE PERIOD JULY 1,
 2017  TO  JUNE  30,  2018 determined in accordance with paragraph (a) of
 this subdivision fails, refuses or  neglects  to  make  payment  to  the
 provider  of  excess insurance coverage or equivalent excess coverage in
 such time and manner as determined by the  superintendent  of  financial
 services pursuant to paragraph (b) of this subdivision, excess insurance
 coverage  or  equivalent excess coverage purchased for such physician or
 dentist in accordance with this section for such coverage  period  shall
 be  cancelled and shall be null and void as of the first day on or after
 the commencement of a policy period  where  the  liability  for  payment
 pursuant to this subdivision has not been met.
   (d)  Each  provider  of excess insurance coverage or equivalent excess
 coverage shall notify the superintendent of financial services  and  the
 commissioner  of  health or their designee of each physician and dentist
 eligible for purchase of a  policy  for  excess  insurance  coverage  or
 equivalent  excess coverage covering the period July 1, 1992 to June 30,
 1993, or covering the period July 1, 1993 to June 30, 1994, or  covering
 the period July 1, 1994 to June 30, 1995, or covering the period July 1,
 1995  to  June 30, 1996, or covering the period July 1, 1996 to June 30,
 1997, or covering the period July 1, 1997 to June 30, 1998, or  covering
 the period July 1, 1998 to June 30, 1999, or covering the period July 1,
 1999  to  June 30, 2000, or covering the period July 1, 2000 to June 30,
 2001, or covering the period July 1, 2001 to October 29, 2001, or cover-
 ing the period April 1, 2002 to June 30, 2002, or  covering  the  period
 July  1,  2002  to June 30, 2003, or covering the period July 1, 2003 to
 June 30, 2004, or covering the period July 1, 2004 to June 30, 2005,  or
 covering the period July 1, 2005 to June 30, 2006, or covering the peri-
 od July 1, 2006 to June 30, 2007, or covering the period July 1, 2007 to

 S. 2009--A                         67                         A. 3009--A
 
 June  30, 2008, or covering the period July 1, 2008 to June 30, 2009, or
 covering the period July 1, 2009 to June 30, 2010, or covering the peri-
 od July 1, 2010 to June 30, 2011, or covering the period July 1, 2011 to
 June  30, 2012, or covering the period July 1, 2012 to June 30, 2013, or
 covering the period July 1, 2013 to June 30, 2014, or covering the peri-
 od July 1, 2014 to June 30, 2015, or covering the period July 1, 2015 to
 June 30, 2016, or covering the period July 1, 2016 to June 30, 2017,  OR
 COVERING  THE PERIOD JULY 1, 2017 TO JUNE 30, 2018 that has made payment
 to such provider of  excess  insurance  coverage  or  equivalent  excess
 coverage  in  accordance  with  paragraph (b) of this subdivision and of
 each physician and dentist who has failed, refused or neglected to  make
 such payment.
   (e)  A  provider  of  excess  insurance  coverage or equivalent excess
 coverage shall refund to the hospital excess liability pool  any  amount
 allocable to the period July 1, 1992 to June 30, 1993, and to the period
 July  1,  1993  to June 30, 1994, and to the period July 1, 1994 to June
 30, 1995, and to the period July 1, 1995 to June 30, 1996,  and  to  the
 period  July 1, 1996 to June 30, 1997, and to the period July 1, 1997 to
 June 30, 1998, and to the period July 1, 1998 to June 30, 1999,  and  to
 the period July 1, 1999 to June 30, 2000, and to the period July 1, 2000
 to  June  30,  2001, and to the period July 1, 2001 to October 29, 2001,
 and to the period April 1, 2002 to June 30, 2002, and to the period July
 1, 2002 to June 30, 2003, and to the period July 1,  2003  to  June  30,
 2004, and to the period July 1, 2004 to June 30, 2005, and to the period
 July  1,  2005  to June 30, 2006, and to the period July 1, 2006 to June
 30, 2007, and to the period July 1, 2007 to June 30, 2008,  and  to  the
 period  July 1, 2008 to June 30, 2009, and to the period July 1, 2009 to
 June 30, 2010, and to the period July 1, 2010 to June 30, 2011,  and  to
 the period July 1, 2011 to June 30, 2012, and to the period July 1, 2012
 to  June  30, 2013, and to the period July 1, 2013 to June 30, 2014, and
 to the period July 1, 2014 to June 30, 2015, and to the period  July  1,
 2015  to  June  30,  2016,  [and] to the period July 1, 2016 to June 30,
 2017, AND TO THE PERIOD JULY 1, 2017 TO JUNE 30, 2018 received from  the
 hospital excess liability pool for purchase of excess insurance coverage
 or  equivalent  excess coverage covering the period July 1, 1992 to June
 30, 1993, and covering the period July 1, 1993 to  June  30,  1994,  and
 covering  the  period  July  1,  1994 to June 30, 1995, and covering the
 period July 1, 1995 to June 30, 1996, and covering the  period  July  1,
 1996  to June 30, 1997, and covering the period July 1, 1997 to June 30,
 1998, and covering the period July 1, 1998 to June 30, 1999, and  cover-
 ing  the  period  July 1, 1999 to June 30, 2000, and covering the period
 July 1, 2000 to June 30, 2001, and covering the period July 1,  2001  to
 October  29,  2001,  and  covering  the period April 1, 2002 to June 30,
 2002, and covering the period July 1, 2002 to June 30, 2003, and  cover-
 ing  the  period  July 1, 2003 to June 30, 2004, and covering the period
 July 1, 2004 to June 30, 2005, and covering the period July 1,  2005  to
 June  30,  2006,  and covering the period July 1, 2006 to June 30, 2007,
 and covering the period July 1, 2007 to June 30, 2008, and covering  the
 period  July  1,  2008 to June 30, 2009, and covering the period July 1,
 2009 to June 30, 2010, and covering the period July 1, 2010 to June  30,
 2011,  and covering the period July 1, 2011 to June 30, 2012, and cover-
 ing the period July 1, 2012 to June 30, 2013, and  covering  the  period
 July  1,  2013 to June 30, 2014, and covering the period July 1, 2014 to
 June 30, 2015, and covering the period July 1, 2015 to  June  30,  2016,
 and  covering the period July 1, 2016 to June 30, 2017, AND COVERING THE
 PERIOD JULY 1, 2017 TO JUNE 30, 2018 for a physician  or  dentist  where

 S. 2009--A                         68                         A. 3009--A
 
 such   excess  insurance  coverage  or  equivalent  excess  coverage  is
 cancelled in accordance with paragraph (c) of this subdivision.
   § 4. Section 40 of chapter 266 of the laws of 1986, amending the civil
 practice  law  and  rules  and  other  laws  relating to malpractice and
 professional medical conduct, as amended by section 5 of part C of chap-
 ter 59 of the laws of 2016, is amended to read as follows:
   § 40. The superintendent of financial services shall  establish  rates
 for  policies  providing  coverage  for  physicians and surgeons medical
 malpractice for the periods commencing July 1, 1985 and ending June  30,
 [2017] 2018; provided, however, that notwithstanding any other provision
 of  law,  the superintendent shall not establish or approve any increase
 in rates for the period commencing July 1,  2009  and  ending  June  30,
 2010.  The  superintendent shall direct insurers to establish segregated
 accounts for premiums, payments, reserves and investment income  attrib-
 utable to such premium periods and shall require periodic reports by the
 insurers  regarding  claims and expenses attributable to such periods to
 monitor whether such accounts will be sufficient to meet incurred claims
 and expenses. On or after July 1, 1989, the superintendent shall  impose
 a  surcharge  on  premiums  to  satisfy  a  projected deficiency that is
 attributable to the premium levels established pursuant to this  section
 for  such  periods;  provided, however, that such annual surcharge shall
 not exceed eight percent of the established rate until  July  1,  [2017]
 2018, at which time and thereafter such surcharge shall not exceed twen-
 ty-five  percent  of  the  approved  adequate rate, and that such annual
 surcharges shall continue for such period of time as shall be sufficient
 to satisfy such deficiency. The superintendent  shall  not  impose  such
 surcharge  during the period commencing July 1, 2009 and ending June 30,
 2010. On and after July  1,  1989,  the  surcharge  prescribed  by  this
 section  shall  be  retained by insurers to the extent that they insured
 physicians and surgeons during the July 1, 1985 through June 30,  [2017]
 2018  policy  periods;  in  the  event  and to the extent physicians and
 surgeons were insured by another insurer during such periods, all  or  a
 pro  rata  share of the surcharge, as the case may be, shall be remitted
 to such other insurer in accordance with rules  and  regulations  to  be
 promulgated by the superintendent.  Surcharges collected from physicians
 and  surgeons  who  were not insured during such policy periods shall be
 apportioned among all insurers in proportion to the premium  written  by
 each  insurer  during such policy periods; if a physician or surgeon was
 insured by an insurer subject to rates established by the superintendent
 during such policy periods, and  at  any  time  thereafter  a  hospital,
 health  maintenance organization, employer or institution is responsible
 for responding in damages for liability arising out of such  physician's
 or  surgeon's  practice  of medicine, such responsible entity shall also
 remit to such prior insurer the equivalent amount  that  would  then  be
 collected  as  a  surcharge if the physician or surgeon had continued to
 remain insured by such prior insurer. In  the  event  any  insurer  that
 provided  coverage  during  such  policy  periods is in liquidation, the
 property/casualty insurance security fund shall receive the  portion  of
 surcharges to which the insurer in liquidation would have been entitled.
 The surcharges authorized herein shall be deemed to be income earned for
 the  purposes of section 2303 of the insurance law.  The superintendent,
 in establishing adequate rates and in determining  any  projected  defi-
 ciency  pursuant  to  the requirements of this section and the insurance
 law, shall give substantial weight, determined  in  his  discretion  and
 judgment,  to  the  prospective  anticipated  effect  of any regulations
 promulgated and laws enacted and the  public  benefit  of    stabilizing

 S. 2009--A                         69                         A. 3009--A
 
 malpractice rates and minimizing rate level fluctuation during the peri-
 od  of  time  necessary for the development of more reliable statistical
 experience as to the efficacy of such  laws  and  regulations  affecting
 medical, dental or podiatric malpractice enacted or promulgated in 1985,
 1986,  by this act and at any other time.  Notwithstanding any provision
 of the insurance law, rates already established and to be established by
 the superintendent pursuant to this section are deemed adequate if  such
 rates  would be adequate when taken together with the maximum authorized
 annual surcharges to be imposed for a reasonable period of time  whether
 or  not  any  such  annual surcharge has been actually imposed as of the
 establishment of such rates.
   § 5. Section 5 and subdivisions (a) and (e) of section 6 of part J  of
 chapter  63  of  the  laws  of 2001, amending chapter 266 of the laws of
 1986, amending the civil practice law and rules and other laws  relating
 to malpractice and professional medical conduct, as amended by section 6
 of  part  C  of  chapter  59 of the laws of 2016, are amended to read as
 follows:
   § 5. The superintendent of financial services and the commissioner  of
 health shall determine, no later than June 15, 2002, June 15, 2003, June
 15,  2004,  June  15, 2005, June 15, 2006, June 15, 2007, June 15, 2008,
 June 15, 2009, June 15, 2010, June 15, 2011, June  15,  2012,  June  15,
 2013,  June 15, 2014, June 15, 2015, June 15, 2016, [and] June 15, 2017,
 AND JUNE 15, 2018 the amount of funds available in the  hospital  excess
 liability  pool,  created  pursuant  to section 18 of chapter 266 of the
 laws of 1986, and whether such funds  are  sufficient  for  purposes  of
 purchasing  excess  insurance coverage for eligible participating physi-
 cians and dentists during the period July 1, 2001 to June 30,  2002,  or
 July 1, 2002 to June 30, 2003, or July 1, 2003 to June 30, 2004, or July
 1,  2004  to June 30, 2005, or July 1, 2005 to June 30, 2006, or July 1,
 2006 to June 30, 2007, or July 1, 2007 to June 30, 2008, or July 1, 2008
 to June 30, 2009, or July 1, 2009 to June 30, 2010, or July 1,  2010  to
 June 30, 2011, or July 1, 2011 to June 30, 2012, or July 1, 2012 to June
 30,  2013, or July 1, 2013 to June 30, 2014, or July 1, 2014 to June 30,
 2015, or July 1, 2015 to June 30, 2016, or July  1,  2016  to  June  30,
 2017, OR TO JULY 1, 2017 TO JUNE 30, 2018 as applicable.
   (a)  This section shall be effective only upon a determination, pursu-
 ant to section five of this act,  by  the  superintendent  of  financial
 services  and  the  commissioner  of health, and a certification of such
 determination to the state director of the  budget,  the  chair  of  the
 senate  committee  on finance and the chair of the assembly committee on
 ways and means, that the amount of funds in the hospital excess  liabil-
 ity  pool,  created pursuant to section 18 of chapter 266 of the laws of
 1986, is insufficient for purposes of purchasing excess insurance cover-
 age for eligible participating physicians and dentists during the period
 July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 2003, or July
 1, 2003 to June 30, 2004, or July 1, 2004 to June 30, 2005, or  July  1,
 2005 to June 30, 2006, or July 1, 2006 to June 30, 2007, or July 1, 2007
 to  June  30, 2008, or July 1, 2008 to June 30, 2009, or July 1, 2009 to
 June 30, 2010, or July 1, 2010 to June 30, 2011, or July 1, 2011 to June
 30, 2012, or July 1, 2012 to June 30, 2013, or July 1, 2013 to June  30,
 2014,  or  July  1,  2014  to June 30, 2015, or July 1, 2015 to June 30,
 2016, or July 1, 2016 to June 30, 2017, OR JULY 1, 2017 TO JUNE 30, 2018
 as applicable.
   (e) The commissioner of health  shall  transfer  for  deposit  to  the
 hospital excess liability pool created pursuant to section 18 of chapter
 266  of  the laws of 1986 such amounts as directed by the superintendent

 S. 2009--A                         70                         A. 3009--A
 
 of financial services for the purchase  of  excess  liability  insurance
 coverage  for  eligible  participating  physicians  and dentists for the
 policy year July 1, 2001 to June 30, 2002, or July 1, 2002 to  June  30,
 2003,  or  July  1,  2003  to June 30, 2004, or July 1, 2004 to June 30,
 2005, or July 1, 2005 to June 30, 2006, or July  1,  2006  to  June  30,
 2007,  as  applicable, and the cost of administering the hospital excess
 liability pool for such applicable policy year,  pursuant to the program
 established in chapter 266 of the laws of 1986,  as  amended,  no  later
 than  June  15,  2002, June 15, 2003, June 15, 2004, June 15, 2005, June
 15, 2006, June 15, 2007, June 15, 2008, June 15, 2009,  June  15,  2010,
 June  15,  2011,  June  15, 2012, June 15, 2013, June 15, 2014, June 15,
 2015, June 15, 2016, [and] June 15, 2017, AND JUNE 15, 2018 as  applica-
 ble.
   § 6. Notwithstanding any law, rule or regulation to the contrary, only
 physicians  or  dentists who were eligible, and for whom the superinten-
 dent of financial services and the  commissioner  of  health,  or  their
 designee, purchased, with funds available in the hospital excess liabil-
 ity  pool,  a  full  or partial policy for excess coverage or equivalent
 excess coverage for the coverage period ending the  thirtieth  of  June,
 two thousand seventeen, shall be eligible to apply for such coverage for
 the coverage period beginning the first of July, two thousand seventeen;
 provided,  however,  if  the  total number of physicians or dentists for
 whom such excess coverage or equivalent excess  coverage  was  purchased
 for the policy year ending the thirtieth of June, two thousand seventeen
 exceeds the total number of physicians or dentists certified as eligible
 for the coverage period beginning the first of July, two thousand seven-
 teen,  then the general hospitals may certify additional eligible physi-
 cians or dentists in a number equal to such general  hospital's  propor-
 tional  share  of  the  total  number of physicians or dentists for whom
 excess coverage or equivalent excess coverage was purchased  with  funds
 available  in  the hospital excess liability pool as of the thirtieth of
 June, two thousand seventeen, as applied to the difference  between  the
 number  of  eligible physicians or dentists for whom a policy for excess
 coverage or equivalent excess coverage was purchased  for  the  coverage
 period  ending  the  thirtieth  of  June, two thousand seventeen and the
 number of such eligible physicians or  dentists  who  have  applied  for
 excess  coverage  or  equivalent excess coverage for the coverage period
 beginning the first of July, two thousand seventeen.
   § 7. The tax law is amended by adding a new section 171-w to  read  as
 follows:
   §  171-W. ENFORCEMENT OF DELINQUENT TAX LIABILITIES THROUGH TAX CLEAR-
 ANCES.  (1) FOR THE PURPOSES OF THIS SECTION, THE TERM "TAX LIABILITIES"
 SHALL MEAN ANY TAX, SURCHARGE, OR FEE ADMINISTERED BY THE  COMMISSIONER,
 OR  ANY  PENALTY  OR  INTEREST ON SUCH TAX, SURCHARGE OR FEE, OWED BY AN
 INDIVIDUAL OR ENTITY. THE TERM  "PAST-DUE  TAX  LIABILITIES"  MEANS  ANY
 UNPAID  TAX  LIABILITIES  THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE
 TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR  JUDICIAL  REVIEW.
 THE  TERM "GOVERNMENT ENTITY" MEANS THE STATE OF NEW YORK, OR ANY OF ITS
 AGENCIES, POLITICAL SUBDIVISIONS, INSTRUMENTALITIES, PUBLIC CORPORATIONS
 (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT
 WITH ANOTHER STATE OR CANADA), OR COMBINATION THEREOF.
   (2) THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL COOPERATE WITH ANY
 GOVERNMENT ENTITY THAT IS REQUIRED BY LAW OR HAS ELECTED TO REQUIRE  TAX
 CLEARANCES TO ESTABLISH PROCEDURES BY WHICH THE DEPARTMENT SHALL RECEIVE
 A  TAX  CLEARANCE REQUEST AND TRANSMIT SUCH TAX CLEARANCE TO THE GOVERN-
 MENT ENTITY, AND ANY OTHER PROCEDURES DEEMED NECESSARY TO CARRY OUT  THE

 S. 2009--A                         71                         A. 3009--A
 
 PROVISIONS  OF THIS SECTION. THESE PROCEDURES SHALL, TO THE EXTENT PRAC-
 TICABLE, REQUIRE SECURE ELECTRONIC COMMUNICATION BETWEEN THE  DEPARTMENT
 AND  THE REQUESTING GOVERNMENT ENTITY FOR THE TRANSMISSION OF TAX CLEAR-
 ANCE  REQUESTS  TO  THE DEPARTMENT AND TRANSMISSION OF TAX CLEARANCES TO
 THE REQUESTING ENTITY.  NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, A
 GOVERNMENT ENTITY SHALL BE AUTHORIZED TO SHARE  ANY  APPLICANT  DATA  OR
 INFORMATION  WITH  THE DEPARTMENT THAT IS NECESSARY TO ENSURE THE PROPER
 MATCHING OF THE APPLICANT TO THE TAX RECORDS MAINTAINED BY  THE  DEPART-
 MENT.
   (3)  UPON  RECEIPT  OF  A  TAX CLEARANCE REQUEST, THE DEPARTMENT SHALL
 EXAMINE ITS RECORDS TO DETERMINE WHETHER THE SUBJECT OF THE  TAX  CLEAR-
 ANCE  REQUEST  HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS OF THE
 DOLLAR THRESHOLD APPLICABLE FOR SUCH TAX CLEARANCE REQUEST OR, WHERE  NO
 THRESHOLD  HAS  BEEN  ESTABLISHED  BY  LAW  OR OTHERWISE, EQUAL TO OR IN
 EXCESS OF  FIVE  HUNDRED  DOLLARS.  WHEN  A  TAX  CLEARANCE  REQUEST  SO
 REQUIRES, THE DEPARTMENT SHALL ALSO DETERMINE WHETHER (I) THE SUBJECT OF
 SUCH REQUEST HAS COMPLIED WITH APPLICABLE TAX RETURN FILING REQUIREMENTS
 FOR  EACH OF THE PAST THREE YEARS; AND/OR (II) WHETHER A SUBJECT OF SUCH
 REQUEST THAT IS AN INDIVIDUAL OR ENTITY THAT IS  A  PERSON  REQUIRED  TO
 REGISTER  PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER
 IS REGISTERED PURSUANT TO SUCH SECTION. THE DEPARTMENT SHALL DENY A  TAX
 CLEARANCE  IF  IT DETERMINES THAT THE SUBJECT OF A TAX CLEARANCE REQUEST
 HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN  EXCESS  OF  THE  APPLICABLE
 THRESHOLD  OR,  WHEN  THE  TAX  CLEARANCE  REQUEST  SO REQUIRES, HAS NOT
 COMPLIED WITH APPLICABLE RETURN FILING AND/OR REGISTRATION REQUIREMENTS.
   (4) IF A TAX CLEARANCE IS DENIED, THE GOVERNMENT ENTITY THAT REQUESTED
 THE CLEARANCE SHALL PROVIDE NOTICE  TO  THE  APPLICANT  TO  CONTACT  THE
 DEPARTMENT. SUCH NOTICE SHALL BE MADE BY FIRST CLASS MAIL WITH A CERTIF-
 ICATE OF MAILING AND A COPY OF SUCH NOTICE ALSO SHALL BE PROVIDED TO THE
 DEPARTMENT.  WHEN  THE APPLICANT CONTACTS THE DEPARTMENT, THE DEPARTMENT
 SHALL INFORM THE APPLICANT OF THE BASIS FOR THE DENIAL OF THE TAX CLEAR-
 ANCE AND SHALL ALSO INFORM THE APPLICANT (I) THAT A TAX CLEARANCE DENIED
 DUE TO PAST-DUE TAX LIABILITIES MAY BE ISSUED ONCE  THE  TAXPAYER  FULLY
 SATISFIES  PAST-DUE TAX LIABILITIES OR MAKES PAYMENT ARRANGEMENTS SATIS-
 FACTORY TO THE COMMISSIONER; (II) THAT A TAX  CLEARANCE  DENIED  DUE  TO
 FAILURE  TO FILE TAX RETURNS MAY BE ISSUED ONCE THE APPLICANT HAS SATIS-
 FIED THE APPLICABLE RETURN FILING REQUIREMENTS; (III) THAT A TAX  CLEAR-
 ANCE  DENIED  FOR FAILURE TO REGISTER PURSUANT TO SECTION ELEVEN HUNDRED
 THIRTY-FOUR OF THIS CHAPTER MAY BE ISSUED ONCE THE APPLICANT HAS  REGIS-
 TERED PURSUANT TO SUCH SECTION; AND (IV) THE GROUNDS FOR CHALLENGING THE
 DENIAL OF A TAX CLEARANCE LISTED IN SUBDIVISION FIVE OF THIS SECTION.
   (5)  (A)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, AND EXCEPT AS
 SPECIFICALLY PROVIDED HEREIN, AN APPLICANT DENIED A TAX CLEARANCE  SHALL
 HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR SEEK ANY OTHER
 LEGAL  RECOURSE  AGAINST THE DEPARTMENT OR THE GOVERNMENT ENTITY RELATED
 TO THE DENIAL OF A TAX CLEARANCE BY THE DEPARTMENT.
   (B) AN APPLICANT SEEKING TO CHALLENGE THE DENIAL OF  A  TAX  CLEARANCE
 MUST  PROTEST  TO THE DEPARTMENT OR THE DIVISION OF TAX APPEALS NO LATER
 THAN SIXTY DAYS FROM THE DATE OF THE NOTIFICATION TO THE APPLICANT  THAT
 THE  TAX  CLEARANCE  WAS DENIED. AN APPLICANT MAY CHALLENGE A DEPARTMENT
 FINDING OF PAST-DUE TAX LIABILITIES ONLY ON THE  GROUNDS  THAT  (I)  THE
 INDIVIDUAL  OR  ENTITY DENIED THE TAX CLEARANCE IS NOT THE INDIVIDUAL OR
 ENTITY WITH THE PAST-DUE TAX LIABILITIES AT ISSUE; (II) THE PAST-DUE TAX
 LIABILITIES WERE  SATISFIED;  (III)  THE  APPLICANT'S  WAGES  ARE  BEING
 GARNISHED FOR THE PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL
 SUPPORT  PURSUANT  TO  AN  INCOME  EXECUTION  ISSUED PURSUANT TO SECTION

 S. 2009--A                         72                         A. 3009--A
 
 FIFTY-TWO HUNDRED FORTY-ONE OR FIFTY-TWO HUNDRED FORTY-TWO OF THE  CIVIL
 PRACTICE  LAW  AND  RULES OR ANOTHER STATE'S INCOME WITHHOLDING ORDER AS
 AUTHORIZED UNDER PART FIVE OF ARTICLE FIVE-B OF THE FAMILY COURT ACT, OR
 GARNISHED  BY THE DEPARTMENT FOR THE PAYMENT OF THE PAST-DUE TAX LIABIL-
 ITIES AT ISSUE; OR (IV) THE APPLICANT IS MAKING CHILD  SUPPORT  PAYMENTS
 OR  COMBINED  CHILD AND SPOUSAL SUPPORT PAYMENTS PURSUANT TO A SATISFAC-
 TORY PAYMENT ARRANGEMENT UNDER  SECTION  ONE  HUNDRED  ELEVEN-B  OF  THE
 SOCIAL  SERVICES  LAW WITH A SUPPORT COLLECTION UNIT OR OTHERWISE MAKING
 PERIODIC PAYMENTS IN ACCORDANCE WITH SECTION FOUR HUNDRED FORTY  OF  THE
 FAMILY  COURT  ACT.  AN  APPLICANT MAY CHALLENGE A DEPARTMENT FINDING OF
 FAILURE TO COMPLY WITH  TAX  RETURN  FILING  REQUIREMENTS  ONLY  ON  THE
 GROUNDS  THAT  ALL  REQUIRED TAX RETURNS HAVE BEEN FILED FOR EACH OF THE
 PAST THREE YEARS.
   (C) NOTHING IN THIS SUBDIVISION IS INTENDED  TO  LIMIT  ANY  APPLICANT
 FROM SEEKING RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION
 SIX  HUNDRED FIFTY-FOUR OF THIS CHAPTER, TO THE EXTENT THAT HE OR SHE IS
 ELIGIBLE PURSUANT TO THAT SECTION, OR  ESTABLISHING  TO  THE  DEPARTMENT
 THAT  THE  ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS BEEN STAYED
 BY THE FILING OF A PETITION PURSUANT TO  THE  BANKRUPTCY  CODE  OF  1978
 (TITLE ELEVEN OF THE UNITED STATES CODE).
   (6)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, THE DEPARTMENT MAY
 EXCHANGE WITH A GOVERNMENT ENTITY ANY DATA OR INFORMATION THAT,  IN  THE
 DISCRETION OF THE COMMISSIONER, IS NECESSARY FOR THE IMPLEMENTATION OF A
 TAX CLEARANCE REQUIREMENT. HOWEVER, NO GOVERNMENT ENTITY MAY RE-DISCLOSE
 THIS  INFORMATION  TO  ANY  OTHER  ENTITY  OR PERSON, OTHER THAN FOR THE
 PURPOSE OF INFORMING THE APPLICANT THAT A  REQUIRED  TAX  CLEARANCE  HAS
 BEEN DENIED, UNLESS OTHERWISE PERMITTED BY LAW.
   (7)  EXCEPT  AS  OTHERWISE PROVIDED IN THIS SECTION, THE ACTIVITIES TO
 COLLECT PAST-DUE TAX LIABILITIES UNDERTAKEN BY THE  DEPARTMENT  PURSUANT
 TO  THIS  SECTION  SHALL  NOT  IN  ANY WAY LIMIT, RESTRICT OR IMPAIR THE
 DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT OR ENFORCE TAX
 LIABILITIES UNDER ANY OTHER APPLICABLE PROVISION OF LAW.
   § 8. This act shall take effect immediately.
 
                                  PART X
 
   Section 1. Section 2 of part Q of chapter 59  of  the  laws  of  2013,
 amending  the  tax  law,  relating  to  serving an income execution with
 respect to individual tax debtors without filing a warrant,  as  amended
 by section 1 of part DD of chapter 59 of the laws of 2015, is amended to
 read as follows:
   §  2.  This act shall take effect immediately [and shall expire and be
 deemed repealed on and after April 1, 2017].
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 1, 2017.

                                  PART Y
 
   Section  1.  Subdivision 1-A of section 208 of the tax law, as amended
 by section 4 of part A of chapter 59 of the laws of 2014, is amended  to
 read as follows:
   1-A.  The  term  "New  York  S corporation" means, with respect to any
 taxable year, a corporation subject to tax under this article [for which
 an election is in effect pursuant  to  subsection  (a)  of  section  six
 hundred sixty of this chapter for such year] AND DESCRIBED IN SUBSECTION
 (B)  OF  SECTION  SIX  HUNDRED  SIXTY OF THIS CHAPTER, AND any such year

 S. 2009--A                         73                         A. 3009--A
 
 shall be denominated a "New York S year"[, and such  election  shall  be
 denominated  a "New York S election"]. The term "New York C corporation"
 means, with respect to any taxable year, a corporation  subject  to  tax
 under  this  article which is not a New York S corporation, and any such
 year shall be denominated a "New York C  year".  The  term  "termination
 year"  means  any  taxable year of a corporation during which the CORPO-
 RATION'S STATUS AS A New York S [election] CORPORATION terminates  on  a
 day  other  than  the first day of such year. The portion of the taxable
 year ending before the first day for which such termination is effective
 shall be denominated the "S short year", and the portion  of  such  year
 beginning on such first day shall be denominated the "C short year". The
 term  "New  York S termination year" means any termination year which is
 [not] also an S termination year for federal purposes.
   § 2. Subdivision 1-B, paragraph (ii)  of  the  opening  paragraph  and
 paragraph  (k)  of  subdivision  9  of  section  208  of the tax law are
 REPEALED.
   § 3. Subdivision 1 of section 210-A of the  tax  law,  as  amended  by
 section  21  of  part T of chapter 59 of the laws of 2015, is amended to
 read as follows:
   1. General. Business income and capital shall be  apportioned  to  the
 state  by  the apportionment factor determined pursuant to this section.
 The apportionment factor is a fraction,  determined  by  including  only
 those receipts, net income, net gains, and other items described in this
 section  that are included in the computation of the taxpayer's business
 income (determined  without  regard  to  the  modification  provided  in
 subparagraph  nineteen  of  paragraph (a) of subdivision nine of section
 two hundred eight of this article) for the taxable year.  The  numerator
 of  the  apportionment  fraction  shall  be  equal to the sum of all the
 amounts required to  be  included  in  the  numerator  pursuant  to  the
 provisions  of  this  section  and  the denominator of the apportionment
 fraction shall be equal to the sum of all the  amounts  required  to  be
 included  in the denominator pursuant to the provisions of this section.
 FOR A NEW YORK S CORPORATION, THE RECEIPTS INCLUDED IN THE APPORTIONMENT
 FRACTION ARE THOSE RECEIPTS, NET INCOME (NOT LESS THAN ZERO), NET  GAINS
 (NOT LESS THAN ZERO), AND OTHER ITEMS DESCRIBED IN THIS SECTION THAT ARE
 INCLUDED  IN  THE NEW YORK S CORPORATION'S NONSEPARATELY COMPUTED INCOME
 AND LOSS OR IN THE NEW YORK S CORPORATION'S SEPARATELY STATED  ITEMS  OF
 INCOME  AND LOSS, DETERMINED PURSUANT TO SUBDIVISION (A) OF SECTION 1366
 OF THE INTERNAL REVENUE CODE.
   § 4. Section 660 of the tax law, as amended by chapter 606 of the laws
 of 1984, subsections (a) and (h) as amended by section 73 of part  A  of
 chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as amended
 by section 51 of part A of chapter 389 of the laws of 1997, paragraphs 4
 and  5  as  added  and  paragraph  6  of subsection (b) as renumbered by
 section 52 of part A of chapter 389 of the laws of 1997, subsection  (d)
 as  added by chapter 760 of the laws of 1992, subsections (e) and (f) as
 added and subsection (g) as relettered by section 53 of part A of  chap-
 ter  389  of  the  laws of 1997, subsection (i) as added by section 1 of
 part L of chapter 60 of the laws of 2007, and paragraph 1 of  subsection
 (i)  as  amended  by  section  39 of part T of chapter 59 of the laws of
 2015, is amended to read as follows:
   § 660. [Election by shareholders of S corporations.] TAX TREATMENT  OF
 FEDERAL  S  CORPORATIONS. (a) [Election.] If a corporation is an [eligi-
 ble] S corporation DESCRIBED IN SUBSECTION  (B)  OF  THIS  SECTION,  the
 shareholders  of  the  corporation [may elect in the manner set forth in
 subsection (b) of this section to]  SHALL  take  into  account,  to  the

 S. 2009--A                         74                         A. 3009--A
 
 extent  provided  for  in  this  article (or in article thirteen of this
 chapter, in the case of a shareholder which is  a  taxpayer  under  such
 article),  the  S  corporation  items  of  income,  loss,  deduction and
 reductions for taxes described in paragraphs two and three of subsection
 (f)  of  section thirteen hundred sixty-six of the internal revenue code
 which are taken into account for federal income  tax  purposes  for  the
 taxable  year.  [No  election  under  this subsection shall be effective
 unless all shareholders of the corporation have so elected. An eligible]
   (B) A NEW YORK S corporation is (i) [an S] A corporation THAT HAS MADE
 A VALID ELECTION TO BE AN S CORPORATION FOR FEDERAL INCOME TAX  PURPOSES
 PURSUANT  TO  SECTION 1362 OF THE INTERNAL REVENUE CODE which is subject
 to tax under article nine-A of this chapter, or (ii)  [an  S]  A  corpo-
 ration THAT HAS MADE A VALID ELECTION TO BE AN S CORPORATION FOR FEDERAL
 INCOME  TAX  PURPOSES  PURSUANT  TO SECTION 1362 OF THE INTERNAL REVENUE
 CODE which is the parent of  a  qualified  subchapter  S  subsidiary  AS
 DEFINED  IN  SUBPARAGRAPH  (B)  OF  PARAGRAPH THREE OF SUBSECTION (B) OF
 SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE  subject
 to  tax  under  article  nine-A[,  where the shareholders of such parent
 corporation are entitled to make the election under this  subsection  by
 reason  of  subparagraph  three  of paragraph (k) of subdivision nine of
 section two hundred eight] of this chapter.
   [(b) Requirements of election. An election  under  subsection  (a)  of
 this  section  shall  be made on such form and in such manner as the tax
 commission may prescribe by regulation or instruction.
   (1) When made. An election under subsection (a) of this section may be
 made at any time during the preceding taxable year of the corporation or
 at any time during the taxable year of the corporation and on or  before
 the fifteenth day of the third month of such taxable year.
   (2) Certain elections made during first two and one-half months. If an
 election made under subsection (a) of this section is made for any taxa-
 ble  year  of  the  corporation  during  such  year and on or before the
 fifteenth day of the third month of such year, such  election  shall  be
 treated as made for the following taxable year if
   (A)  on  one or more days in such taxable year before the day on which
 the election was made the corporation did not meet the  requirements  of
 subsection  (b)  of  section  thirteen hundred sixty-one of the internal
 revenue code or
   (B) one or more of the shareholders who held stock in the  corporation
 during  such  taxable  year  and  before  the  election was made did not
 consent to the election.
   (3) Elections made after first two and one-half months. If an election
 under subsection (a) of this section is made for any taxable year of the
 corporation and such election is made after the  fifteenth  day  of  the
 third  month  of such taxable year and on or before the fifteenth day of
 the third month of the following taxable year, such  election  shall  be
 treated as made for the following taxable year.
   (4)  Taxable years of two and one-half months or less. For purposes of
 this subsection, an election for a taxable year made not later than  two
 months and fifteen days after the first day of the taxable year shall be
 treated as timely made during such year.
   (5)  Authority  to  treat  late  elections, etc., as timely. If (A) an
 election under subsection (a) of this section is made  for  any  taxable
 year  (determined  without regard to paragraph three of this subsection)
 after the date prescribed by this subsection for  making  such  election
 for  such  taxable  year, or if no such election is made for any taxable
 year, and

 S. 2009--A                         75                         A. 3009--A

   (B) the commissioner determines that there was  reasonable  cause  for
 failure to timely make such election, then
   (C)  the  commissioner  may  treat such an election as timely made for
 such taxable year (and paragraph three  of  this  subsection  shall  not
 apply).
   (6)  Years  for  which  effective. An election under subsection (a) of
 this section shall be effective for the taxable year of the  corporation
 for  which it is made and for all succeeding taxable years of the corpo-
 ration until such election is terminated under subsection  (c)  of  this
 section.]
   (c)  Termination. An [election under subsection (a) of this section] S
 CORPORATION shall cease to be [effective
   (1)] A NEW YORK S CORPORATION on the day an election to be an S corpo-
 ration ceases to be effective for federal income tax  purposes  pursuant
 to  subsection (d) of section thirteen hundred sixty-two of the internal
 revenue code[, or
   (2) if shareholders holding more than one-half of the shares of  stock
 of  the  corporation  on  the day on which the revocation is made revoke
 such election in the manner the tax commission may  prescribe  by  regu-
 lation,
   (A)  on  the  first day of the taxable year of the corporation, if the
 revocation is made during  such  taxable  year  and  on  or  before  the
 fifteenth day of the third month thereof, or
   (B) on the first day of the following taxable year of the corporation,
 if  the  revocation  is  made  during  the  taxable  year  but after the
 fifteenth day of the third month thereof, or
   (C) on and after the date so specified, if the revocation specifies  a
 date for revocation which is on or after the day on which the revocation
 is made, or
   (3)  if any person who was not a shareholder of the corporation on the
 day on which the election is made becomes a shareholder  in  the  corpo-
 ration  and  affirmatively  refuses  to  consent to such election in the
 manner the tax commission may prescribe by regulation, on the  day  such
 person becomes a shareholder].
   (d)  New  York  S termination year. In the case of a New York S termi-
 nation year, the amount of any item of S corporation  income,  loss  and
 deduction  and  reductions for taxes (as described in paragraphs two and
 three of subsection (f) of section thirteen  hundred  sixty-six  of  the
 internal  revenue code) required to be taken account of under this arti-
 cle shall be adjusted in the same manner that the S corporation's  items
 which  are  included  in the shareholder's federal adjusted gross income
 are adjusted under subsection (s) of section six hundred twelve.
   (e)  [Inadvertent  invalid  elections.  If  (1)  an   election   under
 subsection  (a)  of  this section was not effective for the taxable year
 for which made (determined without regard to paragraph two of subsection
 (b) of this section) by  reason  of  a  failure  to  obtain  shareholder
 consents,
   (2)  the  commissioner  determines that the circumstances resulting in
 such ineffectiveness were inadvertent,
   (3) no later than a reasonable period of time after discovery  of  the
 circumstances  resulting  in  such  ineffectiveness, steps were taken to
 acquire the required shareholder consents, and
   (4) the corporation, and each person who  was  a  shareholder  in  the
 corporation  at  any  time  during the period specified pursuant to this
 subsection, agrees to make such adjustments (consistent with the  treat-

 S. 2009--A                         76                         A. 3009--A

 ment  of the corporation as a New York S corporation) as may be required
 by the commissioner with respect to such period,
   (5) then, notwithstanding the circumstances resulting in such ineffec-
 tiveness,  such corporation shall be treated as a New York S corporation
 during the period specified by the commissioner.
   (f) Validated federal elections. If (1) an election  under  subsection
 (a)  of  this  section  was made for a taxable year or years of a corpo-
 ration, which years occur with or within the period for which the feder-
 al S election of such corporation has been  validated  pursuant  to  the
 provisions  of  subsection  (f) of section thirteen hundred sixty-two of
 the internal revenue code, and
   (2) the corporation, and each person who  was  a  shareholder  in  the
 corporation at any time during such taxable year or years agrees to make
 such  adjustments (consistent with the treatment of the corporation as a
 New York S corporation) as may be  required  by  the  commissioner  with
 respect to such year or years,
   (3) then such corporation shall be treated as a New York S corporation
 during such year or years.
   (g)  Transitional  rule.  Any  election made under this section (as in
 effect for  taxable  years  beginning  before  January  first,  nineteen
 hundred  eighty-three)  shall  be  treated  as  an  election  made under
 subsection (a) of this section.
   (h)] QUALIFIED SUBCHAPTER S SUBSIDIARIES.  IF  AN  S  CORPORATION  HAS
 ELECTED TO TREAT ITS WHOLLY OWNED SUBSIDIARY AS A QUALIFIED SUBCHAPTER S
 SUBSIDIARY  FOR  FEDERAL  INCOME  TAX  PURPOSES UNDER PARAGRAPH THREE OF
 SUBSECTION (B) OF SECTION  1361  OF  THE  INTERNAL  REVENUE  CODE,  SUCH
 ELECTION SHALL BE APPLICABLE FOR NEW YORK STATE TAX PURPOSES AND
   (1)  THE  ASSETS,  LIABILITIES, INCOME, DEDUCTIONS, PROPERTY, PAYROLL,
 RECEIPTS, CAPITAL, CREDITS, AND ALL OTHER TAX ATTRIBUTES AND ELEMENTS OF
 ECONOMIC ACTIVITY OF THE SUBSIDIARY SHALL BE DEEMED TO BE THOSE  OF  THE
 PARENT CORPORATION,
   (2)  TRANSACTIONS  BETWEEN  THE PARENT CORPORATION AND THE SUBSIDIARY,
 INCLUDING THE PAYMENT OF INTEREST AND DIVIDENDS, SHALL NOT BE TAKEN INTO
 ACCOUNT, AND
   (3) GENERAL EXECUTIVE OFFICERS OF THE SUBSIDIARY SHALL BE DEEMED TO BE
 GENERAL EXECUTIVE OFFICERS OF THE PARENT CORPORATION.
   (F) Cross reference.  For definitions relating to S corporations,  see
 subdivision one-A of section two hundred eight of this chapter.
   [(i)  Mandated  New  York S corporation election.  (1) Notwithstanding
 the provisions in subsection (a) of this section,  in  the  case  of  an
 eligible  S  corporation  for which the election under subsection (a) of
 this section is not in effect for the current taxable year,  the  share-
 holders  of  an  eligible  S  corporation  are  deemed to have made that
 election effective for the eligible S corporation's entire current taxa-
 ble year, if the eligible S  corporation's  investment  income  for  the
 current  taxable  year  is  more than fifty percent of its federal gross
 income for such year. In determining whether an eligible  S  corporation
 is deemed to have made that election, the income of a qualified subchap-
 ter  S  subsidiary owned directly or indirectly by the eligible S corpo-
 ration shall be included with the income of the eligible S corporation.
   (2) For the purposes of this subsection, the term "eligible  S  corpo-
 ration" has the same definition as in subsection (a) of this section.
   (3)  For the purposes of this subsection, the term "investment income"
 means the sum of an eligible S corporation's gross income from interest,
 dividends, royalties, annuities, rents and gains derived  from  dealings
 in  property,  including  the  corporation's  share of such items from a

 S. 2009--A                         77                         A. 3009--A

 partnership, estate or trust, to the extent such items would be includa-
 ble in federal gross income for the taxable year.
   (4)  Estimated  tax  payments.  When  making  estimated  tax  payments
 required to be made under this chapter in  the  current  tax  year,  the
 eligible  S  corporation and its shareholders may rely on the eligible S
 corporation's filing status for the prior year. If the eligible S corpo-
 ration's filing status changes from the prior tax year  the  corporation
 or  the  shareholders, as the case may be, which made the payments shall
 be entitled to a refund of such estimated tax payments.  No additions to
 tax with respect to any required declarations or payments  of  estimated
 tax  imposed  under  this chapter shall be imposed on the corporation or
 shareholders, whichever is the taxpayer for the current taxable year, if
 the corporation or the shareholders file such declarations and make such
 estimated tax payments by January fifteenth of  the  following  calendar
 year,  regardless  of whether the taxpayer's tax year is a calendar or a
 fiscal year.]
   § 5. Subparagraph (A) of paragraph 18 of subsection (b) of section 612
 of the tax law, as amended by chapter 28 of the laws of 1987, is amended
 to read as follows:
   (A) [where the election provided for in subsection (a) of section  six
 hundred  sixty  is in effect with respect to such corporation] THAT IS A
 NEW YORK S CORPORATION, an amount equal to his pro  rata  share  of  the
 corporation's reductions for taxes described in paragraphs two and three
 of  subsection (f) of section thirteen hundred sixty-six of the internal
 revenue code, and
   § 6. Paragraph 19 of subsection (b) of section 612 of the tax  law  is
 REPEALED.
   §  7. Paragraphs 20 and 21 of subsection (b) of section 612 of the tax
 law, paragraph 20 as amended by chapter 606 of  the  laws  of  1984  and
 paragraph  21  as  amended  by section 70 of part A of chapter 59 of the
 laws of 2014, are amended to read as follows:
   (20) S corporation distributions to the extent not included in federal
 gross income for the taxable year because of the application of  section
 thirteen hundred sixty-eight, subsection (e) of section thirteen hundred
 seventy-one  or  subsection (c) of section thirteen hundred seventy-nine
 of the internal revenue  code  which  represent  income  not  previously
 subject  to  tax under this article because the election provided for in
 subsection (a) of section six hundred sixty IN EFFECT FOR TAXABLE  YEARS
 BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN had not been made.
 Any  such  distribution treated in the manner described in paragraph two
 of subsection (b) of section thirteen hundred sixty-eight of the  inter-
 nal  revenue  code  for  federal income tax purposes shall be treated as
 ordinary income for purposes of this article.
   (21) In relation to the disposition of  stock  or  indebtedness  of  a
 corporation  which  elected  under  subchapter  s  of chapter one of the
 internal revenue code for any taxable year of  such  corporation  begin-
 ning,  in the case of a corporation taxable under article nine-A of this
 chapter, after December thirty-first, nineteen hundred eighty AND BEFORE
 JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amount required to be added to
 federal adjusted  gross  income  pursuant  to  subsection  (n)  of  this
 section.
   §  8. Paragraph 21 of subsection (c) of section 612 of the tax law, as
 amended by section 70 of part A of chapter 59 of the laws  of  2014,  is
 amended to read as follows:
   (21)  In  relation  to  the  disposition of stock or indebtedness of a
 corporation which elected under subchapter  s  of  chapter  one  of  the

 S. 2009--A                         78                         A. 3009--A
 
 internal  revenue  code  for any taxable year of such corporation begin-
 ning, in the case of a corporation taxable under article nine-A of  this
 chapter, after December thirty-first, nineteen hundred eighty AND BEFORE
 JANUARY  FIRST,  TWO  THOUSAND  EIGHTEEN,  the  amounts  required  to be
 subtracted from federal adjusted gross income pursuant to subsection (n)
 of this section.
   § 9. Paragraph 22 of subsection (c) of section 612 of the tax  law  is
 REPEALED.
   §  10.  Subsection  (e)  of  section 612 of the tax law, as amended by
 chapter 166 of the laws of 1991 and paragraph 3 as added by chapter  760
 of the laws of 1992, is amended to read as follows:
   (e)  Modifications of partners and shareholders of S corporations. (1)
 Partners and shareholders of S corporations [which are not  New  York  C
 corporations].  The  amounts  of modifications required to be made under
 this section by a partner or  by  a  shareholder  of  an  S  corporation
 [(other than an S corporation which is a New York C corporation)], which
 relate  to  partnership  or S corporation items of income, gain, loss or
 deduction shall be determined under section six hundred  seventeen  and,
 in the case of a partner of a partnership doing an insurance business as
 a  member  of  the  New York insurance exchange described in section six
 thousand two hundred one of the insurance law, under section six hundred
 seventeen-a of this article.
   (2) [Shareholders of S corporations which are New York C corporations.
 In the case of a shareholder of an S corporation which is a New  York  C
 corporation,  the  modifications  under this section which relate to the
 corporation's items of income,  loss  and  deduction  shall  not  apply,
 except  for  the  modifications  provided  under  paragraph  nineteen of
 subsection (b) and  paragraph  twenty-two  of  subsection  (c)  of  this
 section.
   (3)]  New  York S termination year. In the case of a New York S termi-
 nation year, the  amounts  of  the  modifications  required  under  this
 section  which  relate  to  the  S  corporation's items of income, loss,
 deduction and reductions for taxes (as described in paragraphs  two  and
 three  of  subsection  (f)  of section thirteen hundred sixty-six of the
 internal revenue code) shall be adjusted in the same manner that  the  S
 corporation's  items  are  adjusted under subsection (s) of [section six
 hundred twelve] THIS SECTION.
   § 11. Subsection (n) of section 612 of the  tax  law,  as  amended  by
 section  61  of part A of chapter 389 of the laws of 1997, is amended to
 read as follows:
   (n) Where gain or loss is recognized for federal income  tax  purposes
 upon  the disposition of stock or indebtedness of a corporation electing
 under subchapter s of chapter one of the internal revenue code
   (1) There shall be added to federal adjusted gross income  the  amount
 of increase in basis with respect to such stock or indebtedness pursuant
 to  subsection (a) of section thirteen hundred seventy-six of the inter-
 nal revenue code as such section was in effect for taxable years  begin-
 ning  before  January  first, nineteen hundred eighty-three and subpara-
 graphs (A) and (B)  of  paragraph  one  of  subsection  (a)  of  section
 thirteen  hundred sixty-seven of such code, for each taxable year of the
 corporation beginning, in the case of a corporation taxable under  arti-
 cle  nine-A  of  this  chapter,  after  December  thirty-first, nineteen
 hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN,  and  in
 the case of a corporation taxable under article thirty-two of this chap-
 ter, after December thirty-first, nineteen hundred ninety-six AND BEFORE
 JANUARY FIRST, TWO THOUSAND FIFTEEN, for which the election provided for

 S. 2009--A                         79                         A. 3009--A
 
 in  subsection  (a) of section six hundred sixty of this article was not
 in effect, and
   (2) There shall be subtracted from federal adjusted gross income
   (A)  the  amount  of  reduction in basis with respect to such stock or
 indebtedness pursuant to subsection  (b)  of  section  thirteen  hundred
 seventy-six  of  the internal revenue code as such section was in effect
 for taxable years  beginning  before  January  first,  nineteen  hundred
 eighty-three   and  subparagraphs  (B)  and  (C)  of  paragraph  two  of
 subsection (a) of section thirteen hundred sixty-seven of such code, for
 each taxable year of the corporation beginning, in the case of a  corpo-
 ration  taxable  under  article  nine-A  of this chapter, after December
 thirty-first, nineteen hundred eighty  AND  BEFORE  JANUARY  FIRST,  TWO
 THOUSAND  EIGHTEEN, and in the case of a corporation taxable under arti-
 cle thirty-two of this chapter, after  December  thirty-first,  nineteen
 hundred  ninety-six  AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, for
 which the election provided for in subsection (a) of section six hundred
 sixty of this article was not in effect and
   (B) the amount of any  modifications  to  federal  gross  income  with
 respect  to such stock pursuant to paragraph twenty of subsection (b) of
 this section.
   § 12. Subparagraph (E-1) of paragraph 1 of subsection (b)  of  section
 631 of the tax law, as added by section 3 of part C of chapter 57 of the
 laws of 2010, is amended to read as follows:
   (E-1)  in  the  case  of  [an]  A NEW YORK S corporation [for which an
 election is in effect pursuant to subsection (a) of section six  hundred
 sixty  of  this article] that terminates its taxable status in New York,
 any income or gain  recognized  on  the  receipt  of  payments  from  an
 installment  sale  contract  entered  into  when  the  S corporation was
 subject to tax in New York, allocated in a manner  consistent  with  the
 applicable  methods  and  rules  for  allocation under article nine-A or
 thirty-two of this chapter PRIOR TO ITS REPEAL, in the year that  the  S
 corporation sold its assets.
   § 13. The section heading and paragraph 2 of subsection (a) of section
 632 of the tax law, the section heading as amended by chapter 606 of the
 laws  of 1984, paragraph 2 of subsection (a) as amended by section 71 of
 part A of chapter 59 of the laws of 2014 and such section as  renumbered
 by chapter 28 of the laws of 1987, are amended to read as follows:
   Nonresident partners and [electing] shareholders of S corporations.
   (2) In determining New York source income of a nonresident shareholder
 of  [an]  A  NEW  YORK S corporation [where the election provided for in
 subsection (a) of section six  hundred  sixty  of  this  article  is  in
 effect],  there  shall  be  included  only  the  portion derived from or
 connected with New York sources of such shareholder's pro rata share  of
 items  of  S  corporation  income,  loss and deduction entering into his
 federal  adjusted  gross  income,  increased  by  reductions  for  taxes
 described in paragraphs two and three of subsection (f) of section thir-
 teen  hundred  sixty-six  of  the internal revenue code, as such portion
 shall be determined under regulations  of  the  commissioner  consistent
 with  the  applicable  methods  and  rules  for allocation under article
 nine-A of this chapter, regardless  of  whether  or  not  such  item  or
 reduction  is included in entire net income under article nine-A for the
 tax year. If a nonresident is a shareholder in [an] A NEW YORK S  corpo-
 ration [where the election provided for in subsection (a) of section six
 hundred  sixty of this article is in effect, and the S corporation] THAT
 has distributed an installment obligation under section 453(h)(1)(A)  of
 the  Internal  Revenue  Code, then any gain recognized on the receipt of

 S. 2009--A                         80                         A. 3009--A
 
 payments from the installment obligation for federal income tax purposes
 will be treated as New York source income allocated in a manner consist-
 ent with the applicable methods and rules for allocation  under  article
 nine-A  of  this chapter in the year that the assets were sold. In addi-
 tion, if the shareholders of the NEW YORK S  corporation  have  made  an
 election under section 338(h)(10) of the Internal Revenue Code, then any
 gain recognized on the deemed asset sale for federal income tax purposes
 will be treated as New York source income allocated in a manner consist-
 ent  with  the applicable methods and rules for allocation under article
 nine-A of this chapter in the year that the shareholder made the section
 338(h)(10) election. For purposes of a section 338(h)(10) election, when
 a nonresident shareholder exchanges his or her S  corporation  stock  as
 part  of  the  deemed  liquidation, any gain or loss recognized shall be
 treated as the disposition of an intangible asset and will not  increase
 or  offset  any gain recognized on the deemed assets sale as a result of
 the section 338(h)(10) election.
   § 14. Subparagraph (A) and the opening paragraph of  subparagraph  (B)
 of  paragraph  5  of  subdivision  (a) of section 292 of the tax law, as
 added by section 48 of part A of chapter 389 of the laws  of  1997,  are
 amended to read as follows:
   (A) In the case of a shareholder of an S corporation,
   (i)  [where the election provided for in subsection (a) of section six
 hundred sixty of this chapter is in effect with respect to  such  corpo-
 ration] THAT IS A NEW YORK S CORPORATION, there shall be added to feder-
 al  unrelated  business taxable income an amount equal to the sharehold-
 er's pro rata share of the corporation's reductions for taxes  described
 in  paragraphs  two  and  three  of  subsection  (f) of section thirteen
 hundred sixty-six of the internal revenue code, and
   (ii) [where such election has not  been  made  with  respect  to  such
 corporation,  there  shall be subtracted from federal unrelated business
 taxable income any items of income of the corporation included  therein,
 and  there  shall  be added to federal unrelated business taxable income
 any items of loss or deduction included therein, and
   (iii)] in the case of a New York S termination year, the amount of any
 such items of S corporation income, loss, deduction and  reductions  for
 taxes shall be adjusted in the manner provided in paragraph two or three
 of subsection (s) of section six hundred twelve of this chapter.
   In  the  case  of a shareholder of a corporation which was, for any of
 its taxable years beginning  after  nineteen  hundred  ninety-seven  AND
 BEFORE  TWO  THOUSAND EIGHTEEN, a federal S corporation but a New York C
 corporation:
   § 15. Transition  rules.  Any  prior  net  operating  loss  conversion
 subtraction  pool  and  net  operating  loss carryforward that otherwise
 would have been allowed under subparagraph (viii) of  paragraph  (a)  of
 subdivision  1  of  section  210 of the tax law and subparagraph (ix) of
 paragraph (a) of subdivision 1 of section 210 of the  tax  law,  respec-
 tively,  for  the 2018 or subsequent taxable years, to any taxpayer that
 was a New York C corporation for the 2017 taxable year,  and  becomes  a
 New  York  S  corporation  for  the 2018 taxable year as a result of the
 amendments made by this act, shall be held in abeyance and be  available
 to such taxpayer if its election to be a federal S corporation is termi-
 nated.  Further, any credit carryforwards that otherwise would have been
 allowed to such a taxpayer under section 210-B of the tax  law  for  the
 2018 or subsequent taxable years shall be held in abeyance and be avail-
 able  to  such taxpayer if its election to be a federal S corporation is
 terminated. However, the taxpayer's taxable years as a New York S corpo-

 S. 2009--A                         81                         A. 3009--A

 ration shall be counted for purposes of computing any time period appli-
 cable to the allowance  of  the  prior  net  operating  loss  conversion
 subtraction,  the  net  operating loss deduction or any credit carryfor-
 ward.
   §  16. This act shall take effect immediately and shall apply to taxa-
 ble years beginning on or after January 1, 2018.
 
                                  PART Z
 
   Section 1. Clause 1 of subparagraph (A) of paragraph 1  of  subsection
 (b)  of section 631 of the tax law, as added by section 1 of part F-1 of
 chapter 57 of the laws of 2009, is amended to read as follows:
   (1) For purposes of this subparagraph, the term "real property located
 in this state" includes an interest in a partnership, limited  liability
 corporation,  S  corporation,  or non-publicly traded C corporation with
 one hundred or fewer shareholders (hereinafter the "entity")  that  owns
 real  property  that is located in New York [and has a fair market value
 that] OR OWNS SHARES OF STOCK IN A COOPERATIVE HOUSING CORPORATION WHERE
 THE COOPERATIVE UNITS RELATING TO THE SHARES ARE LOCATED  IN  NEW  YORK;
 PROVIDED,  THAT THE SUM OF THE FAIR MARKET VALUES OF SUCH REAL PROPERTY,
 COOPERATIVE SHARES, AND RELATED  COOPERATIVE  UNITS  equals  or  exceeds
 fifty  percent  of  all  the assets of the entity on the date of sale or
 exchange of the taxpayer's interest in the entity.   Only  those  assets
 that the entity owned for at least two years before the date of the sale
 or  exchange  of the taxpayer's interest in the entity are to be used in
 determining the fair market value of all the assets of the entity on the
 date of sale or exchange. The gain or loss derived from New York sources
 from the taxpayer's sale or exchange of an interest in an entity that is
 subject to the provisions of this subparagraph is the total gain or loss
 for federal income tax purposes from that sale or exchange multiplied by
 a fraction, the numerator of which is the fair market value of the  real
 property,  AND  THE  COOPERATIVE  HOUSING  CORPORATION STOCK AND RELATED
 COOPERATIVE UNITS located in New York on the date of  sale  or  exchange
 and  the denominator of which is the fair market value of all the assets
 of the entity on the date of sale or exchange.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2017.
 
                                  PART AA

   Section 1. Paragraph 1 of subsection (a) of section  632  of  the  tax
 law, as amended by chapter 28 of the laws of 1987, is amended to read as
 follows:
   (1)  In determining New York source income of a nonresident partner of
 any partnership, there shall be included only the portion  derived  from
 or  connected with New York sources of such partner's distributive share
 of items of partnership income, gain, loss and deduction  entering  into
 his  federal  adjusted gross income, as such portion shall be determined
 under regulations of the tax commission consistent with  the  applicable
 rules  of section six hundred thirty-one OF THIS PART.  IF A NONRESIDENT
 IS A PARTNER IN A PARTNERSHIP WHERE A SALE OR TRANSFER OF THE MEMBERSHIP
 INTEREST OF THE PARTNER IS SUBJECT TO THE  PROVISIONS  OF  SECTION  ONE-
 THOUSAND SIXTY OF THE INTERNAL REVENUE CODE, THEN ANY GAIN RECOGNIZED ON
 THE SALE OR TRANSFER FOR FEDERAL INCOME TAX PURPOSES SHALL BE TREATED AS
 NEW  YORK SOURCE INCOME ALLOCATED IN A MANNER CONSISTENT WITH THE APPLI-

 S. 2009--A                         82                         A. 3009--A
 
 CABLE METHODS AND RULES FOR ALLOCATION UNDER THIS ARTICLE  IN  THE  YEAR
 THAT THE ASSETS WERE SOLD OR TRANSFERRED.
   § 2. This act shall take effect immediately
 
                                  PART BB
 
   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 OF THIS ARTICLE 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, OR BOOTH, AN  INTER-
 NET  WEBSITE,  CATALOG,  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 OWNER-
 SHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT,  IN
 THE  OTHER,  OR  WHERE  AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT,
 WHETHER DIRECT OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS  BY  ANOTHER
 PERSON  OR  BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH
 RESPECT TO EACH OTHER. NOTWITHSTANDING ANYTHING  IN  THIS  PARAGRAPH,  A
 PERSON WHO FACILITATES 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 FIFTEEN.
   (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

 S. 2009--A                         83                         A. 3009--A
 
 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.
   § 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  SUBDIVISION;  AND (II) SHALL KEEP SUCH RECORDS AND
 INFORMATION AND COOPERATE WITH THE COMMISSIONER  TO  ENSURE  THE  PROPER
 COLLECTION  AND  REMITTANCE  OF  TAX IMPOSED COLLECTED OR REQUIRED TO BE
 COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER.
   (2) A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY  TO
 COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY
 SUBJECT  TO  TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF
 THIS ARTICLE AND SHALL NOT INCLUDE THE RECEIPTS FROM SUCH  SALE  IN  ITS
 TAXABLE  RECEIPTS  FOR  PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF
 THIS PART IF, IN REGARD TO SUCH SALE: (I)  THE  MARKETPLACE  SELLER  CAN
 SHOW  THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM
 SUCH SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED  CERTIFICATE
 OF  COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT
 THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT  SALES  TAX  AND  WILL
 COLLECT  SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY
 THE MARKETPLACE SELLER FACILITATED BY THE 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 THE MARKET-
 PLACE PROVIDER FACILITATES SALES OF  TANGIBLE  PERSONAL  PROPERTY,  WITH
 RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY

 S. 2009--A                         84                         A. 3009--A

 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  MARKETPLACE  PROVIDER  ARE AFFILIATED WITHIN THE MEANING OF
 PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE  OF  THIS
 ARTICLE.
   § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as
 amended  by  section  46 of part K of chapter 61 of the laws of 2011, is
 amended to read as follows:
   (4) The return of a vendor of tangible personal property  or  services
 shall  show  such vendor's receipts from sales and the number of gallons
 of any motor fuel or diesel motor fuel sold and also the aggregate value
 of tangible personal property and services and number of gallons of such
 fuels sold by the vendor, the use of which is subject to tax under  this
 article,  and  the  amount  of  tax  payable  thereon  pursuant  to  the
 provisions of section eleven hundred  thirty-seven  of  this  part.  The
 return  of  a recipient of amusement charges shall show all such charges
 and the amount of tax thereon, and the return of an operator required to
 collect tax on rents shall show all rents received or  charged  and  the
 amount of tax thereon.  THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE
 THE  RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A
 MARKETPLACE PROVIDER IF, IN REGARD TO SUCH  SALE:  (A)  THE  MARKETPLACE
 SELLER  HAS  TIMELY  RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF-
 ICATE OF COLLECTION FROM THE MARKETPLACE  PROVIDER  OR  THE  MARKETPLACE
 PROVIDER  HAS  INCLUDED  A PROVISION APPROVED BY THE COMMISSIONER IN THE
 PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE  PROVIDER  AND  THE
 MARKETPLACE  SELLER  AS  DESCRIBED  IN SUBDIVISION (1) OF SECTION ELEVEN
 HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE
 MARKETPLACE SELLER TO  THE  MARKETPLACE  PROVIDER  ABOUT  SUCH  TANGIBLE
 PERSONAL PROPERTY IS ACCURATE.
   §  6.  Section 1142 of the tax law is amended by adding a new subdivi-
 sion 15 to read as follows:
   15. TO PUBLISH A LIST  ON  THE  DEPARTMENT'S  WEBSITE  OF  MARKETPLACE
 PROVIDERS WHOSE CERTIFICATE OF AUTHORITY HAS BEEN REVOKED AND, IF NECES-
 SARY  TO  PROTECT  SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHERWISE
 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 (1) OF SECTION ELEVEN HUNDRED THIRTY-TWO
 OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS NOT ON SUCH LIST AT
 THE COMMENCEMENT OF THE CALENDAR YEAR IN WHICH THE SALE WAS MADE.
   §  7. This act shall take effect September 1, 2017, and shall apply to
 sales made on or after that date.
 
                                  PART CC

 S. 2009--A                         85                         A. 3009--A
 
   Section 1. Paragraph 4 of subdivision (b) of section 1101 of  the  tax
 law is amended by adding a new subparagraph (v) to read as follows:
   (V)  NOTWITHSTANDING  THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARA-
 GRAPH, THE FOLLOWING SALES OF TANGIBLE PERSONAL PROPERTY SHALL BE DEEMED
 TO BE RETAIL SALES: (A) A SALE TO  A  SINGLE  MEMBER  LIMITED  LIABILITY
 COMPANY  OR  A  SUBSIDIARY FOR RESALE TO ITS MEMBER OR OWNER, WHERE SUCH
 SINGLE MEMBER LIMITED LIABILITY COMPANY OR SUBSIDIARY IS DISREGARDED  AS
 AN ENTITY SEPARATE FROM ITS OWNER FOR FEDERAL INCOME TAX PURPOSES (WITH-
 OUT  REFERENCE TO ANY SPECIAL RULES RELATED TO THE IMPOSITION OF CERTAIN
 FEDERAL TAXES), INCLUDING BUT NOT  LIMITED  TO  CERTAIN  EMPLOYMENT  AND
 EXCISE  TAXES;  (B) A SALE TO A PARTNERSHIP FOR RESALE TO ONE OR MORE OF
 ITS PARTNERS; OR (C) A SALE TO A TRUSTEE OF A TRUST FOR RESALE TO ONE OR
 MORE BENEFICIARIES OF SUCH TRUST.
   § 2. Subdivision 2 of section 1118 of  the  tax  law,  as  amended  by
 section  4  of subpart B of part S of chapter 57 of the laws of 2010, is
 amended to read as follows:
   (2)(A) In respect to the use of property or services purchased by  the
 user  while  a nonresident of this state, except in the case of tangible
 personal property or services which the user, in the  performance  of  a
 contract, incorporates into real property located in the state. A person
 while engaged in any manner in carrying on in this state any employment,
 trade,  business  or  profession, shall not be deemed a nonresident with
 respect to the use in this state of property or services in such employ-
 ment, trade, business or profession. This exemption does  not  apply  to
 the  use of qualified property where the qualified property is purchased
 primarily to carry individuals, whether or not for hire, who are agents,
 employees,  officers,  shareholders,  members,  managers,  partners,  or
 directors  of  (A)  the  purchaser, where any of those individuals was a
 resident of this state when the qualified property was purchased or  (B)
 any  affiliated  person  that was a resident when the qualified property
 was purchased. For purposes of this subdivision: (i) persons are  affil-
 iated persons with respect to each other where one of the persons has an
 ownership  interest  of  more than five percent, whether direct or indi-
 rect, in the other, or where an ownership interest  of  more  than  five
 percent,  whether  direct or indirect, is held in each of the persons by
 another person or by a  group  of  other  persons  that  are  affiliated
 persons  with  respect  to  each  other; (ii) "qualified property" means
 [aircraft,] vessels and motor vehicles; and (iii) "carry" means to  take
 any  person from one point to another, whether for the business purposes
 or pleasure of that person. For an exception to the exclusions from  the
 definition  of  "retail  sale" applicable to [aircraft and] vessels, see
 subdivision (q) of section eleven hundred eleven of this article.
   (B) NOTWITHSTANDING ANY PROVISION OF THIS ARTICLE TO THE CONTRARY, THE
 EXCLUSION IN PARAGRAPH (A) OF THIS SUBDIVISION SHALL NOT  APPLY  TO  THE
 USE  WITHIN  THE  STATE  OF PROPERTY OR A SERVICE PURCHASED OUTSIDE THIS
 STATE BY A NONRESIDENT THAT IS NOT AN INDIVIDUAL, UNLESS  SUCH  NONRESI-
 DENT  HAS  BEEN DOING BUSINESS OUTSIDE THE STATE FOR AT LEAST SIX MONTHS
 PRIOR TO THE DATE SUCH NONRESIDENT BROUGHT SUCH PROPERTY OR SERVICE INTO
 THIS STATE.
   § 3. This act shall take effect immediately.
 
                                  PART DD
 
   Section 1. Section 1105-C of the tax law, as added by section 24-a  of
 part  Y  of chapter 63 of the laws of 2000, and subdivision (d) as added

 S. 2009--A                         86                         A. 3009--A
 
 by section 1 of part B of chapter 85 of the laws of 2002, is amended  to
 read as follows:
   §  1105-C.  Reduced  tax rates with respect to certain gas service and
 electric service. Notwithstanding any other provisions of  this  article
 or article twenty-nine of this chapter:
   (a)  The  rates  of  taxes imposed by this article and pursuant to the
 authority of article twenty-nine of this chapter on receipts from  every
 sale  of  gas  service or electric service of whatever nature (including
 the transportation, transmission or distribution of gas or  electricity,
 but  not  including  gas  or electricity) shall be [reduced each year on
 September first, beginning in the year two thousand, and each year ther-
 eafter, at the rate per year of twenty-five  percent  of  the  rates  in
 effect on September first, two thousand, so that the rates of such taxes
 on  such  receipts shall be] zero percent [on and after September first,
 two thousand three] UNLESS THE CHARGE IS BY THE VENDOR  FOR  TRANSPORTA-
 TION,  TRANSMISSION  OR DISTRIBUTION, REGARDLESS OF WHETHER SUCH CHARGES
 ARE SEPARATELY STATED IN THE WRITTEN CONTRACT, IF ANY, OR  ON  THE  BILL
 RENDERED  TO  SUCH  PURCHASER AND REGARDLESS OF WHETHER SUCH TRANSPORTA-
 TION, TRANSMISSION, OR DISTRIBUTION IS PROVIDED  BY  SUCH  VENDOR  OR  A
 THIRD PARTY.
   (b)  [The  provisions of subdivision (b) of section eleven hundred six
 of this article shall apply to the reduced rates described  in  subdivi-
 sion  (a)  of this section, as if such section referred to this section,
 provided that any reference in subdivision (b) of  such  section  eleven
 hundred six to the date August first, nineteen hundred sixty-five, shall
 be  deemed  to refer, respectively, to September first of the applicable
 years described in subdivision (a) of this section, and any reference in
 subdivision (b) of such section eleven hundred six to July thirty-first,
 nineteen hundred sixty-five, shall be deemed to refer to the  day  imme-
 diately preceding each such September first, respectively.
   (c)  Nothing  in this section shall be deemed to exempt from the taxes
 imposed under this article or pursuant to the authority of article twen-
 ty-nine of this chapter any transaction which may not be subject to  the
 reduced  rates of such taxes, each year, as set forth in subdivision (a)
 of this section in effect on the respective September first.
   (d)] For [the purpose] PURPOSES of [the reduced rate of  tax  provided
 by]  subdivision  (a)  of  this section, [the following shall apply to a
 sale, other than a sale for resale, of the]  WHERE  THE  transportation,
 transmission  or  distribution  of  gas  or electricity [by a vendor not
 subject to the supervision of the public service commission  where  such
 transportation, transmission or distribution service being] IS sold [is]
 wholly  within  a  service  area of the state wherein the public service
 commission [shall have] HAS approved by formal order a  single  retailer
 model  for  the  regulated utility which has the responsibility to serve
 that area[. Where such a vendor makes a sale,  other  than  a  sale  for
 resale,  of gas or electricity to be delivered to a customer within such
 service area and, for  the  purpose  of  transporting,  transmitting  or
 distributing  such  gas or electricity, also makes a sale of transporta-
 tion, transmission or distribution service to such customer], the charge
 for [the] SUCH transportation, transmission or distribution [of  gas  or
 electricity  wholly  within  such  service  area  made  by  such vendor,
 notwithstanding paragraph three of subdivision  (b)  of  section  eleven
 hundred  one  of  this article, shall not be included in the receipt for
 such gas or electricity, and, therefore,] WHEN MADE BY THE PROVIDER  WHO
 ALSO  SELLS,  OTHER  THAN  AS A SALE FOR RESALE, THE GAS OR ELECTRICITY,
 shall qualify for such reduced rate.

 S. 2009--A                         87                         A. 3009--A
 
   § 2. This act shall take effect immediately.
 
                                  PART EE
 
   Section 1. Subdivision 1 of section 186-f of the tax law is amended by
 adding three new paragraphs (f), (g) and (h) to read as follows:
   (F)  "PREPAID  WIRELESS COMMUNICATIONS SELLER" MEANS A PERSON MAKING A
 RETAIL SALE OF PREPAID WIRELESS  COMMUNICATIONS  SERVICE  OR  A  PREPAID
 WIRELESS COMMUNICATIONS DEVICE.
   (G)  "PREPAID WIRELESS COMMUNICATIONS DEVICE" MEANS ANY EQUIPMENT USED
 TO ACCESS A PREPAID WIRELESS COMMUNICATIONS SERVICE.
   (H) "PREPAID WIRELESS COMMUNICATIONS SERVICE" MEANS A  PREPAID  MOBILE
 CALLING SERVICE AS DEFINED IN PARAGRAPH TWENTY-TWO OF SUBDIVISION (B) OF
 SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER.
   §  2.  Subdivision  2  of  section  186-f  of the tax law, as added by
 section 3 of part B of chapter 56 of the laws of  2009,  is  amended  to
 read as follows:
   2.  Public  safety  communications  surcharge.  (a) (1) A surcharge on
 wireless communications service provided to  a  wireless  communications
 customer  with  a  place  of primary use in this state is imposed at the
 rate of one dollar and twenty cents per month on each wireless  communi-
 cations  device  in service during any part of each month. The surcharge
 must be reflected and made payable on bills  rendered  to  the  wireless
 communications customer for wireless communication service.
   [(b)]  (2)  Each  wireless  communications  service supplier providing
 wireless communications  service  in  New  York  state  must  act  as  a
 collection  agent for the state for the collection of the surcharge. The
 wireless communications service supplier  has  no  legal  obligation  to
 enforce  the  collection  of  the surcharge from its customers. However,
 each wireless communications service supplier must  collect  and  retain
 the  name  and  address  of  any wireless communications customer with a
 place of primary use in this state that refuses  or  fails  to  pay  the
 surcharge,  as  well as the cumulative amount of the surcharge remaining
 unpaid, and must provide this information to  the  commissioner  at  the
 time  and  according to the procedures the commissioner may provide. The
 surcharge must be reported and paid to the commissioner on  a  quarterly
 basis  on  or before the fifteenth day of the month following each quar-
 terly period ending on the last day of February, May, August and  Novem-
 ber,  respectively.  The payments must be accompanied by a return in the
 form and containing the information the commissioner may prescribe.
   [(c)] (3) The surcharge must be added as a separate line item to bills
 furnished by a wireless communications service supplier to  its  custom-
 ers,  and  must  be  identified  as  the  "public  safety communications
 surcharge". Each wireless communications customer who is subject to  the
 provisions of this section remains liable to the state for the surcharge
 due  under this section until it has been paid to the state, except that
 payment to a wireless communications service supplier is  sufficient  to
 relieve the customer from further liability for the surcharge.
   [(d)  Each  wireless  communications  service  supplier is entitled to
 retain, as an administrative fee, an amount  equal  to  two  percent  of
 fifty-eight  and  three-tenths  percent  of the total collections of the
 surcharge imposed by this section, provided that the supplier files  any
 required  return  and remits the surcharge due to the commissioner on or
 before its due date.]
   (B)(1) A SURCHARGE IS IMPOSED ON THE RETAIL SALE OF EACH PREPAID WIRE-
 LESS COMMUNICATIONS SERVICE OR DEVICE AT THE RATE OF:  (I)  SIXTY  CENTS

 S. 2009--A                         88                         A. 3009--A
 
 PER RETAIL SALE THAT DOES NOT EXCEED THIRTY DOLLARS; AND (II) ONE DOLLAR
 AND TWENTY CENTS PER RETAIL SALE THAT EXCEEDS THIRTY DOLLARS.
   (2)  FOR  PURPOSES  OF  THIS  PARAGRAPH,  A SALE OF A PREPAID WIRELESS
 COMMUNICATIONS SERVICE OR DEVICE OCCURS IN THIS STATE IF THE SALE  TAKES
 PLACE AT A SELLER'S BUSINESS LOCATION IN THE STATE. IF THE SALE DOES NOT
 TAKE  PLACE  AT THE SELLER'S PLACE OF BUSINESS, IT SHALL BE CONCLUSIVELY
 DETERMINED TO TAKE PLACE AT THE  PURCHASER'S  SHIPPING  ADDRESS  OR,  IF
 THERE IS NO ITEM SHIPPED, AT THE PURCHASER'S BILLING ADDRESS, OR, IF THE
 SELLER  DOES  NOT  HAVE THAT ADDRESS, AT SUCH ADDRESS AS APPROVED BY THE
 COMMISSIONER THAT REASONABLY REFLECTS THE  CUSTOMER'S  LOCATION  AT  THE
 TIME  OF  THE  SALE  OF  THE  PREPAID WIRELESS COMMUNICATIONS SERVICE OR
 DEVICE.
   (3) EACH PREPAID WIRELESS COMMUNICATIONS SELLER IN NEW YORK STATE MUST
 ACT AS A COLLECTION AGENT FOR  THE  STATE  FOR  THE  COLLECTION  OF  THE
 SURCHARGE.   THE SURCHARGE MUST BE REPORTED AND PAID TO THE COMMISSIONER
 ON A QUARTERLY BASIS ON OR BEFORE THE FIFTEENTH DAY OF THE MONTH FOLLOW-
 ING EACH QUARTERLY PERIOD ENDING ON  THE  LAST  DAY  OF  FEBRUARY,  MAY,
 AUGUST AND NOVEMBER, RESPECTIVELY. THE PAYMENTS MUST BE ACCOMPANIED BY A
 RETURN  IN  THE FORM AND CONTAINING THE INFORMATION THE COMMISSIONER MAY
 PRESCRIBE.
   (4) THE SURCHARGE MUST BE ADDED AS A SEPARATE LINE  ITEM  TO  A  SALES
 SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE, IF ANY, THAT IS
 FURNISHED  BY  A  PREPAID WIRELESS COMMUNICATIONS SELLER TO A PURCHASER,
 AND MUST BE IDENTIFIED AS THE "PUBLIC SAFETY COMMUNICATIONS  SURCHARGE."
 EACH PURCHASER OF A PREPAID WIRELESS COMMUNICATIONS SERVICE OR DEVICE IN
 THIS  STATE REMAINS LIABLE TO THE STATE FOR THE SURCHARGE DUE UNDER THIS
 SECTION UNTIL IT HAS BEEN PAID TO THE STATE, EXCEPT THAT  PAYMENT  TO  A
 PREPAID  WIRELESS  COMMUNICATIONS  SELLER  IS  SUFFICIENT TO RELIEVE THE
 PURCHASER FROM FURTHER LIABILITY FOR SUCH SURCHARGE.
   § 3.  The county law is amended by adding a new section 309 to read as
 follows:
   § 309. ESTABLISHMENT OF PREPAID WIRELESS SURCHARGE FOR  SYSTEM  COSTS.
 1.  DEFINITIONS.  WHEN USED IN THIS ARTICLE, WHERE NOT OTHERWISE SPECIF-
 ICALLY DEFINED AND UNLESS THE SPECIFIC CONTEXT CLEARLY INDICATES  OTHER-
 WISE:
   (A)  "PREPAID  WIRELESS COMMUNICATIONS SELLER" MEANS A PERSON MAKING A
 RETAIL SALE OF PREPAID WIRELESS  COMMUNICATIONS  SERVICE  OR  A  PREPAID
 WIRELESS COMMUNICATIONS DEVICE.
   (B)  "PREPAID WIRELESS COMMUNICATIONS DEVICE" MEANS ANY EQUIPMENT USED
 TO ACCESS A PREPAID WIRELESS COMMUNICATIONS SERVICE.
   (C) "PREPAID WIRELESS COMMUNICATIONS SERVICE" MEANS A  PREPAID  MOBILE
 CALLING SERVICE AS DEFINED IN PARAGRAPH TWENTY-TWO OF SUBDIVISION (B) OF
 SECTION ELEVEN HUNDRED ONE OF THE TAX LAW.
   2.  NOTWITHSTANDING  THE  PROVISIONS  OF  ANY LAW TO THE CONTRARY, ANY
 MUNICIPALITY, AS DEFINED IN SECTION THREE HUNDRED ONE OF  THIS  ARTICLE,
 THAT  IS  AUTHORIZED  TO  IMPOSE  AN ENHANCED EMERGENCY TELEPHONE SYSTEM
 SURCHARGE ON WIRELESS COMMUNICATIONS  SERVICE  UNDER  THIS  ARTICLE,  IS
 HEREBY  AUTHORIZED  AND  EMPOWERED TO ADOPT, AMEND OR REPEAL LOCAL LAWS,
 ACTING THROUGH ITS BOARD, TO IMPOSE A SURCHARGE ON THE  RETAIL  SALE  OF
 EACH PREPAID WIRELESS COMMUNICATIONS SERVICE OR DEVICE, IN AN AMOUNT NOT
 TO  EXCEED  THIRTY  CENTS  PER RETAIL SALE WITHIN SUCH MUNICIPALITY. THE
 PROCEEDS FROM SUCH SURCHARGE SHALL BE USED TO PAY FOR THE COSTS  ASSOCI-
 ATED  WITH  OBTAINING,  OPERATING  AND MAINTAINING THE TELECOMMUNICATION
 EQUIPMENT AND TELEPHONE SERVICES NEEDED TO PROVIDE AN ENHANCED 911 EMER-
 GENCY TELEPHONE SYSTEM TO SERVE SUCH MUNICIPALITY.

 S. 2009--A                         89                         A. 3009--A
 
   3. FOR PURPOSES OF THIS SECTION, A SALE OF A PREPAID WIRELESS COMMUNI-
 CATIONS SERVICE OR DEVICE OCCURS IN A MUNICIPALITY  IF  THE  SALE  TAKES
 PLACE  AT  A SELLER'S BUSINESS LOCATION IN THE MUNICIPALITY. IF THE SALE
 DOES NOT TAKE PLACE AT THE SELLER'S  PLACE  OF  BUSINESS,  IT  SHALL  BE
 CONCLUSIVELY  DETERMINED  TO  TAKE  PLACE  AT  THE  PURCHASER'S SHIPPING
 ADDRESS IN THE MUNICIPALITY OR, IF THERE IS  NO  ITEM  SHIPPED,  AT  THE
 PURCHASER'S  BILLING ADDRESS IN THE MUNICIPALITY, OR, IF THE SELLER DOES
 NOT HAVE THAT ADDRESS, AT SUCH  ADDRESS  THAT  REASONABLY  REFLECTS  THE
 CUSTOMER'S  LOCATION  AT  THE  TIME  OF THE SALE OF THE PREPAID WIRELESS
 COMMUNICATIONS SERVICE OR DEVICE.
   4. ANY SUCH LOCAL LAW SHALL STATE THE AMOUNT OF THE SURCHARGE AND  THE
 DATE  ON  WHICH  SELLERS IN THE MUNICIPALITY SHALL BEGIN TO COLLECT SUCH
 SURCHARGE. ANY SELLER OF A PREPAID WIRELESS  COMMUNICATIONS  SERVICE  OR
 DEVICE  WITHIN  A  MUNICIPALITY THAT HAS IMPOSED A SURCHARGE PURSUANT TO
 THE PROVISIONS OF THIS SECTION SHALL BE GIVEN A  MINIMUM  OF  FORTY-FIVE
 DAYS  WRITTEN  NOTICE PRIOR TO THE DATE IT SHALL BE REQUIRED TO BEGIN TO
 COLLECT SUCH SURCHARGE OR PRIOR TO ANY MODIFICATION TO OR CHANGE IN  THE
 SURCHARGE AMOUNT.
   5.  (A)  EACH PREPAID WIRELESS COMMUNICATIONS SELLER IN A MUNICIPALITY
 SHALL ACT AS COLLECTION AGENT FOR SUCH MUNICIPALITY AND SHALL REMIT  THE
 FUNDS  COLLECTED PURSUANT TO A SURCHARGE IMPOSED UNDER THE PROVISIONS OF
 THIS SECTION TO THE CHIEF  FISCAL  OFFICER  OF  THE  MUNICIPALITY  EVERY
 MONTH.  SUCH FUNDS SHALL BE REMITTED NO LATER THAN THIRTY DAYS AFTER THE
 LAST BUSINESS DAY OF THE MONTH.
   (B)  THE SELLER SHALL BE ENTITLED TO RETAIN, AS AN ADMINISTRATIVE FEE,
 AN AMOUNT EQUAL TO TWO PERCENT  OF  ITS  COLLECTIONS  OF  THE  SURCHARGE
 IMPOSED UNDER THIS ARTICLE.
   (C)  THE  SURCHARGE SHALL BE ADDED TO AND STATED SEPARATELY ON A SALES
 SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE, IF ANY, THAT IS
 PROVIDED TO THE PURCHASER.
   (D) THE SELLER SHALL PROVIDE TO THE MUNICIPALITY AN ACCOUNTING OF  THE
 SURCHARGE  AMOUNTS COLLECTED NO MORE FREQUENTLY THAN ANNUALLY UPON WRIT-
 TEN REQUEST FROM THE MUNICIPALITY'S CHIEF FISCAL OFFICER.
   (E) EACH PURCHASER OF A PREPAID  WIRELESS  COMMUNICATIONS  SERVICE  OR
 DEVICE IN A MUNICIPALITY THAT HAS IMPOSED SUCH SURCHARGE SHALL BE LIABLE
 TO  THE  MUNICIPALITY  FOR  THE  SURCHARGE UNTIL IT HAS BEEN PAID TO THE
 MUNICIPALITY, EXCEPT THAT PAYMENT TO A PREPAID  WIRELESS  COMMUNICATIONS
 SELLER IS SUFFICIENT TO RELIEVE THE PURCHASER FROM FURTHER LIABILITY FOR
 SUCH SURCHARGE.
   6.  ALL SURCHARGE MONIES REMITTED TO A MUNICIPALITY BY A PREPAID WIRE-
 LESS COMMUNICATIONS SELLER SHALL BE EXPENDED ONLY UPON AUTHORIZATION  OF
 THE  LEGISLATIVE BODY OF A MUNICIPALITY AND ONLY FOR PAYMENT OF ELIGIBLE
 WIRELESS 911 SERVICE COSTS AS DEFINED IN SUBDIVISION SIXTEEN OF  SECTION
 THREE  HUNDRED TWENTY-FIVE OF THIS CHAPTER. THE MUNICIPALITY SHALL SEPA-
 RATELY ACCOUNT FOR AND KEEP ADEQUATE BOOKS AND RECORDS OF THE AMOUNT AND
 SOURCE OF ALL SUCH MONIES AND OF THE AMOUNT AND OBJECT OR PURPOSE OF ALL
 EXPENDITURES THEREOF. IF, AT THE END  OF  ANY  FISCAL  YEAR,  THE  TOTAL
 AMOUNT  OF  ALL  SUCH MONIES EXCEEDS THE AMOUNT NECESSARY FOR PAYMENT OF
 THE ABOVE MENTIONED COSTS IN SUCH FISCAL  YEAR,  SUCH  EXCESS  SHALL  BE
 RESERVED  AND CARRIED OVER FOR THE PAYMENT OF THOSE COSTS IN THE FOLLOW-
 ING FISCAL YEAR.
   § 4. This act shall take effect December 1, 2017.
 
                                  PART FF

 S. 2009--A                         90                         A. 3009--A
 
   Section 1. Subdivision 8 of section 1399-n of the public  health  law,
 as  amended  by  chapter  13  of  the laws of 2003, is amended and a new
 subdivision 9 is added to read as follows:
   8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
 any other matter or substance which contains tobacco, THE BURNING OF  AN
 HERBAL CIGARETTE, OR THE USE OF A VAPOR PRODUCT.
   9.  "VAPOR PRODUCT" MEANS 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 THOUSAND THREE
 HUNDRED SIXTY-TWO OF THIS CHAPTER.
   § 2. The article heading of article 13-F of the public health law,  as
 amended  by  chapter  448  of  the  laws  of 2012, is amended to read as
 follows:
      REGULATION OF TOBACCO PRODUCTS, HERBAL CIGARETTES AND [SMOKING
           PARAPHERNALIA] VAPOR PRODUCTS; DISTRIBUTION TO MINORS
   § 3. Subdivisions 5, 8, and 13 of section 1399-aa of the public health
 law, subdivision 5 as amended by chapter 152 of the laws of 2004, subdi-
 vision 8 as added by chapter 13 of the laws of 2003, and subdivision  13
 as  amended  by  chapter 542 of the laws of 2014, are amended to read as
 follows:
   5. "Tobacco products" means one or more cigarettes or  cigars,  bidis,
 chewing  tobacco,  powdered tobacco, SHISHA, nicotine water or any other
 PRODUCT CONTAINING OR DERIVED FROM tobacco [products].
   8. "Tobacco business" means a sole proprietorship, corporation, limit-
 ed liability company, partnership  or  other  enterprise  in  which  the
 primary  activity  is  the  sale,  manufacture  or promotion of tobacco,
 tobacco products, VAPOR PRODUCTS, and accessories, either  at  wholesale
 or  retail,  and  in  which  the sale, manufacture or promotion of other
 products is merely incidental.
   13. ["Electronic  cigarette"  or  "e-cigarette"  means  an  electronic
 device  that  delivers vapor which is inhaled by an individual user, and
 shall include any refill, cartridge and any other component  of  such  a
 device.] "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARD-
 LESS  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  THOUSAND  THREE
 HUNDRED SIXTY-TWO OF THIS CHAPTER.
   §  4.  Section 1399-bb of the public health law, as amended by chapter
 508 of the laws of 2000, subdivision 2 as amended by chapter 13  of  the
 laws of 2003, is amended to read as follows:
   §  1399-bb.  Distribution of tobacco products [or], herbal cigarettes,
 OR VAPOR PRODUCTS without charge. 1. No person engaged in  the  business
 of selling or otherwise distributing tobacco products [or], herbal ciga-
 rettes,  OR  VAPOR  PRODUCTS  for  commercial  purposes, or any agent or
 employee of such person, shall knowingly, in furtherance of  such  busi-
 ness:
   (a)  distribute without charge any tobacco products [or], herbal ciga-
 rettes, OR VAPOR PRODUCTS to any individual, provided that the  distrib-
 ution  of a package containing tobacco products [or], herbal cigarettes,

 S. 2009--A                         91                         A. 3009--A
 
 OR VAPOR PRODUCTS in violation of this subdivision  shall  constitute  a
 single  violation  without regard to the number of items in the package;
 or
   (b) distribute coupons which are redeemable for tobacco products [or],
 herbal  cigarettes,  OR  VAPOR PRODUCTS to any individual, provided that
 this subdivision shall not apply to  coupons  contained  in  newspapers,
 magazines  or  other types of publications, coupons obtained through the
 purchase of tobacco products [or], herbal cigarettes, OR VAPOR  PRODUCTS
 or  obtained at locations which sell tobacco products [or], herbal ciga-
 rettes, OR VAPOR PRODUCTS provided that such distribution is confined to
 a designated area or to coupons sent through the mail.
   2. The prohibitions contained in subdivision one of this section shall
 not apply to the following locations:
   (a) private social functions when seating arrangements are  under  the
 control  of  the  sponsor  of  the function and not the owner, operator,
 manager or person in charge of such indoor area;
   (b) conventions and trade shows; provided  that  the  distribution  is
 confined  to  designated areas generally accessible only to persons over
 the age of eighteen;
   (c) events sponsored by tobacco [or], herbal cigarette, OR VAPOR PROD-
 UCT manufacturers provided that the distribution is confined  to  desig-
 nated  areas  generally accessible only to persons over the age of eigh-
 teen;
   (d) bars as defined in subdivision one  of  section  thirteen  hundred
 ninety-nine-n of this chapter;
   (e)  tobacco  businesses  as  defined  in subdivision eight of section
 thirteen hundred ninety-nine-aa of this article;
   (f) factories as defined  in  subdivision  nine  of  section  thirteen
 hundred  ninety-nine-aa of this article and construction sites; provided
 that the distribution is confined to designated areas generally accessi-
 ble only to persons over the age of eighteen.
   3.  No  person  shall  distribute  tobacco   products   [or],   herbal
 cigarettes,  OR  VAPOR PRODUCTS at the locations set forth in paragraphs
 (b), (c) and (f) of subdivision two of this section unless  such  person
 gives five days written notice to the enforcement officer.
   4.  The  distribution  of tobacco products [or], herbal cigarettes, OR
 VAPOR PRODUCTS pursuant to subdivision two of this section shall be made
 only to an individual who demonstrates, through (A) a  driver's  license
 or  [other  photographic]  NON-DRIVER'S identification card issued by [a
 government entity or educational institution] THE COMMISSIONER OF  MOTOR
 VEHICLES,  THE  FEDERAL GOVERNMENT, ANY UNITED STATES TERRITORY, COMMON-
 WEALTH OR POSSESSION, THE DISTRICT OF COLUMBIA, A STATE GOVERNMENT WITH-
 IN THE UNITED STATES OR A PROVINCIAL GOVERNMENT OF THE DOMINION OF CANA-
 DA, OR (B) A VALID PASSPORT ISSUED BY THE UNITED  STATES  GOVERNMENT  OR
 ANY  OTHER  COUNTRY,  OR  (C) AN IDENTIFICATION CARD ISSUED BY THE ARMED
 FORCES OF THE UNITED STATES, indicating that the individual is at  least
 eighteen  years  of age. Such identification need not be required of any
 individual who reasonably appears to be at least  twenty-five  years  of
 age;  provided,  however,  that  such  appearance shall not constitute a
 defense in any proceeding alleging the sale of a tobacco  product  [or],
 herbal cigarette, OR VAPOR PRODUCTS to an individual.
   §  5. The section heading of section 1399-cc of the public health law,
 as amended by chapter 542 of the laws of 2014, is  amended  to  read  as
 follows:

 S. 2009--A                         92                         A. 3009--A
 
   Sale of tobacco products, herbal cigarettes, [liquid nicotine, shisha,
 rolling  papers]  VAPOR  PRODUCTS  or  smoking  paraphernalia  to minors
 prohibited.
   §  6.  Subdivisions  2,  3,  4, and 7 of section 1399-cc of the public
 health law, as amended by chapter 542 of the laws of 2014 are amended to
 read as follows:
   2. Any person operating a place of business wherein tobacco  products,
 herbal  cigarettes, [liquid nicotine, shisha] or [electronic cigarettes]
 VAPOR PRODUCTS, are sold or offered for sale is prohibited from  selling
 such  products,  herbal cigarettes, [liquid nicotine, shisha, electronic
 cigarettes] VAPOR PRODUCTS or smoking paraphernalia to individuals under
 eighteen years of age, and shall post in a conspicuous place a sign upon
 which there shall be imprinted the following statement, "SALE  OF  CIGA-
 RETTES,  CIGARS,  [CHEWING  TOBACCO,  POWDERED TOBACCO,] SHISHA OR OTHER
 TOBACCO PRODUCTS, HERBAL CIGARETTES, [LIQUID NICOTINE, ELECTRONIC  CIGA-
 RETTES]  VAPOR  PRODUCTS,  [ROLLING PAPERS] OR SMOKING PARAPHERNALIA, TO
 PERSONS UNDER EIGHTEEN YEARS OF AGE IS PROHIBITED  BY  LAW."  Such  sign
 shall  be  printed on a white card in red letters at least one-half inch
 in height.
   3. Sale of tobacco  products,  herbal  cigarettes,  [liquid  nicotine,
 shisha]  or [electronic cigarettes] VAPOR PRODUCTS in such places, other
 than by a vending machine, shall be  made  only  to  an  individual  who
 demonstrates, through (a) a valid driver's license or non-driver's iden-
 tification card issued by the commissioner of motor vehicles, the feder-
 al  government, any United States territory, commonwealth or possession,
 the District of Columbia, a state government within the United States or
 a provincial government of the dominion of Canada, or (b) a valid  pass-
 port issued by the United States government or any other country, or (c)
 an  identification card issued by the armed forces of the United States,
 indicating that the individual is at least eighteen years of  age.  Such
 identification  need  not  be  required of any individual who reasonably
 appears to be at least twenty-five years of age, provided, however, that
 such appearance shall not constitute a defense in any proceeding  alleg-
 ing  the sale of a tobacco product, herbal cigarettes, [liquid nicotine,
 shisha] or [electronic cigarettes] VAPOR PRODUCTS to an individual under
 eighteen years of age.
   4. (a) Any person  operating  a  place  of  business  wherein  tobacco
 products,  herbal  cigarettes,  [liquid nicotine, shisha] or [electronic
 cigarettes] VAPOR PRODUCTS are sold or offered for sale  may  perform  a
 transaction scan as a precondition for such purchases.
   (b)  In  any  instance  where the information deciphered by the trans-
 action scan fails to match  the  information  printed  on  the  driver's
 license  or  non-driver  identification card, or if the transaction scan
 indicates that the information is false  or  fraudulent,  the  attempted
 transaction shall be denied.
   (c)  In  any  proceeding  pursuant to section thirteen hundred ninety-
 nine-ee of this article, it shall be an affirmative  defense  that  such
 person had produced a driver's license or non-driver identification card
 apparently  issued by a governmental entity, successfully completed that
 transaction scan, and that the tobacco product,  herbal  cigarettes  [or
 liquid nicotine], OR VAPOR PRODUCTS had been sold, delivered or given to
 such  person  in reasonable reliance upon such identification and trans-
 action scan. In evaluating the applicability of such affirmative defense
 the commissioner  shall  take  into  consideration  any  written  policy
 adopted  and  implemented  by the seller to effectuate the provisions of
 this chapter. Use of a transaction scan  shall  not  excuse  any  person

 S. 2009--A                         93                         A. 3009--A
 
 operating  a  place  of  business wherein tobacco products, herbal ciga-
 rettes, [liquid  nicotine,  shisha]  or  [electronic  cigarettes]  VAPOR
 PRODUCTS  are  sold,  or  the agent or employee of such person, from the
 exercise  of  reasonable  diligence  otherwise required by this chapter.
 Notwithstanding the above provisions, any such affirmative defense shall
 not be applicable in any civil or criminal proceeding, or in  any  other
 forum.
   7.  No  person operating a place of business wherein tobacco products,
 herbal cigarettes, [liquid nicotine, shisha] or [electronic  cigarettes]
 VAPOR  PRODUCTS  are  sold  or offered for sale shall sell, permit to be
 sold, offer for sale or display for sale  any  tobacco  product,  herbal
 cigarettes,  [liquid  nicotine, shisha] or [electronic cigarettes] VAPOR
 PRODUCTS in any manner, unless such products and cigarettes  are  stored
 for  sale (a) behind a counter in an area accessible only to the person-
 nel of such business, or (b) in a locked container[; provided,  however,
 such  restriction  shall  not apply to tobacco businesses, as defined in
 subdivision eight of section thirteen  hundred  ninety-nine-aa  of  this
 article, and to places to which admission is restricted to persons eigh-
 teen years of age or older].
   §  7.  Section 1399-dd of the public health law, as amended by chapter
 448 of the laws of 2012, is amended to read as follows:
   § 1399-dd. Sale of tobacco products, herbal cigarettes or  [electronic
 cigarettes]  VAPOR PRODUCTS in vending machines.  No person, firm, part-
 nership, company or corporation shall operate a  vending  machine  which
 dispenses tobacco products, herbal cigarettes or [electronic cigarettes]
 VAPOR  PRODUCTS  unless such machine is located: (a) in a bar as defined
 in subdivision one of section thirteen  hundred  ninety-nine-n  of  this
 chapter,  or  the bar area of a food service establishment with a valid,
 on-premises full liquor license; (b) in a private club; (c) in a tobacco
 business as defined in subdivision eight  of  section  thirteen  hundred
 ninety-nine-aa  of  this  article; or (d) in a place of employment which
 has an insignificant portion  of  its  regular  workforce  comprised  of
 people  under  the age of eighteen years and only in such locations that
 are not accessible to the general public;  provided,  however,  that  in
 such  locations  the  vending machine is located in plain view and under
 the direct supervision and control  of  the  person  in  charge  of  the
 location or his or her designated agent or employee.
   §  8.  Subdivision  2  of section 1399-ee of the public health law, as
 amended by chapter 162 of the laws  of  2002,  is  amended  to  read  as
 follows:
   2.  If  the  enforcement  officer  determines  after  a hearing that a
 violation of this article has occurred, he or she shall impose  a  civil
 penalty  of  a  minimum  of three hundred dollars, but not to exceed one
 thousand dollars for a first violation, and a minimum  of  five  hundred
 dollars,  but  not  to exceed one thousand five hundred dollars for each
 subsequent violation, unless a different penalty is  otherwise  provided
 in  this article. The enforcement officer shall advise the retail dealer
 that upon the accumulation of three or  more  points  pursuant  to  this
 section  the  department of taxation and finance shall suspend the deal-
 er's registration. If the enforcement officer determines after a hearing
 that a retail dealer was selling  tobacco  products  OR  VAPOR  PRODUCTS
 while  their  registration was suspended or permanently revoked pursuant
 to subdivision three or four of this section, he or she shall  impose  a
 civil penalty of twenty-five hundred dollars.

 S. 2009--A                         94                         A. 3009--A
 
   Section  8-a. Paragraph (a) of subdivision 3 of section 1399-ee of the
 public health law, as amended by chapter 162 of the  laws  of  2002,  is
 amended to read as follows:
   (a) Imposition of points. If the enforcement officer determines, after
 a  hearing,  that  the  retail  dealer violated subdivision [one] TWO of
 section thirteen hundred ninety-nine-cc of this article with respect  to
 a  prohibited  sale to a minor, he or she shall, in addition to imposing
 any other penalty required or permitted pursuant to this section, assign
 two points to the  retail  dealer's  record  where  the  individual  who
 committed  the violation did not hold a certificate of completion from a
 state certified tobacco sales training program and one point  where  the
 retail  dealer  demonstrates that the person who committed the violation
 held a certificate of completion from a state  certified  tobacco  sales
 training program.
   §  9.  Subdivision  1  of section 1399-ff of the public health law, as
 amended by chapter 448 of the laws  of  2012,  is  amended  to  read  as
 follows:
   1.  Where  a  civil  penalty  for  a  particular incident has not been
 imposed or an enforcement action regarding an alleged  violation  for  a
 particular  incident is not pending under section thirteen hundred nine-
 ty-nine-ee of this article, a parent or guardian  of  a  minor  to  whom
 tobacco  products,  herbal  cigarettes  or [electronic cigarettes] VAPOR
 PRODUCTS are sold or distributed in violation of this article may submit
 a complaint to an enforcement officer setting forth the name and address
 of the alleged violator, the date of the alleged violation, the name and
 address of the complainant and the minor, and a brief statement describ-
 ing the alleged violation. The  enforcement  officer  shall  notify  the
 alleged  violator  by  certified  or  registered  mail,  return  receipt
 requested, that a complaint has been submitted, and shall set a date, at
 least fifteen days after the mailing of such notice, for  a  hearing  on
 the  complaint.  Such  notice shall contain the information submitted by
 the complainant.
   § 10. Section 1399-hh of the public health law, as  added  by  chapter
 433 of the laws of 1997, is amended to read as follows:
   §  1399-hh.  Tobacco  AND VAPOR PRODUCTS enforcement. The commissioner
 shall develop, plan and implement a comprehensive program to reduce  the
 prevalence of tobacco AND VAPOR PRODUCTS use, particularly among persons
 less  than eighteen years of age. This program shall include, but not be
 limited to, support for enforcement of article thirteen-F of this  chap-
 ter.
   1.  An  enforcement  officer,  as  defined in section thirteen hundred
 ninety-nine-t of this chapter, may annually, on such dates as  shall  be
 fixed  by the commissioner, submit an application for such monies as are
 made available for such purpose. Such application shall be in such  form
 as  prescribed by the commissioner and shall include, but not be limited
 to, plans regarding random spot checks, including the number  and  types
 of  compliance  checks  that  will be conducted, and other activities to
 determine compliance with this article. Each such plan shall include  an
 agreement  to  report  to the commissioner:   the names and addresses of
 tobacco retailers and vendors determined to be unlicensed, if  any;  the
 number  of complaints filed against licensed tobacco retail outlets; and
 the names of tobacco retailers and vendors who have paid fines, or  have
 been otherwise penalized, due to enforcement actions.
   2. The commissioner shall distribute such monies as are made available
 for  such purpose to enforcement officers and, in so doing, consider the
 number of retail locations registered to sell  tobacco  products  within

 S. 2009--A                         95                         A. 3009--A
 
 the  jurisdiction  of  the enforcement officer and the level of proposed
 activities.
   3.  Monies  made  available  to  enforcement officers pursuant to this
 section shall only be used for local tobacco, HERBAL CIGARETTE AND VAPOR
 PRODUCTS enforcement activities approved by the commissioner.
   § 11. The public health  law  is  amended  by  adding  a  new  section
 1399-mm-1 to read as follows:
   §  1399-MM-1. VAPOR PRODUCTS; CHILD-RESISTANT CONTAINERS REQUIRED.  NO
 PERSON ENGAGED IN THE BUSINESS OF MANUFACTURING,  SELLING  OR  OTHERWISE
 DISTRIBUTING VAPOR PRODUCTS, MAY SELL ANY COMPONENT OF SUCH SYSTEMS THAT
 CONTAINS  NICOTINE, INCLUDING ANY REFILL, CARTRIDGE, OR OTHER COMPONENT,
 UNLESS SUCH COMPONENT CONSTITUTES "SPECIAL PACKAGING" FOR THE PROTECTION
 OF CHILDREN, AS DEFINED IN 15 U.S.C. 1471 OR ANY SUPERSEDING STATUTE.
   § 12. Subdivision 2 of section 409 of the education law, as amended by
 chapter 449 of the laws of 2012, is amended to read as follows:
   2. Notwithstanding the provisions of any  other  law,  rule  or  regu-
 lation,  tobacco,  HERBAL CIGARETTE, AND VAPOR PRODUCTS use shall not be
 permitted and no person shall use  [tobacco]  SUCH  PRODUCTS  on  school
 grounds.  "School grounds" means any building, structure and surrounding
 outdoor grounds, including entrances or exits, contained within a public
 or private pre-school, nursery school, elementary or secondary  school's
 legally  defined  property  boundaries as registered in a county clerk's
 office.
   § 13. Section 3624 of the education law, as amended by chapter 529  of
 the laws of 2002, is amended to read as follows:
   § 3624. Drivers,  monitors  and  attendants.  The  commissioner  shall
 determine and define the qualifications of drivers, monitors and attend-
 ants and shall make the rules and regulations governing the operation of
 all transportation facilities used by pupils which rules and regulations
 shall include, but not be limited to,  a  maximum  speed  of  fifty-five
 miles  per hour for school vehicles engaged in pupil transportation that
 are operated on roads, interstates or other highways, parkways or bridg-
 es or portions thereof that  have  posted  speed  limits  in  excess  of
 fifty-five  miles  per hour, prohibitions relating to smoking AND USE OF
 VAPOR PRODUCTS, eating and drinking  and  any  and  all  other  acts  or
 conduct  which  would otherwise impair the safe operation of such trans-
 portation facilities while actually being  used  for  the  transport  of
 pupils.  The  employment  of each driver, monitor and attendant shall be
 approved by the chief school administrator of a school district for each
 school bus operated within his or  her  district.  For  the  purpose  of
 determining  his  or  her  physical  fitness,  each  driver, monitor and
 attendant may be examined on order of the chief school administrator  by
 a  duly  licensed  physician  within two weeks prior to the beginning of
 service in each school year as a school bus driver, monitor  or  attend-
 ant. The report of the physician, in writing, shall be considered by the
 chief  school  administrator in determining the fitness of the driver to
 operate or continue to operate any  transportation  facilities  used  by
 pupils  and  in  determining  the fitness of any monitor or attendant to
 carry out his or her functions on such transportation facilities.  Noth-
 ing  in  this  section  shall prohibit a school district from imposing a
 more restrictive speed limit policy for the operation of school vehicles
 engaged in pupil transportation than the speed limit policy  established
 by the commissioner.
   §  14.  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:

 S. 2009--A                         96                         A. 3009--A
 
   2.  "Tobacco  products."  Any cigar, including a little cigar, A VAPOR
 PRODUCT, or tobacco, other than cigarettes, intended for consumption  by
 smoking, chewing, INHALING VAPORS, or as snuff.
   §  15. Subdivision 12 of section 470 of the tax law, as added by chap-
 ter 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.
   §  16.  Section 470 of the tax law is amended by adding a new subdivi-
 sion 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 THOUSAND THREE HUNDRED
 SIXTY-TWO OF THE PUBLIC HEALTH LAW.
   § 17. Subdivision (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.
   §  18.  Subdivision  1  of  section 471-b of the tax law is amended by
 adding a new subdivision (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.
   § 19. The opening paragraph of subdivision (a) of section 471-c of the
 tax law, as amended by section 2 of part I1 of chapter 57 of the laws of
 2009, is amended to read as follows:
   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.
   § 20. Paragraph (i) of subdivision (a) of section  471-c  of  the  tax
 law,  as  amended  by section 20 of part D of chapter 134 of the laws of
 2010, is amended to read as follows:
   (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.
   §  21.  Subdivision  (a) of section 471-c of the tax law is amended by
 adding a new paragraph (iv) to read as follows:

 S. 2009--A                         97                         A. 3009--A
 
   (IV) 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.
   § 22. 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.
   § 23. 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.
   § 24. Subparagraph (i) of paragraph (b) of subdivision  1  of  section
 481  of  the tax law, as amended by section 1 of part O of chapter 59 of
 the laws of 2013, is amended to read as follows:
   (i) In addition to any other penalty  imposed  by  this  article,  the
 commissioner  may  (A)  impose  a  penalty  of not more than six hundred
 dollars for each two hundred cigarettes, or fraction thereof, in  excess
 of  one  thousand cigarettes in unstamped or unlawfully stamped packages
 in the possession or under the control of any person  or  (B)  impose  a
 penalty  of  not  more  than  two hundred dollars for each ten unaffixed
 false,  altered  or  counterfeit  cigarette  tax  stamps,  imprints   or
 impressions, or fraction thereof, in the possession or under the control
 of any person. In addition, the commissioner may impose a penalty of not
 more  than seventy-five dollars for each fifty cigars [or], one pound of
 tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction there-
 of, 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 MILLI-

 S. 2009--A                         98                         A. 3009--A
 
 LITERS 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, howev-
 er,  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  frac-
 tion  thereof,  in excess of fifty cigars [or], one pound of tobacco, 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.
   § 25. Clauses (B) and (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, is amended to read as follows:
   (B)(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
 MILLILITERS OF VAPOR PRODUCT knowingly in the  possession  or  knowingly
 under  the  control  of  any  person,  with respect to which the tobacco
 products tax has not been paid or assumed by a  distributor  or  tobacco
 products dealer; and
   (II) not less than fifty dollars but not more than two hundred dollars
 for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS
 OF  VAPOR PRODUCT, or fraction thereof, in excess of five hundred cigars
 [or], ten pounds of tobacco, OR ONE THOUSAND MILLILITERS OF VAPOR  PROD-
 UCT  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; provided, howev-
 er, that any such penalty imposed under this clause shall not exceed ten
 thousand dollars in the aggregate.
   (C)(I) not less than twenty-five dollars but not more than one hundred
 dollars for each fifty cigars [or], one pound of tobacco, OR ONE HUNDRED
 MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in  excess  of  fifty
 cigars  [or],  one pound of tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR
 PRODUCT knowingly in the possession or knowingly under  the  control  of
 any  person, with respect to which the tobacco products tax has not been
 paid or assumed by a distributor or tobacco products dealer; and
   (II) not less than fifty dollars but not more than two hundred dollars
 for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS
 OF VAPOR PRODUCT, or fraction thereof, in excess of  two  hundred  fifty
 cigars  [or],  five  pounds  of  tobacco, OR FIVE HUNDRED MILLILITERS OF
 VAPOR PRODUCT knowingly in the possession or knowingly under the control
 of any person, with respect to which the tobacco products  tax  has  not
 been  paid  or  assumed  by  a distributor or a tobacco products dealer;
 provided, however, that any such penalty imposed under this clause shall
 not exceed twenty thousand dollars in the aggregate.

 S. 2009--A                         99                         A. 3009--A
 
   § 26. Subdivisions (a) and (h) of section 1814  of  the  tax  law,  as
 amended  by section 28 of subpart I of part V1 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, OR
 (IV) FORTY-FOUR THOUSAND MILLILITERS OF VAPOR PRODUCT  OR  MORE  or  has
 previously  been convicted two or more times of a violation of paragraph
 [one] (I) 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 taxa-
 tion and finance 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 misdemeanor punishable by  a  fine
 of  not more than five thousand dollars or by a term of imprisonment 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 chapter shall  be
 guilty of a misdemeanor punishable by a fine of not more than five thou-
 sand dollars or by a term of imprisonment not to exceed thirty days.
   (3) Any person, other than a distributor appointed by the commissioner
 under  article  twenty of this chapter, who shall knowingly transport or
 have in his custody, possession or under his control twenty-five hundred
 or more cigars, or fifty or more pounds of  tobacco,  OR  FIVE  THOUSAND
 MILLILITERS  OR  MORE  OF  VAPOR PRODUCT upon which the taxes imposed by
 article twenty of this chapter have  not  been  assumed  or  paid  by  a
 distributor  appointed  by the commissioner under article twenty of this
 chapter, or other person treated as a distributor  pursuant  to  section
 four  hundred  seventy-one-d of this chapter shall be guilty of a misde-
 meanor. Provided further, that any person who has twice  been  convicted
 under  this  subdivision  shall  be  guilty  of a class E felony for any
 subsequent violation of this section, regardless of the amount of tobac-
 co products involved in such violation.
   (4) For purposes of this  subdivision,  such  person  shall  knowingly
 transport or have in his custody, possession or under his control tobac-
 co,  [or]  cigars,  OR  VAPOR PRODUCTS on which such taxes have not been
 assumed or 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.
   § 27. 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:

 S. 2009--A                         100                        A. 3009--A
 
   (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  MILLILITERS
 OF VAPOR PRODUCT for sale within the state, or produces, manufactures or
 compounds  tobacco products within the state shall be guilty of a misde-
 meanor 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 pounds or more
 of tobacco, OR FIFTY 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 misdemeanor. Provided further, that any
 person who has twice been convicted under this section shall  be  guilty
 of  a  class  E  felony  for  any  subsequent 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.
   §  28. Subdivision (a) of section 1846-a of the tax law, as amended by
 chapter 556 of the laws of 2011, is amended to read as follows:
   (a) Whenever a police officer designated in section 1.20 of the crimi-
 nal procedure law or a peace officer designated in subdivision  four  of
 section  2.10  of such law, acting pursuant to his special duties, shall
 discover any tobacco products in excess of five hundred cigars [or], ten
 pounds of tobacco, OR ONE THOUSAND MILLILITERS OF  VAPOR  PRODUCT  which
 are  being  imported for sale in the state where the person importing or
 causing 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.

 S. 2009--A                         101                        A. 3009--A
 
   §  29.  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.
   § 30. 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 that date.

                                  PART GG
 
   Section  1. Subdivision (d) 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, is amended to read as follows:
   (d) For the purposes of this section, the possession or transportation
 within this state by any person, other than an agent, at any one time of
 [five]  TWO  thousand  or  more  cigarettes  in  unstamped or unlawfully
 stamped packages shall be presumptive evidence that such cigarettes  are
 possessed  or transported for the purpose of sale and are subject to the
 tax imposed by section four hundred seventy-one 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  a  use
 tax  imposed  by  such  article  may  be paid on unstamped cigarettes or
 unlawfully or improperly stamped cigarettes or during which  such  ciga-
 rettes may be returned to an agent shall not apply. The possession with-
 in  this  state  of  more  than  four hundred cigarettes in unstamped or
 unlawfully stamped packages by any person other than an agent at any one
 time shall be presumptive evidence that such cigarettes are  subject  to
 tax as provided by article twenty of this chapter.
   §  2.  Subdivision  (g)  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,
 is amended to read as follows:
   (g)  Any  person who falsely or fraudulently makes, alters or counter-
 feits any stamp prescribed by the tax commission under the provisions of
 article twenty of this chapter, or causes or procures to be  falsely  or
 fraudulently made, altered or counterfeited any such stamp, or knowingly
 and  willfully  utters,  purchases,  passes  or tenders as true any such
 false, altered  or  counterfeited  stamp,  or  knowingly  and  willfully
 possesses  any cigarettes in packages bearing any such false, altered or
 counterfeited stamp, and any person who knowingly and  willfully  makes,
 causes to be made, purchases or receives any device for forging or coun-
 terfeiting  any  stamp,  prescribed  by  the  tax  commission  under the
 provisions of article twenty of this chapter, or who knowingly and will-
 fully possesses any such device, shall be guilty of a class [E] C  felo-
 ny. For the purposes of this subdivision, the words "stamp prescribed by

 S. 2009--A                         102                        A. 3009--A

 the tax commission" shall include a stamp, impression or imprint made by
 a  metering  machine,  the  design  of  which  has been approved by such
 commission.
   §  3.  This  act  shall  take effect immediately and apply to offenses
 committed on and after such effective date.
 
                                  PART HH
 
   Section 1. The tax law is amended by adding a  new  section  478-a  to
 read as follows:
   §  478-A.  JEOPARDY ASSESSMENTS. IF THE COMMISSIONER BELIEVES THAT THE
 COLLECTION OF ANY TAX WILL BE JEOPARDIZED BY DELAY, HE OR SHE MAY DETER-
 MINE THE AMOUNT OF SUCH TAX AND  ASSESS  THE  SAME,  TOGETHER  WITH  ALL
 INTEREST AND PENALTIES PROVIDED BY LAW, AGAINST ANY PERSON LIABLE THERE-
 FOR  PRIOR TO THE FILING OF HIS OR HER RETURN AND PRIOR TO THE DATE WHEN
 HIS OR HER RETURN IS REQUIRED TO BE  FILED.  THE  AMOUNT  SO  DETERMINED
 SHALL  BECOME  DUE AND PAYABLE TO THE COMMISSIONER BY THE PERSON AGAINST
 WHOM SUCH A JEOPARDY ASSESSMENT IS MADE, AS SOON AS  NOTICE  THEREOF  IS
 GIVEN  TO  HIM  OR  HER. THE PROVISIONS OF SECTION FOUR HUNDRED SEVENTY-
 EIGHT OF THIS ARTICLE SHALL APPLY TO ANY SUCH  DETERMINATION  EXCEPT  TO
 THE  EXTENT  THAT  THEY  MAY BE INCONSISTENT WITH THE PROVISIONS OF THIS
 SECTION. THE COMMISSIONER MAY ABATE ANY JEOPARDY ASSESSMENT IF HE OR SHE
 FINDS THAT JEOPARDY DOES NOT  EXIST.  THE  COLLECTION  OF  ANY  JEOPARDY
 ASSESSMENT  MAY  BE STAYED BY FILING WITH THE COMMISSIONER A BOND ISSUED
 BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN  THIS  STATE  AND
 APPROVED  BY THE SUPERINTENDENT OF FINANCIAL SERVICES AS TO SOLVENCY AND
 RESPONSIBILITY, OR SUCH OTHER SECURITY ACCEPTABLE TO  THE  COMMISSIONER,
 CONDITIONED UPON PAYMENT OF THE AMOUNT ASSESSED AND INTEREST THEREON, OR
 ANY  LESSER  AMOUNT TO WHICH SUCH ASSESSMENT MAY BE REDUCED BY THE DIVI-
 SION OF TAX APPEALS OR BY A PROCEEDING UNDER  ARTICLE  SEVENTY-EIGHT  OF
 THE  CIVIL  PRACTICE  LAW  AND RULES AS PROVIDED IN SECTION FOUR HUNDRED
 SEVENTY-EIGHT OF THIS ARTICLE, SUCH PAYMENT TO BE MADE WHEN THE  ASSESS-
 MENT  OR  ANY  SUCH  REDUCTION  THEREOF BECOMES FINAL AND NOT SUBJECT TO
 FURTHER REVIEW. IF SUCH A BOND IS  FILED  AND  THEREAFTER  A  PROCEEDING
 UNDER  ARTICLE  SEVENTY-EIGHT  OF  THE  CIVIL  PRACTICE LAW AND RULES IS
 COMMENCED AS PROVIDED IN SECTION  FOUR  HUNDRED  SEVENTY-EIGHT  OF  THIS
 ARTICLE, DEPOSIT OF THE TAXES, INTEREST AND PENALTIES ASSESSED SHALL NOT
 BE  REQUIRED  AS  A  CONDITION  PRECEDENT  TO  THE  COMMENCEMENT OF SUCH
 PROCEEDING. WHERE A JEOPARDY ASSESSMENT IS MADE, ANY PROPERTY SEIZED FOR
 THE COLLECTION OF THE TAX SHALL NOT BE SOLD: (1) UNTIL EXPIRATION OF THE
 TIME TO APPLY FOR A HEARING AS PROVIDED IN SECTION FOUR  HUNDRED  SEVEN-
 TY-EIGHT  OF  THIS ARTICLE, AND (2) IF SUCH APPLICATION IS TIMELY FILED,
 UNTIL THE EXPIRATION OF THE TIME TO FILE AN EXCEPTION  TO  THE  DETERMI-
 NATION  OF  THE  ADMINISTRATIVE  LAW JUDGE OR, IF AN EXCEPTION IS TIMELY
 FILED, UNTIL FOUR MONTHS AFTER THE TAX APPEALS TRIBUNAL HAS GIVEN NOTICE
 OF ITS DECISION TO THE PERSON  AGAINST  WHOM  THE  ASSESSMENT  IS  MADE;
 PROVIDED,  HOWEVER, SUCH PROPERTY MAY BE SOLD AT ANY TIME IF SUCH PERSON
 HAS FAILED TO ATTEND A HEARING OF WHICH HE OR SHE HAS  BEEN  DULY  NOTI-
 FIED,  OR  IF  HE  OR  SHE  CONSENTS TO THE SALE, OR IF THE COMMISSIONER
 DETERMINES THAT THE EXPENSES OF CONSERVATION AND MAINTENANCE WILL GREAT-
 LY REDUCE THE NET PROCEEDS, OR IF THE PROPERTY IS PERISHABLE.
   § 2. This act shall take effect immediately.
 
                                  PART II

 S. 2009--A                         103                        A. 3009--A
 
   Section 1. 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 CIGARS 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
 CIGARS.
   §  2.  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 CIGARS AS DEFINED IN SUBDIVISION NINETEEN  OF  SECTION
 FOUR  HUNDRED  SEVENTY  OF THIS ARTICLE SHALL BE AT A RATE OF FORTY-FIVE
 CENTS PER CIGAR.
   § 3. Paragraph (i) of subdivision (a) of section 471-c of the tax law,
 as amended by section 20 of part D of chapter 134 of the laws  of  2010,
 is amended to read as follows:
   (i) Such tax on tobacco products other than snuff [and], little cigars
 AND CIGARS shall be at the rate of seventy-five percent of the wholesale
 price.
   §  4.  Subdivision  (a)  of section 471-c of the tax law is amended by
 adding a new paragraph (iv) to read as follows:
   (IV) SUCH TAX ON CIGARS AS DEFINED IN SUBDIVISION NINETEEN OF  SECTION
 FOUR  HUNDRED  SEVENTY  OF THIS ARTICLE SHALL BE AT A RATE OF FORTY-FIVE
 CENTS PER CIGAR.
   § 5. This act shall take effect September 1, 2017.
 
                                  PART JJ
 
   Section 1. Subdivision (e) of section 1401 of the tax law, as  amended
 by chapter 760 of the laws of 1992, is amended to read as follows:
   (e)  "Conveyance"  means  the transfer or transfers of any interest in
 real property  by  any  method,  including  but  not  limited  to  sale,
 exchange,  assignment, surrender, mortgage foreclosure, transfer in lieu
 of foreclosure, option,  trust  indenture,  taking  by  eminent  domain,
 conveyance upon liquidation or by a receiver, or transfer or acquisition
 of a controlling interest in any entity with an interest in real proper-
 ty.   CONVEYANCE ALSO INCLUDES THE TRANSFER OF AN INTEREST IN A PARTNER-
 SHIP, LIMITED LIABILITY CORPORATION, S CORPORATION OR NON-PUBLICLY TRAD-
 ED C CORPORATION WITH FEWER THAN ONE HUNDRED SHAREHOLDERS THAT  OWNS  AN
 INTEREST  IN  REAL  PROPERTY  THAT IS LOCATED IN NEW YORK AND HAS A FAIR
 MARKET VALUE THAT EQUALS OR EXCEEDS FIFTY PERCENT OF ALL THE  ASSETS  OF
 THE  ENTITY  ON  THE  DATE OF THE TRANSFER OF AN INTEREST IN THE ENTITY.
 ONLY  THOSE ASSETS THAT THE ENTITY OWNED FOR AT LEAST TWO  YEARS  BEFORE
 THE  DATE OF THE TRANSFER OF THE TAXPAYER'S INTEREST IN THE ENTITY SHALL
 BE USED IN DETERMINING THE FAIR MARKET VALUE OF ALL THE  ASSETS  OF  THE
 ENTITY  ON  THE  DATE  OF  THE TRANSFER. Transfer of an interest in real
 property shall include the creation of  a  leasehold  or  sublease  only
 where  (i)  the sum of the term of the lease or sublease and any options
 for renewal exceeds forty-nine years, (ii) substantial capital  improve-
 ments  are or may be made by or for the benefit of the lessee or subles-
 see, and (iii) the lease or sublease is for  substantially  all  of  the
 premises  constituting the real property. Notwithstanding the foregoing,
 conveyance of real property shall not include a conveyance  pursuant  to
 devise,  bequest  or inheritance; the creation, modification, extension,
 spreading, severance, consolidation, assignment,  transfer,  release  or
 satisfaction  of a mortgage; a mortgage subordination agreement, a mort-

 S. 2009--A                         104                        A. 3009--A
 
 gage severance agreement, an instrument given to perfect  or  correct  a
 recorded  mortgage; or a release of lien of tax pursuant to this chapter
 or the internal revenue code.
   §  2.  Subdivision  (d)  of  section 1401 of the tax law is amended by
 adding a new paragraph (vi) to read as follows:
   (VI) IN THE CASE OF A TRANSFER OF AN INTEREST IN A PARTNERSHIP, LIMIT-
 ED LIABILITY CORPORATION, S CORPORATION OR NON-PUBLICLY TRADED C  CORPO-
 RATION  WITH  ONE  HUNDRED OR FEWER SHAREHOLDERS THAT OWNS REAL PROPERTY
 THAT IS LOCATED IN NEW YORK AND HAS A FAIR MARKET VALUE THAT  EQUALS  OR
 EXCEEDS FIFTY PERCENT OF ALL THE ASSETS OF THE ENTITY ON THE DATE OF THE
 TRANSFER OF AN INTEREST IN THE ENTITY, THE CONSIDERATION FOR THE CONVEY-
 ANCE SHALL BE CALCULATED BY MULTIPLYING (1) THE FAIR MARKET VALUE OF THE
 REAL  PROPERTY  THAT  IS LOCATED IN NEW YORK THAT IS OWNED BY THE ENTITY
 AND (2) THE PERCENTAGE OF THE ENTITY THAT IS TRANSFERRED.
   § 3. This act shall take effect immediately and shall apply to  trans-
 fers occurring on and after the effective date.
 
                                  PART KK
 
   Section  1.  Section  1402-a of the tax law is amended by adding a new
 subdivision (b-1) to read as follows:
   (B-1) THE COMMISSIONER IS AUTHORIZED TO TREAT AS SUBJECT TO TAX  UNDER
 THIS  SECTION ANY CONVEYANCE OF AN INTEREST IN REAL PROPERTY MADE PURSU-
 ANT TO AN AGREEMENT, UNDERSTANDING OR ARRANGEMENT THAT  RESULTS  IN  THE
 AVOIDANCE OR EVASION OF THE TAX IMPOSED BY THIS SECTION.
   § 2. This act shall take effect immediately.
 
                                  PART LL
 
   Section  1. Section 902 of the racing, pari-mutuel wagering and breed-
 ing law, as amended by chapter 60 of the laws of 1993, subdivision 1  as
 amended  by  chapter 15 of the laws of 2010 and subdivision 2 as amended
 by chapter 18 of the laws of 2008, is amended to read as follows:
   § 902. Equine drug testing and expenses. 1. In  order  to  assure  the
 public's  confidence and continue the high degree of integrity in racing
 at the pari-mutuel betting tracks, equine drug testing at race  meetings
 shall  be  conducted  by  a  [state  college  within  this state with an
 approved equine science program]  SUITABLE  LABORATORY  OR  LABORATORIES
 LOCATED IN NEW YORK STATE, AS THE GAMING COMMISSION MAY DETERMINE IN ITS
 DISCRETION.  The  [state  racing  and  wagering board] GAMING COMMISSION
 shall promulgate any rules and regulations necessary  to  implement  the
 provisions  of  this section, including administrative penalties of loss
 of purse money, fines, or  denial,  suspension[,]  or  revocation  of  a
 license for racing drugged horses.
   2.  Notwithstanding  any  inconsistent provision of law, all costs and
 expenses of the [state racing and wagering board] GAMING COMMISSION  for
 equine  drug  testing  and research shall be paid from [an appropriation
 from the state treasury, on the certification of  the  chairman  of  the
 state racing and wagering board, upon the audit and warrant of the comp-
 troller  and pursuant to a plan developed by the state racing and wager-
 ing board as approved by the director of the budget] AN  ASSESSMENT  THE
 COMMISSION  MAY MAKE ON HORSEMEN ENTERING HORSES IN RACES, AN ASSESSMENT
 THE COMMISSION MAY MAKE ON RACETRACKS, OR BOTH.
   § 2. Subdivision 2 of section 228 of the racing, pari-mutuel  wagering
 and  breeding  law, as amended by chapter 18 of the laws of 2008 and the

 S. 2009--A                         105                        A. 3009--A

 opening paragraph as amended by chapter 291 of  the  laws  of  2016,  is
 amended to read as follows:
   2.  The  New  York  state  gaming  commission shall, as a condition of
 racing, require any franchised corporation and every  other  corporation
 subject  to  its  jurisdiction  to  withhold  one percent of all purses,
 except that for the franchised corporation, starting on September first,
 two thousand seven and continuing through August thirty-first, two thou-
 sand seventeen, two percent of all purses shall be withheld, and, in the
 case of the franchised corporation, to pay such sum  to  the  horsemen's
 organization  or  its  successor  that  was  first  entitled  to receive
 payments pursuant to this  section  in  accordance  with  rules  of  the
 commission  adopted  effective  November third, nineteen hundred eighty-
 three representing at least fifty-one percent of the owners and trainers
 [utilizing] USING the facilities of such franchised corporation, on  the
 condition  that such horsemen's organization shall expend [as much as is
 necessary, but not to exceed] one-half of  one  percent  of  such  total
 sum[,]  to  acquire  and maintain the equipment required to [establish a
 program at a state college within this state  with  an  approved  equine
 science  program  to] test, AT A SUITABLE LABORATORY LOCATED IN NEW YORK
 STATE, AS THE GAMING COMMISSION MAY DETERMINE IN ITS DISCRETION, for the
 presence of [steroids] IMPERMISSIBLE  DRUGS  OR  OTHER  SUBSTANCES  THAT
 MIGHT  BE  CLASSIFIED  AS  IMPERMISSIBLE  SUBSTANCES in horses, provided
 further that the qualified organization shall also, in an amount  to  be
 determined  by  its board of directors, annually include in its expendi-
 tures for benevolence programs, funds to support an organization provid-
 ing services necessary to backstretch employees, and,  in  the  case  of
 every  other  corporation,  to pay such one percent sum of purses to the
 horsemen's organization or its successor  that  was  first  entitled  to
 receive  payments  pursuant  to this section in accordance with rules of
 the commission adopted  effective  May  twenty-third,  nineteen  hundred
 eighty-six  representing  at  least  fifty-one percent of the owners and
 trainers [utilizing] USING the facilities of such corporation.
   In either case, any other horsemen's organization  may  apply  to  the
 [board]  COMMISSION  to  be  approved  as  the qualified organization to
 receive payment of the one percent of all purses by  submitting  to  the
 [board]  COMMISSION  proof  of  both,  that  (i) it represents more than
 fifty-one percent of all the owners and trainers [utilizing]  USING  the
 same facilities and (ii) the horsemen's organization previously approved
 as  qualified  by  the  [board]  COMMISSION does not represent fifty-one
 percent of all the owners and trainers [utilizing] USING the same facil-
 ities. If the [board] COMMISSION is  satisfied  that  the  documentation
 submitted  with  the application of any other horsemen's organization is
 conclusive with respect to items (i) and (ii) of this paragraph, it  may
 approve the applicant as the qualified recipient organization.
   In  the best interests of racing, upon receipt of such an application,
 the [board] COMMISSION may direct the payments to the previously  quali-
 fied horsemen's organization to continue uninterrupted, or it may direct
 the  payments to be withheld and placed in interest-bearing accounts for
 a period not to exceed  ninety  days,  during  which  time  the  [board]
 COMMISSION shall review and approve or disapprove the application. Funds
 held  in  such  manner shall be paid to the organization approved by the
 [board] COMMISSION. In no event shall the [board] COMMISSION accept more
 than one such application in any calendar year from the same  horsemen's
 organization.
   The  funds  authorized  to be paid by the [board] COMMISSION are to be
 used exclusively for the benefit of those horsemen racing  in  New  York

 S. 2009--A                         106                        A. 3009--A
 
 state  through  the  administrative purposes of such qualified organiza-
 tion, benevolent activities on behalf of backstretch employees, and  for
 the promotion of equine research.
   § 3. This act shall take effect immediately.
 
                                  PART MM
 
   Section 1. Article 19-B of the executive law is REPEALED.
   § 1-a. Article 9-A of the general municipal law is REPEALED.
   § 1-b. Article 14-H of the general municipal law is REPEALED.
   §  2.  The racing, pari-mutuel wagering and breeding law is amended by
 adding a new article 15 to read as follows:
                                ARTICLE 15
                             CHARITABLE GAMING
 TITLE 1. GENERAL PROVISIONS.
       2. BINGO CONTROL.
       3. LOCAL OPTION FOR CONDUCT OF BINGO BY CERTAIN ORGANIZATIONS.
       4. LOCAL OPTION FOR CONDUCT OF GAMES OF CHANCE BY  CERTAIN  ORGAN-
            IZATIONS.
                                  TITLE 1
                            GENERAL PROVISIONS
 SECTION 1500. DEFINITIONS.
         1501. FORMS.
         1502. PARTICIPATION BY PERSONS UNDER THE AGE OF EIGHTEEN.
         1503. SUNDAYS.
         1504. ADVERTISING OF CHARITABLE GAMES.
         1505. SANCTIONS FOR VIOLATIONS.
         1506. SEVERABILITY.
   § 1500. DEFINITIONS. AS USED IN THIS ARTICLE, IN ADDITION TO THE DEFI-
 NITIONS  SET  FORTH  IN  SECTION  ONE  HUNDRED  ONE OF THIS CHAPTER, THE
 FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "AUTHORIZED BINGO LESSOR" SHALL MEAN A PERSON, FIRM OR  CORPORATION
 OTHER  THAN  A  LICENSEE  TO  CONDUCT BINGO UNDER THE PROVISIONS OF THIS
 ARTICLE, WHO OR WHICH OWNS OR IS A NET LESSEE OF PREMISES AND OFFER  THE
 SAME FOR LEASING BY HIM, HER OR IT TO AN AUTHORIZED ORGANIZATION FOR ANY
 CONSIDERATION  WHATSOEVER,  DIRECT  OR  INDIRECT,  FOR  THE  PURPOSE  OF
 CONDUCTING BINGO THEREIN, PROVIDED, THAT HE, SHE OR IT, AS THE CASE  MAY
 BE, SHALL NOT BE:
   (A)  A  PERSON  CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP
 BETWEEN ONE OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE  INTEGRITY
 OF  BINGO,  CONSIDERING  THE  FACTORS SET FORTH IN SECTION SEVEN HUNDRED
 FIFTY-THREE OF THE CORRECTION LAW;
   (B) A PERSON WHO IS OR HAS BEEN A  PROFESSIONAL  GAMBLER  OR  GAMBLING
 PROMOTER OR WHO FOR OTHER REASONS IS NOT OF GOOD MORAL CHARACTER;
   (C)  A  PUBLIC OFFICER WHO RECEIVES ANY CONSIDERATION, DIRECT OR INDI-
 RECT, AS OWNER OR LESSOR OF PREMISES OFFERED FOR THE PURPOSE OF CONDUCT-
 ING BINGO THEREIN; OR
   (D) A FIRM OR CORPORATION IN WHICH A PERSON DEFINED IN PARAGRAPH  (A),
 (B)  OR  (C)  OF  THIS SUBDIVISION OR A PERSON MARRIED OR RELATED IN THE
 FIRST DEGREE TO SUCH A PERSON HAS GREATER THAN A  TEN  PERCENT  PROPRIE-
 TARY,  EQUITABLE  OR CREDIT INTEREST OR IN WHICH SUCH A PERSON IS ACTIVE
 OR EMPLOYED.
   NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED  TO  BAR  ANY
 FIRM  OR  CORPORATION  THAT IS NOT ORGANIZED FOR PECUNIARY PROFIT AND NO
 PART OF THE NET EARNINGS OF WHICH INURE TO THE BENEFIT OF  ANY  INDIVID-
 UAL, MEMBER OR SHAREHOLDER, FROM BEING AN AUTHORIZED BINGO LESSOR SOLELY

 S. 2009--A                         107                        A. 3009--A
 
 BECAUSE  A  PUBLIC  OFFICER, OR A PERSON MARRIED OR RELATED IN THE FIRST
 DEGREE TO A PUBLIC OFFICER, IS A MEMBER OF, ACTIVE  IN  OR  EMPLOYED  BY
 SUCH FIRM OR CORPORATION.
   2. "AUTHORIZED GAMES OF CHANCE LESSOR" SHALL MEAN AN AUTHORIZED ORGAN-
 IZATION  THAT  HAS  BEEN  GRANTED  A  LESSOR'S  LICENSE  PURSUANT TO THE
 PROVISIONS OF TITLE FOUR OF THIS ARTICLE OR A MUNICIPALITY.
   3. "AUTHORIZED ORGANIZATION" SHALL MEAN ANY  BONA  FIDE  RELIGIOUS  OR
 CHARITABLE  ORGANIZATION  OR  BONA FIDE EDUCATIONAL, FRATERNAL, CIVIC OR
 SERVICE ORGANIZATION OR BONA FIDE ORGANIZATION  OF  VETERANS,  VOLUNTEER
 FIREFIGHTERS OR VOLUNTEER AMBULANCE WORKERS THAT BY ITS CHARTER, CERTIF-
 ICATE OF INCORPORATION, CONSTITUTION OR ACT OF THE LEGISLATURE HAS AMONG
 ITS  DOMINANT  PURPOSES ONE OR MORE OF THE LAWFUL PURPOSES AS DEFINED IN
 THIS SECTION, PROVIDED THAT EACH SHALL OPERATE  WITHOUT  PROFIT  TO  ITS
 MEMBERS  AND PROVIDED THAT EACH SUCH ORGANIZATION HAS ENGAGED IN SERVING
 ONE OR MORE OF THE LAWFUL PURPOSES AS DEFINED  IN  THIS  SECTION  FOR  A
 PERIOD  OF  ONE  YEAR  IMMEDIATELY PRIOR TO APPLYING FOR A LICENSE UNDER
 THIS ARTICLE. NO ORGANIZATION SHALL BE DEEMED AN AUTHORIZED ORGANIZATION
 THAT IS FORMED PRIMARILY FOR THE PURPOSE OF CONDUCTING BINGO OR GAMES OF
 CHANCE AND THAT DOES NOT DEVOTE AT LEAST  SEVENTY-FIVE  PERCENT  OF  ITS
 ACTIVITIES  TO  OTHER THAN CONDUCTING BINGO OR GAMES OF CHANCE. NO POLI-
 TICAL PARTY, POLITICAL CAMPAIGN OR POLITICAL CAMPAIGN COMMITTEE SHALL BE
 DEEMED AN AUTHORIZED ORGANIZATION.
   4. "AUTHORIZED SUPPLIER OF GAMES OF CHANCE EQUIPMENT" SHALL  MEAN  ANY
 PERSON,  FIRM,  PARTNERSHIP, CORPORATION OR ORGANIZATION LICENSED BY THE
 COMMISSION TO SELL OR LEASE GAMES OF CHANCE EQUIPMENT  OR  PARAPHERNALIA
 THAT MEETS THE SPECIFICATIONS AND REGULATIONS ESTABLISHED BY THE COMMIS-
 SION.  NOTHING  HEREIN  SHALL  PREVENT  AN  AUTHORIZED ORGANIZATION FROM
 PURCHASING COMMON ARTICLES, SUCH AS CARDS AND DICE, FROM NORMAL  SOURCES
 OF  SUPPLY OF SUCH ARTICLES OR FROM CONSTRUCTING EQUIPMENT AND PARAPHER-
 NALIA FOR GAMES OF CHANCE FOR ITS OWN USE.  HOWEVER, NO  SUCH  EQUIPMENT
 OR  PARAPHERNALIA,  CONSTRUCTED  OR  OWNED BY AN AUTHORIZED ORGANIZATION
 SHALL BE SOLD OR LEASED TO ANY OTHER  AUTHORIZED  ORGANIZATION,  WITHOUT
 WRITTEN PERMISSION FROM THE COMMISSION.
   5.  "BELL  JARS" SHALL MEAN AND INCLUDE THOSE GAMES IN WHICH A PARTIC-
 IPANT SHALL DRAW A CARD THAT CONTAINS NUMBERS, COLORS  OR  SYMBOLS  THAT
 ARE  COVERED  AND THAT, WHEN UNCOVERED, MAY REVEAL THAT A PRIZE SHALL BE
 AWARDED ON THE BASIS OF A DESIGNATED WINNING NUMBER, COLOR OR SYMBOL  OR
 COMBINATION OF NUMBERS, COLORS OR SYMBOLS. SUCH CARD SHALL BE DRAWN FROM
 A  JAR, VENDING MACHINE OR OTHER SUITABLE DEVICE OR CONTAINER. BELL JARS
 SHALL ALSO INCLUDE SEAL CARDS, COIN BOARDS, EVENT GAMES AND  MERCHANDISE
 BOARDS.
   6.  "BINGO"  SHALL  MEAN  A SPECIFIC GAME OF CHANCE, COMMONLY KNOWN AS
 BINGO OR LOTTO, IN WHICH PRIZES ARE AWARDED ON THE BASIS  OF  DESIGNATED
 NUMBERS  OR  SYMBOLS ON A CARD CONFORMING TO NUMBERS OR SYMBOLS SELECTED
 AT RANDOM.
   7. "BINGO CONTROL LAW" SHALL MEAN TITLE TWO OF THIS ARTICLE.
   8. "BINGO LICENSING LAW" SHALL MEAN TITLE THREE OF THIS ARTICLE.
   9. "BONUS BALL" SHALL MEAN A BINGO GAME THAT IS PLAYED IN  CONJUNCTION
 WITH ONE OR MORE REGULAR OR SPECIAL BINGO GAMES DESIGNATED AS BONUS BALL
 GAMES BY THE LICENSED AUTHORIZED ORGANIZATION DURING ONE OR MORE CONSEC-
 UTIVE  BINGO OCCASIONS IN WHICH A PRIZE IS AWARDED TO THE PLAYER OBTAIN-
 ING A SPECIFIED WINNING BINGO PATTERN WHEN THE LAST NUMBER CALLED BY THE
 LICENSED AUTHORIZED ORGANIZATION IS THE DESIGNATED  BONUS  BALL  NUMBER.
 THE  BONUS BALL PRIZE SHALL BE BASED UPON A PERCENTAGE OF THE SALES FROM
 OPPORTUNITIES TO PARTICIPATE IN BONUS BALL GAMES NOT TO EXCEED  SEVENTY-
 FIVE  PERCENT  OF  THE SUM OF MONEY RECEIVED FROM THE SALE OF BONUS BALL

 S. 2009--A                         108                        A. 3009--A
 
 OPPORTUNITIES OR TEN THOUSAND DOLLARS,  WHICHEVER  SHALL  BE  LESS,  AND
 WHICH  IS  NOT  SUBJECT TO THE PRIZE LIMITS IMPOSED BY SUBDIVISIONS FIVE
 AND SIX OF SECTION FIFTEEN HUNDRED TWENTY-THREE  AND  PARAGRAPH  (A)  OF
 SUBDIVISION  ONE OF SECTION FIFTEEN HUNDRED TWENTY-FIVE OF THIS ARTICLE.
 THE PERCENTAGE SHALL BE SPECIFIED BOTH IN THE APPLICATION FOR THE  BINGO
 LICENSE AND THE LICENSEE.  NOTWITHSTANDING SECTION FIFTEEN HUNDRED THIR-
 TY-ONE  OF  THIS  ARTICLE, NOT MORE THAN ONE DOLLAR SHALL BE CHARGED PER
 PLAYER FOR AN  OPPORTUNITY  TO  PARTICIPATE  IN  ALL  BONUS  BALL  GAMES
 CONDUCTED DURING A SINGLE BINGO OCCASION, AND THE TOTAL AMOUNT COLLECTED
 FROM THE SALE OF BONUS BALL OPPORTUNITIES AND THE AMOUNT OF THE PRIZE TO
 BE AWARDED SHALL BE ANNOUNCED PRIOR TO THE START OF EACH BINGO OCCASION.
   10.  "COIN  BOARD"  AND "MERCHANDISE BOARD" SHALL MEAN A BOARD USED IN
 CONJUNCTION WITH BELL JAR TICKETS THAT  CONTAINS  AND  DISPLAYS  VARIOUS
 COINS  AND/OR  MERCHANDISE  AS PRIZES. A PLAYER HAVING A BELL JAR TICKET
 WITH A NUMBER MATCHING A PRE-DESIGNATED NUMBER REFLECTED  ON  THE  BOARD
 FOR A PRIZE WINS THAT PRIZE.
   11. "CLERK" SHALL MEAN THE CLERK OF A MUNICIPALITY OUTSIDE THE CITY OF
 NEW YORK.
   12.  "DEPARTMENT"  SHALL MEAN THE NEW YORK CITY DEPARTMENT OF CONSUMER
 AFFAIRS.
   13. "EARLY BIRD" SHALL MEAN A BINGO GAME THAT IS PLAYED AS  A  SPECIAL
 GAME,  CONDUCTED  NOT  MORE THAN TWICE DURING A BINGO OCCASION, IN WHICH
 PRIZES ARE AWARDED BASED UPON A PERCENTAGE NOT  TO  EXCEED  SEVENTY-FIVE
 PERCENT  OF  THE  SUM  OF MONEY RECEIVED FROM THE SALE OF THE EARLY BIRD
 CARDS AND THAT IS NEITHER SUBJECT TO THE PRIZE LIMITS IMPOSED BY  SUBDI-
 VISIONS  FIVE  AND SIX OF SECTION FIFTEEN HUNDRED TWENTY-THREE AND PARA-
 GRAPH (A) OF SUBDIVISION ONE OF SECTION FIFTEEN HUNDRED TWENTY-FIVE, NOR
 THE SPECIAL GAME OPPORTUNITY CHARGE LIMIT  IMPOSED  BY  SECTION  FIFTEEN
 HUNDRED  THIRTY-ONE  OF  THIS ARTICLE. THE PERCENTAGE SHALL BE SPECIFIED
 BOTH IN THE APPLICATION FOR BINGO LICENSE AND THE  LICENSE.    NOT  MORE
 THAN  ONE  DOLLAR  SHALL  BE  CHARGED  PER  CARD  WITH  THE TOTAL AMOUNT
 COLLECTED FROM THE SALE OF THE EARLY BIRD CARDS AND THE PRIZE  FOR  EACH
 GAME TO BE ANNOUNCED BEFORE THE COMMENCEMENT OF EACH GAME.
   14.  "EVENT  GAME" SHALL MEAN A BELL JAR GAME IN WHICH CERTAIN WINNERS
 ARE DETERMINED BY THE RANDOM SELECTION OF ONE OR MORE BINGO NUMBERS, THE
 USE OF A SEAL CARD OR BY ANOTHER METHOD APPROVED BY THE COMMISSION.
   15. "FLARE" SHALL MEAN A POSTER DESCRIPTION  OF  THE  BELL  JAR  GAME,
 WHICH SHALL INCLUDE:
   (A)  A  DECLARATION  OF  THE NUMBER OF WINNERS AND AMOUNT OF PRIZES IN
 EACH DEAL;
   (B) THE NUMBER OF PRIZES AVAILABLE IN THE DEAL;
   (C) THE NUMBER OF TICKETS IN EACH DEAL THAT CONTAIN THE STATED PRIZE;
   (D) THE MANUFACTURER'S GAME FORM NUMBER AND THE SERIAL NUMBER  OF  THE
 DEAL,  WHICH  SHALL  BE IDENTICAL TO THE SERIAL NUMBER IMPRINTED ON EACH
 TICKET CONTAINED IN THE DEAL; AND
   (E) SUCH OTHER REQUIREMENTS  AS  THE  RULES  AND  REGULATIONS  OF  THE
 COMMISSION MAY REQUIRE.
   16.  "GAMES  OF CHANCE" SHALL MEAN AND INCLUDE ONLY THE GAMES KNOWN AS
 "MERCHANDISE WHEELS," "COIN BOARDS," "MERCHANDISE BOARDS," "SEAL CARDS,"
 "EVENT GAMES," "RAFFLES," "BELL JARS" AND SUCH OTHER SPECIFIC  GAMES  AS
 MAY  BE AUTHORIZED BY THE COMMISSION, IN WHICH PRIZES ARE AWARDED ON THE
 BASIS OF A DESIGNATED WINNING NUMBER OR NUMBERS, COLOR OR COLORS, SYMBOL
 OR SYMBOLS DETERMINED BY CHANCE, BUT NOT INCLUDING GAMES COMMONLY  KNOWN
 AS  "BINGO"  OR "LOTTO," WHICH ARE CONTROLLED UNDER TITLES TWO AND THREE
 OF THIS ARTICLE, AND ALSO NOT INCLUDING "BOOKMAKING," "POLICY OR NUMBERS
 GAMES" AND "LOTTERY" AS DEFINED IN SECTION 225.00 OF THE PENAL LAW.

 S. 2009--A                         109                        A. 3009--A
 
   17. "LAWFUL PURPOSES" SHALL MEAN ONE OR MORE OF THE FOLLOWING  CAUSES,
 DEEDS OR ACTIVITIES:
   (A) THOSE THAT BENEFIT NEEDY OR DESERVING PERSONS INDEFINITE IN NUMBER
 BY ENHANCING THEIR OPPORTUNITY FOR RELIGIOUS OR EDUCATIONAL ADVANCEMENT,
 BY  RELIEVING THEM FROM DISEASE, SUFFERING OR DISTRESS, OR BY CONTRIBUT-
 ING TO THEIR PHYSICAL WELL-BEING,  BY  ASSISTING  THEM  IN  ESTABLISHING
 THEMSELVES IN LIFE AS WORTHY AND USEFUL CITIZENS, OR BY INCREASING THEIR
 COMPREHENSION  OF  AND DEVOTION TO THE PRINCIPLES UPON WHICH THIS NATION
 WAS FOUNDED AND ENHANCING THEIR LOYALTY TO THEIR GOVERNMENTS;
   (B) THOSE THAT INITIATE, PERFORM OR  FOSTER  WORTHY  PUBLIC  WORKS  OR
 ENABLE OR FURTHER THE ERECTION OR MAINTENANCE OF PUBLIC STRUCTURES;
   (C)  THOSE THAT INITIATE, PERFORM OR FOSTER THE PROVISIONS OF SERVICES
 TO VETERANS BY ENCOURAGING THE GATHERING OF SUCH VETERANS AND ENABLE  OR
 FURTHER THE ERECTION OR MAINTENANCE OF FACILITIES FOR USE BY SUCH VETER-
 ANS  THAT  SHALL BE USED PRIMARILY FOR CHARITABLE OR PATRIOTIC PURPOSES,
 OR THOSE PURPOSES THAT SHALL BE AUTHORIZED BY A BONA  FIDE  ORGANIZATION
 OF  VETERANS,  PROVIDED  HOWEVER  THAT  SUCH  PROCEEDS  ARE DISBURSED IN
 ACCORDANCE WITH THE RULES AND REGULATIONS OF THE COMMISSION AND  SECTION
 FIFTEEN HUNDRED FIFTY-FOUR OF THIS ARTICLE; AND
   (D) THOSE THAT OTHERWISE LESSEN THE BURDENS BORNE BY THE GOVERNMENT OR
 THAT ARE VOLUNTARILY UNDERTAKEN BY AN AUTHORIZED ORGANIZATION TO AUGMENT
 OR  SUPPLEMENT SERVICES THAT THE GOVERNMENT WOULD NORMALLY RENDER TO THE
 PEOPLE, INCLUDING, IN THE CASE OF  VOLUNTEER  FIREFIGHTERS'  ACTIVITIES,
 THE  PURCHASE,  ERECTION  OR  MAINTENANCE OF A BUILDING FOR A FIREHOUSE,
 ACTIVITIES OPEN TO THE PUBLIC FOR THE ENHANCEMENT OF MEMBERSHIP AND  THE
 PURCHASE  OF  EQUIPMENT  THAT CAN REASONABLY BE EXPECTED TO INCREASE THE
 EFFICIENCY OF RESPONSE TO FIRES, ACCIDENTS, PUBLIC CALAMITIES AND  OTHER
 EMERGENCIES.
   18. "LICENSE PERIOD" SHALL MEAN:
   (A)  FOR  BINGO,  THE DURATION OF A LICENSE ISSUED PURSUANT TO SECTION
 FIFTEEN HUNDRED TWENTY-FIVE OF THIS ARTICLE;
   (B) FOR GAMES OF CHANCE OTHER THAN BELL JARS OR RAFFLES, A  PERIOD  OF
 TIME NOT TO EXCEED FOURTEEN CONSECUTIVE HOURS; AND
   (C)  FOR  BELL JARS AND RAFFLES, A PERIOD OF TIME RUNNING FROM JANUARY
 FIRST TO DECEMBER THIRTY-FIRST OF THE YEAR SET FORTH IN THE LICENSE.
   19. "LIMITED-PERIOD BINGO" SHALL  MEAN  THE  CONDUCT  OF  BINGO  BY  A
 LICENSED AUTHORIZED ORGANIZATION, FOR A PERIOD OF NOT MORE THAN SEVEN OF
 TWELVE CONSECUTIVE DAYS IN ANY ONE YEAR, AT A FESTIVAL, BAZAAR, CARNIVAL
 OR  SIMILAR FUNCTION CONDUCTED BY SUCH LICENSED AUTHORIZED ORGANIZATION.
 NO AUTHORIZED ORGANIZATION  LICENSED  TO  CONDUCT  LIMITED-PERIOD  BINGO
 SHALL  BE  OTHERWISE ELIGIBLE TO CONDUCT BINGO PURSUANT TO THIS TITLE IN
 THE SAME YEAR.
   20. "MUNICIPAL OFFICER" SHALL MEAN THE CHIEF LAW  ENFORCEMENT  OFFICER
 OF  A MUNICIPALITY OUTSIDE THE CITY OF NEW YORK, OR IF SUCH MUNICIPALITY
 EXERCISES THE OPTION SET FORTH IN SUBDIVISION  TWO  OF  SECTION  FIFTEEN
 HUNDRED  SIXTY-THREE  OF THIS ARTICLE, THE CHIEF LAW ENFORCEMENT OFFICER
 OF THE COUNTY.
   21. "MUNICIPALITY" SHALL MEAN ANY CITY, TOWN OR  VILLAGE  WITHIN  THIS
 STATE.
   22.  "NET  LEASE"  SHALL MEAN A WRITTEN AGREEMENT BETWEEN A LESSOR AND
 LESSEE  UNDER  THE  TERMS  OF  WHICH  THE  LESSEE  IS  ENTITLED  TO  THE
 POSSESSION,  USE  OR  OCCUPANCY  OF  THE WHOLE OR PART OF ANY COMMERCIAL
 PREMISES FOR WHICH THE LESSEE PAYS  RENT  TO  THE  LESSOR  AND  LIKEWISE
 UNDERTAKES  TO PAY SUBSTANTIALLY ALL OF THE REGULARLY RECURRING EXPENSES
 INCIDENT TO THE OPERATION AND MAINTENANCE OF SUCH LEASED PREMISES.
   23. "NET PROCEEDS" SHALL MEAN:

 S. 2009--A                         110                        A. 3009--A
 
   (A) IN RELATION TO THE GROSS RECEIPTS FROM ONE OR  MORE  OCCASIONS  OF
 BINGO,  THE  AMOUNT  THAT  REMAINS  AFTER  DEDUCTING THE REASONABLE SUMS
 NECESSARILY AND ACTUALLY EXPENDED  FOR  BINGO  SUPPLIES  AND  EQUIPMENT,
 PRIZES,  STATED  RENTAL,  IF  ANY,  BOOKKEEPING  OR  ACCOUNTING SERVICES
 ACCORDING  TO  A  SCHEDULE OF COMPENSATION PRESCRIBED BY THE COMMISSION,
 JANITORIAL SERVICES AND UTILITY SUPPLIES IF ANY, LICENSE FEES,  AND  THE
 COST OF BUS TRANSPORTATION, IF AUTHORIZED BY THE COMMISSION;
   (B)  IN RELATION TO BELL JARS, THE DIFFERENCE BETWEEN THE IDEAL HANDLE
 FROM THE SALE OF BELL JAR TICKETS, SEAL CARDS,  MERCHANDISE  BOARDS  AND
 COIN  BOARDS  LESS  THE  AMOUNT OF MONEY PAID OUT IN PRIZES AND LESS THE
 PURCHASE PRICE OF THE BELL JAR DEAL, SEAL CARD DEAL,  MERCHANDISE  BOARD
 DEAL  OR  COIN  BOARD  DEAL.   ADDITIONALLY, A CREDIT SHALL BE PERMITTED
 AGAINST THE NET PROCEEDS FEE TENDERED TO THE COMMISSION FOR UNSOLD TICK-
 ETS OF THE BELL JAR DEAL SO LONG AS THE UNSOLD  TICKETS  HAVE  THE  SAME
 SERIAL AND FORM NUMBER AS THE TICKETS FOR WHICH THE FEE IS RENDERED;
   (C) IN RELATION TO THE GROSS RECEIPTS FROM ONE OR MORE LICENSE PERIODS
 OF  GAMES  OF  CHANCE,  THE AMOUNT THAT SHALL REMAIN AFTER DEDUCTING THE
 REASONABLE SUMS NECESSARILY  AND  ACTUALLY  EXPENDED  FOR  SUPPLIES  AND
 EQUIPMENT, PRIZES, SECURITY-PERSONNEL, STATED RENTAL IF ANY, BOOKKEEPING
 OR   ACCOUNTING   SERVICES  ACCORDING  TO  A  SCHEDULE  OF  COMPENSATION
 PRESCRIBED BY THE COMMISSION, JANITORIAL SERVICES AND UTILITY  SUPPLIES,
 IF  ANY, LICENSE FEES, AND THE COST OF BUS TRANSPORTATION, IF AUTHORIZED
 BY THE CLERK OR DEPARTMENT;
   (D) IN RELATION TO THE GROSS RENT RECEIVED BY AN ORGANIZATION LICENSED
 TO CONDUCT BINGO FOR THE USE OF ITS PREMISES BY  ANOTHER  LICENSEE,  THE
 AMOUNT  THAT REMAINS AFTER DEDUCTING THE REASONABLE SUMS NECESSARILY AND
 ACTUALLY EXPENDED FOR JANITORIAL SERVICES AND UTILITY SUPPLIES  DIRECTLY
 ATTRIBUTABLE THERETO IF ANY; AND
   (E)  IN  RELATION TO THE GROSS RENT RECEIVED BY AN AUTHORIZED GAMES OF
 CHANCE LESSOR FOR THE USE OF ITS PREMISES BY A GAME OF CHANCE  LICENSEE,
 THE  AMOUNT THAT SHALL REMAIN AFTER DEDUCTING THE REASONABLE SUMS NECES-
 SARILY  AND  ACTUALLY  EXPENDED  FOR  JANITORIAL  SERVICES  AND  UTILITY
 SUPPLIES DIRECTLY ATTRIBUTABLE THERETO IF ANY.
   24. (A) "ONE OCCASION" SHALL MEAN THE SUCCESSIVE OPERATIONS OF ANY ONE
 SINGLE  TYPE  OF GAME OF CHANCE THAT RESULTS IN THE AWARDING OF A SERIES
 OF PRIZES AMOUNTING TO FIVE HUNDRED  DOLLARS  OR  FOUR  HUNDRED  DOLLARS
 DURING  ANY  ONE  LICENSE  PERIOD,  IN ACCORDANCE WITH THE PROVISIONS OF
 SUBDIVISION EIGHT OF SECTION FIFTEEN HUNDRED FIFTY-FOUR OF THIS ARTICLE,
 AS THE CASE MAY BE.
   (B) FOR PURPOSES OF THE GAME OF CHANCE KNOWN AS A MERCHANDISE WHEEL OR
 A RAFFLE, "ONE OCCASION" SHALL MEAN THE SUCCESSIVE OPERATIONS OF ANY ONE
 SUCH MERCHANDISE WHEEL OR RAFFLE FOR WHICH THE  LIMIT  ON  A  SERIES  OF
 PRIZES PROVIDED BY SUBDIVISION SIX OF SECTION FIFTEEN HUNDRED FIFTY-FOUR
 OF THIS ARTICLE SHALL APPLY.
   (C) FOR PURPOSES OF THE GAME OF CHANCE KNOWN AS A BELL JAR, "ONE OCCA-
 SION" SHALL MEAN THE SUCCESSIVE OPERATION OF ANY ONE SUCH BELL JAR, SEAL
 CARD,  EVENT  GAME, COIN BOARD, OR MERCHANDISE BOARD THAT RESULTS IN THE
 AWARDING OF A SERIES OF PRIZES AMOUNTING TO SIX THOUSAND DOLLARS.
   (D) FOR THE PURPOSES OF THE GAME OF CHANCE KNOWN AS RAFFLE "ONE  OCCA-
 SION"  SHALL  MEAN A CALENDAR YEAR DURING WHICH SUCCESSIVE OPERATIONS OF
 SUCH GAME ARE CONDUCTED.
   25. "OPERATION" SHALL MEAN, IN REGARD TO A GAME OF CHANCE, THE PLAY OF
 A SINGLE TYPE OF GAME OF CHANCE NECESSARY TO DETERMINE  THE  OUTCOME  OR
 WINNERS  EACH TIME WAGERS ARE MADE. A SINGLE DRAWING OF A WINNING TICKET
 OR OTHER RECEIPT IN A RAFFLE SHALL BE DEEMED ONE OPERATION.

 S. 2009--A                         111                        A. 3009--A

   26. "PREMISES" SHALL MEAN, IN REGARD TO GAMES OF CHANCE, A  DESIGNATED
 AREA  WITHIN A BUILDING, HALL, TENT OR GROUNDS REASONABLY IDENTIFIED FOR
 THE CONDUCT OF GAMES OF CHANCE. NOTHING HEREIN SHALL REQUIRE  SUCH  AREA
 TO BE ENCLOSED.
   27.  "PRIZE,"  WHERE  SUPERCARD  IS PLAYED AS SET FORTH IN SUBDIVISION
 THIRTY-THREE OF THIS SECTION, SHALL MEAN THE  SUM  OF  MONEY  OR  ACTUAL
 VALUE  OF  MERCHANDISE  AWARDED  TO THE WINNER OR WINNERS ON A GAME CARD
 DURING A GAME OF BINGO AND THE SUM OF MONEY OR ACTUAL VALUE OF  MERCHAN-
 DISE  AWARDED  TO  THE WINNER OR WINNERS ON A SUPERCARD IN EXCESS OF THE
 TOTAL RECEIPTS DERIVED FROM THE SALE OF  SUPERCARDS  FOR  THAT  SPECIFIC
 GAME.
   28.  "RAFFLE"  SHALL MEAN AND INCLUDE THOSE GAMES OF CHANCE IN WHICH A
 PARTICIPANT PAYS MONEY IN RETURN FOR A TICKET OR OTHER  RECEIPT  AND  IN
 WHICH  A  PRIZE  IS AWARDED ON THE BASIS OF A WINNING NUMBER OR NUMBERS,
 COLOR OR COLORS, OR SYMBOL  OR  SYMBOLS  DESIGNATED  ON  THE  TICKET  OR
 RECEIPT, DETERMINED BY CHANCE AS A RESULT OF:
   (A) A DRAWING FROM AMONG THOSE TICKETS OR RECEIPTS PREVIOUSLY SOLD; OR
   (B)  A  RANDOM  EVENT, THE RESULTS OF WHICH CORRESPOND WITH TICKETS OR
 RECEIPTS PREVIOUSLY SOLD.
   29. "SEAL CARDS" SHALL MEAN A BOARD OR  PLACARD  USED  IN  CONJUNCTION
 WITH  A  DEAL  OF  THE  SAME  SERIAL  NUMBER  THAT  CONTAINS ONE OR MORE
 CONCEALED AREAS THAT, WHEN REMOVED OR  OPENED,  REVEAL  A  PREDESIGNATED
 WINNING NUMBER, LETTER OR SYMBOL LOCATED ON THE BOARD OR PLACARD. A SEAL
 CARD  USED  IN  CONJUNCTION  WITH AN EVENT GAME SHALL NOT BE REQUIRED TO
 CONTAIN LINES FOR PROSPECTIVE SEAL WINNERS TO SIGN THEIR NAME.
   30. "SERIES OF PRIZES" SHALL MEAN THE TOTAL AMOUNT  OF  SINGLE  PRIZES
 MINUS  THE  TOTAL AMOUNT OF WAGERS LOST DURING THE SUCCESSIVE OPERATIONS
 OF A SINGLE TYPE OF GAME OF CHANCE, EXCEPT THAT FOR  MERCHANDISE  WHEELS
 AND  RAFFLES, "SERIES OF PRIZES" SHALL MEAN THE SUM OF CASH AND THE FAIR
 MARKET VALUE OF MERCHANDISE AWARDED AS SINGLE PRIZES DURING THE  SUCCES-
 SIVE  OPERATIONS  OF ANY SINGLE MERCHANDISE WHEEL OR RAFFLE. IN THE GAME
 OF RAFFLE, A SERIES OF PRIZES MAY INCLUDE A PERCENTAGE  OF  THE  SUM  OF
 CASH RECEIVED FROM THE SALE OF RAFFLE TICKETS.
   31. "SINGLE PRIZE" SHALL MEAN THE SUM OF MONEY OR FAIR MARKET VALUE OF
 MERCHANDISE  OR  COINS  AWARDED  TO  A  PARTICIPANT BY A GAMES OF CHANCE
 LICENSEE IN ANY ONE OPERATION OF A SINGLE TYPE  OF  GAME  OF  CHANCE  IN
 EXCESS OF HIS OR HER WAGER.
   32.  "SINGLE  TYPE  OF  GAME"  SHALL MEAN THE GAMES OF CHANCE KNOWN AS
 MERCHANDISE  WHEELS,  COIN  BOARDS,  MERCHANDISE  BOARDS,  EVENT  GAMES,
 RAFFLES  AND BELL JARS AND EACH OTHER SPECIFIC GAME OF CHANCE AUTHORIZED
 BY THE COMMISSION.
   33. "SUPERCARD" SHALL MEAN A BINGO CARD ON WHICH PRIZES  ARE  AWARDED,
 WHICH  CARD  IS  SELECTED  BY  THE  PLAYER,  CONTAINING  FIVE DESIGNATED
 NUMBERS, COLORS OR SYMBOLS, CORRESPONDING TO THE LETTERS B, I, N, G,  O,
 DISPLAYED  ON  THE BINGO BOARD OF THE BINGO PREMISES OPERATOR, WHICH CAN
 BE PLAYED CONCURRENTLY WITH THE OTHER BINGO CARDS PLAYED DURING THE GAME
 OF BINGO.
   § 1501. FORMS. THE COMMISSION SHALL, TO THE GREATEST EXTENT  PRACTICA-
 BLE,  MAKE  FORMS  AND  APPLICATIONS REQUIRED BY THIS ARTICLE OR RELATED
 RULES AND REGULATIONS OF THE COMMISSION AVAILABLE IN ELECTRONIC  FORMATS
 THAT  MINIMIZE  PAPERWORK  AND  ARE  DESIGNED TO MAXIMIZE EFFICIENCY FOR
 AUTHORIZED ORGANIZATIONS, MUNICIPALITIES AND THE COMMISSION.
   § 1502. PARTICIPATION BY PERSONS UNDER THE AGE OF  EIGHTEEN.  1.    NO
 PERSON  UNDER  THE  AGE OF EIGHTEEN YEARS SHALL BE PERMITTED TO PLAY ANY
 GAME OF BINGO OR ANY GAME OF CHANCE CONDUCTED PURSUANT TO THIS ARTICLE.

 S. 2009--A                         112                        A. 3009--A
 
   2. NO PERSON UNDER THE AGE OF EIGHTEEN YEARS  SHALL  BE  PERMITTED  TO
 CONDUCT,  OPERATE  OR ASSIST IN THE CONDUCT OF ANY GAME OF BINGO OR GAME
 OF CHANCE CONDUCTED PURSUANT TO THIS ARTICLE.
   3.  PERSONS UNDER THE AGE OF EIGHTEEN YEARS MAY BE PERMITTED TO ATTEND
 GAMES OF CHANCE AT THE DISCRETION OF THE GAMES OF CHANCE LICENSEE.
   § 1503. SUNDAYS. A MUNICIPALITY MAY  RESTRICT  A  LICENSE  TO  CONDUCT
 BINGO  OR  GAMES OF CHANCE BY PROVIDING THAT NO BINGO OR GAMES OF CHANCE
 SHALL BE CONDUCTED ON THE FIRST DAY  OF  THE  WEEK,  COMMONLY  KNOWN  AS
 SUNDAY, IF THE PROVISIONS OF A LOCAL LAW OR AN ORDINANCE DULY ADOPTED BY
 THE GOVERNING BODY OF THE MUNICIPALITY ISSUING THE LICENSE PROHIBITS THE
 CONDUCT OF BINGO OR GAMES OF CHANCE PURSUANT TO THIS TITLE ON SUCH DAYS.
   §  1504. ADVERTISING OF CHARITABLE GAMES. A LICENSEE MAY ADVERTISE THE
 CONDUCT OF AN OCCASION OF BINGO OR GAMES OF CHANCE EVENT TO THE  GENERAL
 PUBLIC  BY  MEANS OF NEWSPAPER, RADIO, CIRCULAR, HANDBILL AND POSTER, BY
 ONE SIGN NOT EXCEEDING SIXTY SQUARE FEET IN AREA, WHICH MAY BE DISPLAYED
 ON OR ADJACENT TO THE PREMISES OWNED OR OCCUPIED BY A  LICENSED  AUTHOR-
 IZED  ORGANIZATION,  BY OTHER SIGNS AS MAY BE PERMITTED BY THE RULES AND
 REGULATIONS OF THE COMMISSION AND THROUGH THE INTERNET AS MAY BE PERMIT-
 TED BY THE RULES AND REGULATIONS OF THE COMMISSION. WHEN AN ORGANIZATION
 IS LICENSED OR AUTHORIZED TO CONDUCT BINGO OCCASIONS OR GAMES OF  CHANCE
 EVENTS ON THE PREMISES OF ANOTHER LICENSED AUTHORIZED ORGANIZATION OR OF
 AN  AUTHORIZED  BINGO  LESSOR  OR AUTHORIZED GAMES OF CHANCE LESSOR, ONE
 ADDITIONAL SUCH SIGN MAY BE DISPLAYED ON OR ADJACENT TO THE PREMISES  IN
 WHICH  THE  OCCASIONS  ARE  TO  BE  CONDUCTED.  ADDITIONAL  SIGNS MAY BE
 DISPLAYED UPON ANY FIREFIGHTING  EQUIPMENT  BELONGING  TO  ANY  LICENSED
 AUTHORIZED  ORGANIZATION  THAT  IS A VOLUNTEER FIRE COMPANY, OR UPON ANY
 EQUIPMENT OF A FIRST AID OR RESCUE SQUAD IN AND THROUGHOUT THE COMMUNITY
 SERVED BY SUCH VOLUNTEER FIRE COMPANY OR SUCH FIRST AID OR RESCUE SQUAD,
 AS THE CASE MAY BE. ALL ADVERTISEMENTS SHALL BE LIMITED TO:
   (A) THE DESCRIPTION OF SUCH EVENT AS "BINGO,"  "GAMES  OF  CHANCE"  OR
 "CASINO NIGHT," AS THE CASE MAY BE;
   (B)  THE  NAME  OF  THE  AUTHORIZED ORGANIZATION CONDUCTING SUCH BINGO
 OCCASIONS OR GAMES OF CHANCE;
   (C) THE LICENSE NUMBER OF THE AUTHORIZED ORGANIZATION AS  ASSIGNED  BY
 THE CLERK OR DEPARTMENT;
   (D) THE PRIZES OFFERED; AND
   (E)  THE  DATE,  LOCATION  AND  TIME OF THE BINGO OCCASION OR GAMES OF
 CHANCE EVENT.
   § 1505. SANCTIONS FOR VIOLATIONS. THE COMMISSION SHALL HAVE THE  POWER
 TO  ISSUE  LETTERS  OF REPRIMAND OR IMPOSE FINES IN ANY AMOUNT UP TO THE
 MAXIMUM AUTHORIZED BY SECTION ONE HUNDRED SIXTEEN OF  THIS  CHAPTER  FOR
 ANY  VIOLATION  OF  THIS  ARTICLE  OR  THE  RULES AND REGULATIONS OF THE
 COMMISSION. A PERSON OR ENTITY THAT HAS BEEN FINED MAY REQUEST A DE NOVO
 HEARING BEFORE THE COMMISSION TO REVIEW AND DETERMINE SUCH FINE,  PURSU-
 ANT TO THE RULES AND REGULATIONS OF THE COMMISSION.
   § 1506. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE OR THE APPLICA-
 TION  THEREOF  TO  ANY  MUNICIPALITY,  PERSON  OR CIRCUMSTANCES SHALL BE
 ADJUDGED UNCONSTITUTIONAL BY ANY COURT OF  COMPETENT  JURISDICTION,  THE
 REMAINDER  OF  THIS  ARTICLE OR THE APPLICATION THEREOF TO OTHER MUNICI-
 PALITIES, PERSONS AND CIRCUMSTANCES SHALL NOT BE AFFECTED  THEREBY,  AND
 THE  LEGISLATURE  HEREBY  DECLARES THAT IT WOULD HAVE ENACTED THIS TITLE
 WITHOUT THE INVALID PROVISION OR APPLICATION, AS THE CASE  MAY  BE,  HAD
 SUCH INVALIDITY BEEN APPARENT.
                                  TITLE 2
                               BINGO CONTROL
 SECTION 1510. SHORT TITLE.

 S. 2009--A                         113                        A. 3009--A
 
         1511. PURPOSE OF TITLE.
         1512. OTHER AGENCY ASSISTANCE.
         1513. POWERS AND DUTIES OF THE COMMISSION.
         1514. HEARINGS; IMMUNITY.
         1515. PLACE OF INVESTIGATIONS AND HEARINGS; WITNESSES; BOOKS AND
                 DOCUMENTS.
         1516. PRIVILEGE AGAINST SELF-INCRIMINATION.
         1517. FILING AND AVAILABILITY OF RULES AND REGULATIONS.
         1518.  MUNICIPALITY TO FILE COPIES OF LOCAL LAWS AND ORDINANCES;
                 REPORTS.
   § 1510. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
 BINGO CONTROL LAW.
   § 1511. PURPOSE OF TITLE. THE PURPOSE OF THIS TITLE  IS  TO  IMPLEMENT
 SECTION  NINE  OF  ARTICLE  ONE OF THE STATE CONSTITUTION, AS AMENDED BY
 VOTE OF THE PEOPLE AT THE GENERAL ELECTION IN NOVEMBER, NINETEEN HUNDRED
 FIFTY-SEVEN. THE LEGISLATURE HEREBY DECLARES THAT THE RAISING  OF  FUNDS
 FOR  THE  PROMOTION  OF  BONA  FIDE CHARITABLE, EDUCATIONAL, SCIENTIFIC,
 HEALTH, RELIGIOUS, CIVIC AND PATRIOTIC CAUSES  AND  UNDERTAKINGS,  WHERE
 THE  BENEFICIARIES  ARE INDEFINITE, IS IN THE PUBLIC INTEREST. IT HEREBY
 FINDS THAT, AS CONDUCTED PRIOR TO THE ENACTMENT OF THIS TITLE, BINGO WAS
 THE SUBJECT OF EXPLOITATION  BY  PROFESSIONAL  GAMBLERS,  PROMOTERS  AND
 COMMERCIAL  INTERESTS.  IT  IS  HEREBY  DECLARED TO BE THE POLICY OF THE
 LEGISLATURE THAT ALL PHASES OF THE SUPERVISION, LICENSING AND THE  REGU-
 LATION  OF BINGO AND OF THE CONDUCT OF BINGO GAMES, SHOULD BE CONTROLLED
 CLOSELY AND THAT THE LAWS AND REGULATIONS PERTAINING THERETO  SHOULD  BE
 CONSTRUED  STRICTLY  AND ENFORCED RIGIDLY; THAT THE CONDUCT OF BINGO AND
 ALL ATTENDANT ACTIVITIES SHOULD BE SO REGULATED AND ADEQUATE CONTROLS SO
 INSTITUTED AS TO DISCOURAGE COMMERCIALIZATION IN ALL ITS FORMS,  INCLUD-
 ING  THE  RENTAL OF COMMERCIAL PREMISES FOR BINGO GAMES, AND TO ENSURE A
 MAXIMUM AVAILABILITY OF THE NET PROCEEDS OF BINGO EXCLUSIVELY FOR APPLI-
 CATION TO THE WORTHY CAUSES AND UNDERTAKINGS SPECIFIED HEREIN; THAT  THE
 ONLY  JUSTIFICATION  FOR THIS TITLE IS TO FOSTER AND SUPPORT SUCH WORTHY
 CAUSES AND UNDERTAKINGS, AND THAT THE MANDATE OF SECTION NINE OF ARTICLE
 ONE OF THE STATE CONSTITUTION, AS AMENDED,  SHOULD  BE  CARRIED  OUT  BY
 RIGID  REGULATION  TO  PREVENT  COMMERCIALIZED GAMBLING, PREVENT PARTIC-
 IPATION BY CRIMINAL AND  OTHER  UNDESIRABLE  ELEMENTS  AND  PREVENT  THE
 DIVERSION OF FUNDS FROM THE PURPOSES HEREIN AUTHORIZED.
   §  1512.  OTHER  AGENCY ASSISTANCE. TO EFFECTUATE THE PURPOSES OF THIS
 TITLE, THE GOVERNOR  MAY  AUTHORIZE  ANY  DEPARTMENT,  DIVISION,  BOARD,
 BUREAU,  COMMISSION  OR AGENCY OF THE STATE OR IN ANY POLITICAL SUBDIVI-
 SION THEREOF TO PROVIDE SUCH FACILITIES, ASSISTANCE  AND  DATA  AS  WILL
 ENABLE  THE COMMISSION PROPERLY TO CARRY OUT ITS ACTIVITIES AND EFFECTU-
 ATE ITS PURPOSES HEREUNDER.
   § 1513. POWERS AND DUTIES OF THE COMMISSION. 1. THE  COMMISSION  SHALL
 HAVE THE POWER AND IT SHALL BE ITS DUTY TO:
   (A) SUPERVISE THE ADMINISTRATION OF THE BINGO LICENSING LAW AND ADOPT,
 AMEND AND REPEAL RULES AND REGULATIONS GOVERNING THE ISSUANCE AND AMEND-
 MENT  OF  LICENSES  THEREUNDER  AND  THE  CONDUCTING OF BINGO UNDER SUCH
 LICENSES, WHICH RULES AND REGULATIONS SHALL HAVE THE FORCE AND EFFECT OF
 LAW AND SHALL BE BINDING UPON ALL MUNICIPALITIES  ISSUING  LICENSES  AND
 UPON  LICENSEES  THEREUNDER  AND LICENSEES OF THE COMMISSION, TO THE END
 THAT SUCH LICENSES SHALL BE ISSUED TO QUALIFIED LICENSEES ONLY AND  THAT
 SAID BINGO GAMES SHALL BE FAIRLY AND PROPERLY CONDUCTED FOR THE PURPOSES
 AND  IN  THE  MANNER  IN  THE SAID BINGO LICENSING LAW PRESCRIBED AND TO
 PREVENT THE BINGO GAMES THEREBY AUTHORIZED TO BE  CONDUCTED  FROM  BEING
 CONDUCTED  FOR  COMMERCIAL PURPOSES OR PURPOSES OTHER THAN THOSE THEREIN

 S. 2009--A                         114                        A. 3009--A
 
 AUTHORIZED, PARTICIPATED IN BY CRIMINAL OR  OTHER  UNDESIRABLE  ELEMENTS
 AND  THE  FUNDS  DERIVED  FROM  THE  BINGO GAMES BEING DIVERTED FROM THE
 PURPOSES AUTHORIZED, AND, TO PROVIDE UNIFORMITY IN THE ADMINISTRATION OF
 SAID  LAW  THROUGHOUT THE STATE, THE COMMISSION SHALL PRESCRIBE FORMS OF
 APPLICATION FOR LICENSES, LICENSES, AMENDMENT OF  LICENSES,  REPORTS  OF
 THE  CONDUCT  OF  BINGO GAMES AND OTHER MATTERS INCIDENT TO THE ADMINIS-
 TRATION OF SUCH LAW;
   (B) CONDUCT, ANYWHERE WITHIN THE STATE, INVESTIGATIONS OF THE ADMINIS-
 TRATION, ENFORCEMENT AND POTENTIAL OR ACTUAL  VIOLATIONS  OF  THE  BINGO
 LICENSING LAW AND OF THE RULES AND REGULATIONS OF THE COMMISSION;
   (C)  REVIEW  ALL DETERMINATIONS AND ACTIONS OF THE MUNICIPAL GOVERNING
 BODY IN ISSUING AN INITIAL LICENSE AND REVIEW THE ISSUANCE OF SUBSEQUENT
 LICENSES AND, AFTER HEARING, REVOKE THOSE LICENSES THAT DO  NOT  IN  ALL
 RESPECTS  MEET  THE  REQUIREMENTS  OF THIS TITLE AND THE RULES AND REGU-
 LATIONS OF THE COMMISSION;
   (D) SUSPEND OR REVOKE A LICENSE, AFTER HEARING, FOR ANY  VIOLATION  OF
 THE PROVISIONS OF THIS TITLE OR THE RULES AND REGULATIONS OF THE COMMIS-
 SION;
   (E)  HEAR  APPEALS FROM THE DETERMINATIONS AND ACTION OF THE MUNICIPAL
 GOVERNING BODY IN CONNECTION WITH THE REFUSING TO  ISSUE  LICENSES,  THE
 SUSPENSION AND REVOCATION OF LICENSES AND THE IMPOSITION OF FINES IN THE
 MANNER PRESCRIBED BY LAW AND THE ACTION AND DETERMINATION OF THE COMMIS-
 SION  UPON ANY SUCH APPEAL SHALL BE BINDING UPON THE MUNICIPAL GOVERNING
 BODY AND ALL PARTIES THERETO;
   (F) INITIATE PROSECUTIONS FOR VIOLATIONS OF  THIS  TITLE  AND  OF  THE
 BINGO LICENSING LAW;
   (G)  CARRY ON CONTINUOUS STUDY OF THE OPERATION OF THE BINGO LICENSING
 LAW TO ASCERTAIN FROM TIME  TO  TIME  DEFECTS  THEREIN  JEOPARDIZING  OR
 THREATENING  TO  JEOPARDIZE  THE PURPOSES OF THIS TITLE AND TO FORMULATE
 AND RECOMMEND CHANGES IN SUCH LAW AND IN OTHER LAWS OF  THE  STATE  THAT
 THE COMMISSION MAY DETERMINE TO BE NECESSARY FOR THE REALIZATION OF SUCH
 PURPOSES,  AND  TO THE SAME END TO MAKE A CONTINUOUS STUDY OF THE OPERA-
 TION AND ADMINISTRATION OF SIMILAR LAWS THAT MAY BE IN EFFECT  IN  OTHER
 STATES OF THE UNITED STATES;
   (H) SUPERVISE THE DISPOSITION OF ALL FUNDS DERIVED FROM THE CONDUCT OF
 BINGO BY AUTHORIZED ORGANIZATIONS NOT CURRENTLY LICENSED TO CONDUCT SUCH
 BINGO GAMES; AND
   (I)  ISSUE  AN IDENTIFICATION NUMBER TO AN APPLICANT AUTHORIZED ORGAN-
 IZATION IF THE COMMISSION DETERMINES THAT THE  APPLICANT  SATISFIES  THE
 REQUIREMENTS OF THE BINGO LICENSING LAW AND THE RULES AND REGULATIONS OF
 THE COMMISSION.
   2. (A) THE COMMISSION SHALL HAVE THE POWER TO ISSUE OR, AFTER HEARING,
 REFUSE  TO  ISSUE  A LICENSE PERMITTING A PERSON, FIRM OR CORPORATION TO
 SELL OR DISTRIBUTE TO ANY OTHER PERSON, FIRM OR CORPORATION  ENGAGED  IN
 BUSINESS  AS A WHOLESALER, JOBBER, DISTRIBUTOR OR RETAILER OF ALL CARDS,
 BOARDS, SHEETS, PADS AND  ALL  OTHER  SUPPLIES,  DEVICES  AND  EQUIPMENT
 DESIGNED  FOR  USE IN THE PLAY OF BINGO BY AN ORGANIZATION DULY LICENSED
 TO CONDUCT BINGO GAMES OR TO  SELL  OR  DISTRIBUTE  ANY  SUCH  MATERIALS
 DIRECTLY  TO  SUCH AN ORGANIZATION. FOR THE PURPOSES OF THIS SECTION THE
 WORDS "SELL  OR  DISTRIBUTE"  SHALL  INCLUDE,  WITHOUT  LIMITATION,  THE
 FOLLOWING  ACTIVITIES: OFFERING FOR SALE, RECEIVING, HANDLING, MAINTAIN-
 ING, STORING THE SAME ON BEHALF OF SUCH AN ORGANIZATION, DISTRIBUTING OR
 PROVIDING THE SAME TO SUCH AN ORGANIZATION  AND  OFFERING  FOR  SALE  OR
 LEASE  BINGO DEVICES AND EQUIPMENT. EACH SUCH LICENSE SHALL BE VALID FOR
 ONE YEAR.

 S. 2009--A                         115                        A. 3009--A
 
   (B) (1) NO PERSON, FIRM OR CORPORATION,  OTHER  THAN  AN  ORGANIZATION
 THAT  IS OR HAS BEEN DURING THE PRECEDING TWELVE MONTHS DULY LICENSED TO
 CONDUCT BINGO GAMES, SHALL SELL OR DISTRIBUTE BINGO SUPPLIES  OR  EQUIP-
 MENT  WITHOUT  HAVING  FIRST  OBTAINED  A  LICENSE THEREFOR UPON WRITTEN
 APPLICATION  MADE,  VERIFIED  AND  FILED WITH THE COMMISSION IN THE FORM
 PRESCRIBED BY THE RULES AND REGULATIONS OF THE COMMISSION.
   (2) THE COMMISSION, AS A PART  OF  ITS  DETERMINATION  CONCERNING  THE
 APPLICANT'S SUITABILITY FOR LICENSING AS A BINGO SUPPLIER, SHALL REQUIRE
 THE  APPLICANT  TO  FURNISH  TO THE COMMISSION TWO SETS OF FINGERPRINTS.
 SUCH FINGERPRINTS SHALL BE SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE
 SERVICES FOR A STATE CRIMINAL HISTORY RECORD CHECK, AS DEFINED IN SUBDI-
 VISION ONE OF SECTION THREE THOUSAND THIRTY-FIVE OF THE  EDUCATION  LAW,
 AND  MAY  BE  SUBMITTED  TO  THE  FEDERAL  BUREAU OF INVESTIGATION FOR A
 NATIONAL CRIMINAL HISTORY RECORD CHECK.
   (3) IN EACH SUCH APPLICATION FOR A LICENSE UNDER THIS SECTION SHALL BE
 STATED:
   (I) THE NAME AND ADDRESS OF THE APPLICANT;
   (II) THE NAMES AND ADDRESSES OF ITS OFFICERS, DIRECTORS,  SHAREHOLDERS
 OR PARTNERS;
   (III)  THE  AMOUNT  OF GROSS RECEIPTS REALIZED ON THE SALE OR DISTRIB-
 UTION OF BINGO SUPPLIES AND EQUIPMENT  TO  DULY  LICENSED  ORGANIZATIONS
 DURING THE LAST PRECEDING CALENDAR OR FISCAL YEAR; AND
   (IV)  SUCH  OTHER INFORMATION AS SHALL BE PRESCRIBED BY SUCH RULES AND
 REGULATIONS.
   (4) THE FEE FOR SUCH LICENSE SHALL BE AS PRESCRIBED BY  REGULATION  OF
 THE  COMMISSION,  WHICH  SHALL  TAKE  INTO ACCOUNT THE QUANTITY OF GROSS
 SALES OF THE APPLICANT.
   (C) THE FOLLOWING SHALL BE INELIGIBLE FOR SUCH A LICENSE:
   (1) A PERSON CONVICTED OF A CRIME IF THERE IS  A  DIRECT  RELATIONSHIP
 BETWEEN  ONE OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY
 OF BINGO, CONSIDERING THE FACTORS SET FORTH  IN  SECTION  SEVEN  HUNDRED
 FIFTY-THREE OF THE CORRECTION LAW;
   (2)  A  PERSON  WHO  IS OR HAS BEEN A PROFESSIONAL GAMBLER OR GAMBLING
 PROMOTER OR WHO FOR OTHER REASONS IS NOT OF GOOD MORAL CHARACTER;
   (3) A PUBLIC OFFICER OR EMPLOYEE;
   (4) AN OPERATOR OR PROPRIETOR OF A COMMERCIAL HALL DULY LICENSED UNDER
 THE BINGO LICENSING LAW; AND
   (5) A FIRM OR CORPORATION IN WHICH A PERSON  DEFINED  IN  SUBPARAGRAPH
 ONE,  TWO,  THREE  OR  FOUR  OF  THIS  PARAGRAPH, OR A PERSON MARRIED OR
 RELATED IN THE FIRST DEGREE TO SUCH A PERSON, HAS  GREATER  THAN  A  TEN
 PERCENT  PROPRIETARY,  EQUITABLE  OR  CREDIT INTEREST OR IN WHICH SUCH A
 PERSON IS ACTIVE OR EMPLOYED.
   (D) THE COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE EXAMINED
 THE BOOKS AND RECORDS OF ANY APPLICANT FOR A LICENSE, OR  ANY  LICENSEE,
 UNDER  THIS  SECTION. ANY INFORMATION SO RECEIVED SHALL NOT BE DISCLOSED
 EXCEPT SO FAR AS MAY BE NECESSARY FOR THE PURPOSE OF  CARRYING  OUT  THE
 PROVISIONS OF THIS ARTICLE.
   (E)  ANY  SOLICITATION  OF  AN  ORGANIZATION LICENSED TO CONDUCT BINGO
 GAMES, TO PURCHASE OR INDUCE THE PURCHASE OF BINGO SUPPLIES  AND  EQUIP-
 MENT, OR ANY REPRESENTATION, STATEMENT OR INQUIRY DESIGNED OR REASONABLY
 TENDING  TO  INFLUENCE  SUCH AN ORGANIZATION TO PURCHASE THE SAME, OTHER
 THAN BY A PERSON LICENSED  OR  OTHERWISE  AUTHORIZED  PURSUANT  TO  THIS
 SECTION SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
   (F) ANY PERSON WHO WILLFULLY MAKES ANY MATERIAL FALSE STATEMENT IN ANY
 APPLICATION  FOR  A  LICENSE AUTHORIZED TO BE ISSUED UNDER THIS TITLE OR
 WHO WILLFULLY VIOLATES ANY OF THE PROVISIONS OF THIS SECTION OR  OF  ANY

 S. 2009--A                         116                        A. 3009--A
 
 LICENSE  ISSUED HEREUNDER SHALL BE GUILTY OF A MISDEMEANOR AND, IN ADDI-
 TION TO THE PENALTIES IN SUCH CASE MADE AND PROVIDED, SHALL FORFEIT  ANY
 LICENSE ISSUED TO HIM, HER OR IT UNDER THIS SECTION AND BE INELIGIBLE TO
 APPLY FOR A LICENSE UNDER THIS SECTION FOR ONE YEAR THEREAFTER.
   (G)  AT  THE END OF THE LICENSE PERIOD, A RECAPITULATION SHALL BE MADE
 AS BETWEEN THE LICENSEE AND THE COMMISSION IN RESPECT OF THE GROSS SALES
 ACTUALLY RECORDED DURING THE LICENSE PERIOD AND THE FEE  PAID  THEREFOR,
 AND  ANY  DEFICIENCY OF FEE THEREBY SHOWN TO BE DUE SHALL BE PAID BY THE
 LICENSEE AND ANY EXCESS OF FEE THEREBY SHOWN TO HAVE BEEN PAID SHALL  BE
 CREDITED  TO SAID LICENSEE IN SUCH MANNER AS THE COMMISSION BY THE RULES
 AND REGULATIONS SHALL PRESCRIBE.
   3. THE COMMISSION SHALL HAVE THE POWER  TO  APPROVE  AND  ESTABLISH  A
 STANDARD  SET  OF BINGO CARDS COMPRISING A CONSECUTIVELY NUMBERED SERIES
 AND SHALL BY RULES AND REGULATIONS PRESCRIBE THE MANNER  IN  WHICH  SUCH
 CARDS ARE TO BE REPRODUCED AND DISTRIBUTED TO LICENSED AUTHORIZED ORGAN-
 IZATIONS. THE SALE OR DISTRIBUTION TO A LICENSED AUTHORIZED ORGANIZATION
 OF  ANY  CARD OR CARDS OTHER THAN THOSE CONTAINED IN THE STANDARD SET OF
 BINGO CARDS SHALL CONSTITUTE  A  VIOLATION  OF  THIS  SECTION.  LICENSED
 AUTHORIZED  ORGANIZATIONS  SHALL  NOT BE REQUIRED TO USE NOR TO MAINTAIN
 SUCH CARDS SERIATIM EXCEPTING THAT THE  SAME  MAY  BE  REQUIRED  IN  THE
 CONDUCT OF LIMITED-PERIOD BINGO GAMES.
   §  1514.  HEARINGS;  IMMUNITY.  1. A HEARING UPON ANY INVESTIGATION OR
 REVIEW AUTHORIZED BY THIS ARTICLE  MAY  BE  CONDUCTED  BY  TWO  OR  MORE
 MEMBERS OF THE COMMISSION OR BY A HEARING OFFICER DULY DESIGNATED BY THE
 COMMISSION, AS THE COMMISSION SHALL DETERMINE.
   2.  A PERSON WHO HAS VIOLATED ANY PROVISION OF THIS ARTICLE, OR OF THE
 RULES AND REGULATIONS OF THE COMMISSION, OR  ANY  TERM  OF  ANY  LICENSE
 ISSUED  UNDER THIS ARTICLE OR SUCH RULES AND REGULATIONS, IS A COMPETENT
 WITNESS AGAINST ANOTHER PERSON SO  CHARGED.  IN  ANY  HEARING  UPON  ANY
 INVESTIGATION OR REVIEW AUTHORIZED BY THIS ARTICLE, FOR OR RELATING TO A
 VIOLATION  OF  ANY  PROVISION  OF SAID ARTICLE OR OF THE RULES AND REGU-
 LATIONS OF THE COMMISSION OR OF  THE  TERM  OF  ANY  SUCH  LICENSE,  THE
 COMMISSION  MAY CONFER IMMUNITY UPON SUCH WITNESS IN ACCORDANCE WITH THE
 PROVISIONS OF SECTION 50.20 OF THE CRIMINAL PROCEDURE LAW.  SUCH IMMUNI-
 TY SHALL BE CONFERRED ONLY UPON THE VOTE OF AT LEAST  THREE  MEMBERS  OF
 THE  COMMISSION  AND  ONLY  AFTER AFFORDING THE ATTORNEY GENERAL AND THE
 APPROPRIATE DISTRICT ATTORNEY A REASONABLE OPPORTUNITY TO BE HEARD  WITH
 RESPECT  TO  ANY  OBJECTIONS THAT THEY OR EITHER OF THEM MAY HAVE TO THE
 GRANTING OF SUCH IMMUNITY.
   § 1515. PLACE OF INVESTIGATIONS AND  HEARINGS;  WITNESSES;  BOOKS  AND
 DOCUMENTS. THE COMMISSION MAY CONDUCT INVESTIGATIONS AND HEARINGS WITHIN
 OR  WITHOUT  THE  STATE AND SHALL HAVE POWER TO COMPEL THE ATTENDANCE OF
 WITNESSES,  THE  PRODUCTION  OF  BOOKS,  RECORDS,  DOCUMENTS  AND  OTHER
 EVIDENCE  BY THE ISSUANCE OF A SUBPOENA SIGNED BY A PERSON AUTHORIZED BY
 THE COMMISSION TO DO SO.
   § 1516. PRIVILEGE AGAINST SELF-INCRIMINATION. THE WILLFUL  REFUSAL  TO
 ANSWER  A  MATERIAL QUESTION OR THE ASSERTION OF PRIVILEGE AGAINST SELF-
 INCRIMINATION DURING A HEARING UPON ANY INVESTIGATION OR REVIEW  AUTHOR-
 IZED  BY  THIS ARTICLE BY ANY LICENSEE OR ANY PERSON IDENTIFIED WITH ANY
 LICENSEE AS AN OFFICER, DIRECTOR, STOCKHOLDER, PARTNER, MEMBER, EMPLOYEE
 OR AGENT THEREOF SHALL CONSTITUTE SUFFICIENT CAUSE FOR THE REVOCATION OR
 SUSPENSION OF ANY LICENSE ISSUED UNDER THIS TITLE OR UNDER THE LICENSING
 LAW, AS THE COMMISSION OR AS THE MUNICIPAL GOVERNING BODY MAY DETERMINE.
   § 1517. FILING AND AVAILABILITY OF RULES AND REGULATIONS.  A  COPY  OF
 EVERY  RULE  AND  REGULATION  ADOPTED  AND PROMULGATED BY THE COMMISSION

 S. 2009--A                         117                        A. 3009--A
 
 SHALL BE MADE AVAILABLE TO THE VARIOUS  MUNICIPALITIES  OPERATING  UNDER
 THE BINGO LICENSING LAW.
   §  1518.  MUNICIPALITY  TO  FILE  COPIES OF LOCAL LAWS AND ORDINANCES;
 REPORTS.  EACH MUNICIPALITY IN WHICH THE BINGO LICENSING LAW IS  ADOPTED
 SHALL  FILE  WITH  THE  COMMISSION A COPY OF EACH LOCAL LAW OR ORDINANCE
 ENACTED PURSUANT THERETO  WITHIN  TEN  DAYS  AFTER  THE  SAME  HAS  BEEN
 APPROVED BY A MAJORITY OF THE ELECTORS VOTING ON A PROPOSITION SUBMITTED
 AT  A GENERAL OR SPECIAL ELECTION, OR WITHIN TEN DAYS AFTER THE SAME HAS
 BEEN AMENDED OR REPEALED BY THE COMMON COUNCIL OR OTHER  LOCAL  LEGISLA-
 TIVE BODY AND ON OR BEFORE FEBRUARY FIRST OF EACH YEAR, AND AT ANY OTHER
 TIME  OR  TIMES  THAT THE COMMISSION MAY DETERMINE, MAKE A REPORT TO THE
 COMMISSION OF THE NUMBER OF LICENSES  ISSUED  THEREIN  UNDER  THE  BINGO
 LICENSING  LAW,  THE NAMES AND ADDRESSES OF THE LICENSEES, THE AGGREGATE
 AMOUNT OF LICENSE FEES COLLECTED, THE NAMES AND ADDRESSES OF ALL PERSONS
 DETECTED OF VIOLATING THE BINGO LICENSING LAW, THIS TITLE OR  THE  RULES
 AND  REGULATIONS  ADOPTED  BY THE COMMISSION PURSUANT HERETO, AND OF ALL
 PERSONS PROSECUTED FOR SUCH VIOLATIONS AND THE RESULT OF EACH SUCH PROS-
 ECUTION, THE PENALTIES IMPOSED THEREIN  DURING  THE  PRECEDING  CALENDAR
 YEAR,  OR  THE PERIOD FOR WHICH THE REPORT IS REQUIRED, WHICH REPORT MAY
 CONTAIN ANY RECOMMENDATIONS FOR IMPROVEMENT OF THE BINGO  LICENSING  LAW
 OR  THE  ADMINISTRATION  THEREOF  THAT THE GOVERNING BODY OF THE MUNICI-
 PALITY DEEMS DESIRABLE.
                                  TITLE 3
        LOCAL OPTION FOR CONDUCT OF BINGO BY CERTAIN ORGANIZATIONS
 SECTION 1520. SHORT TITLE; PURPOSE OF TITLE.
         1521. LOCAL OPTION.
         1522. LOCAL LAWS AND ORDINANCES.
         1523. RESTRICTIONS UPON CONDUCT OF BINGO GAMES.
         1524. APPLICATION FOR LICENSE.
         1525. INVESTIGATION;  MATTERS  TO  BE  DETERMINED;  ISSUANCE  OF
                 LICENSE; FEES; DURATION OF LICENSE.
         1526. HEARING; AMENDMENT OF LICENSE.
         1527. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE.
         1528. CONTROL   AND   SUPERVISION;   SUSPENSION   OF   LICENSES;
                 INSPECTION OF PREMISES.
         1529. FREQUENCY OF GAME; SALE OF ALCOHOLIC BEVERAGES.
         1530. PERSONS OPERATING AND CONDUCTING BINGO  GAMES;  EQUIPMENT;
                 EXPENSES; COMPENSATION.
         1531. CHARGE  FOR ADMISSION AND PARTICIPATION; AMOUNT OF PRIZES;
                 AWARD OF PRIZES.
         1532. STATEMENT OF RECEIPTS, EXPENSES; ADDITIONAL LICENSE FEES.
         1533. EXAMINATION OF BOOKS AND RECORDS; EXAMINATION OF MANAGERS,
                 ETC.; DISCLOSURE OF INFORMATION.
         1534. APPEALS FROM MUNICIPAL GOVERNING BODY TO COMMISSION.
         1535. EXEMPTION FROM PROSECUTION.
         1536. OFFENSES; FORFEITURE OF LICENSE;  INELIGIBILITY  TO  APPLY
                 FOR LICENSE.
         1537. UNLAWFUL BINGO.
         1538. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS.
         1539. AMENDMENT AND REPEAL OF LOCAL LAWS AND ORDINANCES.
         1540. DELEGATION OF AUTHORITY.
         1541. POWERS AND DUTIES OF MAYORS OR MANAGERS OF CERTAIN CITIES.
   §  1520.  SHORT TITLE; PURPOSE OF TITLE. THIS TITLE SHALL BE KNOWN AND
 MAY BE CITED AS THE BINGO LICENSING LAW. THE LEGISLATURE HEREBY DECLARES
 THAT THE RAISING OF FUNDS FOR THE PROMOTION  OF  BONA  FIDE  CHARITABLE,
 EDUCATIONAL,  SCIENTIFIC,  HEALTH, RELIGIOUS, CIVIC AND PATRIOTIC CAUSES

 S. 2009--A                         118                        A. 3009--A
 
 AND UNDERTAKINGS, WHERE THE BENEFICIARIES  ARE  INDEFINITE,  IS  IN  THE
 PUBLIC  INTEREST. IT HEREBY FINDS THAT, AS CONDUCTED PRIOR TO THE EFFEC-
 TIVE DATE OF THIS TITLE,  BINGO  WAS  THE  SUBJECT  OF  EXPLOITATION  BY
 PROFESSIONAL GAMBLERS, PROMOTERS, AND COMMERCIAL INTERESTS. IT IS HEREBY
 DECLARED  TO  BE  THE  POLICY  OF THE LEGISLATURE THAT ALL PHASES OF THE
 SUPERVISION, LICENSING AND REGULATION OF BINGO AND  OF  THE  CONDUCT  OF
 BINGO  GAMES,  SHOULD  BE CLOSELY CONTROLLED AND THAT THE LAWS AND REGU-
 LATIONS PERTAINING THERETO SHOULD  BE  STRICTLY  CONSTRUED  AND  RIGIDLY
 ENFORCED;  THAT  THE  CONDUCT OF THE BINGO GAME AND ALL ATTENDANT ACTIV-
 ITIES SHOULD BE SO REGULATED AND ADEQUATE CONTROLS SO INSTITUTED  AS  TO
 DISCOURAGE  COMMERCIALIZATION  IN ALL ITS FORMS, INCLUDING THE RENTAL OF
 COMMERCIAL PREMISES FOR BINGO GAMES, AND TO ENSURE A MAXIMUM AVAILABILI-
 TY OF THE NET PROCEEDS OF  BINGO  EXCLUSIVELY  FOR  APPLICATION  TO  THE
 WORTHY  CAUSES  AND  UNDERTAKINGS SPECIFIED HEREIN; THAT THE ONLY JUSTI-
 FICATION FOR THIS TITLE IS TO FOSTER AND SUPPORT SUCH WORTHY CAUSES  AND
 UNDERTAKINGS, AND THAT THE MANDATE OF SECTION NINE OF ARTICLE ONE OF THE
 STATE  CONSTITUTION,  AS  AMENDED,  SHOULD BE CARRIED OUT BY RIGID REGU-
 LATION TO PREVENT  COMMERCIALIZED  GAMBLING,  PREVENT  PARTICIPATION  BY
 CRIMINAL  AND  OTHER  UNDESIRABLE  ELEMENTS AND PREVENT THE DIVERSION OF
 FUNDS FROM THE PURPOSES HEREIN AUTHORIZED.
   § 1521. LOCAL OPTION. SUBJECT TO THE PROVISIONS  OF  THIS  TITLE,  AND
 PURSUANT  TO  THE DIRECTION CONTAINED IN SUBDIVISION TWO OF SECTION NINE
 OF ARTICLE ONE OF THE CONSTITUTION OF THE STATE, THE LEGISLATURE  HEREBY
 GIVES AND GRANTS TO EVERY MUNICIPALITY THE RIGHT, POWER AND AUTHORITY TO
 AUTHORIZE  THE CONDUCT OF BINGO GAMES BY AUTHORIZED ORGANIZATIONS WITHIN
 THE TERRITORIAL LIMITS OF  SUCH  MUNICIPALITY  PROVIDED,  HOWEVER,  THAT
 WHERE  THE  ELECTORS OF A VILLAGE HEREAFTER APPROVE A LOCAL LAW OR ORDI-
 NANCE PURSUANT TO SECTION FIFTEEN HUNDRED TWENTY-THREE  OF  THIS  TITLE,
 THE  RIGHT,  POWER  AND  AUTHORITY UNDER THIS TITLE OF ANY TOWN IN WHICH
 SUCH VILLAGE IS LOCATED SHALL NOT EXTEND TO  SUCH  VILLAGE  DURING  SUCH
 TIME AS SUCH VILLAGE LOCAL LAW OR ORDINANCE IS IN EFFECT.
   §  1522.  LOCAL  LAWS  AND  ORDINANCES. 1. THE COMMON COUNCIL OR OTHER
 LOCAL LEGISLATIVE BODY OF ANY MUNICIPALITY MAY, EITHER BY LOCAL  LAW  OR
 ORDINANCE,  PROVIDE THAT IT SHALL BE LAWFUL FOR ANY AUTHORIZED ORGANIZA-
 TION, UPON OBTAINING A LICENSE THEREFOR AS PROVIDED IN  THIS  TITLE,  TO
 CONDUCT  THE GAME OF BINGO WITHIN THE TERRITORIAL LIMITS OF SUCH MUNICI-
 PALITY, SUBJECT TO THE PROVISIONS OF SUCH LOCAL LAW  OR  ORDINANCE,  THE
 PROVISIONS OF THIS TITLE AND THE PROVISIONS OF THE BINGO CONTROL LAW.
   2.  NO SUCH LOCAL LAW OR ORDINANCE SHALL BECOME OPERATIVE OR EFFECTIVE
 UNLESS AND UNTIL IT HAS BEEN APPROVED BY  A  MAJORITY  OF  THE  ELECTORS
 VOTING  ON A PROPOSITION SUBMITTED AT A GENERAL OR SPECIAL ELECTION HELD
 WITHIN SUCH MUNICIPALITY WHO ARE QUALIFIED TO VOTE FOR OFFICERS OF  SUCH
 MUNICIPALITY.
   3.  THE  TIME,  METHOD  AND  MANNER  OF  SUBMISSION,  PREPARATION  AND
 PROVISION OF BALLOTS AND BALLOT LABELS, BALLOTING BY VOTING MACHINE  AND
 CONDUCTING THE ELECTION, CANVASSING THE RESULT AND MAKING AND FILING THE
 RETURNS  AND ALL OTHER PROCEDURE WITH REFERENCE TO THE SUBMISSION OF AND
 ACTION UPON ANY PROPOSITION FOR THE APPROVAL OF ANY SUCH  LOCAL  LAW  OR
 ORDINANCE  SHALL  BE THE SAME AS IN THE CASE OF ANY OTHER PROPOSITION TO
 BE SUBMITTED TO THE ELECTORS  OF  SUCH  MUNICIPALITY  AT  A  GENERAL  OR
 SPECIAL ELECTION IN SUCH MUNICIPALITY, AS PROVIDED BY LAW.
   § 1523. RESTRICTIONS UPON CONDUCT OF BINGO GAMES. THE CONDUCT OF BINGO
 GAMES  AUTHORIZED  BY  LOCAL  LAW  OR  ORDINANCE SHALL BE SUBJECT TO THE
 FOLLOWING RESTRICTIONS WITHOUT REGARD TO WHETHER SUCH  RESTRICTIONS  ARE
 CONTAINED  IN  SUCH  LOCAL LAW OR ORDINANCE, BUT NOTHING IN THIS SECTION
 SHALL BE CONSTRUED TO PREVENT THE INCLUSION WITHIN  SUCH  LOCAL  LAW  OR

 S. 2009--A                         119                        A. 3009--A

 ORDINANCE  OF OTHER PROVISIONS IMPOSING ADDITIONAL RESTRICTIONS UPON THE
 CONDUCT OF BINGO GAMES:
   1.  NO  PERSON,  FIRM, ASSOCIATION, CORPORATION OR ORGANIZATION, OTHER
 THAN A LICENSEE UNDER THE PROVISIONS OF THIS TITLE, SHALL
   (A) CONDUCT BINGO; OR
   (B) LEASE OR OTHERWISE MAKE AVAILABLE FOR CONDUCTING BINGO A  HALL  OR
 OTHER  PREMISES  FOR  ANY  CONSIDERATION WHATSOEVER, DIRECT OR INDIRECT,
 WITHOUT OBTAINING THE PRIOR WRITTEN APPROVAL OF THE COMMISSION.
   2. NO BINGO GAMES SHALL BE HELD, OPERATED OR CONDUCTED  ON  OR  WITHIN
 ANY  LEASED PREMISES IF RENTAL UNDER SUCH LEASE IS TO BE PAID, WHOLLY OR
 PARTLY, ON THE BASIS OF A PERCENTAGE OF  THE  RECEIPTS  OR  NET  PROFITS
 DERIVED FROM THE OPERATION OF SUCH GAME.
   3.  NO  AUTHORIZED  ORGANIZATION LICENSED UNDER THE PROVISIONS OF THIS
 TITLE SHALL PURCHASE, LEASE OR RECEIVE ANY SUPPLIES OR EQUIPMENT SPECIF-
 ICALLY DESIGNED OR ADAPTED FOR USE IN THE CONDUCT OF  BINGO  GAMES  FROM
 OTHER  THAN  A  SUPPLIER  LICENSED  UNDER  THE BINGO CONTROL LAW OR FROM
 ANOTHER AUTHORIZED ORGANIZATION.
   4. THE ENTIRE NET PROCEEDS OF ANY GAME OF  BINGO  AND  OF  ANY  RENTAL
 SHALL  BE DEVOTED EXCLUSIVELY TO THE LAWFUL PURPOSES OF THE ORGANIZATION
 PERMITTED TO CONDUCT THE SAME.
   5. NO PRIZE SHALL EXCEED THE SUM OR VALUE OF FIVE THOUSAND DOLLARS  IN
 ANY SINGLE GAME OF BINGO.
   6.  NO SERIES OF PRIZES ON ANY ONE BINGO OCCASION SHALL AGGREGATE MORE
 THAN FIFTEEN THOUSAND DOLLARS.
   7. NO PERSON EXCEPT A BONA FIDE MEMBER OF ANY SUCH ORGANIZATION  SHALL
 PARTICIPATE IN THE MANAGEMENT OR OPERATION OF SUCH BINGO GAME.
   8.  NO  PERSON SHALL RECEIVE ANY REMUNERATION FOR PARTICIPATING IN THE
 MANAGEMENT OR OPERATION OF ANY GAME OF BINGO.
   9. THE UNAUTHORIZED CONDUCT OF A BINGO GAME AND ANY WILLFUL  VIOLATION
 OF  ANY  PROVISION OF ANY LOCAL LAW OR ORDINANCE SHALL CONSTITUTE AND BE
 PUNISHABLE AS A MISDEMEANOR.
   10. NO PERSON LICENSED TO SELL BINGO SUPPLIES  OR  EQUIPMENT,  OR  ANY
 AGENT  OF  SUCH  PERSON,  SHALL CONDUCT, PARTICIPATE IN OR ASSIST IN THE
 CONDUCT OF BINGO.  NOTHING HEREIN SHALL PROHIBIT A LICENSED  DISTRIBUTOR
 FROM SELLING, OFFERING FOR SALE OR EXPLAINING A PRODUCT TO AN AUTHORIZED
 ORGANIZATION  OR  INSTALLING OR SERVICING BINGO EQUIPMENT UPON THE PREM-
 ISES OF A BINGO GAME LICENSEE.
   11. LIMITED-PERIOD BINGO SHALL BE CONDUCTED  IN  ACCORDANCE  WITH  THE
 PROVISIONS  OF  THIS  TITLE AND THE RULES AND REGULATIONS OF THE COMMIS-
 SION.
   § 1524. APPLICATION FOR LICENSE. 1. TO CONDUCT BINGO. (A) EACH  APPLI-
 CANT  FOR A LICENSE TO CONDUCT BINGO SHALL, AFTER OBTAINING AN IDENTIFI-
 CATION NUMBER FROM THE COMMISSION, FILE WITH THE CLERK  OF  THE  MUNICI-
 PALITY  AN  APPLICATION THEREFOR IN THE FORM PRESCRIBED IN THE RULES AND
 REGULATIONS OF THE COMMISSION, DULY EXECUTED AND VERIFIED, IN WHICH SUCH
 APPLICANT SHALL STATE:
   (1) THE NAME AND ADDRESS OF THE  APPLICANT  TOGETHER  WITH  SUFFICIENT
 FACTS  RELATING  TO  SUCH  APPLICANT'S INCORPORATION AND ORGANIZATION TO
 ENABLE THE GOVERNING BODY OF THE MUNICIPALITY TO  DETERMINE  WHETHER  OR
 NOT THE APPLICANT IS A BONA FIDE AUTHORIZED ORGANIZATION;
   (2) THE NAMES AND ADDRESSES OF THE APPLICANT'S OFFICERS;
   (3)  THE  PLACE OR PLACES WHERE, AND THE DATE OR DATES AND THE TIME OR
 TIMES WHEN, THE APPLICANT INTENDS TO CONDUCT  BINGO  UNDER  THE  LICENSE
 APPLIED FOR;
   (4)  IN  CASE THE APPLICANT INTENDS TO LEASE PREMISES FOR THIS PURPOSE
 FROM OTHER THAN AN AUTHORIZED ORGANIZATION, THE NAME AND ADDRESS OF  THE

 S. 2009--A                         120                        A. 3009--A
 
 LICENSED  BINGO  LESSOR  OF SUCH PREMISES, AND THE CAPACITY OR POTENTIAL
 CAPACITY FOR PUBLIC ASSEMBLY PURPOSES OF SPACE IN ANY PREMISES PRESENTLY
 OWNED OR OCCUPIED BY THE APPLICANT;
   (5)  THE  AMOUNT OF RENT TO BE PAID OR OTHER CONSIDERATION TO BE GIVEN
 DIRECTLY OR INDIRECTLY FOR EACH OCCASION FOR  USE  OF  THE  PREMISES  OF
 ANOTHER  AUTHORIZED  ORGANIZATION  LICENSED  UNDER THIS TITLE TO CONDUCT
 BINGO OR FOR USE OF THE PREMISES OF A LICENSED BINGO LESSOR;
   (6) ALL OTHER ITEMS OF EXPENSE INTENDED TO  BE  INCURRED  OR  PAID  IN
 CONNECTION  WITH  THE HOLDING, OPERATING AND CONDUCTING OF SUCH GAMES OF
 BINGO AND THE NAMES AND ADDRESSES OF THE PERSONS  TO  BE  PAID  AND  THE
 PURPOSES FOR WHICH SUCH PERSONS ARE TO BE PAID;
   (7)  THE  SPECIFIC  PURPOSES  TO WHICH THE ENTIRE NET PROCEEDS OF SUCH
 GAMES OF BINGO ARE TO BE DEVOTED AND IN WHAT MANNER;
   (8) THAT NO COMMISSION, SALARY,  COMPENSATION,  REWARD  OR  RECOMPENSE
 WILL  BE  PAID  TO ANY PERSON FOR CONDUCTING SUCH BINGO GAME OR GAMES OR
 FOR ASSISTING THEREIN EXCEPT AS IN THIS TITLE OTHERWISE PROVIDED; AND
   (9) SUCH OTHER INFORMATION AS SHALL BE PRESCRIBED  BY  THE  RULES  AND
 REGULATIONS OF THE COMMISSION.
   (B)  IN EACH APPLICATION THERE SHALL BE DESIGNATED AN ACTIVE MEMBER OR
 MEMBERS OF THE APPLICANT ORGANIZATION UNDER WHOM THE GAME  OR  GAMES  OF
 BINGO  WILL  BE  CONDUCTED  AND  TO  THE APPLICATION SHALL BE APPENDED A
 STATEMENT EXECUTED BY THE MEMBER OR MEMBERS SO DESIGNATED, THAT HE,  SHE
 OR  THEY  WILL  BE  RESPONSIBLE  FOR  THE CONDUCT OF SUCH BINGO GAMES IN
 ACCORDANCE WITH THE TERMS OF THE LICENSE AND THE RULES  AND  REGULATIONS
 OF THE COMMISSION AND OF THIS TITLE.
   2. BINGO LESSOR. (A) EACH APPLICANT FOR A LICENSE TO LEASE PREMISES TO
 A  LICENSED  ORGANIZATION  FOR  THE PURPOSES OF CONDUCTING BINGO THEREIN
 SHALL FILE WITH THE CLERK OF THE MUNICIPALITY AN APPLICATION THEREFOR IN
 A FORM PRESCRIBED IN THE RULES AND REGULATIONS OF  THE  COMMISSION  DULY
 EXECUTED AND VERIFIED, WHICH SHALL SET FORTH:
   (1) THE NAME AND ADDRESS OF THE APPLICANT;
   (2)  DESIGNATION AND ADDRESS OF THE PREMISES INTENDED TO BE COVERED BY
 THE LICENSE SOUGHT;
   (3) LAWFUL CAPACITY FOR PUBLIC ASSEMBLY PURPOSES;
   (4) COST OF PREMISES  AND  ASSESSED  VALUATION  FOR  REAL  ESTATE  TAX
 PURPOSES, OR ANNUAL NET LEASE RENT, WHICHEVER IS APPLICABLE;
   (5)  GROSS  RENTALS RECEIVED AND ITEMIZED EXPENSES FOR THE IMMEDIATELY
 PRECEDING CALENDAR OR FISCAL YEAR, IF ANY;
   (6) GROSS RENTALS, IF ANY, DERIVED FROM BINGO DURING THE LAST  PRECED-
 ING CALENDAR OR FISCAL YEAR;
   (7) COMPUTATION BY WHICH PROPOSED RENTAL SCHEDULE WAS DETERMINED;
   (8)  NUMBER OF OCCASIONS ON WHICH APPLICANT ANTICIPATES RECEIVING RENT
 FOR BINGO DURING THE ENSUING YEAR OR SHORTER PERIOD IF APPLICABLE;
   (9) PROPOSED RENT FOR  EACH  SUCH  OCCASION;  ESTIMATED  GROSS  RENTAL
 INCOME FROM ALL OTHER SOURCES DURING THE ENSUING YEAR;
   (10)  ESTIMATED  EXPENSES ITEMIZED FOR ENSUING YEAR AND AMOUNT OF EACH
 ITEM ALLOCATED TO BINGO RENTALS;
   (11) A STATEMENT THAT THE APPLICANT IN ALL RESPECTS CONFORMS WITH  THE
 SPECIFICATIONS  CONTAINED IN THE DEFINITION OF "AUTHORIZED BINGO LESSOR"
 SET FORTH IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE; AND
   (12) SUCH OTHER INFORMATION AS SHALL BE PRESCRIBED BY  THE  RULES  AND
 REGULATIONS OF THE COMMISSION.
   (B)  AT  THE  END OF THE LICENSE PERIOD, A RECAPITULATION, IN A MANNER
 PRESCRIBED IN THE RULES AND REGULATIONS OF THE COMMISSION, SHALL BE MADE
 AS BETWEEN THE LICENSEE AND THE MUNICIPAL GOVERNING BODY IN  RESPECT  OF
 THE GROSS RENTAL ACTUALLY RECEIVED DURING THE LICENSE PERIOD AND THE FEE

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 PAID  THEREFOR.    THE  LICENSEE SHALL PAY ANY DEFICIENCY OF FEE THEREBY
 SHOWN TO BE DUE AND ANY EXCESS OF FEE THEREBY SHOWN TO  HAVE  BEEN  PAID
 SHALL  BE CREDITED TO SUCH LICENSEE, IN SUCH MANNER AS THE COMMISSION BY
 RULES AND REGULATIONS SHALL PRESCRIBE.
   §  1525. INVESTIGATION; MATTERS TO BE DETERMINED; ISSUANCE OF LICENSE;
 FEES; DURATION OF LICENSE. 1. THE GOVERNING  BODY  OF  THE  MUNICIPALITY
 SHALL  MAKE AN INVESTIGATION OF THE QUALIFICATIONS OF EACH APPLICANT AND
 THE MERITS OF EACH APPLICATION, WITH DUE EXPEDITION AFTER THE FILING  OF
 THE APPLICATION.
   (A)  ISSUANCE  OF  LICENSES TO CONDUCT BINGO. IF THE GOVERNING BODY OF
 THE MUNICIPALITY DETERMINES:
   (1) THAT THE APPLICANT IS DULY QUALIFIED TO  BE  LICENSED  TO  CONDUCT
 BINGO UNDER THIS TITLE;
   (2)  THAT  THE  MEMBER  OR  MEMBERS OF THE APPLICANT DESIGNATED IN THE
 APPLICATION TO CONDUCT BINGO ARE BONA FIDE ACTIVE MEMBERS OF THE  APPLI-
 CANT  AND  ARE  PERSONS  OF  GOOD  MORAL  CHARACTER  AND HAVE NEVER BEEN
 CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP  BETWEEN  ONE  OR
 MORE  OF  THE  PREVIOUS  CRIMINAL  OFFENSES  AND THE INTEGRITY OF BINGO,
 CONSIDERING THE FACTORS SET FORTH IN SECTION SEVEN  HUNDRED  FIFTY-THREE
 OF THE CORRECTION LAW;
   (3)  THAT  SUCH  GAMES OF BINGO ARE TO BE CONDUCTED IN ACCORDANCE WITH
 THE PROVISIONS OF THIS TITLE AND IN ACCORDANCE WITH THE RULES AND  REGU-
 LATIONS OF THE COMMISSION;
   (4)  THAT  THE  PROCEEDS  THEREOF ARE TO BE DISPOSED OF AS PROVIDED BY
 THIS TITLE;
   (5) IF THE GOVERNING BODY IS SATISFIED  THAT  NO  COMMISSION,  SALARY,
 COMPENSATION, REWARD OR RECOMPENSE WHATEVER WILL BE PAID OR GIVEN TO ANY
 PERSON  HOLDING,  OPERATING  OR  CONDUCTING OR ASSISTING IN THE HOLDING,
 OPERATION AND CONDUCT OF ANY SUCH GAMES OF BINGO EXCEPT AS IN THIS TITLE
 OTHERWISE PROVIDED; AND
   (6) THAT NO PRIZE WILL BE OFFERED AND GIVEN IN EXCESS OF  THE  SUM  OR
 VALUE  OF FIVE THOUSAND DOLLARS IN ANY SINGLE GAME OF BINGO AND THAT THE
 AGGREGATE OF ALL PRIZES OFFERED AND GIVEN IN ALL OF SUCH GAMES OF  BINGO
 CONDUCTED  ON A SINGLE OCCASION, UNDER SAID LICENSE SHALL NOT EXCEED THE
 SUM OR VALUE OF FIFTEEN THOUSAND DOLLARS, THEN  THE  MUNICIPALITY  SHALL
 ISSUE  A  LICENSE TO THE APPLICANT FOR THE CONDUCT OF BINGO UPON PAYMENT
 OF A LICENSE FEE FOR EACH BINGO OCCASION, TO  BE  ESTABLISHED  BY  REGU-
 LATION  OF  THE  COMMISSION. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN
 THIS PARAGRAPH, THE GOVERNING BODY SHALL REFUSE TO ISSUE A LICENSE TO AN
 APPLICANT SEEKING TO CONDUCT BINGO  IN  PREMISES  OF  A  LICENSED  BINGO
 LESSOR  WHERE SUCH GOVERNING BODY DETERMINES THAT THE PREMISES PRESENTLY
 OWNED OR OCCUPIED BY SUCH APPLICANT ARE IN EVERY  RESPECT  ADEQUATE  AND
 SUITABLE FOR CONDUCTING BINGO GAMES.
   (B)  ISSUANCE  OF  LICENSES TO BINGO LESSORS. IF THE GOVERNING BODY OF
 THE MUNICIPALITY DETERMINES THAT:
   (1) THE APPLICANT SEEKING TO LEASE A HALL OR PREMISES FOR THE  CONDUCT
 OF  BINGO TO AN AUTHORIZED ORGANIZATION IS DULY QUALIFIED TO BE LICENSED
 UNDER THIS TITLE;
   (2) THE APPLICANT SATISFIES THE REQUIREMENTS FOR AN  AUTHORIZED  BINGO
 LESSOR AS DEFINED IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE;
   (3)  AT  THE  TIME  OF  THE ISSUANCE OF AN INITIAL LICENSE, THERE IS A
 PUBLIC NEED AND THAT PUBLIC ADVANTAGE WILL BE SERVED BY THE ISSUANCE  OF
 SUCH LICENSE;
   (4) THE APPLICANT HAS FILED ITS PROPOSED RENT FOR EACH BINGO OCCASION;
   (5)  THE  COMMISSION HAS APPROVED AS FAIR AND REASONABLE A SCHEDULE OF
 MAXIMUM RENTALS FOR EACH SUCH OCCASION;

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   (6) THERE IS NO DIVERSION OF THE FUNDS OF THE PROPOSED LESSEE FROM THE
 LAWFUL PURPOSES AS DEFINED IN THIS TITLE; AND
   (7)  SUCH LEASING OF A HALL OR PREMISES FOR THE CONDUCT OF BINGO IS TO
 BE IN ACCORDANCE WITH THE PROVISIONS OF THIS  TITLE  AND  IN  ACCORDANCE
 WITH  THE  RULES  AND REGULATIONS OF THE COMMISSION, SUCH GOVERNING BODY
 SHALL ISSUE A LICENSE PERMITTING THE APPLICANT TO  LEASE  SAID  PREMISES
 FOR THE CONDUCT OF BINGO TO THE AUTHORIZED ORGANIZATION OR ORGANIZATIONS
 SPECIFIED IN THE APPLICATION DURING THE PERIOD THEREIN SPECIFIED OR SUCH
 SHORTER PERIOD AS THE GOVERNING BODY OF THE MUNICIPALITY DETERMINES, BUT
 NOT  TO  EXCEED  ONE  YEAR, UPON PAYMENT OF A LICENSE FEE ESTABLISHED BY
 REGULATION OF THE COMMISSION.
   2. ON OR BEFORE THE THIRTIETH DAY OF EACH MONTH, THE TREASURER OF  THE
 MUNICIPALITY  SHALL  TRANSMIT  TO  THE  STATE COMPTROLLER A SUM EQUAL TO
 FIFTY PERCENT OF ALL BINGO LESSOR LICENSE FEES AND AN AMOUNT ESTABLISHED
 BY REGULATION OF THE COMMISSION PER OCCASION OF ALL LICENSE FEES FOR THE
 CONDUCT OF BINGO COLLECTED BY SUCH MUNICIPALITY PURSUANT TO THIS SECTION
 DURING THE PRECEDING CALENDAR MONTH.
   3. NO LICENSE SHALL BE ISSUED UNDER THIS TITLE THAT IS EFFECTIVE FOR A
 PERIOD OF MORE THAN ONE YEAR. IN THE CASE OF  LIMITED-PERIOD  BINGO,  NO
 LICENSE  SHALL  BE  ISSUED AUTHORIZING THE CONDUCT OF SUCH GAMES ON MORE
 THAN TWO OCCASIONS IN ANY ONE DAY, NOR SHALL ANY LICENSE BE ISSUED UNDER
 THIS TITLE THAT IS EFFECTIVE FOR A PERIOD OF MORE THAN SEVEN  OF  TWELVE
 CONSECUTIVE  DAYS  IN ANY ONE YEAR. NO LICENSE FOR THE CONDUCT OF LIMIT-
 ED-PERIOD BINGO SHALL BE ISSUED IN CITIES HAVING  A  POPULATION  OF  ONE
 MILLION OR MORE.
   § 1526. HEARING; AMENDMENT OF LICENSE. 1. NO APPLICATION FOR THE ISSU-
 ANCE  OF  A  LICENSE SHALL BE DENIED BY THE GOVERNING BODY UNTIL AFTER A
 HEARING, HELD ON DUE NOTICE TO THE APPLICANT,  AT  WHICH  THE  APPLICANT
 SHALL  BE  ENTITLED TO BE HEARD UPON THE QUALIFICATIONS OF THE APPLICANT
 AND THE MERITS OF THE APPLICATION.
   2. ANY LICENSE ISSUED UNDER THIS TITLE MAY BE AMENDED,  UPON  APPLICA-
 TION  MADE  TO  THE  GOVERNING BODY OF THE MUNICIPALITY THAT ISSUED SUCH
 LICENSE, IF THE SUBJECT MATTER OF THE PROPOSED AMENDMENT COULD  LAWFULLY
 AND PROPERLY HAVE BEEN INCLUDED IN THE ORIGINAL LICENSE AND UPON PAYMENT
 OF  SUCH  ADDITIONAL  LICENSE  FEE IF ANY, AS WOULD HAVE BEEN PAYABLE IF
 SUCH AMENDMENT HAD BEEN SO INCLUDED.
   § 1527. FORM AND CONTENTS OF LICENSE; DISPLAY OF  LICENSE.  1.    EACH
 LICENSE  TO  CONDUCT  BINGO SHALL BE IN SUCH FORM AS THE RULES AND REGU-
 LATIONS OF THE COMMISSION PRESCRIBE AND SHALL CONTAIN:
   (A) THE NAME AND ADDRESS OF THE LICENSEE;
   (B) THE NAMES OF THE MEMBER OR MEMBERS OF THE LICENSEE UNDER WHOM  THE
 GAMES WILL BE CONDUCTED;
   (C)  THE PLACE OR PLACES WHERE AND THE DATE OR DATES AND TIME OR TIMES
 WHEN SUCH GAMES ARE TO BE CONDUCTED;
   (D) THE SPECIFIC PURPOSES TO WHICH THE ENTIRE  NET  PROCEEDS  OF  SUCH
 GAMES ARE TO BE DEVOTED; AND
   (E)  IF  ANY  PRIZE  OR  PRIZES ARE TO BE OFFERED AND GIVEN IN CASH, A
 STATEMENT OF THE AMOUNTS OF THE PRIZES AUTHORIZED SO TO BE  OFFERED  AND
 GIVEN  AND  ANY  OTHER INFORMATION THAT THE RULES AND REGULATIONS OF THE
 COMMISSION MAY REQUIRE.
   2. EACH LICENSE ISSUED FOR THE CONDUCT OF ANY GAME OF BINGO  SHALL  BE
 DISPLAYED  CONSPICUOUSLY  AT THE PLACE WHERE SUCH GAME OF BINGO IS TO BE
 CONDUCTED AT ALL TIMES DURING SUCH CONDUCT.
   3. EACH LICENSE TO LEASE PREMISES FOR CONDUCTING  BINGO  SHALL  BE  IN
 SUCH  FORM  AS THE RULES AND REGULATIONS OF THE COMMISSION PRESCRIBE AND
 SHALL CONTAIN A STATEMENT OF THE NAME AND ADDRESS OF  THE  LICENSEE  AND

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 THE  ADDRESS  OF THE LEASED PREMISES, THE AMOUNT OF PERMISSIBLE RENT AND
 ANY OTHER INFORMATION THAT THE RULES AND REGULATIONS OF  THE  COMMISSION
 MAY  REQUIRE.  EACH  SUCH  LICENSE SHALL BE DISPLAYED CONSPICUOUSLY UPON
 SUCH PREMISES AT ALL TIMES DURING THE CONDUCT OF BINGO.
   § 1528. CONTROL AND SUPERVISION; SUSPENSION OF LICENSES; INSPECTION OF
 PREMISES.  1. THE GOVERNING BODY OF ANY MUNICIPALITY ISSUING ANY LICENSE
 UNDER THIS TITLE SHALL HAVE AND EXERCISE RIGID CONTROL AND CLOSE  SUPER-
 VISION  OVER ALL GAMES OF BINGO CONDUCTED UNDER SUCH LICENSE, TO THE END
 THAT THE SAME ARE FAIRLY CONDUCTED IN ACCORDANCE WITH THE PROVISIONS  OF
 SUCH LICENSE, THE PROVISIONS OF THE RULES AND REGULATIONS OF THE COMMIS-
 SION AND THE PROVISIONS OF THIS TITLE AND SUCH GOVERNING BODY.
   2.  THE  COMMISSION  SHALL HAVE THE POWER AND THE AUTHORITY TO SUSPEND
 ANY LICENSE ISSUED BY SUCH GOVERNING BODY AND TO REVOKE THE  SAME,  AND,
 ADDITIONALLY,  IN  THE  CASE  OF AN AUTHORIZED BINGO LESSOR, TO IMPOSE A
 FINE IN AN AMOUNT NOT EXCEEDING ONE THOUSAND DOLLARS, AFTER  NOTICE  AND
 HEARING,  FOR VIOLATION OF ANY SUCH PROVISIONS, AND SHALL HAVE THE RIGHT
 OF ENTRY, BY THE COMMISSION'S OFFICERS AND AGENTS, AT ALL TIMES INTO ANY
 PREMISES WHERE ANY GAME OF BINGO IS  BEING  CONDUCTED  OR  WHERE  IT  IS
 INTENDED  THAT  ANY  SUCH GAME OF BINGO SHALL BE CONDUCTED, OR WHERE ANY
 EQUIPMENT BEING USED OR INTENDED TO BE USED IN THE  CONDUCT  THEREOF  IS
 FOUND, FOR THE PURPOSE OF INSPECTING THE SAME.
   3. IN ADDITION TO THE AUTHORITY GRANTED PURSUANT TO SUBDIVISION TWO OF
 THIS  SECTION,  THE  GOVERNING BODY IN A CITY HAVING A POPULATION OF ONE
 MILLION OR MORE AND THE COMMISSION MAY IMPOSE A FINE IN  AN  AMOUNT  NOT
 EXCEEDING  ONE THOUSAND DOLLARS, AFTER NOTICE AND HEARING, ON ANY LICEN-
 SEE UNDER THIS TITLE FOR VIOLATION OF ANY  PROVISION  OF  SUCH  LICENSE,
 THIS TITLE OR RULES AND REGULATIONS OF THE COMMISSION.
   §  1529.  FREQUENCY  OF  GAME; SALE OF ALCOHOLIC BEVERAGES. NO GAME OR
 GAMES OF BINGO, EXCEPT LIMITED-PERIOD BINGO, SHALL  BE  CONDUCTED  UNDER
 ANY  LICENSE ISSUED UNDER THIS TITLE MORE OFTEN THAN ON EIGHTEEN DAYS IN
 ANY THREE SUCCESSIVE CALENDAR MONTHS. NO GAME OR GAMES OF LIMITED-PERIOD
 BINGO SHALL BE CONDUCTED BETWEEN THE HOURS OF TWELVE MIDNIGHT AND  NOON,
 AND  NO MORE THAN SIXTY GAMES MAY BE CONDUCTED ON ANY SINGLE OCCASION OF
 LIMITED-PERIOD BINGO. NO GAME OR GAMES OF BINGO SHALL  BE  CONDUCTED  IN
 ANY  ROOM  OR OUTDOOR AREA WHERE ALCOHOLIC BEVERAGES ARE SOLD, SERVED OR
 CONSUMED DURING THE PROGRESS OF THE GAME OR GAMES.
   § 1530. PERSONS  OPERATING  AND  CONDUCTING  BINGO  GAMES;  EQUIPMENT;
 EXPENSES;  COMPENSATION. 1. (A) NO PERSON SHALL HOLD, OPERATE OR CONDUCT
 ANY GAME OF BINGO UNDER ANY LICENSE ISSUED UNDER  THIS  TITLE  EXCEPT  A
 BONA  FIDE MEMBER OF THE AUTHORIZED ORGANIZATION TO WHICH THE LICENSE IS
 ISSUED. NO PERSON SHALL ASSIST IN THE HOLDING, OPERATING  OR  CONDUCTING
 OF  ANY  GAME OF BINGO UNDER SUCH LICENSE EXCEPT SUCH A BONA FIDE MEMBER
 OR A BONA FIDE MEMBER OF AN  ORGANIZATION  OR  ASSOCIATION  THAT  IS  AN
 AUXILIARY  TO  THE  LICENSEE OR A BONA FIDE MEMBER OF AN ORGANIZATION OR
 ASSOCIATION OF WHICH SUCH LICENSEE IS AN AUXILIARY OR A BONA FIDE MEMBER
 OF AN ORGANIZATION OR ASSOCIATION THAT IS AFFILIATED WITH  THE  LICENSEE
 BY  BEING, WITH IT, AUXILIARY TO ANOTHER ORGANIZATION OR ASSOCIATION AND
 EXCEPT BOOKKEEPERS OR  ACCOUNTANTS  AS  HEREINAFTER  PROVIDED,  BUT  ANY
 PERSON  MAY  ASSIST THE LICENSED ORGANIZATION IN ANY ACTIVITY RELATED TO
 THE GAME OF BINGO THAT DOES NOT ACTUALLY INVOLVE THE  HOLDING,  CONDUCT-
 ING, MANAGING OR OPERATING OF SUCH GAME OF BINGO.
   (B) NO GAME OF BINGO SHALL BE CONDUCTED WITH ANY EQUIPMENT EXCEPT SUCH
 AS SHALL BE OWNED ABSOLUTELY OR LEASED BY THE AUTHORIZED ORGANIZATION SO
 LICENSED  OR  USED  WITHOUT  PAYMENT OF ANY COMPENSATION THEREFOR BY THE
 LICENSEE.

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   (C) LEASE TERMS AND CONDITIONS SHALL BE SUBJECT TO THE RULES AND REGU-
 LATIONS OF THE COMMISSION.
   (D)  THIS  TITLE  SHALL  NOT  BE  CONSTRUED  TO AUTHORIZE OR PERMIT AN
 AUTHORIZED ORGANIZATION TO ENGAGE  IN  THE  BUSINESS  OF  LEASING  BINGO
 SUPPLIES OR EQUIPMENT.
   (E)  NO  ITEMS OF EXPENSE SHALL BE INCURRED OR PAID IN CONNECTION WITH
 THE CONDUCTING OF ANY GAME OF BINGO PURSUANT TO ANY LICENSE ISSUED UNDER
 THIS TITLE,  EXCEPT  THOSE  THAT  ARE  REASONABLE  AND  ARE  NECESSARILY
 EXPENDED  FOR  BINGO  SUPPLIES  AND EQUIPMENT, PRIZES, STATED RENTAL, IF
 ANY, BOOKKEEPING OR ACCOUNTING  SERVICES  ACCORDING  TO  A  SCHEDULE  OF
 COMPENSATION PRESCRIBED BY THE COMMISSION, JANITORIAL SERVICES AND UTIL-
 ITY  SUPPLIES, IF ANY, AND LICENSE FEES, AND THE COST OF BUS TRANSPORTA-
 TION, IF AUTHORIZED BY THE COMMISSION.
   2. NOTWITHSTANDING ANY PROVISION OF THIS  TITLE  TO  THE  CONTRARY,  A
 PERSON  WHO IS A BONA FIDE MEMBER OF AN ORGANIZATION LICENSED TO CONDUCT
 THE GAME OF BINGO AND IS ALSO A BONA FIDE MEMBER OF ONE  OR  MORE  OTHER
 ORGANIZATIONS  THAT  ARE ALSO LICENSED TO CONDUCT THE GAME OF BINGO, AND
 SUCH ORGANIZATIONS ARE NOT AFFILIATES  OR  AUXILIARIES  OF  THE  OTHERS,
 SHALL  BE  AUTHORIZED  TO OPERATE, CONDUCT OR ASSIST IN THE OPERATION OR
 CONDUCT OF GAMES OF BINGO HELD BY ANY OF SUCH ORGANIZATIONS LICENSED  TO
 CONDUCT BINGO.
   §  1531.  CHARGE  FOR  ADMISSION  AND PARTICIPATION; AMOUNT OF PRIZES;
 AWARD OF PRIZES. 1. EXCEPT IN THE CONDUCT OF LIMITED-PERIOD  BINGO,  THE
 REGULATIONS  OF  THE  COMMISSION  SHALL ESTABLISH A MAXIMUM AMOUNT TO BE
 CHARGED BY ANY LICENSEE FOR ADMISSION TO ANY ROOM OR PLACE IN WHICH  ANY
 GAME  OR  GAMES  OF  BINGO  ARE TO BE CONDUCTED UNDER ANY LICENSE ISSUED
 UNDER THIS TITLE, WHICH ADMISSION FEE, UPON PAYMENT THEREOF, SHALL ENTI-
 TLE THE PERSON PAYING THE SAME TO PARTICIPATE WITHOUT ADDITIONAL  CHARGE
 IN  ALL  REGULAR  GAMES OF BINGO TO BE PLAYED UNDER SUCH LICENSE ON SUCH
 OCCASION.
   2. IN THE CONDUCT OF LIMITED-PERIOD BINGO:
   (A) NO ADMISSION FEE SHALL BE CHARGED;
   (B) NOT MORE THAN AN AMOUNT ESTABLISHED BY REGULATION OF  THE  COMMIS-
 SION SHALL BE CHARGED FOR A SINGLE OPPORTUNITY TO PARTICIPATE IN ANY ONE
 GAME  OF  BINGO,  WHICH  CHARGE, UPON PAYMENT THEREOF, SHALL ENTITLE THE
 PERSON PAYING THE SAME TO ONE CARD FOR PARTICIPATION IN ONE  SUCH  GAME;
 AND
   (C) NO LICENSEE SHALL SELL MORE THAN FIVE OPPORTUNITIES TO EACH PLAYER
 PARTICIPATING  IN ANY ONE GAME OF BINGO. EVERY WINNER IN A GAME OF BINGO
 SHALL BE DETERMINED AND EVERY PRIZE SHALL BE AWARDED AND DELIVERED WITH-
 IN THE SAME CALENDAR DAY AS THAT  UPON  WHICH  THE  GAME  OF  BINGO  WAS
 PLAYED.
   §  1532.  STATEMENT OF RECEIPTS, EXPENSES; ADDITIONAL LICENSE FEES. 1.
 WITHIN SEVEN DAYS AFTER THE CONCLUSION OF ANY  OCCASION  OF  BINGO,  THE
 AUTHORIZED  ORGANIZATION  THAT  CONDUCTED  THE SAME, AND SUCH AUTHORIZED
 ORGANIZATION'S MEMBERS WHO WERE IN CHARGE THEREOF, AND  WHEN  APPLICABLE
 THE  AUTHORIZED  ORGANIZATION  THAT  RENTED ITS PREMISES THEREFOR, SHALL
 EACH FURNISH TO THE CLERK OR THE DEPARTMENT A  STATEMENT  SUBSCRIBED  BY
 THE  MEMBER  IN  CHARGE  AND  AFFIRMED BY SUCH PERSON AS TRUE, UNDER THE
 PENALTIES OF PERJURY, SHOWING THE AMOUNT OF THE GROSS  RECEIPTS  DERIVED
 THEREFROM  AND  EACH ITEM OF EXPENSE INCURRED, OR PAID, AND EACH ITEM OF
 EXPENDITURE MADE OR TO BE MADE, THE NAME AND ADDRESS OF EACH  PERSON  TO
 WHOM  EACH  SUCH  ITEM  HAS BEEN PAID, OR IS TO BE PAID, WITH A DETAILED
 DESCRIPTION OF THE MERCHANDISE PURCHASED OR THE SERVICES RENDERED THERE-
 FOR, THE NET PROCEEDS DERIVED FROM SUCH GAME OR RENTAL, AS THE CASE  MAY
 BE,  AND  THE  USE TO WHICH SUCH PROCEEDS HAVE BEEN OR ARE TO BE APPLIED

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 AND A LIST OF PRIZES OFFERED AND GIVEN, WITH THE RESPECTIVE VALUES THER-
 EOF. A CLERK OR THE DEPARTMENT SHALL MAKE PROVISIONS FOR THE  ELECTRONIC
 FILING OF SUCH STATEMENT. IT SHALL BE THE DUTY OF EACH LICENSEE TO MAIN-
 TAIN AND KEEP SUCH BOOKS AND RECORDS AS MAY BE NECESSARY TO SUBSTANTIATE
 THE PARTICULARS OF EACH SUCH STATEMENT AND WITHIN FIFTEEN DAYS AFTER THE
 END OF EACH CALENDAR QUARTER DURING WHICH THERE HAS BEEN ANY OCCASION OF
 BINGO,  A  SUMMARY  STATEMENT OF SUCH INFORMATION, IN FORM PRESCRIBED BY
 THE COMMISSION, SHALL BE FURNISHED IN THE SAME MANNER TO THE COMMISSION.
   2. UPON THE FILING OF  SUCH  STATEMENT  OF  RECEIPTS,  THE  AUTHORIZED
 ORGANIZATION  FURNISHING  THE SAME SHALL PAY TO THE CLERK OF THE MUNICI-
 PALITY AS AND FOR AN  ADDITIONAL  LICENSE  FEE  A  SUM  BASED  UPON  THE
 REPORTED  NET  PROCEEDS, IF ANY, FOR THE OCCASION COVERED BY SUCH STATE-
 MENT AND DETERMINED IN ACCORDANCE WITH SUCH SCHEDULE AS SHALL BE  ESTAB-
 LISHED FROM TIME TO TIME BY THE COMMISSION TO DEFRAY THE COST TO MUNICI-
 PALITIES OF ADMINISTERING THE PROVISIONS OF THIS ARTICLE.
   §  1533.  EXAMINATION  OF  BOOKS AND RECORDS; EXAMINATION OF MANAGERS,
 ETC.; DISCLOSURE OF INFORMATION. 1. THE GOVERNING BODY  OF  THE  MUNICI-
 PALITY  AND  THE  COMMISSION  SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE
 EXAMINED THE BOOKS AND RECORDS OF ANY:
   (A) AUTHORIZED ORGANIZATION THAT IS OR HAS BEEN  LICENSED  TO  CONDUCT
 BINGO,  SO  FAR AS SUCH BOOKS AND RECORDS MAY RELATE TO BINGO, INCLUDING
 THE MAINTENANCE, CONTROL AND DISPOSITION OF NET  PROCEEDS  DERIVED  FROM
 BINGO  OR  FROM  THE  USE  OF ITS PREMISES FOR BINGO, AND TO EXAMINE ANY
 MANAGER, OFFICER, DIRECTOR, AGENT, MEMBER OR EMPLOYEE THEREOF UNDER OATH
 IN RELATION TO THE CONDUCT OF ANY SUCH GAME  OF  BINGO  UNDER  ANY  SUCH
 LICENSE,  THE  USE  OF ITS PREMISES FOR BINGO, OR THE DISPOSITION OF NET
 PROCEEDS DERIVED FROM BINGO, AS THE CASE MAY BE; AND
   (B) LICENSED AUTHORIZED BINGO LESSOR SO FAR AS SUCH BOOKS AND  RECORDS
 MAY  RELATE  TO LEASING PREMISES FOR BINGO AND TO EXAMINE SAID LESSOR OR
 ANY MANAGER, OFFICER, DIRECTOR, AGENT OR EMPLOYEE THEREOF UNDER OATH  IN
 RELATION TO SUCH LEASING.
   2. ANY INFORMATION SO RECEIVED SHALL NOT BE DISCLOSED EXCEPT SO FAR AS
 MAY  BE NECESSARY FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THIS
 ARTICLE.
   § 1534. APPEALS FROM MUNICIPAL GOVERNING  BODY  TO  COMMISSION.    ANY
 APPLICANT  FOR,  OR  HOLDER OF, ANY LICENSE ISSUED OR TO BE ISSUED UNDER
 THIS TITLE AGGRIEVED BY ANY ACTION OF THE GOVERNING BODY OF THE  MUNICI-
 PALITY  TO WHICH SUCH APPLICATION HAS BEEN MADE OR BY WHICH SUCH LICENSE
 HAS BEEN ISSUED, MAY APPEAL TO THE COMMISSION FROM THE DETERMINATION  OF
 SAID  GOVERNING  BODY BY FILING WITH THE GOVERNING BODY A WRITTEN NOTICE
 OF APPEAL WITHIN THIRTY DAYS AFTER THE DETERMINATION OR ACTION  APPEALED
 FROM.  UPON  THE  HEARING  OF  SUCH  APPEAL, THE EVIDENCE, IF ANY, TAKEN
 BEFORE THE GOVERNING BODY AND ANY ADDITIONAL EVIDENCE  MAY  BE  PRODUCED
 AND SHALL BE CONSIDERED IN ARRIVING AT A DETERMINATION OF THE MATTERS IN
 ISSUE.  ACTION  OF THE COMMISSION UPON SAID APPEAL SHALL BE BINDING UPON
 SAID GOVERNING BODY AND ALL PARTIES TO SAID APPEAL.
   § 1535. EXEMPTION FROM PROSECUTION. NO PERSON OR CORPORATION  LAWFULLY
 CONDUCTING,  OR  PARTICIPATING IN THE CONDUCT OF BINGO OR PERMITTING THE
 CONDUCT UPON ANY PREMISES OWNED OR LEASED BY HIM, HER OR  IT  UNDER  ANY
 LICENSE LAWFULLY ISSUED PURSUANT TO THIS TITLE, SHALL BE LIABLE TO PROS-
 ECUTION  OR  CONVICTION  FOR  VIOLATION  OF ANY PROVISION OF ARTICLE TWO
 HUNDRED TWENTY-FIVE OF THE PENAL LAW OR ANY OTHER LAW  OR  ORDINANCE  TO
 THE  EXTENT  THAT SUCH CONDUCT IS SPECIFICALLY AUTHORIZED BY THIS TITLE,
 BUT THIS IMMUNITY SHALL NOT EXTEND TO ANY PERSON OR CORPORATION KNOWING-
 LY CONDUCTING OR PARTICIPATING IN THE CONDUCT OF BINGO UNDER ANY LICENSE
 OBTAINED BY ANY FALSE PRETENSE OR BY ANY FALSE  STATEMENT  MADE  IN  ANY

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 APPLICATION FOR LICENSE OR OTHERWISE, OR PERMITTING THE CONDUCT UPON ANY
 PREMISES  OWNED  OR  LEASED  BY  HIM,  HER  OR  IT  OF ANY GAME OF BINGO
 CONDUCTED UNDER ANY LICENSE KNOWN  TO  HIM,  HER  OR  IT  TO  HAVE  BEEN
 OBTAINED BY ANY SUCH FALSE PRETENSE OR STATEMENT.
   §  1536.  OFFENSES;  FORFEITURE OF LICENSE; INELIGIBILITY TO APPLY FOR
 LICENSE. ANY PERSON WHO, OR ASSOCIATION OR CORPORATION THAT:
   1. MAKES ANY FALSE  STATEMENT  IN  ANY  APPLICATION  FOR  ANY  LICENSE
 AUTHORIZED TO BE ISSUED UNDER THIS TITLE;
   2. PAYS OR RECEIVES, FOR THE USE OF ANY PREMISES FOR CONDUCTING BINGO,
 A  RENTAL  IN  EXCESS OF THE AMOUNT SPECIFIED AS THE PERMISSIBLE RENT IN
 THE LICENSE PROVIDED FOR IN SUBDIVISION TWO OF SECTION  FIFTEEN  HUNDRED
 TWENTY-FOUR OF THIS TITLE;
   3.  FAILS  TO  KEEP  BOOKS AND RECORDS THAT FULLY AND TRULY RECORD ALL
 TRANSACTIONS CONNECTED WITH THE CONDUCTING OF BINGO OR  THE  LEASING  OF
 PREMISES TO BE USED FOR THE CONDUCT OF BINGO;
   4.  FALSIFIES  OR MAKES ANY FALSE ENTRY IN ANY BOOKS OR RECORDS SO FAR
 AS SUCH BOOKS OR RECORDS RELATE IN ANY MANNER TO THE CONDUCT  OF  BINGO,
 TO THE DISPOSITION OF THE PROCEEDS THEREOF AND TO THE APPLICATION OF THE
 RENTS RECEIVED BY ANY AUTHORIZED ORGANIZATION;
   5.  DIVERTS  OR  PAYS  ANY  PORTION OF THE NET PROCEEDS OF ANY GAME OF
 BINGO TO ANY PERSON, ASSOCIATION OR CORPORATION, EXCEPT  IN  FURTHERANCE
 OF ONE OR MORE OF THE LAWFUL PURPOSES DEFINED IN THIS TITLE; OR
   6.  VIOLATES ANY OF THE PROVISIONS OF THIS TITLE OR OF ANY TERM OF ANY
 LICENSE ISSUED UNDER THIS TITLE; SHALL BE GUILTY OF  A  MISDEMEANOR  AND
 SHALL  FORFEIT  ANY LICENSE ISSUED UNDER THIS TITLE AND BE INELIGIBLE TO
 APPLY FOR A LICENSE UNDER THIS TITLE FOR ONE YEAR THEREAFTER.
   § 1537. UNLAWFUL BINGO. 1. FOR THE PURPOSES  OF  THIS  SECTION,  BINGO
 SHALL  INCLUDE  A GAME OF BINGO WHETHER OR NOT A PERSON WHO PARTICIPATES
 AS A PLAYER FURNISHES SOMETHING OF VALUE FOR THE OPPORTUNITY TO  PARTIC-
 IPATE.
   2.  ANY  PERSON, FIRM, PARTNERSHIP, ASSOCIATION, CORPORATION OR ORGAN-
 IZATION HOLDING, OPERATING OR CONDUCTING BINGO IS GUILTY OF A  MISDEMEA-
 NOR, EXCEPT WHEN OPERATING, HOLDING OR CONDUCTING:
   (A)  IN ACCORDANCE WITH A VALID LICENSE ISSUED PURSUANT TO THIS TITLE;
 OR
   (B) WITHIN A MUNICIPALITY THAT HAS AUTHORIZED  THE  CONDUCT  OF  BINGO
 GAMES BY AUTHORIZED ORGANIZATIONS:
   (1)  WITHIN THE CONFINES OF A HOME FOR PURPOSES OF AMUSEMENT OR RECRE-
 ATION WHERE NO PLAYER OR OTHER PERSON FURNISHES ANYTHING  OF  VALUE  FOR
 THE  OPPORTUNITY  TO PARTICIPATE AND THE PRIZES AWARDED OR TO BE AWARDED
 ARE NOMINAL.
   (2) WITHIN ANY APARTMENT, CONDOMINIUM OR COOPERATIVE COMPLEX,  RETIRE-
 MENT COMMUNITY, OR OTHER GROUP RESIDENTIAL COMPLEX OR FACILITY WHERE:
   (I)  SPONSORED  BY  THE  OPERATOR OF OR AN ASSOCIATION RELATED TO SUCH
 COMPLEX, COMMUNITY OR FACILITY;
   (II) SUCH GAMES ARE CONDUCTED SOLELY FOR THE PURPOSE OF AMUSEMENT  AND
 RECREATION OF ITS RESIDENTS;
   (III)  NO  PLAYER  OR OTHER PERSON FURNISHES ANYTHING OF VALUE FOR THE
 OPPORTUNITY TO PARTICIPATE;
   (IV) THE VALUE OF THE PRIZES DO NOT EXCEED TEN  DOLLARS  FOR  ANY  ONE
 GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
   (V)  SUCH GAMES ARE NOT CONDUCTED ON MORE THAN FIFTEEN DAYS DURING ANY
 CALENDAR YEAR; AND
   (VI) NO PERSON OTHER THAN AN EMPLOYEE OR VOLUNTEER  OF  SUCH  COMPLEX,
 COMMUNITY  OR  FACILITY  CONDUCTS  OR  ASSISTS IN CONDUCTING THE GAME OR
 GAMES.

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   (3) ON BEHALF OF ANY BONA FIDE SOCIAL, CHARITABLE, EDUCATIONAL, RECRE-
 ATIONAL, FRATERNAL OR AGE-GROUP ORGANIZATION, CLUB OR ASSOCIATION SOLELY
 FOR THE PURPOSE OF AMUSEMENT AND RECREATION OF ITS MEMBERS OR  BENEFICI-
 ARIES WHERE:
   (I)  NO  PLAYER  OR  OTHER  PERSON FURNISHES ANYTHING OF VALUE FOR THE
 OPPORTUNITY TO PARTICIPATE;
   (II) THE VALUE OF THE PRIZES DO NOT EXCEED TEN  DOLLARS  FOR  ANY  ONE
 GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
   (III)  SUCH  GAMES  ARE NOT CONDUCTED ON MORE THAN FIFTEEN DAYS DURING
 ANY CALENDAR YEAR;
   (IV) NO PERSON OTHER THAN A BONA FIDE ACTIVE MEMBER OF  THE  ORGANIZA-
 TION, CLUB OR ASSOCIATION PARTICIPATES IN THE CONDUCT OF THE GAMES; AND
   (V)  NO  PERSON  IS PAID FOR CONDUCTING OR ASSISTING IN THE CONDUCT OF
 THE GAME OR GAMES.
   (4) AS A HOTEL'S, MOTEL'S, RECREATIONAL OR ENTERTAINMENT FACILITY'S OR
 COMMON CARRIER'S SOCIAL ACTIVITY SOLELY FOR THE PURPOSE OF AMUSEMENT AND
 RECREATION OF ITS PATRONS WHERE:
   (I) NO PLAYER OR OTHER PERSON FURNISHES  ANYTHING  OF  VALUE  FOR  THE
 OPPORTUNITY TO PARTICIPATE;
   (II)  THE  VALUE  OF  THE PRIZES DO NOT EXCEED TEN DOLLARS FOR ANY ONE
 GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
   (III) SUCH GAMES ARE NOT CONDUCTED ON MORE THAN  FIFTEEN  DAYS  DURING
 ANY CALENDAR YEAR;
   (IV) NO PERSON OTHER THAN AN EMPLOYEE OR VOLUNTEER CONDUCTS OR ASSISTS
 IN CONDUCTING THE GAME OR GAMES; AND
   (V)  THE  GAME OR GAMES ARE NOT CONDUCTED IN THE SAME ROOM WHERE ALCO-
 HOLIC BEVERAGES ARE SOLD.
   (5) THE COMMISSION AND THE GOVERNING BODY OF THE MUNICIPALITY IN WHICH
 BINGO GAMES ARE CONDUCTED PURSUANT TO PARAGRAPH (B) OF  SUBDIVISION  TWO
 OF THIS SECTION SHALL HAVE THE AUTHORITY TO REGULATE THE CONDUCT OF SUCH
 GAMES.  ANY BINGO GAME OR GAMES, IN WHICH NO PARTICIPANT OR OTHER PERSON
 FURNISHES ANYTHING OF VALUE FOR THE OPPORTUNITY TO PARTICIPATE, THAT  IS
 OR ARE OPERATED IN VIOLATION OF PARAGRAPH (B) OF SUBDIVISION TWO OF THIS
 SECTION,  A  CIVIL  PENALTY  OF NOT MORE THAN ONE HUNDRED DOLLARS MAY BE
 IMPOSED FOR THE FIRST SUCH VIOLATION, A CIVIL PENALTY OF NOT  MORE  THAN
 ONE  HUNDRED  FIFTY DOLLARS MAY BE IMPOSED FOR THE SECOND SUCH VIOLATION
 IN A PERIOD OF THREE YEARS AND A CIVIL PENALTY  OF  NOT  MORE  THAN  TWO
 HUNDRED  DOLLARS  MAY  BE  IMPOSED  FOR  THE  THIRD  OR  SUBSEQUENT SUCH
 VIOLATION IN A PERIOD OF FIVE YEARS.
   3. THE PROVISIONS OF THIS SECTION SHALL APPLY  TO  ALL  MUNICIPALITIES
 WITHIN  THIS  STATE,  INCLUDING THOSE MUNICIPALITIES WHERE THIS TITLE IS
 INOPERATIVE.
   § 1538. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS. EXCEPT AS  PROVIDED
 IN  SECTION  FIFTEEN  HUNDRED  FORTY, THE PROVISIONS OF THIS TITLE SHALL
 REMAIN INOPERATIVE IN ANY MUNICIPALITY UNLESS AND  UNTIL  A  PROPOSITION
 THEREFOR SUBMITTED AT A GENERAL OR SPECIAL ELECTION IN SUCH MUNICIPALITY
 IS  APPROVED BY A VOTE OF THE MAJORITY OF THE QUALIFIED ELECTORS IN SUCH
 MUNICIPALITY VOTING THEREON.
   § 1539. AMENDMENT AND REPEAL OF LOCAL LAWS AND  ORDINANCES.  1.    ANY
 LOCAL  LAW  OR  ORDINANCE  CONCERNING BINGO MAY BE AMENDED, FROM TIME TO
 TIME, OR REPEALED BY THE COMMON COUNCIL OR OTHER LOCAL LEGISLATIVE  BODY
 OF THE MUNICIPALITY THAT ENACTED IT AND SUCH AMENDMENT OR REPEAL, AS THE
 CASE MAY BE, MAY BE MADE EFFECTIVE AND OPERATIVE NOT EARLIER THAN THIRTY
 DAYS  FOLLOWING THE EFFECTIVE DATE OF THE LOCAL LAW OR ORDINANCE EFFECT-
 ING SUCH AMENDMENT OR REPEAL, AS THE CASE MAY BE.

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   2. THE APPROVAL OF A MAJORITY OF THE  ELECTORS  OF  SUCH  MUNICIPALITY
 SHALL NOT BE A CONDITION PREREQUISITE TO THE TAKING EFFECT OF SUCH LOCAL
 LAW OR ORDINANCE.
   §  1540. DELEGATION OF AUTHORITY. THE GOVERNING BODY OF A MUNICIPALITY
 MAY DELEGATE TO A MUNICIPAL OFFICER OR OFFICERS DESIGNATED BY SUCH MUNI-
 CIPALITY FOR THAT PURPOSE ANY OF THE AUTHORITY GRANTED TO IT  HEREBY  IN
 RELATION  TO  THE  ISSUANCE, AMENDMENT AND CANCELLATION OF LICENSES, THE
 CONDUCT OF INVESTIGATIONS AND HEARINGS, THE SUPERVISION OF THE OPERATION
 OF THE GAMES AND THE COLLECTION AND TRANSMISSION OF FEES.
   § 1541. POWERS AND DUTIES OF MAYORS OR  MANAGERS  OF  CERTAIN  CITIES.
 NOTWITHSTANDING  ANY OTHER PROVISION OF THIS TITLE, WHENEVER THE CHARTER
 OF ANY CITY, OR ANY SPECIAL OR LOCAL LAW, PROVIDES  THAT  THE  MAYOR  OR
 MANAGER  OF SUCH CITY IS THE CHIEF LAW ENFORCEMENT OFFICER THEREOF, THEN
 AND IN THAT EVENT SUCH MAYOR OR MANAGER, AS THE CASE MAY BE, SHALL HAVE,
 EXERCISE AND PERFORM ALL THE POWERS AND DUTIES OTHERWISE  PRESCRIBED  BY
 THIS  TITLE  TO BE EXERCISED AND PERFORMED BY THE GOVERNING BODY OF SUCH
 CITY EXCEPT THOSE PRESCRIBED BY SECTION FIFTEEN  HUNDRED  TWENTY-TWO  OF
 THIS  TITLE, AND IN ANY SUCH CASE, THE TERM "GOVERNING BODY OF A MUNICI-
 PALITY" AS USED IN THIS TITLE SHALL BE DEEMED TO MEAN  AND  INCLUDE  THE
 MAYOR OR MANAGER OF ANY SUCH CITY.
                                  TITLE 4
          LOCAL OPTION FOR CONDUCT OF GAMES OF CHANCE BY CERTAIN
                               ORGANIZATIONS
 SECTION 1550. SHORT TITLE; PURPOSE OF TITLE.
         1551. LOCAL OPTION.
         1552. LOCAL LAWS AND ORDINANCES.
         1553. POWERS AND DUTIES OF THE COMMISSION.
         1554. RESTRICTIONS UPON CONDUCT OF GAMES OF CHANCE.
         1555. AUTHORIZED SUPPLIER OF GAMES OF CHANCE EQUIPMENT.
         1556. DECLARATION   OF   STATE'S  EXEMPTION  FROM  OPERATION  OF
                 PROVISIONS OF 15 U.S.C. § 1172.
         1557. LEGAL SHIPMENTS OF GAMING DEVICES INTO NEW YORK STATE.
         1558. APPLICATION FOR LICENSE.
         1559. RAFFLES; LICENSE NOT REQUIRED.
         1560. INVESTIGATION;  MATTERS  TO  BE  DETERMINED;  ISSUANCE  OF
                 LICENSE; FEES; DURATION OF LICENSE.
         1561. HEARING; AMENDMENT OF LICENSE.
         1562. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE.
         1563. CONTROL  AND  SUPERVISION;  SUSPENSION  OF  IDENTIFICATION
                 NUMBERS AND LICENSES; INSPECTIONS OF PREMISES.
         1564. FREQUENCY OF GAMES.
         1565. PERSONS  OPERATING  GAMES;  EQUIPMENT;  EXPENSES;  COMPEN-
                 SATION.
         1566. CHARGE  FOR ADMISSION AND PARTICIPATION; AMOUNT OF PRIZES;
                 AWARD OF PRIZES.
         1567. STATEMENT OF RECEIPTS  AND  EXPENSES;  ADDITIONAL  LICENSE
                 FEES.
         1568. EXAMINATION  OF BOOKS AND RECORDS; EXAMINATION OF OFFICERS
                 AND EMPLOYEES; DISCLOSURE OF INFORMATION.
         1569. APPEALS FOR THE DECISION OF A MUNICIPAL OFFICER, CLERK  OR
                 DEPARTMENT TO THE COMMISSION.
         1570. EXEMPTION FROM PROSECUTION.
         1571. OFFENSES;  FORFEITURE  OF  LICENSE; INELIGIBILITY TO APPLY
                 FOR LICENSE.
         1572. UNLAWFUL GAMES OF CHANCE.
         1573. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS.

 S. 2009--A                         129                        A. 3009--A
 
         1574. AMENDMENT AND REPEAL OF LOCAL LAWS AND ORDINANCES.
         1575. MANUFACTURERS OF BELL JARS; REPORTS AND RECORDS.
         1576. DISTRIBUTOR OF BELL JARS; REPORTS AND RECORDS.
         1577. TRANSFER RESTRICTIONS.
         1578. BELL JARS COMPLIANCE AND ENFORCEMENT.
   §  1550.  SHORT TITLE; PURPOSE OF TITLE. THIS TITLE SHALL BE KNOWN AND
 MAY BE CITED AS THE GAMES OF CHANCE LICENSING LAW. THE LEGISLATURE HERE-
 BY DECLARES THAT THE RAISING OF FUNDS FOR THE  PROMOTION  OF  BONA  FIDE
 CHARITABLE,  EDUCATIONAL,  SCIENTIFIC,  HEALTH,  RELIGIOUS AND PATRIOTIC
 CAUSES AND UNDERTAKINGS, WHERE THE BENEFICIARIES ARE UNDETERMINED, IS IN
 THE PUBLIC INTEREST. THE LEGISLATURE HEREBY  FINDS  THAT,  AS  CONDUCTED
 PRIOR  TO  THE  EFFECTIVE  DATE  OF THIS TITLE, GAMES OF CHANCE WERE THE
 SUBJECT OF EXPLOITATION BY PROFESSIONAL GAMBLERS, PROMOTERS AND  COMMER-
 CIAL  INTERESTS.  IT IS HEREBY DECLARED TO BE THE POLICY OF THE LEGISLA-
 TURE THAT ALL PHASES OF THE SUPERVISION,  LICENSING  AND  REGULATION  OF
 GAMES  OF CHANCE AND OF THE CONDUCT OF GAMES OF CHANCE SHOULD BE CLOSELY
 CONTROLLED AND THAT THE LAWS AND REGULATIONS PERTAINING  THERETO  SHOULD
 BE STRICTLY CONSTRUED AND RIGIDLY ENFORCED; THAT THE CONDUCT OF THE GAME
 AND  ALL  ATTENDANT  ACTIVITIES  SHOULD  BE  SO  REGULATED  AND ADEQUATE
 CONTROLS SO INSTITUTED AS TO DISCOURAGE COMMERCIALIZATION OF GAMBLING IN
 ALL ITS FORMS, INCLUDING THE RENTAL OF COMMERCIAL PREMISES FOR GAMES  OF
 CHANCE,  AND  TO  ENSURE  A  MAXIMUM AVAILABILITY OF THE NET PROCEEDS OF
 GAMES OF CHANCE EXCLUSIVELY FOR APPLICATION TO  THE  WORTHY  CAUSES  AND
 UNDERTAKINGS  SPECIFIED  HEREIN;  THAT  THE  ONLY JUSTIFICATION FOR THIS
 TITLE IS TO FOSTER AND SUPPORT SUCH WORTHY CAUSES AND UNDERTAKINGS,  AND
 THAT  THE  MANDATE  OF SUBDIVISION TWO OF SECTION NINE OF ARTICLE ONE OF
 THE STATE CONSTITUTION, AS AMENDED, SHOULD BE CARRIED OUT BY RIGID REGU-
 LATIONS TO PREVENT COMMERCIALIZED  GAMBLING,  PREVENT  PARTICIPATION  BY
 CRIMINAL  AND  OTHER  UNDESIRABLE  ELEMENTS AND PREVENT THE DIVERSION OF
 FUNDS FROM THE PURPOSES HEREIN AUTHORIZED.
   § 1551. LOCAL OPTION. SUBJECT TO THE PROVISIONS  OF  THIS  TITLE,  AND
 PURSUANT  TO  THE DIRECTION CONTAINED IN SUBDIVISION TWO OF SECTION NINE
 OF ARTICLE ONE OF THE STATE CONSTITUTION, THE LEGISLATURE  HEREBY  GIVES
 AND  GRANTS  TO  EVERY  MUNICIPALITY  THE  RIGHT, POWER AND AUTHORITY TO
 AUTHORIZE THE CONDUCT OF GAMES OF  CHANCE  BY  AUTHORIZED  ORGANIZATIONS
 WITHIN THE TERRITORIAL LIMITS OF SUCH MUNICIPALITY. A LOCAL LAW OR ORDI-
 NANCE  ADOPTED BY A TOWN SHALL BE OPERATIVE IN ANY VILLAGE OR WITHIN ANY
 PART OF ANY VILLAGE LOCATED WITHIN SUCH TOWN IF, AFTER ADOPTION OF  SUCH
 LOCAL  LAW  OR ORDINANCE, THE BOARD OF TRUSTEES OF SUCH VILLAGE ADOPTS A
 LOCAL LAW OR RESOLUTION SUBJECT TO A PERMISSIVE REFERENDUM  AS  PROVIDED
 IN  ARTICLE NINE OF THE VILLAGE LAW AUTHORIZING THE ISSUANCE OF LICENSES
 BY THE TOWN FOR GAMES OF CHANCE WITHIN SUCH VILLAGE. SUCH LOCAL  LAW  OR
 RESOLUTION  MAY BE REPEALED ONLY BY A LOCAL LAW OR RESOLUTION THAT SHALL
 ALSO BE SUBJECT TO A PERMISSIVE REFERENDUM, OR BY ENACTMENT OF  A  LOCAL
 LAW  AUTHORIZING  GAMES OF CHANCE AS PROVIDED IN SECTION FIFTEEN HUNDRED
 FIFTY-TWO OF THIS TITLE.
   § 1552. LOCAL LAWS AND ORDINANCES. 1.  THE  COMMON  COUNCIL  OR  OTHER
 LOCAL  LEGISLATIVE  BODY OF ANY MUNICIPALITY MAY, EITHER BY LOCAL LAW OR
 ORDINANCE, PROVIDE THAT IT SHALL BE LAWFUL FOR ANY AUTHORIZED  ORGANIZA-
 TION,  UPON  OBTAINING  A  LICENSE  THEREFOR AS HEREINAFTER PROVIDED, TO
 CONDUCT GAMES OF CHANCE WITHIN THE TERRITORIAL LIMITS  OF  SUCH  MUNICI-
 PALITY,  SUBJECT  TO  THE PROVISIONS OF SUCH LOCAL LAW OR ORDINANCE, THE
 PROVISIONS OF THIS TITLE AND THE PROVISIONS SET FORTH BY THE COMMISSION.
   2. NO SUCH LOCAL LAW OR ORDINANCE SHALL BECOME OPERATIVE OR  EFFECTIVE
 UNLESS  AND UNTIL IT SHALL HAVE BEEN APPROVED BY A MAJORITY OF THE ELEC-
 TORS VOTING ON A PROPOSITION SUBMITTED AT A GENERAL OR SPECIAL  ELECTION

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 HELD  WITHIN SUCH MUNICIPALITY WHO ARE QUALIFIED TO VOTE FOR OFFICERS OF
 SUCH MUNICIPALITY.
   3.  THE  TIME,  METHOD  AND  MANNER  OF  SUBMISSION,  PREPARATION  AND
 PROVISION OF BALLOTS AND BALLOT LABELS, BALLOTING BY VOTING MACHINE  AND
 CONDUCTING THE ELECTION, CANVASSING THE RESULT AND MAKING AND FILING THE
 RETURNS  AND ALL OTHER PROCEDURE WITH REFERENCE TO THE SUBMISSION OF AND
 ACTION UPON ANY PROPOSITION FOR THE APPROVAL OF ANY SUCH  LOCAL  LAW  OR
 ORDINANCE  SHALL  BE THE SAME AS IN THE CASE OF ANY OTHER PROPOSITION TO
 BE SUBMITTED TO THE ELECTORS  OF  SUCH  MUNICIPALITY  AT  A  GENERAL  OR
 SPECIAL ELECTION IN SUCH MUNICIPALITY, AS PROVIDED BY LAW.
   § 1553. POWERS AND DUTIES OF THE COMMISSION. THE COMMISSION SHALL HAVE
 THE POWER AND IT SHALL BE THE DUTY OF THE COMMISSION TO:
   1.  SUPERVISE  THE ADMINISTRATION OF THE GAMES OF CHANCE LICENSING LAW
 AND TO ADOPT, AMEND AND REPEAL RULES AND REGULATIONS GOVERNING THE ISSU-
 ANCE AND AMENDMENT OF LICENSES THEREUNDER AND THE  CONDUCTING  OF  GAMES
 UNDER  SUCH  LICENSES,  WHICH RULES AND REGULATIONS SHALL HAVE THE FORCE
 AND EFFECT OF LAW AND SHALL BE BINDING UPON ALL  MUNICIPALITIES  ISSUING
 LICENSES,  AND  UPON  LICENSEES  OF THE COMMISSION, TO THE END THAT SUCH
 LICENSES SHALL BE ISSUED TO QUALIFIED  LICENSEES  ONLY,  AND  THAT  SAID
 GAMES SHALL BE FAIRLY AND PROPERLY CONDUCTED FOR THE PURPOSES AND IN THE
 MANNER  OF  THE  SAID  GAMES  OF  CHANCE LICENSING LAW PRESCRIBED AND TO
 PREVENT THE GAMES OF CHANCE THEREBY  AUTHORIZED  TO  BE  CONDUCTED  FROM
 BEING  CONDUCTED  FOR  COMMERCIAL  PURPOSES OR PURPOSES OTHER THAN THOSE
 THEREIN AUTHORIZED, PARTICIPATED IN BY  CRIMINAL  OR  OTHER  UNDESIRABLE
 ELEMENTS  AND  THE  FUNDS DERIVED FROM THE GAMES BEING DIVERTED FROM THE
 PURPOSES AUTHORIZED, AND TO PROVIDE UNIFORMITY IN THE ADMINISTRATION  OF
 SAID  LAW  THROUGHOUT THE STATE, THE COMMISSION SHALL PRESCRIBE FORMS OF
 APPLICATION FOR LICENSES, LICENSEES, AMENDMENT OF LICENSES,  REPORTS  OF
 THE CONDUCT OF GAMES AND OTHER MATTERS INCIDENT TO THE ADMINISTRATION OF
 SUCH LAW.
   2.  CONDUCT,  ANYWHERE  IN  THE  STATE, INVESTIGATIONS OF THE ADMINIS-
 TRATION, ENFORCEMENT AND POTENTIAL OR ACTUAL VIOLATIONS OF THE GAMES  OF
 CHANCE LICENSING LAW AND OF THE RULES AND REGULATIONS OF THE COMMISSION.
   3. REVIEW ALL DETERMINATIONS AND ACTIONS OF THE CLERK OR DEPARTMENT IN
 ISSUING  AN INITIAL LICENSE AND IT MAY REVIEW THE ISSUANCE OF SUBSEQUENT
 LICENSES AND, AFTER HEARING, REVOKE THOSE LICENSES THAT DO  NOT  IN  ALL
 RESPECTS  MEET  THE  REQUIREMENTS  OF THIS TITLE AND THE RULES AND REGU-
 LATIONS OF THE COMMISSION.
   4. SUSPEND OR REVOKE A LICENSE, AFTER HEARING, FOR  ANY  VIOLATION  OF
 THE PROVISIONS OF THIS TITLE OR THE RULES AND REGULATIONS OF THE COMMIS-
 SION.
   5.  HEAR  APPEALS  FROM  THE  DETERMINATIONS  AND ACTION OF THE CLERK,
 DEPARTMENT OR MUNICIPAL OFFICER IN CONNECTION WITH THE REFUSING TO ISSUE
 LICENSES, THE SUSPENSION AND REVOCATION OF LICENSES AND  THE  IMPOSITION
 OF  FINES  IN  THE  MANNER PRESCRIBED BY LAW AND THE ACTION AND DETERMI-
 NATION OF THE COMMISSION UPON ANY SUCH APPEAL SHALL BE BINDING UPON  THE
 CLERK, DEPARTMENT OR MUNICIPAL OFFICER AND ALL PARTIES THERETO.
   6.  CARRY  ON CONTINUOUS STUDY OF THE OPERATION OF THE GAMES OF CHANCE
 LICENSING LAW TO ASCERTAIN FROM TIME TO TIME DEFECTS THEREIN  JEOPARDIZ-
 ING  OR  THREATENING  TO  JEOPARDIZE  THE PURPOSES OF THIS TITLE, AND TO
 FORMULATE AND RECOMMEND CHANGES IN SUCH LAW AND IN  OTHER  LAWS  OF  THE
 STATE THAT THE COMMISSION MAY DETERMINE TO BE NECESSARY FOR THE REALIZA-
 TION OF SUCH PURPOSES, AND TO THE SAME END TO MAKE A CONTINUOUS STUDY OF
 THE  OPERATION  AND ADMINISTRATION OF SIMILAR LAWS THAT MAY BE IN EFFECT
 IN OTHER STATES OF THE UNITED STATES.

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   7. SUPERVISE THE DISPOSITION OF ALL FUNDS DERIVED FROM THE CONDUCT  OF
 GAMES  OF  CHANCE  BY AUTHORIZED ORGANIZATIONS NOT CURRENTLY LICENSED TO
 CONDUCT SUCH GAMES.
   8. ISSUE AN IDENTIFICATION NUMBER TO AN APPLICANT AUTHORIZED ORGANIZA-
 TION  IF  THE  COMMISSION  DETERMINES  THAT  THE APPLICANT SATISFIES THE
 REQUIREMENTS OF THE GAMES OF CHANCE LICENSING  LAW  AND  THE  RULES  AND
 REGULATIONS OF THE COMMISSION.
   9.  APPROVE  AND ESTABLISH A STANDARD SET OF GAMES OF CHANCE EQUIPMENT
 AND BY RULES AND REGULATIONS PRESCRIBE THE MANNER IN WHICH  SUCH  EQUIP-
 MENT  IS  TO BE REPRODUCED AND DISTRIBUTED TO LICENSED AUTHORIZED ORGAN-
 IZATIONS. THE SALE OR DISTRIBUTION TO A LICENSED AUTHORIZED ORGANIZATION
 OF ANY EQUIPMENT OTHER THAN THAT CONTAINED IN THE STANDARD SET OF  GAMES
 OF CHANCE EQUIPMENT SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
   §  1554.  RESTRICTIONS UPON CONDUCT OF GAMES OF CHANCE. THE CONDUCT OF
 GAMES OF CHANCE AUTHORIZED BY LOCAL LAW OR ORDINANCE SHALL BE SUBJECT TO
 THE FOLLOWING RESTRICTIONS WITHOUT REGARD TO  WHETHER  THE  RESTRICTIONS
 ARE  CONTAINED  IN SUCH LOCAL LAW OR ORDINANCE, BUT NOTHING HEREIN SHALL
 BE CONSTRUED TO PREVENT THE INCLUSION WITHIN SUCH LOCAL LAW OR ORDINANCE
 OF OTHER PROVISIONS IMPOSING ADDITIONAL RESTRICTIONS UPON THE CONDUCT OF
 SUCH GAMES:
   1. NO PERSON, FIRM, PARTNERSHIP, CORPORATION  OR  ORGANIZATION,  OTHER
 THAN A LICENSEE UNDER THE PROVISIONS OF SECTION FIFTEEN HUNDRED SIXTY OF
 THIS TITLE, SHALL
   (A) CONDUCT SUCH GAME; OR
   (B)  LEASE  OR OTHERWISE MAKE AVAILABLE FOR CONDUCTING GAMES OF CHANCE
 PREMISES FOR ANY CONSIDERATION WHATSOEVER, DIRECT OR  INDIRECT,  WITHOUT
 OBTAINING THE PRIOR WRITTEN APPROVAL OF THE COMMISSION.
   2. NO GAME OF CHANCE SHALL BE HELD, OPERATED OR CONDUCTED ON OR WITHIN
 ANY  LEASED PREMISES IF RENTAL UNDER SUCH LEASE IS TO BE PAID, WHOLLY OR
 PARTLY, ON THE BASIS OF A PERCENTAGE OF  THE  RECEIPTS  OR  NET  PROFITS
 DERIVED FROM THE OPERATION OF SUCH GAME.
   3.  NO  AUTHORIZED  ORGANIZATION LICENSED UNDER THE PROVISIONS OF THIS
 TITLE SHALL PURCHASE,  LEASE,  OR  RECEIVE  ANY  SUPPLIES  OR  EQUIPMENT
 SPECIFICALLY  DESIGNED  OR  ADAPTED  FOR  USE IN THE CONDUCT OF GAMES OF
 CHANCE FROM OTHER THAN A SUPPLIER LICENSED BY  THE  COMMISSION  OR  FROM
 ANOTHER  AUTHORIZED  ORGANIZATION.   LEASE TERMS AND CONDITIONS SHALL BE
 SUBJECT TO RULES AND REGULATIONS OF THE COMMISSION.  THE  PROVISIONS  OF
 THIS  TITLE  SHALL NOT BE CONSTRUED TO AUTHORIZE OR PERMIT AN AUTHORIZED
 ORGANIZATION TO ENGAGE IN THE  BUSINESS  OF  LEASING  GAMES  OF  CHANCE,
 SUPPLIES  OR EQUIPMENT. NO ORGANIZATION SHALL PURCHASE BELL JAR TICKETS,
 OR DEALS OF BELL JAR TICKETS, FROM  ANY  OTHER  PERSON  OR  ORGANIZATION
 OTHER  THAN  THOSE SPECIFICALLY AUTHORIZED UNDER SECTION FIFTEEN HUNDRED
 SEVENTY-SIX OF THIS TITLE.
   4. THE ENTIRE NET PROCEEDS OF ANY GAME  OF  CHANCE  SHALL  BE  DEVOTED
 EXCLUSIVELY  TO  THE  LAWFUL  PURPOSES  OF THE ORGANIZATION PERMITTED TO
 CONDUCT THE SAME AND THE NET PROCEEDS OF ANY  RENTAL  DERIVED  THEREFROM
 SHALL  BE  DEVOTED  EXCLUSIVELY TO THE LAWFUL PURPOSES OF THE AUTHORIZED
 GAMES OF CHANCE LESSOR.
   5. (A) NO SINGLE PRIZE AWARDED BY GAMES OF CHANCE  OTHER  THAN  RAFFLE
 SHALL  EXCEED THE SUM OR VALUE OF THREE HUNDRED DOLLARS, EXCEPT THAT FOR
 MERCHANDISE WHEELS, NO SINGLE PRIZE SHALL EXCEED THE SUM OR VALUE OF TWO
 HUNDRED FIFTY DOLLARS, AND FOR BELL JAR, NO SINGLE  PRIZE  SHALL  EXCEED
 THE SUM OR VALUE OF ONE THOUSAND DOLLARS.
   (B) NO SINGLE PRIZE AWARDED BY RAFFLE SHALL EXCEED THE SUM OR VALUE OF
 THREE HUNDRED THOUSAND DOLLARS.

 S. 2009--A                         132                        A. 3009--A
 
   (C)  NO  SINGLE WAGER SHALL EXCEED SIX DOLLARS AND FOR BELL JARS, COIN
 BOARDS OR MERCHANDISE BOARDS, NO SINGLE PRIZE SHALL EXCEED ONE  THOUSAND
 DOLLARS,  PROVIDED, HOWEVER, THAT SUCH LIMITATION SHALL NOT APPLY TO THE
 AMOUNT OF MONEY OR VALUE PAID BY THE PARTICIPANT IN A RAFFLE  IN  RETURN
 FOR A TICKET OR OTHER RECEIPT.
   (D) FOR COIN BOARDS AND MERCHANDISE BOARDS, THE VALUE OF A PRIZE SHALL
 BE  DETERMINED  BY THE COST OF SUCH PRIZE TO THE AUTHORIZED ORGANIZATION
 OR, IF DONATED, THE FAIR MARKET VALUE OF SUCH PRIZE.
   6. (A) NO AUTHORIZED ORGANIZATION  SHALL  AWARD  A  SERIES  OF  PRIZES
 CONSISTING  OF  CASH OR OF MERCHANDISE WITH AN AGGREGATE VALUE IN EXCESS
 OF:
   (1) TEN THOUSAND DOLLARS DURING THE SUCCESSIVE OPERATIONS OF  ANY  ONE
 MERCHANDISE WHEEL; AND
   (2)  SIX THOUSAND DOLLARS DURING THE SUCCESSIVE OPERATIONS OF ANY BELL
 JAR, COIN BOARD OR MERCHANDISE BOARD.
   (B) NO SERIES OF PRIZES AWARDED BY  RAFFLE  SHALL  HAVE  AN  AGGREGATE
 VALUE IN EXCESS OF FIVE HUNDRED THOUSAND DOLLARS.
   (C) FOR COIN BOARDS AND MERCHANDISE BOARDS, THE VALUE OF A PRIZE SHALL
 BE DETERMINED BY ITS COST TO THE AUTHORIZED ORGANIZATION OR, IF DONATED,
 ITS FAIR MARKET VALUE.
   7.  IN  ADDITION TO MERCHANDISE WHEELS, RAFFLES AND BELL JARS, NO MORE
 THAN FIVE OTHER SINGLE TYPES OF  GAMES  OF  CHANCE  SHALL  BE  CONDUCTED
 DURING ANY ONE LICENSE PERIOD.
   8.  (A) EXCEPT FOR MERCHANDISE WHEELS AND RAFFLES, NO SERIES OF PRIZES
 ON ANY ONE OCCASION SHALL AGGREGATE MORE THAN FOUR HUNDRED DOLLARS  WHEN
 THE LICENSED AUTHORIZED ORGANIZATION CONDUCTS FIVE SINGLE TYPES OF GAMES
 OF  CHANCE DURING ANY ONE LICENSE PERIOD. EXCEPT FOR MERCHANDISE WHEELS,
 RAFFLES AND BELL JARS, NO SERIES OF PRIZES ON  ANY  ONE  OCCASION  SHALL
 AGGREGATE  MORE  THAN  FIVE HUNDRED DOLLARS WHEN THE LICENSED AUTHORIZED
 ORGANIZATION CONDUCTS FEWER THAN FIVE SINGLE TYPES OF GAMES  OF  CHANCE,
 EXCLUSIVE  OF  MERCHANDISE WHEELS, RAFFLES AND BELL JARS, DURING ANY ONE
 LICENSE PERIOD.
   (B) NO AUTHORIZED ORGANIZATION SHALL AWARD BY RAFFLE  PRIZES  WITH  AN
 AGGREGATE  VALUE  IN  EXCESS  OF  THREE  MILLION  DOLLARS DURING ANY ONE
 LICENSE PERIOD.
   9. EXCEPT FOR THE LIMITATIONS ON THE SUM OR VALUE  FOR  SINGLE  PRIZES
 AND  SERIES  OF PRIZES, NO LIMIT SHALL BE IMPOSED ON THE SUM OR VALUE OF
 PRIZES AWARDED TO ANY ONE PARTICIPANT DURING ANY OCCASION OR ANY LICENSE
 PERIOD.
   10. (A) NO PERSON EXCEPT A BONA FIDE MEMBER OF THE LICENSED AUTHORIZED
 ORGANIZATION SHALL PARTICIPATE IN THE MANAGEMENT OF SUCH GAMES.
   (B) NO PERSON EXCEPT A BONA FIDE MEMBER  OF  THE  LICENSED  AUTHORIZED
 ORGANIZATION,  ITS  AUXILIARY  OR AFFILIATED ORGANIZATION, SHALL PARTIC-
 IPATE IN THE OPERATION OF SUCH GAME, AS SET  FORTH  IN  SECTION  FIFTEEN
 HUNDRED SIXTY-FIVE OF THIS TITLE.
   11.  NO PERSON SHALL RECEIVE ANY REMUNERATION FOR PARTICIPATING IN THE
 MANAGEMENT OR OPERATION OF ANY SUCH GAME.
   12. NO AUTHORIZED ORGANIZATION SHALL EXTEND  CREDIT  TO  A  PERSON  TO
 PARTICIPATE IN PLAYING A GAME OF CHANCE.
   13.  (A)  NO  GAME  OF  CHANCE, OTHER THAN A RAFFLE THAT COMPLIES WITH
 PARAGRAPH (B) OF THIS SUBDIVISION, SHALL BE CONDUCTED ON OTHER THAN  THE
 PREMISES  OF AN AUTHORIZED ORGANIZATION OR AN AUTHORIZED GAMES OF CHANCE
 LESSOR.
   (B) RAFFLE TICKETS MAY BE SOLD TO THE PUBLIC OUTSIDE THE  PREMISES  OF
 AN  AUTHORIZED  ORGANIZATION  OR AN AUTHORIZED GAMES OF CHANCE LESSOR IF
 SUCH SALES OCCUR IN A MUNICIPALITY THAT:

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   (1) HAS PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN ACCORDANCE WITH
 SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
 TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE;
   (2)  IS  LOCATED  IN  THE COUNTY IN WHICH THE MUNICIPALITY ISSUING THE
 RAFFLE LICENSE IS LOCATED OR IN A COUNTY THAT IS CONTIGUOUS TO THE COUN-
 TY IN WHICH THE MUNICIPALITY ISSUING THE RAFFLE LICENSE IS LOCATED; AND
   (3) HAS NOT OBJECTED TO SUCH SALES AFTER THE COMMISSION  GIVES  NOTICE
 TO  SUCH  MUNICIPALITY  OF  AN AUTHORIZED ORGANIZATION'S REQUEST TO SELL
 SUCH RAFFLE TICKETS IN SUCH MUNICIPALITY.
   (C) THE COMMISSION MAY BY REGULATION PRESCRIBE THE ADVANCE  NOTICE  AN
 AUTHORIZED  ORGANIZATION MUST PROVIDE TO THE COMMISSION IN ORDER TO TAKE
 ADVANTAGE OF THE PROVISIONS OF PARAGRAPH (B) OF THIS SUBDIVISION,  FORMS
 IN  WHICH  SUCH  A  REQUEST SHALL BE MADE AND THE TIME PERIOD IN WHICH A
 MUNICIPALITY MUST COMMUNICATE AN OBJECTION TO THE COMMISSION.
   (D) NO SALE OF RAFFLE TICKETS SHALL BE  MADE  MORE  THAN  ONE  HUNDRED
 EIGHTY  DAYS  PRIOR  TO THE DATE SCHEDULED FOR THE OCCASION AT WHICH THE
 RAFFLE WILL BE CONDUCTED.
   (E) THE WINNER OF ANY SINGLE PRIZE IN A RAFFLE SHALL NOT  BE  REQUIRED
 TO BE PRESENT AT THE TIME SUCH RAFFLE IS CONDUCTED.
   14.  NO  PERSON  LICENSED  TO MANUFACTURE, DISTRIBUTE OR SELL GAMES OF
 CHANCE SUPPLIES OR EQUIPMENT, OR THEIR AGENTS,  SHALL  CONDUCT,  PARTIC-
 IPATE  IN,  OR  ASSIST IN THE CONDUCT OF GAMES OF CHANCE. NOTHING HEREIN
 SHALL PROHIBIT A LICENSED DISTRIBUTOR FROM SELLING, OFFERING FOR SALE OR
 EXPLAINING A PRODUCT TO AN  AUTHORIZED  ORGANIZATION  OR  INSTALLING  OR
 SERVICING GAMES OF CHANCE EQUIPMENT UPON THE PREMISES OF GAMES OF CHANCE
 LICENSEES.
   15.  THE UNAUTHORIZED CONDUCT OF A GAME OF CHANCE SHALL CONSTITUTE AND
 BE PUNISHABLE AS A MISDEMEANOR.
   16. NO COINS OR MERCHANDISE FROM A COIN  BOARD  OR  MERCHANDISE  BOARD
 SHALL  BE  REDEEMABLE OR CONVERTIBLE INTO CASH DIRECTLY OR INDIRECTLY BY
 THE AUTHORIZED ORGANIZATION.
   17. NO GAME OF CHANCE SHALL INVOLVE WAGERING OF MONEY  BY  ONE  PLAYER
 AGAINST ANOTHER PLAYER.
   §  1555.  AUTHORIZED  SUPPLIER  OF  GAMES  OF  CHANCE EQUIPMENT. 1. NO
 PERSON, FIRM, PARTNERSHIP, CORPORATION OR  ORGANIZATION  SHALL  SELL  OR
 DISTRIBUTE  SUPPLIES  OR  EQUIPMENT SPECIFICALLY DESIGNED OR ADAPTED FOR
 USE IN CONDUCT OF GAMES  OF  CHANCE  WITHOUT  HAVING  FIRST  OBTAINED  A
 LICENSE  THEREFOR UPON WRITTEN APPLICATION MADE, VERIFIED AND FILED WITH
 THE COMMISSION IN THE FORM PRESCRIBED BY THE RULES  AND  REGULATIONS  OF
 THE  COMMISSION.  AS A PART OF THE COMMISSION'S DETERMINATION CONCERNING
 THE APPLICANT'S SUITABILITY FOR LICENSING AS A GAMES OF CHANCE SUPPLIER,
 THE COMMISSION SHALL REQUIRE THE APPLICANT TO FURNISH TO THE  COMMISSION
 TWO  SETS  OF  FINGERPRINTS. SUCH FINGERPRINTS SHALL BE SUBMITTED TO THE
 DIVISION OF CRIMINAL JUSTICE  SERVICES  FOR  A  STATE  CRIMINAL  HISTORY
 RECORD  CHECK,  AS  DEFINED IN SUBDIVISION ONE OF SECTION THREE THOUSAND
 THIRTY-FIVE OF THE EDUCATION LAW, AND MAY BE SUBMITTED  TO  THE  FEDERAL
 BUREAU  OF  INVESTIGATION  FOR A NATIONAL CRIMINAL HISTORY RECORD CHECK.
 MANUFACTURERS OF BELL JAR TICKETS SHALL BE CONSIDERED SUPPLIERS OF  SUCH
 EQUIPMENT.  IN  EACH  SUCH  APPLICATION FOR A LICENSE UNDER THIS SECTION
 SHALL BE STATED THE NAME AND ADDRESS OF THE  APPLICANT;  THE  NAMES  AND
 ADDRESSES  OF  ITS  OFFICERS,  DIRECTORS,  SHAREHOLDERS OR PARTNERS; THE
 AMOUNT OF GROSS RECEIPTS REALIZED ON THE SALE AND  RENTAL  OF  GAMES  OF
 CHANCE  SUPPLIES AND EQUIPMENT TO DULY LICENSED AUTHORIZED ORGANIZATIONS
 DURING THE LAST PRECEDING CALENDAR OR FISCAL YEAR, AND SUCH OTHER INFOR-
 MATION AS SHALL BE PRESCRIBED BY SUCH RULES AND REGULATIONS. THE FEE FOR
 SUCH LICENSE SHALL BE A SUM EQUAL TO AN AMOUNT ESTABLISHED BY COMMISSION

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 REGULATION PLUS AN AMOUNT EQUAL TO TWO PERCENT OF THE  GROSS  SALES  AND
 RENTALS, IF ANY, OF GAMES OF CHANCE EQUIPMENT AND SUPPLIES TO AUTHORIZED
 ORGANIZATIONS  OR  AUTHORIZED  GAMES  OF CHANCE LESSORS BY THE APPLICANT
 DURING  THE  PRECEDING  CALENDAR  YEAR,  OR FISCAL YEAR IF THE APPLICANT
 MAINTAINS HIS ACCOUNTS ON A FISCAL  YEAR  BASIS.    NO  LICENSE  GRANTED
 PURSUANT  TO  THE  PROVISIONS  OF  THIS SECTION SHALL BE EFFECTIVE FOR A
 PERIOD OF MORE THAN ONE YEAR.
   2. THE FOLLOWING SHALL BE INELIGIBLE FOR SUCH A LICENSE:
   (A) A PERSON CONVICTED OF A CRIME IF THERE IS  A  DIRECT  RELATIONSHIP
 BETWEEN  ONE OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY
 OF CHARITABLE GAMING, CONSIDERING THE FACTORS SET FORTH IN SECTION SEVEN
 HUNDRED FIFTY-THREE OF THE CORRECTION LAW;
   (B) A PERSON WHO IS OR HAS BEEN A  PROFESSIONAL  GAMBLER  OR  GAMBLING
 PROMOTER OR WHO FOR OTHER REASONS IS NOT OF GOOD MORAL CHARACTER;
   (C) A PUBLIC OFFICER OR EMPLOYEE;
   (D) AN AUTHORIZED GAMES OF CHANCE LESSOR; OR
   (E)  A  FIRM  OR CORPORATION IN WHICH A PERSON DEFINED IN SUBPARAGRAPH
 (A), (B), (C) OR (D) OF THIS SUBDIVISION HAS GREATER THAN A TEN  PERCENT
 PROPRIETARY,  EQUITABLE  OR CREDIT INTEREST OR IN WHICH SUCH A PERSON IS
 ACTIVE OR EMPLOYED.
   3. THE COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE  EXAMINED
 THE BOOKS AND RECORDS OF ANY APPLICANT FOR A LICENSE UNDER THIS SECTION.
 ANY  INFORMATION SO RECEIVED SHALL NOT BE DISCLOSED EXCEPT SO FAR AS MAY
 BE NECESSARY FOR THE PURPOSE OF CARRYING  OUT  THE  PROVISIONS  OF  THIS
 TITLE.
   4.  ANY  SOLICITATION  OF AN ORGANIZATION LICENSED TO CONDUCT GAMES OF
 CHANCE, TO PURCHASE OR INDUCE THE PURCHASE OF GAMES OF  CHANCE  SUPPLIES
 AND  EQUIPMENT,  OTHER THAN BY A PERSON LICENSED OR OTHERWISE AUTHORIZED
 PURSUANT TO THIS SECTION, SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
   5. ANY PERSON WHO WILLFULLY MAKES ANY MATERIAL FALSE STATEMENT IN  ANY
 APPLICATION  FOR A LICENSE AUTHORIZED TO BE ISSUED UNDER THIS SECTION OR
 WHO WILLFULLY VIOLATES ANY OF THE PROVISIONS OF THIS SECTION OR  OF  ANY
 LICENSE  ISSUED HEREUNDER SHALL BE GUILTY OF A MISDEMEANOR AND, IN ADDI-
 TION TO THE PENALTIES IN SUCH CASE MADE AND PROVIDED, SHALL FORFEIT  ANY
 LICENSE ISSUED TO HIM, HER OR IT UNDER THIS SECTION AND BE INELIGIBLE TO
 APPLY FOR A LICENSE UNDER THIS SECTION FOR ONE YEAR THEREAFTER.
   6.  AT  THE  END  OF SUCH PERIOD SPECIFIED IN THE LICENSE, A RECAPITU-
 LATION SHALL BE MADE AS BETWEEN  THE  LICENSEE  AND  THE  COMMISSION  IN
 RESPECT  OF  THE  GROSS  SALES AND RENTALS ACTUALLY RECORDED DURING THAT
 PERIOD AND THE FEE PAID THEREFOR, AND  ANY  DEFICIENCY  OF  FEE  THEREBY
 SHOWN  TO  BE  DUE  SHALL  BE PAID BY THE LICENSEE AND ANY EXCESS OF FEE
 THEREBY SHOWN TO HAVE BEEN PAID SHALL BE CREDITED TO  SAID  LICENSEE  IN
 SUCH MANNER AS THE COMMISSION BY RULES AND REGULATIONS SHALL PRESCRIBE.
   §  1556. DECLARATION OF STATE'S EXEMPTION FROM OPERATION OF PROVISIONS
 OF 15 U.S.C. § 1172. PURSUANT TO SECTION TWO OF AN ACT  OF  CONGRESS  OF
 THE  UNITED STATES ENTITLED "AN ACT TO PROHIBIT TRANSPORTATION OF GAMBL-
 ING DEVICES  IN  INTERSTATE  AND  FOREIGN  COMMERCE,"  APPROVED  JANUARY
 SECOND,  NINETEEN  HUNDRED FIFTY-ONE, BEING CHAPTER 1194, 64 STAT. 1134,
 AND ALSO DESIGNATED AS 15 U.S.C.  §§ 1171-1177, THE STATE OF  NEW  YORK,
 ACTING  BY  AND  THROUGH  THE  DULY ELECTED AND QUALIFIED MEMBERS OF ITS
 LEGISLATURE, DOES HEREBY, IN ACCORDANCE WITH AND IN COMPLIANCE WITH  THE
 PROVISIONS  OF SECTION TWO OF SAID ACT OF CONGRESS, DECLARE AND PROCLAIM
 THAT IT IS EXEMPT FROM THE PROVISIONS OF SECTION  TWO  OF  SAID  ACT  OF
 CONGRESS.
   §  1557.  LEGAL  SHIPMENTS OF GAMING DEVICES INTO NEW YORK STATE.  ALL
 SHIPMENTS INTO THIS STATE OF GAMING DEVICES, EXCLUDING SLOT MACHINES AND

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 COIN OPERATED GAMBLING DEVICES, AS DEFINED  IN  SUBDIVISION  SEVEN-A  OF
 SECTION 225.00 OF THE PENAL LAW, THE REGISTERING, RECORDING AND LABELING
 OF  WHICH  HAS  BEEN  DULY  HAD BY THE MANUFACTURER OR DEALER THEREOF IN
 ACCORDANCE  WITH  SECTIONS  THREE  AND FOUR OF AN ACT OF CONGRESS OF THE
 UNITED STATES ENTITLED "AN ACT TO PROHIBIT  TRANSPORTATION  OF  GAMBLING
 DEVICES  IN  INTERSTATE  AND FOREIGN COMMERCE," APPROVED JANUARY SECOND,
 NINETEEN HUNDRED FIFTY-ONE, BEING CHAPTER 1194, 64 STAT. 1134, AND  ALSO
 DESIGNATED  AS  15  U.S.C. §§ 1171-1177, SHALL BE DEEMED LEGAL SHIPMENTS
 THEREOF INTO THIS STATE.
   § 1558. APPLICATION FOR LICENSE. 1. TO CONDUCT GAMES OF CHANCE.    (A)
 EACH  APPLICANT  FOR  A LICENSE SHALL, AFTER OBTAINING AN IDENTIFICATION
 NUMBER FROM THE COMMISSION, FILE WITH THE CLERK OR DEPARTMENT, AN APPLI-
 CATION THEREFOR IN A FORM TO  BE  PRESCRIBED  BY  THE  COMMISSION,  DULY
 EXECUTED AND VERIFIED, IN WHICH SHALL BE STATED:
   (1)  THE  NAME  AND  ADDRESS OF THE APPLICANT TOGETHER WITH SUFFICIENT
 FACTS RELATING TO ITS INCORPORATION  AND  ORGANIZATION  TO  ENABLE  SUCH
 CLERK  OR DEPARTMENT, AS THE CASE MAY BE, TO DETERMINE WHETHER OR NOT IT
 IS A BONA FIDE AUTHORIZED ORGANIZATION;
   (2) THE NAMES AND ADDRESSES OF  ITS  OFFICERS;  THE  PLACE  OR  PLACES
 WHERE,  THE  DATE  OR  DATES  AND  THE  TIME OR TIMES WHEN THE APPLICANT
 INTENDS TO CONDUCT GAMES UNDER THE LICENSE APPLIED FOR;
   (3) THE AMOUNT OF RENT TO BE PAID OR OTHER CONSIDERATION TO  BE  GIVEN
 DIRECTLY  OR INDIRECTLY FOR EACH LICENSED PERIOD FOR USE OF THE PREMISES
 OF AN AUTHORIZED GAMES OF CHANCE LESSOR;
   (4) ALL OTHER ITEMS OF EXPENSE INTENDED TO  BE  INCURRED  OR  PAID  IN
 CONNECTION  WITH  THE HOLDING, OPERATING AND CONDUCTING OF SUCH GAMES OF
 CHANCE AND THE NAMES AND ADDRESSES OF  THE  PERSONS  TO  WHOM,  AND  THE
 PURPOSES FOR WHICH, THEY ARE TO BE PAID;
   (5) THE PURPOSES TO WHICH THE ENTIRE NET PROCEEDS OF SUCH GAMES ARE TO
 BE DEVOTED AND IN WHAT MANNER; THAT NO COMMISSION, SALARY, COMPENSATION,
 REWARD OR RECOMPENSE WILL BE PAID TO ANY PERSON FOR CONDUCTING SUCH GAME
 OR  GAMES  OR  FOR  ASSISTING  THEREIN EXCEPT AS IN THIS TITLE OTHERWISE
 PROVIDED; AND SUCH OTHER INFORMATION AS  SHALL  BE  PRESCRIBED  BY  SUCH
 RULES AND REGULATIONS; AND
   (6)  THE  NAME  OF  EACH SINGLE TYPE OF GAME OF CHANCE TO BE CONDUCTED
 UNDER THE LICENSE APPLIED FOR AND THE NUMBER OF MERCHANDISE  WHEELS  AND
 RAFFLES, IF ANY, TO BE OPERATED.
   (B)  IN  EACH APPLICATION THERE SHALL BE DESIGNATED NOT LESS THAN FOUR
 BONA FIDE MEMBERS OF THE APPLICANT ORGANIZATION UNDER WHOM THE  GAME  OR
 GAMES OF CHANCE WILL BE MANAGED AND TO THE APPLICATION SHALL BE APPENDED
 A  STATEMENT  EXECUTED  BY  THE MEMBERS SO DESIGNATED, THAT THEY WILL BE
 RESPONSIBLE FOR THE MANAGEMENT OF SUCH  GAMES  IN  ACCORDANCE  WITH  THE
 TERMS  OF THE LICENSE, THE RULES AND REGULATIONS OF THE COMMISSION, THIS
 TITLE AND THE APPLICABLE LOCAL LAWS OR ORDINANCES.
   2. AUTHORIZED GAMES OF CHANCE LESSOR. EACH APPLICANT FOR A LICENSE  TO
 LEASE PREMISES TO A LICENSED ORGANIZATION FOR THE PURPOSES OF CONDUCTING
 GAMES  OF  CHANCE  THEREIN  SHALL  FILE  WITH THE CLERK OR DEPARTMENT AN
 APPLICATION THEREFOR, IN A FORM TO BE PRESCRIBED BY THE COMMISSION  DULY
 EXECUTED AND VERIFIED, WHICH SHALL SET FORTH:
   (A) THE NAME AND ADDRESS OF THE APPLICANT;
   (B)  DESIGNATION AND ADDRESS OF THE PREMISES INTENDED TO BE COVERED BY
 THE LICENSE SOUGHT;
   (C) A STATEMENT THAT THE APPLICANT IN ALL RESPECTS CONFORMS  WITH  THE
 SPECIFICATIONS  CONTAINED IN THE DEFINITION OF "AUTHORIZED ORGANIZATION"
 SET FORTH IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE; AND

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   (D) A STATEMENT OF THE LAWFUL PURPOSES TO WHICH THE NET PROCEEDS  FROM
 ANY RENTAL ARE TO BE DEVOTED BY THE APPLICANT AND SUCH OTHER INFORMATION
 AS SHALL BE PRESCRIBED BY THE COMMISSION.
   3.  IN  COUNTIES  OUTSIDE  THE  CITY  OF NEW YORK, MUNICIPALITIES MAY,
 PURSUANT TO SECTION FIFTEEN HUNDRED FIFTY-TWO OF THIS  TITLE,  ADOPT  AN
 ORDINANCE  PROVIDING  THAT AN AUTHORIZED ORGANIZATION HAVING OBTAINED AN
 IDENTIFICATION NUMBER FROM THE COMMISSION, AND  HAVING  APPLIED  FOR  NO
 MORE  THAN  ONE LICENSE TO CONDUCT GAMES OF CHANCE DURING THE PERIOD NOT
 LESS THAN TWELVE NOR MORE THAN EIGHTEEN  MONTHS  IMMEDIATELY  PRECEDING,
 MAY FILE WITH THE CLERK OR DEPARTMENT A SUMMARY APPLICATION IN A FORM TO
 BE  PRESCRIBED  BY THE COMMISSION DULY EXECUTED AND VERIFIED, CONTAINING
 THE NAMES AND ADDRESSES OF THE APPLICANT ORGANIZATION AND ITS  OFFICERS,
 THE  DATE,  TIME  AND  PLACE  OR  PLACES  WHERE THE APPLICANT INTENDS TO
 CONDUCT GAMES UNDER THE LICENSE APPLIED FOR, THE PURPOSES TO  WHICH  THE
 ENTIRE  NET PROCEEDS OF SUCH GAMES ARE TO BE DEVOTED AND THE INFORMATION
 AND STATEMENT REQUIRED BY PARAGRAPH  (B)  OF  SUBDIVISION  ONE  OF  THIS
 SECTION  IN  LIEU  OF  THE APPLICATION REQUIRED UNDER SUBDIVISION ONE OF
 THIS SECTION.
   4. (A) NOTWITHSTANDING AND IN LIEU OF THE LICENSING  REQUIREMENTS  SET
 FORTH  IN  THIS  TITLE,  AN  AUTHORIZED  ORGANIZATION DEFINED IN SECTION
 FIFTEEN HUNDRED OF THIS ARTICLE MAY FILE A VERIFIED STATEMENT, FOR WHICH
 NO FEE SHALL BE REQUIRED, WITH THE CLERK OR DEPARTMENT AND  THE  COMMIS-
 SION  ATTESTING  THAT SUCH ORGANIZATION SHALL DERIVE NET PROCEEDS OR NET
 PROFITS FROM RAFFLES IN AN AMOUNT  LESS  THAN  THIRTY  THOUSAND  DOLLARS
 DURING  ONE  OCCASION  OR  PART  THEREOF  AT  WHICH  RAFFLES  ARE  TO BE
 CONDUCTED. SUCH STATEMENT SHALL BE ON A SINGLE-PAGE FORM  PRESCRIBED  BY
 THE COMMISSION, AND SHALL BE DEEMED A LICENSE TO CONDUCT RAFFLES:
   (1) UNDER THIS TITLE; AND
   (2)  WITHIN THE MUNICIPALITIES IN WHICH THE AUTHORIZED ORGANIZATION IS
 DOMICILED THAT HAVE PASSED A  LOCAL  LAW,  ORDINANCE  OR  RESOLUTION  IN
 ACCORDANCE  WITH  SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED
 FIFTY-TWO OF THIS TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE, AND IN
 MUNICIPALITIES THAT HAVE PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION  IN
 ACCORDANCE  WITH  SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED
 FIFTY-TWO OF THIS TITLE APPROVING THE CONDUCT OF GAMES  OF  CHANCE  THAT
 ARE  LOCATED IN THE COUNTY IN WHICH THE MUNICIPALITY ISSUING THE LICENSE
 IS LOCATED AND IN THE COUNTIES THAT ARE  CONTIGUOUS  TO  THE  COUNTY  IN
 WHICH  THE  MUNICIPALITY ISSUING THE RAFFLE LICENSE IS LOCATED, PROVIDED
 THOSE MUNICIPALITIES HAVE AUTHORIZED THE LICENSEE, IN WRITING,  TO  SELL
 SUCH RAFFLE TICKETS THEREIN.
   (B) AN ORGANIZATION THAT HAS FILED A VERIFIED STATEMENT WITH THE CLERK
 OR  DEPARTMENT AND THE COMMISSION ATTESTING THAT SUCH ORGANIZATION SHALL
 DERIVE NET PROCEEDS OR NET PROFITS FROM RAFFLES IN AN AMOUNT  LESS  THAN
 THIRTY THOUSAND DOLLARS DURING ONE OCCASION OR PART THEREOF THAT IN FACT
 DERIVES  NET  PROCEEDS  OR NET PROFITS EXCEEDING THIRTY THOUSAND DOLLARS
 DURING ANY ONE OCCASION OR PART THEREOF SHALL BE REQUIRED  TO  OBTAIN  A
 LICENSE AS REQUIRED BY THIS TITLE AND SHALL BE SUBJECT TO THE PROVISIONS
 OF SECTION FIFTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE.
   §  1559. RAFFLES; LICENSE NOT REQUIRED. 1. NOTWITHSTANDING THE LICENS-
 ING REQUIREMENTS SET FORTH IN THIS TITLE AND THEIR  FILING  REQUIREMENTS
 SET  FORTH IN SUBDIVISION FOUR OF SECTION FIFTEEN HUNDRED FIFTY-EIGHT OF
 THIS TITLE, AN AUTHORIZED ORGANIZATION  MAY  CONDUCT  A  RAFFLE  WITHOUT
 COMPLYING  WITH SUCH LICENSING REQUIREMENTS OR SUCH FILING REQUIREMENTS,
 PROVIDED, THAT SUCH ORGANIZATION SHALL DERIVE NET PROCEEDS FROM  RAFFLES
 IN  AN  AMOUNT LESS THAN FIVE THOUSAND DOLLARS DURING THE CONDUCT OF ONE

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 RAFFLE AND SHALL DERIVE NET PROCEEDS FROM RAFFLES IN AN AMOUNT LESS THAN
 THIRTY THOUSAND DOLLARS DURING ONE CALENDAR YEAR.
   2.  NO  PERSON  UNDER  THE AGE OF EIGHTEEN SHALL BE PERMITTED TO PLAY,
 OPERATE OR ASSIST IN ANY RAFFLE CONDUCTED PURSUANT TO THIS SECTION.
   3. NO RAFFLE SHALL BE CONDUCTED PURSUANT TO THIS SECTION EXCEPT WITHIN
 A MUNICIPALITY IN WHICH THE AUTHORIZED ORGANIZATION  IS  DOMICILED  THAT
 HAS  PASSED  A  LOCAL  LAW,  ORDINANCE  OR RESOLUTION IN ACCORDANCE WITH
 SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
 TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE,  AND  IN  MUNICIPALITIES
 THAT HAVE PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN ACCORDANCE WITH
 SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
 TITLE  APPROVING  THE CONDUCT OF GAMES OF CHANCE THAT ARE LOCATED WITHIN
 THE COUNTY OR CONTIGUOUS TO THE COUNTY  IN  WHICH  THE  ORGANIZATION  IS
 DOMICILED.
   §  1560. INVESTIGATION; MATTERS TO BE DETERMINED; ISSUANCE OF LICENSE;
 FEES; DURATION OF LICENSE. 1. THE CLERK  OR  DEPARTMENT  SHALL  MAKE  AN
 INVESTIGATION  OF THE QUALIFICATIONS OF EACH APPLICANT AND THE MERITS OF
 EACH APPLICATION, WITH DUE EXPEDITION AFTER THE FILING OF  THE  APPLICA-
 TION.
   (A)  ISSUANCE OF LICENSES TO CONDUCT GAMES OF CHANCE. IF SUCH CLERK OR
 DEPARTMENT DETERMINES:
   (1) THAT THE APPLICANT IS DULY QUALIFIED TO  BE  LICENSED  TO  CONDUCT
 GAMES OF CHANCE UNDER THIS TITLE;
   (2)  THAT  THE  MEMBER  OR  MEMBERS OF THE APPLICANT DESIGNATED IN THE
 APPLICATION TO MANAGE GAMES OF CHANCE ARE BONA FIDE  ACTIVE  MEMBERS  OF
 THE  APPLICANT  AND  ARE  PERSONS OF GOOD MORAL CHARACTER AND HAVE NEVER
 BEEN CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP BETWEEN  ONE
 OR  MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY OF CHARITA-
 BLE GAMING, CONSIDERING THE FACTORS SET FORTH IN SECTION  SEVEN  HUNDRED
 FIFTY-THREE OF THE CORRECTION LAW;
   (3)  THAT  SUCH  GAMES  ARE  TO  BE  CONDUCTED  IN ACCORDANCE WITH THE
 PROVISIONS OF THIS TITLE AND IN ACCORDANCE  WITH  THE  RULES  AND  REGU-
 LATIONS  OF  THE  COMMISSION AND APPLICABLE LOCAL LAWS OR ORDINANCES AND
 THAT THE PROCEEDS THEREOF ARE TO BE DISPOSED  OF  AS  PROVIDED  BY  THIS
 TITLE; AND
   (4)  IS  SATISFIED THAT NO COMMISSION, SALARY, COMPENSATION, REWARD OR
 RECOMPENSE WHATSOEVER WILL BE PAID OR  GIVEN  TO  ANY  PERSON  MANAGING,
 OPERATING  OR  ASSISTING  THEREIN  EXCEPT  AS  IN  THIS  TITLE OTHERWISE
 PROVIDED, THEN SUCH CLERK OR DEPARTMENT SHALL ISSUE  A  LICENSE  TO  THE
 APPLICANT  FOR  THE CONDUCT OF GAMES OF CHANCE UPON PAYMENT OF A LICENSE
 FEE IN AN AMOUNT ESTABLISHED BY REGULATION OF THE  COMMISSION  FOR  EACH
 LICENSE PERIOD.
   (B)  ISSUANCE  OF  LICENSES TO AUTHORIZED GAMES OF CHANCE LESSORS.  IF
 SUCH CLERK OR DEPARTMENT DETERMINES:
   (1) THAT THE APPLICANT SEEKING TO LEASE PREMISES FOR  THE  CONDUCT  OF
 GAMES  OF  CHANCE  TO A GAMES OF CHANCE LICENSEE IS DULY QUALIFIED TO BE
 LICENSED UNDER THIS TITLE;
   (2) THAT THE APPLICANT SATISFIES THE REQUIREMENTS  FOR  AN  AUTHORIZED
 ORGANIZATION AS DEFINED IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE;
   (3)  THAT  THE  APPLICANT HAS FILED ITS PROPOSED RENT FOR EACH LICENSE
 PERIOD; AND
   (4) THAT SUCH PROPOSED RENT IS FAIR AND REASONABLE;
   (5) THAT THE NET PROCEEDS FROM ANY  RENTAL  WILL  BE  DEVOTED  TO  THE
 LAWFUL PURPOSES OF THE APPLICANT;
   (6)  THAT  THERE  IS  NO DIVERSION OF THE FUNDS OF THE PROPOSED LESSEE
 FROM THE LAWFUL PURPOSES AS DEFINED IN THIS TITLE; AND

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   (7) THAT SUCH LEASING OF PREMISES FOR THE CONDUCT OF SUCH GAMES IS  TO
 BE  IN  ACCORDANCE WITH THE PROVISIONS OF THIS TITLE, WITH THE RULES AND
 REGULATIONS OF THE COMMISSION AND APPLICABLE LOCAL LAWS AND  ORDINANCES,
 THEN  SUCH  CLERK  OR  DEPARTMENT  SHALL  ISSUE A LICENSE PERMITTING THE
 APPLICANT  TO  LEASE  SAID PREMISES FOR THE CONDUCT OF SUCH GAMES TO THE
 GAMES OF CHANCE LICENSEE  OR  LICENSEES  SPECIFIED  IN  THE  APPLICATION
 DURING THE PERIOD THEREIN SPECIFIED OR SUCH SHORTER PERIOD AS SUCH CLERK
 OR  DEPARTMENT  DETERMINES,  BUT  NOT  TO  EXCEED TWELVE LICENSE PERIODS
 DURING A CALENDAR YEAR, UPON PAYMENT OF  A  LICENSE  FEE  IN  AN  AMOUNT
 ESTABLISHED  BY  THE REGULATIONS OF THE COMMISSION. NOTHING HEREIN SHALL
 BE CONSTRUED TO REQUIRE THE APPLICANT TO BE LICENSED UNDER THIS TITLE TO
 CONDUCT GAMES OF CHANCE.
   (C) ISSUANCE OF LICENSE UPON SUMMARY APPLICATION. IF, UPON  THE  BASIS
 OF  A  SUMMARY  APPLICATION  AS  PRESCRIBED  UNDER  SUBDIVISION THREE OF
 SECTION FIFTEEN HUNDRED FIFTY-EIGHT OF THIS TITLE, THE CLERK OR  DEPART-
 MENT  DETERMINES  THAT THE APPLICANT IS DULY QUALIFIED TO BE LICENSED TO
 CONDUCT GAMES OF CHANCE UNDER THIS TITLE, SAID CLERK OR DEPARTMENT SHALL
 FORTHWITH ISSUE SAID LICENSE. IN THE EVENT THE CLERK OR  DEPARTMENT  HAS
 REASON  TO  BELIEVE THAT THE APPLICANT IS NOT SO QUALIFIED THE APPLICANT
 SHALL BE DIRECTED TO FILE AN APPLICATION PURSUANT TO SUBDIVISION ONE  OF
 SECTION FIFTEEN HUNDRED FIFTY-EIGHT OF THIS TITLE.
   2. ON OR BEFORE THE LAST DAY OF EACH MONTH, THE TREASURER OF THE MUNI-
 CIPALITY IN WHICH THE LICENSED PROPERTY IS LOCATED SHALL TRANSMIT TO THE
 STATE  COMPTROLLER  A SUM EQUAL TO FIFTY PERCENT OF ALL AUTHORIZED GAMES
 OF CHANCE LESSOR LICENSE FEES AND A SUM ESTABLISHED BY REGULATION OF THE
 COMMISSION PER LICENSE  PERIOD  FOR  THE  CONDUCT  OF  GAMES  OF  CHANCE
 COLLECTED  BY  SUCH  CLERK OR DEPARTMENT PURSUANT TO THIS SECTION DURING
 THE PRECEDING CALENDAR MONTH.
   3. NO LICENSE SHALL BE ISSUED UNDER THIS SECTION THAT IS EFFECTIVE FOR
 A PERIOD OF MORE THAN ONE YEAR.
   § 1561. HEARING; AMENDMENT OF LICENSE. 1. NO APPLICATION FOR THE ISSU-
 ANCE OF A LICENSE TO CONDUCT GAMES OF CHANCE OR  LEASE  PREMISES  TO  AN
 AUTHORIZED  ORGANIZATION  SHALL  BE  DENIED  BY THE CLERK OR DEPARTMENT,
 UNTIL AFTER A HEARING, HELD ON DUE NOTICE TO THE APPLICANT, AT WHICH THE
 APPLICANT SHALL BE ENTITLED TO BE HEARD UPON THE QUALIFICATIONS  OF  THE
 APPLICANT AND THE MERITS OF THE APPLICATION.
   2.  ANY  LICENSE ISSUED UNDER THIS TITLE MAY BE AMENDED, UPON APPLICA-
 TION MADE TO SUCH CLERK OR DEPARTMENT THAT ISSUED  IT,  IF  THE  SUBJECT
 MATTER  OF  THE PROPOSED AMENDMENT COULD LAWFULLY AND PROPERLY HAVE BEEN
 INCLUDED IN THE ORIGINAL LICENSE AND UPON  PAYMENT  OF  SUCH  ADDITIONAL
 LICENSE  FEE,  IF  ANY,  AS  WOULD  HAVE  BEEN PAYABLE IF IT HAD BEEN SO
 INCLUDED.
   § 1562. FORM AND CONTENTS OF LICENSE; DISPLAY OF  LICENSE.  1.    EACH
 LICENSE  TO  CONDUCT  GAMES  OF CHANCE SHALL BE IN SUCH FORM AS SHALL BE
 PRESCRIBED IN THE RULES AND REGULATIONS  OF  THE  COMMISSION  AND  SHALL
 CONTAIN:
   (A)  A STATEMENT OF THE NAME AND ADDRESS OF THE LICENSEE, OF THE NAMES
 AND ADDRESSES OF THE MEMBERS OF THE LICENSEE UNDER WHOM THE  GAMES  WILL
 BE MANAGED;
   (B)  A  STATEMENT  OF THE PLACE OR PLACES WHERE, AND THE DATE OR DATES
 AND TIME OR TIMES WHEN, SUCH GAMES ARE TO BE CONDUCTED;
   (C) A STATEMENT OF THE PURPOSES TO WHICH THE ENTIRE  NET  PROCEEDS  OF
 SUCH GAMES ARE TO BE DEVOTED;
   (D)  THE  NAME  OF  EACH SINGLE TYPE OF GAME TO BE CONDUCTED UNDER THE
 LICENSE AND THE NUMBER OF MERCHANDISE WHEELS AND RAFFLES, IF ANY, TO  BE
 OPERATED; AND

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   (E)  ANY OTHER INFORMATION THAT MAY BE REQUIRED BY THE RULES AND REGU-
 LATIONS OF THE COMMISSION TO BE CONTAINED THEREIN.
   2. EACH LICENSE ISSUED FOR THE CONDUCT OF ANY GAMES SHALL BE DISPLAYED
 CONSPICUOUSLY  AT  THE PLACE WHERE SUCH GAMES ARE TO BE CONDUCTED AT ALL
 TIMES DURING THE CONDUCT THEREOF.
   3. EACH LICENSE TO LEASE PREMISES FOR CONDUCTING GAMES OF CHANCE SHALL
 BE IN SUCH FORM AS SHALL BE PRESCRIBED IN THE RULES AND  REGULATIONS  OF
 THE  COMMISSION AND SHALL CONTAIN A STATEMENT OF THE NAME AND ADDRESS OF
 THE LICENSEE AND THE ADDRESS OF  THE  LEASED  PREMISES,  THE  AMOUNT  OF
 PERMISSIBLE  RENT AND ANY INFORMATION THAT MAY BE REQUIRED BY SAID RULES
 AND REGULATIONS TO BE CONTAINED THEREIN, AND EACH SUCH LICENSE SHALL  BE
 CONSPICUOUSLY  DISPLAYED  UPON  SUCH  PREMISES  AT  ALL TIMES DURING THE
 CONDUCT OF GAMES OF CHANCE.
   § 1563. CONTROL AND SUPERVISION; SUSPENSION OF IDENTIFICATION  NUMBERS
 AND  LICENSES;  INSPECTIONS  OF  PREMISES.  1.  THE MUNICIPAL OFFICER OR
 DEPARTMENT SHALL HAVE AND EXERCISE RIGID CONTROL AND  CLOSE  SUPERVISION
 OVER  ALL  GAMES OF CHANCE CONDUCTED UNDER SUCH LICENSE, TO THE END THAT
 THE SAME ARE CONDUCTED FAIRLY IN ACCORDANCE WITH THE PROVISIONS OF  SUCH
 LICENSE,  THE PROVISIONS OF THE RULES AND REGULATIONS PROMULGATED BY THE
 COMMISSION AND THE PROVISIONS OF THIS TITLE. SUCH MUNICIPAL  OFFICER  OR
 DEPARTMENT  AND THE COMMISSION SHALL HAVE THE POWER AND THE AUTHORITY TO
 SUSPEND TEMPORARILY ANY LICENSE ISSUED BY THE CLERK OR DEPARTMENT AND/OR
 IMPOSE FINES FOR VIOLATIONS NOT TO EXCEED ONE THOUSAND DOLLARS.   TEMPO-
 RARY SUSPENSION OF LICENSES SHALL BE FOLLOWED PROMPTLY BY A HEARING, AND
 AFTER  NOTICE  AND  HEARING, THE CLERK, DEPARTMENT OR THE COMMISSION MAY
 SUSPEND OR REVOKE THE SAME AND DECLARE THE VIOLATOR INELIGIBLE TO  APPLY
 FOR  A  LICENSE FOR A PERIOD NOT EXCEEDING TWELVE MONTHS THEREAFTER. ANY
 FINES TENDERED TO THE CLERK, DEPARTMENT OR THE COMMISSION SHALL  NOT  BE
 PAID FROM FUNDS DERIVED FROM THE CONDUCT OF GAMES OF CHANCE. THE MUNICI-
 PAL OFFICER AND THE DEPARTMENT OR THE COMMISSION SHALL ADDITIONALLY HAVE
 THE  RIGHT  OF ENTRY, BY THEIR RESPECTIVE MUNICIPAL OFFICERS AND AGENTS,
 AT ALL TIMES INTO ANY  PREMISES  WHERE  ANY  GAME  OF  CHANCE  IS  BEING
 CONDUCTED OR WHERE IT IS INTENDED THAT ANY SUCH GAME SHALL BE CONDUCTED,
 OR  WHERE ANY EQUIPMENT BEING USED OR INTENDED TO BE USED IN THE CONDUCT
 THEREOF IS FOUND, FOR THE PURPOSE OF INSPECTING THE SAME.  UPON  SUSPEN-
 SION  OR  REVOCATION OF ANY LICENSE OR UPON DECLARATION OF INELIGIBILITY
 TO APPLY FOR A LICENSE, THE COMMISSION MAY SUSPEND OR REVOKE  THE  IDEN-
 TIFICATION NUMBER ISSUED PURSUANT TO SECTION FIFTEEN HUNDRED FIFTY-THREE
 OF  THIS TITLE. AN AGENT OF THE APPROPRIATE MUNICIPAL OFFICER OR DEPART-
 MENT SHALL MAKE AN ON-SITE INSPECTION DURING THE CONDUCT OF ALL GAMES OF
 CHANCE LICENSED PURSUANT TO THIS TITLE.
   2. A MUNICIPALITY MAY, BY LOCAL LAW OR ORDINANCE ENACTED  PURSUANT  TO
 THE  PROVISIONS  OF  SECTION  FIFTEEN  HUNDRED  FIFTY-TWO OF THIS TITLE,
 PROVIDE THAT THE POWERS AND DUTIES SET FORTH IN SUBDIVISION ONE OF  THIS
 SECTION  SHALL  BE EXERCISED BY THE CHIEF LAW ENFORCEMENT OFFICER OF THE
 COUNTY. IN THE EVENT A MUNICIPALITY  EXERCISES  THIS  OPTION,  THE  FEES
 PROVIDED  FOR  BY SUBDIVISION TWO OF SECTION FIFTEEN HUNDRED SIXTY-SEVEN
 OF THIS TITLE SHALL BE REMITTED TO THE CHIEF FISCAL OFFICER OF THE COUN-
 TY.
   3.  SERVICE  OF  ALCOHOLIC  BEVERAGES.  SUBJECT  TO   THE   APPLICABLE
 PROVISIONS  OF  THE  ALCOHOLIC BEVERAGE CONTROL LAW, BEER MAY BE OFFERED
 FOR SALE DURING THE CONDUCT OF GAMES OF CHANCE ON GAMES OF CHANCE  PREM-
 ISES  AS  SUCH  PREMISES  ARE DEFINED IN SECTION FIFTEEN HUNDRED OF THIS
 ARTICLE; PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL  BE  CONSTRUED  TO
 LIMIT  THE  OFFERING  FOR  SALE OF ANY OTHER ALCOHOLIC BEVERAGE IN AREAS
 OTHER THAN THE GAMES OF CHANCE PREMISES OR THE SALE OF ANY  OTHER  ALCO-

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 HOLIC  BEVERAGE IN PREMISES WHERE ONLY THE GAMES OF CHANCE KNOWN AS BELL
 JARS OR RAFFLES ARE CONDUCTED.
   §  1564.  FREQUENCY  OF  GAMES. 1. NO GAME OR GAMES OF CHANCE SHALL BE
 CONDUCTED UNDER ANY LICENSE ISSUED UNDER  THIS  TITLE  MORE  OFTEN  THAN
 TWELVE  TIMES IN ANY CALENDAR YEAR. NO PARTICULAR PREMISES SHALL BE USED
 FOR THE CONDUCT OF GAMES OF CHANCE  ON  MORE  THAN  TWENTY-FOUR  LICENSE
 PERIODS DURING ANY ONE CALENDAR YEAR.
   2.  GAMES  OF CHANCE OTHER THAN BELL JARS AND RAFFLES MAY BE CONDUCTED
 AT ANY TIME, UNLESS THE GAMES OF CHANCE LICENSE PROVIDES  OTHERWISE.  NO
 LICENSE  MAY  RESTRICT  THE  TIMES  IN  WHICH  BELL  JARS OR RAFFLES ARE
 CONDUCTED, SUBJECT TO THE LIMITATIONS ON THE  LICENSE  PERIOD  FOR  SUCH
 GAMES  SET  FORTH  IN SUBDIVISION EIGHTEEN OF SECTION FIFTEEN HUNDRED OF
 THIS ARTICLE.
   § 1565. PERSONS OPERATING GAMES; EQUIPMENT; EXPENSES; COMPENSATION. 1.
 NO PERSON SHALL OPERATE ANY GAME OF  CHANCE  UNDER  ANY  LICENSE  ISSUED
 UNDER  THIS  TITLE EXCEPT A BONA FIDE MEMBER OF THE AUTHORIZED ORGANIZA-
 TION TO WHICH THE LICENSE IS ISSUED, OR A BONA FIDE MEMBER OF AN  ORGAN-
 IZATION  OR  ASSOCIATION  THAT IS AN AUXILIARY TO THE LICENSEE OR A BONA
 FIDE MEMBER OF AN ORGANIZATION OR ASSOCIATION OF WHICH SUCH LICENSEE  IS
 AN  AUXILIARY  OR  A  BONA FIDE MEMBER OF AN ORGANIZATION OR ASSOCIATION
 THAT IS AFFILIATED WITH THE LICENSEE BY BEING,  WITH  IT,  AUXILIARY  TO
 ANOTHER  ORGANIZATION  OR ASSOCIATION. NOTHING HEREIN SHALL BE CONSTRUED
 TO LIMIT THE NUMBER OF GAMES OF CHANCE LICENSEES FOR WHOM  SUCH  PERSONS
 MAY  OPERATE  GAMES  OF CHANCE NOR TO PREVENT NON-MEMBERS FROM ASSISTING
 THE LICENSEE IN ANY ACTIVITY OTHER THAN MANAGING OR OPERATING GAMES. FOR
 THE PURPOSE OF THE SALE OF TICKETS FOR THE  GAME  OF  RAFFLE,  THE  TERM
 "OPERATE"  SHALL  NOT  INCLUDE  THE  SALE  OF SUCH TICKETS BY PERSONS OF
 LINEAL OR COLLATERAL CONSANGUINITY TO MEMBERS OF AN AUTHORIZED ORGANIZA-
 TION LICENSED TO CONDUCT A RAFFLE.
   2. NO GAME OF CHANCE SHALL BE CONDUCTED WITH ANY EQUIPMENT EXCEPT SUCH
 AS SHALL BE OWNED OR LEASED BY THE AUTHORIZED ORGANIZATION  SO  LICENSED
 OR  USED  WITHOUT  PAYMENT OF ANY COMPENSATION THEREFOR BY THE LICENSEE.
 HOWEVER, IN NO EVENT SHALL BELL JAR  TICKETS  BE  TRANSFERRED  FROM  ONE
 AUTHORIZED  ORGANIZATION  TO  ANOTHER,  WITH  OR  WITHOUT PAYMENT OF ANY
 COMPENSATION THEREOF.
   3. THE HEAD OR HEADS OF THE AUTHORIZED ORGANIZATION SHALL UPON REQUEST
 CERTIFY, UNDER OATH, THAT THE PERSONS OPERATING ANY GAME OF  CHANCE  ARE
 BONA  FIDE  MEMBERS OF SUCH AUTHORIZED ORGANIZATION, AUXILIARY OR AFFIL-
 IATED ORGANIZATION.
   4. UPON REQUEST BY A MUNICIPAL OFFICER  OR  THE  DEPARTMENT  ANY  SUCH
 PERSON INVOLVED IN SUCH GAMES OF CHANCE SHALL CERTIFY THAT HE OR SHE HAS
 NO  CRIMINAL  RECORD  OR  SHALL  DISCLOSE PREVIOUS CRIMINAL OFFENSES FOR
 CONSIDERATION OF THE FACTORS SET FORTH IN SECTION SEVEN  HUNDRED  FIFTY-
 THREE OF THE CORRECTION LAW.
   5.  NO  ITEMS  OF EXPENSE SHALL BE INCURRED OR PAID IN CONNECTION WITH
 THE CONDUCTING OF ANY GAME OF CHANCE  PURSUANT  TO  ANY  LICENSE  ISSUED
 UNDER  THIS  TITLE  EXCEPT THOSE THAT ARE REASONABLE AND ARE NECESSARILY
 EXPENDED FOR GAMES OF CHANCE SUPPLIES AND  EQUIPMENT,  PRIZES,  SECURITY
 PERSONNEL,  STATED  RENTAL  IF  ANY,  BOOKKEEPING OR ACCOUNTING SERVICES
 ACCORDING TO A SCHEDULE OF COMPENSATION PRESCRIBED  BY  THE  COMMISSION,
 JANITORIAL  SERVICES  AND UTILITY SUPPLIES IF ANY, AND LICENSE FEES, AND
 THE COST OF BUS TRANSPORTATION, IF AUTHORIZED BY SUCH CLERK  OR  DEPART-
 MENT.
   6.  NO COMMISSION, SALARY, COMPENSATION, REWARD OR RECOMPENSE SHALL BE
 PAID OR GIVEN TO ANY PERSON FOR THE SALE OR ASSISTING WITH THE  SALE  OF
 RAFFLE TICKETS.

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   §  1566.  CHARGE  FOR  ADMISSION  AND PARTICIPATION; AMOUNT OF PRIZES;
 AWARD OF PRIZES. 1. A FEE MAY BE CHARGED BY ANY LICENSEE  FOR  ADMISSION
 TO  ANY GAME OR GAMES OF CHANCE CONDUCTED UNDER ANY LICENSE ISSUED UNDER
 THIS TITLE.  THE CLERK OR DEPARTMENT MAY IN ITS DISCRETION FIX A MINIMUM
 FEE.
   2.  WITH THE EXCEPTION OF BELL JARS, COIN BOARDS, SEAL CARDS, MERCHAN-
 DISE BOARDS AND RAFFLES, EVERY WINNER  SHALL  BE  DETERMINED  AND  EVERY
 PRIZE  SHALL  BE  AWARDED  AND DELIVERED WITHIN THE SAME CALENDAR DAY AS
 THAT UPON WHICH THE GAME WAS PLAYED.
   3. A PLAYER MAY PURCHASE A CHANCE WITH  CASH  OR,  IF  THE  AUTHORIZED
 ORGANIZATION WISHES, WITH A PERSONAL CHECK, CREDIT CARD OR DEBIT CARD.
   §  1567.  STATEMENT OF RECEIPTS AND EXPENSES; ADDITIONAL LICENSE FEES.
 1.  WITHIN SEVEN DAYS AFTER THE CONCLUSION OF ANY LICENSE  PERIOD  OTHER
 THAN  A  LICENSE  PERIOD FOR A RAFFLE, OR AS OTHERWISE PRESCRIBED BY THE
 COMMISSION, THE AUTHORIZED ORGANIZATION THAT CONDUCTED THE SAME, AND ITS
 MEMBERS WHO WERE IN CHARGE THEREOF, AND WHEN APPLICABLE  THE  AUTHORIZED
 GAMES  OF  CHANCE  LESSOR  THAT RENTED ITS PREMISES THEREFOR, SHALL EACH
 FURNISH TO THE CLERK OR DEPARTMENT A STATEMENT SUBSCRIBED BY THE  MEMBER
 IN  CHARGE  AND  AFFIRMED  BY HIM OR HER AS TRUE, UNDER THE PENALTIES OF
 PERJURY, SHOWING THE AMOUNT OF THE GROSS RECEIPTS DERIVED THEREFROM  AND
 EACH  ITEM  OF  EXPENSE  INCURRED, OR PAID, AND EACH ITEM OF EXPENDITURE
 MADE OR TO BE MADE OTHER THAN PRIZES,  THE  NAME  AND  ADDRESS  OF  EACH
 PERSON  TO  WHOM  EACH  SUCH  ITEM OF EXPENSE HAS BEEN PAID, OR IS TO BE
 PAID, WITH A DETAILED DESCRIPTION OF THE MERCHANDISE  PURCHASED  OR  THE
 SERVICES RENDERED THEREFOR, THE NET PROCEEDS DERIVED FROM THE CONDUCT OF
 GAMES  OF  CHANCE  DURING SUCH LICENSE PERIOD, AND THE USE TO WHICH SUCH
 PROCEEDS HAVE BEEN OR ARE TO BE APPLIED. IT SHALL BE THE  DUTY  OF  EACH
 LICENSEE TO MAINTAIN AND KEEP SUCH BOOKS AND RECORDS AS MAY BE NECESSARY
 TO SUBSTANTIATE THE PARTICULARS OF EACH SUCH STATEMENT.
   2. WITHIN THIRTY DAYS AFTER THE CONCLUSION OF AN OCCASION DURING WHICH
 A  RAFFLE  WAS  CONDUCTED,  THE  AUTHORIZED ORGANIZATION CONDUCTING SUCH
 RAFFLE AND THE MEMBERS IN CHARGE OF SUCH RAFFLE, AND,  WHEN  APPLICABLE,
 THE AUTHORIZED GAMES OF CHANCE LESSOR THAT RENTED ITS PREMISES THEREFOR,
 SHALL  EACH  FURNISH  TO  THE  CLERK OR DEPARTMENT A STATEMENT ON A FORM
 PRESCRIBED BY THE COMMISSION, SUBSCRIBED BY THE  MEMBER  IN  CHARGE  AND
 AFFIRMED BY HIM OR HER AS TRUE, UNDER THE PENALTIES OF PERJURY, SHOWING:
   (A) THE NUMBER OF TICKETS PRINTED;
   (B) THE NUMBER OF TICKETS SOLD;
   (C) THE PRICE AND THE NUMBER OF TICKETS RETURNED TO OR RETAINED BY THE
 AUTHORIZED ORGANIZATION AS UNSOLD;
   (D)  A  DESCRIPTION  AND  STATEMENT  OF THE FAIR MARKET VALUE FOR EACH
 PRIZE ACTUALLY AWARDED;
   (E) THE AMOUNT OF THE GROSS RECEIPTS DERIVED THEREFROM;
   (F) EACH ITEM OF EXPENDITURE MADE OR TO BE MADE OTHER THAN PRIZES;
   (G) THE NAME AND ADDRESS OF EACH PERSON TO  WHOM  EACH  SUCH  ITEM  OF
 EXPENSE HAS BEEN PAID, OR IS TO BE PAID;
   (H)  A  DETAILED  DESCRIPTION  OF  THE  MERCHANDISE  PURCHASED  OR THE
 SERVICES RENDERED THEREFOR;
   (I) THE NET PROCEEDS DERIVED FROM THE RAFFLE AT SUCH OCCASION; AND
   (J) THE USE TO WHICH THE PROCEEDS HAVE BEEN OR ARE TO BE  APPLIED.  IT
 SHALL  BE  THE DUTY OF EACH LICENSEE TO MAINTAIN AND KEEP SUCH BOOKS AND
 RECORDS AS MAY BE NECESSARY TO SUBSTANTIATE THE PARTICULARS OF EACH SUCH
 STATEMENT, PROVIDED, HOWEVER, WHERE THE CUMULATIVE NET PROCEEDS  OR  NET
 PROFITS  DERIVED  FROM  THE CONDUCT OF A RAFFLE OR RAFFLES ARE LESS THAN
 THIRTY THOUSAND DOLLARS DURING ANY  ONE  OCCASION,  IN  SUCH  CASE,  THE
 REPORTING  REQUIREMENT  SHALL  BE  SATISFIED BY THE FILING WITHIN THIRTY

 S. 2009--A                         142                        A. 3009--A
 
 DAYS OF THE CONCLUSION OF SUCH OCCASION A VERIFIED STATEMENT  PRESCRIBED
 BY  THE  COMMISSION  ATTESTING TO THE AMOUNT OF SUCH NET PROCEEDS OR NET
 PROFITS AND THE DISTRIBUTION THEREOF FOR LAWFUL PURPOSES WITH THE  CLERK
 OR  DEPARTMENT  AND  A  COPY  WITH THE COMMISSION, AND PROVIDED FURTHER,
 HOWEVER, WHERE THE CUMULATIVE NET PROCEEDS DERIVED FROM THE CONDUCT OF A
 RAFFLE OR RAFFLES ARE LESS THAN FIVE THOUSAND  DOLLARS  DURING  ANY  ONE
 OCCASION AND LESS THAN THIRTY THOUSAND DOLLARS DURING ONE CALENDAR YEAR,
 NO REPORTING SHALL BE REQUIRED.
   3.  ANY AUTHORIZED ORGANIZATION REQUIRED TO FILE AN ANNUAL REPORT WITH
 THE SECRETARY OF STATE PURSUANT TO ARTICLE SEVEN-A OF THE EXECUTIVE  LAW
 OR THE ATTORNEY GENERAL PURSUANT TO ARTICLE EIGHT OF THE ESTATES, POWERS
 AND  TRUSTS  LAW  SHALL  INCLUDE  WITH  SUCH ANNUAL REPORT A COPY OF THE
 STATEMENT REQUIRED TO BE FILED WITH THE CLERK OR DEPARTMENT PURSUANT  TO
 SUBDIVISION ONE OR TWO OF THIS SECTION.
   4.  UPON THE FILING OF SUCH STATEMENT OF RECEIPTS PURSUANT TO SUBDIVI-
 SION ONE OR TWO OF THIS SECTION, THE AUTHORIZED ORGANIZATION  FURNISHING
 THE  SAME  SHALL PAY TO THE CLERK OR DEPARTMENT AS AND FOR AN ADDITIONAL
 LICENSE FEE A SUM BASED UPON THE REPORTED NET PROCEEDS, IF ANY, FOR  THE
 LICENSE  PERIOD,  OR IN THE CASE OF RAFFLES, FOR THE OCCASION COVERED BY
 SUCH STATEMENT AND DETERMINED IN ACCORDANCE WITH SUCH SCHEDULE AS  SHALL
 BE  ESTABLISHED FROM TIME TO TIME BY THE COMMISSION TO DEFRAY THE ACTUAL
 COST TO MUNICIPALITIES OR COUNTIES OF ADMINISTERING  THE  PROVISIONS  OF
 THIS  TITLE,  BUT  SUCH  ADDITIONAL  LICENSE  FEE  SHALL NOT EXCEED FIVE
 PERCENT OF THE NET PROCEEDS FOR SUCH LICENSE PERIOD. THE  PROVISIONS  OF
 THIS  SUBDIVISION  SHALL  NOT APPLY TO THE NET PROCEEDS FROM THE SALE OF
 BELL JAR TICKETS. NO FEE SHALL BE REQUIRED WHERE THE NET PROCEEDS OR NET
 PROFITS DERIVED FROM THE CONDUCT OF A RAFFLE OR RAFFLES  ARE  LESS  THAN
 THIRTY THOUSAND DOLLARS DURING ANY ONE OCCASION.
   §  1568. EXAMINATION OF BOOKS AND RECORDS; EXAMINATION OF OFFICERS AND
 EMPLOYEES; DISCLOSURE OF INFORMATION. THE CLERK OR  DEPARTMENT  AND  THE
 COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE EXAMINED THE BOOKS
 AND RECORDS OF:
   1. ANY AUTHORIZED ORGANIZATION THAT IS OR HAS BEEN LICENSED TO CONDUCT
 GAMES OF CHANCE, SO FAR AS THEY MAY RELATE TO GAMES OF CHANCE, INCLUDING
 THE  MAINTENANCE,  CONTROL  AND DISPOSITION OF NET PROCEEDS DERIVED FROM
 GAMES OF CHANCE OR FROM THE USE OF ITS PREMISES FOR GAMES OF CHANCE, AND
 TO EXAMINE ANY MANAGER, OFFICER, DIRECTOR,  AGENT,  MEMBER  OR  EMPLOYEE
 THEREOF UNDER OATH IN RELATION TO THE CONDUCT OF ANY SUCH GAME UNDER ANY
 SUCH LICENSE, THE USE OF ITS PREMISES FOR GAMES OF CHANCE, OR THE DISPO-
 SITION OF NET PROCEEDS DERIVED FROM GAMES OF CHANCE, AS THE CASE MAY BE;
 OR
   2.  ANY  AUTHORIZED  GAMES  OF CHANCE LESSOR, SO FAR AS SUCH BOOKS AND
 RECORDS MAY RELATE TO LEASING PREMISES FOR GAMES OF CHANCE, AND TO EXAM-
 INE SUCH LESSOR OR ANY MANAGER, OFFICER,  DIRECTOR,  AGENT  OR  EMPLOYEE
 THEREOF  UNDER  OATH  IN  RELATION  TO  SUCH LEASING. ANY INFORMATION SO
 RECEIVED SHALL NOT BE DISCLOSED EXCEPT SO FAR AS MAY  BE  NECESSARY  FOR
 THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THIS TITLE.
   §  1569.  APPEALS  FOR  THE  DECISION OF A MUNICIPAL OFFICER, CLERK OR
 DEPARTMENT TO THE COMMISSION. ANY  APPLICANT  FOR,  OR  HOLDER  OF,  ANY
 LICENSE  ISSUED OR TO BE ISSUED UNDER THIS TITLE AGGRIEVED BY ANY ACTION
 OF A MUNICIPAL OFFICER, CLERK OR DEPARTMENT, TO WHICH  SUCH  APPLICATION
 HAS  BEEN  MADE  OR BY WHICH SUCH LICENSE HAS BEEN ISSUED, MAY APPEAL TO
 THE COMMISSION FROM THE DETERMINATION OF SAID MUNICIPAL  OFFICER,  CLERK
 OR DEPARTMENT BY FILING WITH SUCH MUNICIPAL OFFICER, CLERK OR DEPARTMENT
 A WRITTEN NOTICE OF APPEAL WITHIN THIRTY DAYS AFTER THE DETERMINATION OR
 ACTION APPEALED FROM, AND UPON THE HEARING OF SUCH APPEAL, THE EVIDENCE,

 S. 2009--A                         143                        A. 3009--A
 
 IF ANY, TAKEN BEFORE SUCH MUNICIPAL OFFICER, CLERK OR DEPARTMENT AND ANY
 ADDITIONAL  EVIDENCE MAY BE PRODUCED AND SHALL BE CONSIDERED IN ARRIVING
 AT A DETERMINATION OF THE MATTERS  IN  ISSUE,  AND  THE  ACTION  OF  THE
 COMMISSION  UPON  SAID APPEAL SHALL BE BINDING UPON SUCH MUNICIPAL OFFI-
 CER, CLERK OR DEPARTMENT AND ALL PARTIES TO SAID APPEAL.
   § 1570. EXEMPTION FROM  PROSECUTION.  NO  PERSON,  FIRM,  PARTNERSHIP,
 CORPORATION OR ORGANIZATION LAWFULLY CONDUCTING, OR PARTICIPATING IN THE
 CONDUCT OF, GAMES OF CHANCE, OR PERMITTING THE CONDUCT UPON ANY PREMISES
 OWNED  OR  LEASED  BY  HIM,  HER OR IT UNDER ANY LICENSE LAWFULLY ISSUED
 PURSUANT TO THIS TITLE, SHALL BE LIABLE TO PROSECUTION OR CONVICTION FOR
 VIOLATION OF ANY PROVISION OF ARTICLE TWO  HUNDRED  TWENTY-FIVE  OF  THE
 PENAL  LAW OR ANY OTHER LAW OR ORDINANCE TO THE EXTENT THAT SUCH CONDUCT
 IS SPECIFICALLY AUTHORIZED BY THIS TITLE, BUT THIS  IMMUNITY  SHALL  NOT
 EXTEND  TO ANY PERSON OR CORPORATION KNOWINGLY CONDUCTING OR PARTICIPAT-
 ING IN THE CONDUCT OF GAMES OF CHANCE UNDER ANY LICENSE OBTAINED BY  ANY
 FALSE  PRETENSE  OR  BY  ANY FALSE STATEMENT MADE IN ANY APPLICATION FOR
 LICENSE OR OTHERWISE, OR PERMITTING THE CONDUCT UPON ANY PREMISES  OWNED
 OR  LEASED  BY  HIM, HER OR IT OF ANY GAME OF CHANCE CONDUCTED UNDER ANY
 LICENSE KNOWN TO HIM, HER OR IT TO HAVE BEEN OBTAINED BY ANY SUCH  FALSE
 PRETENSE OR STATEMENT.
   §  1571.  OFFENSES;  FORFEITURE OF LICENSE; INELIGIBILITY TO APPLY FOR
 LICENSE. ANY PERSON, FIRM, PARTNERSHIP, CORPORATION OR ORGANIZATION  WHO
 OR THAT SHALL:
   1.  MAKE  ANY  MATERIAL  FALSE  STATEMENT  IN  ANY APPLICATION FOR ANY
 LICENSE AUTHORIZED TO BE ISSUED UNDER THIS TITLE;
   2. PAY OR RECEIVE, FOR THE USE OF ANY PREMISES FOR CONDUCTING GAMES OF
 CHANCE, A RENTAL IN EXCESS OF THE AMOUNT SPECIFIED  AS  THE  PERMISSIBLE
 RENT IN THE LICENSE PROVIDED FOR IN SUBDIVISION THREE OF SECTION FIFTEEN
 HUNDRED SIXTY-TWO OF THIS TITLE;
   3. FAIL TO KEEP SUCH BOOKS AND RECORDS AS SHALL FULLY AND TRULY RECORD
 ALL TRANSACTIONS CONNECTED WITH THE CONDUCTING OF GAMES OF CHANCE OR THE
 LEASING OF PREMISES TO BE USED FOR THE CONDUCT OF GAMES OF CHANCE;
   4.  FALSIFY  OR MAKE ANY FALSE ENTRY IN ANY BOOKS OR RECORDS SO FAR AS
 THEY RELATE IN ANY MANNER TO THE CONDUCT OF  GAMES  OF  CHANCE,  TO  THE
 DISPOSITION  OF THE PROCEEDS THEREOF AND TO THE APPLICATION OF THE RENTS
 RECEIVED BY ANY AUTHORIZED ORGANIZATION;
   5. DIVERT OR PAY ANY PORTION OF THE NET PROCEEDS OF ANY GAME OF CHANCE
 TO ANY PERSON, FIRM, PARTNERSHIP, CORPORATION, EXCEPT IN FURTHERANCE  OF
 ONE OR MORE OF THE LAWFUL PURPOSES DEFINED IN THIS TITLE; SHALL BE GUIL-
 TY  OF  A  MISDEMEANOR  AND  SHALL FORFEIT ANY LICENSE ISSUED UNDER THIS
 TITLE AND BE INELIGIBLE TO APPLY FOR A LICENSE UNDER THIS TITLE  FOR  AT
 LEAST ONE YEAR THEREAFTER.
   §  1572.  UNLAWFUL GAMES OF CHANCE. 1. ANY PERSON, ASSOCIATION, CORPO-
 RATION OR ORGANIZATION HOLDING, OPERATING OR CONDUCTING A GAME OR  GAMES
 OF  CHANCE IS GUILTY OF A MISDEMEANOR, EXCEPT WHEN OPERATING, HOLDING OR
 CONDUCTING:
   (A) IN ACCORDANCE WITH A VALID LICENSE ISSUED PURSUANT TO THIS TITLE;
   (B) ON BEHALF OF A BONA FIDE ORGANIZATION OF PERSONS  SIXTY  YEARS  OF
 AGE  OR  OVER,  COMMONLY  REFERRED TO AS SENIOR CITIZENS, SOLELY FOR THE
 PURPOSE OF AMUSEMENT AND RECREATION OF ITS MEMBERS WHERE:
   (1) THE ORGANIZATION HAS APPLIED FOR AND  RECEIVED  AN  IDENTIFICATION
 NUMBER FROM THE COMMISSION;
   (2)  NO  PLAYER  OR  OTHER  PERSON FURNISHES ANYTHING OF VALUE FOR THE
 OPPORTUNITY TO PARTICIPATE;
   (3) THE PRIZES AWARDED OR TO BE AWARDED ARE NOMINAL;

 S. 2009--A                         144                        A. 3009--A

   (4) NO PERSON OTHER THAN A BONA FIDE ACTIVE MEMBER OF THE ORGANIZATION
 PARTICIPATES IN THE CONDUCT OF THE GAMES; AND
   (5)  NO  PERSON  IS PAID FOR CONDUCTING OR ASSISTING IN THE CONDUCT OF
 THE GAME OR GAMES; OR
   (C) A RAFFLE PURSUANT TO SECTION FIFTEEN HUNDRED  FIFTY-NINE  OF  THIS
 TITLE.
   2.  THE  PROVISIONS  OF THIS SECTION SHALL APPLY TO ALL MUNICIPALITIES
 WITHIN THIS STATE, INCLUDING THOSE MUNICIPALITIES WHERE  THIS  TITLE  IS
 INOPERATIVE.
   §  1573. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS. EXCEPT AS PROVIDED
 IN SECTION FIFTEEN HUNDRED SEVENTY-TWO OF THIS TITLE, THE PROVISIONS  OF
 THIS TITLE SHALL REMAIN INOPERATIVE IN ANY MUNICIPALITY UNLESS AND UNTIL
 A  PROPOSITION  THEREFOR  SUBMITTED  AT A GENERAL OR SPECIAL ELECTION IN
 SUCH MUNICIPALITY SHALL BE APPROVED BY A VOTE OF  THE  MAJORITY  OF  THE
 QUALIFIED ELECTORS IN SUCH MUNICIPALITY VOTING THEREON.
   §  1574.  AMENDMENT  AND REPEAL OF LOCAL LAWS AND ORDINANCES. ANY SUCH
 LOCAL LAW OR ORDINANCE MAY BE AMENDED, FROM TIME TO TIME, OR REPEALED BY
 THE COMMON COUNCIL OR OTHER LOCAL LEGISLATIVE BODY OF  THE  MUNICIPALITY
 THAT  ENACTED IT, BY A TWO-THIRDS VOTE OF SUCH LEGISLATIVE BODY AND SUCH
 AMENDMENT OR REPEAL, AS THE CASE MAY BE, MAY BE MADE EFFECTIVE AND OPER-
 ATIVE NOT EARLIER THAN THIRTY DAYS FOLLOWING THE EFFECTIVE DATE  OF  THE
 LOCAL  LAW  OR ORDINANCE EFFECTING SUCH AMENDMENT OR REPEAL, AS THE CASE
 MAY BE, AND THE APPROVAL OF A MAJORITY OF THE ELECTORS OF  SUCH  MUNICI-
 PALITY  SHALL  NOT  BE  A CONDITION PREREQUISITE TO THE TAKING EFFECT OF
 SUCH LOCAL LAW OR ORDINANCE.
   § 1575. MANUFACTURERS OF BELL JARS; REPORTS AND RECORDS. 1.   DISTRIB-
 UTION;  MANUFACTURERS. FOR BUSINESS CONDUCTED IN THIS STATE, MANUFACTUR-
 ERS LICENSED BY THE COMMISSION TO SELL BELL JAR TICKETS SHALL SELL  SUCH
 TICKETS  ONLY  TO DISTRIBUTORS LICENSED BY THE COMMISSION. MANUFACTURERS
 OF BELL JAR TICKETS, SEAL CARDS, MERCHANDISE BOARDS AND COIN BOARDS  MAY
 SUBMIT  SAMPLES,  ARTISTS'  RENDERINGS  OR COLOR PHOTOCOPIES OF PROPOSED
 BELL JAR TICKETS, SEAL CARDS, MERCHANDISE BOARDS,  COIN  BOARDS,  PAYOUT
 CARDS AND FLARES FOR REVIEW AND APPROVAL BY THE COMMISSION. WITHIN THIR-
 TY  DAYS  OF  RECEIPT  OF SUCH SAMPLE OR RENDERING, THE COMMISSION SHALL
 APPROVE OR DENY SUCH BELL JAR TICKETS. FOLLOWING APPROVAL OF A RENDERING
 OF A BELL JAR TICKET, SEAL CARD, MERCHANDISE BOARD OR COIN BOARD BY  THE
 COMMISSION,  THE MANUFACTURER SHALL SUBMIT TO THE COMMISSION A SAMPLE OF
 THE PRINTED BELL JAR TICKET, SEAL CARD, MERCHANDISE BOARD,  COIN  BOARD,
 PAYOUT  CARD  AND  FLARE  FOR  SUCH GAME. SUCH SAMPLE SHALL BE SUBMITTED
 PRIOR TO THE SALE OF THE GAME TO ANY LICENSED DISTRIBUTOR FOR RESALE  IN
 THIS STATE. FOR COIN BOARDS AND MERCHANDISE BOARDS, NOTHING HEREIN SHALL
 REQUIRE  THE  SUBMITTAL  OF  ACTUAL  COINS OR MERCHANDISE AS PART OF THE
 APPROVAL PROCESS. ANY LICENSED MANUFACTURER WHO WILLFULLY  VIOLATES  THE
 PROVISIONS OF THIS SECTION SHALL:
   (A)  UPON  SUCH FIRST OFFENSE, HAVE ITS LICENSE SUSPENDED FOR A PERIOD
 OF THIRTY DAYS;
   (B) UPON SUCH SECOND OFFENSE, PARTICIPATE IN A HEARING TO BE CONDUCTED
 BY THE COMMISSION, AND SURRENDER ITS LICENSE FOR SUCH PERIOD  AS  RECOM-
 MENDED BY THE COMMISSION; AND
   (C)  UPON SUCH THIRD OR SUBSEQUENT OFFENSE, HAVE ITS LICENSE SUSPENDED
 FOR A PERIOD OF ONE YEAR AND SHALL BE GUILTY OF A CLASS  E  FELONY.  ANY
 UNLICENSED  MANUFACTURER  WHO  VIOLATES  THE  PROVISIONS OF THIS SECTION
 SHALL BE GUILTY OF A CLASS E FELONY.
   2. BAR CODES. THE MANUFACTURER SHALL AFFIX TO THE FLARE OF  EACH  BELL
 JAR  GAME  A  BAR  CODE  THAT PROVIDES ALL INFORMATION PRESCRIBED BY THE
 COMMISSION AND SHALL REQUIRE THAT THE BAR CODE INCLUDE THE SERIAL NUMBER

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 OF THE GAME THE FLARE DESCRIBES. A MANUFACTURER SHALL ALSO AFFIX TO  THE
 OUTSIDE OF THE CONTAINER OR WRAPPING CONTAINING A DEAL OF BELL JAR TICK-
 ETS  A  BAR  CODE PROVIDING ALL INFORMATION PRESCRIBED BY THE COMMISSION
 AND  CONTAINING  THE  SAME  INFORMATION  AS  THE BAR CODE AFFIXED TO THE
 FLARE. THE COMMISSION MAY ALSO PRESCRIBE ADDITIONAL  BAR  CODE  REQUIRE-
 MENTS.  NO PERSON MAY ALTER THE BAR CODE THAT APPEARS ON THE FLARE OR ON
 THE OUTSIDE OF THE CONTAINER OR WRAPPING CONTAINING A DEAL OF  BELL  JAR
 TICKETS.  POSSESSION  OF  A DEAL OF BELL JAR TICKETS THAT HAS A BAR CODE
 DIFFERENT FROM THE SERIAL NUMBER OF THE DEAL  INSIDE  THE  CONTAINER  OR
 WRAPPING  AS  EVIDENCED  ON  THE  FLARE IS PRIMA FACIE EVIDENCE THAT THE
 POSSESSOR HAS ALTERED THE BAR CODE ON THE CONTAINER OR WRAPPING.
   3. BELL JAR FLARES. (A) A MANUFACTURER SHALL NOT SHIP OR CAUSE  TO  BE
 SHIPPED  INTO THIS STATE ANY DEAL OF BELL JAR TICKETS THAT DOES NOT HAVE
 ITS OWN INDIVIDUAL FLARE AS REQUIRED  FOR  THAT  DEAL  BY  RULE  OF  THE
 COMMISSION.  A PERSON OTHER THAN A LICENSED MANUFACTURER SHALL NOT MANU-
 FACTURE,  ALTER,  MODIFY  OR OTHERWISE CHANGE A FLARE FOR A DEAL OF BELL
 JAR TICKETS EXCEPT AS AUTHORIZED BY THIS TITLE OR RULES AND  REGULATIONS
 PROMULGATED BY THE COMMISSION.
   (B) THE FLARE FOR EACH DEAL OF BELL JAR TICKETS SOLD BY A MANUFACTURER
 IN  THIS  STATE SHALL BE PLACED INSIDE THE WRAPPING OF THE DEAL THAT THE
 FLARE DESCRIBES.
   (C) THE BAR CODE AFFIXED TO THE FLARE OF EACH BELL JAR GAME SHALL BEAR
 THE SERIAL NUMBER OF SUCH GAME AS PRESCRIBED BY THE COMMISSION.
   (D) THE FLARE OF EACH BELL JAR GAME SHALL HAVE AFFIXED A BAR CODE THAT
 PROVIDES:
   (1) THE GAME CODE;
   (2) THE SERIAL NUMBER OF THE GAME;
   (3) THE NAME OF THE MANUFACTURER; AND
   (4) OTHER INFORMATION THE COMMISSION BY RULE MAY REQUIRE.
   THE SERIAL NUMBER INCLUDED ON THE BAR CODE SHALL BE THE  SAME  AS  THE
 SERIAL  NUMBER  OF  THE TICKETS INCLUDED IN THE DEAL. A MANUFACTURER WHO
 MANUFACTURES A DEAL OF BELL JAR TICKETS SHALL AFFIX TO  THE  OUTSIDE  OF
 THE  CONTAINER  OR WRAPPING CONTAINING THE BELL JAR TICKETS THE SAME BAR
 CODE THAT IS AFFIXED TO THE FLARE FOR THAT DEAL.
   (E) NO PERSON SHALL ALTER THE BAR CODE THAT APPEARS ON THE OUTSIDE  OF
 A  CONTAINER  OR  WRAPPING  CONTAINING  A  DEAL  OF  BELL  JAR  TICKETS.
 POSSESSION OF A DEAL OF BELL JAR TICKETS THAT HAS A BAR  CODE  DIFFERENT
 FROM  THE BAR CODE OF THE DEAL INSIDE THE CONTAINER OR WRAPPING IS PRIMA
 FACIE EVIDENCE THAT THE POSSESSOR HAS ALTERED THE BAR CODE ON THE BOX.
   4. REPORTS OF SALES. A MANUFACTURER WHO SELLS  BELL  JAR  TICKETS  FOR
 RESALE  IN  THIS  STATE  SHALL  FILE  WITH  THE  COMMISSION,  ON  A FORM
 PRESCRIBED BY THE COMMISSION, A REPORT OF ALL BELL JAR TICKETS  SOLD  TO
 DISTRIBUTORS  IN  THE STATE.   THE REPORT SHALL BE FILED QUARTERLY ON OR
 BEFORE THE TWENTIETH DAY OF THE MONTH SUCCEEDING THE END OF THE  QUARTER
 IN  WHICH  THE SALE WAS MADE. THE COMMISSION MAY REQUIRE THAT THE REPORT
 BE SUBMITTED VIA ELECTRONIC MEDIA OR ELECTRONIC DATA TRANSFER.
   5.  INSPECTION.  THE  COMMISSION  MAY  INSPECT  THE  PREMISES,  BOOKS,
 RECORDS,  AND  INVENTORY  OF  A  MANUFACTURER  WITHOUT NOTICE DURING THE
 NORMAL BUSINESS HOURS OF THE MANUFACTURER.
   § 1576. DISTRIBUTOR OF BELL JARS; REPORTS AND RECORDS.  1.    DISTRIB-
 UTION; DISTRIBUTORS. ANY DISTRIBUTOR LICENSED IN ACCORDANCE WITH SECTION
 FIFTEEN  HUNDRED FIFTY-FIVE OF THIS TITLE TO DISTRIBUTE BELL JAR TICKETS
 SHALL PURCHASE BELL JAR TICKETS ONLY FROM LICENSED MANUFACTURERS AND MAY
 MANUFACTURE COIN BOARDS AND MERCHANDISE BOARDS  ONLY  AS  AUTHORIZED  IN
 SUBDIVISION TWO OF THIS SECTION. LICENSED DISTRIBUTORS OF BELL JAR TICK-
 ETS  SHALL SELL SUCH TICKETS ONLY TO NOT-FOR-PROFIT, CHARITABLE OR RELI-

 S. 2009--A                         146                        A. 3009--A
 
 GIOUS ORGANIZATIONS REGISTERED BY THE COMMISSION. ANY LICENSED DISTRIBU-
 TOR WHO WILLFULLY VIOLATES THE PROVISIONS OF THIS SECTION SHALL:
   (A)  UPON  SUCH FIRST OFFENSE, HAVE ITS LICENSE SUSPENDED FOR A PERIOD
 OF THIRTY DAYS;
   (B) UPON SUCH SECOND OFFENSE, PARTICIPATE IN A HEARING TO BE CONDUCTED
 BY THE COMMISSION, AND SURRENDER ITS LICENSE FOR SUCH PERIOD  AS  RECOM-
 MENDED BY THE COMMISSION; AND
   (C)  UPON SUCH THIRD OR SUBSEQUENT OFFENSE, HAVE ITS LICENSE SUSPENDED
 FOR A PERIOD OF ONE YEAR AND SHALL BE GUILTY OF A CLASS  E  FELONY.  ANY
 UNLICENSED  DISTRIBUTOR  WHO  VIOLATES THIS SECTION SHALL BE GUILTY OF A
 CLASS E FELONY.
   2. COIN BOARDS AND MERCHANDISE BOARDS. DISTRIBUTORS OF BELL JAR  TICK-
 ETS  MAY  MANUFACTURE  COIN  BOARDS  AND MERCHANDISE BOARDS ONLY IF SUCH
 BOARDS HAVE BEEN APPROVED BY THE COMMISSION AND HAVE A BAR CODE  AFFIXED
 TO THEM SETTING FORTH ALL INFORMATION REQUIRED BY THE COMMISSION. EXCEPT
 THAT FOR COIN BOARDS AND MERCHANDISE BOARDS, DELINEATION OF THE PRIZE OR
 PRIZE  VALUE NEED NOT BE INCLUDED ON THE GAME TICKET SOLD IN CONJUNCTION
 WITH A COIN BOARD OR MERCHANDISE BOARD.   IN LIEU OF  SUCH  REQUIREMENT,
 THE  DISTRIBUTOR  SHALL BE REQUIRED TO DISCLOSE THE PRIZE LEVELS AND THE
 NUMBER OF WINNERS AT EACH LEVEL AND SHALL  PRINT  CLEARLY  ON  THE  GAME
 TICKET  THAT  A  TICKET  HOLDER MAY OBTAIN THE PRIZE AND PRIZE VALUE FOR
 EACH PRIZE LEVEL BY REFERENCING THE FLARE. SUCH  COIN  BOARDS  SHALL  BE
 SOLD  ONLY BY LICENSED DISTRIBUTORS TO LICENSED AUTHORIZED ORGANIZATIONS
 REGISTERED BY THE COMMISSION IN ACCORDANCE WITH THE PROVISIONS  OF  THIS
 TITLE.
   3.  BUSINESS  RECORDS. A DISTRIBUTOR SHALL KEEP AT EACH PLACE OF BUSI-
 NESS COMPLETE AND ACCURATE RECORDS FOR THAT PLACE OF BUSINESS, INCLUDING
 ITEMIZED INVOICES OF BELL JAR TICKETS HELD AND  PURCHASED.  THE  RECORDS
 MUST  SHOW  THE  NAMES AND ADDRESSES OF PURCHASERS, THE INVENTORY AT THE
 CLOSE OF EACH PERIOD FOR WHICH A RETURN IS REQUIRED, ALL BELL JAR  TICK-
 ETS  ON  HAND  AND  OTHER PERTINENT PAPERS AND DOCUMENTS RELATING TO THE
 PURCHASE, SALE OR DISPOSITION OF BELL JAR TICKETS AS MAY BE REQUIRED  BY
 THE  COMMISSION.  BOOKS, RECORDS, ITEMIZED INVOICES AND OTHER PAPERS AND
 DOCUMENTS REQUIRED BY THIS SECTION SHALL BE KEPT  FOR  A  PERIOD  OF  AT
 LEAST  FOUR  YEARS  AFTER  THE DATE OF THE DOCUMENTS, OR THE DATE OF THE
 ENTRIES APPEARING IN THE RECORDS, UNLESS THE  COMMISSION  AUTHORIZES  IN
 WRITING  THEIR  DESTRUCTION OR DISPOSAL AT AN EARLIER DATE. A PERSON WHO
 VIOLATES THIS SECTION SHALL BE GUILTY OF A MISDEMEANOR.
   4. SALES RECORDS. A DISTRIBUTOR SHALL MAINTAIN A RECORD  OF  ALL  BELL
 JAR  TICKETS  THAT  IT  SELLS. THE RECORD SHALL INCLUDE, BUT NEED NOT BE
 LIMITED TO:
   (A) THE  IDENTITY  OF  THE  MANUFACTURER  FROM  WHOM  THE  DISTRIBUTOR
 PURCHASED THE PRODUCT;
   (B) THE SERIAL NUMBER OF THE PRODUCT;
   (C)  THE  NAME,  ADDRESS  AND  LICENSE  OR EXEMPT PERMIT NUMBER OF THE
 ORGANIZATION OR PERSON TO WHICH THE SALE WAS MADE;
   (D) THE DATE OF THE SALE;
   (E) THE NAME OF THE PERSON WHO ORDERED THE PRODUCT;
   (F) THE NAME OF THE PERSON WHO RECEIVED THE PRODUCT;
   (G) THE TYPE OF PRODUCT;
   (H) THE SERIAL NUMBER OF THE PRODUCT;
   (I) THE ACCOUNT NUMBER IDENTIFYING THE SALE FROM THE  MANUFACTURER  TO
 DISTRIBUTOR  AND  THE  ACCOUNT  NUMBER  IDENTIFYING  THE  SALE  FROM THE
 DISTRIBUTOR TO THE LICENSED ORGANIZATION; AND
   (J) THE NAME, FORM NUMBER OR OTHER IDENTIFYING  INFORMATION  FOR  EACH
 GAME.

 S. 2009--A                         147                        A. 3009--A
 
   5.  INVOICES.  A DISTRIBUTOR SHALL SUPPLY WITH EACH SALE OF A BELL JAR
 PRODUCT AN ITEMIZED INVOICE SHOWING:
   (A) THE DISTRIBUTOR'S NAME AND ADDRESS;
   (B) THE PURCHASER'S NAME, ADDRESS, AND LICENSE NUMBER;
   (C) THE DATE OF THE SALE;
   (D)  THE  ACCOUNT NUMBER IDENTIFYING THE SALE FROM THE MANUFACTURER TO
 DISTRIBUTOR;
   (E) THE ACCOUNT NUMBER IDENTIFYING THE SALE FROM  THE  DISTRIBUTOR  TO
 THE LICENSED ORGANIZATION; AND
   (F) THE DESCRIPTION OF THE DEALS, INCLUDING THE FORM NUMBER, THE SERI-
 AL  NUMBER  AND  THE  IDEAL GROSS FROM EVERY DEAL OF BELL JAR OR SIMILAR
 GAME.
   6. REPORTS. A DISTRIBUTOR SHALL REPORT QUARTERLY TO THE COMMISSION, ON
 A FORM PRESCRIBED BY THE COMMISSION, ITS SALES OF EACH TYPE OF BELL  JAR
 DEAL  OR  TICKETS. THIS REPORT SHALL BE FILED QUARTERLY ON OR BEFORE THE
 TWENTIETH DAY OF THE MONTH SUCCEEDING THE END OF THE  QUARTER  IN  WHICH
 THE  SALE WAS MADE. THE COMMISSION MAY REQUIRE THAT A DISTRIBUTOR SUBMIT
 THE QUARTERLY REPORT AND INVOICES REQUIRED BY THIS SECTION VIA ELECTRON-
 IC MEDIA OR ELECTRONIC DATA TRANSFER.
   7. THE COMMISSION MAY INSPECT THE PREMISES, BOOKS, RECORDS AND  INVEN-
 TORY OF A DISTRIBUTOR WITHOUT NOTICE DURING THE NORMAL BUSINESS HOURS OF
 THE DISTRIBUTOR.
   8.  CERTIFIED  PHYSICAL  INVENTORY.  THE COMMISSION MAY, UPON REQUEST,
 REQUIRE A DISTRIBUTOR TO FURNISH A CERTIFIED PHYSICAL INVENTORY  OF  ALL
 BELL  JAR  TICKETS IN STOCK. THE INVENTORY SHALL CONTAIN THE INFORMATION
 REQUESTED BY THE COMMISSION.
   § 1577. TRANSFER RESTRICTIONS. NOT-FOR-PROFIT, CHARITABLE OR RELIGIOUS
 ORGANIZATIONS AUTHORIZED TO SELL BELL JAR  TICKETS  IN  ACCORDANCE  WITH
 THIS  TITLE  SHALL  PURCHASE  BELL  JAR  TICKETS  ONLY FROM DISTRIBUTORS
 LICENSED BY THE COMMISSION. NO NOT-FOR-PROFIT, CHARITABLE  OR  RELIGIOUS
 ORGANIZATION  SHALL  SELL, DONATE OR OTHERWISE TRANSFER BELL JAR TICKETS
 TO ANY OTHER NOT-FOR-PROFIT, CHARITABLE OR RELIGIOUS ORGANIZATION.
   § 1578. BELL JARS COMPLIANCE AND ENFORCEMENT. 1. IN THE CASE  OF  BELL
 JARS,  THE  LICENSEE, UPON FILING FINANCIAL STATEMENTS OF BELL JAR OPER-
 ATIONS, SHALL ALSO TENDER TO THE COMMISSION A SUM IN THE AMOUNT OF  FIVE
 PERCENT  OF  THE  NET  PROCEEDS  FROM THE SALE OF BELL JAR TICKETS, SEAL
 CARDS, MERCHANDISE BOARDS AND COIN BOARDS, IF ANY, FOR THAT  PORTION  OF
 LICENSE PERIOD COVERED BY SUCH STATEMENT.
   2.  UNSOLD  TICKETS  OF THE BELL JAR DEAL SHALL BE KEPT ON FILE BY THE
 SELLING ORGANIZATION FOR INSPECTION BY THE COMMISSION FOR  A  PERIOD  OF
 ONE  YEAR FOLLOWING THE DATE UPON WHICH THE RELEVANT FINANCIAL STATEMENT
 WAS RECEIVED BY THE COMMISSION.
   3. ONE-HALF OF ONE PERCENT OF THE FEE SET FORTH IN SUBDIVISION ONE  OF
 THIS  SECTION RECEIVED FROM AUTHORIZED VOLUNTEER FIRE COMPANIES SHALL BE
 PAID TO THE NEW YORK STATE EMERGENCY  SERVICES  REVOLVING  LOAN  ACCOUNT
 ESTABLISHED  PURSUANT  TO  SECTION  NINETY-SEVEN-PP OF THE STATE FINANCE
 LAW.
   4. THE COMMISSION SHALL SUBMIT TO THE DIRECTOR OF THE DIVISION OF  THE
 BUDGET  AN  ANNUAL  PLAN THAT DETAILS THE AMOUNT OF MONEY THE COMMISSION
 DEEMS NECESSARY TO MAINTAIN OPERATIONS, COMPLIANCE  AND  ENFORCEMENT  OF
 THE  PROVISIONS  OF  THIS  TITLE  AND  THE COLLECTION OF THE LICENSE FEE
 AUTHORIZED BY THIS SECTION.  CONTINGENT UPON THE APPROVAL OF THE  DIREC-
 TOR  OF  THE  DIVISION  OF  THE BUDGET, THE COMMISSION SHALL PAY INTO AN
 ACCOUNT, TO BE KNOWN AS THE BELL JAR COLLECTION ACCOUNT, UNDER THE JOINT
 CUSTODY OF THE COMPTROLLER AND  THE  COMMISSION,  THE  TOTAL  AMOUNT  OF
 LICENSE  FEES  COLLECTED  PURSUANT TO THIS SECTION. WITH THE APPROVAL OF

 S. 2009--A                         148                        A. 3009--A
 
 THE DIRECTOR OF THE DIVISION OF THE BUDGET, MONIES TO BE USED  TO  MAIN-
 TAIN  THE  OPERATIONS  NECESSARY TO ENFORCE THE PROVISIONS OF THIS TITLE
 AND THE COLLECTION OF THE LICENSE FEE IMPOSED BY THIS SECTION  SHALL  BE
 PAID  OUT OF SUCH ACCOUNT ON THE AUDIT AND WARRANT OF THE COMPTROLLER ON
 VOUCHERS CERTIFIED OR APPROVED BY THE DIRECTOR OF THE  DIVISION  OF  THE
 BUDGET OR THE DIRECTOR'S DULY DESIGNATED OFFICIAL. THOSE MONIES THAT ARE
 NOT  USED  TO MAINTAIN OPERATIONS NECESSARY TO ENFORCE THE PROVISIONS OF
 THIS TITLE AND THE COLLECTION OF THE  LICENSE  FEE  AUTHORIZED  BY  THIS
 SECTION SHALL BE PAID OUT OF SUCH AMOUNT ON THE AUDIT AND WARRANT OF THE
 STATE COMPTROLLER AND SHALL BE CREDITED TO THE GENERAL FUND.
   § 3. Section 129 of the racing, pari-mutuel wagering and breeding law,
 as  added  by  section 1 of part A of chapter 60 of the laws of 2012, is
 amended to read as follows:
   § 129. Construction of other laws or provisions.  Unless  the  context
 [shall require] REQUIRES otherwise, the terms "division of the lottery",
 "state  quarter  horse  racing  commission",  "state racing commission",
 "state harness racing commission", "state racing and wagering board"  or
 "board"  wherever  occurring in any of the provisions of this chapter or
 of any other law, or, in any official books, records, instruments, rules
 or papers, shall hereafter mean and refer to the state gaming commission
 created by section one hundred two of this article.  The  provisions  of
 article  three  of  this chapter shall be inapplicable to article two of
 this chapter; and the provisions of such article two shall be inapplica-
 ble to such article three, except that section two hundred thirty-one of
 such article two shall apply to such article three. UNLESS  THE  CONTEXT
 REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 19-B OF THE EXECUTIVE LAW"
 WHEREVER  OCCURRING  IN  ANY  LAW,  OR,  IN ANY OFFICIAL BOOKS, RECORDS,
 INSTRUMENTS, RULES OR PAPERS, SHALL HEREAFTER MEAN AND REFER  TO  TITLES
 ONE  AND  TWO  OF  ARTICLE  FIFTEEN  OF THIS CHAPTER. UNLESS THE CONTEXT
 REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 14-H OF THE GENERAL MUNIC-
 IPAL LAW" WHEREVER OCCURRING IN ANY LAW,  OR,  IN  ANY  OFFICIAL  BOOKS,
 RECORDS, INSTRUMENTS, RULES OR PAPERS, SHALL HEREAFTER MEAN AND REFER TO
 TITLES  ONE  AND  THREE  OF  ARTICLE FIFTEEN OF THIS CHAPTER. UNLESS THE
 CONTEXT REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 9-A OF THE GENERAL
 MUNICIPAL LAW" WHEREVER OCCURRING IN ANY LAW, OR, IN ANY OFFICIAL BOOKS,
 RECORDS, INSTRUMENTS, RULES OR PAPERS, SHALL HEREAFTER MEAN AND REFER TO
 TITLES ONE AND FOUR OF ARTICLE FIFTEEN OF THIS CHAPTER.
   § 4. Paragraph (b) of subdivision 2 of  section  103  of  the  racing,
 pari-mutuel  wagering  and breeding law, as added by section 1 of part A
 of chapter 60 of the laws of 2012, is amended as follows:
   (b) Charitable gaming. The division  of  charitable  gaming  shall  be
 responsible  for  the  supervision  and  administration  of the games of
 chance licensing law, bingo licensing  law  and  bingo  control  law  as
 prescribed  by  [articles nine-A and fourteen-H of the general municipal
 law and nineteen-B  of  the  executive  law]  ARTICLE  FIFTEEN  OF  THIS
 CHAPTER.
   §  5.  Subdivision 1 and paragraph (b) of subdivision 3 of section 151
 of the social services law, subdivision 1 as amended and  paragraph  (b)
 of  subdivision  3  as added by section 2 of part F of chapter 58 of the
 laws of 2014, are amended to read as follows:
   1. Unauthorized transactions. Except as otherwise provided in subdivi-
 sion two of this section, no person,  firm,  establishment,  entity,  or
 corporation  (a) licensed under the provisions of the alcoholic beverage
 control law to sell  liquor  and/or  wine  at  retail  for  off-premises
 consumption;  (b) licensed to sell beer at wholesale and also authorized
 to sell beer at retail for off-premises  consumption;  (c)  licensed  or

 S. 2009--A                         149                        A. 3009--A
 
 authorized  to  conduct  pari-mutuel wagering activity under the racing,
 pari-mutuel wagering and breeding law; (d) licensed  to  participate  in
 charitable  gaming  under  [article fourteen-H of the general municipal]
 TITLE  THREE  OF ARTICLE FIFTEEN OF THE RACING, PARI-MUTUEL WAGERING AND
 BREEDING law; (e) licensed to participate in the operation  of  a  video
 lottery  facility  under section one thousand six hundred seventeen-a of
 the tax law; (f) licensed to operate a  gaming  facility  under  section
 [one  thousand three] THIRTEEN hundred eleven of the racing, pari-mutuel
 wagering and breeding law; or (g) providing adult-oriented entertainment
 in which performers disrobe or perform in an unclothed state for  enter-
 tainment,  or  making available the venue in which performers disrobe or
 perform in an unclothed state for entertainment, shall  cash  or  accept
 any public assistance check or electronic benefit transfer device issued
 by a public welfare official or department, or agent thereof, as and for
 public assistance.
   (b)  A  violation of the provisions of subdivision one of this section
 by any person, corporation or entity licensed to operate a gaming facil-
 ity under section one thousand three hundred eleven of the racing, pari-
 mutuel wagering and breeding law; licensed under  section  one  thousand
 six  hundred  seventeen-a of the tax law to participate in the operation
 of a video lottery facility; licensed or authorized to conduct  pari-mu-
 tuel  wagering  under the racing, pari-mutuel wagering and breeding law;
 or licensed to participate in charitable  gaming  under  [article  four-
 teen-H  of  the general municipal] TITLE THREE OF ARTICLE FIFTEEN OF THE
 RACING, PARI-MUTUEL  WAGERING  AND  BREEDING  law,  shall  subject  such
 person, corporation or entity to disciplinary action pursuant to section
 one  hundred  four  of the racing, pari-mutuel wagering and breeding law
 and section one thousand six hundred seven of the  tax  law,  which  may
 include  revocation,  cancellation  or  suspension  of  such  license or
 authorization.
   § 6. Paragraph 3 of subdivision (c) of section 290 of the tax law,  as
 amended  by  chapter  547  of  the  laws  of 1987, is amended to read as
 follows:
   (3) Any income derived from the conduct of games  of  chance  or  from
 rental  of  premises  for  the  conduct of games of chance pursuant to a
 license granted under TITLE FOUR  OF  article  [nine-A  of  the  general
 municipal]  FIFTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING law
 shall not be subject to tax under this article.
   § 7. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.
 
                                  PART NN
 
   Section  1. Section 207 of the racing, pari-mutuel wagering and breed-
 ing law, as added by chapter 18 of the laws of 2008, paragraphs a, b and
 c of subdivision 1 as added by section 4, paragraph c of  subdivision  1
 as added by section 5 and subdivision 5 as added by section 6 of chapter
 457  of the laws of 2012, and paragraph d of subdivision 1 as amended by
 section 1 of part C of chapter 73 of the laws of  2016,  is  amended  to
 read as follows:
   §  207.  Board  of  directors  of a franchised corporation. 1.  a. The
 board of directors, to be called the New York racing association  [reor-
 ganization]  board,  shall consist of [seventeen] FIFTEEN members[, five
 of whom shall be elected by the present class A  directors  of  The  New
 York  Racing Association, Inc., eight to be] WHO SHALL HAVE EQUAL VOTING
 RIGHTS: SIX appointed by the governor[, two to] EACH OF WHOM MUST  BE  A

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 RESIDENT  OF  NEW YORK STATE, AND ONE OF WHOM SHALL be appointed [by] ON
 THE RECOMMENDATION OF the temporary president of the senate and [two to]
 ONE OF WHOM SHALL be appointed [by] ON THE RECOMMENDATION OF the speaker
 of  the  assembly; EIGHT APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW
 YORK RACING ASSOCIATION REORGANIZATION BOARD  OF  DIRECTORS  CONSTITUTED
 PURSUANT TO CHAPTER FOUR HUNDRED FIFTY-SEVEN OF THE LAWS OF TWO THOUSAND
 TWELVE,  WHICH  SHALL  CONTINUE TO EXIST UNTIL SUCH TIME AS THE APPOINT-
 MENTS REQUIRED HEREUNDER ARE MADE; AND ONE WHO SHALL  BE  THE  PRESIDENT
 AND  CHIEF  EXECUTIVE  OFFICER OF THE FRANCHISED CORPORATION, EX OFFICIO
 AND WITHOUT TERM LIMITATION. THE NEW YORK RACING ASSOCIATION BOARD SHALL
 HAVE TWO EX OFFICIO, NON-VOTING MEMBERS: ONE APPOINTED BY THE  NEW  YORK
 THOROUGHBRED BREEDERS, INC., AND ONE APPOINTED BY THE NEW YORK THOROUGH-
 BRED  HORSEMEN'S  ASSOCIATION REPRESENTING AT LEAST FIFTY-ONE PERCENT OF
 THE HORSEMEN USING THE FACILITIES OF THE FRANCHISED CORPORATION. THE NEW
 YORK RACING ASSOCIATION BOARD MAY INCLUDE ADDITIONAL  EX  OFFICIO,  NON-
 VOTING MEMBERS AS APPOINTED PURSUANT TO A MAJORITY VOTE OF THE BOARD.
   (i)  The  governor  shall  nominate  a member to serve as chair FOR AN
 INITIAL TERM OF THREE YEARS, WHO SHALL SERVE  AT  THE  PLEASURE  OF  THE
 GOVERNOR,  subject  to  confirmation  by  majority vote of the board [of
 directors. All non-ex officio members shall have equal  voting  rights].
 THEREAFTER,  THE  BOARD  SHALL  ELECT  ITS CHAIR, WHO SHALL SERVE AT THE
 PLEASURE OF THE BOARD, FROM AMONG ITS MEMBERS.
   (ii) THE TERM OF VOTING MEMBERSHIP ON THE NEW YORK RACING  ASSOCIATION
 BOARD  SHALL  BE  THREE YEARS. INDIVIDUAL APPOINTEES SHALL BE LIMITED TO
 SERVING AS A VOTING MEMBER THE LESSER OF  THREE  TERMS  OR  NINE  YEARS.
 NOTWITHSTANDING THE FOREGOING, THE INITIAL TERM OF TWO MEMBERS APPOINTED
 BY THE GOVERNOR AND THREE MEMBERS APPOINTED BY THE NEW YORK RACING ASSO-
 CIATION  REORGANIZATION BOARD SHALL EXPIRE MARCH THIRTY-FIRST, TWO THOU-
 SAND EIGHTEEN; THE INITIAL TERM OF TWO MEMBERS APPOINTED BY THE NEW YORK
 RACING ASSOCIATION REORGANIZATION BOARD AND THREE MEMBERS  APPOINTED  BY
 THE  GOVERNOR SHALL EXPIRE ON MARCH THIRTY-FIRST, TWO THOUSAND NINETEEN;
 AND THE REMAINING MEMBERS SHALL SERVE FULL THREE-YEAR TERMS.
   (III) In the event of a member vacancy occurring by death, resignation
 or otherwise, the respective appointing [officer or officers]  AUTHORITY
 shall  appoint  a  successor  who  shall  hold  office for the unexpired
 portion of the term. [A vacancy from  the  members  appointed  from  the
 present  board of The New York Racing Association, Inc., shall be filled
 by the remaining such members] IN THE CASE OF  VACANCIES  AMONG  MEMBERS
 APPOINTED  BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING ASSOCIATION
 REORGANIZATION BOARD OF DIRECTORS CONSTITUTED PURSUANT TO  CHAPTER  FOUR
 HUNDRED  FIFTY-SEVEN  OF  THE  LAWS OF TWO THOUSAND TWELVE, APPOINTMENTS
 THEREAFTER SHALL BE MADE BY THE EXECUTIVE  COMMITTEE  OF  THE  NEW  YORK
 RACING  ASSOCIATION  BOARD  AS CONSTITUTED BY THE CHAPTER OF THE LAWS OF
 TWO THOUSAND SEVENTEEN THAT AMENDED THIS SECTION.
   b. The franchised corporation shall establish a compensation committee
 to fix salary guidelines, such guidelines to be consistent with an oper-
 ation of other first class thoroughbred racing operations in the  United
 States;  a  finance  AND AUDIT committee, to review annual operating and
 capital budgets for each of  the  three  racetracks;  a  nominating  AND
 GOVERNANCE  committee, to nominate any new directors to be designated by
 the franchised corporation to replace  its  existing  directors  AND  BE
 RESPONSIBLE  FOR  ALL  ISSUES AFFECTING THE GOVERNANCE OF THE FRANCHISED
 CORPORATION; AN EQUINE SAFETY COMMITTEE; A RACING COMMITTEE  TO  ADDRESS
 ALL  ISSUES  RELATED  TO  RACING OPERATIONS; and an executive committee.
 Each of the compensation, finance, nominating and  executive  committees
 shall  include  at least one [of] PUBLIC MEMBER FROM AMONG the directors

 S. 2009--A                         151                        A. 3009--A
 
 appointed by the governor[, and the executive committee shall include at
 least one of the directors appointed by the temporary president  of  the
 senate and at least one of the directors appointed by the speaker of the
 assembly].
   [b.  In  addition to these voting members, the board shall have two ex
 officio members  to  advise  on  critical  economic  and  equine  health
 concerns of the racing industry, one appointed by the New York Thorough-
 bred  Breeders  Inc.,  and  one  appointed  by the New York thoroughbred
 horsemen's association  (or  such  other  entity  as  is  certified  and
 approved pursuant to section two hundred twenty-eight of this article).
   c.  All  directors  shall  serve  at  the pleasure of their appointing
 authority.]
   c. Upon the effective date of this paragraph, the structure of the NEW
 YORK RACING ASSOCIATION board [of the franchised corporation]  shall  be
 deemed  to  be  incorporated  within and made part of the certificate of
 incorporation of the franchised corporation, and no  amendment  to  such
 certificate  of  incorporation  shall be necessary to give effect to any
 such provision, and any  provision  contained  within  such  certificate
 inconsistent in any manner shall be superseded by the provisions of this
 section.  Such board shall, however, make appropriate conforming changes
 to all governing documents of the franchised corporation  including  but
 not  limited  to  corporate  by-laws. Following such conforming changes,
 amendments to the by-laws of the franchised corporation shall [only]  be
 made ONLY by unanimous vote of the board.
   [d.  The  board,  which  shall  become effective upon appointment of a
 majority of public members, shall terminate five years from its date  of
 creation.]
   2.  Members  of  the  NEW YORK RACING ASSOCIATION board [of directors]
 shall serve without  compensation  for  their  services,  but  [publicly
 appointed  members of the board] shall be entitled to reimbursement from
 the franchised corporation for actual and necessary expenses incurred in
 the performance of their [official] duties FOR THE BOARD.
   3. Members of the NEW YORK RACING ASSOCIATION  board  [of  directors],
 except  as  otherwise  provided  by law, may engage in PUBLIC OR private
 employment, or in a profession or business, however no member shall have
 any direct or indirect economic interest in  any  video  lottery  gaming
 facility, excluding incidental benefits based on purses or awards won in
 the  ordinary  conduct  of  racing operations, or any direct or indirect
 interest in any development undertaken at the racetracks  of  the  state
 racing franchise.
   4.  The  affirmative  vote  of  a  majority of members of the NEW YORK
 RACING ASSOCIATION board [of directors] shall be necessary for the tran-
 saction of any business or the exercise of any power or function of  the
 franchised  corporation.  The  franchised corporation may delegate on an
 annual basis to one or more of its members, or its officers,  agents  or
 employees, such powers and duties as it may deem proper.
   5.  Each  voting  member  of the NEW YORK RACING ASSOCIATION board [of
 directors] of the franchised corporation shall annually make  a  written
 disclosure  to  [the]  SUCH  board of any interest held by the director,
 such director's spouse or unemancipated child, in any entity undertaking
 business in the racing or breeding industry.  Such  interest  disclosure
 shall  be  promptly  updated,  in  writing, in the event of any material
 change.
   The NEW YORK RACING ASSOCIATION board shall establish  parameters  for
 the reporting and disclosure of such director interests.

 S. 2009--A                         152                        A. 3009--A
 
   6.  EACH  VOTING  MEMBER  OF  THE  NEW  YORK  RACING ASSOCIATION BOARD
 APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING  ASSOCIATION
 REORGANIZATION  BOARD  OF  DIRECTORS  SHALL  SEEK A RACETRACK MANAGEMENT
 LICENSE ISSUED BY THE GAMING COMMISSION, ANY FEES  FOR  WHICH  SHALL  BE
 WAIVED  BY THE COMMISSION. NO VOTING MEMBER OF THE BOARD REQUIRED BY THE
 FOREGOING TO SEEK A RACETRACK MANAGEMENT LICENSE MAY VOTE ON  ANY  BOARD
 MATTER UNTIL SUCH LICENSE IS ISSUED.
   7.  FOR  PURPOSES  OF  SECTION TWO HUNDRED TWELVE OF THIS ARTICLE, THE
 ESTABLISHMENT OF THE NEW YORK RACING ASSOCIATION, INC. BOARD  OF  DIREC-
 TORS UNDER THIS SECTION SHALL NOT CONSTITUTE THE ASSUMPTION OF THE FRAN-
 CHISE BY A SUCCESSOR ENTITY.
   §  2.  Subparagraphs  (ii),  (iii), (vii) and (xvii) of paragraph a of
 subdivision 8 of section 212 of the  racing,  pari-mutuel  wagering  and
 breeding  law,  as added by chapter 18 of the laws of 2008, are amended,
 subparagraph (xviii) is renumbered subparagraph (xx) and two new subpar-
 agraphs (xviii) and (xix) are added to read as follows:
   (ii) monitor and enforce compliance  with  definitive  documents  that
 comprise  the franchise agreement between the franchised corporation and
 the state of New York governing the franchised  corporation's  operation
 of  thoroughbred  racing and pari-mutuel wagering at the racetracks. The
 franchise agreement shall contain objective performance  standards  that
 shall  allow  contract  review in a manner consistent with this chapter.
 The franchise oversight board shall notify  the  franchised  corporation
 authorized  by  this  chapter  in  writing of any material breach of the
 performance standards or repeated non-material breaches which the  fran-
 chise  oversight  board may determine collectively constitute a material
 breach of the performance standards. Prior to taking any action  against
 such franchised corporation, the franchise oversight board shall provide
 the  franchised  corporation with the reasonable opportunity to cure any
 material breach of the performance standards  or  repeated  non-material
 breaches  which the franchise oversight board may determine collectively
 constitute a material breach of the performance standards.  Upon a writ-
 ten finding of  a  material  breach  of  the  performance  standards  or
 repeated  non-material  breaches which the franchise oversight board may
 determine collectively constitute a material breach of  the  performance
 standards,  the  franchise  oversight board may recommend that the fran-
 chise agreement be terminated. The franchise oversight board shall refer
 such recommendation to the [racing and wagering board] COMMISSION for  a
 hearing  conducted  pursuant  to  section two hundred forty-five of this
 article for a determination of whether to terminate the franchise agree-
 ment with the franchised corporation;
   (iii) oversee, monitor and review  all  significant  transactions  and
 operations  of  the  franchised  corporation authorized by this chapter;
 provided, however, that nothing in  this  section  shall  be  deemed  to
 reduce, diminish or impede the authority of the [state racing and wager-
 ing  board]  COMMISSION  to,  pursuant  to  article one of this chapter,
 determine and enforce compliance  by  the  franchised  corporation  with
 terms  of racing laws and regulations. Such oversight shall include, but
 not be limited to:
   (A) review and make recommendations concerning  the  annual  operating
 budgets of such franchised corporation;
   (B)  review and make recommendations concerning operating revenues and
 the establishment of a financial plan;
   (C) review and make recommendations  concerning  accounting,  internal
 control systems and security procedures;

 S. 2009--A                         153                        A. 3009--A

   (D)  review  such  franchised  corporation's  revenue  and expenditure
 [polices] POLICIES which shall include collective bargaining  agreements
 management and employee compensation plans, vendor contracts and capital
 improvement plans;
   (E)  review  such  franchise  corporation's  compliance with the laws,
 rules and regulations applicable to its activities;
   (F) make recommendations for establishing model governance  principles
 to improve accountability and transparency; and
   (G)  receive,  review,  approve  or  disapprove  capital expense plans
 submitted annually by the franchised corporation.
   (vii) review and  provide  any  recommendations  on  all  simulcasting
 contracts  (buy and sell) that are also subject to prior approval of the
 [racing and wagering board] COMMISSION;
   (xvii) request and accept the assistance of any state agency,  includ-
 ing  but not limited to, the [racing and wagering board, the division of
 the lottery] COMMISSION, office of parks, recreation and historic  pres-
 ervation,  the  department of environmental conservation and the depart-
 ment of taxation and finance, in obtaining information  related  to  the
 franchised  corporation's  compliance  with  the  terms of the franchise
 agreement;[and]
    (XVIII) WHEN THE FRANCHISE OVERSIGHT BOARD DETERMINES  THE  FINANCIAL
 POSITION  OF THE FRANCHISED CORPORATION HAS DEVIATED MATERIALLY FROM THE
 FRANCHISED CORPORATION'S FINANCIAL PLAN, OR OTHER SUCH RELATED DOCUMENTS
 PROVIDED TO THE FRANCHISE OVERSIGHT BOARD, OR WHEN THE IMPLEMENTATION OF
 SUCH PLAN WOULD, IN THE OPINION OF THE FRANCHISE OVERSIGHT BOARD, POSE A
 SIGNIFICANT RISK TO THE LIQUIDITY OF THE FRANCHISED CORPORATION, IN  ANY
 ORDER OR COMBINATION:
   (A) HIRE, AT THE EXPENSE OF THE FRANCHISED CORPORATION, AN INDEPENDENT
 FINANCIAL  ADVISER  TO EVALUATE THE FINANCIAL POSITION OF THE FRANCHISED
 CORPORATION AND REPORT ON SUCH TO THE FRANCHISE OVERSIGHT BOARD; AND
   (B) REQUIRE THE FRANCHISED CORPORATION TO  SUBMIT  FOR  THE  FRANCHISE
 OVERSIGHT  BOARD'S  APPROVAL  A  CORRECTIVE  ACTION  PLAN ADDRESSING ANY
 CONCERNS IDENTIFIED AS RISKS BY THE FRANCHISE OVERSIGHT BOARD.
   (XIX) WHEN THE FRANCHISE OVERSIGHT BOARD FINDS THE  FRANCHISED  CORPO-
 RATION  HAS  EXPERIENCED TWO CONSECUTIVE YEARS OF MATERIAL LOSSES DUE TO
 CIRCUMSTANCES WITHIN THE  CONTROL  OF  THE  FRANCHISED  CORPORATION,  AS
 DETERMINED  BY  THE FRANCHISE OVERSIGHT BOARD, THE BOARD MAY BY MAJORITY
 VOTE REQUEST THE DIRECTOR OF THE BUDGET TO  IMPOUND  AND  ESCROW  RACING
 SUPPORTING  PAYMENTS  ACCRUING  TO  THE BENEFIT OF THE FRANCHISED CORPO-
 RATION UNTIL THE FRANCHISED CORPORATION ACHIEVES THE GOALS OF  A  BOARD-
 APPROVED  CORRECTIVE  ACTION  PLAN ADDRESSING CONCERNS IDENTIFIED BY THE
 BOARD. THE DIRECTOR OF THE BUDGET MAY, UPON  WARRANT  OF  THE  FRANCHISE
 OVERSIGHT  BOARD,  APPROVE  THE  USE OF WITHHELD RACING SUPPORT PAYMENTS
 NECESSARY TO SATISFY FINANCIAL INSTRUMENTS USED TO  FUND  BOARD-APPROVAL
 CAPITAL INVESTMENTS.
   § 3. 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

 S. 2009--A                         154                        A. 3009--A
 
 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, BUT ONLY IF SUCH RACES CONCLUDE BEFORE ELEV-
 EN O'CLOCK POST MERIDIAN. 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 STAGGERED.
   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.
   § 4. Subparagraph (i) of paragraph (d) of subdivision 1 of section 238
 of the racing, pari-mutuel wagering and  breeding  law,  as  amended  by
 section  2  of  part BB of chapter 60 of the laws of 2016, is amended to
 read as follows:
   (i) The pari-mutuel tax rate  authorized  by  paragraph  (a)  of  this
 subdivision shall be effective so long as a franchised corporation noti-
 fies  the  gaming  commission by August fifteenth of each year that such
 pari-mutuel tax rate is effective of its intent to conduct a race  meet-
 ing at Aqueduct racetrack during the months of December, January, Febru-
 ary,  March  and April. For purposes of this paragraph such race meeting
 shall consist of not less than ninety-five days of racing UNLESS  OTHER-
 WISE  AGREED  TO  IN WRITING BY THE NEW YORK THOROUGHBRED BREEDERS INC.,
 THE NEW YORK THOROUGHBRED HORSEMEN'S ASSOCIATION (OR SUCH  OTHER  ENTITY
 AS  IS  CERTIFIED  AND  APPROVED PURSUANT TO SECTION TWO HUNDRED TWENTY-
 EIGHT OF THIS ARTICLE) AND APPROVED BY THE COMMISSION.  Not  later  than
 May  first of each year that such pari-mutuel tax rate is effective, the
 gaming commission shall determine whether a  race  meeting  at  Aqueduct
 racetrack consisted of the number of days as required by this paragraph.
 In  determining  the  number  of  race  days, cancellation of a race day
 because of an act of God that the gaming commission approves or  because
 of  weather  conditions  that  are  unsafe or hazardous which the gaming
 commission approves shall not be construed as a  failure  to  conduct  a
 race  day.  Additionally,  cancellation of a race day because of circum-
 stances beyond the control of such franchised corporation for which  the
 gaming  commission gives approval shall not be construed as a failure to
 conduct a race day. If the gaming commission determines that the  number
 of  days  of racing as required by this paragraph have not occurred then
 the pari-mutuel tax rate in paragraph  (a)  of  this  subdivision  shall
 revert  to  the  pari-mutuel tax rates in effect prior to January first,
 nineteen hundred ninety-five.
   § 5. This act shall take effect April 1, 2017; provided, however, that
 section one of this act shall take effect  upon  the  appointment  of  a

 S. 2009--A                         155                        A. 3009--A
 
 majority  of  board members; provided, further, that the state franchise
 oversight board shall notify the legislative  bill  drafting  commission
 upon  the  occurrence  of such appointments 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; provided further that the amendments to section
 212 of the racing, pari-mutuel wagering and breeding law made by section
 two of this act shall not affect the repeal of such section and shall be
 deemed repealed therewith.
 
                                  PART OO
 
   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  FF  of  chapter  60 of the laws of 2016, 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

 S. 2009--A                         156                        A. 3009--A
 
 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  [seventeen] EIGHTEEN; 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 [seventeen] EIGHTEEN; 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 FF of chapter 60 of the laws of 2016, 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 [seventeen] EIGHTEEN, the amount used exclusive-
 ly  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  FF  of  chapter  60 of the laws of 2016, 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 [seventeen] EIGHTEEN 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 thirti-
 eth,  two  thousand  [seventeen] EIGHTEEN.   On any day on which a fran-
 chised 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 represen-
 tative 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 FF of  chapter  60  of
 the laws of 2016, is amended to read as follows:

 S. 2009--A                         157                        A. 3009--A
 
   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 [seventeen] EIGHTEEN.  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  FF  of  chapter  60 of the laws of 2016, 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 [seventeen] EIGHTEEN.  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 FF of chapter
 60 of the laws of 2016, 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 [sixteen] SEVENTEEN, 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 FF of chapter 60 of the
 laws of 2016, 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,  [2017]  2018;  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

 S. 2009--A                         158                        A. 3009--A
 
 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  FF of chapter 60 of the laws of 2016, 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, [2017] 2018; 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
 FF of chapter 60 of the laws of 2016, 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

 S. 2009--A                         159                        A. 3009--A
 
 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 [seventeen]  EIGHTEEN,  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
 [seventeen] EIGHTEEN, such payment shall  be  seven-tenths  of  one  per
 centum of such pools.
   § 10. This act shall take effect immediately.
 
                                  PART PP
 
   Section  1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi-
 sion b of section 1612 of the tax law, as amended by section 1  of  part
 EE of chapter 60 of the laws of 2016, is amended to read as follows:
   (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
 agraph,  when  a  vendor track, is located in Sullivan county and within
 sixty miles from any gaming facility in a contiguous state  such  vendor
 fee  shall, for a period of [nine] TEN years commencing April first, two
 thousand eight, be at a rate of forty-one percent of the  total  revenue
 wagered  at  the  vendor  track after payout for prizes pursuant to this
 chapter, after which time such rate shall be as for all tracks in clause
 (C) of this subparagraph.
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 1, 2017.
 
                                  PART QQ
 
   Section  1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi-
 sion b of section 1612 of the tax law, as separately amended by  section
 1 of part GG and section 2 of part SS of chapter 60 of the laws of 2016,
 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 state racing and wagering  board,

 S. 2009--A                         160                        A. 3009--A

 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  nine-
 teen  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 convention  and  exhibition  space
 requiring a minimum capital investment of three hundred million dollars.
 Except for tracks having less than one thousand one hundred video gaming
 machines,  and  except for a vendor track located west of State Route 14
 from Sodus Point to the Pennsylvania border within New York, and  except
 for  Aqueduct  racetrack each track operator shall be required to co-in-
 vest 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 peri-
 od  may be carried over into subsequent years ending before April first,
 two thousand [seventeen] EIGHTEEN. Any amount attributable to a  capital
 expenditure  approved  prior  to  April  first, two thousand [seventeen]
 EIGHTEEN and completed before April first, two thousand [nineteen] TWEN-
 TY; or approved prior to April first, two thousand [twenty-one]  TWENTY-
 TWO  and completed before April first, two thousand [twenty-three] TWEN-
 TY-FOUR for a vendor track located west of State  Route  14  from  Sodus
 Point  to  the Pennsylvania border within 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 division prior to April first, two
 thousand  [seventeen]  EIGHTEEN  and completed prior to April first, two
 thousand [nineteen] TWENTY, exceed the vendor track's cumulative capital
 award during the five year  period  ending  April  first,  two  thousand
 [seventeen]  EIGHTEEN,  the vendor shall continue to receive the capital
 award after April first, two thousand [seventeen]  EIGHTEEN  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 capital award under this section. Any opera-
 tor 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 depreciation of the  capital  improvement  in
 accordance  with  generally  accepted accounting principles, shall reim-
 burse 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 thousand [seventeen] EIGHTEEN  shall
 be deposited into the state lottery fund for education aid; and
   § 2. This act shall take effect immediately.
 
                                  PART RR

 S. 2009--A                         161                        A. 3009--A

   Section  1.  Paragraph  c  of  subdivision 3 of section 97-nnnn of the
 state finance law, as added by chapter 174  of  the  laws  of  2013,  is
 amended to read as follows:
   c.  ten  percent  of  the  moneys  in  such fund, as attributable to a
 specific licensed gaming facility, shall be appropriated or  transferred
 from  the  commercial  gaming  revenue  fund  among  counties within the
 region, as defined by section one thousand  three  hundred  ten  of  the
 racing, pari-mutuel wagering and breeding law, hosting said facility for
 the  purpose  of  real property tax relief and for education assistance.
 Such distribution shall be made among  the  counties  on  a  per  capita
 basis,  subtracting  the  population  of  host  municipality and county.
 PROVIDED, HOWEVER, SUCH AMOUNT SHALL BE  REDUCED  BY  ONE  MILLION  FOUR
 HUNDRED  THOUSAND DOLLARS IN STATE FISCAL YEAR TWO THOUSAND SEVENTEEN --
 TWO THOUSAND EIGHTEEN AND BY ONE MILLION  FIVE  HUNDRED  FIFTY  THOUSAND
 DOLLARS EVERY YEAR THEREAFTER. SUCH FUNDS ATTRIBUTABLE TO THIS REDUCTION
 SHALL  BE  TRANSFERRED  TO  THE  GENERAL FUND AND THE REDUCTION SHALL BE
 DISTRIBUTED AMONG SUCH ELIGIBLE COUNTIES PROPORTIONAL TO TOTAL  DISTRIB-
 UTIONS DURING THE FISCAL YEAR.
   §  2.  Subdivision  3  of  section  99-h  of the state finance law, as
 amended by chapter 174 of the laws  of  2013,  is  amended  to  read  as
 follows:
   3.  Moneys of the account, following the segregation of appropriations
 enacted by the legislature, shall be available  for  purposes  including
 but  not limited to: (a) reimbursements or payments to municipal govern-
 ments that host tribal casinos pursuant to a  tribal-state  compact  for
 costs  incurred  in connection with services provided to such casinos or
 arising as a result thereof, for economic development opportunities  and
 job expansion programs authorized by the executive law; provided, howev-
 er,  that  for  any  gaming facility located in the city of Buffalo, the
 city of Buffalo shall receive a minimum of twenty-five  percent  of  the
 negotiated percentage of the net drop from electronic gaming devices the
 state  receives  pursuant  to the compact, and provided further that for
 any gaming facility located in the city  of  Niagara  Falls,  county  of
 Niagara a minimum of twenty-five percent of the negotiated percentage of
 the  net drop from electronic gaming devices the state receives pursuant
 to the compact shall be distributed in accordance with subdivision  four
 of  this  section,  and  provided  further  that for any gaming facility
 located in the county or counties of Cattaraugus, Chautauqua or  Allega-
 ny,  the  municipal  governments of the state hosting the facility shall
 collectively receive a minimum of twenty-five percent of the  negotiated
 percentage  of  the  net  drop  from electronic gaming devices the state
 receives pursuant to the compact; and provided further that pursuant  to
 chapter  five hundred ninety of the laws of two thousand four, a minimum
 of twenty-five percent of the revenues received by the state pursuant to
 the state's compact with the St. Regis Mohawk tribe shall be made avail-
 able to the counties of Franklin and St. Lawrence, and affected towns in
 such counties. Each such county and its  affected  towns  shall  receive
 fifty  percent  of  the moneys made available by the state; and provided
 further that the state shall annually make twenty-five  percent  of  the
 negotiated  percentage of the net drop from all gaming devices the state
 actually receives pursuant to the Oneida Settlement Agreement  confirmed
 by  section  eleven  of  the executive law as available to the county of
 Oneida, and a sum of three and one-half million dollars to the county of
 Madison. Additionally, the state shall distribute for a period of  nine-
 teen and one-quarter years, an additional annual sum of two and one-half
 million  dollars to the county of Oneida.  Additionally, the state shall

 S. 2009--A                         162                        A. 3009--A
 
 distribute the one-time eleven million dollar payment  received  by  the
 state  pursuant  to such agreement with the Oneida Nation of New York to
 the county of Madison by wire transfer upon receipt of such  payment  by
 the  state;  and  (b)  support  and  services  of treatment programs for
 persons suffering from gambling addictions.  Moneys not  segregated  for
 such  purposes  shall be transferred to the general fund for the support
 of government during the fiscal year in which they are  received.  ADDI-
 TIONALLY, THE STATE SHALL DISTRIBUTE AN ADDITIONAL ANNUAL SUM OF TWO AND
 ONE-QUARTER  MILLION  DOLLARS  TO A COUNTY IN WHICH A GAMING FACILITY IS
 LOCATED BUT DOES NOT RECEIVE A PERCENT OF THE NEGOTIATED  PERCENTAGE  OF
 THE  NET  DROP  FROM  GAMING  DEVICES  THE  STATE RECEIVES PURSUANT TO A
 COMPACT.
   § 3. Subdivision 3-a of section 99-h of  the  state  finance  law,  as
 amended  by  section  4 of part EE of chapter 59 of the laws of 2014, is
 amended to read as follows:
   3-a. Ten percent of any of the funds actually received  by  the  state
 pursuant to the tribal-state compacts and agreements described in subdi-
 vision  two of this section prior to the transfer of unsegregated moneys
 to the general fund required by such subdivision, shall  be  distributed
 to  counties  in  each  respective exclusivity zone provided they do not
 otherwise receive a share of said revenues  pursuant  to  this  section.
 Such  distribution  shall  be  made  among such counties on a per capita
 basis, excluding the population of  any  municipality  that  receives  a
 distribution  pursuant  to  subdivision three of this section. PROVIDED,
 HOWEVER, SUCH AMOUNT SHALL BE REDUCED BY SIX HUNDRED THOUSAND DOLLARS IN
 STATE FISCAL YEAR TWO THOUSAND SEVENTEEN -- TWO THOUSAND EIGHTEEN AND BY
 FIVE HUNDRED THOUSAND DOLLARS EVERY YEAR THEREAFTER. THE REDUCTION SHALL
 BE DISTRIBUTED  AMONG  SUCH  ELIGIBLE  COUNTIES  PROPORTIONAL  TO  TOTAL
 DISTRIBUTIONS DURING THE FISCAL YEAR.
   § 4. Paragraph b of subdivision 2 of section 54-l of the state finance
 law,  as  amended  by  section  1 of part X of chapter 55 of the laws of
 2014, is amended to read as follows:
   b. Within the amounts appropriated therefor,  eligible  municipalities
 shall  receive  an  amount  equal  to  seventy  percent of the state aid
 payment received in the state fiscal year commencing  April  first,  two
 thousand  eight  from  an  appropriation  for aid to municipalities with
 video lottery gaming facilities.  PROVIDED, HOWEVER, SUCH  AMOUNT  SHALL
 BE  REDUCED  BY  TWO  HUNDRED FIFTY THOUSAND DOLLARS IN THE STATE FISCAL
 YEAR COMMENCING APRIL FIRST, TWO THOUSAND SEVENTEEN AND BY  TWO  HUNDRED
 THOUSAND DOLLARS EVERY YEAR THEREAFTER. SUCH REDUCTION SHALL BE DISTRIB-
 UTED   AMONG  SUCH  ELIGIBLE  MUNICIPALITIES  PROPORTIONAL  TO  PAYMENTS
 RECEIVED BY SUCH  ELIGIBLE  MUNICIPALITIES  IN  THE  STATE  FISCAL  YEAR
 COMMENCING APRIL FIRST, TWO THOUSAND SIXTEEN.
   §  5. This act shall take effect April 1, 2017 and shall expire and be
 deemed repealed March 31, 2020 notwithstanding section 2 of chapter  747
 of the laws of 2006, as amended.
   § 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.

 S. 2009--A                         163                        A. 3009--A
 
   § 3. This act shall take effect immediately  provided,  however,  that
 the applicable effective date of Parts A through RR 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
 ________________________________________________________________________
 
                                  3009--B
 
                           I N  A S S E M B L Y
 
                             January 23, 2017
                                ___________
 
 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 recommit-
   ted to said committee

 AN ACT intentionally omitted (Part A); intentionally omitted  (Part  B);
   to  amend  the  tax law and the administrative code of the city of New
   York, in relation to the school tax reduction credit for residents  of
   a city with a population of one million or more; and to repeal section
   54-f of the state finance law relating thereto (Part C); intentionally
   omitted  (Part  D);  intentionally omitted (Part E); to amend the real
   property tax law, in relation to authorizing partial payments of prop-
   erty taxes (Part F); intentionally  omitted  (Part  G);  intentionally
   omitted  (Part  H); to amend chapter 540 of the laws of 1992, amending
   the real property tax law relating to oil and gas charges, in relation
   to the effectiveness thereof (Part I); to amend the state finance law,
   in relation to the veterans' home assistance  fund  (Part  J);  inten-
   tionally  omitted  (Part K); to amend the economic development law, in
   relation to the employee training incentive program (Part L); to amend
   the tax law, in relation to extending the empire state film production
   credit and empire state film post production credit  for  three  years
   (Part  M);  to  amend  the labor law and the tax law, in relation to a
   program to provide tax incentives  for  employers  employing  at  risk
   youth (Subpart A); to amend the labor law, in relation to establishing
   the  empire  state  apprenticeship tax credit program and granting the
   commissioner of the department of labor the power to  administer  such
   program; to amend the tax law, in relation to the empire state appren-
   ticeship  tax  credit  (Subpart  B) (Part N); to amend the tax law, in
   relation to extending  the  alternative  fuels  and  electric  vehicle
   recharging  property  credit for five years (Part O); to amend the tax
   law, in relation to the investment tax credit (Part P); to  amend  the
   tax law, in relation to the treatment of single member limited liabil-
   ity companies that are disregarded entities in determining eligibility
   for tax credits (Part Q); intentionally omitted (Part R); to amend the
   tax  law  and  the  administrative  code  of  the city of New York, in
   relation to permanently extending the high income charitable  contrib-
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12574-06-7

 A. 3009--B                          2
 
   ution deduction limitation (Part S); to amend the tax law, in relation
   to  increasing  the  child  and dependent care tax credit (Part T); to
   amend the tax law, in relation to the financial institution data match
   system for state tax collection purposes (Part U); intentionally omit-
   ted  (Part  V); intentionally omitted (Part W); to amend chapter 59 of
   the laws of 2013, amending the tax law relating to serving  an  income
   execution  with  respect  to  individual  tax debtors without filing a
   warrant, in relation to extending the provisions  authorizing  service
   of  income  executions  on  individual  tax  debtors  without filing a
   warrant (Part X); to amend the tax law, in relation to the taxation of
   S corporations; and to repeal certain provisions of such law  relating
   thereto  (Part Y); to amend the tax law, in relation to the definition
   of New York source income (Part Z); to amend the tax law, in  relation
   to  closing the nonresident partnership asset sale loophole (Part AA);
   to amend the tax law, in relation to requiring  marketplace  providers
   to  collect  sales tax (Part BB); to amend the tax law, in relation to
   closing the existing tax loopholes for  transactions  between  related
   entities  under article 28 and pursuant to the authority of article 29
   of such law (Part CC); to amend the tax law, in relation to clarifying
   the imposition of sales tax on gas  service  or  electric  service  of
   whatever nature (Part DD); to amend the tax law and the county law, in
   relation to the imposition of a surcharge on prepaid wireless communi-
   cations  service and devices (Part EE); to amend the public health law
   and the education law, in relation to tobacco products,  herbal  ciga-
   rettes,  and  vapor products; and to amend the tax law, in relation to
   imposing a tax on vapor  products  (Part  FF);  intentionally  omitted
   (Part  GG);  intentionally omitted (Part HH); to amend the tax law, in
   relation to the imposition of a tax on cigars under article 20 thereof
   (Part II); to amend the tax law, in relation to the  definition  of  a
   conveyance  for real estate transfer taxes (Part JJ); to amend the tax
   law, in relation to the additional real estate transfer tax (Part KK);
   intentionally omitted (Part LL); to amend the executive  law  and  the
   general  municipal  law, in relation to licensing for certain games of
   chance (Part MM); to amend the racing, pari-mutuel wagering and breed-
   ing law, in relation to allowing for the reprivatization of NYRA and a
   reduction in winter racing days (Part NN); to amend the racing,  pari-
   mutuel  wagering  and breeding law, in relation to licenses for simul-
   cast 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  breed-
   ing 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 OO); to amend
   the tax law, in relation to vendor fees paid to  vendor  tracks  (Part
   PP);  to  amend  the  tax law, in relation to capital awards to vendor
   tracks (Part QQ); intentionally omitted (Part RR); to  amend  the  tax
   law,  in  relation  to the business income base rate and expanding the
   small business subtraction modification (Part SS); to  amend  the  tax
   law, in relation to income tax reform (Part TT); to amend the tax law,
   in relation to increasing the amount of certain investment tax credits
   (Part  UU);  to  amend  the  economic  development law, in relation to
   excelsior research and development tax credits (Part VV); to amend the

 A. 3009--B                          3
 
   economic development law, in relation to eligibility to participate in
   the excelsior jobs program  (Part  WW);  to  amend  the  tax  law,  in
   relation  to the earned income credit (Part XX); to amend the tax law,
   in  relation to providing a tax credit for universal visitability; and
   providing for the repeal of such provisions upon the expiration there-
   of (Part YY); intentionally omitted (Part ZZ); to amend  the  tax  law
   and  the  economic development law, in relation to the creation of the
   empire state music production credit  and  the  empire  state  digital
   gaming  media  production  credit; to repeal subdivision 11 of section
   352 of the economic development law relating  thereto;  and  providing
   for  the  repeal  of  certain provisions upon expiration thereof (Part
   AAA); to amend the real property tax law and the tax law, in  relation
   to  removing references to the school tax relief credit; and to repeal
   certain provisions of such laws relating thereto (Part BBB); to  amend
   the  private  housing  finance  law,  in  relation to the provision of
   rental assistance for low income elderly families, and  to  amend  the
   administrative code of the city of New York, in relation to imposing a
   tax  on  conveyances  or  transfers of residential real property whose
   consideration is greater than two million dollars (Part CCC); to amend
   the tax law, in relation to a credit for donations to a food  bank  or
   other  emergency food program by New York state farmers (Part DDD); to
   amend the tax law, in  relation  to  establishing  an  education  loan
   interest  deduction  credit  (Part  EEE);  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  agricul-
   ture  and rural jobs fund (Part FFF); to amend the racing, pari-mutuel
   wagering and breeding  law  and  the  workers'  compensation  law,  in
   relation  to  the New York Jockey Injury Compensation Fund, Inc. (Part
   GGG); and to amend the tax law, in relation to the operation of  video
   lottery  terminals at Aqueduct racetrack; and providing for the repeal
   of certain provisions upon expiration thereof (Part HHH)
 
   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 2017-2018
 state fiscal year. Each component is  wholly  contained  within  a  Part
 identified  as  Parts A through HHH. 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
 
                           Intentionally Omitted

 A. 3009--B                          4
 
                                  PART C
 
   Section 1. Section 54-f of the state finance law is REPEALED.
   §  2.  Subsection  (ggg)  of  section  606 of the tax law, as added by
 section 1 of part E of chapter 60 of the laws of 2016, and as relettered
 by section 1 of part A of chapter 73 of the laws of 2016, is amended  to
 read as follows:
   (ggg) School tax reduction credit for residents of a city with a popu-
 lation over one million. (1) For taxable years beginning after two thou-
 sand  fifteen, a school tax reduction credit shall be allowed to a resi-
 dent individual of the state  who  is  a  resident  of  a  city  with  a
 population  over  one  million,  as  provided below. The credit shall be
 allowed against the taxes authorized by  this  article  reduced  by  the
 credits  permitted  by this article. If the credit exceeds the tax as so
 reduced, 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
 will  be  paid thereon. For purposes of this subsection, no credit shall
 be granted to an individual with  respect  to  whom  a  deduction  under
 subsection  (c) of section one hundred fifty-one of the internal revenue
 code is allowable to another taxpayer for the taxable year.
   (2) The amount of the credit under this [paragraph]  SUBSECTION  shall
 be  determined  based  upon the taxpayer's income as defined in subpara-
 graph (ii) of paragraph (b) of subdivision four of section four  hundred
 twenty-five of the real property tax law.
   (3)  For  TAXABLE  YEARS BEGINNING IN TWO THOUSAND SIXTEEN, THE CREDIT
 SHALL BE DETERMINED AS PROVIDED IN THIS PARAGRAPH, PROVIDED THAT FOR the
 purposes of this paragraph, any taxpayer under subparagraphs (A) and (B)
 of this paragraph with income of more than two  hundred  fifty  thousand
 dollars shall not receive a credit.
   (A) Married individuals filing joint returns and surviving spouses. In
 the  case of married individuals who make a single return jointly and of
 a surviving spouse, the credit shall be one hundred twenty-five dollars.
   (B) All others. In the case of an unmarried individual, a  head  of  a
 household  or  a married individual filing a separate return, the credit
 shall be sixty-two dollars and fifty cents.
   (4) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SIXTEEN, THE CREDIT
 SHALL EQUAL THE "FIXED" AMOUNT  PROVIDED  BY  PARAGRAPH  (4-A)  OF  THIS
 SUBSECTION  PLUS THE "RATE REDUCTION" AMOUNT PROVIDED BY PARAGRAPH (4-B)
 OF THIS SUBSECTION.
   (4-A) THE "FIXED" AMOUNT OF THE CREDIT SHALL BE DETERMINED AS PROVIDED
 IN THIS PARAGRAPH, PROVIDED THAT ANY TAXPAYER WITH INCOME OF  MORE  THAN
 TWO HUNDRED FIFTY THOUSAND DOLLARS SHALL NOT RECEIVE SUCH AMOUNT.
   (A) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES. IN
 THE  CASE OF MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND OF
 A SURVIVING SPOUSE, THE "FIXED"  AMOUNT  OF  THE  CREDIT  SHALL  BE  ONE
 HUNDRED TWENTY-FIVE DOLLARS.
   (B)  ALL  OTHERS.  IN THE CASE OF AN UNMARRIED INDIVIDUAL, A HEAD OF A
 HOUSEHOLD OR A MARRIED INDIVIDUAL FILING A SEPARATE RETURN, THE  "FIXED"
 AMOUNT OF THE CREDIT SHALL BE SIXTY-TWO DOLLARS AND FIFTY CENTS.
   (4-B) THE "RATE REDUCTION" AMOUNT OF THE CREDIT SHALL BE DETERMINED AS
 PROVIDED  IN  THIS  PARAGRAPH, PROVIDED THAT ANY TAXPAYER WITH INCOME OF
 MORE THAN FIVE HUNDRED THOUSAND DOLLARS SHALL NOT RECEIVE SUCH AMOUNT.
   (A) FOR MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND FOR A
 SURVIVING SPOUSE:

 A. 3009--B                          5
 
 IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
 NOT OVER $21,600                       0.171% OF THE CITY TAXABLE INCOME
 OVER $21,600 BUT NOT OVER $500,000     $37 PLUS 0.228% OF EXCESS OVER
                                          $21,600
 OVER $500,000                              NOT APPLICABLE
   (B) FOR A HEAD OF HOUSEHOLD:
 IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
 NOT OVER $14,400                       0.171% OF THE CITY TAXABLE INCOME
 OVER $14,400 BUT NOT OVER $500,000     $25 PLUS 0.228% OF EXCESS OVER
                                          $14,400
 OVER $500,000                              NOT APPLICABLE
   (C) FOR AN UNMARRIED INDIVIDUAL OR A MARRIED INDIVIDUAL FILING
 A SEPARATE RETURN:
 IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
 NOT OVER $12,000                       0.171% OF THE CITY TAXABLE INCOME
 OVER $12,000 BUT NOT OVER $500,000     $21 PLUS 0.228% OF EXCESS OVER
                                          $12,000
 OVER $500,000                              NOT APPLICABLE
   [(3)] (5) Part-year residents. If a taxpayer changes status during the
 taxable  year from resident to nonresident, or from nonresident to resi-
 dent, the school tax reduction  credit  authorized  by  this  subsection
 shall  be  prorated  according  to the number of months in the period of
 residence.
   § 3. Paragraphs 1, 2 and 3 of subsection (a) of section  1304  of  the
 tax  law, as amended by section 2 of part B of chapter 59 of the laws of
 2015, are amended to read as follows:
   (1) Resident married individuals filing  joint  returns  and  resident
 surviving  spouses.  The tax under this section for each taxable year on
 the city taxable income of every city resident  married  individual  who
 makes  a  single  return jointly with his or her spouse under subsection
 (b) of section thirteen hundred six of this  article  and  on  the  city
 taxable  income  of every city resident surviving spouse shall be deter-
 mined in accordance with the following tables:
 
   (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $21,600                       2.7% OF THE CITY TAXABLE INCOME
 OVER $21,600 BUT NOT                   $583 PLUS 3.3% OF EXCESS
 OVER $45,000                             OVER $21,600
 OVER $45,000 BUT NOT                   $1,355 PLUS 3.35% OF EXCESS
 OVER $90,000                             OVER $45,000
 OVER $90,000                           $2,863 PLUS 3.4% OF EXCESS
                                           OVER $90,000

 (B) FOR TAXABLE YEAR BEGINNING AFTER TWO THOUSAND FOURTEEN
 AND BEFORE TWO THOUSAND SEVENTEEN:
 If the city taxable income is:         The tax is:
 Not over $21,600                       2.55% of the city taxable income
 Over $21,600 but not                   $551 plus 3.1% of excess
 over $45,000                             over $21,600
 Over $45,000 but not                   $1,276 plus 3.15% of excess
 over $90,000                             over $45,000
 Over $90,000 but not                   $2,694 plus 3.2% of excess
 over $500,000                            over $90,000
 Over $500,000                          $16,803 plus 3.4% of excess

 A. 3009--B                          6
 
                                          over $500,000

   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:
 If the city taxable income is:         The tax is:
 Not over $21,600                       2.55% of the city taxable income
 Over $21,600 but not                   $551 plus 3.1% of excess
 over $45,000                             over $21,600
 Over $45,000 but not                   $1,276 plus 3.15% of excess
 over $90,000                             over $45,000
 Over $90,000 but not                   $2,694 plus 3.2% of excess
 over $500,000                            over $90,000
 Over $500,000                          $15,814 plus 3.4% of excess
                                          over $500,000
 
   (2) Resident heads of households. The tax under this section for  each
 taxable year on the city taxable income of every city resident head of a
 household shall be determined in accordance with the following tables:
   (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $14,400                       2.7% OF THE CITY TAXABLE INCOME
 OVER $14,400 BUT NOT                   $389 PLUS 3.3% OF EXCESS
 OVER $30,000                             OVER $14,400
 OVER $30,000 BUT NOT                   $904 PLUS 3.35% OF EXCESS
 OVER $60,000                             OVER $30,000
 OVER $60,000                           $1,909 PLUS 3.4% OF EXCESS
                                          OVER $60,000

   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SIXTEEN:
 
 If the city taxable income is:         The tax is:
 Not over $14,400                       2.55% of the city taxable income
 Over $14,400 but not                   $367 plus 3.1% of excess
 over $30,000                             over $14,400
 Over $30,000 but not                   $851 plus 3.15% of excess
 over $60,000                             over $30,000
 Over $60,000 but not                   $1,796 plus 3.2% of excess
 over $500,000                            over $60,000
 Over $500,000                          $16,869 plus 3.4% of excess
                                          over $500,000
 
 [(B)] (C) For taxable years beginning after two thousand nine and before
 two thousand fifteen:

 If the city taxable income is:         The tax is:
 Not over $14,400                       2.55% of the city taxable income
 Over $14,400 but not                   $367 plus 3.1% of excess
 over $30,000                             over $14,400
 Over $30,000 but not                   $851 plus 3.15% of excess
 over $60,000                             over $30,000
 Over $60,000 but not                   $1,796 plus 3.2% of excess
 over $500,000                            over $60,000
 Over $500,000                          $15,876 plus 3.4% of excess

 A. 3009--B                          7
 
                                          Over $500,000
 
   (3)  Resident  unmarried  individuals,  resident  married  individuals
 filing separate returns and resident estates and trusts. The  tax  under
 this  section  for each taxable year on the city taxable income of every
 city resident individual who is not a city resident  married  individual
 who  makes  a  single  return  jointly  with  his  or  her  spouse under
 subsection (b) of section thirteen hundred six of this article or a city
 resident head of household or a city resident surviving spouse,  and  on
 the city taxable income of every city resident estate and trust shall be
 determined in accordance with the following tables:
 
   (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $12,000                       2.7% OF THE CITY TAXABLE INCOME
 OVER $12,000 BUT NOT                   $324 PLUS 3.3% OF EXCESS
 OVER $25,000                             OVER $12,000
 OVER $25,000 BUT NOT                   $753 PLUS 3.35% OF EXCESS
 OVER $50,000                             OVER $25,000
 OVER $50,000                           $1,591 PLUS 3.4% OF EXCESS
                                        OVER $50,000
 
   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SEVENTEEN:
 
 If the city taxable income is:         The tax is:
 Not over $12,000                       2.55% of the city taxable income
 Over $12,000 but not                   $306 plus 3.1% of excess
 over $25,000                             over $12,000
 Over $25,000 but not                   $709 plus 3.15% of excess
 over $50,000                             over $25,000
 Over $50,000 but not                   $1,497 plus 3.2% of excess
 over $500,000                          over $50,000
 Over $500,000                          $16,891 plus 3.4%
                                        of excess over $500,000
   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:
 
 If the city taxable income is:         The tax is:
 Not over $12,000                       2.55% of the city taxable income
 Over $12,000 but not                   $306 plus 3.1% of excess
 over $25,000                             over $12,000
 Over $25,000 but not                   $709 plus 3.15% of excess
 over $50,000                             over $25,000
 Over $50,000 but not                   $1,497 plus 3.2% of excess
 over $500,000                          over $50,000
 Over $500,000                          $15,897 plus 3.4%
                                        of excess over $500,000
   § 4. Paragraphs 1, 2 and 3 of subsection (a) of section 11-1701 of the
 administrative code of the city of New York, as amended by section 3  of
 part  B  of  chapter  59  of  the  laws  of 2015, are amended to read as
 follows:
   (1) Resident married individuals filing  joint  returns  and  resident
 surviving  spouses.  The tax under this section for each taxable year on
 the city taxable income of every city resident  married  individual  who

 A. 3009--B                          8
 
 makes  a  single return jointly with his or her spouse under subdivision
 (b) of section 11-1751 of this chapter and on the city taxable income of
 every city resident surviving spouse shall be determined  in  accordance
 with the following tables:
 
 (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $21,600                       2.7% OF THE CITY TAXABLE INCOME
 OVER $21,600 BUT NOT                   $583 PLUS 3.3% OF EXCESS
 OVER $45,000                           OVER $21,600
 OVER $45,000 BUT NOT                   $1,355 PLUS 3.35% OF EXCESS
 OVER $90,000                           OVER $45,000
 OVER $90,000                           $2,863 PLUS 3.4% OF EXCESS
                                        OVER $90,000
   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SEVENTEEN:
 
 If the city taxable income is:         The tax is:
 Not over $21,600                       2.55% of the city taxable income
 Over $21,600 but not                   $551 plus 3.1% of excess
 over $45,000                            over $21,600
 Over $45,000 but not                   $1,276 plus 3.15% of excess
 over $90,000                            over $45,000
 Over $90,000 but not                   $2,694 plus 3.2% of excess
 over $500,000                           over $90,000
 Over $500,000                          $16,803 plus 3.4% of excess
                                         over $500,000
   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:

 If the city taxable income is:         The tax is:
 Not over $21,600                       2.55% of the city taxable income
 Over $21,600 but not                   $551 plus 3.1% of excess
 over $45,000                            over $21,600
 Over $45,000 but not                   $1,276 plus 3.15% of excess
 over $90,000                            over $45,000
 Over $90,000 but not                   $2,694 plus 3.2% of excess
 over $500,000                           over $90,000
 Over $500,000                          $15,814 plus 3.4% of excess
                                         over $500,000
 
   (2) Resident heads of households. The tax under this section for  each
 taxable year on the city taxable income of every city resident head of a
 household shall be determined in accordance with the following tables:
   (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $14,400                       2.7% OF THE CITY TAXABLE INCOME
 OVER $14,400 BUT NOT                   $389 PLUS 3.3% OF EXCESS
 OVER $30,000                           OVER $14,400
 OVER $30,000 BUT NOT                   $904 PLUS 3.35% OF EXCESS
 OVER $60,000                           OVER $30,000
 OVER $60,000                           $1,909 PLUS 3.4% OF EXCESS
                                        OVER $60,000

 A. 3009--B                          9

   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SIXTEEN:
 
 If the city taxable income is:         The tax is:
 Not over $14,400                       2.55% of the city taxable income
 Over $14,400 but not                   $367 plus 3.1% of excess
 over $30,000                            over $14,400
 Over $30,000 but not                   $851 plus 3.15% of excess
 over $60,000                            over $30,000
 Over $60,000 but not                   $1,796 plus 3.2% of excess
 over $500,000                           over $60,000
 Over $500,000                          $16,869 plus 3.4% of excess
                                         over $500,000
 
   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:

 If the city taxable income is:         The tax is:
 Not over $14,400                       2.55% of the city taxable income
 Over $14,400 but not                   $367 plus 3.1% of excess
 over $30,000                            over $14,400
 Over $30,000 but not                   $851 plus 3.15% of excess
 over $60,000                            over $30,000
 Over $60,000 but not                   $1,796 plus 3.2% of excess
 over $500,000                           over $60,000
 Over $500,000                          $15,876 plus 3.4% of excess
                                         over $500,000
 
   (3)  Resident  unmarried  individuals,  resident  married  individuals
 filing  separate  returns and resident estates and trusts. The tax under
 this section for each taxable year on the city taxable income  of  every
 city  resident  individual  who  is not a married individual who makes a
 single return jointly with his or her spouse under  subdivision  (b)  of
 section  11-1751  of this chapter or a city resident head of a household
 or a city resident surviving spouse, and on the city taxable  income  of
 every  city  resident estate and trust shall be determined in accordance
 with the following tables:
 
 (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
 
 IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
 NOT OVER $12,000                       2.7% OF THE CITY TAXABLE INCOME
 OVER $12,000 BUT NOT                   $324 PLUS 3.3% OF EXCESS
 OVER $25,000                            OVER $12,000
 OVER $25,000 BUT NOT                   $753 PLUS 3.35% OF EXCESS
 OVER $50,000                            OVER $25,000
 OVER $50,000                           $1,591 PLUS 3.4% OF EXCESS
                                         OVER $50,000
   (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
 TWO THOUSAND SIXTEEN:
 If the city taxable income is:         The tax is:
 Not over $12,000                       2.55% of the city taxable income
 Over $12,000 but not                   $306 plus 3.1% of excess
 over $25,000                            over $12,000
 Over $25,000 but not                   $709 plus 3.15% of excess
 over $50,000                            over $25,000

 A. 3009--B                         10

 Over $50,000 but not                   $1,497 plus 3.2% of excess
 over $500,000                           over $50,000
 Over $500,000                          $16,891 plus 3.4% of excess
                                         over $500,000
 
   [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
 before two thousand fifteen:
 
 If the city taxable income is:         The tax is:
 Not over $12,000                       2.55% of the city taxable income
 Over $12,000 but not                   $306 plus 3.1% of excess
 over $25,000                            over $12,000
 Over $25,000 but not                   $709 plus 3.15% of excess
 over $50,000                            over $25,000
 Over $50,000 but not                   $1,497 plus 3.2% of excess
 over $500,000                           over $50,000
 Over $500,000                          $15,897 plus 3.4% of excess
                                         over $500,000
 
   § 5. Notwithstanding any provision of law to the contrary, the  method
 of  determining  the  amount  to  be deducted and withheld from wages on
 account of taxes imposed by or pursuant to the authority of  article  30
 of  the  tax law in connection with the implementation of the provisions
 of this act shall be prescribed by  the  commissioner  of  taxation  and
 finance with due consideration to the effect such withholding tables and
 methods would have on the receipt and amount of revenue. The commission-
 er  of  taxation  and  finance  shall adjust such withholding tables and
 methods in regard to taxable years beginning in 2017 and after  in  such
 manner  as  to  result,  so  far  as practicable, in withholding from an
 employee's wages an amount substantially equivalent to the  tax  reason-
 ably  estimated  to  be  due  for  such taxable years as a result of the
 provisions of this act. Provided, however, for tax year 2017  the  with-
 holding  tables  shall  reflect  as  accurately  as practicable the full
 amount of tax year 2017 liability so that such  amount  is  withheld  by
 December  31,  2017.  In carrying out his or her duties and responsibil-
 ities under this section, the commissioner of taxation and  finance  may
 prescribe  a  similar procedure with respect to the taxes required to be
 deducted and withheld by local  laws  imposing  taxes  pursuant  to  the
 authority  of  articles 30, 30-A and 30-B of the tax law, the provisions
 of any other law in  relation  to  such  a  procedure  to  the  contrary
 notwithstanding.
   § 6. 1. Notwithstanding any provision of law to the contrary, no addi-
 tion  to  tax  shall  be imposed for failure to pay the estimated tax in
 subsection (c) of section 685 of the tax  law  and  subdivision  (c)  of
 section  11-1785 of the administrative code of the city of New York with
 respect to any underpayment of a required installment due prior  to,  or
 within thirty days of, the effective date of this act to the extent that
 such  underpayment  was  created  or increased by the amendments made by
 this act, provided, however, that the taxpayer remits the amount of  any
 underpayment  prior  to  or with his or her next quarterly estimated tax
 payment.
   2. The commissioner of taxation and finance shall take steps to publi-
 cize the necessary adjustments to  estimated  tax  and,  to  the  extent
 reasonably possible, to inform the taxpayer of the tax liability changes
 made by this act.

 A. 3009--B                         11
 
   § 7. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2017.
 
                                  PART D
 
                           Intentionally Omitted
 
                                  PART E
 
                           Intentionally Omitted
 
                                  PART F
 
   Section  1.  Section  928-a  of the real property tax law, as added by
 chapter 680 of the laws of 1994, subdivision 1  as  further  amended  by
 subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010
 and  subdivision  2  as  amended  by chapter 199 of the laws of 1997, is
 amended to read as follows:
   §  928-a.  Partial  payment  of  taxes.  1.  (A)  Notwithstanding  the
 provisions  of any general or special law to the contrary, [the board of
 supervisors or the county legislature of any county  may  by  resolution
 authorize  the  collecting  officers  in  one  or more of the classes of
 municipal corporations described  herein]  EACH  COLLECTING  OFFICER  IS
 HEREBY  AUTHORIZED  to  accept  from  any  taxpayer  at any time partial
 payments for or on account  of  taxes,  special  ad  valorem  levies  or
 special  assessments  [in such amount or manner] and apply such payments
 on THE account [thereof in such manner as  may  be  prescribed  by  such
 resolution;  provided,  however,  that  such  resolution], FOLLOWING THE
 ADOPTION OF A RESOLUTION BY THE GOVERNING BODY OF THE  MUNICIPAL  CORPO-
 RATION  THAT  EMPLOYS  THE COLLECTING OFFICER ALLOWING PARTIAL PAYMENTS.
 SUCH RESOLUTION MAY LIMIT THE CONDITIONS UNDER  WHICH  PARTIAL  PAYMENTS
 WILL  BE  ACCEPTED,  IN WHICH CASE PARTIAL PAYMENTS SHALL BE ACCEPTED IN
 ACCORDANCE WITH THE CONDITIONS SET FORTH IN THE RESOLUTION.
   (B) SUCH RESOLUTION MAY REQUIRE A SERVICE CHARGE  NOT  TO  EXCEED  TEN
 DOLLARS  TO BE PAID WITH EACH PARTIAL PAYMENT. SUCH SERVICE CHARGE SHALL
 BELONG TO THE MUNICIPAL CORPORATION THAT EMPLOYS THE COLLECTING OFFICER.
   (C) WHERE A STATEMENT OF TAXES CONTAINS SEPARATE CHARGES FOR  SEPARATE
 PURPOSES, ANY PARTIAL PAYMENTS SHALL BE APPLIED PROPORTIONATELY THERETO.
   (D)  WHERE SCHOOL DISTRICT TAXES ARE PAYABLE TO THE COLLECTING OFFICER
 OF A CITY OR TOWN THAT HAS ACTED TO ALLOW PARTIAL PAYMENTS, THE  GOVERN-
 ING  BODY  OF THE SCHOOL DISTRICT MAY PASS A RESOLUTION ALLOWING PARTIAL
 PAYMENTS FOR SCHOOL DISTRICT PURPOSES. SUCH  RESOLUTION  MAY  LIMIT  THE
 CONDITIONS UNDER WHICH PARTIAL PAYMENTS MAY BE ACCEPTED.  WHERE A SCHOOL
 DISTRICT  HAS PASSED A RESOLUTION ALLOWING PARTIAL PAYMENTS THE COLLECT-
 ING OFFICER SHALL BE AUTHORIZED TO ACCEPT  PARTIAL  PAYMENTS  OF  SCHOOL
 DISTRICT  TAXES  UNDER  THE SAME CONDITIONS AS MAY APPLY TO CITY OR TOWN
 TAXES OR UNDER THE CONDITIONS SPECIFIED IN THE SCHOOL DISTRICT'S  RESOL-
 UTION.
   (E)  ANY  RESOLUTION ADOPTED PURSUANT TO THIS SECTION shall be adopted
 AT LEAST SIXTY DAYS prior to the preparation and  delivery  of  the  tax
 rolls  to  the appropriate collecting officers. A copy of any resolution
 [enacting, amending or  repealing  any  such  partial  payment  program]
 ADOPTED  PURSUANT TO THIS SECTION, OR AMENDING OR REPEALING A RESOLUTION
 ADOPTED PURSUANT TO THIS SECTION, shall be filed with  the  commissioner
 AND,  IN THE CASE OF A RESOLUTION ADOPTED BY A SCHOOL DISTRICT, WITH THE

 A. 3009--B                         12
 
 CITY OR TOWN CLERK, no later than thirty days after the adoption  there-
 of.
   2. [Such resolution shall apply to one or more of the following class-
 es  of  municipal corporations: (a) all towns within the county; (b) all
 cities for which the county enforces the collection of delinquent taxes;
 or (c) all villages for which the  county  enforces  the  collection  of
 delinquent taxes. If the resolution does not specify the class or class-
 es  of municipal corporations to which it applies, it shall be deemed to
 apply only to the towns in the county.
   3.] After any partial payment authorized pursuant to this section  has
 been  paid,  interest  and penalties shall be charged against the unpaid
 balance only. The acceptance of a partial payment by any official pursu-
 ant to this section shall not be deemed to affect any liens  and  powers
 of  any  [county]  MUNICIPAL  CORPORATION  conferred  in  any general or
 special act, but such rights and powers shall remain in full  force  and
 effect  to  enforce  collection of the unpaid balance of such tax or tax
 liens together with interest, penalties and other lawful charges.
   3. A COLLECTING OFFICER WHO IS AUTHORIZED TO ACCEPT  PARTIAL  PAYMENTS
 PURSUANT TO THIS SECTION MAY NOT DECLINE TO DO SO.
   4. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO AUTHORIZE A COLLECT-
 ING  OFFICER  TO ACCEPT A PARTIAL PAYMENT AFTER THE EXPIRATION OF HIS OR
 HER WARRANT, OR AT ANY OTHER TIME THAT SUCH COLLECTING  OFFICER  IS  NOT
 AUTHORIZED TO ACCEPT TAX PAYMENTS.
   5.  NOTHING  CONTAINED  HEREIN SHALL LIMIT THE ABILITY OF A COLLECTING
 OFFICER TO ACCEPT PARTIAL PAYMENTS OF TAXES AUTHORIZED UNDER  ANY  OTHER
 GENERAL OR SPECIAL LAW.
   § 2. This act shall take effect immediately.
 
                                  PART G
 
                           Intentionally Omitted

                                  PART H
 
                           Intentionally Omitted
 
                                  PART I
 
   Section  1. Section 2 of chapter 540 of the laws of 1992, amending the
 real property tax law relating to oil and gas  charges,  as  amended  by
 section  1  of  part  C of chapter 59 of the laws of 2014, is amended to
 read as follows:
   § 2. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after April 1, 1992; provided,
 however that any charges imposed by section 593 of the real property tax
 law  as  added  by section one of this act shall first be due for values
 for assessment rolls with tentative completion dates after July 1, 1992,
 and provided further, that this act  shall  remain  in  full  force  and
 effect  until  March  31,  [2018] 2021, at which time section 593 of the
 real property tax law as added by section  one  of  this  act  shall  be
 repealed.
   § 2. This act shall take effect immediately.
 
                                  PART J

 A. 3009--B                         13
 
   Section  1.  Subdivision  5 of section 81 of the state finance law, as
 added by chapter 432 of the laws of 2016, is amended to read as follows:
   5.  Moneys  shall be payable from the fund on the audit and warrant of
 the comptroller on vouchers approved and certified by  the  commissioner
 of health, for veterans' homes operated by the department of health, and
 by the [commissioner of education] CHANCELLOR OF THE STATE UNIVERSITY OF
 NEW YORK, for the veterans' home operated by the state university of New
 York.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after November 14, 2016.
 
                                  PART K
 
                           Intentionally Omitted
 
                                  PART L
 
   Section 1. Section 441 of the economic development law,  as  added  by
 section  1  of  part  O of chapter 59 of the laws of 2015, is amended to
 read as follows:
   § 441. Definitions. As used in this article, the following terms shall
 have the following meanings:
   1. "Approved provider" means an entity meeting such criteria as  shall
 be  established by the commissioner in rules and regulations promulgated
 pursuant to this article, that may provide eligible training to  employ-
 ees  of  a business entity participating in the employee training incen-
 tive program; provided that, for internship programs, the business enti-
 ty shall be an approved provider or an  approved  provider  in  contract
 with  such business entity. Such criteria shall ensure that any approved
 provider possess adequate credentials to provide the training  described
 in  an  application  by a business entity to the commissioner to partic-
 ipate in the employee training incentive program.
   2. "Commissioner" means the commissioner of economic development.
   3. "Eligible training" means (a)  training  provided  by  an  approved
 provider that is:
   (i) to upgrade, retrain or improve the productivity of employees;
   (ii)  provided  to  employees  [filling  net  new jobs, or to existing
 employees] in connection with a  significant  capital  investment  by  a
 participating business entity;
   (iii) determined by the commissioner to satisfy a business need on the
 part of a participating business entity;
   (iv)  not designed to train or upgrade skills as required by a federal
 or state entity;
   (v) not training the completion of which may result in the awarding of
 a license or certificate required by law in order to perform a job func-
 tion; and
   (vi) not culturally focused training; or
   (b) an internship program in  advanced  technology  OR  LIFE  SCIENCES
 approved by the commissioner and provided by an approved provider, on or
 after  August  first,  two  thousand  fifteen, to provide employment and
 experience opportunities for current  students,  recent  graduates,  and
 recent members of the armed forces.
   4.["Net new job" means a job created in this state that:
   (a) is new to the state;
   (b)  has  not  been  transferred from employment with another business
 located in this state through an acquisition, merger,  consolidation  or

 A. 3009--B                         14

 other  reorganization  of  businesses  or  the  acquisition of assets of
 another business, and has not been transferred from  employment  with  a
 related person in this state;
   (c) is either a full-time wage-paying job or equivalent to a full-time
 wage-paying job requiring at least thirty-five hours per week;
   (d) is filled for more than six months;
   (e) is filled by a person who has received eligible training; and
   (f) is comprised of tasks the performance of which required the person
 filling the job to undergo eligible training.] "LIFE SCIENCES" MEANS THE
 FIELD  OF  BIOTECHNOLOGY, PHARMACEUTICALS, BIOMEDICAL TECHNOLOGIES, LIFE
 SYSTEMS TECHNOLOGIES, HEALTH INFORMATICS, HEALTH ROBOTICS OR  BIOMEDICAL
 DEVICES. "LIFE SCIENCES COMPANY" IS A BUSINESS ENTITY OR AN ORGANIZATION
 OR  INSTITUTION  THAT DEVOTES THE MAJORITY OF ITS EFFORTS IN THE VARIOUS
 STAGES OF RESEARCH, DEVELOPMENT, TECHNOLOGY TRANSFER AND  COMMERCIALIZA-
 TION RELATED TO ANY LIFE SCIENCES FIELD.
   5.  "Significant capital investment" means a capital investment [of at
 least one million dollars] in new business processes or  equipment,  THE
 COST OF WHICH IS EQUAL TO OR EXCEEDS TEN DOLLARS FOR EVERY ONE DOLLAR OF
 TAX  CREDIT  ALLOWED  TO  AN ELIGIBLE BUSINESS ENTITY UNDER THIS PROGRAM
 PURSUANT TO SUBDIVISION FIFTY OF SECTION TWO HUNDRED TEN-B OR SUBSECTION
 (DDD) OF SECTION SIX HUNDRED SIX OF THE TAX LAW.
   6. "Strategic industry" means an industry in  this  state,  as  estab-
 lished  by  the commissioner in regulations promulgated pursuant to this
 article, based upon the following criteria:
   (a) shortages of workers trained to work within the industry;
   (b) technological disruption in the  industry,  requiring  significant
 capital investment for existing businesses to remain competitive;
   (c)  the  ability of businesses in the industry to relocate outside of
 the state in order to attract talent;
   (d) the potential to recruit minorities and women  to  be  trained  to
 work in the industry in which they are traditionally underrepresented;
   (e)  the  potential  to  create jobs in economically distressed areas,
 which shall be  based  on  criteria  indicative  of  economic  distress,
 including poverty rates, numbers of persons receiving public assistance,
 and unemployment rates; or
   (f)  such  other criteria as shall be developed by the commissioner in
 consultation with the commissioner of labor.
   § 2.  Section 442 of the economic development law, as added by section
 1 of part O of chapter 59 of the laws of 2015, is  amended  to  read  as
 follows:
   §  442.  Eligibility criteria. In order to participate in the employee
 training incentive program, a business entity must satisfy the following
 criteria:
   1. (a) The business entity must operate in the state predominantly  in
 a strategic industry;
   (b) The business entity must demonstrate that it is obtaining eligible
 training from an approved provider;
   (c)  The  business  entity  must [create at least ten net new jobs or]
 make a significant capital investment in connection  with  the  eligible
 training; and
   (d)  The  business  entity  must  be  in  compliance  with  all worker
 protection and environmental laws  and  regulations.  In  addition,  the
 business  entity  may  not  owe  past  due state taxes or local property
 taxes; or
   2. (a) The business entity, or an approved provider in  contract  with
 such  business  entity,  must be approved by the commissioner to provide

 A. 3009--B                         15

 eligible training in the form of an internship program in advanced tech-
 nology OR AT A LIFE SCIENCES COMPANY pursuant to paragraph (b) of subdi-
 vision three of section four hundred forty-one of this article;
   (b) The business entity must be located in the state;
   (c)  The  business  entity  must  be  in  compliance  with  all worker
 protection and environmental laws  and  regulations.  In  addition,  the
 business  entity  must  not  have past due state taxes or local property
 taxes;
   (d) The internship program shall not displace regular employees;
   (e) The business entity must have less than one hundred employees; and
   (f) Participation of an individual in an internship program shall  not
 last more than a total of twelve months.
   § 3. This act shall take effect immediately.
 
                                  PART M

   Section  1.  Paragraph  5  of subdivision (a) of section 24 of the tax
 law, as amended by chapter 420 of the laws of 2016, is amended  to  read
 as follows:
   (5)  For  the  period two thousand fifteen through two thousand [nine-
 teen] TWENTY-TWO, in addition to the amount  of  credit  established  in
 paragraph  two of this subdivision, a taxpayer shall be allowed a credit
 equal to the product (or pro rata share of the product, in the case of a
 member of a partnership) of ten percent and the amount of wages or sala-
 ries paid to individuals directly employed (excluding those employed  as
 writers, directors, music directors, producers and performers, including
 background actors with no scripted lines) by a qualified film production
 company  or a qualified independent film production company for services
 performed by those individuals in one of the counties specified in  this
 paragraph  in  connection with a qualified film with a minimum budget of
 five hundred thousand dollars. For purposes of this  additional  credit,
 the services must be performed in one or more of the following counties:
 Albany,  Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua, Chemung,
 Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie,  Essex,
 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
 Livingston,  Madison,  Monroe,  Montgomery,  Niagara,  Oneida, Onondaga,
 Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer,  Saratoga,
 Schenectady,   Schoharie,   Schuyler,  Seneca,  St.  Lawrence,  Steuben,
 [Suffolk,] Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne,
 Wyoming, or Yates. The aggregate amount of tax credits allowed  pursuant
 to  the  authority  of this paragraph shall be five million dollars each
 year during the period two thousand fifteen through two thousand  [nine-
 teen]  TWENTY-TWO of the annual allocation made available to the program
 pursuant to paragraph four of subdivision  (e)  of  this  section.  Such
 aggregate  amount of credits shall be allocated by the governor's office
 for motion picture and television development among taxpayers  in  order
 of  priority based upon the date of filing an application for allocation
 of film production credit with such office. If the total amount of allo-
 cated credits applied for under this paragraph in any year  exceeds  the
 aggregate  amount  of tax credits allowed for such year under this para-
 graph, such excess shall be treated as having been applied  for  on  the
 first day of the next year. If the total amount of allocated tax credits
 applied  for  under this paragraph at the conclusion of any year is less
 than five million dollars, the remainder shall be treated as part of the
 annual allocation made available to the program  pursuant  to  paragraph
 four  of  subdivision  (e) of this section. However, in no event may the

 A. 3009--B                         16
 
 total of the credits allocated under  this  paragraph  and  the  credits
 allocated under paragraph [five] SIX of subdivision (a) of section thir-
 ty-one  of  this  article exceed five million dollars in any year during
 the  period two thousand fifteen through two thousand [nineteen] TWENTY-
 TWO.
   § 2. Paragraph 4 of subdivision (e) of section 24 of the tax  law,  as
 amended  by  section 1-a of part P of chapter 60 of the laws of 2016, is
 amended to read as follows:
   (4) Additional pool 2 - The aggregate amount of tax credits allowed in
 subdivision (a) of this section shall be increased by an additional four
 hundred twenty million dollars in each year starting in two thousand ten
 through two  thousand  [nineteen]  TWENTY-TWO  provided  however,  seven
 million  dollars  of  the  annual  allocation shall be available for the
 empire state film post production credit pursuant to section  thirty-one
 of  this  article in two thousand thirteen and two thousand fourteen and
 twenty-five million dollars of the annual allocation shall be  available
 for  the  empire  state  film post production credit pursuant to section
 thirty-one of this article in each year starting in two thousand fifteen
 through two thousand [nineteen] TWENTY-TWO. This amount shall  be  allo-
 cated  by the governor's office for motion picture and television devel-
 opment among taxpayers  in  accordance  with  subdivision  (a)  of  this
 section. If the commissioner of economic development determines that the
 aggregate amount of tax credits available from additional pool 2 for the
 empire  state film production tax credit have been previously allocated,
 and determines that the pending applications  from  eligible  applicants
 for the empire state film post production tax credit pursuant to section
 thirty-one  of  this  article  is insufficient to utilize the balance of
 unallocated empire state film post  production  tax  credits  from  such
 pool,  the  remainder,  after  such pending applications are considered,
 shall be made available for allocation in  the  empire  state  film  tax
 credit  pursuant  to  this  section,  subdivision  twenty of section two
 hundred ten-B and subsection (gg) of section six  hundred  six  of  this
 chapter.  Also,  if  the commissioner of economic development determines
 that the aggregate amount of tax credits available from additional  pool
 2  for the empire state film post production tax credit have been previ-
 ously allocated, and  determines  that  the  pending  applications  from
 eligible  applicants  for  the  empire  state film production tax credit
 pursuant to this section is insufficient to utilize the balance of unal-
 located film production tax credits from such pool, then all or part  of
 the  remainder, after such pending applications are considered, shall be
 made available for allocation for the empire state film post  production
 credit  pursuant  to this section, subdivision thirty-two of section two
 hundred ten-B and subsection (qq) of section six  hundred  six  of  this
 chapter.  The governor's office for motion picture and television devel-
 opment must notify taxpayers of their allocation year  and  include  the
 allocation  year on the certificate of tax credit. Taxpayers eligible to
 claim a credit must report the allocation year directly on their  empire
 state  film production credit tax form for each year a credit is claimed
 and include a copy of the certificate with their tax return. In the case
 of a qualified film that receives  funds  from  additional  pool  2,  no
 empire state film production credit shall be claimed before the later of
 the  taxable  year  the production of the qualified film is complete, or
 the taxable year immediately following the allocation year for which the
 film has been allocated credit  by  the  governor's  office  for  motion
 picture and television development.

 A. 3009--B                         17
 
   §  3.  Paragraph 6 of subdivision (a) of section 31 of the tax law, as
 amended by section 2 of part JJ of chapter 59 of the laws  of  2014,  is
 amended to read as follows:
   (6)  For  the  period two thousand fifteen through two thousand [nine-
 teen] TWENTY-TWO, in addition to the amount  of  credit  established  in
 paragraph  two  of  subdivision (a) of this section, a taxpayer shall be
 allowed a credit equal to the product (or pro rata share of the product,
 in the case of a member of a partnership) of ten percent and the  amount
 of  wages  or  salaries paid to individuals directly employed (excluding
 those employed as writers, directors,  music  directors,  producers  and
 performers,  including  background  actors  with  no scripted lines) for
 services performed by those individuals in one of the counties specified
 in this paragraph in connection with the post production work on a qual-
 ified film with a minimum budget of five hundred thousand dollars  at  a
 qualified post production facility in one of the counties listed in this
 paragraph.  For purposes of this additional credit, the services must be
 performed in one or more of the following  counties:  Albany,  Allegany,
 Broome,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung, Chenango, Clinton,
 Cortland, Delaware, Erie, Essex, Franklin,  Fulton,  Genesee,  Hamilton,
 Herkimer,  Jefferson,  Lewis,  Livingston,  Madison, Monroe, Montgomery,
 Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego,  Schenecta-
 dy, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins,
 Wayne,  Wyoming,  or  Yates. The aggregate amount of tax credits allowed
 pursuant to the authority  of  this  paragraph  shall  be  five  million
 dollars  each  year  during  the period two thousand fifteen through two
 thousand [nineteen] TWENTY-TWO of the annual allocation  made  available
 to  the  empire  state film post production credit pursuant to paragraph
 four of subdivision (e) of section twenty-four  of  this  article.  Such
 aggregate  amount of credits shall be allocated by the governor's office
 for motion picture and television development among taxpayers  in  order
 of  priority based upon the date of filing an application for allocation
 of post production credit with such office. If the total amount of allo-
 cated credits applied for under this paragraph in any year  exceeds  the
 aggregate  amount  of tax credits allowed for such year under this para-
 graph, such excess shall be treated as having been applied  for  on  the
 first day of the next year. If the total amount of allocated tax credits
 applied  for  under this paragraph at the conclusion of any year is less
 than five million dollars, the remainder shall be treated as part of the
 annual allocation for two  thousand  seventeen  made  available  to  the
 empire  state  film post production credit pursuant to paragraph four of
 subdivision (e) of section twenty-four of this article. However,  in  no
 event  may  the  total of the credits allocated under this paragraph and
 the credits allocated under paragraph five of subdivision (a) of section
 twenty-four of this article exceed five  million  dollars  in  any  year
 during  the  period two thousand fifteen through two thousand [nineteen]
 TWENTY-TWO.
   § 4. This act shall take effect immediately.

                                  PART N
 
   Section 1. This act enacts into law major  components  of  legislation
 which  relate  to  tax  incentives.   Each component is wholly contained
 within a Subpart identified as Subparts A and B. The effective date  for
 each  particular provision contained within such Subpart is set forth in
 the last section of such Subpart. Any provision in any section contained
 within a Subpart, including the effective date  of  the  Subpart,  which

 A. 3009--B                         18
 
 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 Subpart in which it is found. Section three
 of this act sets forth the general effective date of this act.
 
                                 SUBPART A

   Section  1.  The  section  heading and subdivision (a), paragraph 3 of
 subdivision (b), and subdivisions (d) and (e) of  section  25-a  of  the
 labor  law,  the section heading and subdivisions (d) and (e) as amended
 by section 1 of part AA of chapter 56 of the laws of  2015,  subdivision
 (a)  as  amended  by  section  1 of part VV of chapter 60 of the laws of
 2016, and paragraph 3 of subdivision (b) as added by section 2  of  part
 VV of chapter 60 of the laws of 2016, are amended to read as follows:
   Power  to administer the [urban] NEW YORK youth jobs program tax cred-
 it.
   (a) The commissioner is authorized to  establish  and  administer  the
 program  established  under  this  section  to provide tax incentives to
 employers for employing at risk youth in part-time and  full-time  posi-
 tions.  There  will  be  [five]  TEN  distinct  pools of tax incentives.
 Program one will cover tax incentives allocated for two thousand  twelve
 and  two  thousand thirteen. Program two will cover tax incentives allo-
 cated in two thousand fourteen. Program three will cover tax  incentives
 allocated  in  two  thousand fifteen. Program four will cover tax incen-
 tives allocated in two thousand sixteen. Program  five  will  cover  tax
 incentives  allocated in two thousand seventeen.  PROGRAM SIX WILL COVER
 TAX INCENTIVES ALLOCATED IN TWO THOUSAND EIGHTEEN.   PROGRAM SEVEN  WILL
 COVER  TAX INCENTIVES ALLOCATED IN TWO THOUSAND NINETEEN.  PROGRAM EIGHT
 WILL COVER TAX INCENTIVES ALLOCATED IN TWO  THOUSAND  TWENTY.    PROGRAM
 NINE  WILL  COVER  TAX  INCENTIVES ALLOCATED IN TWO THOUSAND TWENTY-ONE.
 PROGRAM TEN WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND  TWENTY-
 TWO.  The  commissioner  is  authorized  to  allocate  up to twenty-five
 million dollars of tax credits under program one, ten million dollars of
 tax credits under program two, twenty million  dollars  of  tax  credits
 under program three, and fifty million dollars of tax credits under each
 [of programs four and five] SUBSEQUENT PROGRAM.
   (3)  For  programs  four [and], five, SIX, SEVEN, EIGHT, NINE AND TEN,
 the tax credit under each program shall be allocated as  follows:    (i)
 [thirty] TWENTY-FIVE million dollars of tax credit for qualified employ-
 ees; [and] (ii) [twenty] FIFTEEN million dollars of tax credit for indi-
 viduals who meet all of the requirements for a qualified employee except
 for  the  residency requirement of subparagraph (ii) of paragraph two of
 this subdivision, which individuals shall be deemed to meet the residen-
 cy requirements of subparagraph (ii) of paragraph two of  this  subdivi-
 sion  if they reside in New York state; AND (III) TEN MILLION DOLLARS OF
 TAX CREDIT FOR THE EMPIRE STATE APPRENTICESHIP PROGRAM TAX CREDIT ESTAB-
 LISHED UNDER SECTION TWENTY-FIVE-C OF THE LABOR LAW.
   (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 Novem-
 ber  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

 A. 3009--B                         19

 program  four,  and  after  January first, two thousand seventeen but no
 later than November thirtieth, two thousand seventeen for program  five]
 OF  EACH  PROGRAM YEAR. 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, and on or after January first, two thousand  seventeen
 but  no  later  than  December  thirty-first, two thousand seventeen for
 program five] OF EACH PROGRAM YEAR.   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  AND
 MAY INCLUDE ON-THE-JOB TRAINING AND SKILL DEVELOPMENT OPPORTUNITIES SUCH
 EMPLOYER  CAN  PROVIDE TO THE QUALIFIED INDIVIDUAL. 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.
   (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 certificate of eligibility that establishes the  employer
 as  a  qualified  employer. The certificate of eligibility shall specify
 the maximum amount of tax credit that the employer will  be  allowed  to
 claim AND THE PROGRAM YEAR UNDER WHICH IT CAN BE CLAIMED.
   § 2. The subdivision heading 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:
   [Urban] NEW YORK youth jobs program tax credit.
   §  3.  The subsection heading 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:
   [Urban] NEW YORK youth jobs program tax credit.
   § 4. Clause (xxxiii) of subparagraph (B) of paragraph 1 of  subsection
 (i) of section 606 of the tax law, as amended by section 4 of part AA of
 chapter 56 of the laws of 2015, is amended to read as follows:
 (xxxiii) [Urban] NEW YORK youth      Amount of credit under
 jobs program tax credit              subdivision thirty-six
                                      of section two hundred ten-B
   §  5.  This  act shall take effect immediately; provided, however, the
 amendments to paragraph 3 of subdivision (b)  of  section  25-a  of  the
 labor  law  made by section one of this act shall apply to taxable years
 commencing on or after January 1, 2018.
 
                                 SUBPART B

 A. 3009--B                         20
 
   Section 1. The labor law is amended by adding a new  section  25-c  to
 read as follows:
   § 25-C. POWER TO ADMINISTER THE EMPIRE STATE APPRENTICESHIP TAX CREDIT
 PROGRAM.  (A) THE COMMISSIONER IS AUTHORIZED TO ESTABLISH AND ADMINISTER
 THE EMPIRE STATE APPRENTICESHIP TAX CREDIT PROGRAM TO PROVIDE TAX INCEN-
 TIVES  TO  QUALIFIED  AND  CERTIFIED   EMPLOYERS FOR EMPLOYING QUALIFIED
 APPRENTICES PURSUANT TO AN APPRENTICESHIP AGREEMENT REGISTERED WITH  THE
 DEPARTMENT PURSUANT TO PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT
 HUNDRED  ELEVEN  OF  THIS  CHAPTER.  THE  COMMISSIONER  IS AUTHORIZED TO
 PROVIDE TAX CREDITS TO BE ALLOCATED UP TO TEN  MILLION  DOLLARS  OF  TAX
 CREDITS  ANNUALLY,  BEGINNING  TAXABLE  YEAR  TWO  THOUSAND EIGHTEEN AND
 ENDING BEFORE TAXABLE YEAR TWO THOUSAND TWENTY-THREE PURSUANT TO SUBPAR-
 AGRAPH (III) OF PARAGRAPH THREE OF SUBDIVISION (B)  OF  SECTION  TWENTY-
 FIVE-A OF THIS ARTICLE. THOSE EMPLOYERS WHO ARE ELIGIBLE FOR A TAX CRED-
 IT  UNDER  THIS PROGRAM AND HIRE AN APPRENTICE WITHIN THIS TIMEFRAME ARE
 ELIGIBLE TO CONTINUE RECEIVING THIS TAX CREDIT UNTIL THE APPRENTICE  HAS
 COMPLETED  THE  APPRENTICESHIP  FOR  A PERIOD OF TIME NOT TO EXCEED FIVE
 YEARS.  ANY UNUSED ALLOCATION OF THE CREDIT SHALL BE MADE  AVAILABLE  IN
 EACH  OF  THE  SUBSEQUENT  TAXABLE  YEARS  FOR ALL ELIGIBLE YEARS OF THE
 APPRENTICESHIP ALLOWED UNDER SUBDIVISIONS (C) AND (D) OF  THIS  SECTION.
 ANY AMOUNT OF TAX CREDITS NOT AWARDED FOR A PARTICULAR YEAR IN YEARS TWO
 THOUSAND  EIGHTEEN  THROUGH  TWO  THOUSAND TWENTY-TWO MAY BE USED BY THE
 COMMISSIONER TO AWARD TAX CREDITS IN ANOTHER TAXABLE YEAR.
   (B) DEFINITIONS. (1) THE TERM  "APPRENTICESHIP  AGREEMENT"  MEANS  THE
 AGREEMENT AS DEFINED BY SECTION EIGHT HUNDRED SIXTEEN OF THIS CHAPTER.
   (2)  THE  TERM "QUALIFIED EMPLOYER" MEANS AN EMPLOYER THAT HAS ENTERED
 INTO A REGISTERED APPRENTICESHIP AGREEMENT. FOR  THE  PURPOSES  OF  THIS
 SECTION  A  "QUALIFIED EMPLOYER" SHALL NOT INCLUDE AN EMPLOYER THAT IS A
 CONTRACTOR OR SUBCONTRACTOR WHO IS  A  PARTNERSHIP,  FIRM,  CORPORATION,
 LIMITED  LIABILITY  COMPANY, ASSOCIATION OR OTHER LEGAL ENTITY PERMITTED
 BY LAW TO DO BUSINESS WITHIN THE STATE WHO ENGAGES  IN  CONSTRUCTION  AS
 DEFINED  IN  THIS  SECTION  AND  WHOSE APPRENTICESHIP AGREEMENT INCLUDES
 SKILLS RELATED TO THE CONSTRUCTION INDUSTRY.
   (3) FOR PURPOSES  OF  THIS  SECTION,  THE  TERM  "CONSTRUCTION"  MEANS
 CONSTRUCTING,  RECONSTRUCTING,  ALTERING, MAINTAINING, MOVING, REHABILI-
 TATING, REPAIRING, RENOVATING, FABRICATING, SERVICING, OR DEMOLITION  OF
 ANY  BUILDING,  STRUCTURE,  OR IMPROVEMENT, OR COMPONENT, OR RELATING TO
 THE EXCAVATION OF OR OTHER DEVELOPMENT OR IMPROVEMENT TO LAND.
   (4) THE TERM "CERTIFIED EMPLOYER" MEANS A QUALIFIED EMPLOYER THAT  HAS
 BEEN  CERTIFIED  AS  ELIGIBLE  BY THE COMMISSIONER TO PARTICIPATE IN THE
 EMPIRE STATE APPRENTICESHIP  TAX  CREDIT  PROGRAM  ESTABLISHED  IN  THIS
 SECTION.
   (5)  THE TERM "QUALIFIED APPRENTICE" MEANS AN INDIVIDUAL EMPLOYED IN A
 FULL TIME POSITION FOR AT LEAST SIX MONTHS OF A TAXABLE YEAR AND WHO HAS
 ENTERED INTO AN AGREEMENT WITH A QUALIFIED EMPLOYER PURSUANT TO  SECTION
 EIGHT HUNDRED SIXTEEN OF THIS CHAPTER.
   (6) THE TERM "DISADVANTAGED YOUTH" MEANS AN INDIVIDUAL:
   (I)  WHO IS BETWEEN THE AGE OF SIXTEEN AND TWENTY-FOUR WHEN THEY BEGIN
 THEIR APPRENTICESHIP; AND
   (II) WHO IS LOW-INCOME OR AT-RISK, AS THOSE TERMS ARE DEFINED  BY  THE
 COMMISSIONER.
   (7)  THE  TERM  "MENTOR" MEANS AN INDIVIDUAL WHO PROVIDES INSTRUCTION,
 GUIDANCE, AND SUPPORT TO THE APPRENTICE ON A  REGULAR  BASIS  THROUGHOUT
 THEIR  APPRENTICESHIP  UNTIL  THE COMPLETION OF THEIR APPRENTICESHIP AND
 FOR THE YEAR AFTER THEY COMPLETE THEIR APPRENTICESHIP AS THE  APPRENTICE
 SEEKS  EMPLOYMENT  IN THE FIELD OR INDUSTRY OF THEIR APPRENTICESHIP. THE

 A. 3009--B                         21
 
 GOAL OF THE MENTOR IS TO HELP TRAIN THE APPRENTICE IN HIS OR  HER  TRADE
 AND  TO HELP THE APPRENTICE SUCCESSFULLY COMPLETE THE APPRENTICESHIP AND
 TO SECURE AND RETAIN EMPLOYMENT.
   (C)  A  CERTIFIED  EMPLOYER  SHALL BE ENTITLED TO A TAX CREDIT AGAINST
 INCOME TAX FOR EACH QUALIFIED APPRENTICE FOR TAX YEAR EQUAL TO: (1)  THE
 LESSER OF TWO THOUSAND DOLLARS OR THE TOTAL AMOUNT OF WAGES PAID FOR THE
 FIRST  YEAR  OF  THE  APPRENTICESHIP;  (2)  THE LESSER OF THREE THOUSAND
 DOLLARS OR THE TOTAL AMOUNT OF WAGES PAID FOR THE  SECOND  YEAR  OF  THE
 APPRENTICESHIP; AND (3) THE LESSER OF FOUR THOUSAND DOLLARS OR THE TOTAL
 AMOUNT  OF  WAGES PAID FOR EACH OF THE THIRD, FOURTH, AND FIFTH YEARS OF
 THE APPRENTICESHIP.
   (D) (1) A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CREDIT IN LIEU
 OF THE CREDIT AS SPECIFIED IN SUBDIVISION (C) OF  THIS  SECTION  AGAINST
 INCOME  TAX  FOR EACH QUALIFIED APPRENTICE WHO IS CONSIDERED A DISADVAN-
 TAGED YOUTH FOR EACH TAX YEAR EQUAL TO: (A) THE LESSER OF FIVE  THOUSAND
 DOLLARS  OR  THE  TOTAL  AMOUNT  OF WAGES PAID FOR THE FIRST YEAR OF THE
 APPRENTICESHIP; (B) THE LESSER OF SIX  THOUSAND  DOLLARS  OR  THE  TOTAL
 AMOUNT  OF WAGES PAID FOR THE SECOND YEAR OF THE APPRENTICESHIP; AND (C)
 THE LESSER OF SEVEN THOUSAND DOLLARS OR THE TOTAL AMOUNT OF  WAGES  PAID
 FOR EACH OF THE THIRD, FOURTH, AND FIFTH YEARS OF THE APPRENTICESHIP. IF
 A  DISADVANTAGED  YOUTH BEGINS AN APPRENTICESHIP BEFORE THE AGE OF TWEN-
 TY-FIVE, A CERTIFIED EMPLOYER SHALL BE ELIGIBLE TO CONTINUE  TO  RECEIVE
 THE  TAX  CREDIT FOR WHICH THE EMPLOYER WAS CERTIFIED UNTIL SAID APPREN-
 TICE COMPLETES THE APPRENTICESHIP.
   (2) A CERTIFIED EMPLOYER SHALL BE ENTITLED TO AN ENHANCED  TAX  CREDIT
 IF  THE  EMPLOYER  CAN  SHOW  THAT THE APPRENTICE FOR WHICH THE EMPLOYER
 RECEIVED THE TAX CREDIT PURSUANT TO THIS SUBDIVISION IS BEING TRAINED IN
 HIS OR HER TRADE BY A MENTOR AS DEFINED IN THIS SECTION.   THE  ENHANCED
 CREDIT  SHALL BE AN ADDITIONAL FIVE HUNDRED DOLLARS FOR EACH YEAR OF THE
 APPRENTICESHIP IN ADDITION TO THE BASE  TAX  CREDIT  DESCRIBED  IN  THIS
 SUBDIVISION AND SUBDIVISION (C) OF THIS SECTION.
   (E)  TO  PARTICIPATE  IN THE PROGRAM ESTABLISHED UNDER THIS SECTION, A
 QUALIFIED EMPLOYER MUST SUBMIT AN APPLICATION (IN A FORM  PRESCRIBED  BY
 THE  COMMISSIONER) TO THE COMMISSIONER AFTER JANUARY FIRST, BUT NO LATER
 THAN NOVEMBER THIRTIETH OF EACH YEAR DURING TAXABLE YEARS THE CREDIT  IS
 ALLOCATED.    A  QUALIFIED  APPRENTICE MUST START EMPLOYMENT ON OR AFTER
 JANUARY FIRST BUT NO LATER THAN DECEMBER THIRTY-FIRST, OF THE  YEAR  FOR
 WHICH THE QUALIFIED EMPLOYER SEEKS THE TAX CREDIT.
   (F) AS PART OF SUCH APPLICATION, EACH QUALIFIED EMPLOYER MUST:
   (1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
 TAX  INFORMATION WITH THE DEPARTMENT. 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.
   (2)  ALLOW  THE  DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS
 AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE.
   (G) THE COMMISSIONER SHALL  ESTABLISH  GUIDELINES  AND  CRITERIA  THAT
 SPECIFY  REQUIREMENTS  FOR  QUALIFIED  EMPLOYERS  TO  PARTICIPATE IN THE
 PROGRAM INCLUDING CRITERIA FOR  CERTIFYING  QUALIFIED  APPRENTICES.  ANY
 REGULATIONS  THAT  THE  COMMISSIONER  DETERMINES  ARE  NECESSARY AND ARE
 CONSISTENT WITH THE PURPOSE OF THIS ARTICLE MAY BE ADOPTED ON  AN  EMER-
 GENCY  BASIS NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE
 ADMINISTRATIVE PROCEDURE ACT.
   (H)(I) IF, AFTER REVIEWING THE APPLICATION SUBMITTED  BY  A  QUALIFIED
 EMPLOYER,  THE  COMMISSIONER  DETERMINES THAT SUCH QUALIFIED EMPLOYER IS
 ELIGIBLE TO PARTICIPATE IN THE PROGRAM ESTABLISHED UNDER  THIS  SECTION,
 THE COMMISSIONER SHALL ISSUE THE QUALIFIED EMPLOYER A CERTIFICATE WITHIN

 A. 3009--B                         22
 
 NINETY DAYS OF APPLICATION OF ELIGIBILITY THAT ESTABLISHES THE QUALIFIED
 EMPLOYER  AS  A CERTIFIED EMPLOYER. THE CERTIFICATE OF ELIGIBILITY SHALL
 SPECIFY THE MAXIMUM AMOUNT OF TAX CREDIT  THAT  THE  CERTIFIED  EMPLOYER
 WILL BE ALLOWED TO CLAIM.
   (II)  FOR  EACH SUBSEQUENT ANNUAL APPLICATION SUBMITTED BY A QUALIFIED
 EMPLOYER WHO WAS CERTIFIED BY THE COMMISSIONER IN A PRIOR TAX YEAR,  THE
 COMMISSIONER  MAY CONSIDER THE FOLLOWING FACTORS WHEN DETERMINING IF THE
 QUALIFIED EMPLOYER SHOULD BE RE-CERTIFIED:
   (A) THE LENGTH  OF  THE  APPRENTICESHIP  AGREEMENT  THE  EMPLOYER  HAS
 ENTERED INTO;
   (B)  HOW  MANY  APPRENTICES  HAVE  GRADUATED  FROM  THE APPRENTICESHIP
 PROGRAM TO WHICH THE  QUALIFIED  APPRENTICE  EMPLOYED  BY  THE  EMPLOYER
 BELONGS;
   (C) HOW MANY APPRENTICES IN THE FIRST, SECOND, THIRD, FOURTH, OR FIFTH
 YEAR OF AN APPRENTICESHIP PROGRAM THE QUALIFIED EMPLOYER HAS HIRED; AND
   (D) ANY OTHER FACTORS THE COMMISSIONER DEEMS RELEVANT.
   (I)  A CERTIFIED EMPLOYER THAT EMPLOYS A QUALIFIED APPRENTICE PURSUANT
 TO AN APPRENTICESHIP AGREEMENT  AS  DEFINED  BY  SECTION  EIGHT  HUNDRED
 SIXTEEN  OF THIS ARTICLE THAT REQUIRES THE APPRENTICE TO BE TAUGHT TRADE
 OR CRAFT DIVISIONS BY MORE THAN ONE EMPLOYER SHALL BE ELIGIBLE  FOR  THE
 CREDIT BASED ON THE TOTAL NUMBER OF HOURS SUCH APPRENTICE IS EMPLOYED BY
 EACH  SUCH  EMPLOYER  IF  THE TOTAL NUMBER OF HOURS EMPLOYED EXCEEDS THE
 MINIMUM NUMBER OF HOURS REQUIRED TO BE A QUALIFIED APPRENTICESHIP  UNDER
 PARAGRAPH  FIVE OF SUBDIVISION (B) OF THIS SECTION, AS DETERMINED PURSU-
 ANT TO REGULATIONS OF THE DEPARTMENT.
   (J) THE COMMISSIONER  SHALL  ANNUALLY  PUBLISH  A  REPORT  WITHIN  ONE
 HUNDRED  EIGHTY  DAYS  OF  THE  CLOSE  OF THE TAX YEAR. SUCH REPORT MUST
 CONTAIN THE NAMES AND ADDRESSES  OF  ANY  CERTIFIED  EMPLOYER  ISSUED  A
 CERTIFICATE  OF  ELIGIBILITY  UNDER  THIS SECTION, THE MAXIMUM AMOUNT OF
 EMPIRE STATE APPRENTICESHIP TAX CREDIT ALLOWED TO THE CERTIFIED EMPLOYER
 AS SPECIFIED ON SUCH CERTIFICATE OF ELIGIBILITY, THE NUMBER OF EMPLOYERS
 WHO RECEIVED TAX CREDITS FOR EMPLOYING ONE OR MORE DISADVANTAGED YOUTHS,
 THE TOTAL NUMBER OF DISADVANTAGED YOUTHS  FOR  WHICH  SUCH  CREDITS  ARE
 AWARDED,  THE  NUMBER  OF  APPRENTICES  HIRED  BROKEN DOWN BY AGE, RACE,
 GENDER, AND HOW THEY MEET THE DEFINITION OF DISADVANTAGED AS DEFINED  IN
 PARAGRAPH  SIX  OF  SUBDIVISION (B) OF THIS SECTION, THE NUMBER OF TOTAL
 AND NEW CERTIFICATES GRANTED EACH YEAR, THE TOTAL DOLLAR AMOUNT OF CRED-
 ITS CLAIMED TO DATE, AND THE NUMBER OF YEARS CREDITS HAVE BEEN  RECEIVED
 FOR  INDIVIDUAL  APPRENTICES.    THE  COMMISSIONER SHALL INCLUDE IN SUCH
 REPORT RECOMMENDATIONS FOR LEGISLATIVE OR OTHER ACTION  TO  FURTHER  THE
 INTENT  AND  PURPOSE  OF  THE  EMPIRE  STATE  APPRENTICESHIP  TAX CREDIT
 PROGRAM.  THE ANNUAL REPORT SHALL BE ALIGNED WITH THE GOALS OF  THE  NEW
 YORK  STATE  WORKFORCE  INNOVATION AND OPPORTUNITY ACT FOUR YEAR COMBINE
 STATE PLAN WHERE APPROPRIATE.
   (K) THE COMMISSIONER SHALL PROMOTE, PUBLISH AND  DISSEMINATE  INFORMA-
 TION  CONCERNING  THE  EMPIRE  STATE APPRENTICESHIP TAX CREDIT AND OTHER
 AVAILABLE FUNDING, PARTICULARLY TARGETING INDUSTRIES AND FIELDS OF BUSI-
 NESS  NOT  CURRENTLY  TAKING  ADVANTAGE  OF  APPRENTICESHIPS,  EMPLOYERS
 ENGAGED  IN  DEMAND  OCCUPATIONS  OR  INDUSTRIES,  OR IN REGIONAL GROWTH
 SECTORS, INCLUDING THOSE IDENTIFIED BY THE  DEPARTMENT,  SUCH  AS  CLEAN
 ENERGY, HEALTH CARE, ADVANCED MANUFACTURING AND CONSERVATION, AND MINOR-
 ITY- AND WOMEN-OWNED BUSINESSES.
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 49 to read as follows:
   49. EMPIRE STATE APPRENTICESHIP TAX CREDIT. (A) A  TAXPAYER  THAT  HAS
 BEEN  CERTIFIED  BY  THE  COMMISSIONER  OF LABOR AS A CERTIFIED EMPLOYER

 A. 3009--B                         23
 
 PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL  BE  ALLOWED  A
 CREDIT  AGAINST  THE  TAX  IMPOSED  BY  THIS ARTICLE, FOR EACH QUALIFIED
 APPRENTICE, UP TO (I) TWO THOUSAND FIVE HUNDRED DOLLARS  FOR  THE  FIRST
 YEAR OF THE APPRENTICESHIP; (II) THREE THOUSAND FIVE HUNDRED DOLLARS FOR
 THE  SECOND YEAR OF THE APPRENTICESHIP; (III) FOUR THOUSAND FIVE HUNDRED
 DOLLARS FOR THE THIRD YEAR OF THE  APPRENTICESHIP;  (IV)  FOUR  THOUSAND
 FIVE  HUNDRED DOLLARS FOR THE FOURTH YEAR OF THE APPRENTICESHIP; AND (V)
 FOUR THOUSAND FIVE HUNDRED DOLLARS FOR THE FIFTH YEAR OF THE APPRENTICE-
 SHIP.  FOR PURPOSES OF THIS SUBDIVISION, THE TERM "QUALIFIED APPRENTICE"
 SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B)  OF  SECTION
 TWENTY-FIVE-C  OF  THE LABOR LAW. THE PORTION OF THE CREDIT DESCRIBED IN
 SUBPARAGRAPHS (I) THROUGH (V) OF THIS PARAGRAPH SHALL BE ALLOWED FOR THE
 TAXABLE YEARS IN WHICH THE WAGES ARE PAID TO THE QUALIFIED APPRENTICE.
   (B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY
 NOT REDUCE THE TAX DUE FOR THAT 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  SUBDI-
 VISION  FOR  ANY  TAXABLE  YEAR REDUCES THE TAX TO THAT AMOUNT OR IF THE
 TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED  DOLLAR  MINIMUM  AMOUNT,
 ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN THAT TAXABLE YEAR WILL 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 WILL BE PAID THEREON.
   (C) A TAXPAYER SHALL BE ENTITLED TO A TAX CREDIT, IN LIEU OF THE CRED-
 IT AS SPECIFIED IN SUBDIVISION (C) OF SECTION TWENTY-FIVE-C OF THE LABOR
 LAW,  AGAINST INCOME TAX FOR EACH QUALIFIED APPRENTICE WHO IS CONSIDERED
 A DISADVANTAGED YOUTH, PURSUANT TO SECTION TWENTY-FIVE-C  OF  THE  LABOR
 LAW,  FOR  EACH  TAX YEAR EQUAL TO: (I) THE LESSER OF FIVE THOUSAND FIVE
 HUNDRED DOLLARS OR THE TOTAL AMOUNT OF WAGES PAID FOR THE FIRST YEAR  OF
 THE APPRENTICESHIP; (II) THE LESSER OF SIX THOUSAND FIVE HUNDRED DOLLARS
 OF THE TOTAL AMOUNT OF WAGES PAID FOR THE SECOND YEAR OF THE APPRENTICE-
 SHIP; AND (III) THE LESSER OF SEVEN THOUSAND FIVE HUNDRED DOLLARS OR THE
 TOTAL  AMOUNT  OF  WAGES  PAID  FOR EACH OF THE THIRD, FOURTH, AND FIFTH
 YEARS OF THE APPRENTICESHIP.
   (D) THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO  ITS  TAX  RETURN  ITS
 CERTIFICATE  OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF LABOR PURSUANT
 TO SECTION TWENTY-FIVE-C OF THE LABOR LAW. IN NO EVENT SHALL THE TAXPAY-
 ER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT OF THE CREDIT  LISTED  ON
 THE  CERTIFICATE  OF  ELIGIBILITY. NOTWITHSTANDING ANY PROVISION OF THIS
 CHAPTER TO THE CONTRARY, THE COMMISSIONER AND THE COMMISSIONER'S  DESIG-
 NEES SHALL 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) NO WAGE PAID BY A TAXPAYER AS THE BASIS FOR THE ALLOWANCE  OF  THE
 CREDIT  PROVIDED  UNDER  THIS  SECTION SHALL BE USED BY SUCH TAXPAYER TO
 CLAIM OR CALCULATE ANY OTHER TAX CREDIT PROVIDED UNDER THIS CHAPTER.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (ccc) to read as follows:
   (CCC)  EMPIRE  STATE  APPRENTICESHIP TAX CREDIT. (1)(A) (I) A TAXPAYER
 THAT HAS BEEN CERTIFIED BY THE COMMISSIONER  OF  LABOR  AS  A  CERTIFIED
 EMPLOYER  PURSUANT  TO  SECTION  TWENTY-FIVE-C OF THE LABOR LAW SHALL BE
 ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR EACH QUAL-
 IFIED APPRENTICE, UP TO (I) TWO THOUSAND FIVE HUNDRED  DOLLARS  FOR  THE

 A. 3009--B                         24
 
 FIRST  YEAR  OF  THE  APPRENTICESHIP;  (II)  THREE THOUSAND FIVE HUNDRED
 DOLLARS FOR THE SECOND YEAR OF THE APPRENTICESHIP; (III)  FOUR  THOUSAND
 FIVE HUNDRED DOLLARS FOR THE THIRD YEAR OF THE APPRENTICESHIP; (IV) FOUR
 THOUSAND FIVE HUNDRED DOLLARS FOR THE FOURTH YEAR OF THE APPRENTICESHIP;
 AND  (V)  FOUR  THOUSAND  FIVE HUNDRED DOLLARS FOR THE FIFTH YEAR OF THE
 APPRENTICESHIP.
   (II) A TAXPAYER THAT HAS BEEN CERTIFIED BY THE COMMISSIONER  OF  LABOR
 AS  A  CERTIFIED EMPLOYER PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR
 LAW SHALL BE ALLOWED A CREDIT, IN LIEU OF THE  CREDIT  AS  SPECIFIED  IN
 SUBDIVISION  (C)  OF SECTION TWENTY-FIVE-C OF THE LABOR LAW, AGAINST THE
 TAX IMPOSED BY THIS  ARTICLE,  FOR  EACH  QUALIFIED  APPRENTICE  WHO  IS
 CONSIDERED  A  DISADVANTAGED YOUTH, PURSUANT TO SECTION TWENTY-FIVE-C OF
 THE LABOR LAW, UP TO (I) THE FIVE THOUSAND FIVE HUNDRED DOLLARS  OR  THE
 TOTAL  AMOUNT  OF  WAGES  PAID FOR THE FIRST YEAR OF THE APPRENTICESHIP;
 (II) SIX THOUSAND FIVE HUNDRED  DOLLARS  FOR  THE  SECOND  YEAR  OF  THE
 APPRENTICESHIP;  AND  (III) SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR EACH
 OF THE THIRD, FOURTH, AND FIFTH YEARS OF THE APPRENTICESHIP.
   (B) 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 CERTIFIED EMPLOYER PURSUANT
 TO SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL BE ALLOWED ITS PRO  RATA
 SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY
 OR S CORPORATION.
   (C)  FOR  PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED APPRENTICE"
 SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B)  OF  SECTION
 TWENTY-FIVE-C  OF THE LABOR LAW.  THE PORTION OF THE CREDIT DESCRIBED IN
 ITEM (I) THROUGH (V) OF CLAUSE (I) OF SUBPARAGRAPH (A) OF THIS PARAGRAPH
 SHALL BE ALLOWED FOR THE TAXABLE YEARS IN WHICH THE WAGES  ARE  PAID  TO
 THE QUALIFIED APPRENTICE.
   (2)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION EXCEEDS
 THE TAXPAYER'S TAX FOR THE TAXABLE YEAR, ANY AMOUNT OF CREDIT NOT DEDUC-
 TIBLE IN THAT TAXABLE YEAR 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, NO INTEREST WILL
 BE PAID THEREON.
   (3)  THE  TAXPAYER  SHALL  BE REQUIRED TO ATTACH TO ITS TAX RETURN ITS
 CERTIFICATE OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF LABOR  PURSUANT
 TO SECTION TWENTY-FIVE-C OF THE LABOR LAW. IN NO EVENT SHALL THE TAXPAY-
 ER  BE  ALLOWED A CREDIT GREATER THAN THE AMOUNT OF THE CREDIT LISTED ON
 THE CERTIFICATE OF ELIGIBILITY. NOTWITHSTANDING ANY  PROVISION  OF  THIS
 CHAPTER  TO THE CONTRARY, THE COMMISSIONER AND THE COMMISSIONER'S DESIG-
 NEES SHALL 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, A PARTNER IN A PARTNERSHIP, OR A  SHAREHOLDER
 IN  A  SUBCHAPTER S CORPORATION, ONLY THE AMOUNT OF CREDIT EARNED BY THE
 ENTITY AND NOT THE AMOUNT OF CREDIT  CLAIMED  BY  THE  TAXPAYER  MAY  BE
 RELEASED.
   (4)  NO  WAGE PAID BY A TAXPAYER AS THE BASIS FOR THE ALLOWANCE OF THE
 CREDIT PROVIDED UNDER THIS SECTION SHALL BE USED  BY  SUCH  TAXPAYER  TO
 CLAIM OR CALCULATE ANY OTHER TAX CREDIT PROVIDED UNDER THIS CHAPTER.
   §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a new  clause  (xliii)  to  read  as
 follows:
 (XLIII) EMPIRE STATE APPRENTICESHIP  AMOUNT OF CREDIT UNDER
 TAX CREDIT UNDER SUBSECTION          SUBDIVISION FORTY-NINE OF

 A. 3009--B                         25

 (CCC)                                SECTION TWO HUNDRED TEN-B
   § 5. This act shall take effect immediately and shall apply to taxable
 years commencing on or after January 1, 2018.
   §  2.  This  act shall take effect immediately provided, however, that
 the applicable effective date of Subparts A and B of this act  shall  be
 as specifically set forth in the last section of such Subparts.
 
                                  PART O
 
   Section  1.  Subdivision 6 of section 187-b of the tax law, as amended
 by section 1 of part G of chapter 59 of the laws of 2013, is amended  to
 read as follows:
   6.  Termination. The credit allowed by subdivision two of this section
 shall not apply in taxable years beginning after December  thirty-first,
 two thousand [seventeen] TWENTY-TWO.
   §  2. Paragraph (f) of subdivision 30 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:
   (f)  Termination. The credit allowed by paragraph (b) of this subdivi-
 sion shall not apply in taxable years beginning after  December  thirty-
 first, two thousand [seventeen] TWENTY-TWO.
   §  3.  Paragraph 6 of subsection (p) of section 606 of the tax law, as
 amended by section 3 of part G of chapter 59 of the  laws  of  2013,  is
 amended to read as follows:
   (6) Termination. The credit allowed by this subsection shall not apply
 in  taxable  years  beginning  after December thirty-first, two thousand
 [seventeen] TWENTY-TWO.
   § 4. This act shall take effect immediately.
 
                                  PART P

   Section 1. Subparagraph (i) of  paragraph  (b)  of  subdivision  1  of
 section  210-B  of  the  tax  law, as amended by section 31 of part T of
 chapter 59 of the laws of 2015, is amended to read as follows:
   (i) A credit shall be allowed under this subdivision with  respect  to
 tangible personal property and other tangible property, including build-
 ings  and  structural  components  of  buildings, which are: depreciable
 pursuant to section one hundred  sixty-seven  of  the  internal  revenue
 code, have a useful life of four years or more, are acquired by purchase
 as  defined  in  section  one  hundred  seventy-nine (d) of the internal
 revenue code, have a situs in this state and are (A) principally used by
 the taxpayer in the production of goods  by  manufacturing,  processing,
 assembling,  refining,  mining, extracting, farming, agriculture, horti-
 culture, floriculture, viticulture or commercial fishing, (B) industrial
 waste treatment facilities or air pollution control facilities, used  in
 the taxpayer's trade or business, (C) research and development property,
 or  (D)  principally used in the ordinary course of the taxpayer's trade
 or business as a broker or dealer in connection  with  the  purchase  or
 sale  (which  shall include but not be limited to the issuance, entering
 into, assumption,  offset,  assignment,  termination,  or  transfer)  of
 stocks,  bonds  or  other  securities as defined in section four hundred
 seventy-five (c)(2) of the Internal Revenue Code, or of  commodities  as
 defined in section four hundred seventy-five (e) of the Internal Revenue
 Code,  (E)  principally  used  in  the ordinary course of the taxpayer's
 trade or business of providing investment advisory services for a  regu-
 lated  investment  company as defined in section eight hundred fifty-one

 A. 3009--B                         26
 
 of the Internal Revenue Code, or lending, loan arrangement or loan orig-
 ination services to customers in connection with the  purchase  or  sale
 (which  shall include but not be limited to the issuance, entering into,
 assumption,  offset, assignment, termination, or transfer) of securities
 as defined in section four hundred seventy-five (c)(2) of  the  Internal
 Revenue Code, (F) principally used in the ordinary course of the taxpay-
 er's  business  as  an  exchange  registered  as  a  national securities
 exchange within the meaning of sections 3(a)(1) and 6(a) of the  Securi-
 ties Exchange Act of 1934 or a board of trade as defined in subparagraph
 one of paragraph (a) of section fourteen hundred ten of the not-for-pro-
 fit  corporation law or as an entity that is wholly owned by one or more
 such national securities exchanges or boards of trade and that  provides
 automation  or  technical services thereto, or (G) principally used as a
 qualified film production facility including qualified  film  production
 facilities  having a situs in an empire zone designated as such pursuant
 to article eighteen-B of the general municipal law, where  the  taxpayer
 is  providing  three  or  more services to any qualified film production
 company using the facility, including such services as a studio lighting
 grid, lighting and grip equipment, multi-line phone  service,  broadband
 information  technology  access,  industrial  scale electrical capacity,
 food services, security  services,  and  heating,  ventilation  and  air
 conditioning.  For purposes of clauses (D), (E) and (F) of this subpara-
 graph, property purchased by a  taxpayer  affiliated  with  a  regulated
 broker,  dealer,  registered  investment  advisor,  national  securities
 exchange or board of trade, is allowed a credit under  this  subdivision
 if  the  property  is  used  by its affiliated regulated broker, dealer,
 registered investment advisor, national securities exchange or board  of
 trade  in  accordance with this subdivision. For purposes of determining
 if the property is principally used in qualifying uses, the uses by  the
 taxpayer  described  in  clauses (D) and (E) of this subparagraph may be
 aggregated. In addition, the uses by the taxpayer, its affiliated  regu-
 lated  broker,  dealer and registered investment advisor under either or
 both of those clauses may be aggregated. Provided, however,  a  taxpayer
 shall  not be allowed the credit provided by clauses (D), (E) and (F) of
 this subparagraph unless the property is first placed in service  before
 October  first,  two  thousand fifteen and (i) eighty percent or more of
 the  employees  performing  the  administrative  and  support  functions
 resulting  from  or related to the qualifying uses of such equipment are
 located in this state or (ii)  the  average  number  of  employees  that
 perform  the  administrative  and  support  functions  resulting from or
 related to the qualifying uses of such equipment and are located in this
 state during the taxable year for which the credit is claimed  is  equal
 to  or greater than ninety-five percent of the average number of employ-
 ees that perform these functions and are located in  this  state  during
 the thirty-six months immediately preceding the year for which the cred-
 it  is  claimed,  or (iii) the number of employees located in this state
 during the taxable year for which the credit is claimed is equal  to  or
 greater  than  ninety percent of the number of employees located in this
 state on December thirty-first, nineteen hundred ninety-eight or, if the
 taxpayer was not a calendar year taxpayer in  nineteen  hundred  ninety-
 eight,  the  last  day  of  its first taxable year ending after December
 thirty-first, nineteen hundred ninety-eight.  If  the  taxpayer  becomes
 subject  to  tax in this state after the taxable year beginning in nine-
 teen hundred ninety-eight, then the taxpayer is not required to  satisfy
 the  employment test provided in the preceding sentence of this subpara-
 graph for its first taxable year. For purposes of clause (iii)  of  this

 A. 3009--B                         27
 
 subparagraph  the employment test will be based on the number of employ-
 ees located in this state on the last day of the first taxable year  the
 taxpayer  is  subject  to tax in this state. If the uses of the property
 must be aggregated to determine whether the property is principally used
 in  qualifying  uses, then either each affiliate using the property must
 satisfy this employment test or this employment test must  be  satisfied
 through the aggregation of the employees of the taxpayer, its affiliated
 regulated  broker,  dealer,  and registered investment adviser using the
 property. For purposes of [this subdivision, the term "goods" shall  not
 include  electricity] CLAUSE (A) OF THIS SUBPARAGRAPH, TANGIBLE PERSONAL
 PROPERTY AND OTHER TANGIBLE PROPERTY SHALL NOT INCLUDE PROPERTY  PRINCI-
 PALLY  USED  BY  THE  TAXPAYER  (I) IN THE PRODUCTION OR DISTRIBUTION OF
 ELECTRICITY, NATURAL GAS, STEAM, OR WATER DELIVERED  THROUGH  PIPES  AND
 MAINS, OR (II) IN THE CREATION, PRODUCTION OR REPRODUCTION, IN ANY MEDI-
 UM, OF A FILM, VISUAL OR AUDIO RECORDING, OR COMMERCIAL, WHERE THE COSTS
 ASSOCIATED  WITH  SUCH CREATION, PRODUCTION OR REPRODUCTION ARE INCURRED
 OUTSIDE OF THIS STATE, OR IN THE DUPLICATION, FOR PURPOSES OF  BROADCAST
 IN  ANY  MEDIUM,  OF  A  MASTER OF A FILM, VISUAL OR AUDIO RECORDING, OR
 COMMERCIAL,  WHERE  THE  COSTS  ASSOCIATED  WITH  SUCH  DUPLICATION  ARE
 INCURRED OUTSIDE OF THIS STATE.
   §  2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606
 of the tax law, as amended by chapter  637  of  the  laws  of  2008,  is
 amended to read as follows:
   (A)  A  credit  shall be allowed under this subsection with respect to
 tangible personal property and other tangible property, including build-
 ings and structural components  of  buildings,  which  are:  depreciable
 pursuant  to  section  one  hundred  sixty-seven of the internal revenue
 code, have a useful life of four years or more, are acquired by purchase
 as defined in section one  hundred  seventy-nine  (d)  of  the  internal
 revenue code, have a situs in this state and are (i) principally used by
 the  taxpayer  in  the production of goods by manufacturing, processing,
 assembling, refining, mining, extracting, farming,  agriculture,  horti-
 culture,  floriculture,  viticulture  or commercial fishing, (ii) indus-
 trial waste treatment facilities or air  pollution  control  facilities,
 used in the taxpayer's trade or business, (iii) research and development
 property, (iv) principally used in the ordinary course of the taxpayer's
 trade  or business as a broker or dealer in connection with the purchase
 or sale (which shall include but not be limited to the issuance,  enter-
 ing  into,  assumption, offset, assignment, termination, or transfer) of
 stocks, bonds or other securities as defined  in  section  four  hundred
 seventy-five  (c)(2)  of the Internal Revenue Code, or of commodities as
 defined in section 475(e) of the Internal Revenue Code, (v)  principally
 used  in  the  ordinary  course  of  the taxpayer's trade or business of
 providing investment advisory services for a regulated investment compa-
 ny as defined in section eight hundred fifty-one of the Internal Revenue
 Code, or lending, loan  arrangement  or  loan  origination  services  to
 customers  in  connection with the purchase or sale (which shall include
 but not be limited to the issuance, entering into,  assumption,  offset,
 assignment,  termination,  or  transfer)  of  securities  as  defined in
 section four hundred seventy-five (c)(2) of the Internal  Revenue  Code,
 or (vi) principally used as a qualified film production facility includ-
 ing  qualified  film  production  facilities having a situs in an empire
 zone designated as such pursuant to article eighteen-B  of  the  general
 municipal law, where the taxpayer is providing three or more services to
 any qualified film production company using the facility, including such
 services  as a studio lighting grid, lighting and grip equipment, multi-

 A. 3009--B                         28
 
 line phone service, broadband information technology access,  industrial
 scale  electrical  capacity, food services, security services, and heat-
 ing, ventilation and air conditioning. For purposes of clauses (iv)  and
 (v)  of  this  subparagraph, property purchased by a taxpayer affiliated
 with a regulated broker, dealer, or  registered  investment  adviser  is
 allowed  a  credit  under this subsection if the property is used by its
 affiliated regulated broker, dealer or registered investment adviser  in
 accordance  with  this  subsection.  For  purposes of determining if the
 property is principally used in qualifying uses, the uses by the taxpay-
 er described in clauses (iv) and (v) of this subparagraph may be  aggre-
 gated.  In  addition, the uses by the taxpayer, its affiliated regulated
 broker, dealer and registered investment adviser under either or both of
 those clauses may be aggregated. Provided, however, a taxpayer shall not
 be allowed the credit provided by clauses (iv) and (v) of this  subpara-
 graph  unless (I) eighty percent or more of the employees performing the
 administrative and support functions resulting from or  related  to  the
 qualifying uses of such equipment are located in this state, or (II) the
 average  number of employees that perform the administrative and support
 functions resulting from or related  to  the  qualifying  uses  of  such
 equipment  and  are  located  in  this state during the taxable year for
 which the credit is claimed is equal  to  or  greater  than  ninety-five
 percent  of the average number of employees that perform these functions
 and are located in this state during the thirty-six  months  immediately
 preceding  the year for which the credit is claimed, or (III) the number
 of employees located in this state during the taxable year for which the
 credit is claimed is equal to or greater  than  ninety  percent  of  the
 number  of  employees  located  in  this state on December thirty-first,
 nineteen hundred ninety-eight or, if the taxpayer  was  not  a  calendar
 year  taxpayer  in  nineteen  hundred  ninety-eight, the last day of its
 first taxable year ending after December thirty-first, nineteen  hundred
 ninety-eight. If the taxpayer becomes subject to tax in this state after
 the  taxable  year  beginning in nineteen hundred ninety-eight, then the
 taxpayer is not required to satisfy the employment test provided in  the
 preceding  sentence of this subparagraph for its first taxable year. For
 the purposes of clause (III) of this subparagraph  the  employment  test
 will  be  based  on the number of employees located in this state on the
 last day of the first taxable year the taxpayer is  subject  to  tax  in
 this  state. If the uses of the property must be aggregated to determine
 whether the property is principally used in qualifying uses, then either
 each affiliate using the property must satisfy this employment  test  or
 this  employment  test  must be satisfied through the aggregation of the
 employees of the taxpayer, its affiliated regulated broker, dealer,  and
 registered  investment adviser using the property. For purposes of [this
 subsection, the term "goods" shall not include electricity]  CLAUSE  (I)
 OF  THIS  SUBPARAGRAPH,  TANGIBLE  PERSONAL  PROPERTY AND OTHER TANGIBLE
 PROPERTY SHALL NOT INCLUDE PROPERTY PRINCIPALLY USED BY THE TAXPAYER (A)
 IN THE PRODUCTION OR DISTRIBUTION OF ELECTRICITY, NATURAL GAS, STEAM, OR
 WATER DELIVERED THROUGH  PIPES  AND  MAINS,  OR  (B)  IN  THE  CREATION,
 PRODUCTION  OR  REPRODUCTION,  IN ANY MEDIUM, OF A FILM, VISUAL OR AUDIO
 RECORDING, OR COMMERCIAL, WHERE THE COSTS ASSOCIATED WITH SUCH CREATION,
 PRODUCTION OR REPRODUCTION ARE INCURRED OUTSIDE OF THIS STATE, OR IN THE
 DUPLICATION, FOR PURPOSES OF BROADCAST IN ANY MEDIUM, OF A MASTER  OF  A
 FILM,  VISUAL OR AUDIO RECORDING, OR COMMERCIAL, WHERE THE COSTS ASSOCI-
 ATED WITH SUCH DUPLICATION ARE INCURRED OUTSIDE OF THIS STATE.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.

 A. 3009--B                         29
 
                                  PART Q
 
   Section 1. Legislative findings. The legislature finds it necessary to
 revise  a  decision of the tax appeals tribunal that disturbed the long-
 standing policy of the department of taxation and  finance  that  single
 member limited liability companies that are treated as disregarded enti-
 ties  for  federal  income  tax purposes also would be treated as disre-
 garded entities for purposes of determining eligibility of the owners of
 such entities for tax credits allowed  under  article  9,  9-A,  22,  32
 (prior  to  its  repeal)  or  33 of the tax law. The decision of the tax
 appeals tribunal, if allowed to stand, will result in the denial of  tax
 credits,  such  as  empire  zone  tax credits, to taxpayers who in prior
 years received those credits.
   § 2. The tax law is amended by adding a new  section  43  to  read  as
 follows:
   §  43.  SINGLE  MEMBER LIMITED LIABILITY COMPANIES AND ELIGIBILITY FOR
 TAX CREDITS. A LIMITED LIABILITY COMPANY THAT HAS A SINGLE MEMBER AND IS
 DISREGARDED AS AN ENTITY SEPARATE FROM ITS OWNER FOR FEDERAL INCOME  TAX
 PURPOSES  (WITHOUT REFERENCE TO ANY SPECIAL RULES RELATED TO THE IMPOSI-
 TION OF CERTAIN FEDERAL TAXES, INCLUDING  BUT  NOT  LIMITED  TO  CERTAIN
 EMPLOYMENT  AND EXCISE TAXES) SHALL BE DISREGARDED AS AN ENTITY SEPARATE
 FROM ITS OWNER FOR PURPOSES OF DETERMINING WHETHER OR NOT  THE  TAXPAYER
 THAT  IS  THE  SINGLE MEMBER OF SUCH LIMITED LIABILITY COMPANY SATISFIES
 THE REQUIREMENTS TO BE ELIGIBLE FOR ANY TAX CREDIT ALLOWED UNDER ARTICLE
 NINE, NINE-A, TWENTY-TWO OR THIRTY-THREE  OF  THIS  CHAPTER  OR  ALLOWED
 UNDER  ARTICLE  THIRTY-TWO  OF  THIS CHAPTER PRIOR TO THE REPEAL OF SUCH
 ARTICLE. SUCH REQUIREMENTS, INCLUDING BUT NOT LIMITED TO  ANY  NECESSARY
 CERTIFICATION, EMPLOYMENT OR INVESTMENT THRESHOLDS, PAYMENT OBLIGATIONS,
 AND  ANY  TIME  PERIOD FOR ELIGIBILITY, SHALL BE IMPOSED ON THE TAXPAYER
 AND THE DETERMINATION OF WHETHER OR  NOT  SUCH  REQUIREMENTS  HAVE  BEEN
 SATISFIED  AND  THE  COMPUTATION  OF THE CREDIT SHALL BE MADE BY DEEMING
 SUCH TAXPAYER AND SUCH LIMITED LIABILITY COMPANY TO BE A SINGLE  ENTITY.
 IF  THE TAXPAYER IS THE SINGLE MEMBER OF MORE THAN ONE LIMITED LIABILITY
 COMPANY THAT IS DISREGARDED AS AN ENTITY SEPARATE FROM  ITS  OWNER,  THE
 DETERMINATION  OF WHETHER OR NOT THE REQUIREMENTS TO BE ELIGIBLE FOR ANY
 TAX CREDIT ALLOWED UNDER ARTICLE NINE,  NINE-A,  TWENTY-TWO  OR  THIRTY-
 THREE  OF THIS CHAPTER OR ALLOWED UNDER ARTICLE THIRTY-TWO OF THIS CHAP-
 TER PRIOR TO THE REPEAL OF SUCH ARTICLE  HAVE  BEEN  SATISFIED  AND  THE
 COMPUTATION  OF  THE  CREDIT  SHALL BE MADE BY DEEMING SUCH TAXPAYER AND
 SUCH LIMITED LIABILITY COMPANIES TO BE A SINGLE ENTITY.
   § 3. This act shall take effect immediately;  provided  however,  that
 section  43  of  the tax law, as added by section two of this act, shall
 apply to all taxable years for which  the  statute  of  limitations  for
 seeking a refund or assessing additional tax is still open.
 
                                  PART R
 
                           Intentionally Omitted
 
                                  PART S
 
   Section 1. Subsection (g) of section 615 of the tax law, as amended by
 section  1  of  part  H of chapter 59 of the laws of 2015, is amended to
 read as follows:
   (g)(1) With respect to an individual whose  New  York  adjusted  gross
 income is over one million dollars and no more than ten million dollars,

 A. 3009--B                         30
 
 the  New  York  itemized  deduction  shall  be  an amount equal to fifty
 percent of any charitable contribution deduction allowed  under  section
 one  hundred  seventy  of  the  internal revenue code [for taxable years
 beginning after two thousand nine and before two thousand eighteen. With
 respect  to  an  individual whose New York adjusted gross income is over
 one million dollars, the New York itemized deduction shall be an  amount
 equal  to fifty percent of any charitable contribution deduction allowed
 under section one hundred seventy of the internal revenue code for taxa-
 ble years beginning in two thousand nine or after  two  thousand  seven-
 teen].
   (2) With respect to an individual whose New York adjusted gross income
 is over ten million dollars, the New York itemized deduction shall be an
 amount  equal  to  twenty-five  percent  of  any charitable contribution
 deduction allowed under section one  hundred  seventy  of  the  internal
 revenue  code  [for  taxable years beginning after two thousand nine and
 ending before two thousand eighteen].
   § 2. Subdivision (g) of section 11-1715 of the administrative code  of
 the city of New York, as amended by section 2 of part H of chapter 59 of
 the laws of 2015, is amended to read as follows:
   (g)  (1)  With  respect to an individual whose New York adjusted gross
 income is over one million dollars but no more than ten million dollars,
 the New York itemized deduction  shall  be  an  amount  equal  to  fifty
 percent  of  any charitable contribution deduction allowed under section
 one hundred seventy of the internal  revenue  code  [for  taxable  years
 beginning after two thousand nine and before two thousand eighteen. With
 respect  to  an  individual whose New York adjusted gross income is over
 one million dollars, the New York itemized deduction shall be an  amount
 equal  to fifty percent of any charitable contribution deduction allowed
 under section one hundred seventy of the internal revenue code for taxa-
 ble years beginning in two thousand nine or after  two  thousand  seven-
 teen].
   (2) With respect to an individual whose New York adjusted gross income
 is over ten million dollars, the New York itemized deduction shall be an
 amount  equal  to  twenty-five  percent  of  any charitable contribution
 deduction allowed under section one  hundred  seventy  of  the  internal
 revenue  code  [for  taxable years beginning after two thousand nine and
 ending before two thousand eighteen].
   § 3. This act shall take effect immediately.
 
                                  PART T
 
   Section 1. Subsection (c) of section 606 of the tax law is amended  by
 adding a new paragraph (1-a) to read as follows:
   (1-A)  FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN, FOR A
 TAXPAYER WITH NEW YORK ADJUSTED GROSS INCOME OF AT LEAST FIFTY  THOUSAND
 DOLLARS BUT LESS THAN ONE HUNDRED FIFTY THOUSAND DOLLARS, THE APPLICABLE
 PERCENTAGE  SHALL  BE THE APPLICABLE PERCENTAGE OTHERWISE COMPUTED UNDER
 PARAGRAPH ONE OF THIS SUBSECTION MULTIPLIED BY A FACTOR AS FOLLOWS:
   IF NEW YORK ADJUSTED GROSS
   INCOME IS:                                         THE FACTOR IS:
   AT LEAST $50,000 AND LESS
   THAN $55,000                                       1.1682
   AT LEAST $55,000 AND LESS
   THAN $60,000                                       1.2733
   AT LEAST $60,000 AND LESS
   THAN $65,000                                       2.322

 A. 3009--B                         31
 
   AT LEAST $65,000 AND LESS
   THAN $150,000                                      3.000
   § 2. This act shall take effect immediately.
 
                                  PART U
 
   Section  1. Paragraph (a) of subdivision 1 and paragraph (a) of subdi-
 vision 2 of section 1701 of the tax law, as added by section 1  of  part
 CC-1 of chapter 57 of the laws of 2008, are amended to read as follows:
   (a) "Debt" means [all] PAST-DUE TAX liabilities, including unpaid tax,
 interest,  and  penalty,  that  the  commissioner  is required by law to
 collect and that have [been reduced to judgment by the  docketing  of  a
 New  York  state  tax warrant in the office of a county clerk located in
 the state of New York or by the filing of a copy of the warrant  in  the
 office  of the department of state] BECOME FIXED AND FINAL SUCH THAT THE
 TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW.
   (a) To assist the commissioner in the collection of debts, the depart-
 ment must develop and operate a financial institution data match  system
 for  the purpose of identifying and seizing the non-exempt assets of tax
 debtors as identified by the commissioner. The commissioner  is  author-
 ized  to  designate  a  third  party to develop and operate this system.
 NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER,  THE  COMMISSIONER
 IS  AUTHORIZED  TO  DISCLOSE THE DEBT AND THE DEBTOR INFORMATION TO SUCH
 THIRD PARTY AND TO FINANCIAL INSTITUTIONS FOR PURPOSES OF  THIS  SYSTEM.
 Any  third party designated by the commissioner to develop and operate a
 financial data match system must keep all information  it  obtains  from
 both  the department and the financial institution confidential, and any
 employee, agent or representative of that third party is prohibited from
 disclosing that information to anyone other than the department  or  the
 financial institution.
   § 2. This act shall take effect immediately.
 
                                  PART V
 
                           Intentionally Omitted
 
                                  PART W
 
                           Intentionally Omitted
 
                                  PART X
 
   Section  1.  Section  2  of  part Q of chapter 59 of the laws of 2013,
 amending the tax law, relating  to  serving  an  income  execution  with
 respect  to  individual tax debtors without filing a warrant, as amended
 by section 1 of part DD of chapter 59 of the laws of 2015, is amended to
 read as follows:
   § 2. This act shall take effect immediately and shall  expire  and  be
 deemed repealed on and after April 1, [2017] 2019.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2017.
 
                                  PART Y

 A. 3009--B                         32
 
   Section 1. Subdivision 1-A of section 208 of the tax law,  as  amended
 by  section 4 of part A of chapter 59 of the laws of 2014, is amended to
 read as follows:
   1-A.  The  term  "New  York  S corporation" means, with respect to any
 taxable year, a corporation subject to tax under this article [for which
 an election is in effect pursuant  to  subsection  (a)  of  section  six
 hundred sixty of this chapter for such year] AND DESCRIBED IN SUBSECTION
 (B)  OF  SECTION  SIX  HUNDRED  SIXTY OF THIS CHAPTER, AND any such year
 shall be denominated a "New York S year"[, and such  election  shall  be
 denominated  a "New York S election"]. The term "New York C corporation"
 means, with respect to any taxable year, a corporation  subject  to  tax
 under  this  article which is not a New York S corporation, and any such
 year shall be denominated a "New York C  year".  The  term  "termination
 year"  means  any  taxable year of a corporation during which the CORPO-
 RATION'S STATUS AS A New York S [election] CORPORATION terminates  on  a
 day  other  than  the first day of such year. The portion of the taxable
 year ending before the first day for which such termination is effective
 shall be denominated the "S short year", and the portion  of  such  year
 beginning on such first day shall be denominated the "C short year". The
 term  "New  York S termination year" means any termination year which is
 [not] also an S termination year for federal purposes.
   § 2. Subdivision 1-B, paragraph (ii)  of  the  opening  paragraph  and
 paragraph  (k)  of  subdivision  9  of  section  208  of the tax law are
 REPEALED.
   § 3. Subdivision 1 of section 210-A of the  tax  law,  as  amended  by
 section  21  of  part T of chapter 59 of the laws of 2015, is amended to
 read as follows:
   1. General. Business income and capital shall be  apportioned  to  the
 state  by  the apportionment factor determined pursuant to this section.
 The apportionment factor is a fraction,  determined  by  including  only
 those receipts, net income, net gains, and other items described in this
 section  that are included in the computation of the taxpayer's business
 income (determined  without  regard  to  the  modification  provided  in
 subparagraph  nineteen  of  paragraph (a) of subdivision nine of section
 two hundred eight of this article) for the taxable year.  The  numerator
 of  the  apportionment  fraction  shall  be  equal to the sum of all the
 amounts required to  be  included  in  the  numerator  pursuant  to  the
 provisions  of  this  section  and  the denominator of the apportionment
 fraction shall be equal to the sum of all the  amounts  required  to  be
 included  in the denominator pursuant to the provisions of this section.
 FOR A NEW YORK S CORPORATION, THE RECEIPTS INCLUDED IN THE APPORTIONMENT
 FRACTION ARE THOSE RECEIPTS, NET INCOME (NOT LESS THAN ZERO), NET  GAINS
 (NOT LESS THAN ZERO), AND OTHER ITEMS DESCRIBED IN THIS SECTION THAT ARE
 INCLUDED  IN  THE NEW YORK S CORPORATION'S NONSEPARATELY COMPUTED INCOME
 AND LOSS OR IN THE NEW YORK S CORPORATION'S SEPARATELY STATED  ITEMS  OF
 INCOME  AND LOSS, DETERMINED PURSUANT TO SUBDIVISION (A) OF SECTION 1366
 OF THE INTERNAL REVENUE CODE.
   § 4. Section 660 of the tax law, as amended by chapter 606 of the laws
 of 1984, subsections (a) and (h) as amended by section 73 of part  A  of
 chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as amended
 by section 51 of part A of chapter 389 of the laws of 1997, paragraphs 4
 and  5  as  added  and  paragraph  6  of subsection (b) as renumbered by
 section 52 of part A of chapter 389 of the laws of 1997, subsection  (d)
 as  added by chapter 760 of the laws of 1992, subsections (e) and (f) as
 added and subsection (g) as relettered by section 53 of part A of  chap-
 ter  389  of  the  laws of 1997, subsection (i) as added by section 1 of

 A. 3009--B                         33
 
 part L of chapter 60 of the laws of 2007, and paragraph 1 of  subsection
 (i)  as  amended  by  section  39 of part T of chapter 59 of the laws of
 2015, is amended to read as follows:
   §  660. [Election by shareholders of S corporations.] TAX TREATMENT OF
 FEDERAL S CORPORATIONS. (a) [Election.] If a corporation is  an  [eligi-
 ble]  S  corporation  DESCRIBED  IN  SUBSECTION (B) OF THIS SECTION, the
 shareholders of the corporation [may elect in the manner  set  forth  in
 subsection  (b)  of  this  section  to]  SHALL take into account, to the
 extent provided for in this article (or  in  article  thirteen  of  this
 chapter,  in  the  case  of a shareholder which is a taxpayer under such
 article), the  S  corporation  items  of  income,  loss,  deduction  and
 reductions for taxes described in paragraphs two and three of subsection
 (f)  of  section thirteen hundred sixty-six of the internal revenue code
 which are taken into account for federal income  tax  purposes  for  the
 taxable  year.  [No  election  under  this subsection shall be effective
 unless all shareholders of the corporation have so elected. An eligible]
   (B) A NEW YORK S corporation is (i) [an S] A corporation THAT HAS MADE
 A VALID ELECTION TO BE AN S CORPORATION FOR FEDERAL INCOME TAX  PURPOSES
 PURSUANT  TO  SECTION 1362 OF THE INTERNAL REVENUE CODE which is subject
 to tax under article nine-A of this chapter, or (ii)  [an  S]  A  corpo-
 ration THAT HAS MADE A VALID ELECTION TO BE AN S CORPORATION FOR FEDERAL
 INCOME  TAX  PURPOSES  PURSUANT  TO SECTION 1362 OF THE INTERNAL REVENUE
 CODE which is the parent of  a  qualified  subchapter  S  subsidiary  AS
 DEFINED  IN  SUBPARAGRAPH  (B)  OF  PARAGRAPH THREE OF SUBSECTION (B) OF
 SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE  subject
 to  tax  under  article  nine-A[,  where the shareholders of such parent
 corporation are entitled to make the election under this  subsection  by
 reason  of  subparagraph  three  of paragraph (k) of subdivision nine of
 section two hundred eight] of this chapter.
   [(b) Requirements of election. An election  under  subsection  (a)  of
 this  section  shall  be made on such form and in such manner as the tax
 commission may prescribe by regulation or instruction.
   (1) When made. An election under subsection (a) of this section may be
 made at any time during the preceding taxable year of the corporation or
 at any time during the taxable year of the corporation and on or  before
 the fifteenth day of the third month of such taxable year.
   (2) Certain elections made during first two and one-half months. If an
 election made under subsection (a) of this section is made for any taxa-
 ble  year  of  the  corporation  during  such  year and on or before the
 fifteenth day of the third month of such year, such  election  shall  be
 treated as made for the following taxable year if
   (A)  on  one or more days in such taxable year before the day on which
 the election was made the corporation did not meet the  requirements  of
 subsection  (b)  of  section  thirteen hundred sixty-one of the internal
 revenue code or
   (B) one or more of the shareholders who held stock in the  corporation
 during  such  taxable  year  and  before  the  election was made did not
 consent to the election.
   (3) Elections made after first two and one-half months. If an election
 under subsection (a) of this section is made for any taxable year of the
 corporation and such election is made after the  fifteenth  day  of  the
 third  month  of such taxable year and on or before the fifteenth day of
 the third month of the following taxable year, such  election  shall  be
 treated as made for the following taxable year.
   (4)  Taxable years of two and one-half months or less. For purposes of
 this subsection, an election for a taxable year made not later than  two

 A. 3009--B                         34

 months and fifteen days after the first day of the taxable year shall be
 treated as timely made during such year.
   (5)  Authority  to  treat  late  elections, etc., as timely. If (A) an
 election under subsection (a) of this section is made  for  any  taxable
 year  (determined  without regard to paragraph three of this subsection)
 after the date prescribed by this subsection for  making  such  election
 for  such  taxable  year, or if no such election is made for any taxable
 year, and
   (B) the commissioner determines that there was  reasonable  cause  for
 failure to timely make such election, then
   (C)  the  commissioner  may  treat such an election as timely made for
 such taxable year (and paragraph three  of  this  subsection  shall  not
 apply).
   (6)  Years  for  which  effective. An election under subsection (a) of
 this section shall be effective for the taxable year of the  corporation
 for  which it is made and for all succeeding taxable years of the corpo-
 ration until such election is terminated under subsection  (c)  of  this
 section.]
   (c)  Termination. An [election under subsection (a) of this section] S
 CORPORATION shall cease to be [effective
   (1)] A NEW YORK S CORPORATION on the day an election to be an S corpo-
 ration ceases to be effective for federal income tax  purposes  pursuant
 to  subsection (d) of section thirteen hundred sixty-two of the internal
 revenue code[, or
   (2) if shareholders holding more than one-half of the shares of  stock
 of  the  corporation  on  the day on which the revocation is made revoke
 such election in the manner the tax commission may  prescribe  by  regu-
 lation,
   (A)  on  the  first day of the taxable year of the corporation, if the
 revocation is made during  such  taxable  year  and  on  or  before  the
 fifteenth day of the third month thereof, or
   (B) on the first day of the following taxable year of the corporation,
 if  the  revocation  is  made  during  the  taxable  year  but after the
 fifteenth day of the third month thereof, or
   (C) on and after the date so specified, if the revocation specifies  a
 date for revocation which is on or after the day on which the revocation
 is made, or
   (3)  if any person who was not a shareholder of the corporation on the
 day on which the election is made becomes a shareholder  in  the  corpo-
 ration  and  affirmatively  refuses  to  consent to such election in the
 manner the tax commission may prescribe by regulation, on the  day  such
 person becomes a shareholder].
   (d)  New  York  S termination year. In the case of a New York S termi-
 nation year, the amount of any item of S corporation  income,  loss  and
 deduction  and  reductions for taxes (as described in paragraphs two and
 three of subsection (f) of section thirteen  hundred  sixty-six  of  the
 internal  revenue code) required to be taken account of under this arti-
 cle shall be adjusted in the same manner that the S corporation's  items
 which  are  included  in the shareholder's federal adjusted gross income
 are adjusted under subsection (s) of section six hundred twelve.
   (e)  [Inadvertent  invalid  elections.  If  (1)  an   election   under
 subsection  (a)  of  this section was not effective for the taxable year
 for which made (determined without regard to paragraph two of subsection
 (b) of this section) by  reason  of  a  failure  to  obtain  shareholder
 consents,

 A. 3009--B                         35

   (2)  the  commissioner  determines that the circumstances resulting in
 such ineffectiveness were inadvertent,
   (3)  no  later than a reasonable period of time after discovery of the
 circumstances resulting in such ineffectiveness,  steps  were  taken  to
 acquire the required shareholder consents, and
   (4)  the  corporation,  and  each  person who was a shareholder in the
 corporation at any time during the period  specified  pursuant  to  this
 subsection,  agrees to make such adjustments (consistent with the treat-
 ment of the corporation as a New York S corporation) as may be  required
 by the commissioner with respect to such period,
   (5) then, notwithstanding the circumstances resulting in such ineffec-
 tiveness,  such corporation shall be treated as a New York S corporation
 during the period specified by the commissioner.
   (f) Validated federal elections. If (1) an election  under  subsection
 (a)  of  this  section  was made for a taxable year or years of a corpo-
 ration, which years occur with or within the period for which the feder-
 al S election of such corporation has been  validated  pursuant  to  the
 provisions  of  subsection  (f) of section thirteen hundred sixty-two of
 the internal revenue code, and
   (2) the corporation, and each person who  was  a  shareholder  in  the
 corporation at any time during such taxable year or years agrees to make
 such  adjustments (consistent with the treatment of the corporation as a
 New York S corporation) as may be  required  by  the  commissioner  with
 respect to such year or years,
   (3) then such corporation shall be treated as a New York S corporation
 during such year or years.
   (g)  Transitional  rule.  Any  election made under this section (as in
 effect for  taxable  years  beginning  before  January  first,  nineteen
 hundred  eighty-three)  shall  be  treated  as  an  election  made under
 subsection (a) of this section.
   (h)] QUALIFIED SUBCHAPTER S SUBSIDIARIES.  IF  AN  S  CORPORATION  HAS
 ELECTED TO TREAT ITS WHOLLY OWNED SUBSIDIARY AS A QUALIFIED SUBCHAPTER S
 SUBSIDIARY  FOR  FEDERAL  INCOME  TAX  PURPOSES UNDER PARAGRAPH THREE OF
 SUBSECTION (B) OF SECTION  1361  OF  THE  INTERNAL  REVENUE  CODE,  SUCH
 ELECTION SHALL BE APPLICABLE FOR NEW YORK STATE TAX PURPOSES AND
   (1)  THE  ASSETS,  LIABILITIES, INCOME, DEDUCTIONS, PROPERTY, PAYROLL,
 RECEIPTS, CAPITAL, CREDITS, AND ALL OTHER TAX ATTRIBUTES AND ELEMENTS OF
 ECONOMIC ACTIVITY OF THE SUBSIDIARY SHALL BE DEEMED TO BE THOSE  OF  THE
 PARENT CORPORATION,
   (2)  TRANSACTIONS  BETWEEN  THE PARENT CORPORATION AND THE SUBSIDIARY,
 INCLUDING THE PAYMENT OF INTEREST AND DIVIDENDS, SHALL NOT BE TAKEN INTO
 ACCOUNT, AND
   (3) GENERAL EXECUTIVE OFFICERS OF THE SUBSIDIARY SHALL BE DEEMED TO BE
 GENERAL EXECUTIVE OFFICERS OF THE PARENT CORPORATION.
   (F) Cross reference.  For definitions relating to S corporations,  see
 subdivision one-A of section two hundred eight of this chapter.
   [(i)  Mandated  New  York S corporation election.  (1) Notwithstanding
 the provisions in subsection (a) of this section,  in  the  case  of  an
 eligible  S  corporation  for which the election under subsection (a) of
 this section is not in effect for the current taxable year,  the  share-
 holders  of  an  eligible  S  corporation  are  deemed to have made that
 election effective for the eligible S corporation's entire current taxa-
 ble year, if the eligible S  corporation's  investment  income  for  the
 current  taxable  year  is  more than fifty percent of its federal gross
 income for such year. In determining whether an eligible  S  corporation
 is deemed to have made that election, the income of a qualified subchap-

 A. 3009--B                         36

 ter  S  subsidiary owned directly or indirectly by the eligible S corpo-
 ration shall be included with the income of the eligible S corporation.
   (2)  For  the purposes of this subsection, the term "eligible S corpo-
 ration" has the same definition as in subsection (a) of this section.
   (3) For the purposes of this subsection, the term "investment  income"
 means the sum of an eligible S corporation's gross income from interest,
 dividends,  royalties,  annuities, rents and gains derived from dealings
 in property, including the corporation's share  of  such  items  from  a
 partnership, estate or trust, to the extent such items would be includa-
 ble in federal gross income for the taxable year.
   (4)  Estimated  tax  payments.  When  making  estimated  tax  payments
 required to be made under this chapter in  the  current  tax  year,  the
 eligible  S  corporation and its shareholders may rely on the eligible S
 corporation's filing status for the prior year. If the eligible S corpo-
 ration's filing status changes from the prior tax year  the  corporation
 or  the  shareholders, as the case may be, which made the payments shall
 be entitled to a refund of such estimated tax payments.  No additions to
 tax with respect to any required declarations or payments  of  estimated
 tax  imposed  under  this chapter shall be imposed on the corporation or
 shareholders, whichever is the taxpayer for the current taxable year, if
 the corporation or the shareholders file such declarations and make such
 estimated tax payments by January fifteenth of  the  following  calendar
 year,  regardless  of whether the taxpayer's tax year is a calendar or a
 fiscal year.]
   § 5. Subparagraph (A) of paragraph 18 of subsection (b) of section 612
 of the tax law, as amended by chapter 28 of the laws of 1987, is amended
 to read as follows:
   (A) [where the election provided for in subsection (a) of section  six
 hundred  sixty  is in effect with respect to such corporation] THAT IS A
 NEW YORK S CORPORATION, an amount equal to his pro  rata  share  of  the
 corporation's reductions for taxes described in paragraphs two and three
 of  subsection (f) of section thirteen hundred sixty-six of the internal
 revenue code, and
   § 6. Paragraph 19 of subsection (b) of section 612 of the tax  law  is
 REPEALED.
   §  7. Paragraphs 20 and 21 of subsection (b) of section 612 of the tax
 law, paragraph 20 as amended by chapter 606 of  the  laws  of  1984  and
 paragraph  21  as  amended  by section 70 of part A of chapter 59 of the
 laws of 2014, are amended to read as follows:
   (20) S corporation distributions to the extent not included in federal
 gross income for the taxable year because of the application of  section
 thirteen hundred sixty-eight, subsection (e) of section thirteen hundred
 seventy-one  or  subsection (c) of section thirteen hundred seventy-nine
 of the internal revenue  code  which  represent  income  not  previously
 subject  to  tax under this article because the election provided for in
 subsection (a) of section six hundred sixty IN EFFECT FOR TAXABLE  YEARS
 BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN had not been made.
 Any  such  distribution treated in the manner described in paragraph two
 of subsection (b) of section thirteen hundred sixty-eight of the  inter-
 nal  revenue  code  for  federal income tax purposes shall be treated as
 ordinary income for purposes of this article.
   (21) In relation to the disposition of  stock  or  indebtedness  of  a
 corporation  which  elected  under  subchapter  s  of chapter one of the
 internal revenue code for any taxable year of  such  corporation  begin-
 ning,  in the case of a corporation taxable under article nine-A of this
 chapter, after December thirty-first, nineteen hundred eighty AND BEFORE

 A. 3009--B                         37
 
 JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amount required to be added to
 federal adjusted  gross  income  pursuant  to  subsection  (n)  of  this
 section.
   §  8. Paragraph 21 of subsection (c) of section 612 of the tax law, as
 amended by section 70 of part A of chapter 59 of the laws  of  2014,  is
 amended to read as follows:
   (21)  In  relation  to  the  disposition of stock or indebtedness of a
 corporation which elected under subchapter  s  of  chapter  one  of  the
 internal  revenue  code  for any taxable year of such corporation begin-
 ning, in the case of a corporation taxable under article nine-A of  this
 chapter, after December thirty-first, nineteen hundred eighty AND BEFORE
 JANUARY  FIRST,  TWO  THOUSAND  EIGHTEEN,  the  amounts  required  to be
 subtracted from federal adjusted gross income pursuant to subsection (n)
 of this section.
   § 9. Paragraph 22 of subsection (c) of section 612 of the tax  law  is
 REPEALED.
   §  10.  Subsection  (e)  of  section 612 of the tax law, as amended by
 chapter 166 of the laws of 1991 and paragraph 3 as added by chapter  760
 of the laws of 1992, is amended to read as follows:
   (e)  Modifications of partners and shareholders of S corporations. (1)
 Partners and shareholders of S corporations [which are not  New  York  C
 corporations].  The  amounts  of modifications required to be made under
 this section by a partner or  by  a  shareholder  of  an  S  corporation
 [(other than an S corporation which is a New York C corporation)], which
 relate  to  partnership  or S corporation items of income, gain, loss or
 deduction shall be determined under section six hundred  seventeen  and,
 in the case of a partner of a partnership doing an insurance business as
 a  member  of  the  New York insurance exchange described in section six
 thousand two hundred one of the insurance law, under section six hundred
 seventeen-a of this article.
   (2) [Shareholders of S corporations which are New York C corporations.
 In the case of a shareholder of an S corporation which is a New  York  C
 corporation,  the  modifications  under this section which relate to the
 corporation's items of income,  loss  and  deduction  shall  not  apply,
 except  for  the  modifications  provided  under  paragraph  nineteen of
 subsection (b) and  paragraph  twenty-two  of  subsection  (c)  of  this
 section.
   (3)]  New  York S termination year. In the case of a New York S termi-
 nation year, the  amounts  of  the  modifications  required  under  this
 section  which  relate  to  the  S  corporation's items of income, loss,
 deduction and reductions for taxes (as described in paragraphs  two  and
 three  of  subsection  (f)  of section thirteen hundred sixty-six of the
 internal revenue code) shall be adjusted in the same manner that  the  S
 corporation's  items  are  adjusted under subsection (s) of [section six
 hundred twelve] THIS SECTION.
   § 11. Subsection (n) of section 612 of the  tax  law,  as  amended  by
 section  61  of part A of chapter 389 of the laws of 1997, is amended to
 read as follows:
   (n) Where gain or loss is recognized for federal income  tax  purposes
 upon  the disposition of stock or indebtedness of a corporation electing
 under subchapter s of chapter one of the internal revenue code
   (1) There shall be added to federal adjusted gross income  the  amount
 of increase in basis with respect to such stock or indebtedness pursuant
 to  subsection (a) of section thirteen hundred seventy-six of the inter-
 nal revenue code as such section was in effect for taxable years  begin-
 ning  before  January  first, nineteen hundred eighty-three and subpara-

 A. 3009--B                         38
 
 graphs (A) and (B)  of  paragraph  one  of  subsection  (a)  of  section
 thirteen  hundred sixty-seven of such code, for each taxable year of the
 corporation beginning, in the case of a corporation taxable under  arti-
 cle  nine-A  of  this  chapter,  after  December  thirty-first, nineteen
 hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN,  and  in
 the case of a corporation taxable under article thirty-two of this chap-
 ter, after December thirty-first, nineteen hundred ninety-six AND BEFORE
 JANUARY FIRST, TWO THOUSAND FIFTEEN, for which the election provided for
 in  subsection  (a) of section six hundred sixty of this article was not
 in effect, and
   (2) There shall be subtracted from federal adjusted gross income
   (A) the amount of reduction in basis with respect  to  such  stock  or
 indebtedness  pursuant  to  subsection  (b)  of section thirteen hundred
 seventy-six of the internal revenue code as such section was  in  effect
 for  taxable  years  beginning  before  January  first, nineteen hundred
 eighty-three  and  subparagraphs  (B)  and  (C)  of  paragraph  two   of
 subsection (a) of section thirteen hundred sixty-seven of such code, for
 each  taxable year of the corporation beginning, in the case of a corpo-
 ration taxable under article nine-A  of  this  chapter,  after  December
 thirty-first,  nineteen  hundred  eighty  AND  BEFORE JANUARY FIRST, TWO
 THOUSAND EIGHTEEN, and in the case of a corporation taxable under  arti-
 cle  thirty-two  of  this chapter, after December thirty-first, nineteen
 hundred ninety-six AND BEFORE JANUARY FIRST, TWO THOUSAND  FIFTEEN,  for
 which the election provided for in subsection (a) of section six hundred
 sixty of this article was not in effect and
   (B)  the  amount  of  any  modifications  to federal gross income with
 respect to such stock pursuant to paragraph twenty of subsection (b)  of
 this section.
   §  12.  Subparagraph (E-1) of paragraph 1 of subsection (b) of section
 631 of the tax law, as added by section 3 of part C of chapter 57 of the
 laws of 2010, is amended to read as follows:
   (E-1) in the case of [an] A NEW  YORK  S  corporation  [for  which  an
 election  is in effect pursuant to subsection (a) of section six hundred
 sixty of this article] that terminates its taxable status in  New  York,
 any  income  or  gain  recognized  on  the  receipt  of payments from an
 installment sale contract  entered  into  when  the  S  corporation  was
 subject  to  tax  in New York, allocated in a manner consistent with the
 applicable methods and rules for  allocation  under  article  nine-A  or
 thirty-two  of  this chapter PRIOR TO ITS REPEAL, in the year that the S
 corporation sold its assets.
   § 13. The section heading and paragraph 2 of subsection (a) of section
 632 of the tax law, the section heading as amended by chapter 606 of the
 laws of 1984, paragraph 2 of subsection (a) as amended by section 71  of
 part  A of chapter 59 of the laws of 2014 and such section as renumbered
 by chapter 28 of the laws of 1987, are amended to read as follows:
   Nonresident partners and [electing] shareholders of S corporations.
   (2) In determining New York source income of a nonresident shareholder
 of [an] A NEW YORK S corporation [where the  election  provided  for  in
 subsection  (a)  of  section  six  hundred  sixty  of this article is in
 effect], there shall be  included  only  the  portion  derived  from  or
 connected  with New York sources of such shareholder's pro rata share of
 items of S corporation income, loss  and  deduction  entering  into  his
 federal  adjusted  gross  income,  increased  by  reductions  for  taxes
 described in paragraphs two and three of subsection (f) of section thir-
 teen hundred sixty-six of the internal revenue  code,  as  such  portion
 shall  be  determined  under  regulations of the commissioner consistent

 A. 3009--B                         39
 
 with the applicable methods  and  rules  for  allocation  under  article
 nine-A  of  this  chapter,  regardless  of  whether  or not such item or
 reduction is included in entire net income under article nine-A for  the
 tax  year. If a nonresident is a shareholder in [an] A NEW YORK S corpo-
 ration [where the election provided for in subsection (a) of section six
 hundred sixty of this article is in effect, and the S corporation]  THAT
 has  distributed an installment obligation under section 453(h)(1)(A) of
 the Internal Revenue Code, then any gain recognized on  the  receipt  of
 payments from the installment obligation for federal income tax purposes
 will be treated as New York source income allocated in a manner consist-
 ent  with  the applicable methods and rules for allocation under article
 nine-A of this chapter in the year that the assets were sold.  In  addi-
 tion,  if  the  shareholders  of the NEW YORK S corporation have made an
 election under section 338(h)(10) of the Internal Revenue Code, then any
 gain recognized on the deemed asset sale for federal income tax purposes
 will be treated as New York source income allocated in a manner consist-
 ent with the applicable methods and rules for allocation  under  article
 nine-A of this chapter in the year that the shareholder made the section
 338(h)(10) election. For purposes of a section 338(h)(10) election, when
 a  nonresident  shareholder  exchanges his or her S corporation stock as
 part of the deemed liquidation, any gain or  loss  recognized  shall  be
 treated  as the disposition of an intangible asset and will not increase
 or offset any gain recognized on the deemed assets sale as a  result  of
 the section 338(h)(10) election.
   §  14.  Subparagraph (A) and the opening paragraph of subparagraph (B)
 of paragraph 5 of subdivision (a) of section 292  of  the  tax  law,  as
 added  by  section  48 of part A of chapter 389 of the laws of 1997, are
 amended to read as follows:
   (A) In the case of a shareholder of an S corporation,
   (i) [where the election provided for in subsection (a) of section  six
 hundred  sixty  of this chapter is in effect with respect to such corpo-
 ration] THAT IS A NEW YORK S CORPORATION, there shall be added to feder-
 al unrelated business taxable income an amount equal to  the  sharehold-
 er's  pro rata share of the corporation's reductions for taxes described
 in paragraphs two and  three  of  subsection  (f)  of  section  thirteen
 hundred sixty-six of the internal revenue code, and
   (ii)  [where  such  election  has  not  been made with respect to such
 corporation, there shall be subtracted from federal  unrelated  business
 taxable  income any items of income of the corporation included therein,
 and there shall be added to federal unrelated  business  taxable  income
 any items of loss or deduction included therein, and
   (iii)] in the case of a New York S termination year, the amount of any
 such  items  of S corporation income, loss, deduction and reductions for
 taxes shall be adjusted in the manner provided in paragraph two or three
 of subsection (s) of section six hundred twelve of this chapter.
   In the case of a shareholder of a corporation which was,  for  any  of
 its  taxable  years  beginning  after  nineteen hundred ninety-seven AND
 BEFORE TWO THOUSAND EIGHTEEN, a federal S corporation but a New  York  C
 corporation:
   §  15.  Transition  rules.  Any  prior  net  operating loss conversion
 subtraction pool and net  operating  loss  carryforward  that  otherwise
 would  have  been  allowed under subparagraph (viii) of paragraph (a) of
 subdivision 1 of section 210 of the tax law  and  subparagraph  (ix)  of
 paragraph  (a)  of  subdivision 1 of section 210 of the tax law, respec-
 tively, for the 2018 or subsequent taxable years, to any  taxpayer  that
 was  a  New  York C corporation for the 2017 taxable year, and becomes a

 A. 3009--B                         40
 
 New York S corporation for the 2018 taxable year  as  a  result  of  the
 amendments  made by this act, shall be held in abeyance and be available
 to such taxpayer if its election to be a federal S corporation is termi-
 nated.  Further, any credit carryforwards that otherwise would have been
 allowed to such a taxpayer under section 210-B of the tax  law  for  the
 2018 or subsequent taxable years shall be held in abeyance and be avail-
 able  to  such taxpayer if its election to be a federal S corporation is
 terminated. However, the taxpayer's taxable years as a New York S corpo-
 ration shall be counted for purposes of computing any time period appli-
 cable to the allowance  of  the  prior  net  operating  loss  conversion
 subtraction,  the  net  operating loss deduction or any credit carryfor-
 ward.
   § 16. This act shall take effect immediately and shall apply to  taxa-
 ble years beginning on or after January 1, 2018.
 
                                  PART Z
 
   Section  1.  Clause 1 of subparagraph (A) of paragraph 1 of subsection
 (b) of section 631 of the tax law, as added by section 1 of part F-1  of
 chapter 57 of the laws of 2009, is amended to read as follows:
   (1) For purposes of this subparagraph, the term "real property located
 in  this state" includes an interest in a partnership, limited liability
 corporation, S corporation, or non-publicly traded  C  corporation  with
 one  hundred  or fewer shareholders (hereinafter the "entity") that owns
 real property that is located in New York [and has a fair  market  value
 that] OR OWNS SHARES OF STOCK IN A COOPERATIVE HOUSING CORPORATION WHERE
 THE  COOPERATIVE  UNITS  RELATING TO THE SHARES ARE LOCATED IN NEW YORK;
 PROVIDED, THAT THE SUM OF THE FAIR MARKET VALUES OF SUCH REAL  PROPERTY,
 COOPERATIVE  SHARES,  AND  RELATED  COOPERATIVE  UNITS equals or exceeds
 fifty percent of all the assets of the entity on the  date  of  sale  or
 exchange  of  the  taxpayer's interest in the entity.  Only those assets
 that the entity owned for at least two years before the date of the sale
 or exchange of the taxpayer's interest in the entity are to be  used  in
 determining the fair market value of all the assets of the entity on the
 date of sale or exchange. The gain or loss derived from New York sources
 from the taxpayer's sale or exchange of an interest in an entity that is
 subject to the provisions of this subparagraph is the total gain or loss
 for federal income tax purposes from that sale or exchange multiplied by
 a  fraction, the numerator of which is the fair market value of the real
 property, AND THE COOPERATIVE  HOUSING  CORPORATION  STOCK  AND  RELATED
 COOPERATIVE  UNITS  located  in New York on the date of sale or exchange
 and the denominator of which is the fair market value of all the  assets
 of the entity on the date of sale or exchange.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2017.
 
                                  PART AA
 
   Section  1.  Paragraph  1  of subsection (a) of section 632 of the tax
 law, as amended by chapter 28 of the laws of 1987, is amended to read as
 follows:
   (1) In determining New York source income of a nonresident partner  of
 any  partnership,  there shall be included only the portion derived from
 or connected with New York sources of such partner's distributive  share
 of  items  of partnership income, gain, loss and deduction entering into
 his federal adjusted gross income, as such portion shall  be  determined

 A. 3009--B                         41
 
 under  regulations  of the tax commission consistent with the applicable
 rules of section six hundred thirty-one OF THIS PART.  IF A  NONRESIDENT
 IS A PARTNER IN A PARTNERSHIP WHERE A SALE OR TRANSFER OF THE MEMBERSHIP
 INTEREST  OF  THE  PARTNER  IS SUBJECT TO THE PROVISIONS OF SECTION ONE-
 THOUSAND SIXTY OF THE INTERNAL REVENUE CODE, THEN ANY GAIN RECOGNIZED ON
 THE SALE OR TRANSFER FOR FEDERAL INCOME TAX PURPOSES SHALL BE TREATED AS
 NEW YORK SOURCE INCOME ALLOCATED IN A MANNER CONSISTENT WITH THE  APPLI-
 CABLE  METHODS  AND  RULES FOR ALLOCATION UNDER THIS ARTICLE IN THE YEAR
 THAT THE ASSETS WERE SOLD OR TRANSFERRED.
   § 2. This act shall take effect immediately.
 
                                  PART BB
 
   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 OF THIS ARTICLE 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, OR BOOTH, AN INTER-
 NET WEBSITE, CATALOG, 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  OWNER-
 SHIP  INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN
 THE OTHER, OR WHERE AN OWNERSHIP INTEREST OF  MORE  THAN  FIVE  PERCENT,
 WHETHER  DIRECT  OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS BY ANOTHER
 PERSON OR BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED  PERSONS  WITH
 RESPECT  TO  EACH  OTHER.  NOTWITHSTANDING ANYTHING IN THIS PARAGRAPH, A
 PERSON WHO FACILITATES 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 FIFTEEN.
   (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

 A. 3009--B                         42
 
 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  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.
   § 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  SUBDIVISION;  AND (II) SHALL KEEP SUCH RECORDS AND
 INFORMATION AND COOPERATE WITH THE COMMISSIONER  TO  ENSURE  THE  PROPER
 COLLECTION  AND  REMITTANCE  OF  TAX IMPOSED COLLECTED OR REQUIRED TO BE
 COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER.
   (2) A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY  TO
 COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY
 SUBJECT  TO  TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF
 THIS ARTICLE AND SHALL NOT INCLUDE THE RECEIPTS FROM SUCH  SALE  IN  ITS
 TAXABLE  RECEIPTS  FOR  PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF
 THIS PART IF, IN REGARD TO SUCH SALE: (I)  THE  MARKETPLACE  SELLER  CAN
 SHOW  THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM
 SUCH SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED  CERTIFICATE
 OF  COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT
 THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT  SALES  TAX  AND  WILL
 COLLECT  SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY
 THE MARKETPLACE SELLER FACILITATED BY THE 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

 A. 3009--B                         43

 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  THE  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  MARKETPLACE  PROVIDER  ARE AFFILIATED WITHIN THE MEANING OF
 PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE  OF  THIS
 ARTICLE.
   § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as
 amended  by  section  46 of part K of chapter 61 of the laws of 2011, is
 amended to read as follows:
   (4) The return of a vendor of tangible personal property  or  services
 shall  show  such vendor's receipts from sales and the number of gallons
 of any motor fuel or diesel motor fuel sold and also the aggregate value
 of tangible personal property and services and number of gallons of such
 fuels sold by the vendor, the use of which is subject to tax under  this
 article,  and  the  amount  of  tax  payable  thereon  pursuant  to  the
 provisions of section eleven hundred  thirty-seven  of  this  part.  The
 return  of  a recipient of amusement charges shall show all such charges
 and the amount of tax thereon, and the return of an operator required to
 collect tax on rents shall show all rents received or  charged  and  the
 amount of tax thereon.  THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE
 THE  RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A
 MARKETPLACE PROVIDER IF, IN REGARD TO SUCH  SALE:  (A)  THE  MARKETPLACE
 SELLER  HAS  TIMELY  RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF-
 ICATE OF COLLECTION FROM THE MARKETPLACE  PROVIDER  OR  THE  MARKETPLACE
 PROVIDER  HAS  INCLUDED  A PROVISION APPROVED BY THE COMMISSIONER IN THE
 PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE  PROVIDER  AND  THE
 MARKETPLACE  SELLER  AS  DESCRIBED  IN SUBDIVISION (1) OF SECTION ELEVEN
 HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE
 MARKETPLACE SELLER TO  THE  MARKETPLACE  PROVIDER  ABOUT  SUCH  TANGIBLE
 PERSONAL PROPERTY IS ACCURATE.
   §  6.  Section 1142 of the tax law is amended by adding a new subdivi-
 sion 15 to read as follows:
   15. TO PUBLISH A LIST  ON  THE  DEPARTMENT'S  WEBSITE  OF  MARKETPLACE
 PROVIDERS WHOSE CERTIFICATE OF AUTHORITY HAS BEEN REVOKED AND, IF NECES-
 SARY  TO  PROTECT  SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHERWISE
 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

 A. 3009--B                         44
 
 BY PARAGRAPH TWO OF SUBDIVISION (1) OF SECTION ELEVEN HUNDRED THIRTY-TWO
 OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS NOT ON SUCH LIST AT
 THE COMMENCEMENT OF THE CALENDAR YEAR IN WHICH THE SALE WAS MADE.
   §  7. This act shall take effect September 1, 2017, and shall apply to
 sales made on or after that date.
 
                                  PART CC
 
   Section 1. Paragraph 4 of subdivision (b) of section 1101 of  the  tax
 law is amended by adding a new subparagraph (v) to read as follows:
   (V)  NOTWITHSTANDING  THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARA-
 GRAPH, THE FOLLOWING SALES OF TANGIBLE PERSONAL PROPERTY SHALL BE DEEMED
 TO BE RETAIL SALES: (A) A SALE TO  A  SINGLE  MEMBER  LIMITED  LIABILITY
 COMPANY  OR  A  SUBSIDIARY FOR RESALE TO ITS MEMBER OR OWNER, WHERE SUCH
 SINGLE MEMBER LIMITED LIABILITY COMPANY OR SUBSIDIARY IS DISREGARDED  AS
 AN ENTITY SEPARATE FROM ITS OWNER FOR FEDERAL INCOME TAX PURPOSES (WITH-
 OUT  REFERENCE TO ANY SPECIAL RULES RELATED TO THE IMPOSITION OF CERTAIN
 FEDERAL TAXES), INCLUDING BUT NOT  LIMITED  TO  CERTAIN  EMPLOYMENT  AND
 EXCISE  TAXES;  (B) A SALE TO A PARTNERSHIP FOR RESALE TO ONE OR MORE OF
 ITS PARTNERS; OR (C) A SALE TO A TRUSTEE OF A TRUST FOR RESALE TO ONE OR
 MORE BENEFICIARIES OF SUCH TRUST.
   § 2. Subdivision 2 of section 1118 of  the  tax  law,  as  amended  by
 section  4  of subpart B of part S of chapter 57 of the laws of 2010, is
 amended to read as follows:
   (2)(A) In respect to the use of property or services purchased by  the
 user  while  a nonresident of this state, except in the case of tangible
 personal property or services which the user, in the  performance  of  a
 contract, incorporates into real property located in the state. A person
 while engaged in any manner in carrying on in this state any employment,
 trade,  business  or  profession, shall not be deemed a nonresident with
 respect to the use in this state of property or services in such employ-
 ment, trade, business or profession. This exemption does  not  apply  to
 the  use of qualified property where the qualified property is purchased
 primarily to carry individuals, whether or not for hire, who are agents,
 employees,  officers,  shareholders,  members,  managers,  partners,  or
 directors  of  (A)  the  purchaser, where any of those individuals was a
 resident of this state when the qualified property was purchased or  (B)
 any  affiliated  person  that was a resident when the qualified property
 was purchased. For purposes of this subdivision: (i) persons are  affil-
 iated persons with respect to each other where one of the persons has an
 ownership  interest  of  more than five percent, whether direct or indi-
 rect, in the other, or where an ownership interest  of  more  than  five
 percent,  whether  direct or indirect, is held in each of the persons by
 another person or by a  group  of  other  persons  that  are  affiliated
 persons  with  respect  to  each  other; (ii) "qualified property" means
 [aircraft,] vessels and motor vehicles; and (iii) "carry" means to  take
 any  person from one point to another, whether for the business purposes
 or pleasure of that person. For an exception to the exclusions from  the
 definition  of  "retail  sale" applicable to [aircraft and] vessels, see
 subdivision (q) of section eleven hundred eleven of this article.
   (B) NOTWITHSTANDING ANY PROVISION OF THIS ARTICLE TO THE CONTRARY, THE
 EXCLUSION IN PARAGRAPH (A) OF THIS SUBDIVISION SHALL NOT  APPLY  TO  THE
 USE  WITHIN  THE  STATE  OF PROPERTY OR A SERVICE PURCHASED OUTSIDE THIS
 STATE BY A NONRESIDENT THAT IS NOT AN INDIVIDUAL, UNLESS  SUCH  NONRESI-
 DENT  HAS  BEEN DOING BUSINESS OUTSIDE THE STATE FOR AT LEAST SIX MONTHS

 A. 3009--B                         45
 
 PRIOR TO THE DATE SUCH NONRESIDENT BROUGHT SUCH PROPERTY OR SERVICE INTO
 THIS STATE.
   § 3. This act shall take effect immediately.
 
                                  PART DD

   Section  1. Section 1105-C of the tax law, as added by section 24-a of
 part Y of chapter 63 of the laws of 2000, and subdivision (d)  as  added
 by  section 1 of part B of chapter 85 of the laws of 2002, is amended to
 read as follows:
   § 1105-C. Reduced tax rates with respect to certain  gas  service  and
 electric  service.  Notwithstanding any other provisions of this article
 or article twenty-nine of this chapter:
   (a) The rates of taxes imposed by this article  and  pursuant  to  the
 authority  of article twenty-nine of this chapter on receipts from every
 sale of gas service or electric service of  whatever  nature  (including
 the  transportation, transmission or distribution of gas or electricity,
 but not including gas or electricity) shall be  [reduced  each  year  on
 September first, beginning in the year two thousand, and each year ther-
 eafter,  at  the  rate  per  year of twenty-five percent of the rates in
 effect on September first, two thousand, so that the rates of such taxes
 on such receipts shall be] zero percent [on and after  September  first,
 two  thousand  three] UNLESS THE CHARGE IS BY THE VENDOR FOR TRANSPORTA-
 TION, TRANSMISSION OR DISTRIBUTION, REGARDLESS OF WHETHER  SUCH  CHARGES
 ARE  SEPARATELY  STATED  IN THE WRITTEN CONTRACT, IF ANY, OR ON THE BILL
 RENDERED TO SUCH PURCHASER AND REGARDLESS OF  WHETHER  SUCH  TRANSPORTA-
 TION,  TRANSMISSION,  OR  DISTRIBUTION  IS  PROVIDED BY SUCH VENDOR OR A
 THIRD PARTY.
   (b) [The provisions of subdivision (b) of section eleven  hundred  six
 of  this  article shall apply to the reduced rates described in subdivi-
 sion (a) of this section, as if such section referred to  this  section,
 provided  that  any  reference in subdivision (b) of such section eleven
 hundred six to the date August first, nineteen hundred sixty-five, shall
 be deemed to refer, respectively, to September first of  the  applicable
 years described in subdivision (a) of this section, and any reference in
 subdivision (b) of such section eleven hundred six to July thirty-first,
 nineteen  hundred  sixty-five, shall be deemed to refer to the day imme-
 diately preceding each such September first, respectively.
   (c) Nothing in this section shall be deemed to exempt from  the  taxes
 imposed under this article or pursuant to the authority of article twen-
 ty-nine  of this chapter any transaction which may not be subject to the
 reduced rates of such taxes, each year, as set forth in subdivision  (a)
 of this section in effect on the respective September first.
   (d)]  For  [the purpose] PURPOSES of [the reduced rate of tax provided
 by] subdivision (a) of this section, [the following  shall  apply  to  a
 sale,  other  than  a sale for resale, of the] WHERE THE transportation,
 transmission or distribution of gas or  electricity  [by  a  vendor  not
 subject  to  the supervision of the public service commission where such
 transportation, transmission or distribution service being] IS sold [is]
 wholly within a service area of the state  wherein  the  public  service
 commission  [shall  have] HAS approved by formal order a single retailer
 model for the regulated utility which has the  responsibility  to  serve
 that  area[.  Where  such  a  vendor makes a sale, other than a sale for
 resale, of gas or electricity to be delivered to a customer within  such
 service  area  and,  for  the  purpose  of transporting, transmitting or
 distributing such gas or electricity, also makes a sale  of  transporta-

 A. 3009--B                         46

 tion, transmission or distribution service to such customer], the charge
 for  [the]  SUCH transportation, transmission or distribution [of gas or
 electricity wholly  within  such  service  area  made  by  such  vendor,
 notwithstanding  paragraph  three  of  subdivision (b) of section eleven
 hundred one of this article, shall not be included in  the  receipt  for
 such  gas or electricity, and, therefore,] WHEN MADE BY THE PROVIDER WHO
 ALSO SELLS, OTHER THAN AS A SALE FOR RESALE,  THE  GAS  OR  ELECTRICITY,
 shall qualify for such reduced rate.
   § 2. This act shall take effect immediately.
 
                                  PART EE
 
   Section 1. Subdivision 1 of section 186-f of the tax law is amended by
 adding three new paragraphs (f), (g) and (h) to read as follows:
   (F)  "PREPAID  WIRELESS COMMUNICATIONS SELLER" MEANS A PERSON MAKING A
 RETAIL SALE OF PREPAID WIRELESS  COMMUNICATIONS  SERVICE  OR  A  PREPAID
 WIRELESS COMMUNICATIONS DEVICE.
   (G)  "PREPAID WIRELESS COMMUNICATIONS DEVICE" MEANS ANY EQUIPMENT USED
 TO ACCESS A PREPAID WIRELESS COMMUNICATIONS SERVICE.
   (H) "PREPAID WIRELESS COMMUNICATIONS SERVICE" MEANS A  PREPAID  MOBILE
 CALLING SERVICE AS DEFINED IN PARAGRAPH TWENTY-TWO OF SUBDIVISION (B) OF
 SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER.
   §  2.  Subdivision  2  of  section  186-f  of the tax law, as added by
 section 3 of part B of chapter 56 of the laws of  2009,  is  amended  to
 read as follows:
   2.  Public  safety  communications  surcharge.  (a) (1) A surcharge on
 wireless communications service provided to  a  wireless  communications
 customer  with  a  place  of primary use in this state is imposed at the
 rate of one dollar and twenty cents per month on each wireless  communi-
 cations  device  in service during any part of each month. The surcharge
 must be reflected and made payable on bills  rendered  to  the  wireless
 communications customer for wireless communication service.
   [(b)]  (2)  Each  wireless  communications  service supplier providing
 wireless communications  service  in  New  York  state  must  act  as  a
 collection  agent for the state for the collection of the surcharge. The
 wireless communications service supplier  has  no  legal  obligation  to
 enforce  the  collection  of  the surcharge from its customers. However,
 each wireless communications service supplier must  collect  and  retain
 the  name  and  address  of  any wireless communications customer with a
 place of primary use in this state that refuses  or  fails  to  pay  the
 surcharge,  as  well as the cumulative amount of the surcharge remaining
 unpaid, and must provide this information to  the  commissioner  at  the
 time  and  according to the procedures the commissioner may provide. The
 surcharge must be reported and paid to the commissioner on  a  quarterly
 basis  on  or before the fifteenth day of the month following each quar-
 terly period ending on the last day of February, May, August and  Novem-
 ber,  respectively.  The payments must be accompanied by a return in the
 form and containing the information the commissioner may prescribe.
   [(c)] (3) The surcharge must be added as a separate line item to bills
 furnished by a wireless communications service supplier to  its  custom-
 ers,  and  must  be  identified  as  the  "public  safety communications
 surcharge". Each wireless communications customer who is subject to  the
 provisions of this section remains liable to the state for the surcharge
 due  under this section until it has been paid to the state, except that
 payment to a wireless communications service supplier is  sufficient  to
 relieve the customer from further liability for the surcharge.

 A. 3009--B                         47
 
   [(d)  Each  wireless  communications  service  supplier is entitled to
 retain, as an administrative fee, an amount  equal  to  two  percent  of
 fifty-eight  and  three-tenths  percent  of the total collections of the
 surcharge imposed by this section, provided that the supplier files  any
 required  return  and remits the surcharge due to the commissioner on or
 before its due date.]
   (B)(1) A SURCHARGE IS IMPOSED ON THE RETAIL SALE OF EACH PREPAID WIRE-
 LESS COMMUNICATIONS SERVICE OR DEVICE AT THE RATE OF:  (I)  SIXTY  CENTS
 PER RETAIL SALE THAT DOES NOT EXCEED THIRTY DOLLARS; AND (II) ONE DOLLAR
 AND TWENTY CENTS PER RETAIL SALE THAT EXCEEDS THIRTY DOLLARS.
   (2)  FOR  PURPOSES  OF  THIS  PARAGRAPH,  A SALE OF A PREPAID WIRELESS
 COMMUNICATIONS SERVICE OR DEVICE OCCURS IN THIS STATE IF THE SALE  TAKES
 PLACE AT A SELLER'S BUSINESS LOCATION IN THE STATE. IF THE SALE DOES NOT
 TAKE  PLACE  AT THE SELLER'S PLACE OF BUSINESS, IT SHALL BE CONCLUSIVELY
 DETERMINED TO TAKE PLACE AT THE  PURCHASER'S  SHIPPING  ADDRESS  OR,  IF
 THERE IS NO ITEM SHIPPED, AT THE PURCHASER'S BILLING ADDRESS, OR, IF THE
 SELLER  DOES  NOT  HAVE THAT ADDRESS, AT SUCH ADDRESS AS APPROVED BY THE
 COMMISSIONER THAT REASONABLY REFLECTS THE  CUSTOMER'S  LOCATION  AT  THE
 TIME  OF  THE  SALE  OF  THE  PREPAID WIRELESS COMMUNICATIONS SERVICE OR
 DEVICE.
   (3) EACH PREPAID WIRELESS COMMUNICATIONS SELLER IN NEW YORK STATE MUST
 ACT AS A COLLECTION AGENT FOR  THE  STATE  FOR  THE  COLLECTION  OF  THE
 SURCHARGE.   THE SURCHARGE MUST BE REPORTED AND PAID TO THE COMMISSIONER
 ON A QUARTERLY BASIS ON OR BEFORE THE FIFTEENTH DAY OF THE MONTH FOLLOW-
 ING EACH QUARTERLY PERIOD ENDING ON  THE  LAST  DAY  OF  FEBRUARY,  MAY,
 AUGUST AND NOVEMBER, RESPECTIVELY. THE PAYMENTS MUST BE ACCOMPANIED BY A
 RETURN  IN  THE FORM AND CONTAINING THE INFORMATION THE COMMISSIONER MAY
 PRESCRIBE.
   (4) THE SURCHARGE MUST BE ADDED AS A SEPARATE LINE  ITEM  TO  A  SALES
 SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE, IF ANY, THAT IS
 FURNISHED  BY  A  PREPAID WIRELESS COMMUNICATIONS SELLER TO A PURCHASER,
 AND MUST BE IDENTIFIED AS THE "PUBLIC SAFETY COMMUNICATIONS  SURCHARGE."
 EACH PURCHASER OF A PREPAID WIRELESS COMMUNICATIONS SERVICE OR DEVICE IN
 THIS  STATE REMAINS LIABLE TO THE STATE FOR THE SURCHARGE DUE UNDER THIS
 SECTION UNTIL IT HAS BEEN PAID TO THE STATE, EXCEPT THAT  PAYMENT  TO  A
 PREPAID  WIRELESS  COMMUNICATIONS  SELLER  IS  SUFFICIENT TO RELIEVE THE
 PURCHASER FROM FURTHER LIABILITY FOR SUCH SURCHARGE.
   § 3.  The county law is amended by adding a new section 309 to read as
 follows:
   § 309. ESTABLISHMENT OF PREPAID WIRELESS SURCHARGE FOR  SYSTEM  COSTS.
 1.  DEFINITIONS.  WHEN USED IN THIS ARTICLE, WHERE NOT OTHERWISE SPECIF-
 ICALLY DEFINED AND UNLESS THE SPECIFIC CONTEXT CLEARLY INDICATES  OTHER-
 WISE:
   (A)  "PREPAID  WIRELESS COMMUNICATIONS SELLER" MEANS A PERSON MAKING A
 RETAIL SALE OF PREPAID WIRELESS  COMMUNICATIONS  SERVICE  OR  A  PREPAID
 WIRELESS COMMUNICATIONS DEVICE.
   (B)  "PREPAID WIRELESS COMMUNICATIONS DEVICE" MEANS ANY EQUIPMENT USED
 TO ACCESS A PREPAID WIRELESS COMMUNICATIONS SERVICE.
   (C) "PREPAID WIRELESS COMMUNICATIONS SERVICE" MEANS A  PREPAID  MOBILE
 CALLING SERVICE AS DEFINED IN PARAGRAPH TWENTY-TWO OF SUBDIVISION (B) OF
 SECTION ELEVEN HUNDRED ONE OF THE TAX LAW.
   2.  NOTWITHSTANDING  THE  PROVISIONS  OF  ANY LAW TO THE CONTRARY, ANY
 MUNICIPALITY, AS DEFINED IN SECTION THREE HUNDRED ONE OF  THIS  ARTICLE,
 THAT  IS  AUTHORIZED  TO  IMPOSE  AN ENHANCED EMERGENCY TELEPHONE SYSTEM
 SURCHARGE ON WIRELESS COMMUNICATIONS  SERVICE  UNDER  THIS  ARTICLE,  IS
 HEREBY  AUTHORIZED  AND  EMPOWERED TO ADOPT, AMEND OR REPEAL LOCAL LAWS,

 A. 3009--B                         48
 
 ACTING THROUGH ITS BOARD, TO IMPOSE A SURCHARGE ON THE  RETAIL  SALE  OF
 EACH PREPAID WIRELESS COMMUNICATIONS SERVICE OR DEVICE, IN AN AMOUNT NOT
 TO  EXCEED  THIRTY  CENTS  PER RETAIL SALE WITHIN SUCH MUNICIPALITY. THE
 PROCEEDS  FROM SUCH SURCHARGE SHALL BE USED TO PAY FOR THE COSTS ASSOCI-
 ATED WITH OBTAINING, OPERATING  AND  MAINTAINING  THE  TELECOMMUNICATION
 EQUIPMENT AND TELEPHONE SERVICES NEEDED TO PROVIDE AN ENHANCED 911 EMER-
 GENCY TELEPHONE SYSTEM TO SERVE SUCH MUNICIPALITY.
   3. FOR PURPOSES OF THIS SECTION, A SALE OF A PREPAID WIRELESS COMMUNI-
 CATIONS  SERVICE  OR  DEVICE  OCCURS IN A MUNICIPALITY IF THE SALE TAKES
 PLACE AT A SELLER'S BUSINESS LOCATION IN THE MUNICIPALITY. IF  THE  SALE
 DOES  NOT  TAKE  PLACE  AT  THE  SELLER'S PLACE OF BUSINESS, IT SHALL BE
 CONCLUSIVELY DETERMINED  TO  TAKE  PLACE  AT  THE  PURCHASER'S  SHIPPING
 ADDRESS  IN  THE  MUNICIPALITY  OR,  IF THERE IS NO ITEM SHIPPED, AT THE
 PURCHASER'S BILLING ADDRESS IN THE MUNICIPALITY, OR, IF THE SELLER  DOES
 NOT  HAVE  THAT  ADDRESS,  AT  SUCH ADDRESS THAT REASONABLY REFLECTS THE
 CUSTOMER'S LOCATION AT THE TIME OF THE  SALE  OF  THE  PREPAID  WIRELESS
 COMMUNICATIONS SERVICE OR DEVICE.
   4.  ANY SUCH LOCAL LAW SHALL STATE THE AMOUNT OF THE SURCHARGE AND THE
 DATE ON WHICH SELLERS IN THE MUNICIPALITY SHALL BEGIN  TO  COLLECT  SUCH
 SURCHARGE.  ANY  SELLER  OF A PREPAID WIRELESS COMMUNICATIONS SERVICE OR
 DEVICE WITHIN A MUNICIPALITY THAT HAS IMPOSED A  SURCHARGE  PURSUANT  TO
 THE  PROVISIONS  OF  THIS SECTION SHALL BE GIVEN A MINIMUM OF FORTY-FIVE
 DAYS WRITTEN NOTICE PRIOR TO THE DATE IT SHALL BE REQUIRED TO  BEGIN  TO
 COLLECT  SUCH SURCHARGE OR PRIOR TO ANY MODIFICATION TO OR CHANGE IN THE
 SURCHARGE AMOUNT.
   5. (A) EACH PREPAID WIRELESS COMMUNICATIONS SELLER IN  A  MUNICIPALITY
 SHALL  ACT AS COLLECTION AGENT FOR SUCH MUNICIPALITY AND SHALL REMIT THE
 FUNDS COLLECTED PURSUANT TO A SURCHARGE IMPOSED UNDER THE PROVISIONS  OF
 THIS  SECTION  TO  THE  CHIEF  FISCAL  OFFICER OF THE MUNICIPALITY EVERY
 MONTH.  SUCH FUNDS SHALL BE REMITTED NO LATER THAN THIRTY DAYS AFTER THE
 LAST BUSINESS DAY OF THE MONTH.
   (B) THE SELLER SHALL BE ENTITLED TO RETAIN, AS AN ADMINISTRATIVE  FEE,
 AN  AMOUNT  EQUAL  TO  TWO  PERCENT  OF ITS COLLECTIONS OF THE SURCHARGE
 IMPOSED UNDER THIS ARTICLE.
   (C) THE SURCHARGE SHALL BE ADDED TO AND STATED SEPARATELY ON  A  SALES
 SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE, IF ANY, THAT IS
 PROVIDED TO THE PURCHASER.
   (D)  THE SELLER SHALL PROVIDE TO THE MUNICIPALITY AN ACCOUNTING OF THE
 SURCHARGE AMOUNTS COLLECTED NO MORE FREQUENTLY THAN ANNUALLY UPON  WRIT-
 TEN REQUEST FROM THE MUNICIPALITY'S CHIEF FISCAL OFFICER.
   (E)  EACH  PURCHASER  OF  A PREPAID WIRELESS COMMUNICATIONS SERVICE OR
 DEVICE IN A MUNICIPALITY THAT HAS IMPOSED SUCH SURCHARGE SHALL BE LIABLE
 TO THE MUNICIPALITY FOR THE SURCHARGE UNTIL IT  HAS  BEEN  PAID  TO  THE
 MUNICIPALITY,  EXCEPT  THAT PAYMENT TO A PREPAID WIRELESS COMMUNICATIONS
 SELLER IS SUFFICIENT TO RELIEVE THE PURCHASER FROM FURTHER LIABILITY FOR
 SUCH SURCHARGE.
   6. ALL SURCHARGE MONIES REMITTED TO A MUNICIPALITY BY A PREPAID  WIRE-
 LESS  COMMUNICATIONS SELLER SHALL BE EXPENDED ONLY UPON AUTHORIZATION OF
 THE LEGISLATIVE BODY OF A MUNICIPALITY AND ONLY FOR PAYMENT OF  ELIGIBLE
 WIRELESS  911 SERVICE COSTS AS DEFINED IN SUBDIVISION SIXTEEN OF SECTION
 THREE HUNDRED TWENTY-FIVE OF THIS CHAPTER. THE MUNICIPALITY SHALL  SEPA-
 RATELY ACCOUNT FOR AND KEEP ADEQUATE BOOKS AND RECORDS OF THE AMOUNT AND
 SOURCE OF ALL SUCH MONIES AND OF THE AMOUNT AND OBJECT OR PURPOSE OF ALL
 EXPENDITURES  THEREOF.  IF,  AT  THE  END  OF ANY FISCAL YEAR, THE TOTAL
 AMOUNT OF ALL SUCH MONIES EXCEEDS THE AMOUNT NECESSARY  FOR  PAYMENT  OF
 THE  ABOVE  MENTIONED  COSTS  IN  SUCH FISCAL YEAR, SUCH EXCESS SHALL BE

 A. 3009--B                         49
 
 RESERVED AND CARRIED OVER FOR THE PAYMENT OF THOSE COSTS IN THE  FOLLOW-
 ING FISCAL YEAR.
   § 4. This act shall take effect December 1, 2017.
 
                                  PART FF
 
   Section  1.  Subdivision 8 of section 1399-n of the public health law,
 as amended by chapter 13 of the laws of  2003,  is  amended  and  a  new
 subdivision 9 is added to read as follows:
   8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
 any other matter or substance which contains tobacco, THE BURNING OF  AN
 HERBAL CIGARETTE, OR THE USE OF A VAPOR PRODUCT.
   9.  "VAPOR PRODUCT" MEANS 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 THOUSAND THREE
 HUNDRED SIXTY-TWO OF THIS CHAPTER.
   § 2. The article heading of article 13-F of the public health law,  as
 amended  by  chapter  448  of  the  laws  of 2012, is amended to read as
 follows:
      REGULATION OF TOBACCO PRODUCTS, HERBAL CIGARETTES AND [SMOKING
           PARAPHERNALIA] VAPOR PRODUCTS; DISTRIBUTION TO MINORS
   § 3. Subdivisions 5, 8, and 13 of section 1399-aa of the public health
 law, subdivision 5 as amended by chapter 152 of the laws of 2004, subdi-
 vision 8 as added by chapter 13 of the laws of 2003, and subdivision  13
 as  amended  by  chapter 542 of the laws of 2014, are amended to read as
 follows:
   5. "Tobacco products" means one or more cigarettes or  cigars,  bidis,
 chewing  tobacco,  powdered tobacco, SHISHA, nicotine water or any other
 PRODUCT CONTAINING OR DERIVED FROM tobacco [products].
   8. "Tobacco business" means a sole proprietorship, corporation, limit-
 ed liability company, partnership  or  other  enterprise  in  which  the
 primary  activity  is  the  sale,  manufacture  or promotion of tobacco,
 tobacco products, VAPOR PRODUCTS, and accessories, either  at  wholesale
 or  retail,  and  in  which  the sale, manufacture or promotion of other
 products is merely incidental.
   13. ["Electronic  cigarette"  or  "e-cigarette"  means  an  electronic
 device  that  delivers vapor which is inhaled by an individual user, and
 shall include any refill, cartridge and any other component  of  such  a
 device.] "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARD-
 LESS  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  THOUSAND  THREE
 HUNDRED SIXTY-TWO OF THIS CHAPTER.
   §  4.  Section 1399-bb of the public health law, as amended by chapter
 508 of the laws of 2000, subdivision 2 as amended by chapter 13  of  the
 laws of 2003, is amended to read as follows:
   §  1399-bb.  Distribution of tobacco products [or], herbal cigarettes,
 OR VAPOR PRODUCTS without charge. 1. No person engaged in  the  business
 of selling or otherwise distributing tobacco products [or], herbal ciga-

 A. 3009--B                         50
 
 rettes,  OR  VAPOR  PRODUCTS  for  commercial  purposes, or any agent or
 employee of such person, shall knowingly, in furtherance of  such  busi-
 ness:
   (a)  distribute without charge any tobacco products [or], herbal ciga-
 rettes, OR VAPOR PRODUCTS to any individual, provided that the  distrib-
 ution  of a package containing tobacco products [or], herbal cigarettes,
 OR VAPOR PRODUCTS in violation of this subdivision  shall  constitute  a
 single  violation  without regard to the number of items in the package;
 or
   (b) distribute coupons which are redeemable for tobacco products [or],
 herbal cigarettes, OR VAPOR PRODUCTS to any  individual,  provided  that
 this  subdivision  shall  not  apply to coupons contained in newspapers,
 magazines or other types of publications, coupons obtained  through  the
 purchase  of tobacco products [or], herbal cigarettes, OR VAPOR PRODUCTS
 or obtained at locations which sell tobacco products [or], herbal  ciga-
 rettes, OR VAPOR PRODUCTS provided that such distribution is confined to
 a designated area or to coupons sent through the mail.
   2. The prohibitions contained in subdivision one of this section shall
 not apply to the following locations:
   (a)  private  social functions when seating arrangements are under the
 control of the sponsor of the function  and  not  the  owner,  operator,
 manager or person in charge of such indoor area;
   (b)  conventions  and  trade  shows; provided that the distribution is
 confined to designated areas generally accessible only to  persons  over
 the age of eighteen;
   (c) events sponsored by tobacco [or], herbal cigarette, OR VAPOR PROD-
 UCT  manufacturers  provided that the distribution is confined to desig-
 nated areas generally accessible only to persons over the age  of  eigh-
 teen;
   (d)  bars  as  defined  in subdivision one of section thirteen hundred
 ninety-nine-n of this chapter;
   (e) tobacco businesses as defined  in  subdivision  eight  of  section
 thirteen hundred ninety-nine-aa of this article;
   (f)  factories  as  defined  in  subdivision  nine of section thirteen
 hundred ninety-nine-aa of this article and construction sites;  provided
 that the distribution is confined to designated areas generally accessi-
 ble only to persons over the age of eighteen.
   3.   No   person   shall  distribute  tobacco  products  [or],  herbal
 cigarettes, OR VAPOR PRODUCTS at the locations set forth  in  paragraphs
 (b),  (c)  and (f) of subdivision two of this section unless such person
 gives five days written notice to the enforcement officer.
   4. The distribution of tobacco products [or],  herbal  cigarettes,  OR
 VAPOR PRODUCTS pursuant to subdivision two of this section shall be made
 only  to  an individual who demonstrates, through (A) a driver's license
 or [other photographic] NON-DRIVER'S identification card  issued  by  [a
 government  entity or educational institution] THE COMMISSIONER OF MOTOR
 VEHICLES, THE FEDERAL GOVERNMENT, ANY UNITED STATES  TERRITORY,  COMMON-
 WEALTH OR POSSESSION, THE DISTRICT OF COLUMBIA, A STATE GOVERNMENT WITH-
 IN THE UNITED STATES OR A PROVINCIAL GOVERNMENT OF THE DOMINION OF CANA-
 DA,  OR  (B)  A VALID PASSPORT ISSUED BY THE UNITED STATES GOVERNMENT OR
 ANY OTHER COUNTRY, OR (C) AN IDENTIFICATION CARD  ISSUED  BY  THE  ARMED
 FORCES  OF THE UNITED STATES, indicating that the individual is at least
 eighteen years of age. Such identification need not be required  of  any
 individual  who  reasonably  appears to be at least twenty-five years of
 age; provided, however, that such  appearance  shall  not  constitute  a

 A. 3009--B                         51
 
 defense  in  any proceeding alleging the sale of a tobacco product [or],
 herbal cigarette, OR VAPOR PRODUCTS to an individual.
   §  5. The section heading of section 1399-cc of the public health law,
 as amended by chapter 542 of the laws of 2014, is  amended  to  read  as
 follows:
   Sale of tobacco products, herbal cigarettes, [liquid nicotine, shisha,
 rolling  papers]  VAPOR  PRODUCTS  or  smoking  paraphernalia  to minors
 prohibited.
   § 6. Subdivisions 2, 3, 4, and 7 of  section  1399-cc  of  the  public
 health  law,  as amended by chapter 542 of the laws of 2014, are amended
 to read as follows:
   2. Any person operating a place of business wherein tobacco  products,
 herbal  cigarettes, [liquid nicotine, shisha] or [electronic cigarettes]
 VAPOR PRODUCTS, are sold or offered for sale is prohibited from  selling
 such  products,  herbal cigarettes, [liquid nicotine, shisha, electronic
 cigarettes] VAPOR PRODUCTS or smoking paraphernalia to individuals under
 eighteen years of age, and shall post in a conspicuous place a sign upon
 which there shall be imprinted the following statement, "SALE  OF  CIGA-
 RETTES,  CIGARS,  [CHEWING  TOBACCO,  POWDERED TOBACCO,] SHISHA OR OTHER
 TOBACCO PRODUCTS, HERBAL CIGARETTES, [LIQUID NICOTINE, ELECTRONIC  CIGA-
 RETTES]  VAPOR  PRODUCTS,  [ROLLING PAPERS] OR SMOKING PARAPHERNALIA, TO
 PERSONS UNDER EIGHTEEN YEARS OF AGE IS PROHIBITED  BY  LAW."  Such  sign
 shall  be  printed on a white card in red letters at least one-half inch
 in height.
   3. Sale of tobacco  products,  herbal  cigarettes,  [liquid  nicotine,
 shisha]  or [electronic cigarettes] VAPOR PRODUCTS in such places, other
 than by a vending machine, shall be  made  only  to  an  individual  who
 demonstrates, through (a) a valid driver's license or non-driver's iden-
 tification card issued by the commissioner of motor vehicles, the feder-
 al  government, any United States territory, commonwealth or possession,
 the District of Columbia, a state government within the United States or
 a provincial government of the dominion of Canada, or (b) a valid  pass-
 port issued by the United States government or any other country, or (c)
 an  identification card issued by the armed forces of the United States,
 indicating that the individual is at least eighteen years of  age.  Such
 identification  need  not  be  required of any individual who reasonably
 appears to be at least twenty-five years of age, provided, however, that
 such appearance shall not constitute a defense in any proceeding  alleg-
 ing  the sale of a tobacco product, herbal cigarettes, [liquid nicotine,
 shisha] or [electronic cigarettes] VAPOR PRODUCTS to an individual under
 eighteen years of age.
   4. (a) Any person  operating  a  place  of  business  wherein  tobacco
 products,  herbal  cigarettes,  [liquid nicotine, shisha] or [electronic
 cigarettes] VAPOR PRODUCTS are sold or offered for sale  may  perform  a
 transaction scan as a precondition for such purchases.
   (b)  In  any  instance  where the information deciphered by the trans-
 action scan fails to match  the  information  printed  on  the  driver's
 license  or  non-driver  identification card, or if the transaction scan
 indicates that the information is false  or  fraudulent,  the  attempted
 transaction shall be denied.
   (c)  In  any  proceeding  pursuant to section thirteen hundred ninety-
 nine-ee of this article, it shall be an affirmative  defense  that  such
 person had produced a driver's license or non-driver identification card
 apparently  issued by a governmental entity, successfully completed that
 transaction scan, and that the tobacco product,  herbal  cigarettes  [or
 liquid nicotine], OR VAPOR PRODUCTS had been sold, delivered or given to

 A. 3009--B                         52
 
 such  person  in reasonable reliance upon such identification and trans-
 action scan. In evaluating the applicability of such affirmative defense
 the commissioner  shall  take  into  consideration  any  written  policy
 adopted  and  implemented  by the seller to effectuate the provisions of
 this chapter. Use of a transaction scan  shall  not  excuse  any  person
 operating  a  place  of  business wherein tobacco products, herbal ciga-
 rettes, [liquid  nicotine,  shisha]  or  [electronic  cigarettes]  VAPOR
 PRODUCTS  are  sold,  or  the agent or employee of such person, from the
 exercise of reasonable diligence otherwise  required  by  this  chapter.
 Notwithstanding the above provisions, any such affirmative defense shall
 not  be  applicable in any civil or criminal proceeding, or in any other
 forum.
   7. No person operating a place of business wherein  tobacco  products,
 herbal  cigarettes, [liquid nicotine, shisha] or [electronic cigarettes]
 VAPOR PRODUCTS are sold or offered for sale shall  sell,  permit  to  be
 sold,  offer  for  sale  or display for sale any tobacco product, herbal
 cigarettes, [liquid nicotine, shisha] or [electronic  cigarettes]  VAPOR
 PRODUCTS  in  any manner, unless such products and cigarettes are stored
 for sale (a) behind a counter in an area accessible only to the  person-
 nel  of  such business, or (b) in a locked container; provided, however,
 such restriction shall not apply to tobacco businesses,  as  defined  in
 subdivision  eight  of  section  thirteen hundred ninety-nine-aa of this
 article, and to places to which admission is restricted to persons eigh-
 teen years of age or older.
   § 7. Section 1399-dd of the public health law, as amended  by  chapter
 448 of the laws of 2012, is amended to read as follows:
   §  1399-dd. Sale of tobacco products, herbal cigarettes or [electronic
 cigarettes] VAPOR PRODUCTS in vending machines.  No person, firm,  part-
 nership,  company  or  corporation shall operate a vending machine which
 dispenses tobacco products, herbal cigarettes or [electronic cigarettes]
 VAPOR PRODUCTS unless such machine is located: (a) in a bar  as  defined
 in  subdivision  one  of  section thirteen hundred ninety-nine-n of this
 chapter, or the bar area of a food service establishment with  a  valid,
 on-premises full liquor license; (b) in a private club; (c) in a tobacco
 business  as  defined  in  subdivision eight of section thirteen hundred
 ninety-nine-aa of this article; or (d) in a place  of  employment  which
 has  an  insignificant  portion  of  its  regular workforce comprised of
 people under the age of eighteen years and only in such  locations  that
 are  not  accessible  to  the general public; provided, however, that in
 such locations the vending machine is located in plain  view  and  under
 the  direct  supervision  and  control  of  the  person in charge of the
 location or his or her designated agent or employee.
   § 8. Subdivision 2 of section 1399-ee of the  public  health  law,  as
 amended  by  chapter  162  of  the  laws  of 2002, is amended to read as
 follows:
   2. If the enforcement  officer  determines  after  a  hearing  that  a
 violation  of  this article has occurred, he or she shall impose a civil
 penalty of a minimum of three hundred dollars, but  not  to  exceed  one
 thousand  dollars  for  a first violation, and a minimum of five hundred
 dollars, but not to exceed one thousand five hundred  dollars  for  each
 subsequent  violation,  unless a different penalty is otherwise provided
 in this article. The enforcement officer shall advise the retail  dealer
 that  upon  the  accumulation  of  three or more points pursuant to this
 section the department of taxation and finance shall suspend  the  deal-
 er's registration. If the enforcement officer determines after a hearing
 that  a  retail  dealer  was  selling tobacco products OR VAPOR PRODUCTS

 A. 3009--B                         53
 
 while their registration was suspended or permanently  revoked  pursuant
 to  subdivision  three or four of this section, he or she shall impose a
 civil penalty of twenty-five hundred dollars.
   § 8-a. Paragraph (a) of subdivision 3 of section 1399-ee of the public
 health law, as amended by chapter 162 of the laws of 2002, is amended to
 read as follows:
   (a) Imposition of points. If the enforcement officer determines, after
 a  hearing,  that  the  retail  dealer violated subdivision [one] TWO of
 section thirteen hundred ninety-nine-cc of this article with respect  to
 a  prohibited  sale to a minor, he or she shall, in addition to imposing
 any other penalty required or permitted pursuant to this section, assign
 two points to the  retail  dealer's  record  where  the  individual  who
 committed  the violation did not hold a certificate of completion from a
 state certified tobacco sales training program and one point  where  the
 retail  dealer  demonstrates that the person who committed the violation
 held a certificate of completion from a state  certified  tobacco  sales
 training program.
   §  9.  Subdivision  1  of section 1399-ff of the public health law, as
 amended by chapter 448 of the laws  of  2012,  is  amended  to  read  as
 follows:
   1.  Where  a  civil  penalty  for  a  particular incident has not been
 imposed or an enforcement action regarding an alleged  violation  for  a
 particular  incident is not pending under section thirteen hundred nine-
 ty-nine-ee of this article, a parent or guardian  of  a  minor  to  whom
 tobacco  products,  herbal  cigarettes  or [electronic cigarettes] VAPOR
 PRODUCTS are sold or distributed in violation of this article may submit
 a complaint to an enforcement officer setting forth the name and address
 of the alleged violator, the date of the alleged violation, the name and
 address of the complainant and the minor, and a brief statement describ-
 ing the alleged violation. The  enforcement  officer  shall  notify  the
 alleged  violator  by  certified  or  registered  mail,  return  receipt
 requested, that a complaint has been submitted, and shall set a date, at
 least fifteen days after the mailing of such notice, for  a  hearing  on
 the  complaint.  Such  notice shall contain the information submitted by
 the complainant.
   § 10. Section 1399-hh of the public health law, as  added  by  chapter
 433 of the laws of 1997, is amended to read as follows:
   §  1399-hh.  Tobacco  AND VAPOR PRODUCTS enforcement. The commissioner
 shall develop, plan and implement a comprehensive program to reduce  the
 prevalence of tobacco AND VAPOR PRODUCTS use, particularly among persons
 less  than eighteen years of age. This program shall include, but not be
 limited to, support for enforcement of article thirteen-F of this  chap-
 ter.
   1.  An  enforcement  officer,  as  defined in section thirteen hundred
 ninety-nine-t of this chapter, may annually, on such dates as  shall  be
 fixed  by the commissioner, submit an application for such monies as are
 made available for such purpose. Such application shall be in such  form
 as  prescribed by the commissioner and shall include, but not be limited
 to, plans regarding random spot checks, including the number  and  types
 of  compliance  checks  that  will be conducted, and other activities to
 determine compliance with this article. Each such plan shall include  an
 agreement  to  report  to the commissioner:   the names and addresses of
 tobacco retailers and vendors determined to be unlicensed, if  any;  the
 number  of complaints filed against licensed tobacco retail outlets; and
 the names of tobacco retailers and vendors who have paid fines, or  have
 been otherwise penalized, due to enforcement actions.

 A. 3009--B                         54
 
   2. The commissioner shall distribute such monies as are made available
 for  such purpose to enforcement officers and, in so doing, consider the
 number of retail locations registered to sell  tobacco  products  within
 the  jurisdiction  of  the enforcement officer and the level of proposed
 activities.
   3.  Monies  made  available  to  enforcement officers pursuant to this
 section shall only be used for local tobacco, HERBAL CIGARETTE AND VAPOR
 PRODUCTS enforcement activities approved by the commissioner.
   § 11. The public health  law  is  amended  by  adding  a  new  section
 1399-mm-1 to read as follows:
   §  1399-MM-1. VAPOR PRODUCTS; CHILD-RESISTANT CONTAINERS REQUIRED.  NO
 PERSON ENGAGED IN THE BUSINESS OF MANUFACTURING,  SELLING  OR  OTHERWISE
 DISTRIBUTING VAPOR PRODUCTS, AS SUCH TERM IS DEFINED IN SUBDIVISION NINE
 OF  SECTION THIRTEEN HUNDRED NINETY-NINE-N OF THIS CHAPTER, MAY SELL ANY
 COMPONENT OF SUCH SYSTEMS INCLUDING  ANY  REFILL,  CARTRIDGE,  OR  OTHER
 COMPONENT, UNLESS SUCH COMPONENT CONSTITUTES "SPECIAL PACKAGING" FOR THE
 PROTECTION  OF CHILDREN, AS DEFINED IN 15 U.S.C. 1471 OR ANY SUPERSEDING
 STATUTE.
   § 12. Subdivision 2 of section 409 of the education law, as amended by
 chapter 449 of the laws of 2012, is amended to read as follows:
   2. Notwithstanding the provisions of any  other  law,  rule  or  regu-
 lation,  tobacco,  HERBAL CIGARETTE, AND VAPOR PRODUCTS use shall not be
 permitted and no person shall use  [tobacco]  SUCH  PRODUCTS  on  school
 grounds.  "School grounds" means any building, structure and surrounding
 outdoor grounds, including entrances or exits, contained within a public
 or private pre-school, nursery school, elementary or secondary  school's
 legally  defined  property  boundaries as registered in a county clerk's
 office.
   § 13. Section 3624 of the education law, as amended by chapter 529  of
 the laws of 2002, is amended to read as follows:
   § 3624. Drivers,  monitors  and  attendants.  The  commissioner  shall
 determine and define the qualifications of drivers, monitors and attend-
 ants and shall make the rules and regulations governing the operation of
 all transportation facilities used by pupils which rules and regulations
 shall include, but not be limited to,  a  maximum  speed  of  fifty-five
 miles  per hour for school vehicles engaged in pupil transportation that
 are operated on roads, interstates or other highways, parkways or bridg-
 es or portions thereof that  have  posted  speed  limits  in  excess  of
 fifty-five  miles  per hour, prohibitions relating to smoking AND USE OF
 VAPOR PRODUCTS, eating and drinking  and  any  and  all  other  acts  or
 conduct  which  would otherwise impair the safe operation of such trans-
 portation facilities while actually being  used  for  the  transport  of
 pupils.  The  employment  of each driver, monitor and attendant shall be
 approved by the chief school administrator of a school district for each
 school bus operated within his or  her  district.  For  the  purpose  of
 determining  his  or  her  physical  fitness,  each  driver, monitor and
 attendant may be examined on order of the chief school administrator  by
 a  duly  licensed  physician  within two weeks prior to the beginning of
 service in each school year as a school bus driver, monitor  or  attend-
 ant. The report of the physician, in writing, shall be considered by the
 chief  school  administrator in determining the fitness of the driver to
 operate or continue to operate any  transportation  facilities  used  by
 pupils  and  in  determining  the fitness of any monitor or attendant to
 carry out his or her functions on such transportation facilities.  Noth-
 ing  in  this  section  shall prohibit a school district from imposing a
 more restrictive speed limit policy for the operation of school vehicles

 A. 3009--B                         55
 
 engaged in pupil transportation than the speed limit policy  established
 by the commissioner.
   §  14.  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, A VAPOR
 PRODUCT, or tobacco, other than cigarettes, intended for consumption  by
 smoking, chewing, INHALING VAPORS, or as snuff.
   §  15. Subdivision 12 of section 470 of the tax law, as added by chap-
 ter 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.
   §  16.  Section 470 of the tax law is amended by adding a new subdivi-
 sion 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 THOUSAND THREE HUNDRED
 SIXTY-TWO OF THE PUBLIC HEALTH LAW.
   § 17. 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.
   §  18.  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 FORTY  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.
   § 19. The opening paragraph of subdivision (a) of section 471-c of the
 tax law, as amended by section 2 of part I1 of chapter 57 of the laws of
 2009, is amended to read as follows:
   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.
   § 20. Paragraph (i) of subdivision (a) of section  471-c  of  the  tax
 law,  as  amended  by section 20 of part D of chapter 134 of the laws of
 2010, is amended to read as follows:

 A. 3009--B                         56
 
   (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.
   §  21.  Subdivision  (a) of section 471-c of the tax law is amended by
 adding a new paragraph (iv) to read as follows:
   (IV) SUCH TAX ON VAPOR PRODUCTS SHALL BE AT A RATE OF FORTY 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.
   § 22. 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.
   § 23. 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.
   §  24.  Subparagraph  (i) of paragraph (b) of subdivision 1 of section
 481 of the tax law, as amended by section 1 of part O of chapter  59  of
 the laws of 2013, is amended to read as follows:
   (i)  In  addition  to  any  other penalty imposed by this article, the
 commissioner may (A) impose a penalty  of  not  more  than  six  hundred
 dollars  for each two hundred cigarettes, or fraction thereof, in excess
 of one thousand cigarettes in unstamped or unlawfully  stamped  packages
 in  the  possession  or  under the control of any person or (B) impose a
 penalty of not more than two hundred  dollars  for  each  ten  unaffixed
 false,   altered  or  counterfeit  cigarette  tax  stamps,  imprints  or
 impressions, or fraction thereof, in the possession or under the control
 of any person. In addition, the commissioner may impose a penalty of not
 more than seventy-five dollars for each fifty cigars [or], one pound  of
 tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction there-
 of,  in  excess of two hundred fifty cigars [or], five pounds of tobacco

 A. 3009--B                         57
 
 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  MILLI-
 LITERS  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, howev-
 er, 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 frac-
 tion thereof, in excess of fifty cigars [or], one pound of  tobacco,  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.
   §  25.  Clauses  (B)  and (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:
   (B)(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
 MILLILITERS  OF  VAPOR  PRODUCT knowingly in the possession or knowingly
 under the control of any person,  with  respect  to  which  the  tobacco
 products  tax  has  not been paid or assumed by a distributor or tobacco
 products dealer; and
   (II) not less than fifty dollars but not more than two hundred dollars
 for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS
 OF VAPOR PRODUCT, or fraction thereof, in excess of five hundred  cigars
 [or],  ten pounds of tobacco, OR ONE THOUSAND MILLILITERS OF VAPOR PROD-
 UCT 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; provided, howev-
 er, that any such penalty imposed under this clause shall not exceed ten
 thousand dollars in the aggregate.
   (C)(I) not less than twenty-five dollars but not more than one hundred
 dollars for each fifty cigars [or], one pound of tobacco, OR ONE HUNDRED
 MILLILITERS  OF  VAPOR  PRODUCT, or fraction thereof, in excess of fifty
 cigars [or], one pound of tobacco, OR ONE HUNDRED MILLILITERS  OF  VAPOR
 PRODUCT  knowingly  in  the possession or knowingly under the control of
 any person, with respect to which the tobacco products tax has not  been
 paid or assumed by a distributor or tobacco products dealer; and
   (II) not less than fifty dollars but not more than two hundred dollars
 for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS
 OF  VAPOR  PRODUCT,  or fraction thereof, in excess of two hundred fifty
 cigars [or], five pounds of tobacco,  OR  FIVE  HUNDRED  MILLILITERS  OF
 VAPOR PRODUCT knowingly in the possession or knowingly under the control

 A. 3009--B                         58
 
 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.
   §  26.  Subdivisions  (a)  and  (h) of section 1814 of the tax law, as
 amended by section 28 of subpart I of part V1 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, OR
 (IV) FORTY-FOUR THOUSAND MILLILITERS OF VAPOR PRODUCT  OR  MORE  or  has
 previously  been convicted two or more times of a violation of paragraph
 [one] (I) 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 taxa-
 tion and finance 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 misdemeanor punishable by  a  fine
 of  not more than five thousand dollars or by a term of imprisonment 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 chapter shall  be
 guilty of a misdemeanor punishable by a fine of not more than five thou-
 sand dollars or by a term of imprisonment not to exceed thirty days.
   (3) Any person, other than a distributor appointed by the commissioner
 under  article  twenty of this chapter, who shall knowingly transport or
 have in his custody, possession or under his control twenty-five hundred
 or more cigars, or fifty or more pounds of  tobacco,  OR  FIVE  THOUSAND
 MILLILITERS  OR  MORE  OF  VAPOR PRODUCT upon which the taxes imposed by
 article twenty of this chapter have  not  been  assumed  or  paid  by  a
 distributor  appointed  by the commissioner under article twenty of this
 chapter, or other person treated as a distributor  pursuant  to  section
 four  hundred  seventy-one-d of this chapter shall be guilty of a misde-
 meanor. Provided further, that any person who has twice  been  convicted
 under  this  subdivision  shall  be  guilty  of a class E felony for any
 subsequent violation of this section, regardless of the amount of tobac-
 co products involved in such violation.
   (4) For purposes of this  subdivision,  such  person  shall  knowingly
 transport or have in his custody, possession or under his control tobac-
 co,  [or]  cigars,  OR  VAPOR PRODUCTS on which such taxes have not been
 assumed or 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

 A. 3009--B                         59
 
 or  paid  on  such  tobacco  products  by a distributor appointed by the
 commissioner of taxation and finance.
   §  27.  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 MILLILITERS
 OF VAPOR PRODUCT for sale within the state, or produces, manufactures or
 compounds tobacco products within the state shall be guilty of a  misde-
 meanor 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 pounds or  more
 of  tobacco,  OR FIFTY 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 misdemeanor. Provided further, that any
 person  who  has twice been convicted under this section shall be guilty
 of a class E felony  for  any  subsequent  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.
   § 28. Subdivision (a) of section 1846-a of the tax law, as amended  by
 chapter 556 of the laws of 2011, is amended to read as follows:
   (a) Whenever a police officer designated in section 1.20 of the crimi-
 nal  procedure  law or a peace officer designated in subdivision four of
 section 2.10 of such law, acting pursuant to his special  duties,  shall
 discover any tobacco products in excess of five hundred cigars [or], ten
 pounds  of  tobacco,  OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT which
 are being imported for sale in the state where the person  importing  or
 causing 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

 A. 3009--B                         60
 
 trademark rights in the  tobacco  products  to  inspect  such  forfeited
 products  in order to assist in any investigation regarding such tobacco
 products.
   §  29.  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.
   §  30.  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 that date.
 
                                  PART GG
 
                           Intentionally Omitted
 
                                  PART HH
 
                           Intentionally Omitted
 
                                  PART II
 
   Section 1. 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  CIGARS 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
 CIGARS.
   § 2. 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 CIGARS AS DEFINED IN SUBDIVISION NINETEEN OF SECTION
 FOUR HUNDRED SEVENTY OF THIS ARTICLE SHALL BE AT A  RATE  OF  FORTY-FIVE
 CENTS PER CIGAR.
   § 3. Paragraph (i) of subdivision (a) of section 471-c of the tax law,
 as  amended  by section 20 of part D of chapter 134 of the laws of 2010,
 is amended to read as follows:
   (i) Such tax on tobacco products other than snuff [and], little cigars
 AND CIGARS shall be at the rate of seventy-five percent of the wholesale
 price.
   § 4. Subdivision (a) of section 471-c of the tax  law  is  amended  by
 adding a new paragraph (iv) to read as follows:

 A. 3009--B                         61
 
   (IV)  SUCH TAX ON CIGARS AS DEFINED IN SUBDIVISION NINETEEN OF SECTION
 FOUR HUNDRED SEVENTY OF THIS ARTICLE SHALL BE AT A  RATE  OF  FORTY-FIVE
 CENTS PER CIGAR.
   § 5. This act shall take effect September 1, 2017.
 
                                  PART JJ
 
   Section  1. Subdivision (e) of section 1401 of the tax law, as amended
 by chapter 760 of the laws of 1992, is amended to read as follows:
   (e) "Conveyance" means the transfer or transfers of  any  interest  in
 real  property  by  any  method,  including  but  not  limited  to sale,
 exchange, assignment, surrender, mortgage foreclosure, transfer in  lieu
 of  foreclosure,  option,  trust  indenture,  taking  by eminent domain,
 conveyance upon liquidation or by a receiver, or transfer or acquisition
 of a controlling interest in any entity with an interest in real proper-
 ty.  CONVEYANCE ALSO INCLUDES THE TRANSFER OF AN INTEREST IN A  PARTNER-
 SHIP, LIMITED LIABILITY CORPORATION, S CORPORATION OR NON-PUBLICLY TRAD-
 ED  C  CORPORATION WITH FEWER THAN ONE HUNDRED SHAREHOLDERS THAT OWNS AN
 INTEREST IN REAL PROPERTY THAT IS LOCATED IN NEW YORK  AND  HAS  A  FAIR
 MARKET  VALUE  THAT EQUALS OR EXCEEDS FIFTY PERCENT OF ALL THE ASSETS OF
 THE ENTITY ON THE DATE OF THE TRANSFER OF AN  INTEREST  IN  THE  ENTITY.
 ONLY    THOSE ASSETS THAT THE ENTITY OWNED FOR AT LEAST TWO YEARS BEFORE
 THE DATE OF THE TRANSFER OF THE TAXPAYER'S INTEREST IN THE ENTITY  SHALL
 BE  USED  IN  DETERMINING THE FAIR MARKET VALUE OF ALL THE ASSETS OF THE
 ENTITY ON THE DATE OF THE TRANSFER. Transfer  of  an  interest  in  real
 property  shall  include  the  creation  of a leasehold or sublease only
 where (i) the sum of the term of the lease or sublease and  any  options
 for  renewal exceeds forty-nine years, (ii) substantial capital improve-
 ments are or may be made by or for the benefit of the lessee or  subles-
 see,  and  (iii)  the  lease or sublease is for substantially all of the
 premises constituting the real property. Notwithstanding the  foregoing,
 conveyance  of  real property shall not include a conveyance pursuant to
 devise, bequest or inheritance; the creation,  modification,  extension,
 spreading,  severance,  consolidation,  assignment, transfer, release or
 satisfaction of a mortgage; a mortgage subordination agreement, a  mort-
 gage  severance  agreement,  an instrument given to perfect or correct a
 recorded mortgage; or a release of lien of tax pursuant to this  chapter
 or the internal revenue code.
   §  2.  Subdivision  (d)  of  section 1401 of the tax law is amended by
 adding a new paragraph (vi) to read as follows:
   (VI) IN THE CASE OF A TRANSFER OF AN INTEREST IN A PARTNERSHIP, LIMIT-
 ED LIABILITY CORPORATION, S CORPORATION OR NON-PUBLICLY TRADED C  CORPO-
 RATION  WITH  ONE  HUNDRED OR FEWER SHAREHOLDERS THAT OWNS REAL PROPERTY
 THAT IS LOCATED IN NEW YORK AND HAS A FAIR MARKET VALUE THAT  EQUALS  OR
 EXCEEDS FIFTY PERCENT OF ALL THE ASSETS OF THE ENTITY ON THE DATE OF THE
 TRANSFER OF AN INTEREST IN THE ENTITY, THE CONSIDERATION FOR THE CONVEY-
 ANCE SHALL BE CALCULATED BY MULTIPLYING (1) THE FAIR MARKET VALUE OF THE
 REAL  PROPERTY  THAT  IS LOCATED IN NEW YORK THAT IS OWNED BY THE ENTITY
 AND (2) THE PERCENTAGE OF THE ENTITY THAT IS TRANSFERRED.
   § 3. This act shall take effect immediately and shall apply to  trans-
 fers occurring on and after the effective date.
 
                                  PART KK
 
   Section  1.  Section  1402-a of the tax law is amended by adding a new
 subdivision (b-1) to read as follows:

 A. 3009--B                         62
 
   (B-1) THE COMMISSIONER IS AUTHORIZED TO TREAT AS SUBJECT TO TAX  UNDER
 THIS  SECTION ANY CONVEYANCE OF AN INTEREST IN REAL PROPERTY MADE PURSU-
 ANT TO AN AGREEMENT, UNDERSTANDING OR ARRANGEMENT THAT  RESULTS  IN  THE
 AVOIDANCE OR EVASION OF THE TAX IMPOSED BY THIS SECTION.
   § 2. This act shall take effect immediately.
 
                                  PART LL
 
                           Intentionally Omitted
 
                                  PART MM
 
   Section  1.  Paragraphs (b) and (c) of subdivision 2 of section 435 of
 the executive law, paragraph (b) as amended by chapter 164 of  the  laws
 of  2003,  paragraph  (c) as amended by chapter 437 of the laws of 1962,
 clause 1 of paragraph (c) as amended by chapter 371 of the laws of 1974,
 are amended to read as follows:
   (b) No person, firm or corporation, other than an  organization  which
 is  or  has  been  during  the  preceding twelve months duly licensed to
 conduct bingo games, shall sell or distribute bingo supplies  or  equip-
 ment  without  having  first  obtained  a  license therefor upon written
 application made, verified and filed with the  commission  in  the  form
 prescribed  by the rules and regulations of the commission. As a part of
 its determination concerning the applicant's suitability  for  licensing
 as  a  bingo  supplier,  the  New York state [racing and wagering board]
 GAMING COMMISSION shall require the applicant to furnish to such [board]
 COMMISSION two sets of fingerprints.  Such fingerprints shall be submit-
 ted to the division of criminal justice services for  a  state  criminal
 history  record  check,  as  defined in subdivision one of section three
 thousand thirty-five of the education law, and may be submitted  to  the
 federal  bureau  of investigation for a national criminal history record
 check.  UPON RECEIPT OF CRIMINAL HISTORY INFORMATION BY  THE  COMMISSION
 FOR ANY APPLICANT, THE COMMISSION MUST CONSIDER ANY INFORMATION RECEIVED
 PURSUANT  TO  ARTICLE  TWENTY-THREE-A OF THE CORRECTION LAW AND SUBDIVI-
 SIONS FIFTEEN AND SIXTEEN OF SECTION  TWO  HUNDRED  NINETY-SIX  OF  THIS
 CHAPTER. THE COMMISSION SHALL PROMPTLY PROVIDE THE APPLICANT WITH A COPY
 OF  HIS OR HER CRIMINAL HISTORY INFORMATION AS WELL AS A COPY OF ARTICLE
 TWENTY-THREE-A OF THE CORRECTION LAW. THE DEPARTMENT SHALL  INFORM  SUCH
 APPLICANT OF HIS OR HER RIGHT TO SEEK CORRECTION OF ANY INCORRECT INFOR-
 MATION  CONTAINED  IN  SUCH CRIMINAL HISTORY INFORMATION PURSUANT TO THE
 REGULATIONS AND PROCEDURES  ESTABLISHED  BY  THE  DIVISION  OF  CRIMINAL
 JUSTICE  SERVICES.  In  each  such  application for a license under this
 section shall be stated the name and address of the applicant; the names
 and addresses of its officers, directors, shareholders or partners;  the
 amount  of  gross receipts realized on the sale or distribution of bingo
 supplies and equipment to duly licensed organizations  during  the  last
 preceding  calendar  or fiscal year, and such other information as shall
 be prescribed by such rules and regulations. The fee  for  such  license
 shall  be  a  sum equal to twenty-five dollars plus an amount based upon
 the gross sales, if any, of bingo equipment and supplies  to  authorized
 organizations  by  the  applicant during the preceding calendar year, or
 fiscal year if the applicant maintains his accounts  on  a  fiscal  year
 basis, and determined in accordance with the following schedule:
   gross sales of $1,000 to $4,999................$10.00
   gross sales of $5,000 to $19,999...............$50.00
   gross sales of $20,000 to $49,999.............$200.00

 A. 3009--B                         63
 
   gross sales of $50,000 to $100,000............$500.00
   gross sales in excess of $100,000...........$1,000.00
   (c) The following shall be ineligible for such a license:
   (1) a person convicted of a crime [who has not received] IF THERE IS A
 DIRECT  RELATIONSHIP  BETWEEN  ONE  OR  MORE  OF  THE  PREVIOUS CRIMINAL
 OFFENSES AND THE INTEGRITY OF BINGO, CONSIDERING THE FACTORS  SET  FORTH
 IN  SECTION  SEVEN  HUNDRED FIFTY-THREE OF THE CORRECTION LAW, PROVIDED,
 HOWEVER, THAT RECEIPT OF a pardon, a certificate of good  conduct  or  a
 certificate  of  relief from disabilities SHALL REMOVE ANY INELIGIBILITY
 FOR A LICENSE UNDER THIS CLAUSE;
   (2) a person who is or has been a  professional  gambler  or  gambling
 promoter or who for other reasons is not of good moral character;
   (3) a public officer or employee;
   (4) an operator or proprietor of a commercial hall duly licensed under
 the bingo licensing law;
   (5)  a  firm  or corporation in which a person defined in [subdivision
 (1), (2), (3) or (4) above] SUBPARAGRAPHS ONE, TWO,  THREE  OR  FOUR  OF
 THIS  PARAGRAPH,  or  a person married or related in the first degree to
 such a person, has greater than a ten per centum proprietary,  equitable
 or credit interest or in which such a person is active or employed.
   §  2.  Subdivision  4  of section 186 of the general municipal law, as
 amended by chapter by 574 of the laws of 1978, is  amended  to  read  as
 follows:
   4.  "Authorized  organization"  shall  mean  and include any bona fide
 religious or charitable organization or bona fide educational, fraternal
 or service organization or bona  fide  organization  of  veterans  [or],
 volunteer  [firemen] FIREFIGHTERS, OR VOLUNTEER AMBULANCE WORKERS, which
 by its charter, certificate of incorporation, constitution,  or  act  of
 the  legislature,  shall have among its dominant purposes one or more of
 the lawful purposes as defined in this article, provided that each shall
 operate without profit to its  members,  and  provided  that  each  such
 organization  has  engaged in serving one or more of the lawful purposes
 as defined in this article for a period  of  three  years  [immediatley]
 IMMEDIATELY prior to applying for a license under this article.
   § 3. Subdivisions 5 and 6 of section 189 of the general municipal law,
 subdivision 5 as amended by chapter 434 of the laws of 2016, subdivision
 6  as amended by chapter 302 of the laws of 2010, are amended to read as
 follows:
   5. (A) No single prize awarded by games of chance  other  than  raffle
 shall  exceed the sum or value of three hundred dollars, except that for
 merchandise wheels, no single prize shall exceed the sum or value of two
 hundred fifty dollars, AND FOR BELL JAR, NO SINGLE  PRIZE  SHALL  EXCEED
 THE SUM OR VALUE OF ONE THOUSAND DOLLARS.
   (B) No single prize awarded by raffle shall exceed the sum or value of
 three hundred thousand dollars.
   (C)  No  single wager shall exceed six dollars and for bell jars, coin
 boards, or merchandise  boards,  no  single  prize  shall  exceed  [five
 hundred]  ONE  THOUSAND dollars, provided, however, that such limitation
 shall not apply to the amount of money or value paid by the  participant
 in a raffle in return for a ticket or other receipt.
   (D) For coin boards and merchandise boards, the value of a prize shall
 be  determined  by  [its costs] THE COST OF SUCH PRIZE to the authorized
 organization or, if donated, [its] THE fair market value OF SUCH PRIZE.
   6. (A) No authorized organization  shall  award  a  series  of  prizes
 consisting  of  cash or of merchandise with an aggregate value in excess
 of:

 A. 3009--B                         64
 
   (1) ten thousand dollars during the successive operations of  any  one
 merchandise wheel[,]; and
   (2)  [three]  SIX thousand dollars during the successive operations of
 any bell jar, coin board, or merchandise board.
   (B) No series of prizes awarded by  raffle  shall  have  an  aggregate
 value in excess of five hundred thousand dollars.
   (C) For coin boards and merchandise boards, the value of a prize shall
 be  determined  by [its] THE cost OF SUCH PRIZE to the authorized organ-
 ization or, if donated, [its] THE fair market value OF SUCH PRIZE.
   § 4. The opening paragraph and subdivision (a) of section 189-a of the
 general municipal law, the opening paragraph as amended by  chapter  164
 of  the  laws  of  2003,  subdivision (a) as added by 574 of the laws of
 1978, are amended to read as follows:
   No person, firm, partnership, corporation or organization, shall  sell
 or distribute supplies or equipment specifically designed or adapted for
 use  in  conduct  of  games  of  chance  without having first obtained a
 license therefor upon written application made, verified and filed  with
 the  [board]  COMMISSION  in  the form prescribed by the rules and regu-
 lations of the [board]  COMMISSION.  As  a  part  of  its  determination
 concerning  the  applicant's  suitability  for  licensing  as a games of
 chance supplier, the [board] COMMISSION shall require the  applicant  to
 furnish  to the [board] COMMISSION two sets of fingerprints.  Such fing-
 erprints shall be submitted to the division of criminal justice services
 for a state criminal history record check, as defined in subdivision one
 of section three thousand thirty-five of the education law, and  may  be
 submitted to the federal bureau of investigation for a national criminal
 history  record check.   UPON RECEIPT OF CRIMINAL HISTORY INFORMATION BY
 THE COMMISSION FOR ANY  APPLICANT,  THE  COMMISSION  MUST  CONSIDER  ANY
 INFORMATION   RECEIVED   PURSUANT   TO  ARTICLE  TWENTY-THREE-A  OF  THE
 CORRECTION LAW AND SUBDIVISIONS  FIFTEEN  AND  SIXTEEN  OF  SECTION  TWO
 HUNDRED  NINETY-SIX OF THE EXECUTIVE LAW.  THE COMMISSION SHALL PROMPTLY
 PROVIDE THE APPLICANT WITH A COPY OF HIS OR HER CRIMINAL HISTORY  INFOR-
 MATION  AS  WELL  AS  A COPY OF ARTICLE TWENTY-THREE-A OF THE CORRECTION
 LAW. THE DEPARTMENT SHALL INFORM SUCH APPLICANT OF HIS OR HER  RIGHT  TO
 SEEK  CORRECTION OF ANY INCORRECT INFORMATION CONTAINED IN SUCH CRIMINAL
 HISTORY INFORMATION PURSUANT TO THE REGULATIONS  AND  PROCEDURES  ESTAB-
 LISHED  BY  THE  DIVISION OF CRIMINAL JUSTICE SERVICES. Manufacturers of
 bell jar tickets shall be considered suppliers  of  such  equipment.  In
 each  such  application for a license under this section shall be stated
 the name and address of the applicant; the names and  addresses  of  its
 officers,  directors,  shareholders  or  partners;  the  amount of gross
 receipts realized on the sale and rental of games of chance supplies and
 equipment to duly licensed  authorized  organizations  during  the  last
 preceding  calendar  or fiscal year, and such other information as shall
 be prescribed by such rules and regulations. The fee  for  such  license
 shall  be a sum equal to twenty-five dollars plus an amount equal to two
 per centum of the gross sales and rentals, if any, of  games  of  chance
 equipment  and  supplies to authorized organizations or authorized games
 of chance lessors by the applicant during the preceding  calendar  year,
 or  fiscal year if the applicant maintains his accounts on a fiscal year
 basis. No license granted pursuant to the  provisions  of  this  section
 shall be effective for a period of more than one year.
   (a) The following shall be ineligible for such a license:
   (1) a person convicted of a crime [who has not received] IF THERE IS A
 DIRECT  RELATIONSHIP  BETWEEN  ONE  OR  MORE  OF  THE  PREVIOUS CRIMINAL
 OFFENSES AND THE INTEGRITY OF GAMES OF CHANCE, CONSIDERING  THE  FACTORS

 A. 3009--B                         65
 
 SET  FORTH  IN  SECTION SEVEN HUNDRED FIFTY-THREE OF THE CORRECTION LAW,
 PROVIDED, HOWEVER THAT RECEIPT  OF  a  pardon,  a  certificate  of  good
 conduct  or  a  certificate of relief from disabilities SHALL REMOVE ANY
 INELIGIBILITY FOR A LICENSE UNDER THIS PARAGRAPH;
   (2)  a  person  who  is or has been a professional gambler or gambling
 promoter or who for other reasons is not of good moral character;
   (3) a public officer or employee;
   (4) an authorized games of chance lessor;
   (5) a firm or corporation in which a person  defined  in  [subdivision
 (1),  (2),  (3)  or  (4) above] SUBPARAGRAPHS ONE, TWO, THREE OR FOUR OF
 THIS PARAGRAPH has greater than a ten per centum proprietary,  equitable
 or credit interest or in which such a person is active or employed.
   §  5.  The  opening  paragraph  of  paragraph  (a) of subdivision 1 of
 section 190 of the general municipal law, as amended by chapter  574  of
 the laws of 1978, is amended to read as follows:
   Each  applicant for a license shall, after obtaining an identification
 number from the [board] COMMISSION, file with the clerk or department, a
 written OR ELECTRONIC application therefor in a form to be prescribed by
 the [board] COMMISSION, duly executed and verified, in  which  shall  be
 stated:
   §  6.  Subdivision 1 of section 190-a of the general municipal law, as
 amended by chapter 400 of the laws  of  2005,  is  amended  to  read  as
 follows:
   1.  Notwithstanding the licensing requirements set forth in this arti-
 cle and their filing requirements  set  forth  in  subdivision  four  of
 section  one  hundred ninety of this article, an authorized organization
 may conduct a raffle without complying with such licensing  requirements
 or  such  filing  requirements,  provided,  that such organization shall
 derive net proceeds from raffles in an amount less  than  five  thousand
 dollars  during  the conduct of one raffle and shall derive net proceeds
 from raffles in an amount less than  [twenty]  THIRTY  thousand  dollars
 during one calendar year.
   §  7.  Paragraph  (a) of subdivision 2 of section 190-a of the general
 municipal law, as amended by chapter 400 of the laws of 2005, is amended
 to read as follows:
   (a) For the purposes of this section, "authorized organization"  shall
 mean  and  include any bona fide religious or charitable organization or
 bona fide educational, fraternal or service organization  or  bona  fide
 organization  of veterans [or], volunteer [firefighter] FIREFIGHTERS, OR
 VOLUNTEER AMBULANCE WORKERS, which by its charter, certificate of incor-
 poration, constitution, or act of the legislature, shall have among  its
 dominant  purposes one or more of the lawful purposes as defined in this
 article, provided that each shall operate without profit to its members,
 and provided that each such organization has engaged in serving  one  or
 more  of  the lawful purposes as defined in this article for a period of
 three years immediately prior to being granted  the  filing  requirement
 exemption contained in subdivision one of this section.
   §  8.  Paragraph  (a)  of  subdivision 1 of section 191 of the general
 municipal law, as amended by section 15 of part LL of chapter 56 of  the
 laws of 2010, is amended to read as follows:
   (a)  Issuance of licenses to conduct games of chance. If such clerk or
 department shall determine that the applicant is duly  qualified  to  be
 licensed  to conduct games of chance under this article; that the member
 or members of the applicant designated  in  the  application  to  manage
 games  of  chance  are bona fide active members of the applicant and are
 persons of good moral character [and have  never  been  convicted  of  a

 A. 3009--B                         66

 crime,  or,  if convicted, have received a pardon, a certificate of good
 conduct or a certificate of relief from disabilities pursuant to article
 twenty-three of the correction law]; that such games are to be conducted
 in accordance with the provisions of this article and in accordance with
 the rules and regulations of the [board] COMMISSION and applicable local
 laws  or  ordinances and that the proceeds thereof are to be disposed of
 as provided by this article, and if such clerk or department  is  satis-
 fied  that  no  commission,  salary,  compensation, reward or recompense
 whatever will be paid or given to  any  person  managing,  operating  or
 assisting therein except as in this article otherwise provided; it shall
 issue a license to the applicant for the conduct of games of chance upon
 payment of a license fee of twenty-five dollars for each license period.
   §  9.  Subdivision 1 of section 195-c of the general municipal law, as
 amended by chapter 252 of the laws  of  1998,  is  amended  to  read  as
 follows:
   [1.] Persons operating games; equipment; expenses; compensation. 1. No
 person  shall  operate any game of chance under any license issued under
 this article except a bona fide member of the authorized organization to
 which the license is issued, or a bona fide member of an organization or
 association which is an auxiliary to the licensee or a bona fide  member
 of an organization or association of which such licensee is an auxiliary
 or  a bona fide member of an organization or association which is affil-
 iated with the licensee by being, with it, auxiliary to  another  organ-
 ization  or  association. Nothing herein shall be construed to limit the
 number of games of chance licensees for whom such  persons  may  operate
 games  of  chance nor to prevent non-members from assisting the licensee
 in any activity other than managing  or  operating  games.  No  game  of
 chance  shall  be  conducted  with any equipment except such as shall be
 owned or leased by the authorized organization so licensed or used with-
 out payment of any compensation therefor by the licensee. However, in no
 event shall bell jar tickets be transferred from one  authorized  organ-
 ization to another, with or without payment of any compensation thereof.
 The  head  or  heads  of  the authorized organization shall upon request
 certify, under oath, that the persons operating any game of  chance  are
 bona  fide  members of such authorized organization, auxiliary or affil-
 iated organization. Upon request by an officer  or  the  department  any
 such  person  involved  in such games of chance shall certify that he or
 she has no criminal record OR SHALL DISCLOSE PREVIOUS CRIMINAL  OFFENSES
 THAT  MUST  BE  CONSIDERED  PURSUANT  TO  ARTICLE  TWENTY-THREE-A OF THE
 CORRECTION LAW AND SUBDIVISIONS  FIFTEEN  AND  SIXTEEN  OF  SECTION  TWO
 HUNDRED  NINETY-SIX  OF  THE EXECUTIVE LAW. No items of expense shall be
 incurred or paid in connection with the conducting of any game of chance
 pursuant to any license issued under this article except those that  are
 reasonable and are necessarily expended for games of chance supplies and
 equipment, prizes, security personnel, stated rental if any, bookkeeping
 or   accounting   services  according  to  a  schedule  of  compensation
 prescribed by the [board] COMMISSION, janitorial  services  and  utility
 supplies  if  any, and license fees, and the cost of bus transportation,
 if authorized by  such  clerk  or  department.  No  commission,  salary,
 compensation,  reward or recompense shall be paid or given to any person
 for the sale or assisting with the sale of raffle tickets.
   § 10. Subdivision 4 of section 195-n of the general municipal law,  as
 amended  by  chapter  637  of  the  laws  of 1999, is amended to read as
 follows:
   4. Reports of sales. A manufacturer who sells  bell  jar  tickets  for
 resale  in  this state shall file with the [board] COMMISSION, on a form

 A. 3009--B                         67
 
 prescribed by the [board] COMMISSION, a report of all bell  jar  tickets
 sold  to  distributors in the state. The report shall be filed quarterly
 on or before the twentieth day of the month succeeding the  end  of  the
 quarter  in  which the sale was made. The [board] COMMISSION may require
 that the report be submitted via [magnetic] ELECTRONIC  media  or  elec-
 tronic data transfer.
   §  11. Subdivision 5 of section 195-o of the general municipal law, as
 amended by chapter 637 of the laws  of  1999,  is  amended  to  read  as
 follows:
   5.  Reports.  A  distributor  shall  report  quarterly  to the [board]
 COMMISSION, on a form prescribed by the [board] COMMISSION, its sales of
 each type of bell jar deal or tickets. This report shall be filed  quar-
 terly  on or before the twentieth day of the month succeeding the end of
 the quarter in which the sale  was  made.  The  [board]  COMMISSION  may
 require  that  a  distributor  submit  the quarterly report and invoices
 required by this section via [magnetic] ELECTRONIC media  or  electronic
 data transfer.
   §  12. Subdivisions 6 and 11-b of section 476 of the general municipal
 law, subdivision 6 as amended by chapter 438 of the laws of 1962,  para-
 graph  (c)  of  subdivision  6  as amended by chapter 190 of the laws of
 1997, paragraph (d) of subdivision 6 as relettered by chapter 480 of the
 laws of 1991, subdivision 11-b as added by chapter 162 of  the  laws  of
 2007, are amended to read as follows:
   6.  "Lawful  purposes" shall mean one or more of the following causes,
 deeds or activities:
   (a) Those which shall benefit needy or deserving persons indefinite in
 number by enhancing  their  opportunity  for  religious  or  educational
 advancement,  by  relieving them from disease, suffering or distress, or
 by contributing to their  physical  well-being,  by  assisting  them  in
 establishing  themselves  in  life  as worthy and useful citizens, or by
 increasing their comprehension of and devotion to  the  principles  upon
 which  this  nation  was  founded  and  enhancing their loyalty to their
 governments;
   (b) Those which shall initiate, perform or foster worthy public  works
 or  shall enable or further the erection or maintenance of public struc-
 tures;
   (c) Those which shall initiate, perform or foster  the  provisions  of
 services  to  veterans by encouraging the gathering of such veterans and
 shall enable or further the erection or maintenance  of  facilities  for
 use  by  such  veterans  which shall be used primarily for charitable or
 patriotic purposes, or those purposes which shall  be  authorized  by  a
 bona  fide organization of veterans, provided however that such proceeds
 are disbursed in accordance  with  the  rules  and  regulations  of  the
 [racing and wagering board] COMMISSION.
   (d) Those which shall otherwise lessen the burdens borne by government
 or  which  are  voluntarily  undertaken by an authorized organization to
 augment or supplement services which government would normally render to
 the people, INCLUDING, IN THE CASE  OF  VOLUNTEER  FIREFIGHTERS'  ACTIV-
 ITIES,  THE PURCHASE, ERECTION, OR MAINTENANCE OF A BUILDING FOR A FIRE-
 HOUSE, ACTIVITIES OPEN TO THE PUBLIC FOR THE ENHANCEMENT OF  MEMBERSHIP,
 AND  THE  PURCHASE  OF  EQUIPMENT  WHICH  CAN  REASONABLY BE EXPECTED TO
 INCREASE THE EFFICIENCY OF RESPONSE TO FIRES, ACCIDENTS, PUBLIC  CALAMI-
 TIES AND OTHER EMERGENCIES.
   11-b.  "Bonus ball" shall mean a bingo game that is played in conjunc-
 tion with one or more regular or special bingo games designated as bonus
 ball games by the licensed authorized organization during  one  or  more

 A. 3009--B                         68
 
 consecutive  bingo  occasions  in which a prize is awarded to the player
 obtaining a specified winning bingo pattern when the last number  called
 by  the  licensed  authorized  organization is the designated bonus ball
 number.  The  bonus  ball  prize shall be based upon a percentage of the
 sales from opportunities to participate  in  bonus  ball  games  not  to
 exceed  seventy-five  percent of the sum of money received from the sale
 of bonus ball opportunities or [six]  TEN  thousand  dollars,  whichever
 shall  be  less, and which is not subject to the prize limits imposed by
 subdivisions five and six of section four hundred seventy-nine and para-
 graph (a) of subdivision one of section four hundred eighty-one of  this
 article.  The  percentage shall be specified both in the application for
 the bingo license and the license. Notwithstanding section four  hundred
 eighty-nine  of  this article, not more than one dollar shall be charged
 per player for an opportunity to participate in  all  bonus  ball  games
 conducted during a single bingo occasion, and the total amount collected
 from the sale of bonus ball opportunities and the amount of the prize to
 be awarded shall be announced prior to the start of each bingo occasion.
   §  13.  Subdivisions  5  and 6 of section 479 of the general municipal
 law, as amended by chapter 328 of the laws of 1994, are amended to  read
 as follows:
   5.  No  prize  shall  exceed  the  sum or value of [one] FIVE thousand
 dollars in any single game of bingo.
   6. No series of prizes on any one bingo occasion shall aggregate  more
 than [three] FIFTEEN thousand dollars.
   §  14.  Paragraph  (a)  of subdivision 1 of section 480 of the general
 municipal law, as amended by chapter 611 of the laws of 1963, is amended
 to read as follows:
   (a) Each applicant for a license shall, after obtaining an identifica-
 tion number from the [control] commission, file with the  clerk  of  the
 municipality  a  written  OR ELECTRONIC application therefor in the form
 prescribed in the rules and regulations  of  the  [control]  commission,
 duly executed and verified, in which shall be stated:
   §  15.  Paragraph  (a)  of subdivision 2 of section 480 of the general
 municipal law, as amended by chapter 438 of the laws of 1962, is amended
 to read as follows:
   (a) Each applicant for a license  to  lease  premises  to  a  licensed
 organization  for  the  purposes  of conducting bingo therein shall file
 with the clerk of the municipality a written OR  ELECTRONIC  application
 therefor  in  a  form  prescribed  in  the  rules and regulations of the
 [control] commission duly executed and verified, which shall  set  forth
 the  name  and  address of the applicant; designation and address of the
 premises intended to be covered by the license sought;  lawful  capacity
 for  public  assembly  purposes; cost of premises and assessed valuation
 for real estate tax purposes, or annual net  lease  rent,  whichever  is
 applicable;  gross  rentals received and itemized expenses for the imme-
 diately preceding calendar or fiscal year, if  any;  gross  rentals,  if
 any,  derived  from  bingo  during the last preceding calendar or fiscal
 year; computation by which  proposed  rental  schedule  was  determined;
 number  of  occasions  on which applicant anticipates receiving rent for
 bingo during the ensuing year or shorter period if applicable;  proposed
 rent  for  each  such  occasion;  estimated gross rental income from all
 other sources during the ensuing year; estimated expenses  itemized  for
 ensuing  year  and  amount  of  each  item allocated to bingo rentals; a
 statement that the applicant in all respects conforms with the  specifi-
 cations  contained  in  the definition of "authorized commercial lessor"

 A. 3009--B                         69
 
 set forth in section four hundred seventy-six of this article, and  such
 other information as shall be prescribed by such rules and regulations.
   §  16.  Paragraph  (a)  of subdivision 1 of section 481 of the general
 municipal law, as amended by section 17 of part LL of chapter 56 of  the
 laws of 2010, is amended to read as follows:
   (a)  Issuance  of  licenses to conduct bingo. If the governing body of
 the municipality shall determine that the applicant is duly qualified to
 be licensed to conduct bingo under this  article;  that  the  member  or
 members  of the applicant designated in the application to conduct bingo
 are bona fide active members of the applicant and are  persons  of  good
 moral  character  [and  have  never  been  convicted  of  a crime or, if
 convicted, have received a pardon or a certificate of good conduct or  a
 certificate of relief from disabilities pursuant to article twenty-three
 of  the  correction law]; that such games are to be conducted in accord-
 ance with the provisions of this article  and  in  accordance  with  the
 rules  and  regulations of the commission, and that the proceeds thereof
 are to be disposed of as provided by this article, and if the  governing
 body  is  satisfied  that no commission, salary, compensation, reward or
 recompense whatever will be paid or given to any person holding, operat-
 ing or conducting or assisting in the holding, operation and conduct  of
 any such games except as in this article otherwise provided; and that no
 prize  will  be offered and given in excess of the sum or value of [one]
 FIVE thousand dollars in any single game and that the aggregate  of  all
 prizes  offered  and  given  in  all of such games conducted on a single
 occasion, under said license shall  not  exceed  the  sum  or  value  of
 [three] FIFTEEN thousand dollars, it shall issue a license to the appli-
 cant  for the conduct of bingo upon payment of a license fee of eighteen
 dollars and seventy-five cents for each bingo occasion; provided, howev-
 er, that the governing body shall refuse to issue a license to an appli-
 cant seeking to conduct bingo  in  premises  of  a  licensed  commercial
 lessor where it determines that the premises presently owned or occupied
 by  said  applicant  are  in  every  respect  adequate  and suitable for
 conducting bingo games.
   § 17. Subdivision 1 of section 491 of the general  municipal  law,  as
 amended  by  chapter  667  of  the  laws  of 1980, is amended to read as
 follows:
   1. Within seven days after the conclusion of any  occasion  of  bingo,
 the  authorized  organization  which conducted the same, and its members
 who were in charge thereof, and when applicable the authorized organiza-
 tion which rented its premises therefor, shall each furnish to the clerk
 of the municipality a statement subscribed by the member in  charge  and
 affirmed  by  him  as  true, under the penalties of perjury, showing the
 amount of the gross receipts derived therefrom and each item of  expense
 incurred,  or paid, and each item of expenditure made or to be made, the
 name and address of each person to whom each such item has been paid, or
 is to be paid, with a detailed description of the merchandise  purchased
 or  the  services  rendered therefor, the net proceeds derived from such
 game or rental, as the case may be, and the use to which  such  proceeds
 have  been  or are to be applied and a list of prizes offered and given,
 with the respective values thereof[, and it]. THE CLERK OR  THE  DEPART-
 MENT  SHALL  MAKE PROVISIONS FOR THE OPTION FOR THE ELECTRONIC FILING OF
 SUCH STATEMENT. IT shall be the duty of each licensee  to  maintain  and
 keep  such  books  and  records  as may be necessary to substantiate the
 particulars of each such statement and within fifteen days after the end
 of each calendar quarter during which there has  been  any  occasion  of
 bingo,  a  summary  statement of such information, in form prescribed by

 A. 3009--B                         70
 
 the state, shall be furnished in the same manner to  the  [state  racing
 and wagering board] COMMISSION.
   §  18.  This act shall take effect on the ninetieth day after it shall
 have become a law.
 
                                  PART NN
 
   Section 1. Section 207 of the racing, pari-mutuel wagering and  breed-
 ing law, as added by chapter 18 of the laws of 2008, paragraphs a, b and
 c  of  subdivision 1 as added by section 4, paragraph c of subdivision 1
 as added by section 5 and subdivision 5 as added by section 6 of chapter
 457 of the laws of 2012, and paragraph d of subdivision 1 as amended  by
 section  1  of  part  C of chapter 73 of the laws of 2016, is amended to
 read as follows:
   § 207. Board of directors of a franchised  corporation.  1.    a.  The
 board  of directors, to be called the New York racing association [reor-
 ganization] board, shall consist of [seventeen] FIFTEEN  members[,  five
 of  whom  shall  be  elected by the present class A directors of The New
 York Racing Association, Inc., eight to be] WHO SHALL HAVE EQUAL  VOTING
 RIGHTS:  TWO appointed by the governor[, two to be] EACH OF WHOM MUST BE
 A RESIDENT OF NEW YORK STATE; ONE appointed by the  temporary  president
 of  the  senate  [and  two  to  be]; ONE appointed by the speaker of the
 assembly; EIGHT APPOINTED BY THE EXECUTIVE COMMITTEE  OF  THE  NEW  YORK
 RACING  ASSOCIATION REORGANIZATION BOARD OF DIRECTORS CONSTITUTED PURSU-
 ANT TO CHAPTER FOUR HUNDRED FIFTY-SEVEN OF  THE  LAWS  OF  TWO  THOUSAND
 TWELVE,  OF  WHICH AT LEAST ONE SHALL BE A FULL-TIME RESIDENT OF EACH OF
 NASSAU, QUEENS, AND SARATOGA COUNTIES, AND WHICH SHALL CONTINUE TO EXIST
 UNTIL SUCH TIME AS THE APPOINTMENTS REQUIRED HEREUNDER ARE MADE; ONE WHO
 SHALL BE THE PRESIDENT AND CHIEF EXECUTIVE  OFFICER  OF  THE  FRANCHISED
 CORPORATION,  EX  OFFICIO  AND WITHOUT TERM LIMITATION; ONE APPOINTED BY
 THE NEW YORK THOROUGHBRED BREEDERS, INC; AND ONE APPOINTED  BY  THE  NEW
 YORK THOROUGHBRED HORSEMEN'S ASSOCIATION REPRESENTING AT LEAST FIFTY-ONE
 PERCENT  OF  THE  HORSEMEN USING THE FACILITIES OF THE FRANCHISED CORPO-
 RATION. THE NEW YORK RACING ASSOCIATION BOARD MAY INCLUDE ADDITIONAL  EX
 OFFICIO,  NON-VOTING MEMBERS AS APPOINTED PURSUANT TO A MAJORITY VOTE OF
 THE BOARD.
   (i) The governor shall nominate a member to  serve  as  chair  FOR  AN
 INITIAL  TERM  OF  THREE  YEARS,  WHO SHALL SERVE AT THE PLEASURE OF THE
 GOVERNOR, subject to confirmation by majority  vote  of  the  board  [of
 directors.  All  non-ex officio members shall have equal voting rights].
 THEREAFTER, THE BOARD SHALL ELECT ITS CHAIR,  WHO  SHALL  SERVE  AT  THE
 PLEASURE OF THE BOARD, FROM AMONG ITS MEMBERS.
   (ii)  THE TERM OF VOTING MEMBERSHIP ON THE NEW YORK RACING ASSOCIATION
 BOARD SHALL BE THREE YEARS. INDIVIDUAL APPOINTEES SHALL  BE  LIMITED  TO
 SERVING  AS  A  VOTING  MEMBER  THE LESSER OF THREE TERMS OR NINE YEARS.
 NOTWITHSTANDING THE FOREGOING, THE FIRST TERMS OF FIVE  OF  THE  MEMBERS
 APPOINTED  BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING ASSOCIATION
 REORGANIZATION BOARD OF DIRECTORS SHALL  EXPIRE  DECEMBER  THIRTY-FIRST,
 TWO  THOUSAND  EIGHTEEN;  THE FIRST TERMS OF THE REMAINING THREE MEMBERS
 APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING  ASSOCIATION
 REORGANIZATION  BOARD OF DIRECTORS, THE MEMBER APPOINTED BY THE NEW YORK
 THOROUGHBRED BREEDERS, INC., AND THE MEMBER APPOINTED BY  THE  NEW  YORK
 THOROUGHBRED  HORSEMEN'S  ASSOCIATION  REPRESENTING  AT  LEAST FIFTY-ONE
 PERCENT OF THE HORSEMEN USING THE FACILITIES OF  THE  FRANCHISED  CORPO-
 RATION  SHALL  EXPIRE  DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN; AND
 THE FIRST TERMS OF THE MEMBERS APPOINTED BY THE GOVERNOR, THE  TEMPORARY

 A. 3009--B                         71
 
 PRESIDENT  OF  THE  SENATE, AND THE SPEAKER OF THE ASSEMBLY SHALL EXPIRE
 DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY.
   (III) In the event of a member vacancy occurring by death, resignation
 or  otherwise, the respective appointing [officer or officers] AUTHORITY
 shall appoint a successor  who  shall  hold  office  for  the  unexpired
 portion  of  the  term.  [A  vacancy from the members appointed from the
 present board of The New York Racing Association, Inc., shall be  filled
 by  the  remaining  such members] IN THE CASE OF VACANCIES AMONG MEMBERS
 APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING  ASSOCIATION
 REORGANIZATION  BOARD  OF DIRECTORS CONSTITUTED PURSUANT TO CHAPTER FOUR
 HUNDRED FIFTY-SEVEN OF THE LAWS OF  TWO  THOUSAND  TWELVE,  APPOINTMENTS
 THEREAFTER SHALL BE MADE BY THE REMAINING SUCH MEMBERS.
   b. The franchised corporation shall establish a compensation committee
 to fix salary guidelines, such guidelines to be consistent with an oper-
 ation  of other first class thoroughbred racing operations in the United
 States; a finance AND AUDIT committee, to review  annual  operating  and
 capital  budgets  for  each  of  the  three racetracks; a nominating AND
 GOVERNANCE committee, to nominate any new directors to be designated  by
 the  franchised  corporation  to  replace  its existing directors AND BE
 RESPONSIBLE FOR ALL ISSUES AFFECTING THE GOVERNANCE  OF  THE  FRANCHISED
 CORPORATION;  AN  EQUINE SAFETY COMMITTEE, TO REVIEW INDUSTRY BEST PRAC-
 TICES TO IMPROVE THE SAFETY OF HORSE RACING AT EACH OF THE  THREE  RACE-
 TRACKS; A RACING COMMITTEE TO ADDRESS ALL ISSUES RELATED TO RACING OPER-
 ATIONS;  and  an executive committee. Each of the compensation, finance,
 nominating and executive committees shall include at least  one  of  the
 directors  appointed  by the governor, and the executive committee shall
 include [at least one of] the  [directors]  DIRECTOR  appointed  by  the
 temporary  president of the senate and [at least one of] the [directors]
 DIRECTOR appointed by the speaker of the assembly.
   [b. In addition to these voting members, the board shall have  two  ex
 officio  members  to  advise  on  critical  economic  and  equine health
 concerns of the racing industry, one appointed by the New York Thorough-
 bred Breeders Inc., and one  appointed  by  the  New  York  thoroughbred
 horsemen's  association  (or  such  other  entity  as  is  certified and
 approved pursuant to section two hundred twenty-eight of this article).
   c. All directors shall serve  at  the  pleasure  of  their  appointing
 authority.]
   c. Upon the effective date of this paragraph, the structure of the NEW
 YORK  RACING  ASSOCIATION board [of the franchised corporation] shall be
 deemed to be incorporated within and made part  of  the  certificate  of
 incorporation  of  the  franchised corporation, and no amendment to such
 certificate of incorporation shall be necessary to give  effect  to  any
 such  provision,  and  any  provision  contained within such certificate
 inconsistent in any manner shall be superseded by the provisions of this
 section. Such board shall, however, make appropriate conforming  changes
 to  all  governing documents of the franchised corporation including but
 not limited to corporate by-laws.  Following  such  conforming  changes,
 amendments  to the by-laws of the franchised corporation shall [only] be
 made ONLY by unanimous vote of the board.
   [d. The board, which shall become  effective  upon  appointment  of  a
 majority  of public members, shall terminate five years from its date of
 creation.]
   2. Members of the NEW YORK RACING  ASSOCIATION  board  [of  directors]
 shall  serve  without  compensation  for  their  services,  but publicly
 appointed members of the board shall be entitled to  reimbursement  from

 A. 3009--B                         72
 
 the franchised corporation for actual and necessary expenses incurred in
 the performance of their official duties FOR THE BOARD.
   3.  Members  of  the NEW YORK RACING ASSOCIATION board [of directors],
 except as otherwise provided by law, may engage in  private  employment,
 or  in a profession or business, however no member shall have any direct
 or indirect economic interest in  any  video  lottery  gaming  facility,
 excluding incidental benefits based on purses or awards won in the ordi-
 nary conduct of racing operations, or any direct or indirect interest in
 any  development  undertaken at the racetracks of the state racing fran-
 chise.
   4. The affirmative vote of a majority  of  members  of  the  NEW  YORK
 RACING ASSOCIATION board [of directors] shall be necessary for the tran-
 saction  of any business or the exercise of any power or function of the
 franchised corporation. The franchised corporation may  delegate  on  an
 annual  basis  to one or more of its members, or its officers, agents or
 employees, such powers and duties as it may deem proper.
   5. Each voting member of the NEW YORK  RACING  ASSOCIATION  board  [of
 directors]  of  the franchised corporation shall annually make a written
 disclosure to [the] SUCH board of any interest  held  by  the  director,
 such director's spouse or unemancipated child, in any entity undertaking
 business  in  the  racing or breeding industry. Such interest disclosure
 shall be promptly updated, in writing, in  the  event  of  any  material
 change.
   The  NEW  YORK RACING ASSOCIATION board shall establish parameters for
 the reporting and disclosure of such director interests.
   6. EACH VOTING  MEMBER  OF  THE  NEW  YORK  RACING  ASSOCIATION  BOARD
 APPOINTED  BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING ASSOCIATION
 REORGANIZATION BOARD OF DIRECTORS  SHALL  SEEK  A  RACETRACK  MANAGEMENT
 LICENSE  ISSUED  BY  THE  GAMING COMMISSION, ANY FEES FOR WHICH SHALL BE
 WAIVED BY THE COMMISSION. NO VOTING MEMBER OF THE BOARD REQUIRED BY  THE
 FOREGOING  TO  SEEK A RACETRACK MANAGEMENT LICENSE MAY VOTE ON ANY BOARD
 MATTER UNTIL SUCH LICENSE IS ISSUED.
   7. FOR PURPOSES OF SECTION TWO HUNDRED TWELVE  OF  THIS  ARTICLE,  THE
 ESTABLISHMENT  OF  THE NEW YORK RACING ASSOCIATION, INC. BOARD OF DIREC-
 TORS UNDER THIS SECTION SHALL NOT CONSTITUTE THE ASSUMPTION OF THE FRAN-
 CHISE BY A SUCCESSOR ENTITY.
   § 2. Subparagraph (i) of paragraph (d) of subdivision 1 of section 238
 of the racing, pari-mutuel wagering and  breeding  law,  as  amended  by
 section  2  of  part BB of chapter 60 of the laws of 2016, is amended to
 read as follows:
   (i) The pari-mutuel tax rate  authorized  by  paragraph  (a)  of  this
 subdivision shall be effective so long as a franchised corporation noti-
 fies  the  gaming  commission by August fifteenth of each year that such
 pari-mutuel tax rate is effective of its intent to conduct a race  meet-
 ing at Aqueduct racetrack during the months of December, January, Febru-
 ary,  March  and April. For purposes of this paragraph such race meeting
 shall consist of not less than ninety-five days of racing UNLESS  OTHER-
 WISE  AGREED  TO IN WRITING BY THE NEW YORK THOROUGHBRED BREEDERS, INC.,
 THE NEW YORK THOROUGHBRED HORSEMEN'S ASSOCIATION (OR SUCH  OTHER  ENTITY
 AS  IS  CERTIFIED  AND  APPROVED PURSUANT TO SECTION TWO HUNDRED TWENTY-
 EIGHT OF THIS ARTICLE) AND APPROVED BY THE COMMISSION.   THE  FRANCHISED
 CORPORATION  SHALL  ENTER INTO A WRITTEN AGREEMENT WITH THE ORGANIZATION
 REPRESENTING AT LEAST FIFTY-ONE  PERCENT  OF  THE  OWNERS  AND  TRAINERS
 UTILIZING  THE FACILITIES OF THE FRANCHISED CORPORATION THAT GOVERNS THE
 TERMS AND CONDITIONS OF RACING DURING RACE  MEETINGS  CONDUCTED  BY  THE
 FRANCHISED  CORPORATION,  INCLUDING:  (A)  A  RATIO OF THE ALLOCATION OF

 A. 3009--B                         73
 
 PURSE MONIES FOR STAKES RACES AND OVERNIGHT RACES; AND (B) THE NUMBER OF
 LIVE RACING DAYS TO BE CONDUCTED PER RACE MEETING AT EACH OF THE FACILI-
 TIES OPERATED BY THE FRANCHISED CORPORATION. Not later than May first of
 each  year  that  such  pari-mutuel  tax  rate  is effective, the gaming
 commission shall determine whether a race meeting at Aqueduct  racetrack
 consisted of the number of days as required by this paragraph. In deter-
 mining the number of race days, cancellation of a race day because of an
 act  of  God  that  the gaming commission approves or because of weather
 conditions that are unsafe or  hazardous  which  the  gaming  commission
 approves  shall  not  be  construed  as a failure to conduct a race day.
 Additionally, cancellation of a race day because of circumstances beyond
 the control of such franchised corporation for which the gaming  commis-
 sion  gives  approval  shall  not be construed as a failure to conduct a
 race day. If the gaming commission determines that the number of days of
 racing as required by this paragraph have not occurred then the pari-mu-
 tuel tax rate in paragraph (a) of this subdivision shall revert  to  the
 pari-mutuel tax rates in effect prior to January first, nineteen hundred
 ninety-five.
   § 3. This act shall take effect April 1, 2017; provided, however, that
 section  one  of  this  act  shall take effect upon the appointment of a
 majority of board members; provided, further, that the  state  franchise
 oversight  board  shall  notify the legislative bill drafting commission
 upon the occurrence of such appointments in order  that  the  commission
 may  maintain an accurate and timely effective data base of the official
 text of the laws of the state of New York in furtherance of effectuating
 the provisions of section 44 of the legislative law and section 70-b  of
 the public officers law.
 
                                  PART OO

   Section  1.  Paragraph  (a)  of  subdivision  1 of section 1003 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  1
 of  part  FF  of  chapter  60 of the laws of 2016, 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

 A. 3009--B                         74
 
 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 [seventeen] EIGHTEEN;  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 [seventeen] EIGHTEEN; 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 FF of chapter 60 of the laws of 2016,  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 [seventeen] EIGHTEEN, the amount used exclusive-
 ly 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 FF of chapter 60 of the laws of 2016,  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

 A. 3009--B                         75
 
 thirtieth, two thousand [seventeen] EIGHTEEN 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 thirti-
 eth,  two  thousand  [seventeen] EIGHTEEN.   On any day on which a fran-
 chised 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 represen-
 tative 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 FF of  chapter  60  of
 the laws of 2016, 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 [seventeen] EIGHTEEN.  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 FF of chapter 60 of the laws of 2016,  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 [seventeen] EIGHTEEN.   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 FF of chapter
 60 of the laws of 2016, 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  [sixteen] SEVENTEEN, 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

 A. 3009--B                         76
 
 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 FF of chapter 60 of the
 laws of 2016, 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,  [2017]  2018;  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 FF of chapter 60 of the laws of 2016, 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, [2017] 2018; 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
 FF of chapter 60 of the laws of 2016, 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

 A. 3009--B                         77
 
 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 [seventeen] EIGHTEEN, 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
 [seventeen]  EIGHTEEN,  such  payment  shall  be seven-tenths of one per
 centum of such pools.
   § 10. This act shall take effect immediately.
 
                                  PART PP
 
   Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of  subdivi-
 sion  b  of section 1612 of the tax law, as amended by section 1 of part
 EE of chapter 60 of the laws of 2016, is amended to read as follows:
   (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
 agraph, when a vendor track, is located in Sullivan  county  and  within
 sixty  miles  from any gaming facility in a contiguous state such vendor
 fee shall, for a period of [nine] TEN years commencing April first,  two
 thousand  eight,  be at a rate of forty-one percent of the total revenue
 wagered at the vendor track after payout for  prizes  pursuant  to  this
 chapter, after which time such rate shall be as for all tracks in clause
 (C) of this subparagraph.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after April 1, 2017.
 
                                  PART QQ

 A. 3009--B                         78
 
   Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of  subdivi-
 sion  b of section 1612 of the tax law, as separately amended by section
 1 of part GG and section 2 of part SS of chapter 60 of the laws of 2016,
 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 state racing and wagering  board,
 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  nine-
 teen  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 convention  and  exhibition  space
 requiring a minimum capital investment of three hundred million dollars.
 Except for tracks having less than one thousand one hundred video gaming
 machines,  and  except for a vendor track located west of State Route 14
 from Sodus Point to the Pennsylvania border within New York, and  except
 for  Aqueduct  racetrack each track operator shall be required to co-in-
 vest 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 peri-
 od  may be carried over into subsequent years ending before April first,
 two thousand [seventeen] EIGHTEEN. Any amount attributable to a  capital
 expenditure  approved  prior  to  April  first, two thousand [seventeen]
 EIGHTEEN and completed before April first, two thousand [nineteen] TWEN-
 TY; or approved prior to April first, two thousand [twenty-one]  TWENTY-
 TWO  and completed before April first, two thousand [twenty-three] TWEN-
 TY-FOUR for a vendor track located west of State  Route  14  from  Sodus
 Point  to  the Pennsylvania border within 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 division prior to April first, two
 thousand  [seventeen]  EIGHTEEN  and completed prior to April first, two
 thousand [nineteen] TWENTY, exceed the vendor track's cumulative capital
 award during the five year  period  ending  April  first,  two  thousand

 A. 3009--B                         79
 
 [seventeen]  EIGHTEEN,  the vendor shall continue to receive the capital
 award after April first, two thousand [seventeen]  EIGHTEEN  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 capital award under this section. Any  opera-
 tor  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 depreciation of the capital improvement in
 accordance with generally accepted accounting  principles,  shall  reim-
 burse  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 thousand [seventeen] EIGHTEEN shall
 be deposited into the state lottery fund for education aid; and
   § 2. This act shall take effect immediately.
 
                                  PART RR
 
                           Intentionally Omitted

                                  PART SS
 
   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 EIGHTEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN TWO  HUNDRED
 NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FOUR 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 THOUSAND DOLLARS THE
 AMOUNT SHALL BE THE SUM OF (1) ELEVEN THOUSAND SIX HUNDRED DOLLARS,  (2)
 SIX  AND ONE-HALF 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) EIGHTEEN AND THIRTEEN HUNDREDTHS PERCENT OF THE
 EXCESS  OF  THE  BUSINESS  INCOME BASE OVER THREE HUNDRED FIFTY THOUSAND
 DOLLARS BUT NOT OVER THREE HUNDRED NINETY 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]

 A. 3009--B                         80
 
 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) (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 thousand dollars, OR
 (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S  CORPORATION
 THAT  DURING  THE  TAXABLE  YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW
 YORK GROSS BUSINESS 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 TWO HUNDRED FIFTY THOUSAND DOLLARS.
   (II)  FOR PURPOSES OF THIS PARAGRAPH, 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 TAXA-
 BLE YEAR.
   (C)  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  TWO
 HUNDRED FIFTY THOUSAND DOLLARS.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART TT
 
   Section  1.  Clause  (ii)  of  subparagraph  (B)  of  paragraph  1  of
 subsection (a) of section 601 of the tax law is amended by adding a  new
 subclause (IX) to read as follows:
   (IX)  FOR  TAX  YEARS  AFTER TWO THOUSAND SEVENTEEN, THE FOLLOWING TAX
 RATES SHALL APPLY IF NEW YORK TAXABLE INCOME IS OVER $1,000,000:
 
 OVER $1,000,000 BUT NOT OVER          $66,578 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $1,000,000
 OVER $5,000,000 BUT NOT OVER          $419,378 PLUS 9.32% OF EXCESS OVER
 $10,000,000                           $5,000,000
 OVER $10,000,000 BUT NOT OVER         $885,378 PLUS 9.82% OF EXCESS OVER
 $100,000,000                          $10,000,000
 OVER $100,000,000                     $9,723,378 PLUS 10.32% OF EXCESS
                                        OVER $100,000,000

 A. 3009--B                         81
 
   § 2. Clause (ii) of subparagraph (B) of paragraph 1 of subsection  (b)
 of  section 601 of the tax law is amended by adding a new subclause (IX)
 to read as follows:
   (IX)  FOR  TAX  YEARS  AFTER TWO THOUSAND SEVENTEEN, THE FOLLOWING TAX
 RATES SHALL APPLY IF NEW YORK TAXABLE INCOME IS OVER $1,000,000:
 
 OVER $1,000,000 BUT NOT OVER          $67,017 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $1,000,000
 OVER $5,000,000 BUT NOT OVER          $419,817 PLUS 9.32% OF EXCESS OVER
 $10,000,000                           $5,000,000
 OVER $10,000,000 BUT NOT OVER         $885,817 PLUS 9.82% OF EXCESS OVER
 $100,000,000                          $10,000,000
 OVER $100,000,000                     $9,723,817 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   § 3. Clause (ii) of subparagraph (B) of paragraph 1 of subsection  (c)
 of  section 601 of the tax law is amended by adding a new subclause (IX)
 to read as follows:
   (IX) FOR TAX YEARS AFTER TWO THOUSAND  SEVENTEEN,  THE  FOLLOWING  TAX
 RATES SHALL APPLY IF NEW YORK TAXABLE INCOME IS OVER $1,000,000:
 
 OVER $1,000,000 BUT NOT OVER          $67,391 PLUS 8.82% OF EXCESS OVER
 $5,000,000                            $1,000,000
 OVER $5,000,000 BUT NOT OVER          $420,191 PLUS 9.32% OF EXCESS OVER
 $10,000,000                           $5,000,000
 OVER $10,000,000                      $886,191 PLUS 9.82% OF EXCESS OVER
                                       $10,000,000
 OVER $100,000,000                     $9,724,191 PLUS 10.32% OF EXCESS
                                       OVER $100,000,000
   §  4. Section 601 of the tax law is amended by adding a new subsection
 (d-2) to read as follows:
   (D-2) ALTERNATIVE TAX  TABLE  BENEFIT  RECAPTURE.  FOR  TAXABLE  YEARS
 BEGINNING  AFTER  TWO  THOUSAND  SEVENTEEN FOR A TAXPAYER WHOSE NEW YORK
 TAXABLE INCOME IS OVER $1,000,000, THERE IS  HEREBY  IMPOSED  A  SUPPLE-
 MENTAL TAX IN ADDITION TO THE TAX IMPOSED UNDER SUBSECTIONS (A), (B) AND
 (C)  OF  THIS  SECTION FOR THE PURPOSE OF RECAPTURING THE BENEFIT OF THE
 TAX TABLES CONTAINED IN SUCH SUBSECTIONS. DURING  THESE  TAXABLE  YEARS,
 ANY REFERENCE IN THIS CHAPTER TO SUBSECTION (D) OF THIS SECTION SHALL BE
 READ AS A REFERENCE TO THIS SUBSECTION.
   (1) FOR RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS AND RESIDENT
 SURVIVING  SPOUSES, THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE
 SUM OF THE TAX TABLE BENEFITS DESCRIBED IN SUBPARAGRAPHS (A),  (B),  (C)
 AND  (D)  OF  THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE FRACTIONS IN
 SUCH SUBPARAGRAPHS.
   (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
 (B)  OF  PARAGRAPH  ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO
 THE 8.82 PERCENT RATE OF TAX FOR THE TAXABLE  YEAR  MULTIPLIED  BY  SUCH
 RATE  AND  (II)  THE  DOLLAR  DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE
 INCOME SET FORTH IN THE TAX TABLE APPLICABLE  TO  THE  TAXABLE  YEAR  IN
 CLAUSE  (II)  OF  SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (A) OF
 THIS SECTION LESS THE SUM OF TAX TABLE BENEFITS  IN  SUBPARAGRAPHS  (A),
 (B)  AND  (C)  OF  PARAGRAPH 1 OF SUBSECTION (D-1) OF THIS SECTION.  THE
 FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR  IS
 THE  LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED
 GROSS INCOME FOR THE TAXABLE YEAR  OVER  ONE  MILLION  DOLLARS  AND  THE
 DENOMINATOR IS FIFTY THOUSAND DOLLARS.

 A. 3009--B                         82
 
   (B)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
 (B) OF PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION  NOT  SUBJECT  TO
 THE  9.32  PERCENT  RATE  OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH
 RATE  AND  (II)  THE  DOLLAR  DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE
 INCOME SET FORTH IN THE TAX TABLE APPLICABLE  TO  THE  TAXABLE  YEAR  IN
 CLAUSE  (II)  OF  SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (A) OF
 THIS SECTION LESS THE SUM OF THE TAX  TABLE  BENEFITS  IN  SUBPARAGRAPHS
 (A),  (B) AND (C) OF PARAGRAPH 1 OF SUBSECTION (D-1) OF THIS SECTION AND
 SUCH TAX TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE  FRAC-
 TION  FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE
 LESSER OF FIFTY THOUSAND DOLLARS OR THE  EXCESS  OF  NEW  YORK  ADJUSTED
 GROSS  INCOME  FOR  THE  TAXABLE  YEAR OVER FIVE MILLION DOLLARS AND THE
 DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS  SUBPARA-
 GRAPH  SHALL  NOT  APPLY  TO  TAXPAYERS  WHO ARE NOT SUBJECT TO THE 9.32
 PERCENT TAX RATE.
   (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
 (B)  OF  PARAGRAPH  ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO
 THE 9.82 PERCENT RATE OF TAX FOR THE TAXABLE  YEAR  MULTIPLIED  BY  SUCH
 RATE  AND  (II)  THE  DOLLAR  DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE
 INCOME SET FORTH IN THE TAX TABLE APPLICABLE  TO  THE  TAXABLE  YEAR  IN
 CLAUSE  (II) OF PARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (A) OF THIS
 SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B)
 AND (C) OF PARAGRAPH 1 OF SUBSECTION (D-1) OF THIS SECTION AND SUCH  TAX
 TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRAC-
 TION  FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE
 LESSER OF FIFTY THOUSAND DOLLARS OR THE  EXCESS  OF  NEW  YORK  ADJUSTED
 GROSS  INCOME  FOR  THE  TAXABLE  YEAR  OVER TEN MILLION DOLLARS AND THE
 DENOMINATOR IS FIFTY THOUSAND DOLLARS.  PROVIDED, HOWEVER, THIS SUBPARA-
 GRAPH SHALL NOT APPLY TO TAXPAYERS WHO  ARE  NOT  SUBJECT  TO  THE  9.82
 PERCENT TAX RATE.
   (D)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
 (B) OF PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION  NOT  SUBJECT  TO
 THE  10.32  PERCENT  RATE OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH
 RATE AND (II) THE DOLLAR DENOMINATED TAX  FOR  SUCH  AMOUNT  OF  TAXABLE
 INCOME  SET  FORTH  IN  THE  TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN
 CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF  SUBSECTION  (A)  OF
 THIS  SECTION  LESS  THE  SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS
 (A), (B) AND (C) OF PARAGRAPH 1 OF SUBSECTION (D-1) OF THIS SECTION  AND
 SUCH  TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C) OF THIS PARA-
 GRAPH. THE FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED  AS  FOLLOWS:  THE
 NUMERATOR  IS  THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW
 YORK ADJUSTED GROSS INCOME FOR THE TAXABLE YEAR OVER ONE HUNDRED MILLION
 DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
   (E) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION  OF  ANY
 TAX  CREDITS  SHALL  NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE
 TAX TABLES IN SUBSECTION (A) OF THIS SECTION MULTIPLIED BY  THE  TAXPAY-
 ER'S TAXABLE INCOME.
   (2) FOR RESIDENT HEADS OF HOUSEHOLDS, THE SUPPLEMENTAL TAX SHALL BE AN
 AMOUNT  EQUAL TO THE SUM OF THE TAX TABLE BENEFITS DESCRIBED IN SUBPARA-
 GRAPHS (A), (B), (C) AND (D)  OF  THIS  PARAGRAPH  MULTIPLIED  BY  THEIR
 RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPHS.
   (A)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH

 A. 3009--B                         83
 
 (B) OF PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION  NOT  SUBJECT  TO
 THE  8.82  PERCENT  RATE  OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH
 RATE AND (II) THE DOLLAR DENOMINATED TAX  FOR  SUCH  AMOUNT  OF  TAXABLE
 INCOME  SET  FORTH  IN  THE  TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN
 CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF  SUBSECTION  (B)  OF
 THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A)
 AND  (B)  OF PARAGRAPH 2 OF SUBSECTION (D-1) OF THIS SECTION.  THE FRAC-
 TION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS  THE
 LESSER  OF  FIFTY  THOUSAND  DOLLARS  OR THE EXCESS OF NEW YORK ADJUSTED
 GROSS INCOME FOR THE TAXABLE YEAR  OVER  ONE  MILLION  DOLLARS  AND  THE
 DENOMINATOR IS FIFTY THOUSAND DOLLARS.
   (B)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
 (B) OF PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION  NOT  SUBJECT  TO
 THE  9.32  PERCENT  RATE  OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH
 RATE AND (II) THE DOLLAR DENOMINATED TAX  FOR  SUCH  AMOUNT  OF  TAXABLE
 INCOME  SET  FORTH  IN  THE  TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN
 CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF  SUBSECTION  (B)  OF
 THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A)
 AND  (B) OF PARAGRAPH 2 OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX
 TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.  THE  FRACTION  FOR
 THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF
 FIFTY  THOUSAND  DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME
 FOR THE TAXABLE YEAR OVER FIVE MILLION DOLLARS AND  THE  DENOMINATOR  IS
 FIFTY  THOUSAND  DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT
 APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 9.32 PERCENT TAX RATE.
   (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
 (B)  OF  PARAGRAPH  ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO
 THE 9.82 PERCENT RATE OF TAX FOR THE TAXABLE  YEAR  MULTIPLIED  BY  SUCH
 RATE  AND  (II)  THE  DOLLAR  DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE
 INCOME SET FORTH IN THE TAX TABLE APPLICABLE  TO  THE  TAXABLE  YEAR  IN
 CLAUSE  (II)  OF  SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (B) OF
 THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A)
 AND (B) OF PARAGRAPH 2 OF SUBSECTION (D-1) OF THIS SECTION AND SUCH  TAX
 TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRAC-
 TION  FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE
 LESSER OF FIFTY THOUSAND DOLLARS OR THE  EXCESS  OF  NEW  YORK  ADJUSTED
 GROSS  INCOME  FOR  THE  TAXABLE  YEAR  OVER TEN MILLION DOLLARS AND THE
 DENOMINATOR IS FIFTY THOUSAND DOLLARS.
   (D) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
 (B)  OF  PARAGRAPH  ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO
 THE 10.32 PERCENT RATE OF TAX FOR THE TAXABLE YEAR  MULTIPLIED  BY  SUCH
 RATE  AND  (II)  THE  DOLLAR  DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE
 INCOME SET FORTH IN THE TAX TABLE APPLICABLE  TO  THE  TAXABLE  YEAR  IN
 CLAUSE  (II)  OF  SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (B) OF
 THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A)
 AND (B) OF PARAGRAPH 2 OF SUBSECTION (D-1) OF THIS SECTION AND SUCH  TAX
 TABLE  BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C) OF THIS PARAGRAPH. THE
 FRACTION FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR  IS
 THE  LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED
 GROSS INCOME FOR THE TAXABLE YEAR OVER ONE HUNDRED MILLION  DOLLARS  AND
 THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
   (E)  PROVIDED,  HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY
 TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET  FORTH  IN  THE

 A. 3009--B                         84
 
 TAX  TABLES  IN SUBSECTION (B) OF THIS SECTION MULTIPLIED BY THE TAXPAY-
 ER'S TAXABLE INCOME.
   (3)  FOR  RESIDENT UNMARRIED INDIVIDUALS, RESIDENT MARRIED INDIVIDUALS
 FILING SEPARATE RETURNS AND RESIDENT ESTATES  AND  TRUSTS,  THE  SUPPLE-
 MENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS
 DESCRIBED  IN  SUBPARAGRAPHS  (A),  (B),  (C)  AND (D) OF THIS PARAGRAPH
 MULTIPLIED BY THEIR RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPHS.
   (A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
 (B)  OF  PARAGRAPH  ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO
 THE 8.82 PERCENT RATE OF TAX FOR THE TAXABLE  YEAR  MULTIPLIED  BY  SUCH
 RATE  AND  (II)  THE  DOLLAR  DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE
 INCOME SET FORTH IN THE TAX TABLE APPLICABLE  TO  THE  TAXABLE  YEAR  IN
 CLAUSE  (II)  OF  SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (C) OF
 THIS SECTION LESS THE SUM OF TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND
 (B) OF PARAGRAPH 3 OF SUBSECTION (D-1) OF THIS SECTION.  THE FRACTION IS
 COMPUTED AS FOLLOWS: THE NUMERATOR  IS  THE  LESSER  OF  FIFTY  THOUSAND
 DOLLARS  OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME FOR THE TAXABLE
 YEAR OVER ONE MILLION DOLLARS AND  THE  DENOMINATOR  IS  FIFTY  THOUSAND
 DOLLARS.
   (B)  THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
 (B) OF PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION  NOT  SUBJECT  TO
 THE  9.32  PERCENT  RATE  OF TAX FOR THE TAXABLE YEAR MULTIPLIED BY SUCH
 RATE AND (II) THE DOLLAR DENOMINATED TAX  FOR  SUCH  AMOUNT  OF  TAXABLE
 INCOME  SET  FORTH  IN  THE  TAX TABLE APPLICABLE TO THE TAXABLE YEAR IN
 CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF  SUBSECTION  (C)  OF
 THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A)
 AND  (B) OF PARAGRAPH 3 OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX
 TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.  THE  FRACTION  FOR
 THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE LESSER OF
 FIFTY  THOUSAND  DOLLARS OR THE EXCESS OF NEW YORK ADJUSTED GROSS INCOME
 FOR THE TAXABLE YEAR OVER FIVE MILLION DOLLARS AND  THE  DENOMINATOR  IS
 FIFTY  THOUSAND  DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT
 APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 9.32 PERCENT TAX RATE.
   (C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
 (B)  OF  PARAGRAPH  ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO
 THE 9.82 PERCENT RATE OF TAX FOR THE TAXABLE  YEAR  MULTIPLIED  BY  SUCH
 RATE  AND  (II)  THE  DOLLAR  DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE
 INCOME SET FORTH IN THE TAX TABLE APPLICABLE  TO  THE  TAXABLE  YEAR  IN
 CLAUSE  (II)  OF  SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (C) OF
 THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A)
 AND (B) OF PARAGRAPH 3 OF SUBSECTION (D-1) OF THIS SECTION AND SUCH  TAX
 TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRAC-
 TION  FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS THE
 LESSER OF FIFTY THOUSAND DOLLARS OR THE  EXCESS  OF  NEW  YORK  ADJUSTED
 GROSS  INCOME  FOR  THE  TAXABLE  YEAR  OVER TEN MILLION DOLLARS AND THE
 DENOMINATOR IS FIFTY THOUSAND DOLLARS.
   (D) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT  OF
 TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
 (B)  OF  PARAGRAPH  ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO
 THE 10.32 PERCENT RATE OF TAX FOR THE TAXABLE YEAR  MULTIPLIED  BY  SUCH
 RATE  AND  (II)  THE  DOLLAR  DENOMINATED TAX FOR SUCH AMOUNT OF TAXABLE
 INCOME SET FORTH IN THE TAX TABLE APPLICABLE  TO  THE  TAXABLE  YEAR  IN
 CLAUSE  (II)  OF  SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (C) OF

 A. 3009--B                         85
 
 THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A)
 AND (B) OF PARAGRAPH 3 OF SUBSECTION (D-1) OF THIS SECTION AND SUCH  TAX
 TABLE  BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C) OF THIS PARAGRAPH. THE
 FRACTION  FOR THIS SUBPARAGRAPH IS COMPUTED AS FOLLOWS: THE NUMERATOR IS
 THE LESSER OF FIFTY THOUSAND DOLLARS OR THE EXCESS OF NEW YORK  ADJUSTED
 GROSS  INCOME  FOR THE TAXABLE YEAR OVER ONE HUNDRED MILLION DOLLARS AND
 THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
   (E) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION  OF  ANY
 TAX  CREDITS  SHALL  NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE
 TAX TABLES IN SUBSECTION (C) OF THIS SECTION MULTIPLIED BY  THE  TAXPAY-
 ER'S TAXABLE INCOME.
   §  5.  Subsection  (f)  of  section  614 of the tax law, as amended by
 section 11 of part FF of chapter 59 of the laws of 2013, is  amended  to
 read as follows:
   (f) Adjusted standard deduction. For taxable years beginning after two
 thousand  seventeen,  the  standard deductions set forth in this section
 shall be the amounts set forth in this section adjusted by the  cost  of
 living  adjustment  prescribed in section six hundred one-a of this part
 for tax years two thousand thirteen [through two thousand seventeen] AND
 THEREAFTER.
   § 6. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART UU
 
   Section 1. Paragraph (a) of subdivision 1 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) A taxpayer shall be allowed a credit, to be computed as hereinaft-
 er  provided, against the tax imposed by this article. The amount of the
 credit shall be the percent provided for hereinbelow of  the  investment
 credit  base.  The investment credit base is the cost or other basis for
 federal income tax purposes of  tangible  personal  property  and  other
 tangible  property,  including  buildings  and  structural components of
 buildings, described in paragraph (b)  of  this  subdivision,  less  the
 amount  of  the  nonqualified nonrecourse financing with respect to such
 property to the extent such financing would be excludible from the cred-
 it base pursuant to  section  46(c)(8)  of  the  internal  revenue  code
 (treating such property as section thirty-eight property irrespective of
 whether  or  not  it in fact constitutes section thirty-eight property).
 If, at the close of a taxable year following the taxable year  in  which
 such  property  was  placed  in  service, there is a net decrease in the
 amount of nonqualified nonrecourse financing with respect to such  prop-
 erty, such net decrease shall be treated as if it were the cost or other
 basis  of  property  described  in  paragraph  (b)  of  this subdivision
 acquired, constructed, reconstructed or erected during the year  of  the
 decrease  in  the  amount  of nonqualified nonrecourse financing. In the
 case of a combined report the term investment credit base shall mean the
 sum of the investment credit base of each corporation included  on  such
 report. The percentage to be used to compute the credit allowed pursuant
 to  this  subdivision  shall  be  five percent with respect to the first
 three hundred fifty million dollars of the investment credit  base,  and
 four  percent  with  respect  to the investment credit base in excess of
 three hundred fifty million dollars, except that in the case of research
 and development property at the option of the  taxpayer  the  applicable
 percentage shall be [nine] EIGHTEEN.

 A. 3009--B                         86
 
   §  2.  Paragraph 1 of subsection (a) of section 606 of the tax law, as
 amended by chapter 170 of the laws  of  1994,  is  amended  to  read  as
 follows:
   (1) A taxpayer shall be allowed a credit, to be computed as hereinaft-
 er  provided, against the tax imposed by this article. The amount of the
 credit shall be the per cent provided for hereinbelow of the  investment
 credit  base. The investment credit base is the cost or other basis, for
 federal income tax purposes, of tangible  personal  property  and  other
 tangible  property,  including  buildings  and  structural components of
 buildings, described in paragraph  two  of  this  subsection,  less  the
 amount  of  the  nonqualified nonrecourse financing with respect to such
 property to the extent such financing would be excludible from the cred-
 it base pursuant to  section  46(c)(8)  of  the  internal  revenue  code
 (treating such property as section thirty-eight property irrespective of
 whether  or  not  it in fact constitutes section thirty-eight property).
 If, at the close of a taxable year following the taxable year  in  which
 such  property  was  placed  in  service, there is a net decrease in the
 amount of nonqualified nonrecourse financing with respect to such  prop-
 erty, such net decrease shall be treated as if it were the cost or other
 basis  of  property  described  in  paragraph  two  of  this  subsection
 acquired, constructed, reconstructed or erected during the year  of  the
 decrease  in  the  amount  of  nonqualified  nonrecourse  financing. The
 percentage to be used to compute the credit  allowed  pursuant  to  this
 subsection  shall  be  that  percentage appearing in column two which is
 opposite the appropriate period in column  one  in  which  the  tangible
 personal  property  was acquired, constructed, reconstructed or erected,
 as the case may be:
 
 Column 1                             Column 2
 After December 31, 1968 and
 prior to January 1, 1974             one per cent
 After December 31, 1973 and
 prior to January 1, 1978             two per cent
 After December 31, 1977 and
 prior to January 1, 1979             three per cent
 After December 31, 1978 and
 prior to June 1, 1981                four per cent
 After May 31, 1981 and
 prior to July 1, 1982                five per cent
 After June 30, 1982 and
 before January 1, 1987               six per cent
 After December 31, 1986              four per cent, except that  in  the
                                      case of  research  and  development
                                      property  the applicable percentage
                                      shall be [seven] FOURTEEN
 
 Provided, however, that in the case  of  an  acquisition,  construction,
 reconstruction  or  erection  which  was commenced in any one period and
 continued or completed in any subsequent period the credit shall be  the
 sum  of  the portions of the investment credit base attributable to each
 such period, which portion with respect to each  such  period  shall  be
 ascertained by multiplying such investment credit base by a fraction the
 numerator  of  which  shall  be the expenditures paid or incurred during
 such period for such purposes and the denominator of which shall be  the
 total  of  all  expenditures  paid  or  incurred  for  such acquisition,

 A. 3009--B                         87
 
 construction, reconstruction or erection, multiplied  by  the  allowable
 percentage for each such period.
   § 3. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART VV
 
   Section  1.  Subdivision  3 of section 355 of the economic development
 law, as amended by section 4 of part G of chapter  61  of  the  laws  of
 2011, is amended to read as follows:
   3.  Excelsior research and development tax credit component. A partic-
 ipant in the excelsior jobs program shall be eligible to claim a  credit
 equal  to  fifty  percent  of  the  portion of the participant's federal
 research and development tax credit that relates  to  the  participant's
 research and development expenditures in New York state during the taxa-
 ble  year;  provided however, the excelsior research and development tax
 credit shall not exceed [three] SIX percent of  the  qualified  research
 and development expenditures attributable to activities conducted in New
 York  state. If the federal research and development credit has expired,
 then the research and development expenditures relating to  the  federal
 research  and  development  credit shall be calculated as if the federal
 research and development credit structure and definition  in  effect  in
 two  thousand  nine  were  still  in effect.   Notwithstanding any other
 provision of this chapter to  the  contrary,  research  and  development
 expenditures  in  this state, including salary or wage expenses for jobs
 related to research and development activities in  this  state,  may  be
 used  as the basis for the excelsior research and development tax credit
 component and the  qualified  emerging  technology  company  facilities,
 operations and training credit under the tax law.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART WW
 
   Section  1.  Subdivision 16 of section 352 of the economic development
 law, as amended by section 1 of part K of chapter  59  of  the  laws  of
 2015, is amended and a new subdivision 20-a is added to read as follows:
   16. "Regionally significant project" means (a) a manufacturer creating
 at  least  [fifty]  TEN net new jobs in the state and making significant
 capital investment in the state; (b) a business creating at least [twen-
 ty] TEN net new jobs in agriculture in the state and making  significant
 capital investment in the state, (c) a financial services firm, distrib-
 ution  center,  or  back  office operation creating at least [three] ONE
 hundred net new jobs in the state and making significant capital invest-
 ment in the state, (d) a scientific research and development firm creat-
 ing at least [twenty] TEN net new jobs in the state, and making  signif-
 icant  capital  investment  in the state or (e) an entertainment company
 creating or obtaining at least two hundred net new jobs in the state and
 making significant capital investment in  the  state.  Other  businesses
 creating [three] ONE hundred FIFTY or more net new jobs in the state and
 making  significant  capital  investment  in the state may be considered
 eligible as a regionally significant  project  by  the  commissioner  as
 well.  The commissioner shall promulgate regulations pursuant to section
 three hundred fifty-six of this article to determine  [what  constitutes
 significant  capital investment for each of the project categories indi-
 cated in this subdivision and] what additional criteria a business  must

 A. 3009--B                         88
 
 meet  to be eligible as a regionally significant project, including, but
 not limited to, whether a business exports a substantial portion of  its
 products  or  services outside of the state or outside of a metropolitan
 statistical area or county within the state.
   20-A.  "SIGNIFICANT  CAPITAL INVESTMENT" MEANS A PROJECT WHICH WILL BE
 EITHER A NEWLY CONSTRUCTED FACILITY OR A NEWLY CONSTRUCTED ADDITION  TO,
 EXPANSION  OF  OR  IMPROVEMENT  OF  A  FACILITY,  CONSISTING OF TANGIBLE
 PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING  BUILDINGS  AND
 STRUCTURAL  COMPONENTS  OF  BUILDINGS,  THAT ARE DEPRECIABLE PURSUANT TO
 SECTION ONE HUNDRED SIXTY-SEVEN OF THE INTERNAL  REVENUE  CODE,  HAVE  A
 USEFUL  LIFE  OF FOUR YEARS OR MORE, ARE ACQUIRED BY PURCHASE AS DEFINED
 IN SECTION ONE HUNDRED SEVENTY-NINE (D) OF THE  INTERNAL  REVENUE  CODE,
 AND  THAT  IS EQUAL TO OR EXCEEDS (A) ONE MILLION DOLLARS FOR A MANUFAC-
 TURER; (B) TWO HUNDRED FIFTY THOUSAND DOLLARS FOR AN  AGRICULTURE  BUSI-
 NESS;  (C)  THREE  MILLION DOLLARS FOR A FINANCIAL SERVICES FIRM OR BACK
 OFFICE OPERATION; (D) FIFTEEN MILLION DOLLARS FOR A DISTRIBUTION CENTER;
 (E) THREE MILLION DOLLARS FOR  A  SCIENTIFIC  RESEARCH  AND  DEVELOPMENT
 FIRM; OR (F) THREE MILLION DOLLARS FOR OTHER BUSINESSES.
   §  2.  Subdivisions 3 and 4 of section 353 of the economic development
 law, subdivision 3 as amended by section 2 of part K of  chapter  59  of
 the  laws of 2015 and subdivision 4 as amended by section 1 of part C of
 chapter 68 of the laws of 2013, are amended to read as follows:
   3. For the purposes of this article, in order to  participate  in  the
 excelsior  jobs  program,  a  business entity operating predominantly in
 manufacturing must create at least [ten] FIVE net new jobs;  a  business
 entity  operating predominately in agriculture must create at least five
 net new jobs; a business entity operating predominantly as  a  financial
 service data center or financial services customer back office operation
 must create at least [fifty] TWENTY-FIVE net new jobs; a business entity
 operating  predominantly  in  scientific  research  and development must
 create at least five net new jobs; a business entity operating  predomi-
 nantly in software development must create at least five net new jobs; a
 business entity creating or expanding back office operations must create
 at  least  [fifty] TWENTY-FIVE net new jobs; a business entity operating
 predominately in music production must create  at  least  five  net  new
 jobs;  a  business  entity  operating  predominantly as an entertainment
 company must create or obtain at least one hundred net new  jobs;  or  a
 business  entity operating predominantly as a distribution center in the
 state must create at least [seventy-five] FIFTY net new  jobs,  notwith-
 standing  subdivision five of this section; or a business entity must be
 a regionally significant project as defined in this article; or
   4. A business entity operating predominantly in one of the  industries
 referenced  in  paragraphs  (a)  through  (h) of subdivision one of this
 section but which does not meet  the  job  requirements  of  subdivision
 three  of  this  section  must  have  at least twenty-five full-time job
 equivalents unless such business is a business entity operating predomi-
 nantly in manufacturing then it must have at least [ten] FIVE  full-time
 job  equivalents  and must demonstrate that its benefit-cost ratio is at
 least ten to one.
   § 3. This act shall take effect immediately.
 
                                  PART XX
 
   Section 1. Paragraph 1 of subsection (d) of section  606  of  the  tax
 law,  as  amended  by  section  1 of part Q of chapter 63 of the laws of
 2000, is amended to read as follows:

 A. 3009--B                         89
 
   (1) General. A taxpayer shall be allowed a credit as  provided  herein
 equal  to  (i)  the  applicable  percentage  of the earned income credit
 allowed under section thirty-two of the internal revenue  code  for  the
 same taxable year, (ii) reduced by the credit permitted under subsection
 (b) of this section.
   The  applicable percentage shall be (i) seven and one-half percent for
 taxable years  beginning  in  nineteen  hundred  ninety-four,  (ii)  ten
 percent  for  taxable  years  beginning in nineteen hundred ninety-five,
 (iii) twenty percent for taxable years beginning after nineteen  hundred
 ninety-five  and  before  two  thousand,  (iv)  twenty-two  and one-half
 percent for taxable years beginning in  two  thousand,  (v)  twenty-five
 percent  for  taxable  years beginning in two thousand one, (vi) twenty-
 seven and one-half percent for taxable years beginning in  two  thousand
 two,  and  (vii) thirty percent for taxable years beginning in two thou-
 sand three, and (VIII) THIRTY-TWO AND ONE-HALF PERCENT FOR  THE  TAXABLE
 YEAR  BEGINNING  IN  TWO THOUSAND EIGHTEEN, AND (IX) THIRTY-FIVE PERCENT
 FOR TAXABLE YEARS BEGINNING IN TWO  THOUSAND  NINETEEN  AND  thereafter.
 [Provided,  however,  that  if  the  reversion event, as defined in this
 paragraph, occurs, the applicable percentage shall be twenty percent for
 taxable years ending on or after the date on which the  reversion  event
 occurred.  The  reversion  event shall be deemed to have occurred on the
 date on which federal action, including but not limited to,  administra-
 tive,  statutory or regulatory changes, materially reduces or eliminates
 New York state's allocation of  the  federal  temporary  assistance  for
 needy  families  block  grant,  or materially reduces the ability of the
 state to spend federal temporary assistance  for  needy  families  block
 grant  funds for the earned income credit or to apply state general fund
 spending on the earned income credit toward the temporary assistance for
 needy families block grant maintenance of effort  requirement,  and  the
 commissioner  of the office of temporary and disability assistance shall
 certify the date of such event  to  the  commissioner  of  taxation  and
 finance,  the director of the division of the budget, the speaker of the
 assembly and the temporary president of the senate.]
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after 2018.
 
                                  PART YY
 
   Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
 subsection (ccc) to read as follows:
   (CCC)  UNIVERSAL  VISITABILITY TAX CREDIT. 1. FOR TAXABLE YEARS BEGIN-
 NING ON OR AFTER JANUARY FIRST, TWO THOUSAND  EIGHTEEN,  UNTIL  DECEMBER
 THIRTY-FIRST,  TWO  THOUSAND  TWENTY-TWO,  A TAXPAYER SHALL BE ALLOWED A
 CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE  FOR  A  PORTION  OF  THE
 TOTAL  PURCHASE  PRICE  PAID  BY SUCH TAXPAYER FOR A PRINCIPAL RESIDENCE
 ATTRIBUTABLE TO UNIVERSAL VISITABILITY OR THE TOTAL AMOUNT EXPENDED BY A
 TAXPAYER  TO  RETROFIT  AN  EXISTING  PRINCIPAL  RESIDENCE  TO   ACHIEVE
 UNIVERSAL  VISITABILITY  PROVIDED  THAT  THE  PRINCIPAL RESIDENCE OR THE
 RETROFITTING OF THE EXISTING PRINCIPAL RESIDENCE IS LOCATED WITHIN  THIS
 STATE  AND DESIGNED TO PROVIDE UNIVERSAL VISITABILITY AS DEFINED THROUGH
 THE ELIGIBILITY REQUIREMENTS ESTABLISHED BY GUIDELINES DEVELOPED BY  THE
 DIVISION OF CODE ENFORCEMENT AND ADMINISTRATION WITHIN THE DEPARTMENT OF
 STATE.  FOR  THE  PURPOSE  OF THIS SUBSECTION, PRINCIPAL RESIDENCE SHALL
 MEAN SUCH RESIDENCE PURSUANT TO SECTION ONE HUNDRED  TWENTY-ONE  OF  THE
 INTERNAL REVENUE CODE.

 A. 3009--B                         90
 
   2. THE CREDIT SHALL BE ALLOWED FOR THE TAXABLE YEAR IN WHICH THE PRIN-
 CIPAL  RESIDENCE  HAS BEEN PURCHASED OR CONSTRUCTED, OR THE RETROFITTING
 OR RENOVATION OF THE RESIDENCE OR RESIDENTIAL UNIT HAS  BEEN  COMPLETED.
 THE  CREDIT ALLOWED UNDER THIS SECTION SHALL NOT EXCEED (I) TWENTY-SEVEN
 HUNDRED FIFTY DOLLARS FOR THE PURCHASE OF A NEW RESIDENCE, OR (II) FIFTY
 PERCENT  OF  THE  TOTAL  AMOUNT EXPENDED, BUT NOT TO EXCEED TWENTY-SEVEN
 HUNDRED FIFTY DOLLARS FOR THE RETROFITTING OR RENOVATION OF EACH  EXIST-
 ING RESIDENCE OR UNIT.
   3.  NO  CREDIT  SHALL  BE ALLOWED UNDER THIS SECTION FOR THE PURCHASE,
 RETROFITTING OR RENOVATION OF RESIDENTIAL RENTAL PROPERTY.
   4. NO CREDIT SHALL BE ALLOWED  UNDER  THIS  SUBSECTION  FOR  THE  SAME
 UNIVERSAL VISITABILITY IMPROVEMENTS PREVIOUSLY CLAIMED BY A TAXPAYER.
   5.  IF  THE AMOUNT OF THE CREDIT ALLOWABLE 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.
   6. ELIGIBLE TAXPAYERS SHALL APPLY FOR THE CREDIT BY MAKING APPLICATION
 TO THE DIVISION  OF  CODE  ENFORCEMENT  AND  ADMINISTRATION  WITHIN  THE
 DEPARTMENT OF STATE. THE DIVISION OF CODE ENFORCEMENT AND ADMINISTRATION
 WITHIN  THE  DEPARTMENT  OF  STATE  SHALL  ISSUE  A CERTIFICATION FOR AN
 APPROVED APPLICATION TO THE TAXPAYER.  THE  TAXPAYER  SHALL  SUBMIT  THE
 CERTIFICATION TOGETHER WITH THEIR PERSONAL INCOME RETURN.
   7.  (A)  THE  AGGREGATE  AMOUNT OF TAX CREDITS ALLOWED PURSUANT TO THE
 AUTHORITY OF THIS SUBSECTION SHALL BE  ONE  MILLION  DOLLARS  EACH  YEAR
 DURING THE PERIOD TWO THOUSAND EIGHTEEN THROUGH TWO THOUSAND TWENTY-TWO.
 SUCH  AGGREGATE  AMOUNTS OF CREDITS SHALL BE ALLOCATED BY THE DEPARTMENT
 OF STATE AMONG TAXPAYERS IN ORDER OF PRIORITY BASED  UPON  THE  DATE  OF
 FILING AN APPLICATION FOR ALLOCATION OF CREDIT WITH THE DIVISION OF CODE
 ENFORCEMENT AND ADMINISTRATION. 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.
   (B) THE SECRETARY OF STATE, AFTER CONSULTING  WITH  THE  COMMISSIONER,
 SHALL  PROMULGATE  REGULATIONS  BY  OCTOBER  THIRTY-FIRST,  TWO THOUSAND
 SEVENTEEN TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF TAX  CREDITS  AS
 REQUIRED  BY THIS SUBPARAGRAPH. SUCH RULES AND REGULATIONS SHALL INCLUDE
 PROVISIONS DESCRIBING THE APPLICATION PROCESS, THE  DUE  DAYS  FOR  SUCH
 APPLICATIONS, THE STANDARDS WHICH SHALL BE USED TO EVALUATE THE APPLICA-
 TIONS,  THE DOCUMENTATION THAT WILL BE PROVIDED TO TAXPAYERS TO SUBSTAN-
 TIATE TO THE DEPARTMENT THE AMOUNT OF  TAX  CREDITS  ALLOCATED  TO  SUCH
 TAXPAYERS,  AND  SUCH OTHER PROVISIONS AS DEEMED NECESSARY AND APPROPRI-
 ATE. 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 SEVENTEEN DEADLINE.
   8. THE DEPARTMENT OF STATE SHALL SUBMIT TO THE GOVERNOR, THE TEMPORARY
 PRESIDENT  OF  THE  SENATE,  AND  THE SPEAKER OF THE ASSEMBLY, AN ANNUAL
 REPORT TO BE SUBMITTED BY FEBRUARY FIRST OF  EACH  YEAR  EVALUATING  THE
 EFFECTIVENESS  OF THE UNIVERSAL VISITABILITY TAX CREDIT PROVIDED BY THIS
 SECTION. SUCH REPORT SHALL BE BASED ON DATA AVAILABLE FROM THE  APPLICA-
 TION  FILED WITH THE DIVISION OF CODE ENFORCEMENT AND ADMINISTRATION FOR
 UNIVERSAL VISITABILITY CREDITS. NOTWITHSTANDING 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 RECOM-

 A. 3009--B                         91

 MENDATION OF THE COMMISSIONER OF THE DEPARTMENT OF STATE OR THE DIVISION
 OF  CODE  ENFORCEMENT  AND ADMINISTRATION REGARDING CONTINUING MODIFICA-
 TION, REPEAL OF SUCH ACT, AND SUCH OTHER INFORMATION REGARDING  THE  ACT
 AS THE DIVISION MAY FEEL USEFUL AND APPROPRIATE.
   § 2. This act shall take effect immediately and shall apply to taxable
 years  commencing  on  and after January 1, 2018 and shall expire and be
 deemed repealed December 31, 2022.
 
                                  PART ZZ
 
                           Intentionally Omitted
 
                                 PART AAA
 
   Section 1. The tax law is amended by adding a new section 43  to  read
 as follows:
   §  43.  EMPIRE STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT.
 (1) A TAXPAYER WHICH IS A MUSIC PRODUCTION ENTITY ENGAGED  IN  QUALIFIED
 MUSIC  PRODUCTION, OR WHO IS A SOLE PROPRIETOR OF OR A MEMBER OF A PART-
 NERSHIP, WHICH IS A MUSIC PRODUCTION ENTITY ENGAGED IN  QUALIFIED  MUSIC
 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 MUSIC PRODUCTIONS.
   (3)  ELIGIBLE  PRODUCTION  COSTS  FOR  A  QUALIFIED  MUSIC  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 SUBDIVISION.
   (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-TWO OF SECTION TWO  HUNDRED  TEN-B
 AND  SUBSECTION  (HHH) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER IN ANY
 TAXABLE YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS.  THE AGGREGATE AMOUNT
 OF CREDITS FOR ANY TAXABLE YEAR SHALL BE DISTRIBUTED ON A REGIONAL BASIS
 AS FOLLOWS: FIFTY PERCENT OF THE AGGREGATE AMOUNT OF  CREDITS  SHALL  BE
 AVAILABLE  FOR  QUALIFIED  MUSIC  PRODUCTIONS  THAT INCUR AT LEAST SIXTY
 PERCENT OF ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC PRODUCTION IN
 REGION ONE; TWENTY PERCENT OF THE AGGREGATE AMOUNT OF CREDITS  SHALL  BE
 AVAILABLE  FOR  QUALIFIED  MUSIC  PRODUCTIONS  THAT INCUR AT LEAST SIXTY
 PERCENT OF ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC PRODUCTION IN
 REGION TWO; AND THIRTY PERCENT OF THE AGGREGATE AMOUNT OF CREDITS  SHALL
 BE  AVAILABLE  FOR QUALIFIED MUSIC PRODUCTIONS THAT INCUR AT LEAST SIXTY
 PERCENT OF ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC 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,  ROCKLAND,  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

 A. 3009--B                         92
 
 DEVELOPMENT CORPORATION AMONG TAXPAYERS IN ORDER OF PRIORITY BASED  UPON
 THE  DATE  OF  FILING  AN APPLICATION FOR ALLOCATION OF MUSIC PRODUCTION
 CREDITS 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) "MUSIC PRODUCTION" MEANS THE CREATION OF A SOUND RECORDING AND ANY
 RELATED MUSIC VIDEO, EITHER OF WHICH IS INTENDED FOR COMMERCIAL RELEASE.
 A "MUSIC PRODUCTION" DOES NOT  INCLUDE  RECORDINGS  THAT  ARE  PRIMARILY
 SPOKEN  WORD OR WILDLIFE OR NATURE SOUNDS, OR PRODUCED FOR INSTRUCTIONAL
 USE OR ADVERTISING OR PROMOTIONAL PURPOSES.
   (2) "QUALIFIED MUSIC PRODUCTION" IS A MUSIC PRODUCTION IN WHICH ELIGI-
 BLE PRODUCTION COSTS EQUAL TO OR ARE IN EXCESS OF  SEVEN  THOUSAND  FIVE
 HUNDRED  DOLLARS IF INCURRED AND PAID IN THIS STATE IN THE TWELVE MONTHS
 PRECEDING THE DATE ON WHICH THE CREDIT IS CLAIMED. PROVIDED, HOWEVER, IF
 SUCH PRODUCTION COSTS ARE INCURRED AND  PAID  OUTSIDE  THE  METROPOLITAN
 COMMUTER  TRANSPORTATION  DISTRICT  IN THIS STATE, SUCH PRODUCTION COSTS
 SHALL BE EQUAL TO OR IN EXCESS OF THREE  THOUSAND  SEVEN  HUNDRED  FIFTY
 DOLLARS  TO  BE  A  QUALIFIED  MUSIC PRODUCTION FOR THE PURPOSES OF THIS
 PARAGRAPH.
   (3) (A) "ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED  MUSIC  PRODUCTION"
 ARE  COSTS  INCURRED  AND  PAID  IN THIS STATE FOR TANGIBLE PROPERTY AND
 SERVICES USED IN THE PRODUCTION OF QUALIFIED MUSIC PRODUCTION, AS DETER-
 MINED BY THE DEPARTMENT OF  ECONOMIC  DEVELOPMENT,  INCLUDING,  BUT  NOT
 LIMITED  TO:   (I) STUDIO RENTAL FEES AND RELATED COSTS, (II) INSTRUMENT
 AND EQUIPMENT RENTAL FEES, (III) PRODUCTION SESSION FEES FOR  MUSICIANS,
 PROGRAMMERS,  ENGINEERS,  AND  TECHNICIANS AND (IV) MIXING AND MASTERING
 SERVICES.
   (B) ELIGIBLE PRODUCTION COSTS SHALL NOT INCLUDE: (I) COSTS FOR  TANGI-
 BLE  PROPERTY  OR SERVICES USED OR PERFORMED OUTSIDE OF THIS STATE, (II)
 PERFORMANCE FEES FOR FEATURED ARTISTS OR FEATURED GUEST ARTISTS  RECEIV-
 ING  ROYALTIES  OR  ADVANCES  ON  ROYALTIES  OR SPECIAL PERFORMANCE FEES
 (OTHER THAN THOSE THAT WOULD  NORMALLY  BE  COLLECTED  BY  A  PERFORMING
 RIGHTS ORGANIZATION) PURSUANT TO AN AGREEMENT DIRECTLY WITH THE PRODUCER
 OR  EMPLOYER,  (III)  SALARIES  OR RELATED COMPENSATION FOR PRODUCERS OR
 SONGWRITERS, (IV) COMPOSER, ARTIST OR  PRODUCER  RESIDUAL  ROYALTIES  OR
 ADVANCES,  (V)  LICENSING FEES FOR SAMPLES, (VI) INTERPOLATIONS OR OTHER
 MUSIC CLEARANCE COSTS, (VII) MASTERING OR  POST-PRODUCTION  EXPENDITURES
 FOR  PROJECTS  THAT  WERE  NOT  PRINCIPALLY TRACKED AND RECORDED IN THIS
 STATE, (VIII) ANY  COSTS  ASSOCIATED  WITH  MANUFACTURING,  DUPLICATION,
 PACKAGING,  DISTRIBUTION,  PROMOTION,  MARKETING  OR TOURING NOT SPECIF-
 ICALLY OUTLINED IN  THIS  SUBPARAGRAPH,  OR  (IX)  LOCAL  TRANSPORTATION
 EXPENDITURES  DIRECTLY RELATED TO MUSIC PRODUCTION AND PROVIDED AT OR TO
 THE SITE OF SUCH MUSIC PRODUCTION.  WITH RESPECT TO THE PRODUCTION OF  A
 MUSIC  VIDEO,  ELIGIBLE  PRODUCTION COSTS ARE THOSE DEFINED IN PARAGRAPH
 TWO OF SUBDIVISION (B) OF SECTION  TWENTY-FOUR  OF  THIS  ARTICLE.  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 APPLICATIONS 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-TWO.
   (2) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (I), PARA-
 GRAPH ONE, SUBPARAGRAPH (B), CLAUSE (XLIII).

 A. 3009--B                         93
 
   (3) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (HHH).
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 52 to read as follows:
   52. EMPIRE STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE OF  CREDIT.  A
 TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-THREE OF THIS CHAPTER
 SHALL  BE  ALLOWED  A  CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION
 FORTY-THREE 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, 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  (xliii)  to  read  as
 follows:

 (XLIII) EMPIRE STATE MUSIC              AMOUNT OF CREDIT
 PRODUCTION CREDIT UNDER                 UNDER SUBDIVISION
 SUBSECTION (HHH)                        FIFTY-TWO OF SECTION TWO HUNDRED
                                         TEN-B
 
   §  4. Section 606 of the tax law is amended by adding a new subsection
 (hhh) to read as follows:
   (HHH) EMPIRE STATE MUSIC PRODUCTION CREDIT. (1) ALLOWANCE OF CREDIT. A
 TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-THREE OF THIS CHAPTER
 SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS  PROVIDED  IN  SUCH  SECTION
 FORTY-THREE 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 tax law is amended by adding a new  section  44  to  read  as
 follows:
   §  44. 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.
   (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.

 A. 3009--B                         94
 
   (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-THREE OF SECTION TWO HUNDRED TEN-B
 AND SUBSECTION (III) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER  IN  ANY
 TAXABLE YEAR SHALL BE TWENTY-FIVE 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-
 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

 A. 3009--B                         95
 
 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-
 THREE.
   (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 (III).
   § 6. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 53 to read as follows:
   53. EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (A) ALLOWANCE
 OF  CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-FOUR OF
 THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE  COMPUTED  AS  PROVIDED  IN
 SUCH SECTION FORTY-FOUR 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, 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.

 A. 3009--B                         96
 
   § 7. 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 (III)        FIFTY-THREE OF SECTION
                                      TWO HUNDRED TEN-B
   §  8. Section 606 of the tax law is amended by adding a new subsection
 (iii) to read as follows:
   (III) EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (1)  ALLOW-
 ANCE  OF  CREDIT.  A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-
 FOUR OF THIS CHAPTER SHALL  BE  ALLOWED  A  CREDIT  TO  BE  COMPUTED  AS
 PROVIDED  IN  SUCH  SECTION  FORTY-FOUR  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.
   §  9. The state commissioner of economic development, after consulting
 with the state commissioner of taxation and  finance,  shall  promulgate
 regulations  by  December 31, 2017 to establish procedures for the allo-
 cation of tax credits as required by subdivision (a) of section  43  and
 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 evalu-
 ate the applications, the documentation that will be provided to taxpay-
 ers 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. Notwithstand-
 ing  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 December 31, 2017 deadline.
   § 10. Subdivision 11 of section 352 of the economic development law is
 REPEALED.
   § 11. Subdivisions 1, 3 and 5 of section 353 of the economic  develop-
 ment law, as amended by section 2 of part K of chapter 59 of the laws of
 2015, are amended to read as follows:
   1. To be a participant in the excelsior jobs program, a business enti-
 ty shall operate in New York state predominantly:
   (a)  as  a financial services data center or a financial services back
 office operation;
   (b) in manufacturing;
   (c) in software development and new media;
   (d) in scientific research and development;
   (e) in agriculture;
   (f) in the creation or expansion of  back  office  operations  in  the
 state;
   (g) in a distribution center;
   (h)  in  an  industry  with  significant  potential for private-sector
 economic growth and development in this  state  as  established  by  the
 commissioner  in  regulations  promulgated  pursuant to this article. In
 promulgating such regulations the commissioner  shall  include  job  and
 investment criteria; OR

 A. 3009--B                         97
 
   (i) as an entertainment company[; or
   (j) in music production].
   3.  For  the  purposes of this article, in order to participate in the
 excelsior jobs program, a business  entity  operating  predominantly  in
 manufacturing  must  create at least ten net new jobs; a business entity
 operating predominately in agriculture must create at least five net new
 jobs; a business entity operating predominantly as a  financial  service
 data  center  or  financial services customer back office operation must
 create at least fifty net new jobs; a business entity operating predomi-
 nantly in scientific research and development must create at least  five
 net  new  jobs;  a  business  entity operating predominantly in software
 development must create at least five net new jobs;  a  business  entity
 creating  or expanding back office operations must create at least fifty
 net new jobs;  [a  business  entity  operating  predominately  in  music
 production  must  create  at least five net new jobs;] a business entity
 operating predominantly as  an  entertainment  company  must  create  or
 obtain at least one hundred net new jobs; or a business entity operating
 predominantly as a distribution center in the state must create at least
 seventy-five  net  new  jobs,  notwithstanding  subdivision five of this
 section; or a business entity must be a regionally  significant  project
 as defined in this article; or
   5.  A  not-for-profit business entity, a business entity whose primary
 function is the provision of services including personal services, busi-
 ness services, or the provision of  utilities,  and  a  business  entity
 engaged  predominantly  in  the  retail or entertainment industry, other
 than a business operating as an entertainment company as defined in this
 article [and other than a business entity engaged in music  production],
 and  a company engaged in the generation or distribution of electricity,
 the distribution of natural gas, or the production of  steam  associated
 with  the  generation of electricity are not eligible to receive the tax
 credit described in this article.
   § 12. Subdivision 21 of section 352 of the economic  development  law,
 as  amended by section 1 of part K of chapter 59 of the laws of 2015, is
 amended to read as follows:
   21. "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.
   § 13. The economic development law is amended by adding a new  section
 243 to read as follows:
   § 243. REPORTS ON THE MUSIC AND DIGITAL GAMING INDUSTRIES 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
 CHAIRPERSONS 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
 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 SECTIONS
 FORTY-THREE AND FORTY-FOUR OF THE TAX LAW DURING THE HALF  YEAR,  BROKEN
 DOWN BY MONTH;
   (B)  THE  NUMBER OF MUSIC AND DIGITAL GAMING PROJECTS, WHICH HAVE BEEN
 ALLOCATED TAX CREDITS OF LESS THAN ONE MILLION DOLLARS PER PROJECT,  AND

 A. 3009--B                         98

 THE  TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED TO THOSE PROJECTS DISTRIB-
 UTED BY REGION PURSUANT TO SUBDIVISION (B) OF SECTIONS  FORTY-THREE  AND
 FORTY-FOUR OF THE TAX LAW;
   (C)  THE  NUMBER OF MUSIC AND 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 SECTIONS  FORTY-THREE  AND  FORTY-
 FOUR OF THE TAX LAW;
   (D)  A  LIST  OF EACH ELIGIBLE MUSIC AND DIGITAL GAMING PROJECT, WHICH
 HAS BEEN ALLOCATED A TAX CREDIT ENUMERATED BY REGION PURSUANT TO  SUBDI-
 VISION  (B)  OF  SECTIONS FORTY-THREE AND FORTY-FOUR OF THE TAX LAW, AND
 FOR EACH OF THOSE PROJECTS, (I) THE ESTIMATED NUMBER OF EMPLOYEES  ASSO-
 CIATED  WITH  THE  PROJECT,  (II) THE ESTIMATED QUALIFYING COSTS FOR THE
 PROJECTS, (III) THE ESTIMATED TOTAL COSTS OF THE PROJECT, (IV) THE CRED-
 IT 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-THREE  OR  FORTY-
 FOUR 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 MUSIC PRODUCTION  CREDIT  AND  THE  EMPIRE  STATE  DIGITAL  GAMING
 PRODUCTION CREDIT PROGRAMS INCLUDING THE EFFICIENCY OF OPERATIONS, RELI-
 ABILITY 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 SUBDIVI-
 SION (B) OF SECTIONS FORTY-THREE AND FORTY-FOUR OF THE TAX LAW; AND  (C)
 ANY  OTHER  INFORMATION OR STATISTICAL INFORMATION THAT THE COMMISSIONER
 OF ECONOMIC DEVELOPMENT DEEMS TO BE USEFUL IN ANALYZING THE  EFFECTS  OF
 THE PROGRAMS.
   §  14. This act shall take effect immediately and shall apply to taxa-
 ble years beginning on January 1,  2018  and  before  January  1,  2023;
 provided that sections one through eight of this act shall expire and be
 deemed repealed December 31, 2022.

 A. 3009--B                         99
 
                                 PART BBB
 
   Section  1.  Paragraph (a) of subdivision 6 of section 425 of the real
 property tax law, as amended by section 1 of part A of chapter 60 of the
 laws of 2016, is amended to read as follows:
   (a) Generally. All owners of the property who primarily reside thereon
 [and who are not subject to the provisions  of  subdivision  sixteen  of
 this  section]  must  jointly file an application for exemption with the
 assessor on or before the appropriate taxable status date. Such applica-
 tion may be filed by mail if it is enclosed in a postpaid envelope prop-
 erly addressed to the appropriate assessor, deposited in a  post  office
 or  official  depository  under  the exclusive care of the United States
 postal service, and postmarked by the United States postal service on or
 before the applicable taxable status date. Each such  application  shall
 be  made  on  a form prescribed by the commissioner, which shall require
 the applicant or applicants to agree to notify  the  assessor  if  their
 primary   residence  changes  while  their  property  is  receiving  the
 exemption. The assessor may request that proof of residency be submitted
 with the application. If the  applicant  requests  a  receipt  from  the
 assessor  as  proof of submission of the application, the assessor shall
 provide such receipt. If such request is made  by  other  than  personal
 request,  the applicant shall provide the assessor with a self-addressed
 postpaid envelope in which to mail the receipt.
   § 2. Subdivision 16 of section 425 of the real  property  tax  law  is
 REPEALED.
   §  3.  Subdivision  2  of section 496 of the real property tax law, as
 amended by section 3 of part A of chapter 60 of the  laws  of  2016,  is
 amended to read as follows:
   2.  An  application  to  renounce an exemption shall be made on a form
 prescribed by the commissioner and shall be filed with the county direc-
 tor of real property tax services no later than ten years after the levy
 of taxes upon the assessment  roll  on  which  the  renounced  exemption
 appears.  The  county  director,  after  consulting with the assessor as
 appropriate, shall compute the total  amount  owed  on  account  of  the
 renounced exemption as follows:
   (a) For each assessment roll on which the renounced exemption appears,
 the assessed value that was exempted shall be multiplied by the tax rate
 or  rates that were applied to that assessment roll. Interest shall then
 be added to each such product at the rate  prescribed  by  section  nine
 hundred twenty-four-a of this chapter or such other law as may be appli-
 cable  for  each  month  or portion thereon since the levy of taxes upon
 such assessment roll.
   (b) The sum of the calculations made pursuant to paragraph (a) of this
 subdivision with respect to all of  the  assessment  rolls  in  question
 shall be determined.
   (c) A processing fee of five hundred dollars shall be added to the sum
 determined  pursuant  to  paragraph (b) of this subdivision[, unless the
 provisions of paragraph (d) of this subdivision are applicable.
   (d) If the applicant is renouncing a STAR exemption in order to quali-
 fy for the personal income tax credit authorized by subsection (eee)  of
 section  six  hundred  six  of  the tax law, and no other exemptions are
 being renounced on the same application,  no  processing  fee  shall  be
 applicable].
   §  4.  Subdivision 6 of section 1306-a of the real property tax law is
 REPEALED.

 A. 3009--B                         100
 
   § 5. Subparagraph (A) of paragraph 3 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:
   (A)  [Beginning  with] FOR THE taxable [years after] YEAR two thousand
 [fifteen] SIXTEEN, a basic STAR credit shall be available to a qualified
 taxpayer if the affiliated income of  the  parcel  that  serves  as  the
 taxpayer's primary residence is less than or equal to five hundred thou-
 sand dollars.
   §  6.  The  opening  paragraph  of  subparagraph (A) of paragraph 4 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:
   [Beginning with] FOR THE  taxable  [years  after]  YEAR  two  thousand
 [fifteen] SIXTEEN, an enhanced STAR credit shall be available to a qual-
 ified taxpayer where both of the following conditions are satisfied:
   §  7.  Clause  (iii) of subparagraph (A) of paragraph 10 of subsection
 (eee) of section 606 of the tax law is REPEALED.
   § 8. Paragraph (c) of subdivision 11 of section 425 of the real  prop-
 erty  tax  law,  as  amended by section 3 of part A of chapter 73 of the
 laws of 2016, is amended to read as follows:
   (c) Transfers of title. When the assessor has received a report pursu-
 ant to section five hundred seventy-four of this chapter of  a  transfer
 of  title to real property which is exempt pursuant to this section, the
 assessor shall [discontinue the exemption  as  required  by  subdivision
 sixteen  of  this section] SEND THE NEW OWNER OR OWNERS AS SHOWN THEREON
 AN APPLICATION FOR THE EXEMPTION AUTHORIZED BY THIS SECTION. The  asses-
 sor shall not implement the provisions of section five hundred twenty of
 this chapter upon such a transfer, except to the extent that the proper-
 ty may also be receiving one or more other exemptions.
   § 9. Paragraph (c) of subdivision 6 of section 425 of the real proper-
 ty  tax law, as amended by section 4 of part A of chapter 73 of the laws
 of 2016, is amended to read as follows:
   (c) Senior citizens exemption.  When  property  is  eligible  for  the
 senior citizens exemption authorized by section four hundred sixty-seven
 of this article, it shall also be deemed to be eligible for the enhanced
 exemption  authorized  by  this  section  for  certain  senior citizens,
 provided, where applicable, that the age requirement  established  by  a
 municipal  corporation  pursuant  to  subdivision  five  of section four
 hundred sixty-seven of this article is satisfied, and no separate appli-
 cation need be filed therefor. [Provided, however, that  the  provisions
 of  this paragraph shall only apply where at least one of the applicants
 held title to the property on the taxable status date of the  assessment
 roll  that  was  used to levy school district taxes for the two thousand
 fifteen--two thousand sixteen school year and the property  was  granted
 an exemption pursuant to this section on such assessment roll.]
   § 10. Implementation for the 2017--2018 school year.  The commissioner
 of  taxation and finance shall assist localities in notifying the public
 of the provisions of this act and any action required  by  taxpayers  to
 receive  a STAR exemption for the 2017--2018 school year.  Notwithstand-
 ing subdivision 6 of section 425 of  the  real  property  tax  law,  for
 assessment  rolls  used to levy school district taxes for the 2017--2018
 school year, an application for an exemption under section  425  of  the
 real property tax law shall be filed with the local assessor by the last
 date on which a petition with respect to complaints of assessment may be
 filed  or  not  later  than the sixtieth day after the effective date of
 this act, whichever is later.  The assessor shall approve or  deny  such

 A. 3009--B                         101
 
 application  as  if  it  had  been filed on or before the taxable status
 date.  If the assessor determines that the property is eligible for  the
 exemption,  the  assessor  shall thereupon be authorized and directed to
 correct  the  assessment  roll  accordingly,  or,  if another person has
 custody or control of the assessment roll, to direct that person to make
 the appropriate corrections. If the correction is not made before school
 taxes are levied, the failure to take the exemption into account in  the
 computation  of  the tax shall be deemed a "clerical error" for purposes
 of title 3 of article 5 of the real property tax law, or any  comparable
 laws  governing  the  correction  of administrative errors on assessment
 rolls and tax rolls, and shall be corrected accordingly.
   Notwithstanding any other  provision  of  law  to  the  contrary,  the
 commissioner  of  taxation  and  finance  shall immediately notify local
 assessors of the name and address of any taxpayer within their assessing
 unit who qualified for the school tax relief (STAR) credit  pursuant  to
 subsection (eee) of section 606 of the tax law for taxable year 2016, or
 has applied for a credit for taxable year 2017 and any additional infor-
 mation  available that would assist the assessor in accurately determin-
 ing the property's  eligibility  for  the  STAR  exemption  pursuant  to
 section  425  of  the real property tax law. To the extent possible, the
 local assessor shall determine the eligibility of the property  for  the
 2017--2018 school year using information provided by the commissioner of
 taxation  and  finance.    Taxpayers  who applied with the department of
 taxation and finance for the STAR credit for the 2017--2018 school  year
 or received the STAR credit for the 2016--2017 school year, shall not be
 required  to file an application for an exemption in order to receive an
 exemption on the same property for the 2017--2018 school year;  however,
 if  a  property's  eligibility cannot be determined by using information
 supplied by the department of taxation and  finance,  the  assessor  may
 seek  additional  documentation  from  the  taxpayer to prove his or her
 eligibility. Such taxpayer shall have until the last  date  on  which  a
 petition,  with  respect  to  complaints  of assessment may be filed, to
 supply proof of eligibility, or thirty days of such  request,  whichever
 is  later. The assessor shall mail notice of his or her determination to
 such owner. If the assessor determines that the property is eligible for
 the exemption, the assessor shall thereupon be authorized  and  directed
 to  correct  the  assessment roll accordingly, or, if another person has
 custody or control of the assessment roll, to direct that person to make
 the appropriate corrections. If the correction is not made before school
 taxes are levied, the failure to take the exemption into account in  the
 computation  of  the tax shall be deemed a "clerical error" for purposes
 of title 3 of article 5 of the real property tax law, or any  comparable
 laws  governing  the  correction  of administrative errors on assessment
 rolls and tax rolls, and shall be corrected accordingly. Nothing  within
 this act shall preclude a taxpayer from seeking administrative and judi-
 cial review of an assessor's denial of the exemption.
   § 11. This act shall take effect immediately.
 
                                 PART CCC
 
   Section  1.    Section  654-b  of  the  private housing finance law is
 amended by adding a new subdivision 9 to read as follows:
   9. THE SUBSIDIARY CORPORATION SHALL USE THE TAXES DESCRIBED IN  SUBDI-
 VISION  G  OF  SECTION 11-2102 OF THE ADMINISTRATIVE CODE OF THE CITY OF
 NEW YORK EXCLUSIVELY FOR THE PROVISION OF THE ELDERLY RENTAL  ASSISTANCE
 PROGRAM AS DESCRIBED IN ARTICLE SIXTEEN-B OF THIS CHAPTER.

 A. 3009--B                         102
 
   §  2. The private housing finance law is amended by adding a new arti-
 cle 16-B to read as follows:
                               ARTICLE 16-B
                      ELDER RENTAL ASSISTANCE PROGRAM
 SECTION 930. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE.
         931. DEFINITIONS.
         932. ELDER RENTAL ASSISTANCE PROGRAM.
         933. GENERAL AND ADMINISTRATIVE PROVISIONS.
   § 930. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE.  THE LEGISLATURE
 HEREBY FINDS THAT THE CITY OF NEW YORK IS EXPERIENCING AN EXTREME SHORT-
 AGE  OF  AFFORDABLE  HOUSING THAT SERVES LOW INCOME SENIOR CITIZENS. FOR
 HUNDREDS OF THOUSANDS OF SENIOR CITIZENS LIVING ON PENSIONS,  RETIREMENT
 SAVINGS  AND OTHER FIXED INCOMES, THE RAPID RISE IN RENTS HAS THREATENED
 THEIR ABILITY TO STAY IN THEIR HOMES AND NEIGHBORHOODS. MORE  THAN  HALF
 OF  SENIORS SPEND MORE ON HOUSING THAN THEY CAN AFFORD AND MORE THAN ONE
 HUNDRED THOUSAND SENIORS HAVE WAITED FOR  SEVEN  YEARS  OR  MORE  ON  AN
 AFFORDABLE HOUSING WAITLIST.
   THE  LEGISLATURE FURTHER FINDS THAT CITYWIDE, ALMOST TWO-THIRDS OF ALL
 SENIOR RENTER HOUSEHOLDS ARE AMONG THE LOWEST INCOME HOUSEHOLDS  IN  THE
 CITY, EARNING LESS THAN FIFTY PERCENT OF AREA MEDIAN INCOME.  ACCORDING-
 LY,  THE  LEGISLATURE FINDS THAT LEGISLATION SHOULD BE ENACTED TO CREATE
 THE ELDER RENTAL ASSISTANCE PROGRAM, WHICH WILL PROVIDE  MONTHLY  FINAN-
 CIAL  ASSISTANCE TO RENT-BURDENED SENIORS SO THEY CAN LIVE IN DIGNITY IN
 THEIR OWN HOMES. THIS PROGRAM WILL BE FINANCED THROUGH A MARGINAL TAX ON
 REAL ESTATE TRANSACTIONS OVER TWO MILLION DOLLARS.
   § 931. DEFINITIONS. AS USED IN THIS ARTICLE:
   1. "ELDERLY FAMILY" SHALL MEAN A FAMILY, AS  DEFINED  IN  24  C.F.R  §
 5.403,  WHOSE  HEAD  (INCLUDING  CO-HEAD),  SPOUSE,  OR SOLE MEMBER IS A
 PERSON WHO IS AT LEAST SIXTY-TWO YEARS OF AGE. IT  MAY  INCLUDE  TWO  OR
 MORE PERSONS WHO ARE AT LEAST SIXTY-TWO YEARS OF AGE LIVING TOGETHER, OR
 ONE  OR MORE PERSONS WHO ARE AT LEAST SIXTY-TWO YEARS OF AGE LIVING WITH
 ONE OR MORE LIVE-IN AIDES, AS DEFINED IN 24 C.F.R  §  5.403,  AND  SHALL
 INCORPORATE ANY AMENDMENTS MADE TO THIS DEFINITION IN 24 C.F.R § 5.403.
   2.  "LOW  INCOME  FAMILIES" SHALL MEAN THOSE FAMILIES WHOSE INCOMES DO
 NOT EXCEED EIGHTY PER CENTUM OF THE  MEDIAN  INCOME  FOR  THE  NEW  YORK
 METROPOLITAN  STATISTICAL  AREA,  AS  DETERMINED BY THE SECRETARY OF THE
 FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WITH ADJUSTMENTS FOR
 SMALLER AND LARGER FAMILIES.
   § 932. ELDER RENTAL ASSISTANCE PROGRAM. 1. SUBJECT TO THE AVAILABILITY
 OF FUNDS GENERATED BY THE TAXES DESCRIBED IN SUBDIVISION  G  OF  SECTION
 11-2102  OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, THE HOUSING
 ASSISTANCE CORPORATION, ESTABLISHED BY SECTION SIX HUNDRED  FIFTY-FOUR-B
 OF  THIS  CHAPTER,  SHALL  PROVIDE  RENTAL ASSISTANCE TO OR ON BEHALF OF
 LOW-INCOME FAMILIES WHOSE MEMBERS CONSTITUTE AN ELDERLY FAMILY, WHO  ARE
 RESIDENTS  OF THE CITY OF NEW YORK, AND WHO PAY MORE THAN THIRTY PERCENT
 OF THEIR MONTHLY ADJUSTED INCOME AS RENT AS CALCULATED  PURSUANT  TO  42
 U.S.C  §  1437A(A)(1)(A). THE AMOUNT OF RENTAL ASSISTANCE PROVIDED TO OR
 ON BEHALF OF EACH SUCH FAMILY PURSUANT TO THIS SUBDIVISION SHALL  BE  AN
 AMOUNT  UP  TO  THE  DIFFERENCE  BETWEEN  (I)  A RENT ESTABLISHED BY THE
 DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT ON  AN  ANNUAL  BASIS
 NOT  TO  EXCEED  THE  MAXIMUM  MONTHLY  RENT  PRESCRIBED  IN  42  U.S.C.
 §1437F(C)(1), OR SUCH LOWER RENT AS MAY BE REQUIRED BY  APPLICABLE  LAW,
 OR  AS  ORDERED  PURSUANT  TO SECTION FOUR HUNDRED SIXTY-SEVEN-B OR FOUR
 HUNDRED SIXTY-SEVEN-C OF THE REAL PROPERTY TAX LAW,  IF  APPLICABLE  AND
 (II)  THIRTY  PERCENT  OF  EACH SUCH FAMILY'S MONTHLY ADJUSTED INCOME AS
 CALCULATED PURSUANT TO 42 U.S.C. §1437A(A)(1)(A).

 A. 3009--B                         103
 
   2. TO THE EXTENT A PERSON OR ENTITY RECEIVES ANY SUCH  RENTAL  ASSIST-
 ANCE  ON  BEHALF  OF  A PARTICULAR ELDERLY FAMILY, SUCH PERSON OR ENTITY
 SHALL CREDIT SUCH ASSISTANCE AGAINST THE RENT OF SUCH FAMILY ON A MONTH-
 LY BASIS.
   3.  THE RENTAL ASSISTANCE PROVIDED PURSUANT TO SUBDIVISION ONE OF THIS
 SECTION SHALL CONTINUE UPON THE DEATH OR PERMANENT DEPARTURE OF A MEMBER
 OF AN ELDERLY FAMILY WHO WAS AT LEAST SIXTY-TWO YEARS OF AGE,  INCLUDING
 THE  HEAD  OF  SUCH  FAMILY  (INCLUDING  CO-HEAD)  OR HIS OR HER SPOUSE,
 PROVIDED THAT SUCH ELDERLY FAMILY IS OTHERWISE ELIGIBLE FOR SUCH  RENTAL
 ASSISTANCE AND A MEMBER OF SUCH ELDERLY FAMILY WHO IS AT LEAST SIXTY-TWO
 YEARS  OF  AGE  HAS  RESIDED  IN THE DWELLING UNIT RECEIVING SUCH RENTAL
 ASSISTANCE FOR AT LEAST ONE HUNDRED EIGHTY  DAYS  IMMEDIATELY  PRECEDING
 SUCH DEATH OR PERMANENT DEPARTURE.
   4. THE RENTAL ASSISTANCE AUTHORIZED BY SUBDIVISION ONE OF THIS SECTION
 MAY  BE PROVIDED EITHER AS TENANT-BASED OR AS BUILDING-BASED ASSISTANCE.
 SUCH ASSISTANCE MAY BE USED IN CONJUNCTION WITH ANY GOVERNMENTAL PROGRAM
 OR PROJECT TO DEVELOP OR PRESERVE HOUSING.
   5. A PERSON WHO HAS OBTAINED A RENT INCREASE EXEMPTION  ORDER  GRANTED
 PURSUANT  TO  SECTION  FOUR HUNDRED SIXTY-SEVEN-B OR FOUR HUNDRED SIXTY-
 SEVEN-C OF THE REAL PROPERTY TAX LAW MAY ALSO  BE  ELIGIBLE  TO  RECEIVE
 RENTAL  ASSISTANCE  PURSUANT  TO SUBDIVISION ONE OF THIS SECTION IF SUCH
 PERSON IS A MEMBER OF AN ELDERLY FAMILY THAT IS OTHERWISE  ELIGIBLE  FOR
 SUCH ASSISTANCE.
   §  933. GENERAL AND ADMINISTRATIVE PROVISIONS.  1. THE HOUSING ASSIST-
 ANCE CORPORATION AND THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOP-
 MENT SHALL HAVE THE AUTHORITY TO INCUR  REASONABLE  COSTS  FOR  ADMINIS-
 TRATION  OF THE PROGRAM AUTHORIZED BY SECTION NINE HUNDRED THIRTY-TWO OF
 THIS ARTICLE PROVIDED THAT NO  MORE  THAN  FIVE  PERCENT  OF  THE  TAXES
 COLLECTED  PURSUANT  TO SUBDIVISION G OF SECTION 11-2102 OF THE ADMINIS-
 TRATIVE CODE OF THE CITY OF NEW YORK SHALL BE USED FOR SUCH COSTS.
   2. THE HOUSING ASSISTANCE CORPORATION AND THE  DEPARTMENT  OF  HOUSING
 PRESERVATION AND DEVELOPMENT SHALL HAVE THE AUTHORITY TO PROMULGATE SUCH
 RULES  AS  ARE  NECESSARY  TO  CARRY  OUT THE PROVISIONS OF SECTION NINE
 HUNDRED THIRTY-TWO OF THIS ARTICLE.
   § 3. Section 11-2102 of the administrative code of  the  city  of  New
 York  is  amended by adding three new subdivisions g, h and i to read as
 follows:
   G. IN ADDITION TO THE TAXES IMPOSED BY SUBDIVISIONS A AND  B  OF  THIS
 SECTION,  THERE IS HEREBY IMPOSED A TAX ON EACH DEED OR OTHER INSTRUMENT
 OR TRANSACTION CONVEYING OR TRANSFERRING RESIDENTIAL REAL PROPERTY OR AN
 ECONOMIC INTEREST THEREIN, AT THE TIME OF DELIVERY BY  A  GRANTOR  TO  A
 GRANTEE,  WHEN  THE  CONSIDERATION FOR SUCH PROPERTY AND ANY IMPROVEMENT
 THEREON (WHETHER OR NOT IT IS INCLUDED IN THE SAME DEED) IS GREATER THAN
 TWO MILLION DOLLARS, OR AT THE TIME OF THE  TRANSFER  OF  SUCH  ECONOMIC
 INTEREST  BY  A  GRANTOR  TO A GRANTEE, WHERE THE CONSIDERATION FOR SUCH
 ECONOMIC INTEREST IS GREATER THAN TWO MILLION DOLLARS. EXCEPT AS  OTHER-
 WISE PROVIDED IN THIS SECTION, ALL THE PROVISIONS OF THIS CHAPTER RELAT-
 ING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION AND DETERMINATION
 OF  THE  TAX IMPOSED BY SUBDIVISIONS A AND B OF THIS SECTION SHALL APPLY
 TO THE TAX IMPOSED BY THIS SUBDIVISION WITH SUCH MODIFICATIONS AS MAY BE
 NECESSARY TO ADAPT SUCH LANGUAGE TO THE TAX SO IMPOSED. FOR PURPOSES  OF
 THIS  SECTION,  "RESIDENTIAL  REAL  PROPERTY" SHALL INCLUDE ANY PREMISES
 THAT ARE OR MAY BE USED IN WHOLE OR IN PART AS A PERSONAL RESIDENCE, AND
 SHALL INCLUDE A ONE, TWO OR THREE-FAMILY HOUSE, AN  INDIVIDUAL  RESIDEN-
 TIAL  CONDOMINIUM  UNIT, OR AN INDIVIDUAL RESIDENTIAL COOPERATIVE APART-

 A. 3009--B                         104
 
 MENT. SUCH TAX SHALL BE AT THE RATE OF TWO AND ONE-HALF PERCENT  OF  THE
 CONSIDERATION IN EXCESS OF TWO MILLION DOLLARS.
   H.  FOR  PURPOSES  OF  THIS  SECTION,  THE  DETERMINATION OF WHETHER A
 CONVEYANCE OR TRANSFER SHALL BE SUBJECT TO THE TAXES IMPOSED BY SUBDIVI-
 SIONS A, B AND G OF THIS SECTION, AND OF THE RATE OF SUCH  TAXES,  SHALL
 BE  MADE  PRIOR  TO THE APPLICATION OF SUBDIVISION F OF THIS SECTION AND
 PARAGRAPH EIGHT OF SUBDIVISION B OF SECTION  11-2106  OF  THIS  CHAPTER,
 PROVIDED,  HOWEVER,  THAT  THE  AMOUNT  OF CONSIDERATION SUBJECT TO SUCH
 TAXES SHALL BE DETERMINED AFTER THE APPLICATION OF SUBDIVISION F OF THIS
 SECTION AND PARAGRAPH EIGHT OF SUBDIVISION B OF SECTION 11-2106 OF  THIS
 CHAPTER.
   I.  ANY  TAX COLLECTED PURSUANT TO SUBDIVISION G OF THIS SECTION SHALL
 BE USED EXCLUSIVELY FOR THE PROVISION OF RENTAL ASSISTANCE TO LOW-INCOME
 FAMILIES WHOSE MEMBERS CONSTITUTE AN ELDERLY  FAMILY,  AS  DESCRIBED  IN
 SUBDIVISION  NINE  OF  SECTION  SIX  HUNDRED FIFTY-FOUR-B OF THE PRIVATE
 HOUSING FINANCE LAW. FOR PURPOSES OF THIS SUBDIVISION, "LOW-INCOME FAMI-
 LIES" AND "ELDERLY FAMILY" SHALL HAVE THE SAME MEANING  AS  PROVIDED  IN
 SECTION NINE HUNDRED THIRTY-ONE OF THE PRIVATE HOUSING FINANCE LAW.
   §  4.    Section 11-2104 of the administrative code of the city of New
 York, as added by local law number 71 of the city of New  York  for  the
 year  1986,  subdivision 4 as amended by local law number 59 of the city
 of New York for the year 1989, subdivisions  5  and  6  as  amended  and
 subdivision 7 as added by chapter 170 of the laws of 1994, is amended to
 read as follows:
   §  11-2104 Payment.   The tax imposed [hereunder] PURSUANT TO SUBDIVI-
 SIONS A AND B OF SECTION 11-2102 OF THIS CHAPTER shall be  paid  by  the
 grantor  to the commissioner of finance at the office of the register in
 the county where the deed is or would be  recorded  within  thirty  days
 after  the delivery of the deed by the grantor to the grantee but before
 the recording of such deed, or, in the case of a tax on the transfer  of
 an economic interest in real property, at such place as the commissioner
 of  finance  shall designate, within thirty days after the transfer. The
 grantee shall also be liable for the payment of such tax  in  the  event
 that  the amount of tax due is not paid by the grantor or the grantor is
 exempt from tax. THE TAX IMPOSED PURSUANT TO SUBDIVISION  G  OF  SECTION
 11-2102 OF THIS CHAPTER SHALL BE PAID BY THE GRANTEE TO THE COMMISSIONER
 OF FINANCE AT THE OFFICE OF THE REGISTER IN THE COUNTY WHERE THE DEED IS
 OR  WOULD  BE RECORDED WITHIN THIRTY DAYS AFTER THE DELIVERY OF THE DEED
 BY THE GRANTOR TO THE GRANTEE BUT BEFORE THE RECORDING OF SUCH DEED, OR,
 IN THE CASE OF A TAX ON THE TRANSFER OF AN  ECONOMIC  INTEREST  IN  REAL
 PROPERTY,  AT SUCH PLACE AS THE COMMISSIONER OF FINANCE SHALL DESIGNATE,
 WITHIN THIRTY DAYS AFTER THE TRANSFER. THE GRANTOR SHALL ALSO BE  LIABLE
 FOR  THE PAYMENT OF THE TAX IMPOSED PURSUANT TO SUBDIVISION G OF SECTION
 11-2102 OF THIS CHAPTER IN THE EVENT THAT THE AMOUNT OF TAX DUE  IS  NOT
 PAID  BY  THE  GRANTEE OR THE GRANTEE IS EXEMPT FROM PAYMENT OF THE TAX.
 All moneys received as such payments by the register during the  preced-
 ing  month  shall  be  transmitted to the commissioner of finance on the
 first day of each month or on such other day as is mutually agreeable to
 the commissioner of finance and the register.
   A. From the moneys so received by him or her PURSUANT TO  SUBDIVISIONS
 A  AND B OF SECTION 11-2102 OF THIS CHAPTER, the commissioner of finance
 shall set said in a special account:
   (1) the total amount of taxes imposed pursuant to  the  provisions  of
 paragraph  three  of  subdivision  a  of section 11-2102 of this chapter
 including any interest or penalties thereon;

 A. 3009--B                         105
 
   (2) fifty percent of the total amount of taxes imposed pursuant to the
 provisions of paragraph four of subdivision a of section 11-2102 of this
 chapter, including fifty percent of any interest or  penalties  thereon,
 provided,  however, that where such tax is measured by the consideration
 for  a  conveyance  without  deduction for the amount of any mortgage or
 other lien or encumbrance on the real property or interest therein which
 existed before the delivery of the deed and remains  thereon  after  the
 delivery  of  the  deed, the entire amount of tax imposed at the rate of
 one percent on the portion  of  the  consideration  ascribable  to  such
 nondeductible  mortgage, lien or other encumbrance, including any inter-
 est or penalties thereon, and fifty percent of the tax on the balance of
 the consideration, including fifty percent of any interest or  penalties
 thereon, shall be set aside in such special account;
   (3) fifty percent of the total amount of taxes imposed pursuant to the
 provisions  of subparagraph (iii) of paragraph seven of subdivision a of
 section 11-2102 of this chapter, including fifty percent of any interest
 or penalties thereon;
   (4) fifty percent of the total amount of taxes imposed pursuant to the
 provisions of paragraph eight of subdivision a  of  section  11-2102  of
 this chapter, including fifty percent of any interest or penalties ther-
 eon;
   (5)  fifty percent of the total amount of taxes imposed at the rate of
 two percent pursuant to the provisions of clause (ii) of subparagraph  A
 of  paragraph  one  of  subdivision b of section 11-2102 of this chapter
 including fifty percent of any interest or penalties thereon;
   (6) with respect to any conveyance of real property,  transfer  of  an
 economic  interest  therein,  or any grant, assignment or surrender of a
 leasehold interest in real property, made  on  or  after  August  first,
 nineteen  hundred  eighty-nine  and  taxable under this chapter, in each
 instance where the tax rate is in excess of two percent,  a  portion  of
 the  tax  received  equal to one percent of the consideration subject to
 the tax plus any interest or penalty attributable to such portion of the
 tax; and
   (7) notwithstanding anything in [subdivision] PARAGRAPH  six  OF  THIS
 SUBDIVISION to the contrary, in each instance where the tax rate imposed
 pursuant  to  subdivision  e  of  section  11-2102 of this chapter is in
 excess of one percent, a portion of the tax received equal  to  one-half
 of  one  percent  of  the  total  consideration for the real property or
 economic interest therein conveyed or transferred, plus any interest  or
 penalty attributable to such portion of the tax.
   Moneys  in such account shall be used for payment by such commissioner
 to the state comptroller for deposit in the urban mass transit operating
 assistance account of the mass transportation operating assistance  fund
 of any amount of insufficiency certified by the state comptroller pursu-
 ant  to  the  provisions  of  subdivision six of section [eight-eight-a]
 EIGHTY-EIGHT-A of the state finance law, and, on the  fifteenth  day  of
 each month, the commissioner of finance shall transmit all funds in such
 account  on  the  last  day  of  the  preceding month, except the amount
 required for the payment of any amount of insufficiency certified by the
 state comptroller and such amount as  he  or  she  deems  necessary  for
 refunds  and  such  other amounts necessary to finance the New York City
 transportation disabled committee and  the  New  York  City  paratransit
 system  as  established  by section fifteen-b of the transportation law,
 provided, however, that such amounts shall not exceed six percent of the
 total funds in the account but in no event  be  less  than  one  hundred
 seventy-five  thousand  dollars  beginning April first, nineteen hundred

 A. 3009--B                         106
 
 eighty-six, and further  that  beginning  November  fifteenth,  nineteen
 hundred  eighty-four  and during the entire period prior to operation of
 such system, the total of such amounts shall not  exceed  three  hundred
 seventy-five  thousand  dollars  for the administrative expenses of such
 committee and fifty thousand dollars for  the  expenses  of  the  agency
 designated  pursuant to paragraph b of subdivision five of such section,
 and other amounts necessary  to  finance  the  operating  needs  of  the
 private bus companies franchised by the city of New York and eligible to
 receive  state  operating  assistance  under  section  eighteen-b of the
 transportation law, provided,  however,  that  such  amounts  shall  not
 exceed  four  percent of the total funds in the account, to the New York
 city transit authority for mass transit within the city.
   B. THE MONEYS RECEIVED BY THE  COMMISSIONER  OF  FINANCE  PURSUANT  TO
 SUBDIVISION  G  OF SECTION 11-2102 OF THIS CHAPTER SHALL BE HELD FOR THE
 BENEFIT OF THE HOUSING  ASSISTANCE  CORPORATION  FOR  THE  PROVISION  OF
 RENTAL  ASSISTANCE  TO  LOW-INCOME  FAMILIES WHOSE MEMBERS CONSTITUTE AN
 ELDERLY FAMILY IN ACCORDANCE WITH SUBDIVISION I  OF  SUCH  SECTION,  AND
 PAID  TO  THE HOUSING ASSISTANCE CORPORATION, IN THE SAME FISCAL YEAR OR
 AS SOON AS PRACTICABLE THEREAFTER, FOR THE PURPOSES  DESCRIBED  IN  SUCH
 SUBDIVISION  I.  SUCH  MONEYS  SHALL  BE USED TO SUPPLEMENT, RATHER THAN
 SUPPLANT, LOCAL FUNDS  THAT  SUCH  CITY  WOULD  HAVE  EXPENDED  FOR  THE
 PROVISION  OF  RENTAL  ASSISTANCE  TO  LOW-INCOME FAMILIES WHOSE MEMBERS
 CONSTITUTE AN ELDERLY FAMILY. FOR PURPOSES OF THIS SUBDIVISION, "LOW-IN-
 COME FAMILIES" AND "ELDERLY FAMILY"  SHALL  HAVE  THE  SAME  MEANING  AS
 PROVIDED  IN  SECTION  NINE  HUNDRED  THIRTY-ONE  OF THE PRIVATE HOUSING
 FINANCE LAW.
   § 5. This act shall take effect on the ninetieth day  after  it  shall
 have become a law.
 
                                 PART DDD
 
   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (n-2) to read as follows:
   (N-2) CREDIT FOR  FARM  DONATIONS  TO  FOOD  BANK  OR  EMERGENCY  FOOD
 PROGRAM. (1) GENERAL. IN THE CASE OF A TAXPAYER WHO IS AN ELIGIBLE FARM-
 ER,  THERE  SHALL  BE  ALLOWED  A  CREDIT, TO BE COMPUTED AS HEREINAFTER
 PROVIDED AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR  TAXABLE  YEARS  ON
 AND AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN. THE AMOUNT OF THE CREDIT
 SHALL  BE  TWENTY-FIVE  PERCENT  OF THE WHOLESALE COST OF THE TAXPAYER'S
 QUALIFIED DONATIONS, AS DEFINED IN PARAGRAPH THREE OF  THIS  SUBSECTION,
 MADE  TO  ANY  FOOD  BANK  OR OTHER PUBLIC, CHARITABLE OR NOT-FOR-PROFIT
 EMERGENCY FOOD PROGRAM OPERATING WITHIN THIS STATE, UP TO FIVE  THOUSAND
 DOLLARS PER YEAR.
   (2) ELIGIBLE FARMER. FOR PURPOSES OF THIS SUBSECTION, THE TERM "ELIGI-
 BLE FARMER" MEANS A NEW YORK STATE RESIDENT TAXPAYER WHOSE FEDERAL GROSS
 INCOME  FROM  FARMING  FOR  THE  TAXABLE  YEAR IS AT LEAST TWO-THIRDS OF
 EXCESS FEDERAL GROSS INCOME.  EXCESS  FEDERAL  GROSS  INCOME  MEANS  THE
 AMOUNT  OF  FEDERAL  GROSS  INCOME FROM ALL SOURCES FOR THE TAXABLE YEAR
 REDUCED BY THE SUM (NOT TO EXCEED  THIRTY  THOUSAND  DOLLARS)  OF  THOSE
 ITEMS  INCLUDED  IN  FEDERAL  GROSS  INCOME  WHICH CONSIST OF (I) EARNED
 INCOME, (II) PENSION PAYMENTS, INCLUDING SOCIAL SECURITY PAYMENTS, (III)
 INTEREST, AND (IV) DIVIDENDS. FOR PURPOSES OF THIS PARAGRAPH,  THE  TERM
 "EARNED  INCOME"  SHALL  MEAN  WAGES,  SALARIES, TIPS AND OTHER EMPLOYEE
 COMPENSATION, AND THOSE ITEMS OF GROSS INCOME WHICH  ARE  INCLUDIBLE  IN
 THE  COMPUTATION  OF NET EARNINGS FROM SELF-EMPLOYMENT. FOR THE PURPOSES
 OF  THIS  PARAGRAPH,  PAYMENTS  FROM  THE  STATE'S  FARMLAND  PROTECTION

 A. 3009--B                         107
 
 PROGRAM,  ADMINISTERED  BY  THE  DEPARTMENT  OF AGRICULTURE AND MARKETS,
 SHALL BE INCLUDED AS FEDERAL GROSS INCOME  FROM  FARMING  FOR  OTHERWISE
 ELIGIBLE FARMERS.
   (3)  QUALIFIED  DONATION.  FOR  PURPOSES  OF THIS SUBSECTION, THE TERM
 "QUALIFIED DONATION" MEANS A DONATION OF ANY FRESH FOOD  ITEM  GROWN  OR
 PRODUCED  BY  AN  ELIGIBLE FARMER TO A FOOD BANK OR OTHER EMERGENCY FOOD
 PROGRAM OPERATING WITHIN THIS STATE.
   (4) APPLICATION OF CREDIT. THE CREDIT ALLOWED  UNDER  THIS  SUBSECTION
 FOR  ANY  TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
 THAN THE MINIMUM TAX FIXED BY THIS ARTICLE.  HOWEVER, IF THE  AMOUNT  OF
 CREDIT  ALLOWED  UNDER  THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE
 TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS  NOT  DEDUCTIBLE  IN  SUCH
 TAXABLE  YEAR WILL 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,  THE PROVISIONS OF
 SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
 NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
   §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a new  clause  (xliii)  to  read  as
 follows:
 (XLIII) FARM DONATIONS TO FOOD       AMOUNT OF CREDIT UNDER
 BANK OR EMERGENCY FOOD PROGRAM       SUBDIVISION FIFTY-TWO
 CREDIT UNDER SUBSECTION (N-2)        OF SECTION TWO HUNDRED
                                      TEN-B
   §  3. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 52 to read as follows:
   52. CREDIT FOR FARM DONATIONS TO FOOD BANK OR EMERGENCY FOOD  PROGRAM.
 (A)  GENERAL. IN THE CASE OF A TAXPAYER WHO IS AN ELIGIBLE FARMER, THERE
 SHALL BE ALLOWED A  CREDIT,  TO  BE  COMPUTED  AS  HEREINAFTER  PROVIDED
 AGAINST  THE  TAX IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON
 AND AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN. THE AMOUNT OF THE CREDIT
 SHALL BE TWENTY-FIVE PERCENT OF THE WHOLESALE  COST  OF  THE  TAXPAYER'S
 QUALIFIED  DONATIONS,  AS  DEFINED IN PARAGRAPH (C) OF THIS SUBDIVISION,
 MADE TO ANY FOOD BANK OR  OTHER  PUBLIC,  CHARITABLE  OR  NOT-FOR-PROFIT
 EMERGENCY  FOOD PROGRAM OPERATING WITHIN THIS STATE, UP TO FIVE THOUSAND
 DOLLARS DURING THE TAXABLE YEAR.
   (B) ELIGIBLE FARMER.  FOR  PURPOSES  OF  THIS  SUBDIVISION,  THE  TERM
 "ELIGIBLE FARMER" MEANS A NEW YORK STATE RESIDENT TAXPAYER WHOSE FEDERAL
 GROSS INCOME FROM FARMING FOR THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF
 EXCESS  FEDERAL  GROSS  INCOME.  EXCESS  FEDERAL  GROSS INCOME MEANS THE
 AMOUNT OF FEDERAL GROSS INCOME FROM ALL SOURCES  FOR  THE  TAXABLE  YEAR
 REDUCED  BY  THE  SUM  (NOT  TO EXCEED THIRTY THOUSAND DOLLARS) OF THOSE
 ITEMS INCLUDED IN FEDERAL GROSS  INCOME  WHICH  CONSIST  OF  (I)  EARNED
 INCOME, (II) PENSION PAYMENTS, INCLUDING SOCIAL SECURITY PAYMENTS, (III)
 INTEREST,  AND  (IV) DIVIDENDS. FOR PURPOSES OF THIS PARAGRAPH, THE TERM
 "EARNED INCOME" SHALL MEAN WAGES,  SALARIES,  TIPS  AND  OTHER  EMPLOYEE
 COMPENSATION,  AND  THOSE  ITEMS OF GROSS INCOME WHICH ARE INCLUDIBLE IN
 THE COMPUTATION OF NET EARNINGS FROM SELF-EMPLOYMENT. FOR  THE  PURPOSES
 OF  THIS  PARAGRAPH,  PAYMENTS  FROM  THE  STATE'S  FARMLAND  PROTECTION
 PROGRAM, ADMINISTERED BY THE  DEPARTMENT  OF  AGRICULTURE  AND  MARKETS,
 SHALL  BE  INCLUDED  AS  FEDERAL GROSS INCOME FROM FARMING FOR OTHERWISE
 ELIGIBLE FARMERS.
   (C) QUALIFIED DONATION. FOR PURPOSES OF  THIS  SUBDIVISION,  THE  TERM
 "QUALIFIED  DONATION"  MEANS  A DONATION OF ANY FRESH FOOD ITEM GROWN OR
 PRODUCED BY AN ELIGIBLE FARMER TO A FOOD BANK OR  OTHER  EMERGENCY  FOOD
 PROGRAM OPERATING WITHIN THIS STATE.

 A. 3009--B                         108

   (D)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS
 THAN  THE  MINIMUM TAX FIXED BY THIS ARTICLE.  HOWEVER, IF THE AMOUNT OF
 CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
 TAX  TO  SUCH  AMOUNT,  ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
 TAXABLE YEAR WILL 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,  THE  PROVISIONS  OF
 SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
 NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
   § 4. The department of agriculture and markets,  in  conjunction  with
 the  department  of  taxation  and  finance, shall establish an accepted
 wholesale price of the taxpayer's qualified donations and promulgate any
 necessary rules and regulations.
   § 5. This act shall take effect on January 1, 2018 and shall apply  to
 taxable years beginning on or after such date.
 
                                 PART EEE
 
   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (hhh) to read as follows:
   (HHH) EDUCATION LOAN INTEREST DEDUCTION CREDIT. (1) A QUALIFIED  RESI-
 DENT  TAXPAYER  SHALL  BE ALLOWED A REFUNDABLE CREDIT, TO BE COMPUTED AS
 PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, AGAINST THE TAX  IMPOSED
 BY THIS ARTICLE, FOR ALLOWABLE INTEREST DEDUCTED ON AN EDUCATION LOAN.
   (2)  A  QUALIFIED RESIDENT TAXPAYER SHALL MEAN A RESIDENT TAXPAYER WHO
 HAS RESIDED IN THIS STATE FOR NOT LESS THAN TEN YEARS.
   (3) THE AMOUNT OF THE CREDIT PROVIDED UNDER THIS SUBSECTION  SHALL  BE
 EQUAL  TO  FIVE  PERCENT  OF  THE  AMOUNT  OF THE DEDUCTION ALLOWED WITH
 RESPECT TO THE INTEREST DEDUCTION ON AN EDUCATION LOAN UNDER SECTION TWO
 HUNDRED TWENTY-ONE OF THE INTERNAL REVENUE CODE.
   (4) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION  EXCEEDS
 A TAXPAYER'S TAX FOR THE TAXABLE 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.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                 PART FFF
 
   Section  1.  The tax law is amended by adding a new section 43 to read
 as follows:
   § 43. 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.

 A. 3009--B                         109
 
   (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.
   (7) "RURAL BUSINESS CONCERN" MEANS AN OPERATING COMPANY THAT,  AT  THE
 TIME OF 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 IS INVOLVED IN THE PRODUCTION, PROCESSING OR MARKET-
 ING OF AGRICULTURAL OR AQUATIC PRODUCTS, OR AGRICULTURAL TECHNOLOGY,  OR
 SUPPLYING  FARMS WITH GOODS AND SERVICES IN SUPPORT OF FARMING.  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

 A. 3009--B                         110
 
 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)  "DEPARTMENT"  MEANS  THE  DEPARTMENT  OF  TAXATION  AND FINANCE;
 PROVIDED, HOWEVER,  THAT  "DEPARTMENT"  SHALL  MEAN  THE  DEPARTMENT  OF
 ECONOMIC  DEVELOPMENT  WITH  REGARD  TO  ANY APPLICATION, CERTIFICATION,
 REPORT, SUBMISSION, FILING OR OTHER ACTION REQUIRED OR GOVERNED BY  THIS
 SECTION.
   (B)  CERTIFICATION. (1) ON AND AFTER AUGUST FIRST, TWO THOUSAND SEVEN-
 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
 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 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.

 A. 3009--B                         111
 
   (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
 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. 3009--B                         112

   (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-AA 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
 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

 A. 3009--B                         113
 
 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
 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

 A. 3009--B                         114
 
 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  FIRST,
 SECOND  AND  THIRD  ANNIVERSARIES  OF THE CLOSING DATE. THE REPORT SHALL
 PROVIDE DOCUMENTATION AS TO THE RURAL GROWTH  INVESTMENTS  MADE  BY  THE
 RURAL  BUSINESS  GROWTH  FUND.    SUCH  DOCUMENTATION  SHALL INCLUDE THE
 FOLLOWING:
   (A) A BANK STATEMENT OF THE RURAL BUSINESS GROWTH FUND DISPLAYING EACH
 RURAL GROWTH INVESTMENT, INCLUDING THE TOTAL  AMOUNT  INVESTED  AND  THE
 AMOUNT OF CREDIT ELIGIBLE CAPITAL CONTRIBUTIONS, AS WELL AS THE VALUE OF
 THE TAX CREDITS PROVIDED FOR THE CREDIT ELIGIBLE CAPITAL CONTRIBUTIONS.
   (B)  THE  NAME,  LOCATION AND INDUSTRIAL SECTOR CLASSIFICATION 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 INVESTMENT 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 FULL TIME EQUIVALENT EMPLOYMENT POSITIONS CREATED OR
 RETAINED  AS  A  RESULT OF THE FUND'S RURAL GROWTH INVESTMENTS AS OF THE
 LAST DAY OF THE PRECEDING CALENDAR YEAR;
   (B) THE AVERAGE ANNUAL SALARY OF THE POSITIONS DESCRIBED  IN  SUBPARA-
 GRAPH (A) OF THIS PARAGRAPH;

 A. 3009--B                         115
 
   (C) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
   (3)  THE  DEPARTMENT  SHALL  ADOPT  RULES  NECESSARY TO IMPLEMENT THIS
 SUBDIVISION. THE COMMISSIONER OF ECONOMIC DEVELOPMENT,  IN  CONSULTATION
 WITH  THE COMMISSIONER SHALL PRODUCE AND POST ON THEIR WEBSITE AN ANNUAL
 REPORT NO LATER THAN NINETY DAYS AFTER THE LAST  DAY  OF  THE  PRECEDING
 CALENDAR  YEAR. THE REPORT SHALL INCLUDE ALL OF THE INFORMATION PROVIDED
 BY EACH RURAL BUSINESS GROWTH FUND IN THEIR REPORTS AS PER SUBPARAGRAPHS
 (A) AND (B) OF PARAGRAPH TWO OF THIS SUBDIVISION AS WELL AS THE INFORMA-
 TION REPORTED BY THE RURAL BUSINESS GROWTH FUND IN ITS THIRD ANNIVERSARY
 REPORT TO THE DEPARTMENT AS  PER  PARAGRAPH  ONE  OF  THIS  SUBDIVISION,
 EXCEPT  FOR  BANK  STATEMENTS.  THE COMMISSIONER OF ECONOMIC DEVELOPMENT
 SHALL INCLUDE ANY OTHER INFORMATION DEEMED NECESSARY  FOR  INCLUSION  IN
 THE REPORT.
   §  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-THREE  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 IN-STATE AFFILIATE OF THE TAXPAYER.
   (2) ON THE CLOSING DATE, THE TAXPAYER SHALL BE ALLOWED A 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
 SUCCEEDING  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-t to read as
 follows:
   § 187-T. 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-THREE 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 IN-STATE AFFILIATE OF THE TAXPAYER.
   2. ON THE CLOSING DATE, THE TAXPAYER SHALL BE ALLOWED A  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-

 A. 3009--B                         116
 
 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
 SUCCEEDING  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 52 to read as follows:
   52. 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-THREE  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 IN-STATE AFFILIATE OF THE TAXPAYER.
   (2)  ON THE CLOSING DATE, THE TAXPAYER SHALL BE ALLOWED A 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
 SUCCEEDING 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-aa to
 read as follows:
   § 99-AA. 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-THREE 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
 YORK AGRICULTURE AND RURAL JOBS CREDIT SET FORTH IN SECTION  FORTY-THREE
 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

 A. 3009--B                         117
 
 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 July 1, 2017.
 
                                 PART GGG
 
   Section  1.  Subdivision  6  of section 221 of the racing, pari-mutuel
 wagering and breeding law, as amended by chapter 325 of the laws of 2004
 and such section as renumbered by chapter 18 of the  laws  of  2008,  is
 amended to read as follows:
   6.  (A) The fund shall secure workers' compensation insurance coverage
 on a blanket basis for the benefit of all  jockeys,  apprentice  jockeys
 and  exercise  persons licensed pursuant to this article or article four
 of this chapter who are employees under  section  two  of  the  workers'
 compensation law, AND MAY ELECT, WITH THE APPROVAL OF THE GAMING COMMIS-
 SION,  TO  SECURE  WORKERS'  COMPENSATION  INSURANCE  FOR  EMPLOYEES  OF
 LICENSED TRAINERS OR OWNERS. IN THE EVENT  THE  FUND  ELECTS,  WITH  THE
 APPROVAL  OF  THE  GAMING  COMMISSION,  TO  SECURE WORKERS' COMPENSATION
 INSURANCE FOR EMPLOYEES OF LICENSED TRAINERS OR  OWNERS,  THE  FUND  MAY
 DISCONTINUE  TO  SECURE WORKERS' COMPENSATION INSURANCE FOR EMPLOYEES OF
 LICENSED TRAINERS OR OWNERS ONLY  UPON  PRIOR  APPROVAL  OF  THE  GAMING
 COMMISSION.
   (B) THE FUND MAY ELECT, WITH THE APPROVAL OF THE GAMING COMMISSION, TO
 SECURE  WORKERS' COMPENSATION INSURANCE COVERAGE THROUGH A FORM OF SELF-
 INSURANCE, PROVIDED THAT THE FUND HAS MET THE REQUIREMENTS  OF  THE  NEW
 YORK  STATE  DEPARTMENT  OF FINANCIAL SERVICES AND WORKERS' COMPENSATION
 BOARD, INCLUDING, WITHOUT LIMITATION, SUBDIVISION THREE OF SECTION FIFTY
 OF THE WORKERS' COMPENSATION LAW.
   § 2. Subdivision 7 of section 221 of the racing, pari-mutuel  wagering
 and  breeding  law, as amended by chapter 18 of the laws of 2008 and the
 opening paragraph as amended by section 1 of part PP of  chapter  60  of
 the laws of 2016, is amended to read as follows:
   7. 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 [sixteen] SEVENTEEN 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

 A. 3009--B                         118
 
 first,  two thousand [seventeen] TWENTY. In the cases of multiple owner-
 ships and limited racing appearances, the fund  shall  equitably  adjust
 the sum required.
   The  [state  racing  and wagering board] GAMING COMMISSION shall, as a
 condition of racing, require any racing corporation or any  quarterhorse
 racing  association  or  corporation  authorized  under  this chapter to
 conduct pari-mutuel betting at a race meeting or races run  thereat,  to
 require  that  each trainer utilizing the facilities of such association
 or corporation and each owner racing a horse shall place or have  placed
 on  deposit with the horsemen's bookkeeper of such racing association or
 corporation, an amount to be established and paid  in  a  manner  to  be
 determined by the fund.
   Should  the fund determine that the amount which has been collected in
 the manner prescribed is inadequate to pay the annual costs required  by
 this  section,  it  shall  notify  the [state racing and wagering board]
 GAMING COMMISSION of the deficiency and the amount of the additional sum
 or sums necessary to be paid by each owner and/or trainer  in  order  to
 cover  such  deficiency.  The  [state  racing and wagering board] GAMING
 COMMISSION shall, as an  additional  condition  of  racing,  direct  any
 racing corporation or any quarterhorse racing association or corporation
 authorized  under  this chapter to conduct pari-mutuel betting at a race
 meeting or races run thereat, to require each trainer and owner to place
 such additional sum or sums on deposit with  the  respective  horsemen's
 bookkeeper.
   All  amounts  collected  by  a  horsemen's bookkeeper pursuant to this
 section shall be transferred to the fund created under this section  and
 shall  be  used  by the fund to purchase workers' compensation insurance
 for jockeys, apprentice jockeys and exercise persons  licensed  pursuant
 to  this article or article four of this chapter who are employees under
 section two of the workers' compensation law, AND AT THE ELECTION OF THE
 FUND, WITH THE APPROVAL OF THE GAMING  COMMISSION,  TO  SECURE  WORKERS'
 COMPENSATION  INSURANCE  FOR EMPLOYEES OF LICENSED TRAINERS OR OWNERS to
 pay for any of its liabilities under section fourteen-a of the  workers'
 compensation law and to administer the workers' compensation program for
 such  jockeys,  apprentice jockeys and exercise persons AND, IF APPROVED
 BY THE GAMING COMMISSION,  EMPLOYEES  OF  LICENSED  TRAINERS  OR  OWNERS
 required by this section and the workers' compensation law.
   IN  THE EVENT THE FUND ELECTS, WITH THE APPROVAL OF THE GAMING COMMIS-
 SION,  TO  SECURE  WORKERS'  COMPENSATION  INSURANCE  FOR  EMPLOYEES  OF
 LICENSED TRAINERS OR OWNERS, THE FUND MAY ELECT TO HAVE THE SUM REQUIRED
 TO BE PAID BY AN OWNER OR TRAINER PURSUANT TO THIS SECTION BE SUBJECT TO
 AN  EXAMINATION  OF  WORKERS' COMPENSATION CLAIMS ATTRIBUTABLE UNDER THE
 FUND TO EACH SUCH OWNER OR TRAINER, INCLUDING THE FREQUENCY AND SEVERITY
 OF ACCIDENTS AND INJURIES.
   § 3. Subdivision 12 of section 221 of the racing, pari-mutuel wagering
 and breeding law, as amended by chapter 325 of the laws of 2004 and such
 section as renumbered by chapter 18 of the laws of 2008, is amended  and
 two new subdivisions 13 and 14 are added to read as follows:
   12.  [The fund and the state racing and wagering board shall have such
 power as is necessary to implement the provisions of this section.]  FOR
 PURPOSES  OF  THIS  SECTION, THE TERM "EMPLOYEES OF LICENSED TRAINERS OR
 OWNERS" SHALL HAVE  THE  SAME  MEANING  AS  SUBDIVISION  TWENTY-FOUR  OF
 SECTION TWO OF THE WORKERS' COMPENSATION LAW.
   13.  A.  THERE IS CREATED A RACING SAFETY COMMITTEE TO REVIEW THE RISK
 MANAGEMENT REPORT SUBMITTED TO THE COMMISSION BY THE FUND  ON  OR  ABOUT
 SEPTEMBER THIRTIETH, TWO THOUSAND SIXTEEN AND TO MAKE NON-BINDING RECOM-

 A. 3009--B                         119
 
 MENDATIONS  FOR  THE  IMPLEMENTATION  OF THE SAFETY PROPOSALS AND INITI-
 ATIVES SET FORTH IN SUCH REPORT. SUCH COMMITTEE SHALL CONSIST  OF  SEVEN
 MEMBERS,  EACH  TO  SERVE  A  TERM  OF THREE YEARS, WITH ONE MEMBER EACH
 APPOINTED BY:
   (I) THE FUND;
   (II) THE GAMING COMMISSION;
   (III) THE FRANCHISED CORPORATION;
   (IV)  THE  RACING ASSOCIATION OR CORPORATION LICENSED PURSUANT TO THIS
 ARTICLE OR ARTICLE FOUR OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING
 LAW TO OPERATE THE RACING AND TRAINING FACILITIES AT FINGER LAKES  RACE-
 TRACK;
   (V)  THE  HORSEMEN'S  ORGANIZATION  REPRESENTING  AT  LEAST  FIFTY-ONE
 PERCENT OF THE OWNERS AND TRAINERS USING THE  FACILITIES  OF  THE  FRAN-
 CHISED CORPORATION;
   (VI)  THE  HORSEMEN'S  ORGANIZATION  REPRESENTING  AT  LEAST FIFTY-ONE
 PERCENT OF THE OWNERS AND TRAINERS USING THE FACILITIES  OF  THE  FINGER
 LAKES RACETRACK; AND
   (VII) THE JOCKEYS' GUILD.
   THE  MEMBER OF THE RACING SAFETY COMMITTEE APPOINTED BY THE FUND SHALL
 SERVE AS CHAIRPERSON AND THE  MEMBER  OF  THE  RACING  SAFETY  COMMITTEE
 APPOINTED  BY THE COMMISSION SHALL SERVE AS VICE-CHAIRPERSON. MEMBERS OF
 THE RACING SAFETY COMMITTEE SHALL HAVE EQUAL VOTING RIGHTS.
   B. THE RACING SAFETY COMMITTEE SHALL MEET WITHIN NINETY DAYS FOLLOWING
 THE EFFECTIVE DATE OF THIS SUBDIVISION TO REVIEW AND DISCUSS THE  IMPLE-
 MENTATION OF THE RECOMMENDATIONS CONTAINED IN THE RISK MANAGEMENT REPORT
 SUBMITTED  TO  THE  GAMING  COMMISSION BY THE FUND ON OR ABOUT SEPTEMBER
 THIRTIETH, TWO THOUSAND SIXTEEN. THE RACING SAFETY COMMITTEE SHALL  MEET
 ON  OR  AFTER  JULY FIRST, TWO THOUSAND SEVENTEEN, AND AT LEAST ANNUALLY
 THEREAFTER, TO REVIEW THE WORKERS' COMPENSATION LOSS INFORMATION AND THE
 STATUS OF SAFETY-RELATED FINDINGS AND RECOMMENDATIONS AND TO DEVELOP  AN
 ANNUAL STRATEGIC PLAN TO ADDRESS IDENTIFIED SAFETY ISSUES.
   C.  THE  MEMBERS  APPOINTED PURSUANT TO SUBPARAGRAPH (III) AND (IV) OF
 PARAGRAPH A OF THIS SUBDIVISION, IN CONSULTATION WITH THE OTHER  MEMBERS
 OF THE RACING SAFETY COMMITTEE, SHALL:
   (I)  WITHIN  ONE  HUNDRED  EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE OF
 THIS SUBDIVISION, FOR EACH TRACK,  DEVELOP  SAFETY  RULES  FOR  TRAINING
 ACTIVITIES  TO BE DOCUMENTED AND COMMUNICATED, IN BOTH ENGLISH AND SPAN-
 ISH, TO JOCKEYS,  APPRENTICE  JOCKEYS,  AND  EXERCISE  PERSONS  LICENSED
 PURSUANT TO THIS ARTICLE OR ARTICLE FOUR OF THIS CHAPTER WHO ARE EMPLOY-
 EES  UNDER  SECTION  TWO  OF  THE  WORKERS' COMPENSATION LAW, AND AT THE
 ELECTION OF THE FUND,  WITH  THE  APPROVAL  OF  THE  GAMING  COMMISSION,
 EMPLOYEES  OF  LICENSED  TRAINERS  OR  OWNERS.  SUCH  SAFETY RULES SHALL
 INCLUDE, BUT NOT BE LIMITED TO,  PROPER  USAGE  OF  PERSONAL  PROTECTIVE
 EQUIPMENT,  REQUIRED RESPONSE TO LOOSE HORSES, PROHIBITION OF CELL PHONE
 USE WHILE MOUNTED ON A HORSE, GENERAL REQUIREMENTS FOR JOGGING,  GALLOP-
 ING,  BREEZING,  PONYING  A  HORSE,  AND STARTING GATE SAFETY PROTOCOLS.
 REFRESHER TRAINING RELATED TO SUCH SAFETY RULES SHALL BE REQUIRED AT THE
 START OF EACH MEET.
   (II) PRIOR TO THE START OF EACH MEET, FOLLOWING THE EFFECTIVE DATE  OF
 THIS SUBDIVISION, MEET WITH TRAINERS OR THEIR REPRESENTATIVES TO DISCUSS
 AND ADDRESS IDENTIFIED SAFETY ISSUES.
   (III)  WITHIN  ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE OF
 THIS SUBDIVISION, FOR EACH TRACK, DEVELOP A WRITTEN, DOCUMENTED EMERGEN-
 CY RESPONSE PLAN TO ADDRESS RESPONSE PROTOCOLS TO ON-TRACK ACCIDENTS AND
 INCIDENTS, WHICH, AT  A  MINIMUM,  SHALL  INCLUDE  DETAILED  INFORMATION
 REGARDING ROLES AND RESPONSIBILITIES FOR INDIVIDUALS WHO ARE RESPONSIBLE

 A. 3009--B                         120
 
 FOR  TRACK-RELATED  ACCIDENTS  AND INCIDENTS, INCLUDING, BUT NOT LIMITED
 TO, OUTRIDERS, EMERGENCY MEDICAL TECHNICIANS/PARAMEDICS, AMBULANCE DRIV-
 ERS, SECURITY, AND VETERINARY STAFF AND CLOCKERS.
   (IV)  WITHIN TWO HUNDRED TEN DAYS FOLLOWING THE EFFECTIVE DATE OF THIS
 SUBDIVISION, COMMUNICATE THE EMERGENCY RESPONSE  PLAN  TO  ALL  ON-TRACK
 PERSONNEL AS PART OF NEW HIRE ORIENTATION AND JOB ASSIGNMENT.
   (V)  WITHIN  TWO HUNDRED TEN DAYS FOLLOWING THE EFFECTIVE DATE OF THIS
 SUBDIVISION, AND AT LEAST ONCE  ANNUALLY  THEREAFTER,  FOR  EACH  TRACK,
 CONDUCT  A MOCK EMERGENCY RESPONSE DRILL FOR ON-TRACK ACCIDENTS PRIOR TO
 THE OPENING OF EACH RACE MEET. SUCH EMERGENCY RESPONSE  DRILL  SHALL  BE
 FILMED  AND  USED  FOR  EDUCATION  AND  TRAINING PURPOSES FOR PERSONNEL,
 INCLUDING IN NEW HIRE ORIENTATION, AND  TO  ASSESS  THE  PERFORMANCE  OF
 INDIVIDUALS INVOLVED IN THE EMERGENCY RESPONSE.
   (VI)  WITHIN  ONE  HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE OF
 THIS SUBDIVISION, UPGRADE THE CURRENT LEVEL OF EMERGENCY MEDICAL RESPON-
 DERS FROM EMERGENCY MEDICAL TECHNICIANS TO PARAMEDICS.
   14. THE FUND AND THE GAMING COMMISSION SHALL HAVE  SUCH  POWER  AS  IS
 NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
   § 4. Section 2 of the workers' compensation law is amended by adding a
 new subdivision 24 to read as follows:
   24.  "EMPLOYEES OF LICENSED TRAINERS OR OWNERS" MEANS ASSISTANT TRAIN-
 ERS, FOREMEN, WATCHMEN AND STABLE EMPLOYEES, INCLUDING GROOMS  AND  HOT-
 WALKERS, EMPLOYED BY A TRAINER OR OWNER LICENSED PURSUANT TO ARTICLE TWO
 OR FOUR OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW.
   §  5.  The second undesignated paragraph of subdivision 3 of section 2
 of the workers' compensation law, as amended by chapter 392 of the  laws
 of 2008, is amended to read as follows:
   Notwithstanding  any  other provision of this chapter and for purposes
 of this chapter only, "employer" shall mean, with respect to  a  jockey,
 apprentice  jockey or exercise person licensed under article two or four
 of the racing,  pari-mutuel  wagering  and  breeding  law,  AND  AT  THE
 ELECTION OF THE NEW YORK JOCKEY INJURY COMPENSATION FUND, INC., WITH THE
 APPROVAL  OF THE NEW YORK STATE GAMING COMMISSION, EMPLOYEES OF LICENSED
 TRAINERS OR OWNERS, performing services  for  an  owner  or  trainer  in
 connection  with  the  training  or racing of a horse at a facility of a
 racing association or corporation subject to article two or four of  the
 racing,  pari-mutuel wagering and breeding law and subject to the juris-
 diction of the New York state [racing and wagering board] GAMING COMMIS-
 SION, The New York Jockey Injury Compensation Fund, Inc. and all  owners
 and  trainers  who are licensed or required to be licensed under article
 two or four of the racing, pari-mutuel wagering and breeding law at  the
 time  of  any occurrence for which benefits are payable pursuant to this
 chapter in respect to the injury or death  of  such  jockey,  apprentice
 jockey  [or],  exercise  person  OR,  IF  APPROVED BY THE NEW YORK STATE
 GAMING COMMISSION, EMPLOYEE OF A LICENSED TRAINER OR OWNER.
   § 6. The fifth undesignated paragraph of subdivision 4 of section 2 of
 the workers' compensation law, as amended by chapter 169 of the laws  of
 2007, is amended to read as follows:
   Notwithstanding  any other provision of this chapter, and for purposes
 of this chapter only, a jockey, apprentice  jockey  or  exercise  person
 licensed  under  article two or four of the racing, pari-mutuel wagering
 and breeding law, AND AT THE ELECTION OF  THE  NEW  YORK  JOCKEY  INJURY
 COMPENSATION  FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE GAMING
 COMMISSION,  EMPLOYEES  OF  LICENSED  TRAINERS  OR  OWNERS,   performing
 services  for  an  owner  or  trainer in connection with the training or
 racing of a horse at a facility of a racing association  or  corporation

 A. 3009--B                         121
 
 subject  to  article two or four of the racing, pari-mutuel wagering and
 breeding law and subject to the  jurisdiction  of  the  New  York  state
 [racing  and  wagering board] GAMING COMMISSION shall be regarded as the
 "employee"  not  solely  of  such owner or trainer, but shall instead be
 conclusively presumed to be the "employee" of The New York Jockey Injury
 Compensation Fund, Inc. and also of all  owners  and  trainers  who  are
 licensed  or  required  to  be licensed under article two or four of the
 racing, pari-mutuel wagering and breeding law at the time of any  occur-
 rence for which benefits are payable pursuant to this chapter in respect
 of  the injury or death of such jockey, apprentice jockey [or], exercise
 person OR, IF APPROVED BY THE NEW YORK STATE GAMING COMMISSION, EMPLOYEE
 OF A LICENSED TRAINER OR OWNER.
   § 7. The third undesignated paragraph of subdivision 5 of section 2 of
 the workers' compensation law, as amended by chapter 392 of the laws  of
 2008, is amended to read as follows:
   Notwithstanding  any other provision of this chapter, and for purposes
 of this chapter only, a jockey, apprentice  jockey  or  exercise  person
 licensed  under  article two or four of the racing, pari-mutuel wagering
 and breeding law, AND AT THE ELECTION OF  THE  NEW  YORK  JOCKEY  INJURY
 COMPENSATION  FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE GAMING
 COMMISSION,  EMPLOYEES  OF  LICENSED  TRAINERS  OR  OWNERS,   performing
 services  for  an  owner  or  trainer in connection with the training or
 racing of a horse at a facility of a racing association  or  corporation
 subject  to  article two or four of the racing, pari-mutuel wagering and
 breeding law and subject to the  jurisdiction  of  the  New  York  state
 [racing  and  wagering  board] GAMING COMMISSION shall be regarded as in
 the "employment" not solely of such owner and trainer, but shall instead
 be conclusively presumed to be in the "employment" of The New York Jock-
 ey Injury Compensation Fund, Inc. and of all owners and trainers who are
 licensed or required to be licensed under article two  or  four  of  the
 racing, pari-mutuel wagering and breeding law, at the time of any occur-
 rence for which benefits are payable pursuant to this chapter in respect
 of  the injury or death of such jockey, apprentice jockey [or], exercise
 person OR, IF APPROVED BY THE NEW YORK STATE GAMING COMMISSION, EMPLOYEE
 OF A LICENSED TRAINER OR OWNER.  For the purpose of this  chapter  only,
 whether  a  livery  driver's  performance  of covered services, as those
 terms are defined in article six-G of  the  executive  law,  constitutes
 "employment"  shall  be determined in accordance with section eighteen-c
 of this chapter.
   § 8. The opening paragraph of section 11 of the workers'  compensation
 law,  as  amended by chapter 169 of the laws of 2007, is amended to read
 as follows:
   The liability of an employer prescribed by the last preceding  section
 shall  be  exclusive  and in place of any other liability whatsoever, to
 such employee, his or her  personal  representatives,  spouse,  parents,
 dependents,  distributees,  or  any person otherwise entitled to recover
 damages, contribution or indemnity,  at  common  law  or  otherwise,  on
 account  of  such injury or death or liability arising therefrom, except
 that if an employer fails to secure the payment of compensation for  his
 or  her  injured  employees  and their dependents as provided in section
 fifty of this chapter, an injured employee, or his or her  legal  repre-
 sentative  in  case of death results from the injury, may, at his or her
 option, elect to claim compensation under this chapter, or  to  maintain
 an  action  in  the courts for damages on account of such injury; and in
 such an action it shall not be necessary to plead or prove freedom  from
 contributory  negligence  nor  may the defendant plead as a defense that

 A. 3009--B                         122
 
 the injury was caused by the negligence of a fellow servant nor that the
 employee assumed the risk of his or her employment, nor that the  injury
 was  due  to  the contributory negligence of the employee. The liability
 under this chapter of The New York Jockey Injury Compensation Fund, Inc.
 created under section two hundred [thirteen-a] TWENTY-ONE of the racing,
 pari-mutuel  wagering and breeding law shall be limited to the provision
 of workers' compensation coverage to jockeys, apprentice jockeys  [and],
 exercise  persons,  AND  AT  THE  ELECTION OF THE NEW YORK JOCKEY INJURY
 COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE  GAMING
 COMMISSION,  EMPLOYEES  OF  LICENSED  TRAINERS  OR OWNERS licensed under
 article two or four of the racing, pari-mutuel wagering and breeding law
 and any statutory penalties resulting from the failure to  provide  such
 coverage.
   §  9.  Subdivision 4 of section 14-a of the workers' compensation law,
 as amended by chapter 169 of the laws of 2007, is  amended  to  read  as
 follows:
   4.  With  respect  to  a  jockey, apprentice jockey or exercise person
 licensed under article two or four of the racing,  pari-mutuel  wagering
 and  breeding  law,  AND  AT  THE ELECTION OF THE NEW YORK JOCKEY INJURY
 COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE  GAMING
 COMMISSION, AN EMPLOYEE OF A LICENSED TRAINER OR OWNER, who, pursuant to
 section  two  of this chapter, is an employee of all owners and trainers
 licensed or required to be licensed under article two  or  four  of  the
 racing,  pari-mutuel  wagering  and breeding law and The New York Jockey
 Injury Compensation Fund, Inc., the owner or trainer for whom such jock-
 ey, apprentice jockey [or], exercise person OR, IF APPROVED BY  THE  NEW
 YORK  STATE  GAMING  COMMISSION, EMPLOYEE OF A LICENSED TRAINER OR OWNER
 was performing services at the time of  the  accident  shall  be  solely
 responsible for the double payments described in subdivision one of this
 section,  to  the extent that such payments exceed any amounts otherwise
 payable with respect to such jockey, apprentice  jockey  [or],  exercise
 person OR, IF APPROVED BY THE NEW YORK STATE GAMING COMMISSION, EMPLOYEE
 OF  A LICENSED TRAINER OR OWNER under any other section of this chapter,
 and the New York Jockey Injury Compensation Fund,  Inc.  shall  have  no
 responsibility for such excess payments, unless there shall be a failure
 of  the  responsible  owner or trainer to pay such award within the time
 provided under this chapter. In the event of such failure to pay and the
 board requires the fund to pay the award on  behalf  of  such  owner  or
 trainer who has been found to have violated this section, the fund shall
 be  entitled to an award against such owner or trainer for the amount so
 paid which shall be collected in the same manner as an award of  compen-
 sation.
   §  10.  Section  18-a  of the workers' compensation law, as amended by
 chapter 169 of the laws of 2007, is amended to read as follows:
   § 18-a. Notice: The New York Jockey  Injury  Compensation  Fund,  Inc.
 Wherever in this chapter it shall be required that notice be given to an
 employer, except for claims involving section fourteen-a of the workers'
 compensation  law  such  notice requirement shall be deemed satisfied by
 giving notice to the New York Jockey Injury Compensation Fund, Inc.,  in
 connection  with  an  injury  to a jockey, apprentice jockey or exercise
 person licensed under article two or four  of  the  racing,  pari-mutuel
 wagering  and  breeding  law, AND AT THE ELECTION OF THE NEW YORK JOCKEY
 INJURY COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK  STATE
 GAMING  COMMISSION,  AN  EMPLOYEE  OF  A LICENSED TRAINER OR OWNER, who,
 pursuant to section two of this chapter, is an employee  of  all  owners
 and  trainers  licensed  or required to be licensed under article two or

 A. 3009--B                         123
 
 four of the racing, pari-mutuel wagering and breeding  law  and  of  the
 fund.  In  a  claim involving section fourteen-a of the workers' compen-
 sation law such required notice shall be given to  the  employing  owner
 and/or trainer of the fund.
   § 11. Subdivision 8 of section 50 of the workers' compensation law, as
 amended  by  chapter  169  of  the  laws  of 2007, is amended to read as
 follows:
   8. The requirements of section  ten  of  this  chapter  regarding  the
 provision  of  workers' compensation insurance as to owners and trainers
 governed by the racing, pari-mutuel wagering and breeding  law  who  are
 employers  under  section  two  of this chapter are satisfied in full by
 compliance with the requirements imposed upon  owners  and  trainers  by
 section  two  hundred [thirteen-a] TWENTY-ONE of the racing, pari-mutuel
 wagering and breeding law, provided that in  the  event  double  compen-
 sation, death benefits, or awards are payable with respect to an injured
 employee  under section fourteen-a of this chapter, the owner or trainer
 for whom the  injured  jockey,  apprentice  jockey  or  exercise  person
 licensed  under  article two or four of the racing, pari-mutuel wagering
 and breeding law, AND AT THE ELECTION OF  THE  NEW  YORK  JOCKEY  INJURY
 COMPENSATION  FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE GAMING
 COMMISSION, EMPLOYEE OF A  LICENSED  TRAINER  OR  OWNER,  is  performing
 services  as  a jockey, apprentice jockey or exercise person so licensed
 at the time of the accident OR, IF APPROVED BY THE NEW YORK STATE GAMING
 COMMISSION, AN EMPLOYEE OF A LICENSED TRAINER OR OWNER  shall  bear  the
 sole  responsibility  for  the  amount  payable pursuant to such section
 fourteen-a in excess of the amount otherwise payable under this chapter,
 unless there shall be a failure of the responsible owner or  trainer  to
 pay such award within the time provided under this chapter. In the event
 of  such failure to pay and the board requires the fund to pay the award
 on behalf of such owner or trainer who has been found to  have  violated
 section  fourteen-a  OF  THIS  CHAPTER, the fund shall be entitled to an
 award against such owner or trainer for the amount so paid  which  shall
 be  collected  in  the same manner as an award of compensation. Coverage
 directly procured by any owner or trainer for the purpose of  satisfying
 the  requirements of this chapter with respect to employees of the owner
 or trainer shall not include coverage on any jockey,  apprentice  jockey
 or  exercise  person  licensed  under article two or four of the racing,
 pari-mutuel wagering and breeding law, AND AT THE ELECTION  OF  THE  NEW
 YORK JOCKEY INJURY COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW
 YORK  STATE  GAMING  COMMISSION,  ANY  EMPLOYEE OF A LICENSED TRAINER OR
 OWNER, to the extent that such jockey, apprentice jockey [or],  exercise
 person OR, IF APPROVED BY THE NEW YORK STATE GAMING COMMISSION, EMPLOYEE
 OF  A  LICENSED TRAINER OR OWNER is also covered under coverage procured
 by The New York Jockey Injury Compensation Fund, Inc.  pursuant  to  the
 requirements  of  section  two  hundred  [thirteen-a]  TWENTY-ONE of the
 racing, pari-mutuel wagering and  breeding  law,  and  to  that  extent,
 coverage  procured  by  the  fund  pursuant  to  the requirements of the
 racing, pari-mutuel wagering and breeding law shall be considered prima-
 ry.
   § 12. This act shall take effect immediately.
 
                                 PART HHH
 
   Section 1. Paragraph 4 of subdivision a and subdivision c  of  section
 1617-a  of the tax law, paragraph 4 of subdivision a as added and subdi-

 A. 3009--B                         124
 
 vision c as amended by section 1 of part SS of chapter 60 of the laws of
 2016, are amended to read as follows:
   (4) Aqueduct racetrack, within the lottery terminal facility, pursuant
 to  an agreement between the corporation established pursuant to section
 five hundred two of the racing, pari-mutuel wagering and breeding law in
 the Nassau region and the operator of video lottery gaming  at  Aqueduct
 racetrack,  when such agreement is approved by the gaming commission and
 as long as such agreement is in place, and when such agreement is accom-
 panied by a detailed  spending  plan  for  the  corporation  established
 pursuant to section five hundred two of the racing, pari-mutuel wagering
 and  breeding  law  in  the Nassau region, which includes a plan for the
 timely  payment  of  liabilities  due  to  the  franchised  corporation,
 PROVIDED  THAT  AN  ADDENDUM  TO  SUCH  DETAILED  SPENDING PLAN SHALL BE
 SUBMITTED TO THE COMMISSION ON OR BEFORE JUNE FIRST, TWO THOUSAND SEVEN-
 TEEN THAT TAKES INTO CONSIDERATION THE FAIR AND  EQUITABLE  DISTRIBUTION
 OF FUNDS BY THE CORPORATION ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED
 TWO  OF  THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW IN THE NASSAU
 REGION TO THE  PARTICIPATING  COUNTIES,  and  when  such  video  lottery
 devices  are  hosted by the operator of video lottery gaming at Aqueduct
 racetrack on behalf of the corporation established pursuant  to  section
 five hundred two of the racing, pari-mutuel wagering and breeding law in
 the  Nassau  region  in  lieu of the development of a facility in Nassau
 county as authorized by paragraph three of THIS subdivision [a  of  this
 section]. Such agreement reached by the parties shall identify the agen-
 cy  principally  responsible  for  funding, approving or undertaking any
 actions of such agreement. Provided, however, nothing in this  paragraph
 shall  infringe  upon the rights of the corporation established pursuant
 to section five hundred two of  the  racing,  pari-mutuel  wagering  and
 breeding  law  in  the  Nassau  region to develop a facility pursuant to
 paragraph three of this subdivision upon the expiration, termination, or
 withdrawal of such agreement.
   c. The terminals authorized pursuant to paragraph four of  subdivision
 a of this section shall:
   (i)  be  deemed as operated by the corporation established pursuant to
 section five hundred two of the racing, pari-mutuel wagering and  breed-
 ing law in the Nassau region for the purposes of section sixteen hundred
 twelve  of  this  chapter and the distributions therefrom made as if the
 video lottery devices were located in Nassau county;
   (ii) consist exclusively of electronic table games,  unless  otherwise
 approved  by  the  gaming commission and the director of the division of
 the budget; [and]
   (iii) be individually designated as hosted[.]; AND
   (IV) AFTER APRIL FIRST, TWO THOUSAND SEVENTEEN, BE IN ADDITION TO  THE
 NUMBER  OF TERMINALS IN OPERATION AT THE AQUEDUCT VIDEO LOTTERY TERMINAL
 FACILITY ON THE FIRST OF OCTOBER, TWO THOUSAND SIXTEEN.
   § 2. Section 1617-a of the tax law is amended by adding a new subdivi-
 sion d-1 to read as follows:
   D-1. THE OPERATOR OF VIDEO LOTTERY GAMING AT AQUEDUCT RACETRACK  SHALL
 BE REQUIRED TO MAINTAIN, AT MINIMUM:
   (I)  THE  AMOUNTS  FOR  AID  TO EDUCATION FROM VIDEO LOTTERY GAMING AT
 AQUEDUCT RACETRACK AT THE DOLLAR LEVEL REALIZED IN TWO THOUSAND FIFTEEN,
 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;
   (II) AN AMOUNT TO HORSEMEN FOR PURSES AT AQUEDUCT RACETRACK THAT  WILL
 ASSURE THE PURSE SUPPORT FROM VIDEO LOTTERY GAMING AT AQUEDUCT RACETRACK

 A. 3009--B                         125
 
 TO  BE  MAINTAINED  AT  THE  SAME  DOLLAR LEVEL REALIZED IN TWO THOUSAND
 FIFTEEN TO BE ADJUSTED BY THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUM-
 ERS, AS PUBLISHED ANNUALLY BY THE  UNITED  STATES  DEPARTMENT  OF  LABOR
 BUREAU OF LABOR STATISTICS; AND
   (III) AN AMOUNT TO THE NEW YORK STATE THOROUGHBRED BREEDING AND DEVEL-
 OPMENT  FUND  TO MAINTAIN PAYMENTS FROM VIDEO LOTTERY GAMING AT AQUEDUCT
 RACETRACK TO SUCH FUND TO BE MAINTAINED AT THE SAME DOLLAR  LEVEL  REAL-
 IZED  IN TWO THOUSAND FIFTEEN 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.
   §  3.  Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
 of section 1612 of the tax law, as separately amended by  section  1  of
 part  GG  and section 2 of part SS of chapter 60 of the laws of 2016, 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 state racing and wagering board,
 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 nine-
 teen 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 convention and exhibition space
 requiring a minimum capital investment of three hundred million dollars.
 Except for tracks having less than one thousand one hundred video gaming
 machines, and except for a vendor track located west of State  Route  14
 from  Sodus Point to the Pennsylvania border within New York, and except
 for Aqueduct racetrack each track operator shall be required  to  co-in-
 vest  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 peri-
 od may be carried over into subsequent years ending before April  first,
 two thousand seventeen. Any amount attributable to a capital expenditure
 approved  prior  to  April  first,  two thousand seventeen and completed

 A. 3009--B                         126
 
 before April first, two thousand nineteen; or approved  prior  to  April
 first,  two  thousand  twenty-one  and completed before April first, two
 thousand twenty-three for a vendor track located west of State Route  14
 from  Sodus  Point  to the Pennsylvania border within 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 division prior to
 April first, two thousand seventeen and completed prior to April  first,
 two  thousand  nineteen,  exceed  the  vendor track's cumulative capital
 award during the five year  period  ending  April  first,  two  thousand
 seventeen,  the vendor shall continue to receive the capital award after
 April first, two thousand seventeen until such approved capital expendi-
 tures are paid to the vendor track subject to  any  required  co-invest-
 ment.  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  capital  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 depreciation of the capital improvement in accordance with general-
 ly  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 thousand seventeen shall be deposited into the state  lottery
 fund for education aid; and
   §  4.  Subparagraph  (iii)  of paragraph 1 of subdivision b of section
 1612 of the tax law, as separately amended by chapters 174  and  175  of
 the laws of 2013, is amended to read as follows:
   (iii) less an additional vendor's marketing allowance at a rate of ten
 percent  for  the  first  one hundred million dollars annually and eight
 percent thereafter of the total revenue  wagered  at  the  vendor  track
 after payout for prizes to be used by the vendor track for the marketing
 and  promotion  and  associated  costs of its video lottery gaming oper-
 ations and pari-mutuel horse racing operations,  as  long  as  any  such
 costs associated with pari-mutuel horse racing operations simultaneously
 encourage  increased  attendance  at  such vendor's video lottery gaming
 facilities, consistent with the customary manner of marketing comparable
 operations in the industry and subject to the overall supervision of the
 division; provided, however, that:
   (A) the additional vendor's marketing allowance shall not exceed eight
 percent in any year for any operator of a racetrack located in the coun-
 ty of Westchester or Queens; [provided, however,  a  vendor  track  that
 receives  a  vendor  fee  pursuant to clause (G) of subparagraph (ii) of
 this paragraph shall  not  receive  the  additional  vendor's  marketing
 allowance; provided, however, except for]
   (B)  a vendor track located west of State Route 14 from Sodus Point to
 the Pennsylvania border within New York  shall  continue  to  receive  a
 marketing  allowance  of  ten  percent  on  total revenue wagered at the
 vendor track after payout for prizes in excess of  one  hundred  million
 dollars annually [provided, however,];
   (C)  a  vendor  that receives a vendor fee pursuant to clause (G-1) of
 subparagraph (ii) of this paragraph shall receive an additional  market-
 ing  allowance  at a rate of ten percent of the total revenue wagered at
 the video lottery gaming facility after payout for prizes[.   In  estab-
 lishing  the  vendor fee,]; PROVIDED, HOWEVER, THAT ANY SUCH VENDOR THAT
 HAS ENTERED INTO AN AGREEMENT WITH THE OPERATOR OF VIDEO LOTTERY  GAMING
 AT AQUEDUCT RACETRACK IN LIEU OF THE DEVELOPMENT OF A FACILITY IN NASSAU
 COUNTY  SHALL  RECEIVE  AN  ADDITIONAL  MARKETING ALLOWANCE AT A RATE OF

 A. 3009--B                         127
 
 EIGHT PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO  LOTTERY  GAMING
 FACILITY AFTER PAYOUT FOR PRIZES.
   §  5. Nothing in this act shall be construed to result in any material
 increase in the effective gaming tax rate or in the  statutory  payments
 applicable  to  the  Aqueduct  video lottery terminal facility under New
 York state law which may lead to the expiration, termination,  or  with-
 drawal  of  the  hosting  agreement  between the corporation established
 pursuant to section 502 of the racing, pari-mutuel wagering and breeding
 law in the Nassau region and the operator of  video  lottery  gaming  at
 Aqueduct  racetrack  entered  into  on August 26, 2016 and as authorized
 pursuant to paragraph (4) of subdivision a of section 1617-a of the  tax
 law.
   §  6.  This act shall take effect immediately; provided, however, that
 sections two and four of this act shall be deemed to have been  in  full
 force  and  effect  on and after October 1, 2016; and provided, further,
 that section two of this act shall expire and be  deemed  repealed  upon
 the designation of one thousand video lottery devices as hosted pursuant
 to  paragraph  (4) of subdivision a of section 1617-a of the tax law, as
 amended by section one of this act; provided that the gaming  commission
 shall  notify  the  legislative bill drafting commission upon the desig-
 nation of one thousand video lottery devices as hosted pursuant to para-
 graph (4) of subdivision a of section 1617-a of the tax law, as  amended
 by  section one of 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.
   § 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 HHH of this  act  shall
 be as specifically set forth in the last section of such Parts.